Full Text of SB0058 102nd General Assembly
SB0058enr 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Use Tax Act is amended by changing Section 2 | 5 | | 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 | 10 | | ownership of that property,
except that it does not include | 11 | | the sale of such property in any form as
tangible personal | 12 | | property in the regular course of business to the extent
that | 13 | | such property is not first subjected to a use for which it was
| 14 | | purchased, and does not include the use of such property by its | 15 | | owner for
demonstration purposes: Provided that the property | 16 | | purchased is deemed to
be purchased for the purpose of resale, | 17 | | despite first being used, to the
extent to which it is resold | 18 | | as an ingredient of an intentionally produced
product or | 19 | | by-product of manufacturing. "Use" does not mean the | 20 | | demonstration
use or interim use of tangible personal property | 21 | | by a retailer before he sells
that tangible personal property. | 22 | | For watercraft or aircraft, if the period of
demonstration use | 23 | | or interim use by the retailer exceeds 18 months,
the retailer
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| 1 | | shall pay on the retailers' original cost price the tax | 2 | | imposed by this Act,
and no credit for that tax is permitted if | 3 | | the watercraft or aircraft is
subsequently sold by the | 4 | | retailer. "Use" does not mean the physical
incorporation of | 5 | | tangible personal property, to the extent not first subjected
| 6 | | to a use for which it was purchased, as an ingredient or | 7 | | constituent, into
other tangible personal property (a) which | 8 | | is sold in the regular course of
business or (b) which the | 9 | | person incorporating such ingredient or constituent
therein | 10 | | has undertaken at the time of such purchase to cause to be | 11 | | transported
in interstate commerce to destinations outside the | 12 | | State of Illinois: Provided
that the property purchased is | 13 | | deemed to be purchased for the purpose of
resale, despite | 14 | | first being used, to the extent to which it is resold as an
| 15 | | ingredient of an intentionally produced product or by-product | 16 | | of manufacturing.
| 17 | | "Watercraft" means a Class 2, Class 3, or Class 4 | 18 | | watercraft as defined in
Section 3-2 of the Boat Registration | 19 | | and Safety Act, a personal watercraft, or
any boat equipped | 20 | | with an inboard motor.
| 21 | | "Purchase at retail" means the acquisition of the | 22 | | ownership of or title
to tangible personal property through a | 23 | | sale at retail.
| 24 | | "Purchaser" means anyone who, through a sale at retail, | 25 | | acquires the
ownership of tangible personal property for a | 26 | | valuable consideration.
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| 1 | | "Sale at retail" means any transfer of the ownership of or | 2 | | title to
tangible personal property to a purchaser, for the | 3 | | purpose of use, and not
for the purpose of resale in any form | 4 | | as tangible personal property to the
extent not first | 5 | | subjected to a use for which it was purchased, for a
valuable | 6 | | consideration: Provided that the property purchased is deemed | 7 | | to
be purchased for the purpose of resale, despite first being | 8 | | used, to the
extent to which it is resold as an ingredient of | 9 | | an intentionally produced
product or by-product of | 10 | | manufacturing. For this purpose, slag produced as
an incident | 11 | | to manufacturing pig iron or steel and sold is considered to be
| 12 | | an intentionally produced by-product of manufacturing. "Sale | 13 | | at retail"
includes any such transfer made for resale unless | 14 | | made in compliance with
Section 2c of the Retailers' | 15 | | Occupation Tax Act, as incorporated by
reference into Section | 16 | | 12 of this Act. Transactions whereby the possession
of the | 17 | | property is transferred but the seller retains the title as | 18 | | security
for payment of the selling price are sales.
| 19 | | "Sale at retail" shall also be construed to include any | 20 | | Illinois
florist's sales transaction in which the purchase | 21 | | order is received in
Illinois by a florist and the sale is for | 22 | | use or consumption, but the
Illinois florist has a florist in | 23 | | another state deliver the property to the
purchaser or the | 24 | | purchaser's donee in such other state.
| 25 | | Nonreusable tangible personal property that is used by | 26 | | persons engaged in
the business of operating a restaurant, |
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| 1 | | cafeteria, or drive-in is a sale for
resale when it is | 2 | | transferred to customers in the ordinary course of business
as | 3 | | part of the sale of food or beverages and is used to deliver, | 4 | | package, or
consume food or beverages, regardless of where | 5 | | consumption of the food or
beverages occurs. Examples of those | 6 | | items include, but are not limited to
nonreusable, paper and | 7 | | plastic cups, plates, baskets, boxes, sleeves, buckets
or | 8 | | other containers, utensils, straws, placemats, napkins, doggie | 9 | | bags, and
wrapping or packaging
materials that are transferred | 10 | | to customers as part of the sale of food or
beverages in the | 11 | | ordinary course of business.
| 12 | | The purchase, employment and transfer of such tangible | 13 | | personal property
as newsprint and ink for the primary purpose | 14 | | of conveying news (with or
without other information) is not a | 15 | | purchase, use or sale of tangible
personal property.
| 16 | | "Selling price" means the consideration for a sale valued | 17 | | in money
whether received in money or otherwise, including | 18 | | cash, credits, property
other than as hereinafter provided, | 19 | | and services, but, prior to January 1, 2020 and beginning | 20 | | again on January 1, 2022 , not including the
value of or credit | 21 | | given for traded-in tangible personal property where the
item | 22 | | that is traded-in is of like kind and character as that which | 23 | | is being
sold; beginning January 1, 2020 and until January 1, | 24 | | 2022 , "selling price" includes the portion of the value of or | 25 | | credit given for traded-in motor vehicles of the First | 26 | | Division as defined in Section 1-146 of the Illinois Vehicle |
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| 1 | | Code of like kind and character as that which is being sold | 2 | | that exceeds $10,000. "Selling price" shall be determined | 3 | | without any deduction on account of the cost
of the property | 4 | | sold, the cost of materials used, labor or service cost or
any | 5 | | other expense whatsoever, but does not include interest or | 6 | | finance
charges which appear as separate items on the bill of | 7 | | sale or sales
contract nor charges that are added to prices by | 8 | | sellers on account of the
seller's tax liability under the | 9 | | Retailers' Occupation Tax Act, or on
account of the seller's | 10 | | duty to collect, from the purchaser, the tax that
is imposed by | 11 | | this Act, or, except as otherwise provided with respect to any | 12 | | cigarette tax imposed by a home rule unit, on account of the | 13 | | seller's tax liability under any local occupation tax | 14 | | administered by the Department, or, except as otherwise | 15 | | provided with respect to any cigarette tax imposed by a home | 16 | | rule unit on account of the seller's duty to collect, from the | 17 | | purchasers, the tax that is imposed under any local use tax | 18 | | administered by the Department. Effective December 1, 1985, | 19 | | "selling price"
shall include charges that are added to prices | 20 | | by sellers on account of the
seller's tax liability under the | 21 | | Cigarette Tax Act, on account of the seller's
duty to collect, | 22 | | from the purchaser, the tax imposed under the Cigarette Use
| 23 | | Tax Act, and on account of the seller's duty to collect, from | 24 | | the purchaser,
any cigarette tax imposed 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' | 5 | | Occupation Tax, and local retailers' occupation taxes, if | 6 | | applicable) in which the retailer would have reported and paid | 7 | | such tax if the retailer had accounted for the tax to the | 8 | | Department. For amounts received by the lessor from the lessee | 9 | | that are not calculated at the time the lease is executed, the | 10 | | lessor must file the return and pay the tax to the Department | 11 | | by the due date otherwise required by this Act for returns | 12 | | other than transaction returns. If the retailer is entitled | 13 | | under this Act to a discount for collecting and remitting the | 14 | | tax imposed under this Act to the Department with respect to | 15 | | the sale of the motor vehicle to the lessor, then the right to | 16 | | the discount provided in this Act shall be transferred to the | 17 | | lessor with respect to the tax paid by the lessor for any | 18 | | amount received by the lessor from the lessee for the leased | 19 | | vehicle that is not calculated at the time the lease is | 20 | | executed; provided that the discount is only allowed if the | 21 | | return is timely filed and for amounts timely paid. The | 22 | | "selling price" of a motor vehicle that is sold on or after | 23 | | January 1, 2015 for the purpose of leasing for a defined period | 24 | | of longer than one year shall not be reduced by the value of or | 25 | | credit given for traded-in tangible personal property owned by | 26 | | the lessor, nor shall it be reduced by the value of or credit |
