Full Text of HB6647 95th General Assembly
HB6647 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB6647
Introduced , by Rep. Sandra M. Pihos - Patricia R. Bellock SYNOPSIS AS INTRODUCED: |
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35 ILCS 105/2 |
from Ch. 120, par. 439.2 |
35 ILCS 120/1 |
from Ch. 120, par. 440 |
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Amends the Use Tax Act and the Retailers' Occupation Tax Act. Makes changes to the definition of "sale at retail" concerning florists.
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A BILL FOR
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HB6647 |
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LRB095 21438 HLH 50858 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Use Tax Act is amended by changing Section 2 | 5 |
| as follows:
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| (35 ILCS 105/2) (from Ch. 120, par. 439.2)
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| Sec. 2. "Use" means the exercise by any person of any right | 8 |
| or power over
tangible personal property incident to the | 9 |
| ownership of that property,
except that it does not include the | 10 |
| sale of such property in any form as
tangible personal property | 11 |
| in the regular course of business to the extent
that such | 12 |
| property is not first subjected to a use for which it was
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| purchased, and does not include the use of such property by its | 14 |
| owner for
demonstration purposes: Provided that the property | 15 |
| purchased is deemed to
be purchased for the purpose of resale, | 16 |
| despite first being used, to the
extent to which it is resold | 17 |
| as an ingredient of an intentionally produced
product or | 18 |
| by-product of manufacturing. "Use" does not mean the | 19 |
| demonstration
use or interim use of tangible personal property | 20 |
| by a retailer before he sells
that tangible personal property. | 21 |
| For watercraft or aircraft, if the period of
demonstration use | 22 |
| or interim use by the retailer exceeds 18 months,
the retailer
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| shall pay on the retailers' original cost price the tax imposed |
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| by this Act,
and no credit for that tax is permitted if the | 2 |
| watercraft or aircraft is
subsequently sold by the retailer. | 3 |
| "Use" does not mean the physical
incorporation of tangible | 4 |
| personal property, to the extent not first subjected
to a use | 5 |
| for which it was purchased, as an ingredient or constituent, | 6 |
| into
other tangible personal property (a) which is sold in the | 7 |
| regular course of
business or (b) which the person | 8 |
| incorporating such ingredient or constituent
therein has | 9 |
| undertaken at the time of such purchase to cause to be | 10 |
| transported
in interstate commerce to destinations outside the | 11 |
| State of Illinois: Provided
that the property purchased is | 12 |
| deemed to be purchased for the purpose of
resale, despite first | 13 |
| being used, to the extent to which it is resold as an
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| ingredient of an intentionally produced product or by-product | 15 |
| of manufacturing.
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| "Watercraft" means a Class 2, Class 3, or Class 4 | 17 |
| watercraft as defined in
Section 3-2 of the Boat Registration | 18 |
| and Safety Act, a personal watercraft, or
any boat equipped | 19 |
| with an inboard motor.
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| "Purchase at retail" means the acquisition of the ownership | 21 |
| of or title
to tangible personal property through a sale at | 22 |
| retail.
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| "Purchaser" means anyone who, through a sale at retail, | 24 |
| acquires the
ownership of tangible personal property for a | 25 |
| valuable consideration.
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| "Sale at retail" means any transfer of the ownership of or |
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| title to
tangible personal property to a purchaser, for the | 2 |
| purpose of use, and not
for the purpose of resale in any form | 3 |
| as tangible personal property to the
extent not first subjected | 4 |
| to a use for which it was purchased, for a
valuable | 5 |
| consideration: Provided that the property purchased is deemed | 6 |
| to
be purchased for the purpose of resale, despite first being | 7 |
| used, to the
extent to which it is resold as an ingredient of | 8 |
| an intentionally produced
product or by-product of | 9 |
| manufacturing. For this purpose, slag produced as
an incident | 10 |
| to manufacturing pig iron or steel and sold is considered to be
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| an intentionally produced by-product of manufacturing. "Sale | 12 |
| at retail"
includes any such transfer made for resale unless | 13 |
| made in compliance with
Section 2c of the Retailers' Occupation | 14 |
| Tax Act, as incorporated by
reference into Section 12 of this | 15 |
| Act. Transactions whereby the possession
of the property is | 16 |
| transferred but the seller retains the title as security
for | 17 |
| payment of the selling price are sales.
