Full Text of SB1041 99th General Assembly
SB1041sam001 99TH GENERAL ASSEMBLY | Sen. Pamela J. Althoff Filed: 4/15/2016
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| 1 | | AMENDMENT TO SENATE BILL 1041
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1041 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Use Tax Act is amended by changing Sections | 5 | | 2, 3-45, 6, 8, and 9 and by adding Section 3-67 as follows:
| 6 | | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| 7 | | Sec. 2. Definitions. | 8 | | "Use" means the exercise by any person of any right or | 9 | | power over
tangible personal property incident to the ownership | 10 | | of that property,
except that it does not include the sale of | 11 | | such property in any form as
tangible personal property in the | 12 | | regular course of business to the extent
that such property is | 13 | | not first subjected to a use for which it was
purchased, and | 14 | | does not include the use of such property by its owner for
| 15 | | demonstration purposes: Provided that the property purchased | 16 | | is deemed to
be purchased for the purpose of resale, despite |
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| 1 | | first being used, to the
extent to which it is resold as an | 2 | | ingredient of an intentionally produced
product or by-product | 3 | | of manufacturing. "Use" does not mean the demonstration
use or | 4 | | interim use of tangible personal property by a retailer before | 5 | | he sells
that tangible personal property. For watercraft or | 6 | | aircraft, if the period of
demonstration use or interim use by | 7 | | the retailer exceeds 18 months,
the retailer
shall pay on the | 8 | | retailers' original cost price the tax imposed by this Act,
and | 9 | | no credit for that tax is permitted if the watercraft or | 10 | | aircraft is
subsequently sold by the retailer. "Use" does not | 11 | | mean the physical
incorporation of tangible personal property, | 12 | | to the extent not first subjected
to a use for which it was | 13 | | purchased, as an ingredient or constituent, into
other tangible | 14 | | personal property (a) which is sold in the regular course of
| 15 | | business or (b) which the person incorporating such ingredient | 16 | | or constituent
therein has undertaken at the time of such | 17 | | purchase to cause to be transported
in interstate commerce to | 18 | | destinations outside the State of Illinois: Provided
that the | 19 | | property purchased is deemed to be purchased for the purpose of
| 20 | | resale, despite first being used, to the extent to which it is | 21 | | resold as an
ingredient of an intentionally produced product or | 22 | | by-product of manufacturing.
| 23 | | "Watercraft" means a Class 2, Class 3, or Class 4 | 24 | | watercraft as defined in
Section 3-2 of the Boat Registration | 25 | | and Safety Act, a personal watercraft, or
any boat equipped | 26 | | with an inboard motor.
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| 1 | | "Purchase at retail" means the acquisition of the ownership | 2 | | of or title
to tangible personal property through a sale at | 3 | | retail.
| 4 | | "Purchaser" means anyone who, through a sale at retail, | 5 | | acquires the
ownership of tangible personal property for a | 6 | | valuable consideration.
| 7 | | "Sale at retail" means any transfer of the ownership of or | 8 | | title to
tangible personal property to a purchaser, for the | 9 | | purpose of use, and not
for the purpose of resale in any form | 10 | | as tangible personal property to the
extent not first subjected | 11 | | to a use for which it was purchased, for a
valuable | 12 | | consideration: Provided that the property purchased is deemed | 13 | | to
be purchased for the purpose of resale, despite first being | 14 | | used, to the
extent to which it is resold as an ingredient of | 15 | | an intentionally produced
product or by-product of | 16 | | manufacturing. For this purpose, slag produced as
an incident | 17 | | to manufacturing pig iron or steel and sold is considered to be
| 18 | | an intentionally produced by-product of manufacturing. "Sale | 19 | | at retail"
includes any such transfer made for resale unless | 20 | | made in compliance with
Section 2c of the Retailers' Occupation | 21 | | Tax Act, as incorporated by
reference into Section 12 of this | 22 | | Act. Transactions whereby the possession
of the property is | 23 | | transferred but the seller retains the title as security
for | 24 | | payment of the selling price are sales.
| 25 | | "Sale at retail" shall also be construed to include any | 26 | | Illinois
florist's sales transaction in which the purchase |
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| 1 | | order is received in
Illinois by a florist and the sale is for | 2 | | use or consumption, but the
Illinois florist has a florist in | 3 | | another state deliver the property to the
purchaser or the | 4 | | purchaser's donee in such other state.
| 5 | | Nonreusable tangible personal property that is used by | 6 | | persons engaged in
the business of operating a restaurant, | 7 | | cafeteria, or drive-in is a sale for
resale when it is | 8 | | transferred to customers in the ordinary course of business
as | 9 | | part of the sale of food or beverages and is used to deliver, | 10 | | package, or
consume food or beverages, regardless of where | 11 | | consumption of the food or
beverages occurs. Examples of those | 12 | | items include, but are not limited to
nonreusable, paper and | 13 | | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | 14 | | containers, utensils, straws, placemats, napkins, doggie bags, | 15 | | and
wrapping or packaging
materials that are transferred to | 16 | | customers as part of the sale of food or
beverages in the | 17 | | ordinary course of business.
| 18 | | The purchase, employment and transfer of such tangible | 19 | | personal property
as newsprint and ink for the primary purpose | 20 | | of conveying news (with or
without other information) is not a | 21 | | purchase, use or sale of tangible
personal property.
| 22 | | "Selling price" means the consideration for a sale valued | 23 | | in money
whether received in money or otherwise, including | 24 | | cash, credits, property
other than as hereinafter provided, and | 25 | | services, but not including the
value of or credit given for | 26 | | traded-in tangible personal property where the
item that is |
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| 1 | | traded-in is of like kind and character as that which is being
| 2 | | sold, and shall be determined without any deduction on account | 3 | | of the cost
of the property sold, the cost of materials used, | 4 | | labor or service cost or
any other expense whatsoever, but does | 5 | | not include interest or finance
charges which appear as | 6 | | separate items on the bill of sale or sales
contract nor | 7 | | charges that are added to prices by sellers on account of the
| 8 | | seller's tax liability under the "Retailers' Occupation Tax | 9 | | Act", or on
account of the seller's duty to collect, from the | 10 | | purchaser, the tax that
is imposed by this Act, or, except as | 11 | | otherwise provided with respect to any cigarette tax imposed by | 12 | | a home rule unit, on account of the seller's tax liability | 13 | | under any local occupation tax administered by the Department, | 14 | | or, except as otherwise provided with respect to any cigarette | 15 | | tax imposed by a home rule unit on account of the seller's duty | 16 | | to collect, from the purchasers, the tax that is imposed under | 17 | | any local use tax administered by the Department. Effective | 18 | | December 1, 1985, "selling price"
shall include charges that | 19 | | are added to prices by sellers on account of the
seller's tax | 20 | | liability under the Cigarette Tax Act, on account of the | 21 | | seller's
duty to collect, from the purchaser, the tax imposed | 22 | | under the Cigarette Use
Tax Act, and on account of the seller's | 23 | | duty to collect, from the purchaser,
any cigarette tax imposed | 24 | | by a home rule unit.
| 25 | | Notwithstanding any law to the contrary, for any motor | 26 | | vehicle, as defined in Section 1-146 of the Vehicle Code, that |
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| 1 | | is sold on or after January 1, 2015 for the purpose of leasing | 2 | | the vehicle for a defined period that is longer than one year | 3 | | and (1) is a motor vehicle of the second division that: (A) is | 4 | | a self-contained motor vehicle designed or permanently | 5 | | converted to provide living quarters for recreational, | 6 | | camping, or travel use, with direct walk through access to the | 7 | | living quarters from the driver's seat; (B) is of the van | 8 | | configuration designed for the transportation of not less than | 9 | | 7 nor more than 16 passengers; or (C) has a gross vehicle | 10 | | weight rating of 8,000 pounds or less or (2) is a motor vehicle | 11 | | of the first division, "selling price" or "amount of sale" | 12 | | means the consideration received by the lessor pursuant to the | 13 | | lease contract, including amounts due at lease signing and all | 14 | | monthly or other regular payments charged over the term of the | 15 | | lease. Also included in the selling price is any amount | 16 | | received by the lessor from the lessee for the leased vehicle | 17 | | that is not calculated at the time the lease is executed, | 18 | | including, but not limited to, excess mileage charges and | 19 | | charges for excess wear and tear. For sales that occur in | 20 | | Illinois, with respect to any amount received by the lessor | 21 | | from the lessee for the leased vehicle that is not calculated | 22 | | at the time the lease is executed, the lessor who purchased the | 23 | | motor vehicle does not incur the tax imposed by the Use Tax Act | 24 | | on those amounts, and the retailer who makes the retail sale of | 25 | | the motor vehicle to the lessor is not required to collect the | 26 | | tax imposed by this Act or to pay the tax imposed by the |
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| 1 | | Retailers' Occupation Tax Act on those amounts. However, the | 2 | | lessor who purchased the motor vehicle assumes the liability | 3 | | for reporting and paying the tax on those amounts directly to | 4 | | the Department in the same form (Illinois Retailers' Occupation | 5 | | Tax, and local retailers' occupation taxes, if applicable) in | 6 | | which the retailer would have reported and paid such tax if the | 7 | | retailer had accounted for the tax to the Department. For | 8 | | amounts received by the lessor from the lessee that are not | 9 | | calculated at the time the lease is executed, the lessor must | 10 | | file the return and pay the tax to the Department by the due | 11 | | date otherwise required by this Act for returns other than | 12 | | transaction returns. If the retailer is entitled under this Act | 13 | | to a discount for collecting and remitting the tax imposed | 14 | | under this Act to the Department with respect to the sale of | 15 | | the motor vehicle to the lessor, then the right to the discount | 16 | | provided in this Act shall be transferred to the lessor with | 17 | | respect to the tax paid by the lessor for any amount received | 18 | | by the lessor from the lessee for the leased vehicle that is | 19 | | not calculated at the time the lease is executed; provided that | 20 | | the discount is only allowed if the return is timely filed and | 21 | | for amounts timely paid. The "selling price" of a motor vehicle | 22 | | that is sold on or after January 1, 2015 for the purpose of | 23 | | leasing for a defined period of longer than one year shall not | 24 | | be reduced by the value of or credit given for traded-in | 25 | | tangible personal property owned by the lessor, nor shall it be | 26 | | reduced by the value of or credit given for traded-in tangible |
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| 1 | | personal property owned by the lessee, regardless of whether | 2 | | the trade-in value thereof is assigned by the lessee to the | 3 | | lessor. In the case of a motor vehicle that is sold for the | 4 | | purpose of leasing for a defined period of longer than one | 5 | | year, the sale occurs at the time of the delivery of the | 6 | | vehicle, regardless of the due date of any lease payments. A | 7 | | lessor who incurs a Retailers' Occupation Tax liability on the | 8 | | sale of a motor vehicle coming off lease may not take a credit | 9 | | against that liability for the Use Tax the lessor paid upon the | 10 | | purchase of the motor vehicle (or for any tax the lessor paid | 11 | | with respect to any amount received by the lessor from the | 12 | | lessee for the leased vehicle that was not calculated at the | 13 | | time the lease was executed) if the selling price of the motor | 14 | | vehicle at the time of purchase was calculated using the | 15 | | definition of "selling price" as defined in this paragraph. | 16 | | Notwithstanding any other provision of this Act to the | 17 | | contrary, lessors shall file all returns and make all payments | 18 | | required under this paragraph to the Department by electronic | 19 | | means in the manner and form as required by the Department. | 20 | | This paragraph does not apply to leases of motor vehicles for | 21 | | which, at the time the lease is entered into, the term of the | 22 | | lease is not a defined period, including leases with a defined | 23 | | initial period with the option to continue the lease on a | 24 | | month-to-month or other basis beyond the initial defined | 25 | | period. | 26 | | The phrase "like kind and character" shall be liberally |
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| 1 | | construed
(including but not limited to any form of motor | 2 | | vehicle for any form of
motor vehicle, or any kind of farm or | 3 | | agricultural implement for any other
kind of farm or | 4 | | agricultural implement), while not including a kind of item
| 5 | | which, if sold at retail by that retailer, would be exempt from | 6 | | retailers'
occupation tax and use tax as an isolated or | 7 | | occasional sale.
| 8 | | "Department" means the Department of Revenue.
| 9 | | "Person" means any natural individual, firm, partnership, | 10 | | association,
joint stock company, joint adventure, public or | 11 | | private corporation, limited
liability company, or a
receiver, | 12 | | executor, trustee, guardian or other representative appointed
| 13 | | by order of any court.
| 14 | | "Retailer" means and includes every person engaged in the | 15 | | business of
making sales at retail as defined in this Section.
| 16 | | A person who holds himself or herself out as being engaged | 17 | | (or who habitually
engages) in selling tangible personal | 18 | | property at retail is a retailer
hereunder with respect to such | 19 | | sales (and not primarily in a service
occupation) | 20 | | notwithstanding the fact that such person designs and produces
| 21 | | such tangible personal property on special order for the | 22 | | purchaser and in
such a way as to render the property of value | 23 | | only to such purchaser, if
such tangible personal property so | 24 | | produced on special order serves
substantially the same | 25 | | function as stock or standard items of tangible
personal | 26 | | property that are sold at retail.
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| 1 | | A person whose activities are organized and conducted | 2 | | primarily as a
not-for-profit service enterprise, and who | 3 | | engages in selling tangible
personal property at retail | 4 | | (whether to the public or merely to members and
their guests) | 5 | | is a retailer with respect to such transactions, excepting
only | 6 | | a person organized and operated exclusively for charitable, | 7 | | religious
or educational purposes either (1), to the extent of | 8 | | sales by such person
to its members, students, patients or | 9 | | inmates of tangible personal property
to be used primarily for | 10 | | the purposes of such person, or (2), to the extent
of sales by | 11 | | such person of tangible personal property which is not sold or
| 12 | | offered for sale by persons organized for profit. The selling | 13 | | of school
books and school supplies by schools at retail to | 14 | | students is not
"primarily for the purposes of" the school | 15 | | which does such selling. This
paragraph does not apply to nor | 16 | | subject to taxation occasional dinners,
social or similar | 17 | | activities of a person organized and operated exclusively
for | 18 | | charitable, religious or educational purposes, whether or not | 19 | | such
activities are open to the public.
| 20 | | A person who is the recipient of a grant or contract under | 21 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 22 | | serves meals to
participants in the federal Nutrition Program | 23 | | for the Elderly in return for
contributions established in | 24 | | amount by the individual participant pursuant
to a schedule of | 25 | | suggested fees as provided for in the federal Act is not a
| 26 | | retailer under this Act with respect to such transactions.
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| 1 | | Persons who engage in the business of transferring tangible | 2 | | personal
property upon the redemption of trading stamps are | 3 | | retailers hereunder when
engaged in such business.
| 4 | | The isolated or occasional sale of tangible personal | 5 | | property at retail
by a person who does not hold himself out as | 6 | | being engaged (or who does not
habitually engage) in selling | 7 | | such tangible personal property at retail or
a sale through a | 8 | | bulk vending machine does not make such person a retailer
| 9 | | hereunder. However, any person who is engaged in a business | 10 | | which is not
subject to the tax imposed by the "Retailers' | 11 | | Occupation Tax Act" because
of involving the sale of or a | 12 | | contract to sell real estate or a
construction contract to | 13 | | improve real estate, but who, in the course of
conducting such | 14 | | business, transfers tangible personal property to users or
| 15 | | consumers in the finished form in which it was purchased, and | 16 | | which does
not become real estate, under any provision of a | 17 | | construction contract or
real estate sale or real estate sales | 18 | | agreement entered into with some
other person arising out of or | 19 | | because of such nontaxable business, is a
retailer to the | 20 | | extent of the value of the tangible personal property so
| 21 | | transferred. If, in such transaction, a separate charge is made | 22 | | for the
tangible personal property so transferred, the value of | 23 | | such property, for
the purposes of this Act, is the amount so | 24 | | separately charged, but not less
than the cost of such property | 25 | | to the transferor; if no separate charge is
made, the value of | 26 | | such property, for the purposes of this Act, is the cost
to the |
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| 1 | | transferor of such tangible personal property.
