State of Illinois
90th General Assembly
Legislation

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90_HB1867

      35 ILCS 105/2             from Ch. 120, par. 439.2
      35 ILCS 120/1             from Ch. 120, par. 440
          Amends the Use Tax Act and the Retailers' Occupation  Tax
      Act.   Provides  that  "traded-in credits" shall be available
      for all transactions including but  not  limited  to  private
      party  transactions,  commercial transactions, and individual
      sales.
                                                     LRB9004757DNks
                                               LRB9004757DNks
 1        AN ACT concerning occupation and use taxes.
 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
 5    Section 2 as follows:
 6        (35 ILCS 105/2) (from Ch. 120, par. 439.2)
 7        Sec. 2.  "Use" means the exercise by any  person  of  any
 8    right  or  power  over tangible personal property incident to
 9    the ownership of that  property,  except  that  it  does  not
10    include  the  sale  of  such property in any form as tangible
11    personal property in the regular course of  business  to  the
12    extent that such property is not first subjected to a use for
13    which  it was purchased, and does not include the use of such
14    property by its owner for  demonstration  purposes:  Provided
15    that the property purchased is deemed to be purchased for the
16    purpose of resale, despite first being used, to the extent to
17    which  it  is  resold  as  an  ingredient of an intentionally
18    produced product or by-product of manufacturing.  "Use"  does
19    not  mean  the  demonstration  use or interim use of tangible
20    personal property by a retailer before he sells that tangible
21    personal property.  For watercraft or aircraft, if the period
22    of demonstration use or interim use by the  retailer  exceeds
23    18  months, the retailer shall pay on the retailers' original
24    cost price the tax imposed by this Act,  and  no  credit  for
25    that  tax  is  permitted  if  the  watercraft  or aircraft is
26    subsequently sold by the retailer.  "Use" does not  mean  the
27    physical  incorporation of tangible personal property, to the
28    extent not  first  subjected  to  a  use  for  which  it  was
29    purchased,  as  an  ingredient  or  constituent,  into  other
30    tangible  personal  property (a) which is sold in the regular
31    course of business or (b) which the person incorporating such
                            -2-                LRB9004757DNks
 1    ingredient or constituent therein has undertaken at the  time
 2    of  such  purchase  to  cause to be transported in interstate
 3    commerce to  destinations  outside  the  State  of  Illinois:
 4    Provided   that  the  property  purchased  is  deemed  to  be
 5    purchased for the purpose  of  resale,  despite  first  being
 6    used, to the extent to which it is resold as an ingredient of
 7    an   intentionally   produced   product   or   by-product  of
 8    manufacturing.
 9        "Watercraft" means  a  Class  2,  Class  3,  or  Class  4
10    watercraft as defined in Section 3-2 of the Boat Registration
11    and  Safety  Act, a personal watercraft, or any boat equipped
12    with an inboard motor.
13        "Purchase  at  retail"  means  the  acquisition  of   the
14    ownership of or title to tangible personal property through a
15    sale at retail.
16        "Purchaser"  means  anyone who, through a sale at retail,
17    acquires the ownership of tangible personal  property  for  a
18    valuable consideration.
19        "Sale  at  retail" means any transfer of the ownership of
20    or title to tangible personal property to  a  purchaser,  for
21    the  purpose of use, and not for the purpose of resale in any
22    form as tangible personal property to the  extent  not  first
23    subjected to a use for which it was purchased, for a valuable
24    consideration: Provided that the property purchased is deemed
25    to  be  purchased  for  the  purpose of resale, despite first
26    being used, to the  extent  to  which  it  is  resold  as  an
27    ingredient of an intentionally produced product or by-product
28    of  manufacturing.   For  this  purpose,  slag produced as an
29    incident to manufacturing pig  iron  or  steel  and  sold  is
30    considered  to  be  an  intentionally  produced by-product of
31    manufacturing.  "Sale at retail" includes any  such  transfer
32    made  for resale unless made in compliance with Section 2c of
33    the  Retailers'  Occupation  Tax  Act,  as  incorporated   by
34    reference  into Section 12 of this Act.  Transactions whereby
                            -3-                LRB9004757DNks
 1    the possession of the property is transferred but the  seller
 2    retains  the  title  as  security  for payment of the selling
 3    price are sales.
