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Public Act 102-0353 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Use Tax Act is amended by changing Section 2 | ||||
as follows:
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(35 ILCS 105/2) (from Ch. 120, par. 439.2)
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Sec. 2. Definitions. | ||||
"Use" means the exercise by any person of any right or | ||||
power over
tangible personal property incident to the | ||||
ownership of that property,
except that it does not include | ||||
the sale of such property in any form as
tangible personal | ||||
property in the regular course of business to the extent
that | ||||
such property is not first subjected to a use for which it was
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purchased, and does not include the use of such property by its | ||||
owner for
demonstration purposes: Provided that the property | ||||
purchased is deemed to
be purchased for the purpose of resale, | ||||
despite first being used, to the
extent to which it is resold | ||||
as an ingredient of an intentionally produced
product or | ||||
by-product of manufacturing. "Use" does not mean the | ||||
demonstration
use or interim use of tangible personal property | ||||
by a retailer before he sells
that tangible personal property. | ||||
For watercraft or aircraft, if the period of
demonstration use | ||||
or interim use by the retailer exceeds 18 months,
the retailer
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shall pay on the retailers' original cost price the tax | ||
imposed by this Act,
and no credit for that tax is permitted if | ||
the watercraft or aircraft is
subsequently sold by the | ||
retailer. "Use" does not mean the physical
incorporation of | ||
tangible personal property, to the extent not first subjected
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to a use for which it was purchased, as an ingredient or | ||
constituent, into
other tangible personal property (a) which | ||
is sold in the regular course of
business or (b) which the | ||
person incorporating such ingredient or constituent
therein | ||
has undertaken at the time of such purchase to cause to be | ||
transported
in interstate commerce to destinations outside the | ||
State of Illinois: Provided
that the property purchased is | ||
deemed to be purchased for the purpose of
resale, despite | ||
first being used, to the extent to which it is resold as an
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ingredient of an intentionally produced product or by-product | ||
of manufacturing.
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"Watercraft" means a Class 2, Class 3, or Class 4 | ||
watercraft as defined in
Section 3-2 of the Boat Registration | ||
and Safety Act, a personal watercraft, or
any boat equipped | ||
with an inboard motor.
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"Purchase at retail" means the acquisition of the | ||
ownership of or title
to tangible personal property through a | ||
sale at retail.
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"Purchaser" means anyone who, through a sale at retail, | ||
acquires the
ownership of tangible personal property for a | ||
valuable consideration.
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"Sale at retail" means any transfer of the ownership of or | ||
title to
tangible personal property to a purchaser, for the | ||
purpose of use, and not
for the purpose of resale in any form | ||
as tangible personal property to the
extent not first | ||
subjected to a use for which it was purchased, for a
valuable | ||
consideration: Provided that the property purchased is deemed | ||
to
be purchased for the purpose of resale, despite first being | ||
used, to the
extent to which it is resold as an ingredient of | ||
an intentionally produced
product or by-product of | ||
manufacturing. For this purpose, slag produced as
an incident | ||
to manufacturing pig iron or steel and sold is considered to be
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an intentionally produced by-product of manufacturing. "Sale | ||
at retail"
includes any such transfer made for resale unless | ||
made in compliance with
Section 2c of the Retailers' | ||
Occupation Tax Act, as incorporated by
reference into Section | ||
12 of this Act. Transactions whereby the possession
of the | ||
property is transferred but the seller retains the title as | ||
security
for payment of the selling price are sales.
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"Sale at retail" shall also be construed to include any | ||
Illinois
florist's sales transaction in which the purchase | ||
order is received in
Illinois by a florist and the sale is for | ||
use or consumption, but the
Illinois florist has a florist in | ||
another state deliver the property to the
purchaser or the | ||
purchaser's donee in such other state.
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Nonreusable tangible personal property that is used by | ||
persons engaged in
the business of operating a restaurant, |
cafeteria, or drive-in is a sale for
resale when it is | ||
transferred to customers in the ordinary course of business
as | ||
part of the sale of food or beverages and is used to deliver, | ||
package, or
consume food or beverages, regardless of where | ||
consumption of the food or
beverages occurs. Examples of those | ||
items include, but are not limited to
nonreusable, paper and | ||
plastic cups, plates, baskets, boxes, sleeves, buckets
or | ||
other containers, utensils, straws, placemats, napkins, doggie | ||
bags, and
wrapping or packaging
materials that are transferred | ||
to customers as part of the sale of food or
beverages in the | ||
ordinary course of business.
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The purchase, employment and transfer of such tangible | ||
personal property
as newsprint and ink for the primary purpose | ||
of conveying news (with or
without other information) is not a | ||
purchase, use or sale of tangible
personal property.
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"Selling price" means the consideration for a sale valued | ||
in money
whether received in money or otherwise, including | ||
cash, credits, property
other than as hereinafter provided, | ||
and services, but, prior to January 1, 2020 and beginning | ||
again on January 1, 2022 , not including the
value of or credit | ||
given for traded-in tangible personal property where the
item | ||
that is traded-in is of like kind and character as that which | ||
is being
sold; beginning January 1, 2020 and until January 1, | ||
2022 , "selling price" includes the portion of the value of or | ||
credit given for traded-in motor vehicles of the First | ||
Division as defined in Section 1-146 of the Illinois Vehicle |
Code of like kind and character as that which is being sold | ||
that exceeds $10,000. "Selling price" shall be determined | ||
without any deduction on account of the cost
of the property | ||
sold, the cost of materials used, labor or service cost or
any | ||
other expense whatsoever, but does not include interest or | ||
finance
charges which appear as separate items on the bill of | ||
sale or sales
contract nor charges that are added to prices by | ||
sellers on account of the
seller's tax liability under the | ||
Retailers' Occupation Tax Act, or on
account of the seller's | ||
duty to collect, from the purchaser, the tax that
is imposed by | ||
this Act, or, except as otherwise provided with respect to any | ||
cigarette tax imposed by a home rule unit, on account of the | ||
seller's tax liability under any local occupation tax | ||
administered by the Department, or, except as otherwise | ||
provided with respect to any cigarette tax imposed by a home | ||
rule unit on account of the seller's duty to collect, from the | ||
purchasers, the tax that is imposed under any local use tax | ||
administered by the Department. Effective December 1, 1985, | ||
"selling price"
shall include charges that are added to prices | ||
by sellers on account of the
seller's tax liability under the | ||
Cigarette Tax Act, on account of the seller's
duty to collect, | ||
from the purchaser, the tax imposed under the Cigarette Use
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Tax Act, and on account of the seller's duty to collect, from | ||
the purchaser,
any cigarette tax imposed by a home rule unit.