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| 1 | | given for traded-in tangible personal property owned by the | 2 | | lessee, regardless of whether the trade-in value thereof is | 3 | | assigned by the lessee to the lessor. In the case of a motor | 4 | | vehicle that is sold for the purpose of leasing for a defined | 5 | | period of longer than one year, the sale occurs at the time of | 6 | | the delivery of the vehicle, regardless of the due date of any | 7 | | lease payments. A lessor who incurs a Retailers' Occupation | 8 | | Tax liability on the sale of a motor vehicle coming off lease | 9 | | may not take a credit against that liability for the Use Tax | 10 | | the lessor paid upon the purchase of the motor vehicle (or for | 11 | | any tax the lessor paid with respect to any amount received by | 12 | | the lessor from the lessee for the leased vehicle that was not | 13 | | calculated at the time the lease was executed) if the selling | 14 | | price of the motor vehicle at the time of purchase was | 15 | | calculated using the definition of "selling price" as defined | 16 | | in this paragraph. Notwithstanding any other provision of this | 17 | | Act to the contrary, lessors shall file all returns and make | 18 | | all payments required under this paragraph to the Department | 19 | | by electronic means in the manner and form as required by the | 20 | | Department. This paragraph does not apply to leases of motor | 21 | | vehicles for which, at the time the lease is entered into, the | 22 | | term of the lease is not a defined period, including leases | 23 | | with a defined initial period with the option to continue the | 24 | | lease on a month-to-month or other basis beyond the initial | 25 | | defined 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 | 19 | | such 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
| 6 | | only a person organized and operated exclusively for | 7 | | charitable, religious
or educational purposes either (1), to | 8 | | the extent of sales by such person
to its members, students, | 9 | | patients or inmates of tangible personal property
to be used | 10 | | primarily for the purposes of such person, or (2), to the | 11 | | extent
of sales by such person of tangible personal property | 12 | | which is not sold or
offered for sale by persons organized for | 13 | | profit. The selling of school
books and school supplies by | 14 | | schools at retail to students is not
"primarily for the | 15 | | purposes of" the school which does such selling. This
| 16 | | paragraph does not apply to nor subject to taxation occasional | 17 | | dinners,
social or similar activities of a person organized | 18 | | and operated exclusively
for charitable, religious or | 19 | | educational purposes, whether or not such
activities are open | 20 | | to the public.
| 21 | | A person who is the recipient of a grant or contract under | 22 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 23 | | serves meals to
participants in the federal Nutrition Program | 24 | | for the Elderly in return for
contributions established in | 25 | | amount by the individual participant pursuant
to a schedule of | 26 | | suggested fees as provided for in the federal Act is not a
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| 1 | | retailer under this Act with respect to such transactions.
| 2 | | Persons who engage in the business of transferring | 3 | | tangible personal
property upon the redemption of trading | 4 | | stamps are retailers hereunder when
engaged in such business.
| 5 | | The isolated or occasional sale of tangible personal | 6 | | property at retail
by a person who does not hold himself out as | 7 | | being engaged (or who does not
habitually engage) in selling | 8 | | such tangible personal property at retail or
a sale through a | 9 | | bulk vending machine does not make such person a retailer
| 10 | | hereunder. However, any person who is engaged in a business | 11 | | which is not
subject to the tax imposed by the Retailers' | 12 | | Occupation Tax Act because
of involving the sale of or a | 13 | | contract to sell real estate or a
construction contract to | 14 | | improve real estate, but who, in the course of
conducting such | 15 | | business, transfers tangible personal property to users or
| 16 | | consumers in the finished form in which it was purchased, and | 17 | | which does
not become real estate, under any provision of a | 18 | | construction contract or
real estate sale or real estate sales | 19 | | agreement entered into with some
other person arising out of | 20 | | or because of such nontaxable business, is a
retailer to the | 21 | | extent of the value of the tangible personal property so
| 22 | | transferred. If, in such transaction, a separate charge is | 23 | | made for the
tangible personal property so transferred, the | 24 | | value of such property, for
the purposes of this Act, is the | 25 | | amount so separately charged, but not less
than the cost of | 26 | | such property to the transferor; if no separate charge is
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| 1 | | made, the value of such property, for the purposes of this Act, | 2 | | is the cost
to the transferor of such tangible personal | 3 | | property.
| 4 | | "Retailer maintaining a place of business in this State", | 5 | | or any like
term, means and includes any of the following | 6 | | retailers:
| 7 | | (1) A retailer having or maintaining within this | 8 | | State, directly or by
a subsidiary, an office, | 9 | | distribution house, sales house, warehouse or other
place | 10 | | of business, or any agent or other representative | 11 | | operating within this
State under the authority of the | 12 | | retailer or its subsidiary, irrespective of
whether such | 13 | | place of business or agent or other representative is | 14 | | located here
permanently or temporarily, or whether such | 15 | | retailer or subsidiary is licensed
to do business in this | 16 | | State. However, the ownership of property that is
located | 17 | | at the premises of a printer with which the retailer has | 18 | | contracted for
printing and that consists of the final | 19 | | printed product, property that becomes
a part of the final | 20 | | printed product, or copy from which the printed product is
| 21 | | produced shall not result in the retailer being deemed to | 22 | | have or maintain an
office, distribution house, sales | 23 | | house, warehouse, or other place of business
within this | 24 | | State. | 25 | | (1.1) A retailer having a contract with a person | 26 | | located in this State under which the person, for a |
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| 1 | | commission or other consideration based upon the sale of | 2 | | tangible personal property by the retailer, directly or | 3 | | indirectly refers potential customers to the retailer by | 4 | | providing to the potential customers a promotional code or | 5 | | other mechanism that allows the retailer to track | 6 | | purchases referred by such persons. Examples of mechanisms | 7 | | that allow the retailer to track purchases referred by | 8 | | such persons include but are not limited to the use of a | 9 | | link on the person's Internet website, promotional codes | 10 | | distributed through the person's hand-delivered or mailed | 11 | | material, and promotional codes distributed by the person | 12 | | through radio or other broadcast media. The provisions of | 13 | | this paragraph (1.1) shall apply only if the cumulative | 14 | | gross receipts from sales of tangible personal property by | 15 | | the retailer to customers who are referred to the retailer | 16 | | by all persons in this State under such contracts exceed | 17 | | $10,000 during the preceding 4 quarterly periods ending on | 18 | | the last day of March, June, September, and December. A | 19 | | retailer meeting the requirements of this paragraph (1.1) | 20 | | shall be presumed to be maintaining a place of business in | 21 | | this State but may rebut this presumption by submitting | 22 | | proof that the referrals or other activities pursued | 23 | | within this State by such persons were not sufficient to | 24 | | meet the nexus standards of the United States Constitution | 25 | | during the preceding 4 quarterly periods. | 26 | | (1.2) Beginning July 1, 2011, a retailer having a |
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| 1 | | contract with a person located in this State under which: | 2 | | (A) the retailer sells the same or substantially | 3 | | similar line of products as the person located in this | 4 | | State and does so using an identical or substantially | 5 | | similar name, trade name, or trademark as the person | 6 | | located in this State; and | 7 | | (B) the retailer provides a commission or other | 8 | | consideration to the person located in this State | 9 | | based upon the sale of tangible personal property by | 10 | | the retailer. | 11 | | The provisions of this paragraph (1.2) shall apply | 12 | | only if the cumulative gross receipts from sales of | 13 | | tangible personal property by the retailer to customers in | 14 | | this State under all such contracts exceed $10,000 during | 15 | | the preceding 4 quarterly periods ending on the last day | 16 | | of March, June, September, and December.