| 2 | | "Retailer maintaining a place of business in this State", | 3 | | or any like
term, means a retailer who engages in the following | 4 | | acts or methods of transacting business in this State on a | 5 | | regular or systematic basis: | 6 | | (1) maintaining within this State, directly, | 7 | | indirectly, or by an affiliate, an office, distribution | 8 | | facility, sales room, warehouse, storage place, or other | 9 | | similar place of business, including the employment of a | 10 | | resident of this State who works from a home office in this | 11 | | State on a regular or systematic basis; | 12 | | (2) engaging in, either directly or indirectly through | 13 | | a marketplace provider, referrer, or other third party, | 14 | | direct response marketing targeted at consumers in this | 15 | | State; for the purposes of this item (2), "direct response | 16 | | marketing" includes, but is not limited to: | 17 | | (A) sending, transmitting, or broadcasting of | 18 | | flyers, newsletters, telephone calls, targeted | 19 | | electronic mail, text messages, social media messages, | 20 | | targeted mailings; | 21 | | (B) collecting analyzing, and utilizing individual | 22 | | data on purchasers or potential purchasers in this | 23 | | State; | 24 | | (C) using information or software, including | 25 | | cached files, cached software, "cookies", or other | 26 | | data tracking tools, that are stored on property |
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| 1 | | located in or distributed within this State; or | 2 | | (D) conducting any other actions that use persons, | 3 | | tangible property, intangible property, digital files, | 4 | | or information, or software in this State in an effort | 5 | | to enhance the probability that a person's contacts | 6 | | with a customer in this State will result in a sale to | 7 | | that customer; | 8 | | (3) entering into one or more agreements under which a | 9 | | person or persons who have nexus with this State under the | 10 | | Commerce Clause of the United States Constitution directly | 11 | | or indirectly refer potential purchasers of products to the | 12 | | seller for a commission or other consideration, whether by | 13 | | an Internet-based link, an Internet website, or otherwise; | 14 | | the activities described in this paragraph (3) constitute | 15 | | "maintaining a place of business in this State" regardless | 16 | | of whether or not the referral is related to the sale of | 17 | | tangible personal property; an agreement under which a | 18 | | seller purchases advertisements from a person or persons in | 19 | | this State to be delivered on television, radio, in print, | 20 | | on the Internet, or by any other medium, is not an | 21 | | agreement described in this paragraph unless the | 22 | | advertising revenue paid to the person or persons in this | 23 | | State consists of commissions or other consideration that | 24 | | is based in whole or in part upon sales of products; this | 25 | | paragraph does not apply to an agreement if the seller can | 26 | | demonstrate that no person in this State with whom the |
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| 1 | | seller has an agreement engaged in referral activity in | 2 | | this State on behalf of the seller that would satisfy the | 3 | | requirements of the Commerce Clause of the United States | 4 | | Constitution, provided that the seller must: | 5 | | (A) be able to demonstrate that each in-State | 6 | | person with whom the seller has an agreement is | 7 | | prohibited from engaging in any solicitation | 8 | | activities in this State that refer potential | 9 | | customers to the seller; and | 10 | | (B) obtain annually a certification from each such | 11 | | in-State person that the person has complied with the | 12 | | prohibition stated in paragraph (A); or | 13 | | (4) the seller offers its products for sale through one | 14 | | or more marketplaces operated by a marketplace provider | 15 | | that has substantial nexus with the State. | 16 | | A retailer is presumed to be "maintaining a place of | 17 | | business in this State" if any part of the sales process occurs | 18 | | in the State, including listing products for sale, soliciting | 19 | | sales, branding products, selling products, processing orders, | 20 | | filling orders, providing customer service, or accepting or | 21 | | assisting with returns or exchanges, regardless of whether that | 22 | | part of the process has been subcontracted to an affiliate or | 23 | | third party. The sales process does not include shipping via a | 24 | | common carrier. | 25 | | A retailer is also presumed to be "maintaining a place of | 26 | | business in this State" if the retailer's total gross receipts |
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| 1 | | from sales occurring in Illinois in the previous calendar year | 2 | | is $1,000,000 or more. A retailer that is presumed to be | 3 | | "maintaining a place of business in this State" under this | 4 | | paragraph must collect and remit the tax imposed under this Act | 5 | | unless it can prove that it does not have nexus with this State | 6 | | under the Commerce Clause of the United States Constitution. | 7 | | A retailer is also presumed to be "maintaining a place of | 8 | | business in this State" if the retailer is related to a person | 9 | | that has nexus under the Commerce Clause with this State, and | 10 | | that related person: | 11 | | (1) sells under the same or a similar business name | 12 | | tangible personal property similar to that sold by the | 13 | | person against whom the presumption is asserted; | 14 | | (2) maintains an office, distribution facility, | 15 | | salesroom, warehouse, storage place, or other similar | 16 | | place of business in this State to facilitate the delivery | 17 | | of tangible personal property or sold by the person against | 18 | | whom the presumption is asserted to such person's in-state | 19 | | customers; | 20 | | (3) uses, with consent or knowledge of the person | 21 | | against whom the presumption is asserted, trademarks, | 22 | | service marks, or trade names in this State that are the | 23 | | same or substantially similar to those used by the person | 24 | | against whom the presumption is asserted; | 25 | | (4) delivers, installs, or assembles tangible personal | 26 | | property in this State, or performs maintenance or repair |
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| 1 | | services on tangible personal property in this State, which | 2 | | tangible personal property is sold to in-State customers by | 3 | | the person against whom the presumption is asserted; | 4 | | (5) facilitates the delivery of tangible personal | 5 | | property to in-State customers of the person against whom | 6 | | the presumption is asserted by allowing those customers to | 7 | | pick up tangible personal property sold by the person at an | 8 | | office, distribution facility, salesroom, warehouse, | 9 | | storage place, or other similar place of business | 10 | | maintained in this State; or | 11 | | (6) shares management, business systems, business | 12 | | practices, or employees with the person against whom the | 13 | | presumption is asserted, or engages in intercompany | 14 | | transactions with the person against whom the presumption | 15 | | is asserted related to the activities that establish or | 16 | | maintain the market in this State of the person against | 17 | | whom the presumption is asserted. | 18 | | "Marketplace provider" means a person who facilitates a | 19 | | retail sale by a retailer. For purposes of this definition, a | 20 | | marketplace provider facilitates a retail sale when the | 21 | | marketplace provider both (i) lists or advertises tangible | 22 | | personal property for sale in any forum, including a catalog or | 23 | | Internet website and (ii) either directly or indirectly through | 24 | | agreements or arrangements with third parties collects sales | 25 | | receipts from the customer and transmits those
receipts to a | 26 | | retailer, whether or not the marketplace provider deducts any |
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| 1 | | fees from the transmission of those receipts to the retailer. | 2 | | The Department may adopt rules that further clarify when a | 3 | | marketplace provider facilitates a retail sale. | 4 | | and includes any of the following retailers:
| 5 | | 1. A retailer having or maintaining within this State, | 6 | | directly or by
a subsidiary, an office, distribution house, | 7 | | sales house, warehouse or other
place of business, or any | 8 | | agent or other representative operating within this
State | 9 | | under the authority of the retailer or its subsidiary, | 10 | | irrespective of
whether such place of business or agent or | 11 | | other representative is located here
permanently or | 12 | | temporarily, or whether such retailer or subsidiary is | 13 | | licensed
to do business in this State. However, the | 14 | | ownership of property that is
located at the premises of a | 15 | | printer with which the retailer has contracted for
printing | 16 | | and that consists of the final printed product, property | 17 | | that becomes
a part of the final printed product, or copy | 18 | | from which the printed product is
produced shall not result | 19 | | in the retailer being deemed to have or maintain an
office, | 20 | | distribution house, sales house, warehouse, or other place | 21 | | of business
within this State. | 22 | | 1.1. A retailer having a contract with a person located | 23 | | in this State under which the person, for a commission or | 24 | | other consideration based upon the sale of tangible | 25 | | personal property by the retailer, directly or indirectly | 26 | | refers potential customers to the retailer by providing to |
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| 1 | | the potential customers a promotional code or other | 2 | | mechanism that allows the retailer to track purchases | 3 | | referred by such persons. Examples of mechanisms that allow | 4 | | the retailer to track purchases referred by such persons | 5 | | include but are not limited to the use of a link on the | 6 | | person's Internet website, promotional codes distributed | 7 | | through the person's hand-delivered or mailed material, | 8 | | and promotional codes distributed by the person through | 9 | | radio or other broadcast media. The provisions of this | 10 | | paragraph 1.1 shall apply only if the cumulative gross | 11 | | receipts from sales of tangible personal property by the | 12 | | retailer to customers who are referred to the retailer by | 13 | | all persons in this State under such contracts exceed | 14 | | $10,000 during the preceding 4 quarterly periods ending on | 15 | | the last day of March, June, September, and December. A | 16 | | retailer meeting the requirements of this paragraph 1.1 | 17 | | shall be presumed to be maintaining a place of business in | 18 | | this State but may rebut this presumption by submitting | 19 | | proof that the referrals or other activities pursued within | 20 | | this State by such persons were not sufficient to meet the | 21 | | nexus standards of the United States Constitution during | 22 | | the preceding 4 quarterly periods. | 23 | | 1.2. Beginning July 1, 2011, a retailer having a | 24 | | contract with a person located in this State under which: | 25 | | A. the retailer sells the same or substantially | 26 | | similar line of products as the person located in this |
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| 1 | | State and does so using an identical or substantially | 2 | | similar name, trade name, or trademark as the person | 3 | | located in this State; and | 4 | | B. the retailer provides a commission or other | 5 | | consideration to the person located in this State based | 6 | | upon the sale of tangible personal property by the | 7 | | retailer. | 8 | | The provisions of this paragraph 1.2 shall apply only if | 9 | | the cumulative gross receipts from sales of tangible | 10 | | personal property by the retailer to customers in this | 11 | | State under all such contracts exceed $10,000 during the | 12 | | preceding 4 quarterly periods ending on the last day of | 13 | | March, June, September, and December.
| 14 | | 2. A retailer soliciting orders for tangible personal | 15 | | property by
means of a telecommunication or television | 16 | | shopping system (which utilizes toll
free numbers) which is | 17 | | intended by the retailer to be broadcast by cable
| 18 | | television or other means of broadcasting, to consumers | 19 | | located in this State.
| 20 | | 3. A retailer, pursuant to a contract with a | 21 | | broadcaster or publisher
located in this State, soliciting | 22 | | orders for tangible personal property by
means of | 23 | | advertising which is disseminated primarily to consumers | 24 | | located in
this State and only secondarily to bordering | 25 | | jurisdictions.
| 26 | | 4. A retailer soliciting orders for tangible personal |
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| 1 | | property by mail
if the solicitations are substantial and | 2 | | recurring and if the retailer benefits
from any banking, | 3 | | financing, debt collection, telecommunication, or | 4 | | marketing
activities occurring in this State or benefits | 5 | | from the location in this State
of authorized installation, | 6 | | servicing, or repair facilities.
| 7 | | 5. A retailer that is owned or controlled by the same | 8 | | interests that own
or control any retailer engaging in | 9 | | business in the same or similar line of
business in this | 10 | | State.
| 11 | | 6. A retailer having a franchisee or licensee operating | 12 | | under its trade
name if the franchisee or licensee is | 13 | | required to collect the tax under this
Section.
| 14 | | 7. A retailer, pursuant to a contract with a cable | 15 | | television operator
located in this State, soliciting | 16 | | orders for tangible personal property by
means of | 17 | | advertising which is transmitted or distributed over a | 18 | | cable
television system in this State.
| 19 | | 8. A retailer engaging in activities in Illinois, which | 20 | | activities in
the state in which the retail business | 21 | | engaging in such activities is located
would constitute | 22 | | maintaining a place of business in that state.
| 23 | | "Bulk vending machine" means a vending machine,
containing | 24 | | unsorted confections, nuts, toys, or other items designed
| 25 | | primarily to be used or played with by children
which, when a | 26 | | coin or coins of a denomination not larger than $0.50 are |
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| 1 | | inserted, are dispensed in equal portions, at random and
| 2 | | without selection by the customer.
| 3 | | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14; | 4 | | 98-1089, eff. 1-1-15; 99-78, eff. 7-20-15.)
| 5 | | (35 ILCS 105/3-45) (from Ch. 120, par. 439.3-45)
| 6 | | Sec. 3-45. Collection. The tax imposed by this Act
shall be | 7 | | collected from the
purchaser by a retailer maintaining a place | 8 | | of business in this State or a
retailer authorized by the | 9 | | Department under Section 6 of this Act,
and shall be remitted | 10 | | to the Department as provided
in Section 9 of this Act, except | 11 | | as provided in Section 3-10.5 of
this Act.
| 12 | | A marketplace provider maintaining a place of business in | 13 | | this State is required to collect and remit the tax imposed | 14 | | under this Act on any sales facilitated by a marketplace | 15 | | provider to a customer in this State. However, no marketplace | 16 | | provider is required to collect and remit the tax imposed on a | 17 | | sale between a retailer and a customer in this State if (i) the | 18 | | retailer provides to the marketplace provider a copy of his or | 19 | | her certificate of registration under this Act, the Service Use | 20 | | Tax Act, the Service Occupation Tax Act, or the Retailers' | 21 | | Occupation Tax Act or (ii) the retailer appears on a list | 22 | | published by the Department of the entities registered to | 23 | | collect use and occupation taxes in this State. The Department | 24 | | shall adopt rules regarding the content a publication of the | 25 | | list. Nothing in this Section shall be construed to interfere |
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| 1 | | with the ability of a marketplace provider and a marketplace | 2 | | seller to enter into agreements with each other regarding | 3 | | fulfillment of the requirements of this
Act. A marketplace | 4 | | provider is relieved of liability under this Section for | 5 | | failure to collect and remit the correct amount of the tax to | 6 | | the extent that the marketplace provider can demonstrate that | 7 | | the error was due to incorrect information given to the | 8 | | marketplace provider by the retailer; except that the | 9 | | marketplace provider is not relieved of liability if the | 10 | | marketplace provider and the retailer are related persons. | 11 | | The tax imposed by this Act that is not paid to a
retailer | 12 | | or a marketplace provider under this Section shall be paid to
| 13 | | the Department directly by any person using the property
within | 14 | | this State as provided in Section 10 of this
Act.
| 15 | | Retailers and marketplace providers shall collect the tax | 16 | | from users by adding the tax to the
selling price of tangible | 17 | | personal property, when sold for use, in the
manner prescribed | 18 | | by the Department. The Department may adopt and
promulgate | 19 | | reasonable rules and regulations for the adding of the tax
by | 20 | | retailers and marketplace providers to selling prices by | 21 | | prescribing bracket systems
for the purpose of enabling the | 22 | | retailers and marketplace providers to add and collect,
as far | 23 | | as practicable, the amount of the tax.
| 24 | | If a seller collects use tax measured by receipts that are | 25 | | not
subject to use tax, or if a seller, in collecting use tax | 26 | | measured by
receipts that are subject to tax under this Act, |
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| 1 | | collects more from the
purchaser than the required amount of | 2 | | the use tax on the transaction,
the purchaser shall have a | 3 | | legal right to claim a refund of
that amount from the seller. | 4 | | If, however, that
amount is not refunded to the purchaser for | 5 | | any reason, the seller is
liable to pay that amount to the | 6 | | Department. This paragraph
does not apply to an amount | 7 | | collected by the seller as use tax on receipts
that are subject | 8 | | to tax under this Act as long as the
collection is made in | 9 | | compliance with the tax collection brackets
prescribed by the | 10 | | Department in its rules and regulations.
| 11 | | (Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)
| 12 | | (35 ILCS 105/3-67 new) | 13 | | Sec. 3-67. Referrer reporting and registration. | 14 | | (a) As used in this Section, the term "referrer" means | 15 | | every person who (i) contracts or otherwise agrees with a | 16 | | retailer to list multiple items of tangible personal property | 17 | | for sale and the sales price of those items in any forum, | 18 | | including a catalog or Internet website, (ii) receives a fee, | 19 | | commission, or other consideration from a retailer for the | 20 | | listing, (iii) transfers, via telephone, Internet link, or | 21 | | otherwise, a customer to the retailer or the retailer's website | 22 | | to complete a purchase, and (iv) does not collect receipts from | 23 | | the customer for the transaction. | 24 | | As used in this Section, the term "retailer" also includes | 25 | | servicemen, as defined in the Service Use Tax Act. |
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| 1 | | (b) By the first day of the last month of a calendar year, | 2 | | every referrer that received more than $10,000 in fees paid by | 3 | | retailers for the services described in this Section in the | 4 | | previous calendar year, or that received more than $7,500 for | 5 | | such services in the first 3 quarters of the current calendar | 6 | | year, must file with the Department a notice, in a form | 7 | | prescribed by the Department, stating the referrer's intent to | 8 | | provide the services set forth in this Section in the following | 9 | | calendar year. | 10 | | (c) The Department shall, within 15 days of receipt of the | 11 | | notice, issue a permit to such referrer, without charge, to | 12 | | allow the referrer to refer customers in this State to | 13 | | retailers. | 14 | | (d) A referrer required to file the notice set forth in | 15 | | this Section that fails to obtain a permit shall not refer | 16 | | customers in this State to retailers. | 17 | | (e) In addition to any other return or report required to | 18 | | be filed under this Act, a referrer that receives more than | 19 | | $10,000 in fees paid by retailers for the activities described | 20 | | in this Section in the previous calendar year is required to | 21 | | file a report annually listing the following: | 22 | | (1) the name and address of each retailer who has | 23 | | contracted with the referrer to refer customers within this | 24 | | State to the retailer; | 25 | | (2) if available, the cumulative sales price and any | 26 | | available transactional-level detail for referrals made by |
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| 1 | | the referrer of customers in this State to each retailer, | 2 | | including listed price of items and the number of times | 3 | | referrals were made to retailers for those items; the | 4 | | referrer shall not be required to provide any information | 5 | | that could identify a purchaser; and | 6 | | (3) if available, the number of potential customers | 7 | | located in this State that were referred to the retailer | 8 | | and, if available, the number of customers who made | 9 | | purchases after a referral. | 10 | | If a referrer does not comply with this subsection, its | 11 | | permit under this Section shall be revoked. | 12 | | (f) A referrer that receives more than $10,000 from fees | 13 | | paid by retailers during the previous calendar year is also | 14 | | required to provide notice to retailers that the retailer's | 15 | | sales may be subject to the tax under this Act and that the | 16 | | retailer's contact information and sales volume into this State | 17 | | is being provided to the Department. The Department may | 18 | | establish by rule what constitutes notice to retailers | 19 | | sufficient to meet the requirements of this Section. If a | 20 | | referrer does not comply with this subsection, its permit under | 21 | | this Section shall be revoked. | 22 | | (g) A referrer is not required to provide the information | 23 | | under this Section for a retailer if the retailer either (i) | 24 | | provides a copy of the retailer's certificate of registration | 25 | | to the referrer or (ii) the retailer appears on a list | 26 | | published by the Department. The Department shall adopt rules |
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| 1 | | regarding the content and publication of the list. | 2 | | (h) When a referrer refers a customer in this State to a | 3 | | retailer and the retailer makes a retail sale to that customer, | 4 | | liability for the use and occupation tax on the transaction due | 5 | | from the customer is imposed on the referrer in the amount of | 6 | | the tax that would have been due on the transaction based on | 7 | | the sales price listed by the retailer, unless the retailer | 8 | | either (i) provides a copy of the retailer's certificate of | 9 | | registration to the referrer or (ii) the retailer appears on a | 10 | | list published by the Department. The Department shall adopt | 11 | | rules regarding the content and publication of the list.
| 12 | | (35 ILCS 105/6) (from Ch. 120, par. 439.6)
| 13 | | Sec. 6.