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Notwithstanding any law to the contrary, for any motor | ||
vehicle, as defined in Section 1-146 of the Vehicle Code, that |
is sold on or after January 1, 2015 for the purpose of leasing | ||
the vehicle for a defined period that is longer than one year | ||
and (1) is a motor vehicle of the second division that: (A) is | ||
a self-contained motor vehicle designed or permanently | ||
converted to provide living quarters for recreational, | ||
camping, or travel use, with direct walk through access to the | ||
living quarters from the driver's seat; (B) is of the van | ||
configuration designed for the transportation of not less than | ||
7 nor more than 16 passengers; or (C) has a gross vehicle | ||
weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||
of the first division, "selling price" or "amount of sale" | ||
means the consideration received by the lessor pursuant to the | ||
lease contract, including amounts due at lease signing and all | ||
monthly or other regular payments charged over the term of the | ||
lease. Also included in the selling price is any amount | ||
received by the lessor from the lessee for the leased vehicle | ||
that is not calculated at the time the lease is executed, | ||
including, but not limited to, excess mileage charges and | ||
charges for excess wear and tear. For sales that occur in | ||
Illinois, with respect to any amount received by the lessor | ||
from the lessee for the leased vehicle that is not calculated | ||
at the time the lease is executed, the lessor who purchased the | ||
motor vehicle does not incur the tax imposed by the Use Tax Act | ||
on those amounts, and the retailer who makes the retail sale of | ||
the motor vehicle to the lessor is not required to collect the | ||
tax imposed by this Act or to pay the tax imposed by the |
Retailers' Occupation Tax Act on those amounts. However, the | ||
lessor who purchased the motor vehicle assumes the liability | ||
for reporting and paying the tax on those amounts directly to | ||
the Department in the same form (Illinois Retailers' | ||
Occupation Tax, and local retailers' occupation taxes, if | ||
applicable) in which the retailer would have reported and paid | ||
such tax if the retailer had accounted for the tax to the | ||
Department. For amounts received by the lessor from the lessee | ||
that are not calculated at the time the lease is executed, the | ||
lessor must file the return and pay the tax to the Department | ||
by the due date otherwise required by this Act for returns | ||
other than transaction returns. If the retailer is entitled | ||
under this Act to a discount for collecting and remitting the | ||
tax imposed under this Act to the Department with respect to | ||
the sale of the motor vehicle to the lessor, then the right to | ||
the discount provided in this Act shall be transferred to the | ||
lessor with respect to the tax paid by the lessor for any | ||
amount received by the lessor from the lessee for the leased | ||
vehicle that is not calculated at the time the lease is | ||
executed; provided that the discount is only allowed if the | ||
return is timely filed and for amounts timely paid. The | ||
"selling price" of a motor vehicle that is sold on or after | ||
January 1, 2015 for the purpose of leasing for a defined period | ||
of longer than one year shall not be reduced by the value of or | ||
credit given for traded-in tangible personal property owned by | ||
the lessor, nor shall it be reduced by the value of or credit |
given for traded-in tangible personal property owned by the | ||
lessee, regardless of whether the trade-in value thereof is | ||
assigned by the lessee to the lessor. In the case of a motor | ||
vehicle that is sold for the purpose of leasing for a defined | ||
period of longer than one year, the sale occurs at the time of | ||
the delivery of the vehicle, regardless of the due date of any | ||
lease payments. A lessor who incurs a Retailers' Occupation | ||
Tax liability on the sale of a motor vehicle coming off lease | ||
may not take a credit against that liability for the Use Tax | ||
the lessor paid upon the purchase of the motor vehicle (or for | ||
any tax the lessor paid with respect to any amount received by | ||
the lessor from the lessee for the leased vehicle that was not | ||
calculated at the time the lease was executed) if the selling | ||
price of the motor vehicle at the time of purchase was | ||
calculated using the definition of "selling price" as defined | ||
in this paragraph. Notwithstanding any other provision of this | ||
Act to the contrary, lessors shall file all returns and make | ||
all payments required under this paragraph to the Department | ||
by electronic means in the manner and form as required by the | ||
Department. This paragraph does not apply to leases of motor | ||
vehicles for which, at the time the lease is entered into, the | ||
term of the lease is not a defined period, including leases | ||
with a defined initial period with the option to continue the | ||
lease on a month-to-month or other basis beyond the initial | ||
defined period. | ||
The phrase "like kind and character" shall be liberally |
construed
(including but not limited to any form of motor | ||
vehicle for any form of
motor vehicle, or any kind of farm or | ||
agricultural implement for any other
kind of farm or | ||
agricultural implement), while not including a kind of item
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which, if sold at retail by that retailer, would be exempt from | ||
retailers'
occupation tax and use tax as an isolated or | ||
occasional sale.
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"Department" means the Department of Revenue.
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"Person" means any natural individual, firm, partnership, | ||
association,
joint stock company, joint adventure, public or | ||
private corporation, limited
liability company, or a
receiver, | ||
executor, trustee, guardian or other representative appointed
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by order of any court.
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"Retailer" means and includes every person engaged in the | ||
business of
making sales at retail as defined in this Section.
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A person who holds himself or herself out as being engaged | ||
(or who habitually
engages) in selling tangible personal | ||
property at retail is a retailer
hereunder with respect to | ||
such sales (and not primarily in a service
occupation) | ||
notwithstanding the fact that such person designs and produces
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such tangible personal property on special order for the | ||
purchaser and in
such a way as to render the property of value | ||
only to such purchaser, if
such tangible personal property so | ||
produced on special order serves
substantially the same | ||
function as stock or standard items of tangible
personal | ||
property that are sold at retail.
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A person whose activities are organized and conducted | ||
primarily as a
not-for-profit service enterprise, and who | ||
engages in selling tangible
personal property at retail | ||
(whether to the public or merely to members and
their guests) | ||
is a retailer with respect to such transactions, excepting
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only a person organized and operated exclusively for | ||
charitable, religious
or educational purposes either (1), to | ||
the extent of sales by such person
to its members, students, | ||
patients or inmates of tangible personal property
to be used | ||
primarily for the purposes of such person, or (2), to the | ||
extent
of sales by such person of tangible personal property | ||
which is not sold or
offered for sale by persons organized for | ||
profit. The selling of school
books and school supplies by | ||
schools at retail to students is not
"primarily for the | ||
purposes of" the school which does such selling. This
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paragraph does not apply to nor subject to taxation occasional | ||
dinners,
social or similar activities of a person organized | ||
and operated exclusively
for charitable, religious or | ||
educational purposes, whether or not such
activities are open | ||
to the public.