 4        "Sale at retail" shall also be construed to  include  any
 5    Illinois  florist's  sales  transaction in which the purchase
 6    order is received in Illinois by a florist and  the  sale  is
 7    for  use  or  consumption,  but  the  Illinois  florist has a
 8    florist  in  another  state  deliver  the  property  to   the
 9    purchaser or the purchaser's donee in such other state.
10        The  purchase,  employment  and transfer of such tangible
11    personal property  as  newsprint  and  ink  for  the  primary
12    purpose of conveying news (with or without other information)
13    is not a purchase, use or sale of tangible personal property.
14        "Selling price" means the consideration for a sale valued
15    in  money  whether  received in money or otherwise, including
16    cash, credits, property other than as  hereinafter  provided,
17    and  services, but not including the value of or credit given
18    for traded-in tangible personal property where the item  that
19    is  traded-in  is of like kind and character as that which is
20    being sold, and shall be determined without any deduction  on
21    account  of  the  cost  of  the  property  sold,  the cost of
22    materials used, labor or service cost or  any  other  expense
23    whatsoever,  but does not include interest or finance charges
24    which appear as separate items on the bill of sale  or  sales
25    contract  nor  charges that are added to prices by sellers on
26    account of the seller's tax liability under  the  "Retailers'
27    Occupation  Tax  Act",  or on account of the seller's duty to
28    collect, from the purchaser, the tax that is imposed by  this
29    Act,  or  on  account  of  the  seller's  tax liability under
30    Section 8-11-1 of the Illinois Municipal Code, as  heretofore
31    and  hereafter  amended,  or  on  account of the seller's tax
32    liability under the "County Retailers' Occupation  Tax  Act".
33    Effective  December  1,  1985,  "selling price" shall include
34    charges that are added to prices by sellers on account of the
                            -4-                LRB9004757DNks
 1    seller's tax  liability  under  the  Cigarette  Tax  Act,  on
 2    account  of the seller's duty to collect, from the purchaser,
 3    the tax imposed under the  Cigarette  Use  Tax  Act,  and  on
 4    account  of the seller's duty to collect, from the purchaser,
 5    any cigarette tax imposed by a  home  rule  unit.  "Traded-in
 6    credits"  shall  be  available for all transactions including
 7    but not limited to  private  party  transactions,  commercial
 8    transactions, and individual sales.
 9        The  phrase  "like kind and character" shall be liberally
10    construed (including but not limited to  any  form  of  motor
11    vehicle for any form of motor vehicle, or any kind of farm or
12    agricultural   implement  for  any  other  kind  of  farm  or
13    agricultural implement), while not including a kind  of  item
14    which,  if  sold  at retail by that retailer, would be exempt
15    from retailers' occupation tax and use tax as an isolated  or
16    occasional sale.
17        "Department" means the Department of Revenue.
18        "Person" means any natural individual, firm, partnership,
19    association,  joint stock company, joint adventure, public or
20    private  corporation,  limited  liability   company,   or   a
21    receiver, executor, trustee, guardian or other representative
22    appointed by order of any court.
23        "Retailer" means and includes every person engaged in the
24    business  of  making  sales  at  retail  as  defined  in this
25    Section.
26        A person who  holds  himself  or  herself  out  as  being
27    engaged  (or  who  habitually  engages)  in  selling tangible
28    personal property at retail  is  a  retailer  hereunder  with
29    respect  to  such  sales  (and  not  primarily  in  a service
30    occupation) notwithstanding the fact that such person designs
31    and produces such tangible personal property on special order
32    for the purchaser and in such a way as to render the property
33    of value only to such purchaser, if  such  tangible  personal
34    property  so  produced  on special order serves substantially
                            -5-                LRB9004757DNks
 1    the same function as stock  or  standard  items  of  tangible
 2    personal property that are sold at retail.
 3        A  person  whose  activities  are organized and conducted
 4    primarily as a not-for-profit  service  enterprise,  and  who
 5    engages  in  selling  tangible  personal  property  at retail
 6    (whether to the public or merely to members and their guests)
 7    is a retailer with respect to  such  transactions,  excepting
 8    only   a   person  organized  and  operated  exclusively  for
 9    charitable, religious or educational purposes either (1),  to
10    the  extent of sales by such person to its members, students,
11    patients or inmates of tangible personal property to be  used
12    primarily  for  the  purposes  of such person, or (2), to the
13    extent of sales by such person of tangible personal  property
14    which  is  not  sold or offered for sale by persons organized
15    for profit.  The selling of school books and school  supplies
16    by  schools  at  retail to students is not "primarily for the
17    purposes of"  the  school  which  does  such  selling.   This
18    paragraph   does   not  apply  to  nor  subject  to  taxation
19    occasional dinners, social or similar activities of a  person
20    organized  and operated exclusively for charitable, religious
21    or educational purposes, whether or not such  activities  are
22    open to the public.