| 17 | | (2) (Blank).
| 18 | | (3) (Blank).
| 19 | | (4) (Blank).
| 20 | | (5) (Blank).
| 21 | | (6) (Blank).
| 22 | | (7) (Blank).
| 23 | | (8) (Blank).
| 24 | | (9) Beginning October 1, 2018, a retailer making sales | 25 | | of tangible personal property to purchasers in Illinois | 26 | | from outside of Illinois if: |
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| 1 | | (A) the cumulative gross receipts from sales of | 2 | | tangible personal property to purchasers in Illinois | 3 | | are $100,000 or more; or | 4 | | (B) the retailer enters into 200 or more separate | 5 | | transactions for the sale of tangible personal | 6 | | property to purchasers in Illinois. | 7 | | The retailer shall determine on a quarterly basis, | 8 | | ending on the last day of March, June, September, and | 9 | | December, whether he or she meets the criteria of either | 10 | | subparagraph (A) or (B) of this paragraph (9) for the | 11 | | preceding 12-month period. If the retailer meets the | 12 | | threshold of either subparagraph (A) or (B) for a 12-month | 13 | | period, he or she is considered a retailer maintaining a | 14 | | place of business in this State and is required to collect | 15 | | and remit the tax imposed under this Act and file returns | 16 | | for one year. At the end of that one-year period, the | 17 | | retailer shall determine whether he or she met the | 18 | | threshold of either subparagraph (A) or (B) during the | 19 | | preceding 12-month period. If the retailer met the | 20 | | criteria in either subparagraph (A) or (B) for the | 21 | | preceding 12-month period, he or she is considered a | 22 | | retailer maintaining a place of business in this State and | 23 | | is required to collect and remit the tax imposed under | 24 | | this Act and file returns for the subsequent year. If at | 25 | | the end of a one-year period a retailer that was required | 26 | | to collect and remit the tax imposed under this Act |
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| 1 | | determines that he or she did not meet the threshold in | 2 | | either subparagraph (A) or (B) during the preceding | 3 | | 12-month period, the retailer shall subsequently determine | 4 | | on a quarterly basis, ending on the last day of March, | 5 | | June, September, and December, whether he or she meets the | 6 | | threshold of either subparagraph (A) or (B) for the | 7 | | preceding 12-month period. | 8 | | Beginning January 1, 2020, neither the gross receipts | 9 | | from nor the number of separate transactions for sales of | 10 | | tangible personal property to purchasers in Illinois that | 11 | | a retailer makes through a marketplace facilitator and for | 12 | | which the retailer has received a certification from the | 13 | | marketplace facilitator pursuant to Section 2d of this Act | 14 | | shall be included for purposes of determining whether he | 15 | | or she has met the thresholds of this paragraph (9). | 16 | | (10) Beginning January 1, 2020, a marketplace | 17 | | facilitator that meets a threshold set forth in subsection | 18 | | (b) of Section 2d of this Act. | 19 | | "Bulk vending machine" means a vending machine,
containing | 20 | | unsorted confections, nuts, toys, or other items designed
| 21 | | primarily to be used or played with by children
which, when a | 22 | | coin or coins of a denomination not larger than $0.50 are | 23 | | inserted, are dispensed in equal portions, at random and
| 24 | | without selection by the customer.
| 25 | | (Source: P.A. 100-587, eff. 6-4-18; 101-9, eff. 6-5-19; | 26 | | 101-31, eff. 1-1-20; 101-604, eff. 1-1-20.)
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| 1 | | Section 10. The Retailers' Occupation Tax Act is amended | 2 | | by changing Section 1 as follows:
| 3 | | (35 ILCS 120/1) (from Ch. 120, par. 440)
| 4 | | Sec. 1. Definitions. "Sale at retail" means any transfer | 5 | | of the
ownership of or title to
tangible personal property to a | 6 | | purchaser, for the purpose of use or
consumption, and not for | 7 | | the purpose of resale in any form as tangible
personal | 8 | | property to the extent not first subjected to a use for which | 9 | | it
was purchased, for a valuable consideration: Provided that | 10 | | the property
purchased is deemed to be purchased for the | 11 | | purpose of resale, despite
first being used, to the extent to | 12 | | which it is resold as an ingredient of
an intentionally | 13 | | produced product or byproduct of manufacturing. For this
| 14 | | purpose, slag produced as an incident to manufacturing pig | 15 | | iron or steel
and sold is considered to be an intentionally | 16 | | produced byproduct of
manufacturing. Transactions whereby the | 17 | | possession of the property is
transferred but the seller | 18 | | retains the title as security for payment of the
selling price | 19 | | shall be deemed to be sales.
| 20 | | "Sale at retail" shall be construed to include any | 21 | | transfer of the
ownership of or title to tangible personal | 22 | | property to a purchaser, for use
or consumption by any other | 23 | | person to whom such purchaser may transfer the
tangible | 24 | | personal property without a valuable consideration, and to |
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| 1 | | include
any transfer, whether made for or without a valuable | 2 | | consideration, for
resale in any form as tangible personal | 3 | | property unless made in compliance
with Section 2c of this | 4 | | Act.
| 5 | | Sales of tangible personal property, which property, to | 6 | | the extent not
first subjected to a use for which it was | 7 | | purchased, as an ingredient or
constituent, goes into and | 8 | | forms a part of tangible personal property
subsequently the | 9 | | subject of a "Sale at retail", are not sales at retail as
| 10 | | defined in this Act: Provided that the property purchased is | 11 | | deemed to be
purchased for the purpose of resale, despite | 12 | | first being used, to the
extent to which it is resold as an | 13 | | ingredient of an intentionally produced
product or byproduct | 14 | | of manufacturing.
| 15 | | "Sale at retail" shall be construed to include any | 16 | | Illinois florist's
sales transaction in which the purchase | 17 | | order is received in Illinois by a
florist and the sale is for | 18 | | use or consumption, but the Illinois florist
has a florist in | 19 | | another state deliver the property to the purchaser or the
| 20 | | purchaser's donee in such other state.
| 21 | | Nonreusable tangible personal property that is used by | 22 | | persons engaged in
the business of operating a restaurant, | 23 | | cafeteria, or drive-in is a sale for
resale when it is | 24 | | transferred to customers in the ordinary course of business
as | 25 | | part of the sale of food or beverages and is used to deliver, | 26 | | package, or
consume food or beverages, regardless of where |
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| 1 | | consumption of the food or
beverages occurs. Examples of those | 2 | | items include, but are not limited to
nonreusable, paper and | 3 | | plastic cups, plates, baskets, boxes, sleeves, buckets
or | 4 | | other containers, utensils, straws, placemats, napkins, doggie | 5 | | bags, and
wrapping or packaging
materials that are transferred | 6 | | to customers as part of the sale of food or
beverages in the | 7 | | ordinary course of business.