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A person who is the recipient of a grant or contract under | ||
Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||
serves meals to
participants in the federal Nutrition Program | ||
for the Elderly in return for
contributions established in | ||
amount by the individual participant pursuant
to a schedule of | ||
suggested fees as provided for in the federal Act is not a
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retailer under this Act with respect to such transactions.
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Persons who engage in the business of transferring | ||
tangible personal
property upon the redemption of trading | ||
stamps are retailers hereunder when
engaged in such business.
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The isolated or occasional sale of tangible personal | ||
property at retail
by a person who does not hold himself out as | ||
being engaged (or who does not
habitually engage) in selling | ||
such tangible personal property at retail or
a sale through a | ||
bulk vending machine does not make such person a retailer
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hereunder. However, any person who is engaged in a business | ||
which is not
subject to the tax imposed by the Retailers' | ||
Occupation Tax Act because
of involving the sale of or a | ||
contract to sell real estate or a
construction contract to | ||
improve real estate, but who, in the course of
conducting such | ||
business, transfers tangible personal property to users or
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consumers in the finished form in which it was purchased, and | ||
which does
not become real estate, under any provision of a | ||
construction contract or
real estate sale or real estate sales | ||
agreement entered into with some
other person arising out of | ||
or because of such nontaxable business, is a
retailer to the | ||
extent of the value of the tangible personal property so
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transferred. If, in such transaction, a separate charge is | ||
made for the
tangible personal property so transferred, the | ||
value of such property, for
the purposes of this Act, is the | ||
amount so separately charged, but not less
than the cost of | ||
such property to the transferor; if no separate charge is
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made, the value of such property, for the purposes of this Act, | ||
is the cost
to the transferor of such tangible personal | ||
property.
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"Retailer maintaining a place of business in this State", | ||
or any like
term, means and includes any of the following | ||
retailers:
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(1) A retailer having or maintaining within this | ||
State, directly or by
a subsidiary, an office, | ||
distribution house, sales house, warehouse or other
place | ||
of business, or any agent or other representative | ||
operating within this
State under the authority of the | ||
retailer or its subsidiary, irrespective of
whether such | ||
place of business or agent or other representative is | ||
located here
permanently or temporarily, or whether such | ||
retailer or subsidiary is licensed
to do business in this | ||
State. However, the ownership of property that is
located | ||
at the premises of a printer with which the retailer has | ||
contracted for
printing and that consists of the final | ||
printed product, property that becomes
a part of the final | ||
printed product, or copy from which the printed product is
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produced shall not result in the retailer being deemed to | ||
have or maintain an
office, distribution house, sales | ||
house, warehouse, or other place of business
within this | ||
State. | ||
(1.1) A retailer having a contract with a person | ||
located in this State under which the person, for a |
commission or other consideration based upon the sale of | ||
tangible personal property by the retailer, directly or | ||
indirectly refers potential customers to the retailer by | ||
providing to the potential customers a promotional code or | ||
other mechanism that allows the retailer to track | ||
purchases referred by such persons. Examples of mechanisms | ||
that allow the retailer to track purchases referred by | ||
such persons include but are not limited to the use of a | ||
link on the person's Internet website, promotional codes | ||
distributed through the person's hand-delivered or mailed | ||
material, and promotional codes distributed by the person | ||
through radio or other broadcast media. The provisions of | ||
this paragraph (1.1) shall apply only if the cumulative | ||
gross receipts from sales of tangible personal property by | ||
the retailer to customers who are referred to the retailer | ||
by all persons in this State under such contracts exceed | ||
$10,000 during the preceding 4 quarterly periods ending on | ||
the last day of March, June, September, and December. A | ||
retailer meeting the requirements of this paragraph (1.1) | ||
shall be presumed to be maintaining a place of business in | ||
this State but may rebut this presumption by submitting | ||
proof that the referrals or other activities pursued | ||
within this State by such persons were not sufficient to | ||
meet the nexus standards of the United States Constitution | ||
during the preceding 4 quarterly periods. | ||
(1.2) Beginning July 1, 2011, a retailer having a |
contract with a person located in this State under which: | ||
(A) the retailer sells the same or substantially | ||
similar line of products as the person located in this | ||
State and does so using an identical or substantially | ||
similar name, trade name, or trademark as the person | ||
located in this State; and | ||
(B) the retailer provides a commission or other | ||
consideration to the person located in this State | ||
based upon the sale of tangible personal property by | ||
the retailer. | ||
The provisions of this paragraph (1.2) shall apply | ||
only if the cumulative gross receipts from sales of | ||
tangible personal property by the retailer to customers in | ||
this State under all such contracts exceed $10,000 during | ||
the preceding 4 quarterly periods ending on the last day | ||
of March, June, September, and December.
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(2) (Blank).
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(3) (Blank).
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(4) (Blank).
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(5) (Blank).
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(6) (Blank).
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(7) (Blank).
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(8) (Blank).
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(9) Beginning October 1, 2018, a retailer making sales | ||
of tangible personal property to purchasers in Illinois | ||
from outside of Illinois if: |
(A) the cumulative gross receipts from sales of | ||
tangible personal property to purchasers in Illinois | ||
are $100,000 or more; or | ||
(B) the retailer enters into 200 or more separate | ||
transactions for the sale of tangible personal | ||
property to purchasers in Illinois. | ||
The retailer shall determine on a quarterly basis, | ||
ending on the last day of March, June, September, and | ||
December, whether he or she meets the criteria of either | ||
subparagraph (A) or (B) of this paragraph (9) for the | ||
preceding 12-month period. If the retailer meets the | ||
threshold of either subparagraph (A) or (B) for a 12-month | ||
period, he or she is considered a retailer maintaining a | ||
place of business in this State and is required to collect | ||
and remit the tax imposed under this Act and file returns | ||
for one year. At the end of that one-year period, the | ||
retailer shall determine whether he or she met the | ||
threshold of either subparagraph (A) or (B) during the | ||
preceding 12-month period. If the retailer met the | ||
criteria in either subparagraph (A) or (B) for the | ||
preceding 12-month period, he or she is considered a | ||
retailer maintaining a place of business in this State and | ||
is required to collect and remit the tax imposed under | ||
this Act and file returns for the subsequent year. If at | ||
the end of a one-year period a retailer that was required | ||
to collect and remit the tax imposed under this Act |
determines that he or she did not meet the threshold in | ||
either subparagraph (A) or (B) during the preceding | ||
12-month period, the retailer shall subsequently determine | ||
on a quarterly basis, ending on the last day of March, | ||
June, September, and December, whether he or she meets the | ||
threshold of either subparagraph (A) or (B) for the | ||
preceding 12-month period. | ||
Beginning January 1, 2020, neither the gross receipts | ||
from nor the number of separate transactions for sales of | ||
tangible personal property to purchasers in Illinois that | ||
a retailer makes through a marketplace facilitator and for | ||
which the retailer has received a certification from the | ||
marketplace facilitator pursuant to Section 2d of this Act | ||
shall be included for purposes of determining whether he | ||
or she has met the thresholds of this paragraph (9). | ||
(10) Beginning January 1, 2020, a marketplace | ||
facilitator that meets a threshold set forth in subsection | ||
(b) of Section 2d of this Act. | ||
"Bulk vending machine" means a vending machine,
containing | ||
unsorted confections, nuts, toys, or other items designed
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primarily to be used or played with by children
which, when a | ||
coin or coins of a denomination not larger than $0.50 are | ||
inserted, are dispensed in equal portions, at random and
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without selection by the customer.