23        A  person  who  is  the  recipient of a grant or contract
24    under Title VII of the Older  Americans  Act  of  1965  (P.L.
25    92-258)  and  serves  meals  to  participants  in the federal
26    Nutrition Program for the Elderly in return for contributions
27    established in amount by the individual participant  pursuant
28    to  a  schedule  of  suggested  fees  as  provided for in the
29    federal Act is not a retailer under this Act with respect  to
30    such transactions.
31        Persons  who  engage  in  the  business  of  transferring
32    tangible  personal  property  upon  the redemption of trading
33    stamps are retailers hereunder when engaged in such business.
34        The isolated or  occasional  sale  of  tangible  personal
                            -6-                LRB9004757DNks
 1    property  at retail by a person who does not hold himself out
 2    as being engaged (or  who  does  not  habitually  engage)  in
 3    selling  such  tangible personal property at retail or a sale
 4    through a bulk vending machine does not make  such  person  a
 5    retailer  hereunder.  However, any person who is engaged in a
 6    business which is not subject  to  the  tax  imposed  by  the
 7    "Retailers' Occupation Tax Act" because of involving the sale
 8    of  or  a  contract  to  sell  real  estate or a construction
 9    contract to improve real estate, but who, in  the  course  of
10    conducting   such   business,   transfers  tangible  personal
11    property to users or consumers in the finished form in  which
12    it  was  purchased,  and  which  does not become real estate,
13    under any provision of a construction contract or real estate
14    sale or real estate sales agreement entered  into  with  some
15    other  person  arising  out  of or because of such nontaxable
16    business, is a retailer to the extent of  the  value  of  the
17    tangible  personal  property  so  transferred.   If,  in such
18    transaction, a separate  charge  is  made  for  the  tangible
19    personal property so transferred, the value of such property,
20    for  the  purposes  of  this Act, is the amount so separately
21    charged, but not less than the cost of such property  to  the
22    transferor;  if no separate charge is made, the value of such
23    property, for the purposes of this Act, is the  cost  to  the
24    transferor of such tangible personal property.
25        "Retailer maintaining a place of business in this State",
26    or  any  like  term,  means and includes any of the following
27    retailers:
28             1.  A retailer having  or  maintaining  within  this
29        State,   directly   or   by   a  subsidiary,  an  office,
30        distribution house, sales house, warehouse or other place
31        of  business,  or  any  agent  or  other   representative
32        operating  within  this  State under the authority of the
33        retailer or its subsidiary, irrespective of whether  such
34        place  of  business  or  agent or other representative is
                            -7-                LRB9004757DNks
 1        located here permanently or temporarily, or whether  such
 2        retailer or subsidiary is licensed to do business in this
 3        State. However, the ownership of property that is located
 4        at  the premises of a printer with which the retailer has
 5        contracted for printing and that consists  of  the  final
 6        printed  product,  property  that  becomes  a part of the
 7        final printed product, or copy  from  which  the  printed
 8        product  is  produced  shall  not  result in the retailer
 9        being deemed to have or maintain an office,  distribution
10        house, sales house, warehouse, or other place of business
11        within this State.
12             2.  A   retailer   soliciting  orders  for  tangible
13        personal property by  means  of  a  telecommunication  or
14        television  shopping  system  (which  utilizes  toll free
15        numbers)  which  is  intended  by  the  retailer  to   be
16        broadcast   by   cable   television  or  other  means  of
17        broadcasting, to consumers located in this State.
18             3.  A  retailer,  pursuant  to  a  contract  with  a
19        broadcaster  or  publisher   located   in   this   State,
20        soliciting orders for tangible personal property by means
21        of   advertising   which  is  disseminated  primarily  to
22        consumers located in this State and only  secondarily  to
23        bordering jurisdictions.
24             4.  A   retailer   soliciting  orders  for  tangible
25        personal  property  by  mail  if  the  solicitations  are
26        substantial and recurring and if  the  retailer  benefits
27        from    any    banking,   financing,   debt   collection,
28        telecommunication, or marketing activities  occurring  in
29        this State or benefits from the location in this State of
30        authorized installation, servicing, or repair facilities.