| 8 | | The purchase, employment and transfer of such tangible | 9 | | personal property
as newsprint and ink for the primary purpose | 10 | | of conveying news (with or
without other information) is not a | 11 | | purchase, use or sale of tangible
personal property.
| 12 | | A person whose activities are organized and conducted | 13 | | primarily as a
not-for-profit service enterprise, and who | 14 | | engages in selling tangible
personal property at retail | 15 | | (whether to the public or merely to members and
their guests) | 16 | | is engaged in the business of selling tangible personal
| 17 | | property at retail with respect to such transactions, | 18 | | excepting only a
person organized and operated exclusively for | 19 | | charitable, religious or
educational purposes either (1), to | 20 | | the extent of sales by such person to
its members, students, | 21 | | patients or inmates of tangible personal property to
be used | 22 | | primarily for the purposes of such person, or (2), to the | 23 | | extent of
sales by such person of tangible personal property | 24 | | which is not sold or
offered for sale by persons organized for | 25 | | profit. The selling of school
books and school supplies by | 26 | | schools at retail to students is not
"primarily for the |
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| 1 | | purposes of" the school which does such selling. The
| 2 | | provisions of this paragraph shall not apply to nor subject to | 3 | | taxation
occasional dinners, socials or similar activities of | 4 | | a person organized and
operated exclusively for charitable, | 5 | | religious or educational purposes,
whether or not such | 6 | | activities are open to the public.
| 7 | | A person who is the recipient of a grant or contract under | 8 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 9 | | serves meals to
participants in the federal Nutrition Program | 10 | | for the Elderly in return for
contributions established in | 11 | | amount by the individual participant pursuant
to a schedule of | 12 | | suggested fees as provided for in the federal Act is not
| 13 | | engaged in the business of selling tangible personal property | 14 | | at retail
with respect to such transactions.
| 15 | | "Purchaser" means anyone who, through a sale at retail, | 16 | | acquires the
ownership of or title to tangible personal | 17 | | property for a valuable
consideration.
| 18 | | "Reseller of motor fuel" means any person engaged in the | 19 | | business of selling
or delivering or transferring title of | 20 | | motor fuel to another person
other than for use or | 21 | | consumption.
No person shall act as a reseller of motor fuel | 22 | | within this State without
first being registered as a reseller | 23 | | pursuant to Section 2c or a retailer
pursuant to Section 2a.
| 24 | | "Selling price" or the "amount of sale" means the | 25 | | consideration for a
sale valued in money whether received in | 26 | | money or otherwise, including
cash, credits, property, other |
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| 1 | | than as hereinafter provided, and services,
but, prior to | 2 | | January 1, 2020 and beginning again on January 1, 2022 , not | 3 | | including the value of or credit given for traded-in tangible
| 4 | | personal property where the item that is traded-in is of like | 5 | | kind and
character as that which is being sold; beginning | 6 | | January 1, 2020 and until January 1, 2022 , "selling price" | 7 | | includes the portion of the value of or credit given for | 8 | | traded-in motor vehicles of the First Division as defined in | 9 | | Section 1-146 of the Illinois Vehicle Code of like kind and | 10 | | character as that which is being sold that exceeds $10,000. | 11 | | "Selling price" shall be determined without any
deduction on | 12 | | account of the cost of the property sold, the cost of
materials | 13 | | used, labor or service cost or any other expense whatsoever, | 14 | | but
does not include charges that are added to prices by | 15 | | sellers on account of
the seller's tax liability under this | 16 | | Act, or on account of the seller's
duty to collect, from the | 17 | | purchaser, the tax that is imposed by the Use Tax
Act, or, | 18 | | except as otherwise provided with respect to any cigarette tax | 19 | | imposed by a home rule unit, on account of the seller's tax | 20 | | liability under any local occupation tax administered by the | 21 | | Department, or, except as otherwise provided with respect to | 22 | | any cigarette tax imposed by a home rule unit on account of the | 23 | | seller's duty to collect, from the purchasers, the tax that is | 24 | | imposed under any local use tax administered by the | 25 | | Department.
Effective December 1, 1985, "selling price" shall | 26 | | include charges that
are added to prices by sellers on account |
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| 1 | | of the seller's
tax liability under the Cigarette Tax Act, on | 2 | | account of the sellers'
duty to collect, from the purchaser, | 3 | | the tax imposed under the Cigarette
Use Tax Act, and on account | 4 | | of the seller's duty to collect, from the
purchaser, any | 5 | | cigarette tax imposed by a home rule unit.
| 6 | | Notwithstanding any law to the contrary, for any motor | 7 | | vehicle, as defined in Section 1-146 of the Vehicle Code, that | 8 | | is sold on or after January 1, 2015 for the purpose of leasing | 9 | | the vehicle for a defined period that is longer than one year | 10 | | and (1) is a motor vehicle of the second division that: (A) is | 11 | | a self-contained motor vehicle designed or permanently | 12 | | converted to provide living quarters for recreational, | 13 | | camping, or travel use, with direct walk through access to the | 14 | | living quarters from the driver's seat; (B) is of the van | 15 | | configuration designed for the transportation of not less than | 16 | | 7 nor more than 16 passengers; or (C) has a gross vehicle | 17 | | weight rating of 8,000 pounds or less or (2) is a motor vehicle | 18 | | of the first division, "selling price" or "amount of sale" | 19 | | means the consideration received by the lessor pursuant to the | 20 | | lease contract, including amounts due at lease signing and all | 21 | | monthly or other regular payments charged over the term of the | 22 | | lease. Also included in the selling price is any amount | 23 | | received by the lessor from the lessee for the leased vehicle | 24 | | that is not calculated at the time the lease is executed, | 25 | | including, but not limited to, excess mileage charges and | 26 | | charges for excess wear and tear. For sales that occur in |
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| 1 | | Illinois, with respect to any amount received by the lessor | 2 | | from the lessee for the leased vehicle that is not calculated | 3 | | at the time the lease is executed, the lessor who purchased the | 4 | | motor vehicle does not incur the tax imposed by the Use Tax Act | 5 | | on those amounts, and the retailer who makes the retail sale of | 6 | | the motor vehicle to the lessor is not required to collect the | 7 | | tax imposed by the Use Tax Act or to pay the tax imposed by | 8 | | this Act on those amounts. However, the lessor who purchased | 9 | | the motor vehicle assumes the liability for reporting and | 10 | | paying the tax on those amounts directly to the Department in | 11 | | the same form (Illinois Retailers' Occupation Tax, and local | 12 | | retailers' occupation taxes, if applicable) in which the | 13 | | retailer would have reported and paid such tax if the retailer | 14 | | had accounted for the tax to the Department. For amounts | 15 | | received by the lessor from the lessee that are not calculated | 16 | | at the time the lease is executed, the lessor must file the | 17 | | return and pay the tax to the Department by the due date | 18 | | otherwise required by this Act for returns other than | 19 | | transaction returns. If the retailer is entitled under this | 20 | | Act to a discount for collecting and remitting the tax imposed | 21 | | under this Act to the Department with respect to the sale of | 22 | | the motor vehicle to the lessor, then the right to the discount | 23 | | provided in this Act shall be transferred to the lessor with | 24 | | respect to the tax paid by the lessor for any amount received | 25 | | by the lessor from the lessee for the leased vehicle that is | 26 | | not calculated at the time the lease is executed; provided |
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| 1 | | that the discount is only allowed if the return is timely filed | 2 | | and for amounts timely paid. The "selling price" of a motor | 3 | | vehicle that is sold on or after January 1, 2015 for the | 4 | | purpose of leasing for a defined period of longer than one year | 5 | | shall not be reduced by the value of or credit given for | 6 | | traded-in tangible personal property owned by the lessor, nor | 7 | | shall it be reduced by the value of or credit given for | 8 | | traded-in tangible personal property owned by the lessee, | 9 | | regardless of whether the trade-in value thereof is assigned | 10 | | by the lessee to the lessor. In the case of a motor vehicle | 11 | | that is sold for the purpose of leasing for a defined period of | 12 | | longer than one year, the sale occurs at the time of the | 13 | | delivery of the vehicle, regardless of the due date of any | 14 | | lease payments. A lessor who incurs a Retailers' Occupation | 15 | | Tax liability on the sale of a motor vehicle coming off lease | 16 | | may not take a credit against that liability for the Use Tax | 17 | | the lessor paid upon the purchase of the motor vehicle (or for | 18 | | any tax the lessor paid with respect to any amount received by | 19 | | the lessor from the lessee for the leased vehicle that was not | 20 | | calculated at the time the lease was executed) if the selling | 21 | | price of the motor vehicle at the time of purchase was | 22 | | calculated using the definition of "selling price" as defined | 23 | | in this paragraph.