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(Source: P.A. 100-587, eff. 6-4-18; 101-9, eff. 6-5-19; | ||
101-31, eff. 1-1-20; 101-604, eff. 1-1-20.)
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Section 10. The Retailers' Occupation Tax Act is amended | ||
by changing Section 1 as follows:
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(35 ILCS 120/1) (from Ch. 120, par. 440)
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Sec. 1. Definitions. "Sale at retail" means any transfer | ||
of the
ownership of or title to
tangible personal property to a | ||
purchaser, for the purpose of use or
consumption, and not for | ||
the purpose of resale in any form as tangible
personal | ||
property to the extent not first subjected to a use for which | ||
it
was purchased, for a valuable consideration: Provided that | ||
the property
purchased is deemed to be purchased for the | ||
purpose of resale, despite
first being used, to the extent to | ||
which it is resold as an ingredient of
an intentionally | ||
produced product or byproduct of manufacturing. For this
| ||
purpose, slag produced as an incident to manufacturing pig | ||
iron or steel
and sold is considered to be an intentionally | ||
produced byproduct of
manufacturing. Transactions whereby the | ||
possession of the property is
transferred but the seller | ||
retains the title as security for payment of the
selling price | ||
shall be deemed to be sales.
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"Sale at retail" shall be construed to include any | ||
transfer of the
ownership of or title to tangible personal | ||
property to a purchaser, for use
or consumption by any other | ||
person to whom such purchaser may transfer the
tangible | ||
personal property without a valuable consideration, and to |
include
any transfer, whether made for or without a valuable | ||
consideration, for
resale in any form as tangible personal | ||
property unless made in compliance
with Section 2c of this | ||
Act.
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Sales of tangible personal property, which property, to | ||
the extent not
first subjected to a use for which it was | ||
purchased, as an ingredient or
constituent, goes into and | ||
forms a part of tangible personal property
subsequently the | ||
subject of a "Sale at retail", are not sales at retail as
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defined in this Act: Provided that the property purchased is | ||
deemed to be
purchased for the purpose of resale, despite | ||
first being used, to the
extent to which it is resold as an | ||
ingredient of an intentionally produced
product or byproduct | ||
of manufacturing.
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"Sale at retail" shall be construed to include any | ||
Illinois florist's
sales transaction in which the purchase | ||
order is received in Illinois by a
florist and the sale is for | ||
use or consumption, but the Illinois florist
has a florist in | ||
another state deliver the property to the purchaser or the
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purchaser's donee in such other state.
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Nonreusable tangible personal property that is used by | ||
persons engaged in
the business of operating a restaurant, | ||
cafeteria, or drive-in is a sale for
resale when it is | ||
transferred to customers in the ordinary course of business
as | ||
part of the sale of food or beverages and is used to deliver, | ||
package, or
consume food or beverages, regardless of where |
consumption of the food or
beverages occurs. Examples of those | ||
items include, but are not limited to
nonreusable, paper and | ||
plastic cups, plates, baskets, boxes, sleeves, buckets
or | ||
other containers, utensils, straws, placemats, napkins, doggie | ||
bags, and
wrapping or packaging
materials that are transferred | ||
to customers as part of the sale of food or
beverages in the | ||
ordinary course of business.
| ||
The purchase, employment and transfer of such tangible | ||
personal property
as newsprint and ink for the primary purpose | ||
of conveying news (with or
without other information) is not a | ||
purchase, use or sale of tangible
personal property.
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A person whose activities are organized and conducted | ||
primarily as a
not-for-profit service enterprise, and who | ||
engages in selling tangible
personal property at retail | ||
(whether to the public or merely to members and
their guests) | ||
is engaged in the business of selling tangible personal
| ||
property at retail with respect to such transactions, | ||
excepting only a
person organized and operated exclusively for | ||
charitable, religious or
educational purposes either (1), to | ||
the extent of sales by such person to
its members, students, | ||
patients or inmates of tangible personal property to
be used | ||
primarily for the purposes of such person, or (2), to the | ||
extent of
sales by such person of tangible personal property | ||
which is not sold or
offered for sale by persons organized for | ||
profit. The selling of school
books and school supplies by | ||
schools at retail to students is not
"primarily for the |
purposes of" the school which does such selling. The
| ||
provisions of this paragraph shall not apply to nor subject to | ||
taxation
occasional dinners, socials or similar activities of | ||
a person organized and
operated exclusively for charitable, | ||
religious or educational purposes,
whether or not such | ||
activities are open to the public.
| ||
A person who is the recipient of a grant or contract under | ||
Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||
serves meals to
participants in the federal Nutrition Program | ||
for the Elderly in return for
contributions established in | ||
amount by the individual participant pursuant
to a schedule of | ||
suggested fees as provided for in the federal Act is not
| ||
engaged in the business of selling tangible personal property | ||
at retail
with respect to such transactions.
| ||
"Purchaser" means anyone who, through a sale at retail, | ||
acquires the
ownership of or title to tangible personal | ||
property for a valuable
consideration.
| ||
"Reseller of motor fuel" means any person engaged in the | ||
business of selling
or delivering or transferring title of | ||
motor fuel to another person
other than for use or | ||
consumption.