31             5.  A  retailer  that  is owned or controlled by the
32        same interests that own or control any retailer  engaging
33        in  business  in  the same or similar line of business in
34        this State.
                            -8-                LRB9004757DNks
 1             6.  A  retailer  having  a  franchisee  or  licensee
 2        operating under its  trade  name  if  the  franchisee  or
 3        licensee  is  required  to  collect  the  tax  under this
 4        Section.
 5             7.  A retailer, pursuant to a contract with a  cable
 6        television  operator  located  in  this State, soliciting
 7        orders  for  tangible  personal  property  by  means   of
 8        advertising  which  is  transmitted or distributed over a
 9        cable television system in this State.
10             8.  A retailer engaging in activities  in  Illinois,
11        which  activities  in  the  state  in  which  the  retail
12        business  engaging  in  such  activities is located would
13        constitute maintaining a place of business in that state.
14        "Bulk vending machine" means a  nonelectrically  operated
15    vending  machine,  containing  unsorted  confections, nuts or
16    other merchandise which, when a coin of  a  denomination  not
17    larger  than  one  cent  is  inserted, are dispensed in equal
18    portions, at random and without selection by the customer.
19    (Source: P.A. 88-194; 88-361; 88-480; 88-660,  eff.  9-16-94;
20    88-669, eff. 11-29-94; 88-670, eff. 12-2-94.)
21        Section 10.  The Retailers' Occupation Tax Act is amended
22    by changing Section 1 as follows:
23        (35 ILCS 120/1) (from Ch. 120, par. 440)
24        Sec.   1.   Definitions.   "Sale  at  retail"  means  any
25    transfer of the ownership of or title  to  tangible  personal
26    property   to   a  purchaser,  for  the  purpose  of  use  or
27    consumption, and not for the purpose of resale in any form as
28    tangible personal property to the extent not first  subjected
29    to  a  use  for  which  it  was  purchased,  for  a  valuable
30    consideration:   Provided  that  the  property  purchased  is
31    deemed  to  be  purchased  for the purpose of resale, despite
32    first being used, to the extent to which it is resold  as  an
                            -9-                LRB9004757DNks
 1    ingredient  of an intentionally produced product or byproduct
 2    of manufacturing.  For this  purpose,  slag  produced  as  an
 3    incident  to  manufacturing  pig  iron  or  steel and sold is
 4    considered to  be  an  intentionally  produced  byproduct  of
 5    manufacturing.   Transactions  whereby  the possession of the
 6    property is transferred but the seller retains the  title  as
 7    security  for payment of the selling price shall be deemed to
 8    be sales.
 9        "Sale at  retail"  shall  be  construed  to  include  any
10    transfer  of  the  ownership of or title to tangible personal
11    property to a purchaser, for use or consumption by any  other
12    person  to  whom  such  purchaser  may  transfer the tangible
13    personal property without a valuable  consideration,  and  to
14    include  any transfer, whether made for or without a valuable
15    consideration, for resale in any form  as  tangible  personal
16    property  unless  made  in compliance with Section 2c of this
17    Act.
18        Sales of tangible personal property, which  property,  to
19    the  extent  not  first  subjected  to a use for which it was
20    purchased, as an ingredient or  constituent,  goes  into  and
21    forms  a  part of tangible personal property subsequently the
22    subject of a "Sale at retail", are not  sales  at  retail  as
23    defined in this Act:  Provided that the property purchased is
24    deemed  to  be  purchased  for the purpose of resale, despite
25    first being used, to the extent to which it is resold  as  an
26    ingredient  of an intentionally produced product or byproduct
27    of manufacturing.
28        "Sale at  retail"  shall  be  construed  to  include  any
29    Illinois  florist's  sales  transaction in which the purchase
30    order is received in Illinois by a florist and  the  sale  is
31    for  use  or  consumption,  but  the  Illinois  florist has a
32    florist  in  another  state  deliver  the  property  to   the
33    purchaser or the purchaser's donee in such other state.
34        The  purchase,  employment  and transfer of such tangible
                            -10-               LRB9004757DNks
 1    personal property  as  newsprint  and  ink  for  the  primary
 2    purpose of conveying news (with or without other information)
 3    is not a purchase, use or sale of tangible personal property.