A retailer or marketplace provider maintaining a | 14 | | place of business in this State, if
required to register under | 15 | | the Retailers' Occupation Tax Act, need not
obtain an | 16 | | additional Certificate of Registration under this Act, but | 17 | | shall
be deemed to be sufficiently registered by virtue of his | 18 | | being registered
under the Retailers' Occupation Tax Act. Every | 19 | | retailer or marketplace provider maintaining a place
of | 20 | | business in this State, if not required to register under the | 21 | | Retailers'
Occupation Tax Act, shall apply to the Department | 22 | | (upon a form prescribed
and furnished by the Department) for a | 23 | | Certificate of Registration under
this Act. In completing such | 24 | | application, the applicant shall furnish such
information as | 25 | | the Department may reasonably require. Upon approval of an
|
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| 1 | | application for Certificate of Registration, the Department | 2 | | shall issue,
without charge, a Certificate of Registration to | 3 | | the applicant. Such
Certificate of Registration shall be | 4 | | displayed at the address which the
applicant states in his | 5 | | application to be the principal place of business
or location | 6 | | from which he will act as a retailer in this State. If the
| 7 | | applicant will act as a retailer or marketplace provider in | 8 | | this State from other places of
business or locations, he shall | 9 | | list the addresses of such additional
places of business or | 10 | | locations in this application for Certificate of
Registration, | 11 | | and the Department shall issue a Sub-Certificate of
| 12 | | Registration to the applicant for each such additional place of | 13 | | business or
location. Each Sub-Certificate of Registration | 14 | | shall be conspicuously
displayed at the place for which it is | 15 | | issued. Such Sub-Certificate of
Registration shall bear the | 16 | | same registration number as that appearing upon
the Certificate | 17 | | of Registration to which such Sub-Certificates relate.
Where a | 18 | | retailer operates more than one place of business which is | 19 | | subject
to registration under this Section and such businesses | 20 | | are substantially
different in character or are engaged in | 21 | | under different trade names or are
engaged in under other | 22 | | substantially dissimilar circumstances (so that it
is more | 23 | | practicable, from an accounting, auditing or bookkeeping
| 24 | | standpoint, for such businesses to be separately registered), | 25 | | the
Department may require or permit such person to apply for | 26 | | and obtain a
separate Certificate of Registration for each such |
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| 1 | | business or for any of
such businesses instead of registering | 2 | | such person, as to all such
businesses, under a single | 3 | | Certificate of Registration supplemented by
related | 4 | | Sub-Certificates of Registration. No Certificate of | 5 | | Registration
shall be issued to any person who is in default to | 6 | | the State of Illinois
for moneys due hereunder.
| 7 | | The Department may, in its discretion, upon application, | 8 | | authorize the
collection of the tax herein imposed by any | 9 | | retailer not maintaining a
place of business within this State, | 10 | | who, to the satisfaction of the
Department, furnishes adequate | 11 | | security to insure collection and payment of
the tax. Such | 12 | | retailer shall be issued, without charge, a permit to collect
| 13 | | such tax. When so authorized, it shall be the duty of such | 14 | | retailer to
collect the tax upon all tangible personal property | 15 | | sold to his knowledge
for use within this State, in the same | 16 | | manner and subject to the same
requirements, including the | 17 | | furnishing of a receipt to the purchaser (if
demanded by the | 18 | | purchaser), as a retailer maintaining a place of business
| 19 | | within this State. The receipt given to the purchaser shall be | 20 | | sufficient
to relieve him from further liability for the tax to | 21 | | which such receipt may
refer. Such permit may be revoked by the | 22 | | Department as provided herein.
| 23 | | (Source: Laws 1955, p. 2027.)
| 24 | | (35 ILCS 105/8) (from Ch. 120, par. 439.8)
| 25 | | Sec. 8.
Any retailer , marketplace provider, or referrer |
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| 1 | | required to collect the tax imposed by this Act shall
be liable | 2 | | to the Department for such tax, whether or not the tax has been
| 3 | | collected by the retailer, except when the retailer , | 4 | | marketplace provider, or referrer is relieved of the duty of
| 5 | | remitting the tax to the Department by virtue of having paid a | 6 | | tax imposed by
the Retailers' Occupation Tax Act upon his or | 7 | | her gross receipts from the
same transactions. To the extent | 8 | | that a retailer , marketplace provider, or referrer required to | 9 | | collect the tax
imposed by this Act has actually collected that | 10 | | tax, such tax is held in trust
for the benefit of the | 11 | | Department.
| 12 | | (Source: P.A. 91-203, eff. 7-20-99.)
| 13 | | (35 ILCS 105/9) (from Ch. 120, par. 439.9) | 14 | | Sec. 9. Except as to motor vehicles, watercraft, aircraft, | 15 | | and
trailers that are required to be registered with an agency | 16 | | of this State,
each retailer
required or authorized to collect | 17 | | the tax imposed by this Act shall pay
to the Department the | 18 | | amount of such tax (except as otherwise provided)
at the time | 19 | | when he is required to file his return for the period during
| 20 | | which such tax was collected, less a discount of 2.1% prior to
| 21 | | January 1, 1990, and 1.75% on and after January 1, 1990, or $5 | 22 | | per calendar
year, whichever is greater, which is allowed to | 23 | | reimburse the retailer
for expenses incurred in collecting the | 24 | | tax, keeping records, preparing
and filing returns, remitting | 25 | | the tax and supplying data to the
Department on request. In the |
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| 1 | | case of retailers who report and pay the
tax on a transaction | 2 | | by transaction basis, as provided in this Section,
such | 3 | | discount shall be taken with each such tax remittance instead | 4 | | of
when such retailer files his periodic return. The Department | 5 | | may disallow the discount for retailers whose certificate of | 6 | | registration is revoked at the time the return is filed, but | 7 | | only if the Department's decision to revoke the certificate of | 8 | | registration has become final. A retailer need not remit
that | 9 | | part of any tax collected by him to the extent that he is | 10 | | required
to remit and does remit the tax imposed by the | 11 | | Retailers' Occupation
Tax Act, with respect to the sale of the | 12 | | same property. | 13 | | Where such tangible personal property is sold under a | 14 | | conditional
sales contract, or under any other form of sale | 15 | | wherein the payment of
the principal sum, or a part thereof, is | 16 | | extended beyond the close of
the period for which the return is | 17 | | filed, the retailer, in collecting
the tax (except as to motor | 18 | | vehicles, watercraft, aircraft, and
trailers that are required | 19 | | to be registered with an agency of this State),
may collect for | 20 | | each
tax return period, only the tax applicable to that part of | 21 | | the selling
price actually received during such tax return | 22 | | period. | 23 | | Except as provided in this Section, on or before the | 24 | | twentieth day of each
calendar month, such retailer shall file | 25 | | a return for the preceding
calendar month. Such return shall be | 26 | | filed on forms prescribed by the
Department and shall furnish |
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| 1 | | such information as the Department may
reasonably require. | 2 | | The Department may require returns to be filed on a | 3 | | quarterly basis.
If so required, a return for each calendar | 4 | | quarter shall be filed on or
before the twentieth day of the | 5 | | calendar month following the end of such
calendar quarter. The | 6 | | taxpayer shall also file a return with the
Department for each | 7 | | of the first two months of each calendar quarter, on or
before | 8 | | the twentieth day of the following calendar month, stating: | 9 | | 1. The name of the seller; | 10 | | 2. The address of the principal place of business from | 11 | | which he engages
in the business of selling tangible | 12 | | personal property at retail in this State; | 13 | | 3. The total amount of taxable receipts received by him | 14 | | during the
preceding calendar month from sales of tangible | 15 | | personal property by him
during such preceding calendar | 16 | | month, including receipts from charge and
time sales, but | 17 | | less all deductions allowed by law; | 18 | | 4. The amount of credit provided in Section 2d of this | 19 | | Act; | 20 | | 5. The amount of tax due; | 21 | | 5-5. The signature of the taxpayer; and | 22 | | 6. Such other reasonable information as the Department | 23 | | may
require. | 24 | | If a taxpayer fails to sign a return within 30 days after | 25 | | the proper notice
and demand for signature by the Department, | 26 | | the return shall be considered
valid and any amount shown to be |
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| 1 | | due on the return shall be deemed assessed. | 2 | | Beginning October 1, 1993, a taxpayer who has an average | 3 | | monthly tax
liability of $150,000 or more shall make all | 4 | | payments required by rules of the
Department by electronic | 5 | | funds transfer. Beginning October 1, 1994, a taxpayer
who has | 6 | | an average monthly tax liability of $100,000 or more shall make | 7 | | all
payments required by rules of the Department by electronic | 8 | | funds transfer.
Beginning October 1, 1995, a taxpayer who has | 9 | | an average monthly tax liability
of $50,000 or more shall make | 10 | | all payments required by rules of the Department
by electronic | 11 | | funds transfer. Beginning October 1, 2000, a taxpayer who has
| 12 | | an annual tax liability of $200,000 or more shall make all | 13 | | payments required by
rules of the Department by electronic | 14 | | funds transfer. The term "annual tax
liability" shall be the | 15 | | sum of the taxpayer's liabilities under this Act, and
under all | 16 | | other State and local occupation and use tax laws administered | 17 | | by the
Department, for the immediately preceding calendar year. | 18 | | The term "average
monthly tax liability" means
the sum of the | 19 | | taxpayer's liabilities under this Act, and under all other | 20 | | State
and local occupation and use tax laws administered by the | 21 | | Department, for the
immediately preceding calendar year | 22 | | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | 23 | | a tax liability in the
amount set forth in subsection (b) of | 24 | | Section 2505-210 of the Department of
Revenue Law shall make | 25 | | all payments required by rules of the Department by
electronic | 26 | | funds transfer. |
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| 1 | | Before August 1 of each year beginning in 1993, the | 2 | | Department shall notify
all taxpayers required to make payments | 3 | | by electronic funds transfer. All
taxpayers required to make | 4 | | payments by electronic funds transfer shall make
those payments | 5 | | for a minimum of one year beginning on October 1. | 6 | | Any taxpayer not required to make payments by electronic | 7 | | funds transfer may
make payments by electronic funds transfer | 8 | | with the permission of the
Department. | 9 | | All taxpayers required to make payment by electronic funds | 10 | | transfer and any
taxpayers authorized to voluntarily make | 11 | | payments by electronic funds transfer
shall make those payments | 12 | | in the manner authorized by the Department. | 13 | | The Department shall adopt such rules as are necessary to | 14 | | effectuate a
program of electronic funds transfer and the | 15 | | requirements of this Section. | 16 | | Before October 1, 2000, if the taxpayer's average monthly | 17 | | tax liability
to the Department
under this Act, the Retailers' | 18 | | Occupation Tax Act, the Service
Occupation Tax Act, the Service | 19 | | Use Tax Act was $10,000 or more
during
the preceding 4 complete | 20 | | calendar quarters, he shall file a return with the
Department | 21 | | each month by the 20th day of the month next following the | 22 | | month
during which such tax liability is incurred and shall | 23 | | make payments to the
Department on or before the 7th, 15th, | 24 | | 22nd and last day of the month
during which such liability is | 25 | | incurred.
On and after October 1, 2000, if the taxpayer's | 26 | | average monthly tax liability
to the Department under this Act, |
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| 1 | | the Retailers' Occupation Tax Act,
the
Service Occupation Tax | 2 | | Act, and the Service Use Tax Act was $20,000 or more
during the | 3 | | preceding 4 complete calendar quarters, he shall file a return | 4 | | with
the Department each month by the 20th day of the month | 5 | | next following the month
during which such tax liability is | 6 | | incurred and shall make payment to the
Department on or before | 7 | | the 7th, 15th, 22nd and last day of the
month during
which such | 8 | | liability is incurred.
If the month during which such tax
| 9 | | liability is incurred began prior to January 1, 1985, each | 10 | | payment shall be
in an amount equal to 1/4 of the taxpayer's
| 11 | | actual liability for the month or an amount set by the | 12 | | Department not to
exceed 1/4 of the average monthly liability | 13 | | of the taxpayer to the
Department for the preceding 4 complete | 14 | | calendar quarters (excluding the
month of highest liability and | 15 | | the month of lowest liability in such 4
quarter period). If the | 16 | | month during which such tax liability is incurred
begins on or | 17 | | after January 1, 1985, and prior to January 1, 1987, each
| 18 | | payment shall be in an amount equal to 22.5% of the taxpayer's | 19 | | actual liability
for the month or 27.5% of the taxpayer's | 20 | | liability for the same calendar
month of the preceding year. If | 21 | | the month during which such tax liability
is incurred begins on | 22 | | or after January 1, 1987, and prior to January 1,
1988, each | 23 | | payment shall be in an amount equal to 22.5% of the taxpayer's
| 24 | | actual liability for the month or 26.25% of the taxpayer's | 25 | | liability for
the same calendar month of the preceding year. If | 26 | | the month during which such
tax liability is incurred begins on |
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| 1 | | or after January 1, 1988, and prior to
January 1, 1989,
or | 2 | | begins on or after January 1, 1996, each payment shall be in an | 3 | | amount equal
to 22.5% of the taxpayer's actual liability for | 4 | | the month or 25% of the
taxpayer's liability for the same | 5 | | calendar month of the preceding year. If the
month during which | 6 | | such tax liability is incurred begins on or after January 1,
| 7 | | 1989,
and prior to January 1, 1996, each payment shall be in an | 8 | | amount equal to 22.5%
of the taxpayer's actual liability for | 9 | | the month or 25% of the taxpayer's
liability for the same | 10 | | calendar month of the preceding year or 100% of the
taxpayer's | 11 | | actual liability for the quarter monthly reporting period. The
| 12 | | amount of such quarter monthly payments shall be credited | 13 | | against the final tax
liability
of the taxpayer's return for | 14 | | that month. Before October 1, 2000, once
applicable, the | 15 | | requirement
of the making of quarter monthly payments to the | 16 | | Department shall continue
until such taxpayer's average | 17 | | monthly liability to the Department during
the preceding 4 | 18 | | complete calendar quarters (excluding the month of highest
| 19 | | liability and the month of lowest liability) is less than
| 20 | | $9,000, or until
such taxpayer's average monthly liability to | 21 | | the Department as computed for
each calendar quarter of the 4 | 22 | | preceding complete calendar quarter period
is less than | 23 | | $10,000. However, if a taxpayer can show the
Department that
a | 24 | | substantial change in the taxpayer's business has occurred | 25 | | which causes
the taxpayer to anticipate that his average | 26 | | monthly tax liability for the
reasonably foreseeable future |
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| 1 | | will fall below the $10,000 threshold
stated above, then
such | 2 | | taxpayer
may petition the Department for change in such | 3 | | taxpayer's reporting status.
On and after October 1, 2000, once | 4 | | applicable, the requirement of the making
of quarter monthly | 5 | | payments to the Department shall continue until such
taxpayer's | 6 | | average monthly liability to the Department during the | 7 | | preceding 4
complete calendar quarters (excluding the month of | 8 | | highest liability and the
month of lowest liability) is less | 9 | | than $19,000 or until such taxpayer's
average monthly liability | 10 | | to the Department as computed for each calendar
quarter of the | 11 | | 4 preceding complete calendar quarter period is less than
| 12 | | $20,000. However, if a taxpayer can show the Department that a | 13 | | substantial
change in the taxpayer's business has occurred | 14 | | which causes the taxpayer to
anticipate that his average | 15 | | monthly tax liability for the reasonably
foreseeable future | 16 | | will fall below the $20,000 threshold stated above, then
such | 17 | | taxpayer may petition the Department for a change in such | 18 | | taxpayer's
reporting status.
The Department shall change such | 19 | | taxpayer's reporting status unless it
finds that such change is | 20 | | seasonal in nature and not likely to be long
term. If any such | 21 | | quarter monthly payment is not paid at the time or in
the | 22 | | amount required by this Section, then the taxpayer shall be | 23 | | liable for
penalties and interest on
the difference between the | 24 | | minimum amount due and the amount of such
quarter monthly | 25 | | payment actually and timely paid, except insofar as the
| 26 | | taxpayer has previously made payments for that month to the |
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| 1 | | Department in
excess of the minimum payments previously due as | 2 | | provided in this Section.