No person shall act as a reseller of motor fuel | ||
within this State without
first being registered as a reseller | ||
pursuant to Section 2c or a retailer
pursuant to Section 2a.
| ||
"Selling price" or the "amount of sale" means the | ||
consideration for a
sale valued in money whether received in | ||
money or otherwise, including
cash, credits, property, other |
than as hereinafter provided, and services,
but, prior to | ||
January 1, 2020 and beginning again on January 1, 2022 , not | ||
including the value of or credit given for traded-in tangible
| ||
personal property where the item that is traded-in is of like | ||
kind and
character as that which is being sold; beginning | ||
January 1, 2020 and until January 1, 2022 , "selling price" | ||
includes the portion of the value of or credit given for | ||
traded-in motor vehicles of the First Division as defined in | ||
Section 1-146 of the Illinois Vehicle Code of like kind and | ||
character as that which is being sold that exceeds $10,000. | ||
"Selling price" shall be determined without any
deduction on | ||
account of the cost of the property sold, the cost of
materials | ||
used, labor or service cost or any other expense whatsoever, | ||
but
does not include charges that are added to prices by | ||
sellers on account of
the seller's tax liability under this | ||
Act, or on account of the seller's
duty to collect, from the | ||
purchaser, the tax that is imposed by the Use Tax
Act, or, | ||
except as otherwise provided with respect to any cigarette tax | ||
imposed by a home rule unit, on account of the seller's tax | ||
liability under any local occupation tax administered by the | ||
Department, or, except as otherwise provided with respect to | ||
any cigarette tax imposed by a home rule unit on account of the | ||
seller's duty to collect, from the purchasers, the tax that is | ||
imposed under any local use tax administered by the | ||
Department.
Effective December 1, 1985, "selling price" shall | ||
include charges that
are added to prices by sellers on account |
of the seller's
tax liability under the Cigarette Tax Act, on | ||
account of the sellers'
duty to collect, from the purchaser, | ||
the tax imposed under the Cigarette
Use Tax Act, and on account | ||
of the seller's duty to collect, from the
purchaser, any | ||
cigarette tax imposed by a home rule unit.
| ||
Notwithstanding any law to the contrary, for any motor | ||
vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||
is sold on or after January 1, 2015 for the purpose of leasing | ||
the vehicle for a defined period that is longer than one year | ||
and (1) is a motor vehicle of the second division that: (A) is | ||
a self-contained motor vehicle designed or permanently | ||
converted to provide living quarters for recreational, | ||
camping, or travel use, with direct walk through access to the | ||
living quarters from the driver's seat; (B) is of the van | ||
configuration designed for the transportation of not less than | ||
7 nor more than 16 passengers; or (C) has a gross vehicle | ||
weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||
of the first division, "selling price" or "amount of sale" | ||
means the consideration received by the lessor pursuant to the | ||
lease contract, including amounts due at lease signing and all | ||
monthly or other regular payments charged over the term of the | ||
lease. Also included in the selling price is any amount | ||
received by the lessor from the lessee for the leased vehicle | ||
that is not calculated at the time the lease is executed, | ||
including, but not limited to, excess mileage charges and | ||
charges for excess wear and tear. For sales that occur in |
Illinois, with respect to any amount received by the lessor | ||
from the lessee for the leased vehicle that is not calculated | ||
at the time the lease is executed, the lessor who purchased the | ||
motor vehicle does not incur the tax imposed by the Use Tax Act | ||
on those amounts, and the retailer who makes the retail sale of | ||
the motor vehicle to the lessor is not required to collect the | ||
tax imposed by the Use Tax Act or to pay the tax imposed by | ||
this Act on those amounts. However, the lessor who purchased | ||
the motor vehicle assumes the liability for reporting and | ||
paying the tax on those amounts directly to the Department in | ||
the same form (Illinois Retailers' Occupation Tax, and local | ||
retailers' occupation taxes, if applicable) in which the | ||
retailer would have reported and paid such tax if the retailer | ||
had accounted for the tax to the Department. For amounts | ||
received by the lessor from the lessee that are not calculated | ||
at the time the lease is executed, the lessor must file the | ||
return and pay the tax to the Department by the due date | ||
otherwise required by this Act for returns other than | ||
transaction returns. If the retailer is entitled under this | ||
Act to a discount for collecting and remitting the tax imposed | ||
under this Act to the Department with respect to the sale of | ||
the motor vehicle to the lessor, then the right to the discount | ||
provided in this Act shall be transferred to the lessor with | ||
respect to the tax paid by the lessor for any amount received | ||
by the lessor from the lessee for the leased vehicle that is | ||
not calculated at the time the lease is executed; provided |
that the discount is only allowed if the return is timely filed | ||
and for amounts timely paid. The "selling price" of a motor | ||
vehicle that is sold on or after January 1, 2015 for the | ||
purpose of leasing for a defined period of longer than one year | ||
shall not be reduced by the value of or credit given for | ||
traded-in tangible personal property owned by the lessor, nor | ||
shall it be reduced by the value of or credit given for | ||
traded-in tangible personal property owned by the lessee, | ||
regardless of whether the trade-in value thereof is assigned | ||
by the lessee to the lessor. In the case of a motor vehicle | ||
that is sold for the purpose of leasing for a defined period of | ||
longer than one year, the sale occurs at the time of the | ||
delivery of the vehicle, regardless of the due date of any | ||
lease payments. A lessor who incurs a Retailers' Occupation | ||
Tax liability on the sale of a motor vehicle coming off lease | ||
may not take a credit against that liability for the Use Tax | ||
the lessor paid upon the purchase of the motor vehicle (or for | ||
any tax the lessor paid with respect to any amount received by | ||
the lessor from the lessee for the leased vehicle that was not | ||
calculated at the time the lease was executed) if the selling | ||
price of the motor vehicle at the time of purchase was | ||
calculated using the definition of "selling price" as defined | ||
in this paragraph.
Notwithstanding any other provision of this | ||
Act to the contrary, lessors shall file all returns and make | ||
all payments required under this paragraph to the Department | ||
by electronic means in the manner and form as required by the |
Department. This paragraph does not apply to leases of motor | ||
vehicles for which, at the time the lease is entered into, the | ||
term of the lease is not a defined period, including leases | ||
with a defined initial period with the option to continue the | ||
lease on a month-to-month or other basis beyond the initial | ||
defined period. | ||
The phrase "like kind and character" shall be liberally | ||
construed
(including but not limited to any form of motor | ||
vehicle for any form of
motor vehicle, or any kind of farm or | ||
agricultural implement for any other
kind of farm or | ||
agricultural implement), while not including a kind of item
| ||
which, if sold at retail by that retailer, would be exempt from | ||
retailers'
occupation tax and use tax as an isolated or | ||
occasional sale.
| ||
"Gross receipts" from the sales of tangible personal | ||
property at retail
means the total selling price or the amount | ||
of such sales, as hereinbefore
defined. In the case of charge | ||
and time sales, the amount thereof shall be
included only as | ||
and when payments are received by the seller.