 4        A  person  whose  activities  are organized and conducted
 5    primarily as a not-for-profit  service  enterprise,  and  who
 6    engages  in  selling  tangible  personal  property  at retail
 7    (whether to the public or merely to members and their guests)
 8    is engaged in  the  business  of  selling  tangible  personal
 9    property   at  retail  with  respect  to  such  transactions,
10    excepting only a person organized  and  operated  exclusively
11    for charitable, religious or educational purposes either (1),
12    to  the  extent  of  sales  by  such  person  to its members,
13    students, patients or inmates of tangible  personal  property
14    to be used primarily for the purposes of such person, or (2),
15    to  the  extent  of sales by such person of tangible personal
16    property which is not sold or offered  for  sale  by  persons
17    organized for profit.  The selling of school books and school
18    supplies  by  schools at retail to students is not "primarily
19    for the purposes of" the school which does such selling.  The
20    provisions of this paragraph shall not apply to  nor  subject
21    to taxation occasional dinners, socials or similar activities
22    of   a   person   organized   and  operated  exclusively  for
23    charitable, religious or educational purposes, whether or not
24    such activities are open to the public.
25        A person who is the recipient  of  a  grant  or  contract
26    under  Title  VII  of  the  Older Americans Act of 1965 (P.L.
27    92-258) and serves  meals  to  participants  in  the  federal
28    Nutrition Program for the Elderly in return for contributions
29    established  in amount by the individual participant pursuant
30    to a schedule of  suggested  fees  as  provided  for  in  the
31    federal  Act  is  not  engaged  in  the  business  of selling
32    tangible personal property at retail  with  respect  to  such
33    transactions.
34        "Purchaser"  means  anyone who, through a sale at retail,
                            -11-               LRB9004757DNks
 1    acquires the ownership  of  or  title  to  tangible  personal
 2    property for a valuable consideration.
 3        "Reseller  of motor fuel" means any person engaged in the
 4    business of selling or delivering or  transferring  title  of
 5    motor   fuel   to  another  person  other  than  for  use  or
 6    consumption. No person shall act as a reseller of motor  fuel
 7    within  this  State  without  first  being  registered  as  a
 8    reseller  pursuant  to  Section  2c or a retailer pursuant to
 9    Section 2a.
10        "Selling  price"  or  the  "amount  of  sale"  means  the
11    consideration for a sale valued in money whether received  in
12    money  or otherwise, including cash, credits, property, other
13    than as hereinafter provided, and services, but not including
14    the value of or credit given for traded-in tangible  personal
15    property where the item that is traded-in is of like kind and
16    character   as  that  which  is  being  sold,  and  shall  be
17    determined without any deduction on account of  the  cost  of
18    the  property  sold,  the  cost  of  materials used, labor or
19    service cost or any other expense whatsoever,  but  does  not
20    include  charges  that  are  added  to  prices  by sellers on
21    account of the seller's tax liability under this Act,  or  on
22    account  of the seller's duty to collect, from the purchaser,
23    the tax that is imposed by the Use Tax Act, or on account  of
24    the  seller's  tax  liability  under  Section  8-11-1  of the
25    Illinois Municipal Code, as heretofore and hereafter amended,
26    or on account of the seller's tax liability under the  County
27    Retailers'  Occupation Tax Act, or on account of the seller's
28    tax liability  under  the  Home  Rule  Municipal  Soft  Drink
29    Retailers'  Occupation Tax, or on account of the seller's tax
30    liability  under  any  tax  imposed   under   the   "Regional
31    Transportation  Authority  Act",  approved December 12, 1973.
32    Effective December 1, 1985,  "selling  price"  shall  include
33    charges that are added to prices by sellers on account of the
34    seller's  tax  liability  under  the  Cigarette  Tax  Act, on
                            -12-               LRB9004757DNks
 1    account of the sellers' duty to collect, from the  purchaser,
 2    the  tax  imposed  under  the  Cigarette  Use Tax Act, and on
 3    account of the seller's duty to collect, from the  purchaser,
 4    any  cigarette  tax  imposed  by a home rule unit. "Traded-in
 5    credits" shall be available for  all  transactions  including
 6    but  not  limited  to  private party transactions, commercial
 7    transactions, and individual sales.
 8        The phrase "like kind and character" shall  be  liberally
 9    construed  (including  but  not  limited to any form of motor
10    vehicle for any form of motor vehicle, or any kind of farm or
11    agricultural  implement  for  any  other  kind  of  farm   or
12    agricultural  implement),  while not including a kind of item
13    which, if sold at retail by that retailer,  would  be  exempt
14    from  retailers' occupation tax and use tax as an isolated or
15    occasional sale.