Notwithstanding any other provision of this | 24 | | Act to the contrary, lessors shall file all returns and make | 25 | | all payments required under this paragraph to the Department | 26 | | by electronic means in the manner and form as required by the |
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| 1 | | Department. This paragraph does not apply to leases of motor | 2 | | vehicles for which, at the time the lease is entered into, the | 3 | | term of the lease is not a defined period, including leases | 4 | | with a defined initial period with the option to continue the | 5 | | lease on a month-to-month or other basis beyond the initial | 6 | | defined period. | 7 | | The phrase "like kind and character" shall be liberally | 8 | | construed
(including but not limited to any form of motor | 9 | | vehicle for any form of
motor vehicle, or any kind of farm or | 10 | | agricultural implement for any other
kind of farm or | 11 | | agricultural implement), while not including a kind of item
| 12 | | which, if sold at retail by that retailer, would be exempt from | 13 | | retailers'
occupation tax and use tax as an isolated or | 14 | | occasional sale.
| 15 | | "Gross receipts" from the sales of tangible personal | 16 | | property at retail
means the total selling price or the amount | 17 | | of such sales, as hereinbefore
defined. In the case of charge | 18 | | and time sales, the amount thereof shall be
included only as | 19 | | and when payments are received by the seller.
Receipts or | 20 | | other consideration derived by a seller from
the sale, | 21 | | transfer or assignment of accounts receivable to a wholly | 22 | | owned
subsidiary will not be deemed payments prior to the time | 23 | | the purchaser
makes payment on such accounts.
| 24 | | "Department" means the Department of Revenue.
| 25 | | "Person" means any natural individual, firm, partnership, | 26 | | association,
joint stock company, joint adventure, public or |
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| 1 | | private corporation, limited
liability company, or a receiver, | 2 | | executor, trustee, guardian or other
representative appointed | 3 | | by order of any court.
| 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 constitute engaging in a
| 9 | | business of selling such tangible personal property at retail | 10 | | within the
meaning of this Act; provided that any person who is | 11 | | engaged in a business
which is not subject to the tax imposed | 12 | | by this Act because of involving
the sale of or a contract to | 13 | | sell real estate or a construction contract to
improve real | 14 | | estate or a construction contract to engineer, install, and
| 15 | | maintain an integrated system of products, but who, in the | 16 | | course of
conducting such business,
transfers tangible | 17 | | personal property to users or consumers in the finished
form | 18 | | in which it was purchased, and which does not become real | 19 | | estate or was
not engineered and installed, under any | 20 | | provision of a construction contract or
real estate sale or | 21 | | real estate sales agreement entered into with some other
| 22 | | person arising out of or because of such nontaxable business, | 23 | | is engaged in the
business of selling tangible personal | 24 | | property at retail to the extent of the
value of the tangible | 25 | | personal property so transferred. If, in such a
transaction, a | 26 | | separate charge is made for the tangible personal property so
|
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| 1 | | transferred, the value of such property, for the purpose of | 2 | | this Act, shall be
the amount so separately charged, but not | 3 | | less than the cost of such property
to the transferor; if no | 4 | | separate charge is made, the value of such property,
for the | 5 | | purposes of this Act, is the cost to the transferor of such | 6 | | tangible
personal property. Construction contracts for the | 7 | | improvement of real estate
consisting of engineering, | 8 | | installation, and maintenance of voice, data, video,
security, | 9 | | and all telecommunication systems do not constitute engaging | 10 | | in a
business of selling tangible personal property at retail | 11 | | within the meaning of
this Act if they are sold at one | 12 | | specified contract price.
| 13 | | A person who holds himself or herself out as being engaged | 14 | | (or who habitually
engages) in selling tangible personal | 15 | | property at retail is a person
engaged in the business of | 16 | | selling tangible personal property at retail
hereunder with | 17 | | respect to such sales (and not primarily in a service
| 18 | | occupation) notwithstanding the fact that such person designs | 19 | | and produces
such tangible personal property on special order | 20 | | for the purchaser and in
such a way as to render the property | 21 | | of value only to such purchaser, if
such tangible personal | 22 | | property so produced on special order serves
substantially the | 23 | | same function as stock or standard items of tangible
personal | 24 | | property that are sold at retail.
| 25 | | Persons who engage in the business of transferring | 26 | | tangible personal
property upon the redemption of trading |
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| 1 | | stamps are engaged in the business
of selling such property at | 2 | | retail and shall be liable for and shall pay
the tax imposed by | 3 | | this Act on the basis of the retail value of the
property | 4 | | transferred upon redemption of such stamps.
| 5 | | "Bulk vending machine" means a vending machine,
containing | 6 | | unsorted confections, nuts, toys, or other items designed
| 7 | | primarily to be used or played with by children
which, when a | 8 | | coin or coins of a denomination not larger than $0.50 are
| 9 | | inserted, are dispensed in equal portions, at random and
| 10 | | without selection by the customer.
| 11 | | "Remote retailer" means a retailer that does not maintain | 12 | | within this State, directly or by a subsidiary, an office, | 13 | | distribution house, sales house, warehouse or other place of | 14 | | business, or any agent or other representative operating | 15 | | within this State under the authority of the retailer or its | 16 | | subsidiary, irrespective of whether such place of business or | 17 | | agent is located here permanently or temporarily or whether | 18 | | such retailer or subsidiary is licensed to do business in this | 19 | | State. | 20 | | "Marketplace" means a physical or electronic place, forum, | 21 | | platform, application, or other method by which a marketplace | 22 | | seller sells or offers to sell items. | 23 | | "Marketplace facilitator" means a person who, pursuant to | 24 | | an agreement with an unrelated third-party marketplace seller, | 25 | | directly or indirectly through one or more affiliates | 26 | | facilitates a retail sale by an unrelated third party |
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| 1 | | marketplace seller by: | 2 | | (1) listing or advertising for sale by the marketplace | 3 | | seller in a marketplace, tangible personal property that | 4 | | is subject to tax under this Act; and | 5 | | (2) either directly or indirectly, through agreements | 6 | | or arrangements with third parties, collecting payment | 7 | | from the customer and transmitting that payment to the | 8 | | marketplace seller regardless of whether the marketplace | 9 | | facilitator receives compensation or other consideration | 10 | | in exchange for its services. | 11 | | A person who provides advertising services, including | 12 | | listing products for sale, is not considered a marketplace | 13 | | facilitator, so long as the advertising service platform or | 14 | | forum does not engage, directly or indirectly through one or | 15 | | more affiliated persons, in the activities described in | 16 | | paragraph (2) of this definition of "marketplace facilitator". | 17 | | "Marketplace seller" means a person that makes sales | 18 | | through a marketplace operated by an unrelated third party | 19 | | marketplace facilitator. | 20 | | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| 21 | | Section 15. The Illinois Vehicle Code is amended by | 22 | | changing Sections 3-819, 3-821, and 3-1001 and by adding | 23 | | Section 1-216.5 as follows: | 24 | | (625 ILCS 5/1-216.5 new) |
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| 1 | | Sec. 1-216.5. Utility trailer. A trailer, as defined in | 2 | | Section 1-209 of this Code, consisting of only one axle, | 3 | | weighing under 2,000 pounds, and used primarily for personal | 4 | | or individual use and not commercially used nor owned by a | 5 | | commercial business.