Receipts or | ||
other consideration derived by a seller from
the sale, | ||
transfer or assignment of accounts receivable to a wholly | ||
owned
subsidiary will not be deemed payments prior to the time | ||
the purchaser
makes payment on such accounts.
| ||
"Department" means the Department of Revenue.
| ||
"Person" means any natural individual, firm, partnership, | ||
association,
joint stock company, joint adventure, public or |
private corporation, limited
liability company, or a receiver, | ||
executor, trustee, guardian or other
representative appointed | ||
by order of any court.
| ||
The isolated or occasional sale of tangible personal | ||
property at retail
by a person who does not hold himself out as | ||
being engaged (or who does not
habitually engage) in selling | ||
such tangible personal property at retail, or
a sale through a | ||
bulk vending machine, does not constitute engaging in a
| ||
business of selling such tangible personal property at retail | ||
within the
meaning of this Act; provided that any person who is | ||
engaged in a business
which is not subject to the tax imposed | ||
by this Act because of involving
the sale of or a contract to | ||
sell real estate or a construction contract to
improve real | ||
estate or a construction contract to engineer, install, and
| ||
maintain an integrated system of products, but who, in the | ||
course of
conducting such business,
transfers tangible | ||
personal property to users or consumers in the finished
form | ||
in which it was purchased, and which does not become real | ||
estate or was
not engineered and installed, under any | ||
provision of a construction contract or
real estate sale or | ||
real estate sales agreement entered into with some other
| ||
person arising out of or because of such nontaxable business, | ||
is engaged in the
business of selling tangible personal | ||
property at retail to the extent of the
value of the tangible | ||
personal property so transferred. If, in such a
transaction, a | ||
separate charge is made for the tangible personal property so
|
transferred, the value of such property, for the purpose of | ||
this Act, shall be
the amount so separately charged, but not | ||
less than the cost of such property
to the transferor; if no | ||
separate charge is made, the value of such property,
for the | ||
purposes of this Act, is the cost to the transferor of such | ||
tangible
personal property. Construction contracts for the | ||
improvement of real estate
consisting of engineering, | ||
installation, and maintenance of voice, data, video,
security, | ||
and all telecommunication systems do not constitute engaging | ||
in a
business of selling tangible personal property at retail | ||
within the meaning of
this Act if they are sold at one | ||
specified contract price.
| ||
A person who holds himself or herself out as being engaged | ||
(or who habitually
engages) in selling tangible personal | ||
property at retail is a person
engaged in the business of | ||
selling tangible personal property at retail
hereunder with | ||
respect to such sales (and not primarily in a service
| ||
occupation) notwithstanding the fact that such person designs | ||
and produces
such tangible personal property on special order | ||
for the purchaser and in
such a way as to render the property | ||
of value only to such purchaser, if
such tangible personal | ||
property so produced on special order serves
substantially the | ||
same function as stock or standard items of tangible
personal | ||
property that are sold at retail.
| ||
Persons who engage in the business of transferring | ||
tangible personal
property upon the redemption of trading |
stamps are engaged in the business
of selling such property at | ||
retail and shall be liable for and shall pay
the tax imposed by | ||
this Act on the basis of the retail value of the
property | ||
transferred upon redemption of such stamps.
| ||
"Bulk vending machine" means a vending machine,
containing | ||
unsorted confections, nuts, toys, or other items designed
| ||
primarily to be used or played with by children
which, when a | ||
coin or coins of a denomination not larger than $0.50 are
| ||
inserted, are dispensed in equal portions, at random and
| ||
without selection by the customer.
| ||
"Remote retailer" means a retailer that does not maintain | ||
within this State, directly or by a subsidiary, an office, | ||
distribution house, sales house, warehouse or other place of | ||
business, or any agent or other representative operating | ||
within this State under the authority of the retailer or its | ||
subsidiary, irrespective of whether such place of business or | ||
agent is located here permanently or temporarily or whether | ||
such retailer or subsidiary is licensed to do business in this | ||
State. | ||
"Marketplace" means a physical or electronic place, forum, | ||
platform, application, or other method by which a marketplace | ||
seller sells or offers to sell items. | ||
"Marketplace facilitator" means a person who, pursuant to | ||
an agreement with an unrelated third-party marketplace seller, | ||
directly or indirectly through one or more affiliates | ||
facilitates a retail sale by an unrelated third party |
marketplace seller by: | ||
(1) listing or advertising for sale by the marketplace | ||
seller in a marketplace, tangible personal property that | ||
is subject to tax under this Act; and | ||
(2) either directly or indirectly, through agreements | ||
or arrangements with third parties, collecting payment | ||
from the customer and transmitting that payment to the | ||
marketplace seller regardless of whether the marketplace | ||
facilitator receives compensation or other consideration | ||
in exchange for its services. | ||
A person who provides advertising services, including | ||
listing products for sale, is not considered a marketplace | ||
facilitator, so long as the advertising service platform or | ||
forum does not engage, directly or indirectly through one or | ||
more affiliated persons, in the activities described in | ||
paragraph (2) of this definition of "marketplace facilitator". | ||
"Marketplace seller" means a person that makes sales | ||
through a marketplace operated by an unrelated third party | ||
marketplace facilitator. | ||
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| ||
Section 15. The Illinois Vehicle Code is amended by | ||
changing Sections 3-819, 3-821, and 3-1001 and by adding | ||
Section 1-216.5 as follows: | ||
(625 ILCS 5/1-216.5 new) |
Sec. 1-216.5. Utility trailer. A trailer, as defined in | ||||||||||||||
Section 1-209 of this Code, consisting of only one axle, | ||||||||||||||
weighing under 2,000 pounds, and used primarily for personal | ||||||||||||||
or individual use and not commercially used nor owned by a | ||||||||||||||
commercial business.
| ||||||||||||||
(625 ILCS 5/3-819) (from Ch. 95 1/2, par. 3-819)
| ||||||||||||||
Sec. 3-819. Trailer; Flat weight tax.
| ||||||||||||||
(a) Farm Trailer. Any farm trailer drawn by a motor | ||||||||||||||
vehicle of the
second division registered under paragraph (a) | ||||||||||||||
or (c) of Section 3-815 and
used exclusively by the owner for | ||||||||||||||
his own agricultural, horticultural or
livestock raising | ||||||||||||||
operations and not used for hire, or any farm trailer
utilized | ||||||||||||||
only in the transportation for-hire of seasonal, fresh, | ||||||||||||||
perishable
fruit or vegetables from farm to the point of first | ||||||||||||||
processing, and any
trailer used with a farm tractor that is | ||||||||||||||
not an implement of husbandry may
be registered under this | ||||||||||||||
paragraph in lieu of registration under paragraph
(b) of this | ||||||||||||||
Section upon the filing of a proper application and the | ||||||||||||||
payment
of the $10 registration fee and the highway use tax | ||||||||||||||
herein for use of the
public highways of this State, at the | ||||||||||||||
following rates which include the $10
registration fee:
| ||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||
An owner may only apply for and receive 2 two farm trailer
| ||||||||||||||||||||||||||||||||||||||
registrations.