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| "Sale at retail" shall also be construed to include any | 19 |
| Illinois
florist's sales transaction in which the purchase | 20 |
| order is received in
Illinois by a florist and the sale is for | 21 |
| use or consumption, but the
Illinois florist has a florist in | 22 |
| another state deliver the property to the
purchaser or the | 23 |
| purchaser's donee in such other state. For purposes of this | 24 |
| item, "florist" means a retailer who conducts transactions for | 25 |
| the delivery of flowers, wreaths, etc. through a florists' | 26 |
| delivery association using telephonic, electronic, or other |
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| means for the transmission of orders, except that the term | 2 |
| "florist" shall not include any retailer who does not fulfill | 3 |
| other florists' orders for the delivery of flowers, wreaths, | 4 |
| etc.
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| 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.
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| 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.
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| "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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| traded-in is of like kind and character as that which is being
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| 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
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| 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 on account | 11 |
| of the seller's tax liability under
Section 8-11-1 of the | 12 |
| Illinois Municipal Code, as heretofore and hereafter
amended, | 13 |
| or on account of the seller's tax liability under the "County
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| Retailers' Occupation Tax Act". Effective December 1, 1985, | 15 |
| "selling price"
shall include charges that are added to prices | 16 |
| by sellers on account of the
seller's tax liability under the | 17 |
| Cigarette Tax Act, on account of the seller's
duty to collect, | 18 |
| from the purchaser, the tax imposed under the Cigarette Use
Tax | 19 |
| Act, and on account of the seller's duty to collect, from the | 20 |
| purchaser,
any cigarette tax imposed by a home rule unit.
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| The phrase "like kind and character" shall be liberally | 22 |
| construed
(including but not limited to any form of motor | 23 |
| vehicle for any form of
motor vehicle, or any kind of farm or | 24 |
| agricultural implement for any other
kind of farm or | 25 |
| agricultural implement), while not including a kind of item
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| which, if sold at retail by that retailer, would be exempt from |
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| retailers'
occupation tax and use tax as an isolated or | 2 |
| occasional sale.
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| "Department" means the Department of Revenue.
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| "Person" means any natural individual, firm, partnership, | 5 |
| association,
joint stock company, joint adventure, public or | 6 |
| private corporation, limited
liability company, or a
receiver, | 7 |
| executor, trustee, guardian or other representative appointed
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| by order of any court.
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| "Retailer" means and includes every person engaged in the | 10 |
| business of
making sales at retail as defined in this Section.
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| A person who holds himself or herself out as being engaged | 12 |
| (or who habitually
engages) in selling tangible personal | 13 |
| property at retail is a retailer
hereunder with respect to such | 14 |
| sales (and not primarily in a service
occupation) | 15 |
| notwithstanding the fact that such person designs and produces
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| such tangible personal property on special order for the | 17 |
| purchaser and in
such a way as to render the property of value | 18 |
| only to such purchaser, if
such tangible personal property so | 19 |
| produced on special order serves
substantially the same | 20 |
| function as stock or standard items of tangible
personal | 21 |
| property that are sold at retail.
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| A person whose activities are organized and conducted | 23 |
| primarily as a
not-for-profit service enterprise, and who | 24 |
| engages in selling tangible
personal property at retail | 25 |
| (whether to the public or merely to members and
their guests) | 26 |
| is a retailer with respect to such transactions, excepting
only |
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| a person organized and operated exclusively for charitable, | 2 |
| religious
or educational purposes either (1), to the extent of | 3 |
| sales by such person
to its members, students, patients or | 4 |
| inmates of tangible personal property
to be used primarily for | 5 |
| the purposes of such person, or (2), to the extent
of sales by | 6 |
| such person of tangible personal property which is not sold or
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| offered for sale by persons organized for profit. The selling | 8 |
| of school
books and school supplies by schools at retail to | 9 |
| students is not
"primarily for the purposes of" the school | 10 |
| which does such selling. This
paragraph does not apply to nor | 11 |
| subject to taxation occasional dinners,
social or similar | 12 |
| activities of a person organized and operated exclusively
for | 13 |
| charitable, religious or educational purposes, whether or not | 14 |
| such
activities are open to the public.