| 6 | | (625 ILCS 5/3-819) (from Ch. 95 1/2, par. 3-819)
| 7 | | Sec. 3-819. Trailer; Flat weight tax.
| 8 | | (a) Farm Trailer. Any farm trailer drawn by a motor | 9 | | vehicle of the
second division registered under paragraph (a) | 10 | | or (c) of Section 3-815 and
used exclusively by the owner for | 11 | | his own agricultural, horticultural or
livestock raising | 12 | | operations and not used for hire, or any farm trailer
utilized | 13 | | only in the transportation for-hire of seasonal, fresh, | 14 | | perishable
fruit or vegetables from farm to the point of first | 15 | | processing, and any
trailer used with a farm tractor that is | 16 | | not an implement of husbandry may
be registered under this | 17 | | paragraph in lieu of registration under paragraph
(b) of this | 18 | | Section upon the filing of a proper application and the | 19 | | payment
of the $10 registration fee and the highway use tax | 20 | | herein for use of the
public highways of this State, at the | 21 | | following rates which include the $10
registration fee:
|
|
22 | | SCHEDULE OF FEES AND TAXES |
|
23 | | Gross Weight in Lbs. |
Class |
Total Amount |
|
24 | | Including Vehicle |
|
each |
|
25 | | and Maximum Load |
|
Fiscal Year |
|
|
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| 1 | | 10,000 lbs. or less |
VDD |
$160 |
|
2 | | 10,001 to 14,000 lbs. |
VDE |
206 |
|
3 | | 14,001 to 20,000 lbs. |
VDG |
266 |
|
4 | | 20,001 to 28,000 lbs. |
VDJ |
478 |
|
5 | | 28,001 to 36,000 lbs. |
VDL |
750 |
|
6 | | An owner may only apply for and receive 2 two farm trailer
| 7 | | registrations.
| 8 | | (b) All other owners of trailers, other than apportionable | 9 | | trailers
registered under Section 3-402.1 of this Code, used | 10 | | with a motor vehicle on
the public highways, shall pay to the | 11 | | Secretary of State for each
registration year a flat weight | 12 | | tax, for the use of the public highways
of this State, at the | 13 | | following rates (which includes the registration
fee of $10 | 14 | | required by Section 3-813):
|
|
15 | | SCHEDULE OF TRAILER FLAT |
|
16 | | WEIGHT TAX REQUIRED |
|
17 | | BY LAW |
|
18 | | Gross Weight in Lbs. |
|
Total Fees |
|
19 | | Including Vehicle and |
|
each |
|
20 | | Maximum Load |
Class |
Fiscal Year |
|
21 | | 2,000 lbs. and less | UT | $36 |
|
22 | | 3,000 lbs. and less |
TA |
$36 $118 |
|
23 | | 5,000 lbs. and more than 3,000 |
TB |
154 |
|
24 | | 8,000 lbs. and more than 5,000 |
TC |
158 |
|
25 | | 10,000 lbs. and more than 8,000 |
TD |
206 |
|
26 | | 14,000 lbs. and more than 10,000 |
TE |
270 |
|
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| 1 | | 20,000 lbs. and more than 14,000 |
TG |
358 |
|
2 | | 32,000 lbs. and more than 20,000 |
TK |
822 |
|
3 | | 36,000 lbs. and more than 32,000 |
TL |
1,182 |
|
4 | | 40,000 lbs. and more than 36,000 |
TN |
1,602 |
|
5 | | Of the fees collected under this subsection, other than | 6 | | the fee collected for a Class UT or TA trailer, $1 of the fees | 7 | | shall be deposited into the Secretary of State Special | 8 | | Services Fund and $99 of the additional fees shall be | 9 | | deposited into the Road Fund. | 10 | | (c) The number of axles necessary to carry the maximum | 11 | | load provided
shall be determined from Chapter 15 of this | 12 | | Code.
| 13 | | (Source: P.A. 101-32, eff. 6-28-19.)
| 14 | | (625 ILCS 5/3-821) (from Ch. 95 1/2, par. 3-821)
| 15 | | Sec. 3-821. Miscellaneous registration and title fees.
| 16 | | (a) Except as provided under subsection (h), the fee to be | 17 | | paid to the Secretary of State for the following
certificates, | 18 | | registrations or evidences of proper registration, or for
| 19 | | corrected or duplicate documents shall be in accordance with | 20 | | the following
schedule:
|
|
21 | | Certificate of Title, except for an all-terrain |
|
|
22 | | vehicle or off-highway motorcycle, prior to July 1, | 23 | | 2019 |
$95 |
|
24 | | Certificate of Title, except for an all-terrain | | |
25 | | vehicle, off-highway motorcycle, or motor home, mini | | |
|
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| 1 | | motor home or van camper , on and after July 1, 2019 | $155 $150 | |
2 | | Certificate of Title for a motor home, mini motor | 3 | | home, or van camper , on and after July 1, 2019 | $250 |
|
4 | | Certificate of Title for an all-terrain vehicle |
|
|
5 | | or off-highway motorcycle |
$30 |
|
6 | | Certificate of Title for an all-terrain
vehicle |
|
|
7 | | or off-highway motorcycle used for production |
|
|
8 | | agriculture, or accepted by a dealer in trade | $13 | |
9 | | Certificate of Title for a low-speed vehicle | $30 |
|
10 | | Transfer of Registration or any evidence of |
|
|
11 | | proper registration
|
$25 |
|
12 | | Duplicate Registration Card for plates or other |
|
|
13 | | evidence of proper registration |
$3 |
|
14 | | Duplicate Registration Sticker or Stickers, each | $20 |
|
15 | | Duplicate Certificate of Title, prior to July 1, | 16 | | 2019 |
$95 |
|
17 | | Duplicate Certificate of Title , on and after July | 18 | | 1, 2019 | $50 |
|
19 | | Corrected Registration Card or Card for other |
|
|
20 | | evidence of proper registration |
$3 |
|
21 | | Corrected Certificate of Title |
$50 |
|
22 | | Salvage Certificate, prior to July 1, 2019 |
$4 |
|
23 | | Salvage Certificate , on and after July 1, 2019 | $20 |
|
24 | | Fleet Reciprocity Permit |
$15 |
|
25 | | Prorate Decal |
$1 |
|
26 | | Prorate Backing Plate |
$3 |
|
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| 1 | | Special Corrected Certificate of Title | $15
| |
2 | | Expedited Title Service (to be charged in | 3 | | addition to other applicable fees) | $30 | |
4 | | Dealer Lien Release Certificate of Title | $20 |
|
5 | | A special corrected certificate of title shall be issued | 6 | | (i) to remove a co-owner's name due to the death of the | 7 | | co-owner, to transfer title to a spouse if the decedent-spouse | 8 | | was the sole owner on the title, or due to a divorce; (ii) to | 9 | | change a co-owner's name due to a marriage; or (iii) due to a | 10 | | name change under Article XXI of the Code of Civil Procedure.