| ||||||||||||||||||||||||||||||||||||||
(b) All other owners of trailers, other than apportionable | ||||||||||||||||||||||||||||||||||||||
trailers
registered under Section 3-402.1 of this Code, used | ||||||||||||||||||||||||||||||||||||||
with a motor vehicle on
the public highways, shall pay to the | ||||||||||||||||||||||||||||||||||||||
Secretary of State for each
registration year a flat weight | ||||||||||||||||||||||||||||||||||||||
tax, for the use of the public highways
of this State, at the | ||||||||||||||||||||||||||||||||||||||
following rates (which includes the registration
fee of $10 | ||||||||||||||||||||||||||||||||||||||
required by Section 3-813):
| ||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||
Of the fees collected under this subsection, other than | ||||||||||||||
the fee collected for a Class UT or TA trailer, $1 of the fees | ||||||||||||||
shall be deposited into the Secretary of State Special | ||||||||||||||
Services Fund and $99 of the additional fees shall be | ||||||||||||||
deposited into the Road Fund. | ||||||||||||||
(c) The number of axles necessary to carry the maximum | ||||||||||||||
load provided
shall be determined from Chapter 15 of this | ||||||||||||||
Code.
| ||||||||||||||
(Source: P.A. 101-32, eff. 6-28-19.)
| ||||||||||||||
(625 ILCS 5/3-821) (from Ch. 95 1/2, par. 3-821)
| ||||||||||||||
Sec. 3-821. Miscellaneous registration and title fees.
| ||||||||||||||
(a) Except as provided under subsection (h), the fee to be | ||||||||||||||
paid to the Secretary of State for the following
certificates, | ||||||||||||||
registrations or evidences of proper registration, or for
| ||||||||||||||
corrected or duplicate documents shall be in accordance with | ||||||||||||||
the following
schedule:
| ||||||||||||||
|
|
| |||||||||
A special corrected certificate of title shall be issued | |||||||||
(i) to remove a co-owner's name due to the death of the | |||||||||
co-owner, to transfer title to a spouse if the decedent-spouse | |||||||||
was the sole owner on the title, or due to a divorce; (ii) to | |||||||||
change a co-owner's name due to a marriage; or (iii) due to a | |||||||||
name change under Article XXI of the Code of Civil Procedure.
| |||||||||
There shall be no fee paid for a Junking Certificate.
| |||||||||
There shall be no fee paid for a certificate of title | |||||||||
issued to a county when the vehicle is forfeited to the county | |||||||||
under Article 36 of the Criminal Code of 2012. | |||||||||
For purposes of this Section, the fee for a corrected | |||||||||
title application that also results in the issuance of a | |||||||||
duplicate title shall be the same as the fee for a duplicate | |||||||||
title. | |||||||||
(a-5) The Secretary of State may revoke a certificate of | |||||||||
title and registration card and issue a corrected certificate | |||||||||
of title and registration card, at no fee to the vehicle owner | |||||||||
or lienholder, if there is proof that the vehicle | |||||||||
identification number is erroneously shown on the original | |||||||||
certificate of title.
| |||||||||
(a-10) The Secretary of State may issue, in connection | |||||||||
with the sale of a motor vehicle, a corrected title to a motor |
vehicle dealer upon application and submittal of a lien | ||
release letter from the lienholder listed in the files of the | ||
Secretary. In the case of a title issued by another state, the | ||
dealer must submit proof from the state that issued the last | ||
title. The corrected title, which shall be known as a dealer | ||
lien release certificate of title, shall be issued in the name | ||
of the vehicle owner without the named lienholder. If the | ||
motor vehicle is currently titled in a state other than | ||
Illinois, the applicant must submit either (i) a letter from | ||
the current lienholder releasing the lien and stating that the | ||
lienholder has possession of the title; or (ii) a letter from | ||
the current lienholder releasing the lien and a copy of the | ||
records of the department of motor vehicles for the state in | ||
which the vehicle is titled, showing that the vehicle is | ||
titled in the name of the applicant and that no liens are | ||
recorded other than the lien for which a release has been | ||
submitted. The fee for the dealer lien release certificate of | ||
title is $20. | ||
(b) The Secretary may prescribe the maximum service charge | ||
to be
imposed upon an applicant for renewal of a registration | ||
by any person
authorized by law to receive and remit or | ||
transmit to the Secretary such
renewal application and fees | ||
therewith.
| ||
(c) If payment is delivered to the Office of the Secretary | ||
of State
as payment of any fee or tax under this Code, and such | ||
payment is not
honored for any reason, the registrant
or other |
person tendering the payment remains liable for the payment of
| ||
such fee or tax. The Secretary of State may assess a service | ||
charge of $25
in addition to the fee or tax due and owing for | ||
all dishonored payments.
| ||
If the total amount then due and owing exceeds the sum of | ||
$100 and
has not been paid in full within 60 days from the date | ||
the dishonored payment was first delivered to the Secretary of | ||
State, the Secretary of State shall
assess a penalty of 25% of | ||
such amount remaining unpaid.
| ||
All amounts payable under this Section shall be computed | ||
to the
nearest dollar. Out of each fee collected for | ||
dishonored payments, $5 shall be deposited in the Secretary of | ||
State Special Services Fund.
| ||
(d) The minimum fee and tax to be paid by any applicant for
| ||
apportionment of a fleet of vehicles under this Code shall be | ||
$15
if the application was filed on or before the date | ||
specified by the
Secretary together with fees and taxes due. | ||
If an application and the
fees or taxes due are filed after the | ||
date specified by the Secretary,
the Secretary may prescribe | ||
the payment of interest at the rate of 1/2
of 1% per month or | ||
fraction thereof after such due date and a minimum of
$8.
| ||
(e) Trucks, truck tractors, truck tractors with loads, and | ||
motor buses,
any one of which having a combined total weight in | ||
excess of 12,000 lbs.
shall file an application for a Fleet | ||
Reciprocity Permit issued by the
Secretary of State. This | ||
permit shall be in the possession of any driver
operating a |
vehicle on Illinois highways. Any foreign licensed vehicle of | ||
the
second division operating at any time in Illinois without | ||
a Fleet Reciprocity
Permit or other proper Illinois | ||
registration, shall subject the operator to the
penalties | ||
provided in Section 3-834 of this Code. For the purposes of | ||
this
Code, "Fleet Reciprocity Permit" means any second | ||
division motor vehicle with a
foreign license and used only in | ||
interstate transportation of goods. The fee
for such permit | ||
shall be $15 per fleet which shall include all
vehicles of the | ||
fleet being registered.
| ||
(f) For purposes of this Section, "all-terrain vehicle or | ||
off-highway
motorcycle used for production agriculture" means | ||
any all-terrain vehicle or
off-highway motorcycle used in the | ||
raising
of or the propagation of livestock, crops for sale for | ||
human consumption,
crops for livestock consumption, and | ||
production seed stock grown for the
propagation of feed grains | ||
and the husbandry of animals or for the purpose
of providing a | ||
food product, including the husbandry of blood stock as a
main | ||
source of providing a food product.