The Department shall make reasonable | 3 | | rules and regulations to govern the
quarter monthly payment | 4 | | amount and quarter monthly payment dates for
taxpayers who file | 5 | | on other than a calendar monthly basis. | 6 | | If any such payment provided for in this Section exceeds | 7 | | the taxpayer's
liabilities under this Act, the Retailers' | 8 | | Occupation Tax Act, the Service
Occupation Tax Act and the | 9 | | Service Use Tax Act, as shown by an original
monthly return, | 10 | | the Department shall issue to the taxpayer a credit
memorandum | 11 | | no later than 30 days after the date of payment, which
| 12 | | memorandum may be submitted by the taxpayer to the Department | 13 | | in payment of
tax liability subsequently to be remitted by the | 14 | | taxpayer to the Department
or be assigned by the taxpayer to a | 15 | | similar taxpayer under this Act, the
Retailers' Occupation Tax | 16 | | Act, the Service Occupation Tax Act or the
Service Use Tax Act, | 17 | | in accordance with reasonable rules and regulations to
be | 18 | | prescribed by the Department, except that if such excess | 19 | | payment is
shown on an original monthly return and is made | 20 | | after December 31, 1986, no
credit memorandum shall be issued, | 21 | | unless requested by the taxpayer. If no
such request is made, | 22 | | the taxpayer may credit such excess payment against
tax | 23 | | liability subsequently to be remitted by the taxpayer to the | 24 | | Department
under this Act, the Retailers' Occupation Tax Act, | 25 | | the Service Occupation
Tax Act or the Service Use Tax Act, in | 26 | | accordance with reasonable rules and
regulations prescribed by |
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| 1 | | the Department. If the Department subsequently
determines that | 2 | | all or any part of the credit taken was not actually due to
the | 3 | | taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | 4 | | be
reduced by 2.1% or 1.75% of the difference between the | 5 | | credit taken and
that actually due, and the taxpayer shall be | 6 | | liable for penalties and
interest on such difference. | 7 | | If the retailer is otherwise required to file a monthly | 8 | | return and if the
retailer's average monthly tax liability to | 9 | | the Department
does not exceed $200, the Department may | 10 | | authorize his returns to be
filed on a quarter annual basis, | 11 | | with the return for January, February,
and March of a given | 12 | | year being due by April 20 of such year; with the
return for | 13 | | April, May and June of a given year being due by July 20 of
such | 14 | | year; with the return for July, August and September of a given
| 15 | | year being due by October 20 of such year, and with the return | 16 | | for
October, November and December of a given year being due by | 17 | | January 20
of the following year. | 18 | | If the retailer is otherwise required to file a monthly or | 19 | | quarterly
return and if the retailer's average monthly tax | 20 | | liability to the
Department does not exceed $50, the Department | 21 | | may authorize his returns to
be filed on an annual basis, with | 22 | | the return for a given year being due by
January 20 of the | 23 | | following year. | 24 | | Such quarter annual and annual returns, as to form and | 25 | | substance,
shall be subject to the same requirements as monthly | 26 | | returns. |
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| 1 | | Notwithstanding any other provision in this Act concerning | 2 | | the time
within which a retailer may file his return, in the | 3 | | case of any retailer
who ceases to engage in a kind of business | 4 | | which makes him responsible
for filing returns under this Act, | 5 | | such retailer shall file a final
return under this Act with the | 6 | | Department not more than one month after
discontinuing such | 7 | | business. | 8 | | In addition, with respect to motor vehicles, watercraft,
| 9 | | aircraft, and trailers that are required to be registered with | 10 | | an agency of
this State, every
retailer selling this kind of | 11 | | tangible personal property shall file,
with the Department, | 12 | | upon a form to be prescribed and supplied by the
Department, a | 13 | | separate return for each such item of tangible personal
| 14 | | property which the retailer sells, except that if, in the same
| 15 | | transaction, (i) a retailer of aircraft, watercraft, motor | 16 | | vehicles or
trailers transfers more than
one aircraft, | 17 | | watercraft, motor
vehicle or trailer to another aircraft, | 18 | | watercraft, motor vehicle or
trailer retailer for the purpose | 19 | | of resale
or (ii) a retailer of aircraft, watercraft, motor | 20 | | vehicles, or trailers
transfers more than one aircraft, | 21 | | watercraft, motor vehicle, or trailer to a
purchaser for use as | 22 | | a qualifying rolling stock as provided in Section 3-55 of
this | 23 | | Act, then
that seller may report the transfer of all the
| 24 | | aircraft, watercraft, motor
vehicles
or trailers involved in | 25 | | that transaction to the Department on the same
uniform
| 26 | | invoice-transaction reporting return form.
For purposes of |
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| 1 | | this Section, "watercraft" means a Class 2, Class 3, or
Class
4 | 2 | | watercraft as defined in Section 3-2 of the Boat Registration | 3 | | and Safety Act,
a
personal watercraft, or any boat equipped | 4 | | with an inboard motor. | 5 | | The transaction reporting return in the case of motor | 6 | | vehicles
or trailers that are required to be registered with an | 7 | | agency of this
State, shall
be the same document as the Uniform | 8 | | Invoice referred to in Section 5-402
of the Illinois Vehicle | 9 | | Code and must show the name and address of the
seller; the name | 10 | | and address of the purchaser; the amount of the selling
price | 11 | | including the amount allowed by the retailer for traded-in
| 12 | | property, if any; the amount allowed by the retailer for the | 13 | | traded-in
tangible personal property, if any, to the extent to | 14 | | which Section 2 of
this Act allows an exemption for the value | 15 | | of traded-in property; the
balance payable after deducting such | 16 | | trade-in allowance from the total
selling price; the amount of | 17 | | tax due from the retailer with respect to
such transaction; the | 18 | | amount of tax collected from the purchaser by the
retailer on | 19 | | such transaction (or satisfactory evidence that such tax is
not | 20 | | due in that particular instance, if that is claimed to be the | 21 | | fact);
the place and date of the sale; a sufficient | 22 | | identification of the
property sold; such other information as | 23 | | is required in Section 5-402 of
the Illinois Vehicle Code, and | 24 | | such other information as the Department
may reasonably | 25 | | require. | 26 | | The transaction reporting return in the case of watercraft
|
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| 1 | | and aircraft must show
the name and address of the seller; the | 2 | | name and address of the
purchaser; the amount of the selling | 3 | | price including the amount allowed
by the retailer for | 4 | | traded-in property, if any; the amount allowed by
the retailer | 5 | | for the traded-in tangible personal property, if any, to
the | 6 | | extent to which Section 2 of this Act allows an exemption for | 7 | | the
value of traded-in property; the balance payable after | 8 | | deducting such
trade-in allowance from the total selling price; | 9 | | the amount of tax due
from the retailer with respect to such | 10 | | transaction; the amount of tax
collected from the purchaser by | 11 | | the retailer on such transaction (or
satisfactory evidence that | 12 | | such tax is not due in that particular
instance, if that is | 13 | | claimed to be the fact); the place and date of the
sale, a | 14 | | sufficient identification of the property sold, and such other
| 15 | | information as the Department may reasonably require. | 16 | | Such transaction reporting return shall be filed not later | 17 | | than 20
days after the date of delivery of the item that is | 18 | | being sold, but may
be filed by the retailer at any time sooner | 19 | | than that if he chooses to
do so. The transaction reporting | 20 | | return and tax remittance or proof of
exemption from the tax | 21 | | that is imposed by this Act may be transmitted to
the | 22 | | Department by way of the State agency with which, or State | 23 | | officer
with whom, the tangible personal property must be | 24 | | titled or registered
(if titling or registration is required) | 25 | | if the Department and such
agency or State officer determine | 26 | | that this procedure will expedite the
processing of |
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| 1 | | applications for title or registration. | 2 | | With each such transaction reporting return, the retailer | 3 | | shall remit
the proper amount of tax due (or shall submit | 4 | | satisfactory evidence that
the sale is not taxable if that is | 5 | | the case), to the Department or its
agents, whereupon the | 6 | | Department shall issue, in the purchaser's name, a
tax receipt | 7 | | (or a certificate of exemption if the Department is
satisfied | 8 | | that the particular sale is tax exempt) which such purchaser
| 9 | | may submit to the agency with which, or State officer with | 10 | | whom, he must
title or register the tangible personal property | 11 | | that is involved (if
titling or registration is required) in | 12 | | support of such purchaser's
application for an Illinois | 13 | | certificate or other evidence of title or
registration to such | 14 | | tangible personal property. | 15 | | No retailer's failure or refusal to remit tax under this | 16 | | Act
precludes a user, who has paid the proper tax to the | 17 | | retailer, from
obtaining his certificate of title or other | 18 | | evidence of title or
registration (if titling or registration | 19 | | is required) upon satisfying
the Department that such user has | 20 | | paid the proper tax (if tax is due) to
the retailer. The | 21 | | Department shall adopt appropriate rules to carry out
the | 22 | | mandate of this paragraph. | 23 | | If the user who would otherwise pay tax to the retailer | 24 | | wants the
transaction reporting return filed and the payment of | 25 | | tax or proof of
exemption made to the Department before the | 26 | | retailer is willing to take
these actions and such user has not |
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| 1 | | paid the tax to the retailer, such
user may certify to the fact | 2 | | of such delay by the retailer, and may
(upon the Department | 3 | | being satisfied of the truth of such certification)
transmit | 4 | | the information required by the transaction reporting return
| 5 | | and the remittance for tax or proof of exemption directly to | 6 | | the
Department and obtain his tax receipt or exemption | 7 | | determination, in
which event the transaction reporting return | 8 | | and tax remittance (if a
tax payment was required) shall be | 9 | | credited by the Department to the
proper retailer's account | 10 | | with the Department, but without the 2.1% or 1.75%
discount | 11 | | provided for in this Section being allowed. When the user pays
| 12 | | the tax directly to the Department, he shall pay the tax in the | 13 | | same
amount and in the same form in which it would be remitted | 14 | | if the tax had
been remitted to the Department by the retailer. | 15 | | Where a retailer collects the tax with respect to the | 16 | | selling price
of tangible personal property which he sells and | 17 | | the purchaser
thereafter returns such tangible personal | 18 | | property and the retailer
refunds the selling price thereof to | 19 | | the purchaser, such retailer shall
also refund, to the | 20 | | purchaser, the tax so collected from the purchaser.
When filing | 21 | | his return for the period in which he refunds such tax to
the | 22 | | purchaser, the retailer may deduct the amount of the tax so | 23 | | refunded
by him to the purchaser from any other use tax which | 24 | | such retailer may
be required to pay or remit to the | 25 | | Department, as shown by such return,
if the amount of the tax | 26 | | to be deducted was previously remitted to the
Department by |
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| 1 | | such retailer. If the retailer has not previously
remitted the | 2 | | amount of such tax to the Department, he is entitled to no
| 3 | | deduction under this Act upon refunding such tax to the | 4 | | purchaser. | 5 | | Any retailer filing a return under this Section shall also | 6 | | include
(for the purpose of paying tax thereon) the total tax | 7 | | covered by such
return upon the selling price of tangible | 8 | | personal property purchased by
him at retail from a retailer, | 9 | | but as to which the tax imposed by this
Act was not collected | 10 | | from the retailer filing such return, and such
retailer shall | 11 | | remit the amount of such tax to the Department when
filing such | 12 | | return. | 13 | | If experience indicates such action to be practicable, the | 14 | | Department
may prescribe and furnish a combination or joint | 15 | | return which will
enable retailers, who are required to file | 16 | | returns hereunder and also
under the Retailers' Occupation Tax | 17 | | Act, to furnish all the return
information required by both | 18 | | Acts on the one form. | 19 | | Where the retailer has more than one business registered | 20 | | with the
Department under separate registration under this Act, | 21 | | such retailer may
not file each return that is due as a single | 22 | | return covering all such
registered businesses, but shall file | 23 | | separate returns for each such
registered business. | 24 | | Beginning January 1, 1990, each month the Department shall | 25 | | pay into the
State and Local Sales Tax Reform Fund, a special | 26 | | fund in the State Treasury
which is hereby created, the net |
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| 1 | | revenue realized for the preceding month
from the 1% tax on | 2 | | sales of food for human consumption which is to be
consumed off | 3 | | the premises where it is sold (other than alcoholic beverages,
| 4 | | soft drinks and food which has been prepared for immediate | 5 | | consumption) and
prescription and nonprescription medicines, | 6 | | drugs, medical appliances and
insulin, urine testing | 7 | | materials, syringes and needles used by diabetics. | 8 | | Beginning January 1, 1990, each month the Department shall | 9 | | pay into
the County and Mass Transit District Fund 4% of the | 10 | | net revenue realized
for the preceding month from the 6.25% | 11 | | general rate
on the selling price of tangible personal property | 12 | | which is purchased
outside Illinois at retail from a retailer | 13 | | and which is titled or
registered by an agency of this State's | 14 | | government. | 15 | | Beginning January 1, 1990, each month the Department shall | 16 | | pay into
the State and Local Sales Tax Reform Fund, a special | 17 | | fund in the State
Treasury, 20% of the net revenue realized
for | 18 | | the preceding month from the 6.25% general rate on the selling
| 19 | | price of tangible personal property, other than tangible | 20 | | personal property
which is purchased outside Illinois at retail | 21 | | from a retailer and which is
titled or registered by an agency | 22 | | of this State's government. | 23 | | Beginning August 1, 2000, each
month the Department shall | 24 | | pay into the
State and Local Sales Tax Reform Fund 100% of the | 25 | | net revenue realized for the
preceding month from the 1.25% | 26 | | rate on the selling price of motor fuel and
gasohol. Beginning |
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| 1 | | September 1, 2010, each
month the Department shall pay into the
| 2 | | State and Local Sales Tax Reform Fund 100% of the net revenue | 3 | | realized for the
preceding month from the 1.25% rate on the | 4 | | selling price of sales tax holiday items. | 5 | | Beginning January 1, 1990, each month the Department shall | 6 | | pay into
the Local Government Tax Fund 16% of the net revenue | 7 | | realized for the
preceding month from the 6.25% general rate on | 8 | | the selling price of
tangible personal property which is | 9 | | purchased outside Illinois at retail
from a retailer and which | 10 | | is titled or registered by an agency of this
State's | 11 | | government. | 12 | | Beginning October 1, 2009, each month the Department shall | 13 | | pay into the Capital Projects Fund an amount that is equal to | 14 | | an amount estimated by the Department to represent 80% of the | 15 | | net revenue realized for the preceding month from the sale of | 16 | | candy, grooming and hygiene products, and soft drinks that had | 17 | | been taxed at a rate of 1% prior to September 1, 2009 but that | 18 | | are now taxed at 6.25%. | 19 | | Beginning July 1, 2011, each
month the Department shall pay | 20 | | into the Clean Air Act (CAA) Permit Fund 80% of the net revenue | 21 | | realized for the
preceding month from the 6.25% general rate on | 22 | | the selling price of sorbents used in Illinois in the process | 23 | | of sorbent injection as used to comply with the Environmental | 24 | | Protection Act or the federal Clean Air Act, but the total | 25 | | payment into the Clean Air Act (CAA) Permit Fund under this Act | 26 | | and the Retailers' Occupation Tax Act shall not exceed |
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| 1 | | $2,000,000 in any fiscal year. | 2 | | Beginning July 1, 2013, each month the Department shall pay | 3 | | into the Underground Storage Tank Fund from the proceeds | 4 | | collected under this Act, the Service Use Tax Act, the Service | 5 | | Occupation Tax Act, and the Retailers' Occupation Tax Act an | 6 | | amount equal to the average monthly deficit in the Underground | 7 | | Storage Tank Fund during the prior year, as certified annually | 8 | | by the Illinois Environmental Protection Agency, but the total | 9 | | payment into the Underground Storage Tank Fund under this Act, | 10 | | the Service Use Tax Act, the Service Occupation Tax Act, and | 11 | | the Retailers' Occupation Tax Act shall not exceed $18,000,000 | 12 | | in any State fiscal year. As used in this paragraph, the | 13 | | "average monthly deficit" shall be equal to the difference | 14 | | between the average monthly claims for payment by the fund and | 15 | | the average monthly revenues deposited into the fund, excluding | 16 | | payments made pursuant to this paragraph. | 17 | | Beginning July 1, 2015, of the remainder of the moneys | 18 | | received by the Department under this Act, the Service Use Tax | 19 | | Act, the Service Occupation Tax Act, and the Retailers' | 20 | | Occupation Tax Act, each month the Department shall deposit | 21 | | $500,000 into the State Crime Laboratory Fund. | 22 | | Of the remainder of the moneys received by the Department | 23 | | pursuant to
this Act, (a) 1.75% thereof shall be paid
into the | 24 | | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on | 25 | | and after July 1, 1989, 3.8% thereof shall be paid into the
| 26 | | Build Illinois Fund; provided, however, that if in any fiscal |
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| 1 | | year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case | 2 | | may be, of the
moneys received by the Department and required | 3 | | to be paid into the Build