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| A person who is the recipient of a grant or contract under | 16 |
| Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 17 |
| serves meals to
participants in the federal Nutrition Program | 18 |
| for the Elderly in return for
contributions established in | 19 |
| amount by the individual participant pursuant
to a schedule of | 20 |
| suggested fees as provided for in the federal Act is not a
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| retailer under this Act with respect to such transactions.
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| Persons who engage in the business of transferring tangible | 23 |
| personal
property upon the redemption of trading stamps are | 24 |
| retailers hereunder when
engaged in such business.
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| The isolated or occasional sale of tangible personal | 26 |
| property at retail
by a person who does not hold himself out as |
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| being engaged (or who does not
habitually engage) in selling | 2 |
| such tangible personal property at retail or
a sale through a | 3 |
| bulk vending machine does not make such person a retailer
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| hereunder. However, any person who is engaged in a business | 5 |
| which is not
subject to the tax imposed by the "Retailers' | 6 |
| Occupation Tax Act" because
of involving the sale of or a | 7 |
| contract to sell real estate or a
construction contract to | 8 |
| improve real estate, but who, in the course of
conducting such | 9 |
| business, transfers tangible personal property to users or
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| consumers in the finished form in which it was purchased, and | 11 |
| which does
not become real estate, under any provision of a | 12 |
| construction contract or
real estate sale or real estate sales | 13 |
| agreement entered into with some
other person arising out of or | 14 |
| because of such nontaxable business, is a
retailer to the | 15 |
| extent of the value of the tangible personal property so
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| transferred. If, in such transaction, a separate charge is made | 17 |
| for the
tangible personal property so transferred, the value of | 18 |
| such property, for
the purposes of this Act, is the amount so | 19 |
| separately charged, but not less
than the cost of such property | 20 |
| to the transferor; if no separate charge is
made, the value of | 21 |
| such property, for the purposes of this Act, is the cost
to the | 22 |
| transferor of such tangible personal property.
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| "Retailer maintaining a place of business in this State", | 24 |
| or any like
term, means and includes any of the following | 25 |
| retailers:
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| 1. A retailer having or maintaining within this State, |
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| directly or by
a subsidiary, an office, distribution house, | 2 |
| sales house, warehouse or other
place of business, or any | 3 |
| agent or other representative operating within this
State | 4 |
| under the authority of the retailer or its subsidiary, | 5 |
| irrespective of
whether such place of business or agent or | 6 |
| other representative is located here
permanently or | 7 |
| temporarily, or whether such retailer or subsidiary is | 8 |
| licensed
to do business in this State. However, the | 9 |
| ownership of property that is
located at the premises of a | 10 |
| printer with which the retailer has contracted for
printing | 11 |
| and that consists of the final printed product, property | 12 |
| that becomes
a part of the final printed product, or copy | 13 |
| from which the printed product is
produced shall not result | 14 |
| in the retailer being deemed to have or maintain an
office, | 15 |
| distribution house, sales house, warehouse, or other place | 16 |
| of business
within this State.
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| 2. A retailer soliciting orders for tangible personal | 18 |
| property by
means of a telecommunication or television | 19 |
| shopping system (which utilizes toll
free numbers) which is | 20 |
| intended by the retailer to be broadcast by cable
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| television or other means of broadcasting, to consumers | 22 |
| located in this State.
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| 3. A retailer, pursuant to a contract with a | 24 |
| broadcaster or publisher
located in this State, soliciting | 25 |
| orders for tangible personal property by
means of | 26 |
| advertising which is disseminated primarily to consumers |
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| located in
this State and only secondarily to bordering | 2 |
| jurisdictions.
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| 4. A retailer soliciting orders for tangible personal | 4 |
| property by mail
if the solicitations are substantial and | 5 |
| recurring and if the retailer benefits
from any banking, | 6 |
| financing, debt collection, telecommunication, or | 7 |
| marketing
activities occurring in this State or benefits | 8 |
| from the location in this State
of authorized installation, | 9 |
| servicing, or repair facilities.
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| 5. A retailer that is owned or controlled by the same | 11 |
| interests that own
or control any retailer engaging in | 12 |
| business in the same or similar line of
business in this | 13 |
| State.
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| 6. A retailer having a franchisee or licensee operating | 15 |
| under its trade
name if the franchisee or licensee is | 16 |
| required to collect the tax under this
Section.