| 11 | | There shall be no fee paid for a Junking Certificate.
| 12 | | There shall be no fee paid for a certificate of title | 13 | | issued to a county when the vehicle is forfeited to the county | 14 | | under Article 36 of the Criminal Code of 2012. | 15 | | For purposes of this Section, the fee for a corrected | 16 | | title application that also results in the issuance of a | 17 | | duplicate title shall be the same as the fee for a duplicate | 18 | | title. | 19 | | (a-5) The Secretary of State may revoke a certificate of | 20 | | title and registration card and issue a corrected certificate | 21 | | of title and registration card, at no fee to the vehicle owner | 22 | | or lienholder, if there is proof that the vehicle | 23 | | identification number is erroneously shown on the original | 24 | | certificate of title.
| 25 | | (a-10) The Secretary of State may issue, in connection | 26 | | with the sale of a motor vehicle, a corrected title to a motor |
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| 1 | | vehicle dealer upon application and submittal of a lien | 2 | | release letter from the lienholder listed in the files of the | 3 | | Secretary. In the case of a title issued by another state, the | 4 | | dealer must submit proof from the state that issued the last | 5 | | title. The corrected title, which shall be known as a dealer | 6 | | lien release certificate of title, shall be issued in the name | 7 | | of the vehicle owner without the named lienholder. If the | 8 | | motor vehicle is currently titled in a state other than | 9 | | Illinois, the applicant must submit either (i) a letter from | 10 | | the current lienholder releasing the lien and stating that the | 11 | | lienholder has possession of the title; or (ii) a letter from | 12 | | the current lienholder releasing the lien and a copy of the | 13 | | records of the department of motor vehicles for the state in | 14 | | which the vehicle is titled, showing that the vehicle is | 15 | | titled in the name of the applicant and that no liens are | 16 | | recorded other than the lien for which a release has been | 17 | | submitted. The fee for the dealer lien release certificate of | 18 | | title is $20. | 19 | | (b) The Secretary may prescribe the maximum service charge | 20 | | to be
imposed upon an applicant for renewal of a registration | 21 | | by any person
authorized by law to receive and remit or | 22 | | transmit to the Secretary such
renewal application and fees | 23 | | therewith.
| 24 | | (c) If payment is delivered to the Office of the Secretary | 25 | | of State
as payment of any fee or tax under this Code, and such | 26 | | payment is not
honored for any reason, the registrant
or other |
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| 1 | | person tendering the payment remains liable for the payment of
| 2 | | such fee or tax. The Secretary of State may assess a service | 3 | | charge of $25
in addition to the fee or tax due and owing for | 4 | | all dishonored payments.
| 5 | | If the total amount then due and owing exceeds the sum of | 6 | | $100 and
has not been paid in full within 60 days from the date | 7 | | the dishonored payment was first delivered to the Secretary of | 8 | | State, the Secretary of State shall
assess a penalty of 25% of | 9 | | such amount remaining unpaid.
| 10 | | All amounts payable under this Section shall be computed | 11 | | to the
nearest dollar. Out of each fee collected for | 12 | | dishonored payments, $5 shall be deposited in the Secretary of | 13 | | State Special Services Fund.
| 14 | | (d) The minimum fee and tax to be paid by any applicant for
| 15 | | apportionment of a fleet of vehicles under this Code shall be | 16 | | $15
if the application was filed on or before the date | 17 | | specified by the
Secretary together with fees and taxes due. | 18 | | If an application and the
fees or taxes due are filed after the | 19 | | date specified by the Secretary,
the Secretary may prescribe | 20 | | the payment of interest at the rate of 1/2
of 1% per month or | 21 | | fraction thereof after such due date and a minimum of
$8.
| 22 | | (e) Trucks, truck tractors, truck tractors with loads, and | 23 | | motor buses,
any one of which having a combined total weight in | 24 | | excess of 12,000 lbs.
shall file an application for a Fleet | 25 | | Reciprocity Permit issued by the
Secretary of State. This | 26 | | permit shall be in the possession of any driver
operating a |
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| 1 | | vehicle on Illinois highways. Any foreign licensed vehicle of | 2 | | the
second division operating at any time in Illinois without | 3 | | a Fleet Reciprocity
Permit or other proper Illinois | 4 | | registration, shall subject the operator to the
penalties | 5 | | provided in Section 3-834 of this Code. For the purposes of | 6 | | this
Code, "Fleet Reciprocity Permit" means any second | 7 | | division motor vehicle with a
foreign license and used only in | 8 | | interstate transportation of goods. The fee
for such permit | 9 | | shall be $15 per fleet which shall include all
vehicles of the | 10 | | fleet being registered.
| 11 | | (f) For purposes of this Section, "all-terrain vehicle or | 12 | | off-highway
motorcycle used for production agriculture" means | 13 | | any all-terrain vehicle or
off-highway motorcycle used in the | 14 | | raising
of or the propagation of livestock, crops for sale for | 15 | | human consumption,
crops for livestock consumption, and | 16 | | production seed stock grown for the
propagation of feed grains | 17 | | and the husbandry of animals or for the purpose
of providing a | 18 | | food product, including the husbandry of blood stock as a
main | 19 | | source of providing a food product.
"All-terrain vehicle or | 20 | | off-highway motorcycle used in production agriculture"
also | 21 | | means any all-terrain vehicle or off-highway motorcycle used | 22 | | in animal
husbandry, floriculture, aquaculture, horticulture, | 23 | | and viticulture.
| 24 | | (g) All of the proceeds of the additional fees imposed by | 25 | | Public Act 96-34 shall be deposited into the Capital Projects | 26 | | Fund. |
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| 1 | | (h) The fee for a duplicate registration sticker or | 2 | | stickers shall be the amount required under subsection (a) or | 3 | | the vehicle's annual registration fee amount, whichever is | 4 | | less. | 5 | | (i) All of the proceeds of (1) the additional fees imposed | 6 | | by Public Act 101-32, and (2) the $5 additional fee imposed by | 7 | | this amendatory Act of the 102nd General Assembly for a | 8 | | certificate of title for a motor vehicle other than an | 9 | | all-terrain vehicle, off-highway motorcycle, or motor home, | 10 | | mini motor home, or van camper this amendatory Act of the 101st | 11 | | General Assembly shall be deposited into the Road Fund. | 12 | | (Source: P.A. 100-956, eff. 1-1-19; 101-32, eff. 6-28-19; | 13 | | 101-604, eff. 12-13-19; 101-636, eff. 6-10-20 .)
| 14 | | (625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
| 15 | | Sec. 3-1001. A tax is hereby imposed on the privilege of | 16 | | using, in this
State, any motor vehicle as defined in Section | 17 | | 1-146 of this Code acquired by
gift, transfer, or purchase, | 18 | | and having a year model designation preceding the
year of | 19 | | application for title by 5 or fewer years prior to October 1, | 20 | | 1985 and
10 or fewer years on and after October 1, 1985 and | 21 | | prior to January 1, 1988.