Illinois Fund pursuant to Section 3 | 4 | | of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax | 5 | | Act, Section 9 of the Service Use
Tax Act, and Section 9 of the | 6 | | Service Occupation Tax Act, such Acts being
hereinafter called | 7 | | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case | 8 | | may be, of moneys being hereinafter called the "Tax Act | 9 | | Amount",
and (2) the amount transferred to the Build Illinois | 10 | | Fund from the State
and Local Sales Tax Reform Fund shall be | 11 | | less than the Annual Specified
Amount (as defined in Section 3 | 12 | | of the Retailers' Occupation Tax Act), an
amount equal to the | 13 | | difference shall be immediately paid into the Build
Illinois | 14 | | Fund from other moneys received by the Department pursuant to | 15 | | the
Tax Acts; and further provided, that if on the last | 16 | | business day of any
month the sum of (1) the Tax Act Amount | 17 | | required to be deposited into the
Build Illinois Bond Account | 18 | | in the Build Illinois Fund during such month
and (2) the amount | 19 | | transferred during such month to the Build Illinois Fund
from | 20 | | the State and Local Sales Tax Reform Fund shall have been less | 21 | | than
1/12 of the Annual Specified Amount, an amount equal to | 22 | | the difference
shall be immediately paid into the Build | 23 | | Illinois Fund from other moneys
received by the Department | 24 | | pursuant to the Tax Acts; and,
further provided, that in no | 25 | | event shall the payments required under the
preceding proviso | 26 | | result in aggregate payments into the Build Illinois Fund
|
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| 1 | | pursuant to this clause (b) for any fiscal year in excess of | 2 | | the greater
of (i) the Tax Act Amount or (ii) the Annual | 3 | | Specified Amount for such
fiscal year; and, further provided, | 4 | | that the amounts payable into the Build
Illinois Fund under | 5 | | this clause (b) shall be payable only until such time
as the | 6 | | aggregate amount on deposit under each trust
indenture securing | 7 | | Bonds issued and outstanding pursuant to the Build
Illinois | 8 | | Bond Act is sufficient, taking into account any future | 9 | | investment
income, to fully provide, in accordance with such | 10 | | indenture, for the
defeasance of or the payment of the | 11 | | principal of, premium, if any, and
interest on the Bonds | 12 | | secured by such indenture and on any Bonds expected
to be | 13 | | issued thereafter and all fees and costs payable with respect | 14 | | thereto,
all as certified by the Director of the
Bureau of the | 15 | | Budget (now Governor's Office of Management and Budget). If
on | 16 | | the last
business day of any month in which Bonds are | 17 | | outstanding pursuant to the
Build Illinois Bond Act, the | 18 | | aggregate of the moneys deposited
in the Build Illinois Bond | 19 | | Account in the Build Illinois Fund in such month
shall be less | 20 | | than the amount required to be transferred in such month from
| 21 | | the Build Illinois Bond Account to the Build Illinois Bond | 22 | | Retirement and
Interest Fund pursuant to Section 13 of the | 23 | | Build Illinois Bond Act, an
amount equal to such deficiency | 24 | | shall be immediately paid
from other moneys received by the | 25 | | Department pursuant to the Tax Acts
to the Build Illinois Fund; | 26 | | provided, however, that any amounts paid to the
Build Illinois |
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| 1 | | Fund in any fiscal year pursuant to this sentence shall be
| 2 | | deemed to constitute payments pursuant to clause (b) of the | 3 | | preceding
sentence and shall reduce the amount otherwise | 4 | | payable for such fiscal year
pursuant to clause (b) of the | 5 | | preceding sentence. The moneys received by
the Department | 6 | | pursuant to this Act and required to be deposited into the
| 7 | | Build Illinois Fund are subject to the pledge, claim and charge | 8 | | set forth
in Section 12 of the Build Illinois Bond Act. | 9 | | Subject to payment of amounts into the Build Illinois Fund | 10 | | as provided in
the preceding paragraph or in any amendment | 11 | | thereto hereafter enacted, the
following specified monthly | 12 | | installment of the amount requested in the
certificate of the | 13 | | Chairman of the Metropolitan Pier and Exposition
Authority | 14 | | provided under Section 8.25f of the State Finance Act, but not | 15 | | in
excess of the sums designated as "Total Deposit", shall be
| 16 | | deposited in the aggregate from collections under Section 9 of | 17 | | the Use Tax
Act, Section 9 of the Service Use Tax Act, Section | 18 | | 9 of the Service
Occupation Tax Act, and Section 3 of the | 19 | | Retailers' Occupation Tax Act into
the McCormick Place | 20 | | Expansion Project Fund in the specified fiscal years. | |
21 | | Fiscal Year | | Total Deposit | |
22 | | 1993 | | $0 | |
23 | | 1994 | | 53,000,000 | |
24 | | 1995 | | 58,000,000 | |
25 | | 1996 | | 61,000,000 | |
26 | | 1997 | | 64,000,000 | |
|
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| 1 | | 1998 | | 68,000,000 | |
2 | | 1999 | | 71,000,000 | |
3 | | 2000 | | 75,000,000 | |
4 | | 2001 | | 80,000,000 | |
5 | | 2002 | | 93,000,000 | |
6 | | 2003 | | 99,000,000 | |
7 | | 2004 | | 103,000,000 | |
8 | | 2005 | | 108,000,000 | |
9 | | 2006 | | 113,000,000 | |
10 | | 2007 | | 119,000,000 | |
11 | | 2008 | | 126,000,000 | |
12 | | 2009 | | 132,000,000 | |
13 | | 2010 | | 139,000,000 | |
14 | | 2011 | | 146,000,000 | |
15 | | 2012 | | 153,000,000 | |
16 | | 2013 | | 161,000,000 | |
17 | | 2014 | | 170,000,000 | |
18 | | 2015 | | 179,000,000 | |
19 | | 2016 | | 189,000,000 | |
20 | | 2017 | | 199,000,000 | |
21 | | 2018 | | 210,000,000 | |
22 | | 2019 | | 221,000,000 | |
23 | | 2020 | | 233,000,000 | |
24 | | 2021 | | 246,000,000 | |
25 | | 2022 | | 260,000,000 | |
26 | | 2023 | | 275,000,000 | |
|
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| 1 | | 2024 | | 275,000,000 | |
2 | | 2025 | | 275,000,000 | |
3 | | 2026 | | 279,000,000 | |
4 | | 2027 | | 292,000,000 | |
5 | | 2028 | | 307,000,000 | |
6 | | 2029 | | 322,000,000 | |
7 | | 2030 | | 338,000,000 | |
8 | | 2031 | | 350,000,000 | |
9 | | 2032 | | 350,000,000 | |
10 | | and | | |
|
11 | | each fiscal year | | |
|
12 | | thereafter that bonds | | |
|
13 | | are outstanding under | | |
|
14 | | Section 13.2 of the | | |
|
15 | | Metropolitan Pier and | | |
|
16 | | Exposition Authority Act, | | |
|
17 | | but not after fiscal year 2060. | | |
| 18 | | Beginning July 20, 1993 and in each month of each fiscal | 19 | | year thereafter,
one-eighth of the amount requested in the | 20 | | certificate of the Chairman of
the Metropolitan Pier and | 21 | | Exposition Authority for that fiscal year, less
the amount | 22 | | deposited into the McCormick Place Expansion Project Fund by | 23 | | the
State Treasurer in the respective month under subsection | 24 | | (g) of Section 13
of the Metropolitan Pier and Exposition | 25 | | Authority Act, plus cumulative
deficiencies in the deposits | 26 | | required under this Section for previous
months and years, |
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| 1 | | shall be deposited into the McCormick Place Expansion
Project | 2 | | Fund, until the full amount requested for the fiscal year, but | 3 | | not
in excess of the amount specified above as "Total Deposit", | 4 | | has been deposited. | 5 | | Subject to payment of amounts into the Build Illinois Fund | 6 | | and the
McCormick Place Expansion Project Fund pursuant to the | 7 | | preceding paragraphs or
in any amendments thereto
hereafter | 8 | | enacted,
beginning July 1, 1993 and ending on September 30, | 9 | | 2013, the Department shall each month pay into the Illinois
Tax | 10 | | Increment Fund 0.27% of 80% of the net revenue realized for the | 11 | | preceding
month from the 6.25% general rate on the selling | 12 | | price of tangible personal
property. | 13 | | Subject to payment of amounts into the Build Illinois Fund | 14 | | and the
McCormick Place Expansion Project Fund pursuant to the | 15 | | preceding paragraphs or in any
amendments thereto hereafter | 16 | | enacted, beginning with the receipt of the first
report of | 17 | | taxes paid by an eligible business and continuing for a 25-year
| 18 | | period, the Department shall each month pay into the Energy | 19 | | Infrastructure
Fund 80% of the net revenue realized from the | 20 | | 6.25% general rate on the
selling price of Illinois-mined coal | 21 | | that was sold to an eligible business.
For purposes of this | 22 | | paragraph, the term "eligible business" means a new
electric | 23 | | generating facility certified pursuant to Section 605-332 of | 24 | | the
Department of Commerce and
Economic Opportunity Law of the | 25 | | Civil Administrative
Code of Illinois. | 26 | | Subject to payment of amounts into the Build Illinois Fund, |
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| 1 | | the McCormick Place Expansion Project Fund, the Illinois Tax | 2 | | Increment Fund, and the Energy Infrastructure Fund pursuant to | 3 | | the preceding paragraphs or in any amendments to this Section | 4 | | hereafter enacted, beginning on the first day of the first | 5 | | calendar month to occur on or after the effective date of this | 6 | | amendatory Act of the 98th General Assembly, each month, from | 7 | | the collections made under Section 9 of the Use Tax Act, | 8 | | Section 9 of the Service Use Tax Act, Section 9 of the Service | 9 | | Occupation Tax Act, and Section 3 of the Retailers' Occupation | 10 | | Tax Act, the Department shall pay into the Tax Compliance and | 11 | | Administration Fund, to be used, subject to appropriation, to | 12 | | fund additional auditors and compliance personnel at the | 13 | | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | 14 | | the cash receipts collected during the preceding fiscal year by | 15 | | the Audit Bureau of the Department under the Use Tax Act, the | 16 | | Service Use Tax Act, the Service Occupation Tax Act, the | 17 | | Retailers' Occupation Tax Act, and associated local occupation | 18 | | and use taxes administered by the Department. | 19 | | Of the remainder of the moneys received by the Department | 20 | | pursuant
to this Act, 75% thereof shall be paid into the State | 21 | | Treasury and 25%
shall be reserved in a special account and | 22 | | used only for the transfer to
the Common School Fund as part of | 23 | | the monthly transfer from the General
Revenue Fund in | 24 | | accordance with Section 8a of the State
Finance Act. | 25 | | As soon as possible after the first day of each month, upon | 26 | | certification
of the Department of Revenue, the Comptroller |
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| 1 | | shall order transferred and
the Treasurer shall transfer from | 2 | | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | 3 | | equal to 1.7% of 80% of the net revenue realized
under this Act | 4 | | for the second preceding month.
Beginning April 1, 2000, this | 5 | | transfer is no longer required
and shall not be made. | 6 | | Net revenue realized for a month shall be the revenue | 7 | | collected
by the State pursuant to this Act, less the amount | 8 | | paid out during that
month as refunds to taxpayers for | 9 | | overpayment of liability. | 10 | | For greater simplicity of administration, manufacturers, | 11 | | importers
and wholesalers whose products are sold at retail in | 12 | | Illinois by
numerous retailers, and who wish to do so, may | 13 | | assume the responsibility
for accounting and paying to the | 14 | | Department all tax accruing under this
Act with respect to such | 15 | | sales, if the retailers who are affected do not
make written | 16 | | objection to the Department to this arrangement. | 17 | | References in this Section to "retailers" also include | 18 | | marketplace providers and referrers that are required to | 19 | | collect and remit the tax under this Act. | 20 | | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | 21 | | 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff. | 22 | | 8-26-14; 99-352, eff. 8-12-15.) | 23 | | Section 10. The Service Use Tax Act is amended by changing | 24 | | Sections 2, 3-40, 6, 8, and 9 and by adding Section 3-43 as | 25 | | follows:
|
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| 1 | | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| 2 | | Sec. 2. Definitions. | 3 | | "Use" means the exercise by any person of any right or | 4 | | power
over tangible personal property incident to the ownership | 5 | | of that
property, but does not include the sale or use for | 6 | | demonstration by him
of that property in any form as tangible | 7 | | personal property in the
regular course of business.
"Use" does | 8 | | not mean the interim
use of
tangible personal property nor the | 9 | | physical incorporation of tangible
personal property, as an | 10 | | ingredient or constituent, into other tangible
personal | 11 | | property, (a) which is sold in the regular course of business
| 12 | | or (b) which the person incorporating such ingredient or | 13 | | constituent
therein has undertaken at the time of such purchase | 14 | | to cause to be
transported in interstate commerce to | 15 | | destinations outside the State of
Illinois.
| 16 | | "Purchased from a serviceman" means the acquisition of the | 17 | | ownership
of, or title to, tangible personal property through a | 18 | | sale of service.
| 19 | | "Purchaser" means any person who, through a sale of | 20 | | service, acquires
the ownership of, or title to, any tangible | 21 | | personal property.
| 22 | | "Cost price" means the consideration paid by the serviceman | 23 | | for a
purchase valued in money, whether paid in money or | 24 | | otherwise, including
cash, credits and services, and shall be | 25 | | determined without any
deduction on account of the supplier's |
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| 1 | | cost of the property sold or on
account of any other expense | 2 | | incurred by the supplier. When a serviceman
contracts out part | 3 | | or all of the services required in his sale of service,
it | 4 | | shall be presumed that the cost price to the serviceman of the | 5 | | property
transferred to him or her by his or her subcontractor | 6 | | is equal to 50% of
the subcontractor's charges to the | 7 | | serviceman in the absence of proof of
the consideration paid by | 8 | | the subcontractor for the purchase of such property.
| 9 | | "Selling price" means the consideration for a sale valued | 10 | | in money
whether received in money or otherwise, including | 11 | | cash, credits and
service, and shall be determined without any | 12 | | deduction on account of the
serviceman's cost of the property | 13 | | sold, the cost of materials used,
labor or service cost or any | 14 | | other expense whatsoever, but does not
include interest or | 15 | | finance charges which appear as separate items on
the bill of | 16 | | sale or sales contract nor charges that are added to prices
by | 17 | | sellers on account of the seller's duty to collect, from the
| 18 | | purchaser, the tax that is imposed by this Act.
| 19 | | "Department" means the Department of Revenue.
| 20 | | "Person" means any natural individual, firm, partnership,
| 21 | | association, joint stock company, joint venture, public or | 22 | | private
corporation, limited liability company, and any | 23 | | receiver, executor, trustee,
guardian or other representative | 24 | | appointed by order of any court.
| 25 | | "Sale of service" means any transaction except:
| 26 | | (1) a retail sale of tangible personal property taxable |
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| 1 | | under the
Retailers' Occupation Tax Act or under the Use | 2 | | Tax Act.
| 3 | | (2) a sale of tangible personal property for the | 4 | | purpose of resale
made in compliance with Section 2c of the | 5 | | Retailers' Occupation Tax Act.
| 6 | | (3) except as hereinafter provided, a sale or transfer | 7 | | of tangible
personal property as an incident to the | 8 | | rendering of service for or by
any governmental body, or | 9 | | for or by any corporation, society,
association, | 10 | | foundation or institution organized and operated
| 11 | | exclusively for charitable, religious or educational | 12 | | purposes or any
not-for-profit corporation, society, | 13 | | association, foundation,
institution or organization which | 14 | | has no compensated officers or
employees and which is | 15 | | organized and operated primarily for the
recreation of | 16 | | persons 55 years of age or older. A limited liability | 17 | | company
may qualify for the exemption under this paragraph | 18 | | only if the limited
liability company is organized and | 19 | | operated exclusively for educational
purposes.
| 20 | | (4) a sale or transfer of tangible personal
property as | 21 | | an incident to the
rendering of service for interstate | 22 | | carriers for hire for use as rolling stock
moving in | 23 | | interstate commerce or by lessors under a lease of one year | 24 | | or
longer, executed or in effect at the time of purchase of | 25 | | personal property, to
interstate carriers for hire for use | 26 | | as rolling stock moving in interstate
commerce so long as |
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| 1 | | so used by such interstate carriers for hire, and equipment
| 2 | | operated by a telecommunications provider, licensed as a | 3 | | common carrier by the
Federal Communications Commission, | 4 | | which is permanently installed in or affixed
to aircraft | 5 | | moving in interstate commerce.
| 6 | | (4a) a sale or transfer of tangible personal
property | 7 | | as an incident
to the rendering of service for owners, | 8 | | lessors, or shippers of tangible
personal property which is | 9 | | utilized by interstate carriers for hire for
use as rolling | 10 | | stock moving in interstate commerce so long as so used by
| 11 | | interstate carriers for hire, and equipment operated by a
| 12 | | telecommunications provider, licensed as a common carrier | 13 | | by the Federal
Communications Commission, which is | 14 | | permanently installed in or affixed to
aircraft moving in | 15 | | interstate commerce.
| 16 | | (4a-5) on and after July 1, 2003 and through June 30, | 17 | | 2004, a sale or transfer of a motor vehicle
of
the
second | 18 | | division with a gross vehicle weight in excess of 8,000 | 19 | | pounds as an
incident to the rendering of service if that | 20 | | motor
vehicle is subject
to the commercial distribution fee | 21 | | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | 22 | | Beginning on July 1, 2004 and through June 30, 2005, the | 23 | | use in this State of motor vehicles of the second division: | 24 | | (i) with a gross vehicle weight rating in excess of 8,000 | 25 | | pounds; (ii) that are subject to the commercial | 26 | | distribution fee imposed under Section 3-815.1 of the |
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| 1 | | Illinois Vehicle Code; and (iii) that are primarily used | 2 | | for commercial purposes. Through June 30, 2005, this
| 3 | | exemption applies to repair and replacement parts added | 4 | | after the
initial
purchase of such a motor vehicle if that | 5 | | motor vehicle is used in a manner that
would
qualify for | 6 | | the rolling stock exemption otherwise provided for in this | 7 | | Act. For purposes of this paragraph, "used for commercial | 8 | | purposes" means the transportation of persons or property | 9 | | in furtherance of any commercial or industrial enterprise | 10 | | whether for-hire or not.