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| 7. A retailer, pursuant to a contract with a cable | 18 |
| television operator
located in this State, soliciting | 19 |
| orders for tangible personal property by
means of | 20 |
| advertising which is transmitted or distributed over a | 21 |
| cable
television system in this State.
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| 8. A retailer engaging in activities in Illinois, which | 23 |
| activities in
the state in which the retail business | 24 |
| engaging in such activities is located
would constitute | 25 |
| maintaining a place of business in that state.
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| "Bulk vending machine" means a vending machine,
containing |
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| unsorted confections, nuts, toys, or other items designed
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| primarily to be used or played with by children
which, when a | 3 |
| coin or coins of a denomination not larger than $0.50 are | 4 |
| inserted, are dispensed in equal portions, at random and
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| without selection by the customer.
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| (Source: P.A. 94-1074, eff. 12-26-06.)
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| Section 10. The Retailers' Occupation Tax Act is amended by | 8 |
| changing Section 1 as follows:
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| (35 ILCS 120/1) (from Ch. 120, par. 440)
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| Sec. 1. Definitions. "Sale at retail" means any transfer of | 11 |
| the
ownership of or title to
tangible personal property to a | 12 |
| purchaser, for the purpose of use or
consumption, and not for | 13 |
| the purpose of resale in any form as tangible
personal property | 14 |
| to the extent not first subjected to a use for which it
was | 15 |
| purchased, for a valuable consideration: Provided that the | 16 |
| property
purchased is deemed to be purchased for the purpose of | 17 |
| resale, despite
first being used, to the extent to which it is | 18 |
| resold as an ingredient of
an intentionally produced product or | 19 |
| byproduct of manufacturing. For this
purpose, slag produced as | 20 |
| an incident to manufacturing pig iron or steel
and sold is | 21 |
| considered to be an intentionally produced byproduct of
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| manufacturing. Transactions whereby the possession of the | 23 |
| property is
transferred but the seller retains the title as | 24 |
| security for payment of the
selling price shall be deemed to be |
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| sales.
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| "Sale at retail" shall be construed to include any transfer | 3 |
| of the
ownership of or title to tangible personal property to a | 4 |
| purchaser, for use
or consumption by any other person to whom | 5 |
| such purchaser may transfer the
tangible personal property | 6 |
| without a valuable consideration, and to include
any transfer, | 7 |
| whether made for or without a valuable consideration, for
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| resale in any form as tangible personal property unless made in | 9 |
| compliance
with Section 2c of this Act.
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| Sales of tangible personal property, which property, to the | 11 |
| extent not
first subjected to a use for which it was purchased, | 12 |
| as an ingredient or
constituent, goes into and forms a part of | 13 |
| tangible personal property
subsequently the subject of a "Sale | 14 |
| at retail", are not sales at retail as
defined in this Act: | 15 |
| Provided that the property purchased is deemed to be
purchased | 16 |
| for the purpose of resale, despite first being used, to the
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| extent to which it is resold as an ingredient of an | 18 |
| intentionally produced
product or byproduct of manufacturing.
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| "Sale at retail" shall be construed to include any Illinois | 20 |
| florist's
sales transaction in which the purchase order is | 21 |
| received in Illinois by a
florist and the sale is for use or | 22 |
| consumption, but the Illinois florist
has a florist in another | 23 |
| state deliver the property to the purchaser or the
purchaser's | 24 |
| donee in such other state. For purposes of this item, "florist" | 25 |
| means a retailer who conducts transactions for the delivery of | 26 |
| flowers, wreaths, etc. through a florists' delivery |
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| association using telephonic, electronic, or other means for | 2 |
| the transmission of orders, except that the term "florist" | 3 |
| shall not include any retailer who does not fulfill other | 4 |
| florists' orders for the delivery of flowers, wreaths, etc.
| 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.