On and after January 1, 1988, the tax | 22 | | shall apply to all motor vehicles without
regard to model | 23 | | year. Except that the tax shall not apply
| 24 | | (i) if the use of the motor vehicle is otherwise taxed | 25 | | under the Use Tax
Act;
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| 1 | | (ii) if the motor vehicle is bought and used by a
| 2 | | governmental agency or a society, association, foundation | 3 | | or institution
organized and operated exclusively for | 4 | | charitable, religious or
educational purposes;
| 5 | | (iii) if the use of the motor vehicle is not subject to | 6 | | the Use Tax Act by
reason of subsection (a), (b), (c), (d), | 7 | | (e) or (f) of Section 3-55 of that Act
dealing with the | 8 | | prevention of actual or likely multistate taxation;
| 9 | | (iv) to implements of husbandry;
| 10 | | (v) when a junking certificate is issued pursuant to | 11 | | Section 3-117(a)
of this Code;
| 12 | | (vi) when a vehicle is subject to the replacement | 13 | | vehicle tax imposed
by Section 3-2001 of this Act;
| 14 | | (vii) when the transfer is a gift to a beneficiary in | 15 | | the
administration of an estate and the beneficiary is a | 16 | | surviving spouse.
| 17 | | Prior to January 1, 1988, the rate of tax shall be 5% of | 18 | | the selling
price for each purchase of a motor vehicle covered | 19 | | by Section 3-1001 of
this Code. Except as hereinafter | 20 | | provided, beginning January 1, 1988 and until January 1, 2022 , | 21 | | the
rate of tax shall be as follows for transactions in which | 22 | | the selling price
of the motor vehicle is less than $15,000:
|
|
23 | | Number of Years Transpired After |
Applicable Tax |
|
24 | | Model Year of Motor Vehicle |
|
|
25 | | 1 or less |
$390 |
|
26 | | 2 |
290 |
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| 1 | | 3 |
215 |
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2 | | 4 |
165 |
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3 | | 5 |
115 |
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4 | | 6 |
90 |
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5 | | 7 |
80 |
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6 | | 8 |
65 |
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7 | | 9 |
50 |
|
8 | | 10 |
40 |
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9 | | over 10 |
25 |
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10 | | Except as hereinafter provided, beginning January 1, 1988 and | 11 | | until January 1, 2022 , the rate of
tax shall be as follows for | 12 | | transactions in which the selling price of the
motor vehicle | 13 | | is $15,000 or more:
|
|
14 | | Selling Price |
Applicable Tax |
|
15 | | $15,000 - $19,999 |
$ 750 |
|
16 | | $20,000 - $24,999 |
$1,000 |
|
17 | | $25,000 - $29,999 |
$1,250 |
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18 | | $30,000 and over |
$1,500 |
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19 | | Except as hereinafter provided, beginning on January 1, | 20 | | 2022, the rate of tax shall be as follows for transactions in | 21 | | which the selling price of the motor vehicle is less than | 22 | | $15,000: | 23 | | (1) if one year or less has transpired after the model | 24 | | year of the vehicle, then the applicable tax is $465; | 25 | | (2) if 2 years have transpired after the model year of | 26 | | the motor vehicle, then the applicable tax is $365; |
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| 1 | | (3) if 3 years have transpired after the model year of | 2 | | the motor vehicle, then the applicable tax is $290; | 3 | | (4) if 4 years have transpired after the model year of | 4 | | the motor vehicle, then the applicable tax is $240; | 5 | | (5) if 5 years have transpired after the model year of | 6 | | the motor vehicle, then the applicable tax is $190; | 7 | | (6) if 6 years have transpired after the model year of | 8 | | the motor vehicle, then the applicable tax is $165; | 9 | | (7) if 7 years have transpired after the model year of | 10 | | the motor vehicle, then the applicable tax is $155; | 11 | | (8) if 8 years have transpired after the model year of | 12 | | the motor vehicle, then the applicable tax is $140; | 13 | | (9) if 9 years have transpired after the model year of | 14 | | the motor vehicle, then the applicable tax is $125; | 15 | | (10) if 10 years have transpired after the model year | 16 | | of the motor vehicle, then the applicable tax is $115; and | 17 | | (11) if more than 10 years have transpired after the | 18 | | model year of the motor vehicle, then the applicable tax | 19 | | is $100. | 20 | | Except as hereinafter provided, beginning on January 1, | 21 | | 2022, the rate of tax shall be as follows for transactions in | 22 | | which the selling price of the motor vehicle is $15,000 or | 23 | | more: | 24 | | (1) if the selling price is $15,000 or more, but less | 25 | | than $20,000, then the applicable tax shall be $850; | 26 | | (2) if the selling price is $20,000 or more, but less |
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| 1 | | than $25,000, then the applicable tax shall be $1,100; | 2 | | (3) if the selling price is $25,000 or more, but less | 3 | | than $30,000, then the applicable tax shall be $1,350; | 4 | | (4) if the selling price is $30,000 or more, but less | 5 | | than $50,000, then the applicable tax shall be $1,600; | 6 | | (5) if the selling price is $50,000 or more, but less | 7 | | than $100,000, then the applicable tax shall be $2,600; | 8 | | (6) if the selling price is $100,000 or more, but less | 9 | | than $1,000,000, then the applicable tax shall be $5,100; | 10 | | and | 11 | | (7) if the selling price is $1,000,000 or more, then | 12 | | the applicable tax shall be $10,100. | 13 | | For the following transactions, the tax rate shall be $15 for | 14 | | each
motor vehicle acquired in such transaction:
| 15 | | (i) when the transferee or purchaser is the spouse, | 16 | | mother, father,
brother, sister or child of the | 17 | | transferor;
| 18 | | (ii) when the transfer is a gift to a beneficiary in | 19 | | the administration
of an estate and the beneficiary is not | 20 | | a surviving spouse;
| 21 | | (iii) when a motor vehicle which has once been | 22 | | subjected to the Illinois
retailers' occupation tax or use | 23 | | tax is transferred in connection with the
organization, | 24 | | reorganization, dissolution or partial liquidation of an
| 25 | | incorporated or unincorporated business wherein the | 26 | | beneficial ownership
is not changed.
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| 1 | | A claim that the transaction is taxable under subparagraph | 2 | | (i) shall be
supported by such proof of family relationship as | 3 | | provided by rules of the
Department.
| 4 | | For a transaction in which a motorcycle, motor driven | 5 | | cycle or moped is acquired the tax rate shall be $25.
| 6 | | On and after October 1, 1985 and until January 1, 2022 , | 7 | | 1/12 of $5,000,000 of the moneys received
by the Department of | 8 | | Revenue pursuant to this Section shall be paid each
month into | 9 | | the Build Illinois Fund ; on and after January 1, 2022, 1/12 of | 10 | | $40,000,000 of the moneys received
by the Department of | 11 | | Revenue pursuant to this Section shall be paid each
month into | 12 | | the Build Illinois Fund; and the remainder shall be paid into | 13 | | the General
Revenue Fund.
| 14 | | The tax imposed by this Section shall be abated and no | 15 | | longer imposed
when the amount deposited to secure the bonds | 16 | | issued pursuant to the Build
Illinois Bond Act is sufficient | 17 | | to provide for the payment of the principal
of, and interest | 18 | | and premium, if any, on the bonds, as certified to the
State | 19 | | Comptroller and the Director of Revenue by the Director of the
| 20 | | Governor's Office of Management and Budget.
| 21 | | (Source: P.A. 96-554, eff. 1-1-10 .)
| 22 | | Section 99. Effective date. This Act takes effect January | 23 | | 1, 2022. |
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