| 11 | | (5) a sale or transfer of machinery and equipment used | 12 | | primarily in the
process of the manufacturing or | 13 | | assembling, either in an existing, an expanded
or a new | 14 | | manufacturing facility, of tangible personal property for | 15 | | wholesale or
retail sale or lease, whether such sale or | 16 | | lease is made directly by the
manufacturer or by some other | 17 | | person, whether the materials used in the process
are owned | 18 | | by the manufacturer or some other person, or whether such | 19 | | sale or
lease is made apart from or as an incident to the | 20 | | seller's engaging in a
service occupation and the | 21 | | applicable tax is a Service Use Tax or Service
Occupation | 22 | | Tax, rather than Use Tax or Retailers' Occupation Tax. The | 23 | | exemption provided by this paragraph (5) does not include | 24 | | machinery and equipment used in (i) the generation of | 25 | | electricity for wholesale or retail sale; (ii) the | 26 | | generation or treatment of natural or artificial gas for |
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| 1 | | wholesale or retail sale that is delivered to customers | 2 | | through pipes, pipelines, or mains; or (iii) the treatment | 3 | | of water for wholesale or retail sale that is delivered to | 4 | | customers through pipes, pipelines, or mains. The | 5 | | provisions of this amendatory Act of the 98th General | 6 | | Assembly are declaratory of existing law as to the meaning | 7 | | and scope of this exemption.
| 8 | | (5a) the repairing, reconditioning or remodeling, for | 9 | | a
common carrier by rail, of tangible personal property | 10 | | which belongs to such
carrier for hire, and as to which | 11 | | such carrier receives the physical possession
of the | 12 | | repaired, reconditioned or remodeled item of tangible | 13 | | personal property
in Illinois, and which such carrier | 14 | | transports, or shares with another common
carrier in the | 15 | | transportation of such property, out of Illinois on a | 16 | | standard
uniform bill of lading showing the person who | 17 | | repaired, reconditioned or
remodeled the property to a | 18 | | destination outside Illinois, for use outside
Illinois.
| 19 | | (5b) a sale or transfer of tangible personal property | 20 | | which is produced by
the seller thereof on special order in | 21 | | such a way as to have made the
applicable tax the Service | 22 | | Occupation Tax or the Service Use Tax, rather than
the | 23 | | Retailers' Occupation Tax or the Use Tax, for an interstate | 24 | | carrier by rail
which receives the physical possession of | 25 | | such property in Illinois, and which
transports such | 26 | | property, or shares with another common carrier in the
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| 1 | | transportation of such property, out of Illinois on a | 2 | | standard uniform bill of
lading showing the seller of the | 3 | | property as the shipper or consignor of such
property to a | 4 | | destination outside Illinois, for use outside Illinois.
| 5 | | (6) until July 1, 2003, a sale or transfer of | 6 | | distillation machinery
and equipment, sold
as a unit or kit | 7 | | and assembled or installed by the retailer, which
machinery | 8 | | and equipment is certified by the user to be used only for | 9 | | the
production of ethyl alcohol that will be used for | 10 | | consumption as motor fuel
or as a component of motor fuel | 11 | | for the personal use of such user and not
subject to sale | 12 | | or resale.
| 13 | | (7) at the election of any serviceman not required to | 14 | | be
otherwise registered as a retailer under Section 2a of | 15 | | the Retailers'
Occupation Tax Act, made for each fiscal | 16 | | year sales
of service in which the aggregate annual cost | 17 | | price of tangible
personal property transferred as an | 18 | | incident to the sales of service is
less than 35%, or 75% | 19 | | in the case of servicemen transferring prescription
drugs | 20 | | or servicemen engaged in graphic arts production, of the | 21 | | aggregate
annual total gross receipts from all sales of | 22 | | service. The purchase of
such tangible personal property by | 23 | | the serviceman shall be subject to tax
under the Retailers' | 24 | | Occupation Tax Act and the Use Tax Act.
However, if a
| 25 | | primary serviceman who has made the election described in | 26 | | this paragraph
subcontracts service work to a secondary |
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| 1 | | serviceman who has also made the
election described in this | 2 | | paragraph, the primary serviceman does not
incur a Use Tax | 3 | | liability if the secondary serviceman (i) has paid or will | 4 | | pay
Use
Tax on his or her cost price of any tangible | 5 | | personal property transferred
to the primary serviceman | 6 | | and (ii) certifies that fact in writing to the
primary
| 7 | | serviceman.
| 8 | | Tangible personal property transferred incident to the | 9 | | completion of a
maintenance agreement is exempt from the tax | 10 | | imposed pursuant to this Act.
| 11 | | Exemption (5) also includes machinery and equipment used in | 12 | | the general
maintenance or repair of such exempt machinery and | 13 | | equipment or for in-house
manufacture of exempt machinery and | 14 | | equipment. The machinery and equipment exemption does not | 15 | | include machinery and equipment used in (i) the generation of | 16 | | electricity for wholesale or retail sale; (ii) the generation | 17 | | or treatment of natural or artificial gas for wholesale or | 18 | | retail sale that is delivered to customers through pipes, | 19 | | pipelines, or mains; or (iii) the treatment of water for | 20 | | wholesale or retail sale that is delivered to customers through | 21 | | pipes, pipelines, or mains. The provisions of this amendatory | 22 | | Act of the 98th General Assembly are declaratory of existing | 23 | | law as to the meaning and scope of this exemption. For the | 24 | | purposes of exemption
(5), each of these terms shall have the | 25 | | following meanings: (1) "manufacturing
process" shall mean the | 26 | | production of any article of tangible personal
property, |
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| 1 | | whether such article is a finished product or an article for | 2 | | use in
the process of manufacturing or assembling a different | 3 | | article of tangible
personal property, by procedures commonly | 4 | | regarded as manufacturing,
processing, fabricating, or | 5 | | refining which changes some existing
material or materials into | 6 | | a material with a different form, use or
name. In relation to a | 7 | | recognized integrated business composed of a
series of | 8 | | operations which collectively constitute manufacturing, or
| 9 | | individually constitute manufacturing operations, the | 10 | | manufacturing
process shall be deemed to commence with the | 11 | | first operation or stage of
production in the series, and shall | 12 | | not be deemed to end until the
completion of the final product | 13 | | in the last operation or stage of
production in the series; and | 14 | | further, for purposes of exemption (5),
photoprocessing is | 15 | | deemed to be a manufacturing process of tangible
personal | 16 | | property for wholesale or retail sale; (2) "assembling process" | 17 | | shall
mean the production of any article of tangible personal | 18 | | property, whether such
article is a finished product or an | 19 | | article for use in the process of
manufacturing or assembling a | 20 | | different article of tangible personal
property, by the | 21 | | combination of existing materials in a manner commonly
regarded | 22 | | as assembling which results in a material of a different form,
| 23 | | use or name; (3) "machinery" shall mean major mechanical | 24 | | machines or
major components of such machines contributing to a | 25 | | manufacturing or
assembling process; and (4) "equipment" shall | 26 | | include any independent
device or tool separate from any |
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| 1 | | machinery but essential to an
integrated manufacturing or | 2 | | assembly process; including computers
used primarily in a | 3 | | manufacturer's computer
assisted design, computer assisted | 4 | | manufacturing (CAD/CAM) system;
or any subunit or assembly | 5 | | comprising a component of any machinery or
auxiliary, adjunct | 6 | | or attachment parts of machinery, such as tools, dies,
jigs, | 7 | | fixtures, patterns and molds; or any parts which require | 8 | | periodic
replacement in the course of normal operation; but | 9 | | shall not include hand
tools.
Equipment includes chemicals or | 10 | | chemicals acting as catalysts but only if the
chemicals or | 11 | | chemicals acting as catalysts effect a direct and immediate | 12 | | change
upon a
product being manufactured or assembled for | 13 | | wholesale or retail sale or
lease.
The purchaser of such | 14 | | machinery and equipment who has an active
resale registration | 15 | | number shall furnish such number to the seller at the
time of | 16 | | purchase. The user of such machinery and equipment and tools
| 17 | | without an active resale registration number shall prepare a | 18 | | certificate of
exemption for each transaction stating facts | 19 | | establishing the exemption for
that transaction, which | 20 | | certificate shall be available to the Department
for inspection | 21 | | or audit. The Department shall prescribe the form of the
| 22 | | certificate.
| 23 | | Any informal rulings, opinions or letters issued by the | 24 | | Department in
response to an inquiry or request for any opinion | 25 | | from any person
regarding the coverage and applicability of | 26 | | exemption (5) to specific
devices shall be published, |
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| 1 | | maintained as a public record, and made
available for public | 2 | | inspection and copying. If the informal ruling,
opinion or | 3 | | letter contains trade secrets or other confidential
| 4 | | information, where possible the Department shall delete such | 5 | | information
prior to publication. Whenever such informal | 6 | | rulings, opinions, or
letters contain any policy of general | 7 | | applicability, the Department
shall formulate and adopt such | 8 | | policy as a rule in accordance with the
provisions of the | 9 | | Illinois Administrative Procedure Act.
| 10 | | On and after July 1, 1987, no entity otherwise eligible | 11 | | under exemption
(3) of this Section shall make tax free | 12 | | purchases unless it has an active
exemption identification | 13 | | number issued by the Department.
| 14 | | The purchase, employment and transfer of such tangible | 15 | | personal
property as newsprint and ink for the primary purpose | 16 | | of conveying news
(with or without other information) is not a | 17 | | purchase, use or sale of
service or of tangible personal | 18 | | property within the meaning of this Act.
| 19 | | "Serviceman" means any person who is engaged in the | 20 | | occupation of
making sales of service.
| 21 | | "Sale at retail" means "sale at retail" as defined in the | 22 | | Retailers'
Occupation Tax Act.
| 23 | | "Supplier" means any person who makes sales of tangible | 24 | | personal
property to servicemen for the purpose of resale as an | 25 | | incident to a
sale of service.
| 26 | | "Serviceman maintaining a place of business in this State", |
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| 1 | | or any
like term, means a serviceman who engages in the | 2 | | following acts or methods of transacting business in this State | 3 | | on a regular or systematic basis: | 4 | | (1) maintaining within this State, directly, | 5 | | indirectly, or by an affiliate, an office, distribution | 6 | | facility, sales room, warehouse, storage place, or other | 7 | | similar place of business, including the employment of a | 8 | | resident of this State who works from a home office in this | 9 | | State on a regular or systematic basis; | 10 | | (2) engaging in, either directly or indirectly through | 11 | | a marketplace provider, referrer, or other third party, | 12 | | direct response marketing targeted at consumers in this | 13 | | State; for the purposes of this item (2), "direct response | 14 | | marketing" includes, but is not limited to: | 15 | | (A) sending, transmitting, or broadcasting of | 16 | | flyers, newsletters, telephone calls, targeted | 17 | | electronic mail, text messages, social media messages, | 18 | | targeted mailings; | 19 | | (B) collecting analyzing, and utilizing individual | 20 | | data on purchasers or potential purchasers in this | 21 | | State; | 22 | | (C) using information or software, including | 23 | | cached files, cached software, "cookies", or other | 24 | | data tracking tools, that are stored on property | 25 | | located in or distributed within this State; or | 26 | | (D) conducting any other actions that use persons, |
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| 1 | | tangible property, intangible property, digital files, | 2 | | or information, or software in this State in an effort | 3 | | to enhance the probability that a person's contacts | 4 | | with a customer in this State will result in a sale to | 5 | | that customer; | 6 | | (3) entering into one or more agreements under which a | 7 | | person or persons who have nexus with this State under the | 8 | | Commerce Clause of the United States Constitution directly | 9 | | or indirectly refer potential purchasers of products to the | 10 | | seller for a commission or other consideration, whether by | 11 | | an Internet-based link, an Internet website, or otherwise; | 12 | | the activities described in this paragraph (3) constitute | 13 | | "maintaining a place of business in this State" regardless | 14 | | of whether or not the referral is related to the sale of | 15 | | tangible personal property; an agreement under which a | 16 | | seller purchases advertisements from a person or persons in | 17 | | this State to be delivered on television, radio, in print, | 18 | | on the Internet, or by any other medium, is not an | 19 | | agreement described in this paragraph unless the | 20 | | advertising revenue paid to the person or persons in this | 21 | | State consists of commissions or other consideration that | 22 | | is based in whole or in part upon sales of products; this | 23 | | paragraph does not apply to an agreement if the seller can | 24 | | demonstrate that no person in this State with whom the | 25 | | seller has an agreement engaged in referral activity in | 26 | | this State on behalf of the seller that would satisfy the |
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| 1 | | requirements of the Commerce Clause of the United States | 2 | | Constitution, provided that the seller must: | 3 | | (A) be able to demonstrate that each in-State | 4 | | person with whom the seller has an agreement is | 5 | | prohibited from engaging in any solicitation | 6 | | activities in this State that refer potential | 7 | | customers to the seller; and | 8 | | (B) obtain annually a certification from each such | 9 | | in-State person that the person has complied with the | 10 | | prohibition stated in paragraph (A); or | 11 | | (4) the seller offers its products for sale through one | 12 | | or more marketplaces operated by a marketplace provider | 13 | | that has substantial nexus with the State. | 14 | | A serviceman is presumed to be "maintaining a place of | 15 | | business in this State" if any part of the sales process occurs | 16 | | in the State, including listing products for sale, soliciting | 17 | | sales, branding products, selling products, processing orders, | 18 | | filling orders, providing customer service, or accepting or | 19 | | assisting with returns or exchanges, regardless of whether that | 20 | | part of the process has been subcontracted to an affiliate or | 21 | | third party. The sales process does not include shipping via a | 22 | | common carrier. | 23 | | A serviceman is also presumed to be "maintaining a place of | 24 | | business in this State" if the serviceman's total gross | 25 | | receipts from sales occurring in Illinois in the previous | 26 | | calendar year is $1,000,000 or more. A serviceman that is |
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| 1 | | presumed to be "maintaining a place of business in this State" | 2 | | under this paragraph must collect and remit the tax imposed | 3 | | under this Act unless it can prove that it does not have nexus | 4 | | with this State under the Commerce Clause of the United States | 5 | | Constitution. | 6 | | A serviceman is also presumed to be "maintaining a place of | 7 | | business in this State" if the serviceman is related to a | 8 | | person that has nexus under the Commerce Clause with this | 9 | | State, and that related person: | 10 | | (1) sells under the same or a similar business name | 11 | | tangible personal property similar to that sold by the | 12 | | person against whom the presumption is asserted; | 13 | | (2) maintains an office, distribution facility, | 14 | | salesroom, warehouse, storage place, or other similar | 15 | | place of business in this State to facilitate the delivery | 16 | | of tangible personal property or sold by the person against | 17 | | whom the presumption is asserted to such person's in-state | 18 | | customers; | 19 | | (3) uses, with consent or knowledge of the person | 20 | | against whom the presumption is asserted, trademarks, | 21 | | service marks, or trade names in this State that are the | 22 | | same or substantially similar to those used by the person | 23 | | against whom the presumption is asserted; | 24 | | (4) delivers, installs, or assembles tangible personal | 25 | | property in this State, or performs maintenance or repair | 26 | | services on tangible personal property in this State, which |
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| 1 | | tangible personal property is sold to in-State customers by | 2 | | the person against whom the presumption is asserted; | 3 | | (5) facilitates the delivery of tangible personal | 4 | | property to in-State customers of the person against whom | 5 | | the presumption is asserted by allowing those customers to | 6 | | pick up tangible personal property sold by the person at an | 7 | | office, distribution facility, salesroom, warehouse, | 8 | | storage place, or other similar place of business | 9 | | maintained in this State; or | 10 | | (6) shares management, business systems, business | 11 | | practices, or employees with the person against whom the | 12 | | presumption is asserted, or engages in intercompany | 13 | | transactions with the person against whom the presumption | 14 | | is asserted related to the activities that establish or | 15 | | maintain the market in this State of the person against | 16 | | whom the presumption is asserted. | 17 | | "Marketplace provider" means a person who facilitates a | 18 | | retail sale by a serviceman. For purposes of this definition, a | 19 | | marketplace provider facilitates a retail sale when the | 20 | | marketplace provider both (i) lists or advertises tangible | 21 | | personal property for sale in any forum, including a catalog or | 22 | | Internet website and (ii) either directly or indirectly through | 23 | | agreements or arrangements with third parties collects sales | 24 | | receipts from the customer and transmits those
receipts to a | 25 | | retailer, whether or not the marketplace provider deducts any | 26 | | fees from the transmission of those receipts to the retailer. |
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| 1 | | The Department may adopt rules that further clarify when a | 2 | | marketplace provider facilitates a retail sale. | 3 | | and includes any serviceman:
| 4 | | 1. having or maintaining within this State, directly or | 5 | | by a
subsidiary, an office, distribution house, sales | 6 | | house, warehouse or
other place of business, or any agent | 7 | | or other representative operating
within this State under | 8 | | the authority of the serviceman or its
subsidiary, | 9 | | irrespective of whether such place of business or agent or
| 10 | | other representative is located here permanently or | 11 | | temporarily, or
whether such serviceman or subsidiary is | 12 | | licensed to do business in this
State; | 13 | | 1.1. having a contract with a person located in this | 14 | | State under which the person, for a commission or other | 15 | | consideration based on the sale of service by the | 16 | | serviceman, directly or indirectly refers potential | 17 | | customers to the serviceman by providing to the potential | 18 | | customers a promotional code or other mechanism that allows | 19 | | the serviceman to track purchases referred by such persons. | 20 | | Examples of mechanisms that allow the serviceman to track | 21 | | purchases referred by such persons include but are not | 22 | | limited to the use of a link on the person's Internet | 23 | | website, promotional codes distributed through the | 24 | | person's hand-delivered or mailed material, and | 25 | | promotional codes distributed by the person through radio | 26 | | or other broadcast media. The provisions of this paragraph |
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| 1 | | 1.1 shall apply only if the cumulative gross receipts from | 2 | | sales of service by the serviceman to customers who are | 3 | | referred to the serviceman by all persons in this State | 4 | | under such contracts exceed $10,000 during the preceding 4 | 5 | | quarterly periods ending on the last day of March, June, | 6 | | September, and December; a serviceman meeting the | 7 | | requirements of this paragraph 1.1 shall be presumed to be | 8 | | maintaining a place of business in this State but may rebut | 9 | | this presumption by submitting proof that the referrals or | 10 | | other activities pursued within this State by such persons | 11 | | were not sufficient to meet the nexus standards of the | 12 | | United States Constitution during the preceding 4 | 13 | | quarterly periods; | 14 | | 1.2. beginning July 1, 2011, having a contract with a | 15 | | person located in this State under which: | 16 | | A. the serviceman sells the same or substantially | 17 | | similar line of services as the person located in this | 18 | | State and does so using an identical or substantially | 19 | | similar name, trade name, or trademark as the person | 20 | | located in this State; and | 21 | | B. the serviceman provides a commission or other | 22 | | consideration to the person located in this State based | 23 | | upon the sale of services by the serviceman. | 24 | | The provisions of this paragraph 1.2 shall apply only if | 25 | | the cumulative gross receipts from sales of service by the | 26 | | serviceman to customers in this State under all such |
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| 1 | | contracts exceed $10,000 during the preceding 4 quarterly | 2 | | periods ending on the last day of March, June, September, | 3 | | and December;
| 4 | | 2. soliciting orders for tangible personal property by | 5 | | means of a
telecommunication or television shopping system | 6 | | (which utilizes toll free
numbers) which is intended by the | 7 | | retailer to be broadcast by cable
television or other means | 8 | | of broadcasting, to consumers located in this State;
| 9 | | 3. pursuant to a contract with a broadcaster or | 10 | | publisher located in this
State, soliciting orders for | 11 | | tangible personal property by means of advertising
which is | 12 | | disseminated primarily to consumers located in this State | 13 | | and only
secondarily to bordering jurisdictions;
| 14 | | 4. soliciting orders for tangible personal property by | 15 | | mail if the
solicitations are substantial and recurring and | 16 | | if the retailer benefits
from any banking, financing, debt | 17 | | collection, telecommunication, or
marketing activities | 18 | | occurring in this State or benefits from the location
in | 19 | | this State of authorized installation, servicing, or | 20 | | repair facilities;
| 21 | | 5. being owned or controlled by the same interests | 22 | | which own or
control any retailer engaging in business in | 23 | | the same or similar line of
business in this State;
| 24 | | 6. having a franchisee or licensee operating under its | 25 | | trade name if
the franchisee or licensee is required to | 26 | | collect the tax under this Section;
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| 1 | | 7. pursuant to a contract with a cable television | 2 | | operator located in
this State, soliciting orders for | 3 | | tangible personal property by means of
advertising which is | 4 | | transmitted or distributed over a cable television
system | 5 | | in this State; or
| 6 | | 8. engaging in activities in Illinois, which | 7 | | activities in the
state in which the supply business | 8 | | engaging in such activities is located
would constitute | 9 | | maintaining a place of business in that state.