16        "Gross receipts" from  the  sales  of  tangible  personal
17    property  at  retail  means  the  total  selling price or the
18    amount of such sales, as hereinbefore defined.  In  the  case
19    of  charge  and  time  sales,  the  amount  thereof  shall be
20    included only as  and  when  payments  are  received  by  the
21    seller.  Receipts  or other consideration derived by a seller
22    from the sale, transfer or assignment of accounts  receivable
23    to  a  wholly  owned  subsidiary  will not be deemed payments
24    prior to  the  time  the  purchaser  makes  payment  on  such
25    accounts.
26        "Department" means the Department of Revenue.
27        "Person" means any natural individual, firm, partnership,
28    association,  joint stock company, joint adventure, public or
29    private  corporation,  limited  liability   company,   or   a
30    receiver, executor, trustee, guardian or other representative
31    appointed by order of any court.
32        The  isolated  or  occasional  sale  of tangible personal
33    property at retail by a person who does not hold himself  out
34    as  being  engaged  (or  who  does  not habitually engage) in
                            -13-               LRB9004757DNks
 1    selling such tangible personal property at retail, or a  sale
 2    through  a bulk vending machine, does not constitute engaging
 3    in a business of selling such tangible personal  property  at
 4    retail  within  the  meaning  of  this Act; provided that any
 5    person who is engaged in a business which is not  subject  to
 6    the  tax imposed by this Act because of involving the sale of
 7    or a contract to sell real estate or a construction  contract
 8    to   improve  real  estate  or  a  construction  contract  to
 9    engineer, install,  and  maintain  an  integrated  system  of
10    products, but who, in the course of conducting such business,
11    transfers tangible personal property to users or consumers in
12    the  finished  form in which it was purchased, and which does
13    not become real estate or was not engineered  and  installed,
14    under any provision of a construction contract or real estate
15    sale  or  real  estate sales agreement entered into with some
16    other person arising out of or  because  of  such  nontaxable
17    business,  is  engaged  in  the  business of selling tangible
18    personal property at retail to the extent of the value of the
19    tangible personal property so  transferred.  If,  in  such  a
20    transaction,  a  separate  charge  is  made  for the tangible
21    personal property so transferred, the value of such property,
22    for  the  purpose  of  this  Act,  shall  be  the  amount  so
23    separately charged, but  not  less  than  the  cost  of  such
24    property  to  the  transferor; if no separate charge is made,
25    the value of such property, for the purposes of this Act,  is
26    the   cost  to  the  transferor  of  such  tangible  personal
27    property. Construction contracts for the improvement of  real
28    estate   consisting   of   engineering,   installation,   and
29    maintenance   of   voice,  data,  video,  security,  and  all
30    telecommunication systems do not  constitute  engaging  in  a
31    business  of  selling  tangible  personal  property at retail
32    within the meaning of this  Act  if  they  are  sold  at  one
33    specified contract price.
34        A  person  who  holds  himself  or  herself  out as being
                            -14-               LRB9004757DNks
 1    engaged (or  who  habitually  engages)  in  selling  tangible
 2    personal  property  at  retail  is  a  person  engaged in the
 3    business of selling  tangible  personal  property  at  retail
 4    hereunder  with respect to such sales (and not primarily in a
 5    service occupation) notwithstanding the fact that such person
 6    designs and  produces  such  tangible  personal  property  on
 7    special  order  for  the  purchaser  and  in such a way as to
 8    render the property of value only to such purchaser, if  such
 9    tangible  personal  property  so  produced  on  special order
10    serves substantially the same function as stock  or  standard
11    items of tangible personal property that are sold at retail.
12        Persons  who  engage  in  the  business  of  transferring
13    tangible  personal  property  upon  the redemption of trading
14    stamps are engaged in the business of selling  such  property
15    at  retail  and  shall  be  liable  for and shall pay the tax
16    imposed by this Act on the basis of the retail value  of  the
17    property transferred upon redemption of such stamps.
18        "Bulk  vending  machine" means a nonelectrically operated
19    vending machine, containing  unsorted  confections,  nuts  or
20    other  merchandise  which,  when a coin of a denomination not
21    larger than one cent is  inserted,  are  dispensed  in  equal
22    portions, at random and without selection by the customer.
23    (Source: P.A. 88-420; 88-480; 88-507; 88-670, eff. 12-2-94.)

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