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| A person whose activities are organized and conducted | 23 |
| primarily as a
not-for-profit service enterprise, and who | 24 |
| engages in selling tangible
personal property at retail | 25 |
| (whether to the public or merely to members and
their guests) | 26 |
| is engaged in the business of selling tangible personal
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| property at retail with respect to such transactions, excepting | 2 |
| only a
person organized and operated exclusively for | 3 |
| charitable, religious or
educational purposes either (1), to | 4 |
| the extent of sales by such person to
its members, students, | 5 |
| patients or inmates of tangible personal property to
be used | 6 |
| primarily for the purposes of such person, or (2), to the | 7 |
| extent of
sales by such person of tangible personal property | 8 |
| which is not sold or
offered for sale by persons organized for | 9 |
| profit. The selling of school
books and school supplies by | 10 |
| schools at retail to students is not
"primarily for the | 11 |
| purposes of" the school which does such selling. The
provisions | 12 |
| of this paragraph shall not apply to nor subject to taxation
| 13 |
| occasional dinners, socials or similar activities of a person | 14 |
| organized and
operated exclusively for charitable, religious | 15 |
| or educational purposes,
whether or not such activities are | 16 |
| open to the public.
| 17 |
| A person who is the recipient of a grant or contract under | 18 |
| Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 19 |
| serves meals to
participants in the federal Nutrition Program | 20 |
| for the Elderly in return for
contributions established in | 21 |
| amount by the individual participant pursuant
to a schedule of | 22 |
| suggested fees as provided for in the federal Act is not
| 23 |
| engaged in the business of selling tangible personal property | 24 |
| at retail
with respect to such transactions.
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| "Purchaser" means anyone who, through a sale at retail, | 26 |
| acquires the
ownership of or title to tangible personal |
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| property for a valuable
consideration.
| 2 |
| "Reseller of motor fuel" means any person engaged in the | 3 |
| business of selling
or delivering or transferring title of | 4 |
| motor fuel to another person
other than for use or consumption.
| 5 |
| No person shall act as a reseller of motor fuel within this | 6 |
| State without
first being registered as a reseller pursuant to | 7 |
| Section 2c or a retailer
pursuant to Section 2a.
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| "Selling price" or the "amount of sale" means the | 9 |
| consideration for a
sale valued in money whether received in | 10 |
| money or otherwise, including
cash, credits, property, other | 11 |
| than as hereinafter provided, and services,
but not including | 12 |
| the value of or credit given for traded-in tangible
personal | 13 |
| property where the item that is traded-in is of like kind and
| 14 |
| character as that which is being sold, and shall be determined | 15 |
| without any
deduction on account of the cost of the property | 16 |
| sold, the cost of
materials used, labor or service cost or any | 17 |
| other expense whatsoever, but
does not include charges that are | 18 |
| added to prices by sellers on account of
the seller's tax | 19 |
| liability under this Act, or on account of the seller's
duty to | 20 |
| collect, from the purchaser, the tax that is imposed by the Use | 21 |
| Tax
Act, or on account of the seller's tax liability under | 22 |
| Section 8-11-1 of
the Illinois Municipal Code, as heretofore | 23 |
| and hereafter amended, or on
account of the seller's tax | 24 |
| liability under the County Retailers'
Occupation Tax Act, or on | 25 |
| account of the seller's tax liability under the
Home Rule | 26 |
| Municipal Soft Drink Retailers' Occupation Tax,
or on account |
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| of the seller's tax liability under any tax imposed under the
| 2 |
| "Regional Transportation Authority Act", approved December 12, | 3 |
| 1973.
Effective December 1, 1985, "selling price" shall include | 4 |
| charges that
are added to prices by sellers on account of the | 5 |
| seller's
tax liability under the Cigarette Tax Act, on account | 6 |
| of the sellers'
duty to collect, from the purchaser, the tax | 7 |
| imposed under the Cigarette
Use Tax Act, and on account of the | 8 |
| seller's duty to collect, from the
purchaser, any cigarette tax | 9 |
| imposed by a home rule unit.
| 10 |
| The phrase "like kind and character" shall be liberally | 11 |
| construed
(including but not limited to any form of motor | 12 |
| vehicle for any form of
motor vehicle, or any kind of farm or | 13 |
| agricultural implement for any other
kind of farm or | 14 |
| agricultural implement), while not including a kind of item
| 15 |
| which, if sold at retail by that retailer, would be exempt from | 16 |
| retailers'
occupation tax and use tax as an isolated or | 17 |
| occasional sale.
| 18 |
| "Gross receipts" from the sales of tangible personal | 19 |
| property at retail
means the total selling price or the amount | 20 |
| of such sales, as hereinbefore
defined. In the case of charge | 21 |
| and time sales, the amount thereof shall be
included only as | 22 |
| and when payments are received by the seller.