| 10 | | (Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
| 11 | | (35 ILCS 110/3-40) (from Ch. 120, par. 439.33-40)
| 12 | | Sec. 3-40. Collection. The tax imposed by this Act
shall be | 13 | | collected at the time of purchase in
the manner prescribed by | 14 | | the Department from the user by a serviceman
maintaining a | 15 | | place of business in this State or by a serviceman authorized
| 16 | | by the Department under Section 7 of this Act, and the tax | 17 | | shall be
remitted to the Department as provided in Section 9
of | 18 | | this Act.
| 19 | | A marketplace provider maintaining a place of business in | 20 | | this State is required to collect and remit the tax imposed | 21 | | under this Act on any sales facilitated by a marketplace | 22 | | provider to a customer in this State. However, no marketplace | 23 | | provider is required to collect and remit the tax imposed on a | 24 | | sale between a serviceman and a customer in this State if (i) | 25 | | the serviceman provides to the marketplace provider a copy of |
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| 1 | | his or her certificate of registration under this Act, the Use | 2 | | Tax Act, the Service Occupation Tax Act, or the Retailers' | 3 | | Occupation Tax Act or (ii) the serviceman appears on a list | 4 | | published by the Department of the entities registered to | 5 | | collect use and occupation taxes in this State. The Department | 6 | | shall adopt rules regarding the content a publication of the | 7 | | list. Nothing in this Section shall be construed to interfere | 8 | | with the ability of a marketplace provider and a serviceman to | 9 | | enter into agreements with each other regarding fulfillment of | 10 | | the requirements of this
Act. A marketplace provider is | 11 | | relieved of liability under this Section for failure to collect | 12 | | and remit the correct amount of the tax to the extent that the | 13 | | marketplace provider can demonstrate that the error was due to | 14 | | incorrect information given to the marketplace provider by the | 15 | | serviceman; except that the marketplace provider is not | 16 | | relieved of liability if the marketplace provider and the | 17 | | serviceman are related persons. | 18 | | The tax imposed by this Act that is not paid to a
| 19 | | serviceman or a marketplace provider under this Section shall | 20 | | be paid to the Department
directly by any person using the | 21 | | property within this State
as provided in Section 10 of this | 22 | | Act.
| 23 | | If a serviceman or marketplace provider collects Service | 24 | | Use Tax measured by receipts or
selling prices that are not | 25 | | subject to Service Use Tax, or if a
serviceman or marketplace | 26 | | provider , in collecting Service Use Tax measured by receipts or |
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| 1 | | selling
prices that are subject to tax under this Act, collects | 2 | | more from the
purchaser than the required amount of the Service | 3 | | Use Tax on the transaction,
the purchaser shall have a legal | 4 | | right to claim a refund of that amount
from the serviceman or | 5 | | marketplace provider . If, however, that amount is not refunded | 6 | | to the
purchaser for any reason, the serviceman or marketplace | 7 | | provider is liable to pay that amount to
the Department. This | 8 | | paragraph does not apply to an amount collected by
the | 9 | | serviceman or marketplace provider as Service Use Tax on | 10 | | receipts or selling prices that are
subject to tax under this | 11 | | Act as long as the collection is made in
compliance with the | 12 | | tax collection brackets prescribed by the Department
in its | 13 | | rules and regulations.
| 14 | | (Source: P.A. 91-51, eff. 6-30-99.)
| 15 | | (35 ILCS 110/3-43 new) | 16 | | Sec. 3-43. Referrer reporting and registration. A referrer | 17 | | is required to collect and remit the tax imposed under this Act | 18 | | in the manner and under the conditions provided in Section 3-67 | 19 | | of the Use Tax Act.
| 20 | | (35 ILCS 110/6) (from Ch. 120, par. 439.36)
| 21 | | Sec. 6.
A serviceman or marketplace provider maintaining a | 22 | | place of business in this State, if
required to register under | 23 | | the Retailers' Occupation Tax Act, or under
the Use Tax Act, or | 24 | | under the Service Occupation Tax Act, need not
obtain an |
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| 1 | | additional Certificate of Registration under this Act, but | 2 | | shall
be deemed to be sufficiently registered by virtue of his | 3 | | being registered
under the Retailers' Occupation Tax Act, or | 4 | | under the Use Tax Act, or under
the Service Occupation Tax Act. | 5 | | Every serviceman or marketplace provider maintaining a place of
| 6 | | business in this State, if not required to register under the | 7 | | Retailers'
Occupation Tax Act, or under the Use Tax Act, or | 8 | | under the Service
Occupation Tax Act, shall apply to the | 9 | | Department (upon a form prescribed
and furnished by the | 10 | | Department) for a Certificate of Registration under
this Act. | 11 | | In completing such application, the applicant shall furnish | 12 | | such
information as the Department may reasonably require. Upon | 13 | | approval of an
application for Certificate of Registration, the | 14 | | Department shall issue,
without charge, a Certificate of | 15 | | Registration to the applicant. Such
Certificate of | 16 | | Registration shall be displayed at the address which the
| 17 | | applicant states in his application to be the principal place | 18 | | of business
or location from which he will act as a serviceman | 19 | | or marketplace provider in this State. If the
applicant will | 20 | | act as a serviceman or marketplace provider in this State from | 21 | | other places of
business or locations, he shall list the | 22 | | addresses of such additional
places of business or locations in | 23 | | his application for Certificate of
Registration, and the | 24 | | Department shall issue a Sub-Certificate of
Registration to the | 25 | | applicant for each such additional place of business or
| 26 | | location. Each Sub-Certificate of Registration shall be |
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| 1 | | conspicuously
displayed at the place for which it is issued. | 2 | | Such Sub-Certificate of
Registration shall bear the same | 3 | | registration number as that appearing upon
the Certificate of | 4 | | Registration to which such Sub-Certificates relate.
Where a | 5 | | serviceman or marketplace provider operates more than one place | 6 | | of business which is
subject to registration under this Section | 7 | | and such businesses are
substantially different in character or | 8 | | are engaged in under different
trade names or are engaged in | 9 | | under other substantially dissimilar
circumstances (so that it | 10 | | is more practicable, from an accounting, auditing
or | 11 | | bookkeeping standpoint, for such businesses to be separately
| 12 | | registered), the Department may require or permit such person | 13 | | to apply for
and obtain a separate Certificate of Registration | 14 | | for each such business or
for any of such businesses instead of | 15 | | registering such person, as to all
such businesses, under a | 16 | | single Certificate of Registration supplemented by
related | 17 | | Sub-Certificates of Registration. No Certificate of | 18 | | Registration
shall be issued to any person who is in default to | 19 | | the State of Illinois
for moneys due hereunder.
| 20 | | (Source: Laws 1961, p. 1757.)
| 21 | | (35 ILCS 110/8) (from Ch. 120, par. 439.38)
| 22 | | Sec. 8.
Any
serviceman , marketplace provider, or referrer | 23 | | required to collect the tax imposed by this Act
shall be liable | 24 | | to the Department for the tax, whether or not the tax has been
| 25 | | collected by the serviceman , marketplace provider, or |
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| 1 | | referrer , except when the serviceman , marketplace provider, or | 2 | | referrer is relieved of the duty
of remitting the tax to the | 3 | | Department by virtue of having paid a tax imposed
by the | 4 | | Service Occupation Tax Act upon his or her sale of service | 5 | | involving the
incidental transfer by him or her of the same | 6 | | property. To the extent that a
serviceman , marketplace | 7 | | provider, or referrer required to collect the tax imposed by | 8 | | this Act has actually
collected that tax, the tax is held in | 9 | | trust for the benefit of the
Department.
| 10 | | (Source: P.A. 91-203, eff. 7-20-99.)
| 11 | | (35 ILCS 110/9) (from Ch. 120, par. 439.39) | 12 | | Sec. 9. Each serviceman required or authorized to collect | 13 | | the tax
herein imposed shall pay to the Department the amount | 14 | | of such tax
(except as otherwise provided) at the time when he | 15 | | is required to file
his return for the period during which such | 16 | | tax was collected, less a
discount of 2.1% prior to January 1, | 17 | | 1990 and 1.75% on and after January 1,
1990, or $5 per calendar | 18 | | year, whichever is greater, which is allowed to
reimburse the | 19 | | serviceman for expenses incurred in collecting the tax,
keeping | 20 | | records, preparing and filing returns, remitting the tax and
| 21 | | supplying data to the Department on request. The Department may | 22 | | disallow the discount for servicemen whose certificate of | 23 | | registration is revoked at the time the return is filed, but | 24 | | only if the Department's decision to revoke the certificate of | 25 | | registration has become final. A serviceman need not remit
that |
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| 1 | | part of any tax collected by him to the extent that he is | 2 | | required to
pay and does pay the tax imposed by the Service | 3 | | Occupation Tax Act with
respect to his sale of service | 4 | | involving the incidental transfer by him of
the same property. | 5 | | Except as provided hereinafter in this Section, on or | 6 | | before the twentieth
day of each calendar month, such | 7 | | serviceman shall file a return for the
preceding calendar month | 8 | | in accordance with reasonable Rules and
Regulations to be | 9 | | promulgated by the Department. Such return shall be
filed on a | 10 | | form prescribed by the Department and shall contain such
| 11 | | information as the Department may reasonably require. | 12 | | The Department may require returns to be filed on a | 13 | | quarterly basis.
If so required, a return for each calendar | 14 | | quarter shall be filed on or
before the twentieth day of the | 15 | | calendar month following the end of such
calendar quarter. The | 16 | | taxpayer shall also file a return with the
Department for each | 17 | | of the first two months of each calendar quarter, on or
before | 18 | | the twentieth day of the following calendar month, stating: | 19 | | 1. The name of the seller; | 20 | | 2. The address of the principal place of business from | 21 | | which he engages
in business as a serviceman in this State; | 22 | | 3. The total amount of taxable receipts received by him | 23 | | during the
preceding calendar month, including receipts | 24 | | from charge and time sales,
but less all deductions allowed | 25 | | by law; | 26 | | 4. The amount of credit provided in Section 2d of this |
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| 1 | | Act; | 2 | | 5. The amount of tax due; | 3 | | 5-5. The signature of the taxpayer; and | 4 | | 6. Such other reasonable information as the Department | 5 | | may
require. | 6 | | If a taxpayer fails to sign a return within 30 days after | 7 | | the proper notice
and demand for signature by the Department, | 8 | | the return shall be considered
valid and any amount shown to be | 9 | | due on the return shall be deemed assessed. | 10 | | Beginning October 1, 1993, a taxpayer who has an average | 11 | | monthly tax
liability of $150,000 or more shall make all | 12 | | payments required by rules of
the Department by electronic | 13 | | funds transfer. Beginning October 1, 1994, a
taxpayer who has | 14 | | an average monthly tax liability of $100,000 or more shall
make | 15 | | all payments required by rules of the Department by electronic | 16 | | funds
transfer. Beginning October 1, 1995, a taxpayer who has | 17 | | an average monthly
tax liability of $50,000 or more shall make | 18 | | all payments required by rules
of the Department by electronic | 19 | | funds transfer.
Beginning October 1, 2000, a taxpayer who has | 20 | | an annual tax liability of
$200,000 or more shall make all | 21 | | payments required by rules of the Department by
electronic | 22 | | funds transfer. The term "annual tax liability" shall be the | 23 | | sum of
the taxpayer's liabilities under this Act, and under all | 24 | | other State and local
occupation and use tax laws administered | 25 | | by the Department, for the immediately
preceding calendar year.
| 26 | | The term "average monthly tax
liability" means the sum of the |
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| 1 | | taxpayer's liabilities under this Act, and
under all other | 2 | | State and local occupation and use tax laws administered by the
| 3 | | Department, for the immediately preceding calendar year | 4 | | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | 5 | | a tax liability in the
amount set forth in subsection (b) of | 6 | | Section 2505-210 of the Department of
Revenue Law shall make | 7 | | all payments required by rules of the Department by
electronic | 8 | | funds transfer. | 9 | | Before August 1 of each year beginning in 1993, the | 10 | | Department shall
notify all taxpayers required to make payments | 11 | | by electronic funds transfer.