Receipts or other | 23 |
| consideration derived by a seller from
the sale, transfer or | 24 |
| assignment of accounts receivable to a wholly owned
subsidiary | 25 |
| will not be deemed payments prior to the time the purchaser
| 26 |
| makes payment on such accounts.
|
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HB6647 |
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LRB095 21438 HLH 50858 b |
|
| 1 |
| "Department" means the Department of Revenue.
| 2 |
| "Person" means any natural individual, firm, partnership, | 3 |
| association,
joint stock company, joint adventure, public or | 4 |
| private corporation, limited
liability company, or a receiver, | 5 |
| executor, trustee, guardian or other
representative appointed | 6 |
| by order of any court.
| 7 |
| The isolated or occasional sale of tangible personal | 8 |
| property at retail
by a person who does not hold himself out as | 9 |
| being engaged (or who does not
habitually engage) in selling | 10 |
| such tangible personal property at retail, or
a sale through a | 11 |
| bulk vending machine, does not constitute engaging in a
| 12 |
| business of selling such tangible personal property at retail | 13 |
| within the
meaning of this Act; provided that any person who is | 14 |
| engaged in a business
which is not subject to the tax imposed | 15 |
| by this Act because of involving
the sale of or a contract to | 16 |
| sell real estate or a construction contract to
improve real | 17 |
| estate or a construction contract to engineer, install, and
| 18 |
| maintain an integrated system of products, but who, in the | 19 |
| course of
conducting such business,
transfers tangible | 20 |
| personal property to users or consumers in the finished
form in | 21 |
| which it was purchased, and which does not become real estate | 22 |
| or was
not engineered and installed, under any provision of a | 23 |
| construction contract or
real estate sale or real estate sales | 24 |
| agreement entered into with some other
person arising out of or | 25 |
| because of such nontaxable business, is engaged in the
business | 26 |
| of selling tangible personal property at retail to the extent |
|
|
|
HB6647 |
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LRB095 21438 HLH 50858 b |
|
| 1 |
| of the
value of the tangible personal property so transferred. | 2 |
| If, in such a
transaction, a separate charge is made for the | 3 |
| tangible personal property so
transferred, the value of such | 4 |
| property, for the purpose of this Act, shall be
the amount so | 5 |
| separately charged, but not less than the cost of such property
| 6 |
| to the transferor; if no separate charge is made, the value of | 7 |
| such property,
for the purposes of this Act, is the cost to the | 8 |
| transferor of such tangible
personal property. Construction | 9 |
| contracts for the improvement of real estate
consisting of | 10 |
| engineering, installation, and maintenance of voice, data, | 11 |
| video,
security, and all telecommunication systems do not | 12 |
| constitute engaging in a
business of selling tangible personal | 13 |
| property at retail within the meaning of
this Act if they are | 14 |
| sold at one specified contract price.
| 15 |
| A person who holds himself or herself out as being engaged | 16 |
| (or who habitually
engages) in selling tangible personal | 17 |
| property at retail is a person
engaged in the business of | 18 |
| selling tangible personal property at retail
hereunder with | 19 |
| respect to such sales (and not primarily in a service
| 20 |
| occupation) notwithstanding the fact that such person designs | 21 |
| and produces
such tangible personal property on special order | 22 |
| for the purchaser and in
such a way as to render the property | 23 |
| of value only to such purchaser, if
such tangible personal | 24 |
| property so produced on special order serves
substantially the | 25 |
| same function as stock or standard items of tangible
personal | 26 |
| property that are sold at retail.
|
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HB6647 |
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LRB095 21438 HLH 50858 b |
|
| 1 |
| Persons who engage in the business of transferring tangible | 2 |
| personal
property upon the redemption of trading stamps are | 3 |
| engaged in the business
of selling such property at retail and | 4 |
| shall be liable for and shall pay
the tax imposed by this Act | 5 |
| on the basis of the retail value of the
property transferred | 6 |
| upon redemption of such stamps.
| 7 |
| "Bulk vending machine" means a vending machine,
containing | 8 |
| unsorted confections, nuts, toys, or other items designed
| 9 |
| primarily to be used or played with by children
which, when a | 10 |
| coin or coins of a denomination not larger than $0.50 are
| 11 |
| inserted, are dispensed in equal portions, at random and
| 12 |
| without selection by the customer.
| 13 |
| (Source: P.A. 92-213, eff. 1-1-02.)
|
|