All taxpayers required to make | 12 | | payments by electronic funds transfer shall
make those payments | 13 | | for a minimum of one year beginning on October 1. | 14 | | Any taxpayer not required to make payments by electronic | 15 | | funds transfer
may make payments by electronic funds transfer | 16 | | with the permission of the
Department. | 17 | | All taxpayers required to make payment by electronic funds | 18 | | transfer and
any taxpayers authorized to voluntarily make | 19 | | payments by electronic funds
transfer shall make those payments | 20 | | in the manner authorized by the Department. | 21 | | The Department shall adopt such rules as are necessary to | 22 | | effectuate a
program of electronic funds transfer and the | 23 | | requirements of this Section. | 24 | | If the serviceman is otherwise required to file a monthly | 25 | | return and
if the serviceman's average monthly tax liability to | 26 | | the Department
does not exceed $200, the Department may |
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| 1 | | authorize his returns to be
filed on a quarter annual basis, | 2 | | with the return for January, February
and March of a given year | 3 | | being due by April 20 of such year; with the
return for April, | 4 | | May and June of a given year being due by July 20 of
such year; | 5 | | with the return for July, August and September of a given
year | 6 | | being due by October 20 of such year, and with the return for
| 7 | | October, November and December of a given year being due by | 8 | | January 20
of the following year. | 9 | | If the serviceman is otherwise required to file a monthly | 10 | | or quarterly
return and if the serviceman's average monthly tax | 11 | | liability to the Department
does not exceed $50, the Department | 12 | | may authorize his returns to be
filed on an annual basis, with | 13 | | the return for a given year being due by
January 20 of the | 14 | | following year. | 15 | | Such quarter annual and annual returns, as to form and | 16 | | substance,
shall be subject to the same requirements as monthly | 17 | | returns. | 18 | | Notwithstanding any other provision in this Act concerning | 19 | | the time
within which a serviceman may file his return, in the | 20 | | case of any
serviceman who ceases to engage in a kind of | 21 | | business which makes him
responsible for filing returns under | 22 | | this Act, such serviceman shall
file a final return under this | 23 | | Act with the Department not more than 1
month after | 24 | | discontinuing such business. | 25 | | Where a serviceman collects the tax with respect to the | 26 | | selling price of
property which he sells and the purchaser |
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| 1 | | thereafter returns such
property and the serviceman refunds the | 2 | | selling price thereof to the
purchaser, such serviceman shall | 3 | | also refund, to the purchaser, the tax
so collected from the | 4 | | purchaser. When filing his return for the period
in which he | 5 | | refunds such tax to the purchaser, the serviceman may deduct
| 6 | | the amount of the tax so refunded by him to the purchaser from | 7 | | any other
Service Use Tax, Service Occupation Tax, retailers' | 8 | | occupation tax or
use tax which such serviceman may be required | 9 | | to pay or remit to the
Department, as shown by such return, | 10 | | provided that the amount of the tax
to be deducted shall | 11 | | previously have been remitted to the Department by
such | 12 | | serviceman. If the serviceman shall not previously have | 13 | | remitted
the amount of such tax to the Department, he shall be | 14 | | entitled to no
deduction hereunder upon refunding such tax to | 15 | | the purchaser. | 16 | | Any serviceman filing a return hereunder shall also include | 17 | | the total
tax upon the selling price of tangible personal | 18 | | property purchased for use
by him as an incident to a sale of | 19 | | service, and such serviceman shall remit
the amount of such tax | 20 | | to the Department when filing such return. | 21 | | If experience indicates such action to be practicable, the | 22 | | Department
may prescribe and furnish a combination or joint | 23 | | return which will
enable servicemen, who are required to file | 24 | | returns hereunder and also
under the Service Occupation Tax | 25 | | Act, to furnish all the return
information required by both | 26 | | Acts on the one form. |
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| 1 | | Where the serviceman has more than one business registered | 2 | | with the
Department under separate registration hereunder, | 3 | | such serviceman shall
not file each return that is due as a | 4 | | single return covering all such
registered businesses, but | 5 | | shall file separate returns for each such
registered business. | 6 | | Beginning January 1, 1990, each month the Department shall | 7 | | pay into
the State and Local Tax Reform Fund, a special fund in | 8 | | the State Treasury,
the net revenue realized for the preceding | 9 | | month from the 1% tax on sales
of food for human consumption | 10 | | which is to be consumed off the premises
where it is sold | 11 | | (other than alcoholic beverages, soft drinks and food
which has | 12 | | been prepared for immediate consumption) and prescription and
| 13 | | nonprescription medicines, drugs, medical appliances and | 14 | | insulin, urine
testing materials, syringes and needles used by | 15 | | diabetics. | 16 | | Beginning January 1, 1990, each month the Department shall | 17 | | pay into
the State and Local Sales Tax Reform Fund 20% of the | 18 | | net revenue realized
for the preceding month from the 6.25% | 19 | | general rate on transfers of
tangible personal property, other | 20 | | than tangible personal property which is
purchased outside | 21 | | Illinois at retail from a retailer and which is titled or
| 22 | | registered by an agency of this State's government. | 23 | | Beginning August 1, 2000, each
month the Department shall | 24 | | pay into the
State and Local Sales Tax Reform Fund 100% of the | 25 | | net revenue realized for the
preceding
month from the 1.25% | 26 | | rate on the selling price of motor fuel and gasohol. |
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| 1 | | Beginning October 1, 2009, each month the Department shall | 2 | | pay into the Capital Projects Fund an amount that is equal to | 3 | | an amount estimated by the Department to represent 80% of the | 4 | | net revenue realized for the preceding month from the sale of | 5 | | candy, grooming and hygiene products, and soft drinks that had | 6 | | been taxed at a rate of 1% prior to September 1, 2009 but that | 7 | | are now taxed at 6.25%. | 8 | | Beginning July 1, 2013, each month the Department shall pay | 9 | | into the Underground Storage Tank Fund from the proceeds | 10 | | collected under this Act, the Use Tax Act, the Service | 11 | | Occupation Tax Act, and the Retailers' Occupation Tax Act an | 12 | | amount equal to the average monthly deficit in the Underground | 13 | | Storage Tank Fund during the prior year, as certified annually | 14 | | by the Illinois Environmental Protection Agency, but the total | 15 | | payment into the Underground Storage Tank Fund under this Act, | 16 | | the Use Tax Act, the Service Occupation Tax Act, and the | 17 | | Retailers' Occupation Tax Act shall not exceed $18,000,000 in | 18 | | any State fiscal year. As used in this paragraph, the "average | 19 | | monthly deficit" shall be equal to the difference between the | 20 | | average monthly claims for payment by the fund and the average | 21 | | monthly revenues deposited into the fund, excluding payments | 22 | | made pursuant to this paragraph. | 23 | | Beginning July 1, 2015, of the remainder of the moneys | 24 | | received by the Department under the Use Tax Act, this Act, the | 25 | | Service Occupation Tax Act, and the Retailers' Occupation Tax | 26 | | Act, each month the Department shall deposit $500,000 into the |
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| 1 | | State Crime Laboratory Fund. | 2 | | Of the remainder of the moneys received by the Department | 3 | | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | 4 | | Build
Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | 5 | | and after July 1,
1989, 3.8% thereof shall be paid into the | 6 | | Build Illinois Fund; provided,
however, that if in any fiscal | 7 | | year the sum of (1) the aggregate of 2.2% or
3.8%, as the case | 8 | | may be, of the moneys received by the Department and
required | 9 | | to be paid into the Build Illinois Fund pursuant to Section 3 | 10 | | of
the Retailers' Occupation Tax Act, Section 9 of the Use Tax | 11 | | Act, Section 9
of the Service Use Tax Act, and Section 9 of the | 12 | | Service Occupation Tax
Act, such Acts being hereinafter called | 13 | | the "Tax Acts" and such aggregate
of 2.2% or 3.8%, as the case | 14 | | may be, of moneys being hereinafter called the
"Tax Act | 15 | | Amount", and (2) the amount transferred to the Build Illinois | 16 | | Fund
from the State and Local Sales Tax Reform Fund shall be | 17 | | less than the
Annual Specified Amount (as defined in Section 3 | 18 | | of the Retailers'
Occupation Tax Act), an amount equal to the | 19 | | difference shall be immediately
paid into the Build Illinois | 20 | | Fund from other moneys received by the
Department pursuant to | 21 | | the Tax Acts; and further provided, that if on the
last | 22 | | business day of any month the sum of (1) the Tax Act Amount | 23 | | required
to be deposited into the Build Illinois Bond Account | 24 | | in the Build Illinois
Fund during such month and (2) the amount | 25 | | transferred during such month to
the Build Illinois Fund from | 26 | | the State and Local Sales Tax Reform Fund
shall have been less |
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| 1 | | than 1/12 of the Annual Specified Amount, an amount
equal to | 2 | | the difference shall be immediately paid into the Build | 3 | | Illinois
Fund from other moneys received by the Department | 4 | | pursuant to the Tax Acts;
and, further provided, that in no | 5 | | event shall the payments required under
the preceding proviso | 6 | | result in aggregate payments into the Build Illinois
Fund | 7 | | pursuant to this clause (b) for any fiscal year in excess of | 8 | | the
greater of (i) the Tax Act Amount or (ii) the Annual | 9 | | Specified Amount for
such fiscal year; and, further provided, | 10 | | that the amounts payable into the
Build Illinois Fund under | 11 | | this clause (b) shall be payable only until such
time as the | 12 | | aggregate amount on deposit under each trust indenture securing
| 13 | | Bonds issued and outstanding pursuant to the Build Illinois | 14 | | Bond Act is
sufficient, taking into account any future | 15 | | investment income, to fully
provide, in accordance with such | 16 | | indenture, for the defeasance of or the
payment of the | 17 | | principal of, premium, if any, and interest on the Bonds
| 18 | | secured by such indenture and on any Bonds expected to be | 19 | | issued thereafter
and all fees and costs payable with respect | 20 | | thereto, all as certified by
the Director of the
Bureau of the | 21 | | Budget (now Governor's Office of Management and Budget). If
on | 22 | | the last business day of
any month in which Bonds are | 23 | | outstanding pursuant to the Build Illinois
Bond Act, the | 24 | | aggregate of the moneys deposited in the Build Illinois Bond
| 25 | | Account in the Build Illinois Fund in such month shall be less | 26 | | than the
amount required to be transferred in such month from |
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| 1 | | the Build Illinois
Bond Account to the Build Illinois Bond | 2 | | Retirement and Interest Fund
pursuant to Section 13 of the | 3 | | Build Illinois Bond Act, an amount equal to
such deficiency | 4 | | shall be immediately paid from other moneys received by the
| 5 | | Department pursuant to the Tax Acts to the Build Illinois Fund; | 6 | | provided,
however, that any amounts paid to the Build Illinois | 7 | | Fund in any fiscal
year pursuant to this sentence shall be | 8 | | deemed to constitute payments
pursuant to clause (b) of the | 9 | | preceding sentence and shall reduce the
amount otherwise | 10 | | payable for such fiscal year pursuant to clause (b) of the
| 11 | | preceding sentence. The moneys received by the Department | 12 | | pursuant to this
Act and required to be deposited into the | 13 | | Build Illinois Fund are subject
to the pledge, claim and charge | 14 | | set forth in Section 12 of the Build Illinois
Bond Act. | 15 | | Subject to payment of amounts into the Build Illinois Fund | 16 | | as provided in
the preceding paragraph or in any amendment | 17 | | thereto hereafter enacted, the
following specified monthly | 18 | | installment of the amount requested in the
certificate of the | 19 | | Chairman of the Metropolitan Pier and Exposition
Authority | 20 | | provided under Section 8.25f of the State Finance Act, but not | 21 | | in
excess of the sums designated as "Total Deposit", shall be | 22 | | deposited in the
aggregate from collections under Section 9 of | 23 | | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | 24 | | 9 of the Service Occupation Tax Act, and
Section 3 of the | 25 | | Retailers' Occupation Tax Act into the McCormick Place
| 26 | | Expansion Project Fund in the specified fiscal years. | |
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| 1 | | Fiscal Year | | Total Deposit | |
2 | | 1993 | | $0 | |
3 | | 1994 | | 53,000,000 | |
4 | | 1995 | | 58,000,000 | |
5 | | 1996 | | 61,000,000 | |
6 | | 1997 | | 64,000,000 | |
7 | | 1998 | | 68,000,000 | |
8 | | 1999 | | 71,000,000 | |
9 | | 2000 | | 75,000,000 | |
10 | | 2001 | | 80,000,000 | |
11 | | 2002 | | 93,000,000 | |
12 | | 2003 | | 99,000,000 | |
13 | | 2004 | | 103,000,000 | |
14 | | 2005 | | 108,000,000 | |
15 | | 2006 | | 113,000,000 | |
16 | | 2007 | | 119,000,000 | |
17 | | 2008 | | 126,000,000 | |
18 | | 2009 | | 132,000,000 | |
19 | | 2010 | | 139,000,000 | |
20 | | 2011 | | 146,000,000 | |
21 | | 2012 | | 153,000,000 | |
22 | | 2013 | | 161,000,000 | |
23 | | 2014 | | 170,000,000 | |
24 | | 2015 | | 179,000,000 | |
25 | | 2016 | | 189,000,000 | |
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| 1 | | 2017 | | 199,000,000 | |
2 | | 2018 | | 210,000,000 | |
3 | | 2019 | | 221,000,000 | |
4 | | 2020 | | 233,000,000 | |
5 | | 2021 | | 246,000,000 | |
6 | | 2022 | | 260,000,000 | |
7 | | 2023 | | 275,000,000 | |
8 | | 2024 | | 275,000,000 | |
9 | | 2025 | | 275,000,000 | |
10 | | 2026 | | 279,000,000 | |
11 | | 2027 | | 292,000,000 | |
12 | | 2028 | | 307,000,000 | |
13 | | 2029 | | 322,000,000 | |
14 | | 2030 | | 338,000,000 | |
15 | | 2031 | | 350,000,000 | |
16 | | 2032 | | 350,000,000 | |
17 | | and | | |
|
18 | | each fiscal year | | |
|
19 | | thereafter that bonds | | |
|
20 | | are outstanding under | | |
|
21 | | Section 13.2 of the | | |
|
22 | | Metropolitan Pier and | | |
|
23 | | Exposition Authority Act, | | |
|
24 | | but not after fiscal year 2060. | | |
| 25 | | Beginning July 20, 1993 and in each month of each fiscal | 26 | | year thereafter,
one-eighth of the amount requested in the |
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| 1 | | certificate of the Chairman of
the Metropolitan Pier and | 2 | | Exposition Authority for that fiscal year, less
the amount | 3 | | deposited into the McCormick Place Expansion Project Fund by | 4 | | the
State Treasurer in the respective month under subsection | 5 | | (g) of Section 13
of the Metropolitan Pier and Exposition | 6 | | Authority Act, plus cumulative
deficiencies in the deposits | 7 | | required under this Section for previous
months and years, | 8 | | shall be deposited into the McCormick Place Expansion
Project | 9 | | Fund, until the full amount requested for the fiscal year, but | 10 | | not
in excess of the amount specified above as "Total Deposit", | 11 | | has been deposited. | 12 | | Subject to payment of amounts into the Build Illinois Fund | 13 | | and the
McCormick Place Expansion Project Fund
pursuant to the | 14 | | preceding paragraphs or in any amendments thereto hereafter
| 15 | | enacted, beginning July 1, 1993 and ending on September 30, | 16 | | 2013, the Department shall each month pay into the
Illinois Tax | 17 | | Increment Fund 0.27% of 80% of the net revenue realized for the
| 18 | | preceding month from the 6.25% general rate on the selling | 19 | | price of tangible
personal property. | 20 | | Subject to payment of amounts into the Build Illinois Fund | 21 | | and the
McCormick Place Expansion Project Fund pursuant to the | 22 | | preceding paragraphs or
in any
amendments thereto hereafter | 23 | | enacted, beginning with the receipt of the first
report of | 24 | | taxes paid by an eligible business and continuing for a 25-year
| 25 | | period, the Department shall each month pay into the Energy | 26 | | Infrastructure
Fund 80% of the net revenue realized from the |
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| 1 | | 6.25% general rate on the
selling price of Illinois-mined coal | 2 | | that was sold to an eligible business.
For purposes of this | 3 | | paragraph, the term "eligible business" means a new
electric | 4 | | generating facility certified pursuant to Section 605-332 of | 5 | | the
Department of Commerce and
Economic Opportunity Law of the | 6 | | Civil Administrative
Code of Illinois. | 7 | | Subject to payment of amounts into the Build Illinois Fund, | 8 | | the McCormick Place Expansion Project Fund, the Illinois Tax | 9 | | Increment Fund, and the Energy Infrastructure Fund pursuant to | 10 | | the preceding paragraphs or in any amendments to this Section | 11 | | hereafter enacted, beginning on the first day of the first | 12 | | calendar month to occur on or after the effective date of this | 13 | | amendatory Act of the 98th General Assembly, each month, from | 14 | | the collections made under Section 9 of the Use Tax Act, | 15 | | Section 9 of the Service Use Tax Act, Section 9 of the Service | 16 | | Occupation Tax Act, and Section 3 of the Retailers' Occupation | 17 | | Tax Act, the Department shall pay into the Tax Compliance and | 18 | | Administration Fund, to be used, subject to appropriation, to | 19 | | fund additional auditors and compliance personnel at the | 20 | | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | 21 | | the cash receipts collected during the preceding fiscal year by | 22 | | the Audit Bureau of the Department under the Use Tax Act, the | 23 | | Service Use Tax Act, the Service Occupation Tax Act, the | 24 | | Retailers' Occupation Tax Act, and associated local occupation | 25 | | and use taxes administered by the Department. | 26 | | Of the remainder of the moneys received by the Department |
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| 1 | | pursuant to this
Act, 75% thereof shall be paid into the | 2 | | General Revenue Fund of the State Treasury and 25% shall be | 3 | | reserved in a special account and used only for the transfer to | 4 | | the Common School Fund as part of the monthly transfer from the | 5 | | General Revenue Fund in accordance with Section 8a of the State | 6 | | Finance Act. | 7 | | As soon as possible after the first day of each month, upon | 8 | | certification
of the Department of Revenue, the Comptroller | 9 | | shall order transferred and
the Treasurer shall transfer from | 10 | | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | 11 | | equal to 1.7% of 80% of the net revenue realized
under this Act | 12 | | for the second preceding month.
Beginning April 1, 2000, this | 13 | | transfer is no longer required
and shall not be made. | 14 | | Net revenue realized for a month shall be the revenue | 15 | | collected by the State
pursuant to this Act, less the amount | 16 | | paid out during that month as refunds
to taxpayers for | 17 | | overpayment of liability. | 18 | | References in this Section to "servicemen" also include | 19 | | marketplace providers and referrers that are required to | 20 | | collect and remit the tax under this Act. | 21 | | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | 22 | | 98-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; | 23 | | 98-1098, eff. 8-26-14; 99-352, eff. 8-12-15.)
| 24 | | Section 99. Effective date. This Act takes effect July 1, | 25 | | 2016.".
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