"All-terrain vehicle or | ||
off-highway motorcycle used in production agriculture"
also | ||
means any all-terrain vehicle or off-highway motorcycle used | ||
in animal
husbandry, floriculture, aquaculture, horticulture, | ||
and viticulture.
| ||
(g) All of the proceeds of the additional fees imposed by | ||
Public Act 96-34 shall be deposited into the Capital Projects | ||
Fund. |
(h) The fee for a duplicate registration sticker or | ||
stickers shall be the amount required under subsection (a) or | ||
the vehicle's annual registration fee amount, whichever is | ||
less. | ||
(i) All of the proceeds of (1) the additional fees imposed | ||
by Public Act 101-32, and (2) the $5 additional fee imposed by | ||
this amendatory Act of the 102nd General Assembly for a | ||
certificate of title for a motor vehicle other than an | ||
all-terrain vehicle, off-highway motorcycle, or motor home, | ||
mini motor home, or van camper this amendatory Act of the 101st | ||
General Assembly shall be deposited into the Road Fund. | ||
(Source: P.A. 100-956, eff. 1-1-19; 101-32, eff. 6-28-19; | ||
101-604, eff. 12-13-19; 101-636, eff. 6-10-20 .)
| ||
(625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
| ||
Sec. 3-1001. A tax is hereby imposed on the privilege of | ||
using, in this
State, any motor vehicle as defined in Section | ||
1-146 of this Code acquired by
gift, transfer, or purchase, | ||
and having a year model designation preceding the
year of | ||
application for title by 5 or fewer years prior to October 1, | ||
1985 and
10 or fewer years on and after October 1, 1985 and | ||
prior to January 1, 1988.
On and after January 1, 1988, the tax | ||
shall apply to all motor vehicles without
regard to model | ||
year. Except that the tax shall not apply
| ||
(i) if the use of the motor vehicle is otherwise taxed | ||
under the Use Tax
Act;
|
(ii) if the motor vehicle is bought and used by a
| ||||||||||
governmental agency or a society, association, foundation | ||||||||||
or institution
organized and operated exclusively for | ||||||||||
charitable, religious or
educational purposes;
| ||||||||||
(iii) if the use of the motor vehicle is not subject to | ||||||||||
the Use Tax Act by
reason of subsection (a), (b), (c), (d), | ||||||||||
(e) or (f) of Section 3-55 of that Act
dealing with the | ||||||||||
prevention of actual or likely multistate taxation;
| ||||||||||
(iv) to implements of husbandry;
| ||||||||||
(v) when a junking certificate is issued pursuant to | ||||||||||
Section 3-117(a)
of this Code;
| ||||||||||
(vi) when a vehicle is subject to the replacement | ||||||||||
vehicle tax imposed
by Section 3-2001 of this Act;
| ||||||||||
(vii) when the transfer is a gift to a beneficiary in | ||||||||||
the
administration of an estate and the beneficiary is a | ||||||||||
surviving spouse.
| ||||||||||
Prior to January 1, 1988, the rate of tax shall be 5% of | ||||||||||
the selling
price for each purchase of a motor vehicle covered | ||||||||||
by Section 3-1001 of
this Code. Except as hereinafter | ||||||||||
provided, beginning January 1, 1988 and until January 1, 2022 , | ||||||||||
the
rate of tax shall be as follows for transactions in which | ||||||||||
the selling price
of the motor vehicle is less than $15,000:
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Except as hereinafter provided, beginning January 1, 1988 and | ||||||||||||||||||||
until January 1, 2022 , the rate of
tax shall be as follows for | ||||||||||||||||||||
transactions in which the selling price of the
motor vehicle | ||||||||||||||||||||
is $15,000 or more:
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Except as hereinafter provided, beginning on January 1, | ||||||||||||||||||||
2022, the rate of tax shall be as follows for transactions in | ||||||||||||||||||||
which the selling price of the motor vehicle is less than | ||||||||||||||||||||
$15,000: | ||||||||||||||||||||
(1) if one year or less has transpired after the model | ||||||||||||||||||||
year of the vehicle, then the applicable tax is $465; | ||||||||||||||||||||
(2) if 2 years have transpired after the model year of | ||||||||||||||||||||
the motor vehicle, then the applicable tax is $365; |
(3) if 3 years have transpired after the model year of | ||
the motor vehicle, then the applicable tax is $290; | ||
(4) if 4 years have transpired after the model year of | ||
the motor vehicle, then the applicable tax is $240; | ||
(5) if 5 years have transpired after the model year of | ||
the motor vehicle, then the applicable tax is $190; | ||
(6) if 6 years have transpired after the model year of | ||
the motor vehicle, then the applicable tax is $165; | ||
(7) if 7 years have transpired after the model year of | ||
the motor vehicle, then the applicable tax is $155; | ||
(8) if 8 years have transpired after the model year of | ||
the motor vehicle, then the applicable tax is $140; | ||
(9) if 9 years have transpired after the model year of | ||
the motor vehicle, then the applicable tax is $125; | ||
(10) if 10 years have transpired after the model year | ||
of the motor vehicle, then the applicable tax is $115; and | ||
(11) if more than 10 years have transpired after the | ||
model year of the motor vehicle, then the applicable tax | ||
is $100. | ||
Except as hereinafter provided, beginning on January 1, | ||
2022, the rate of tax shall be as follows for transactions in | ||
which the selling price of the motor vehicle is $15,000 or | ||
more: | ||
(1) if the selling price is $15,000 or more, but less | ||
than $20,000, then the applicable tax shall be $850; | ||
(2) if the selling price is $20,000 or more, but less |
than $25,000, then the applicable tax shall be $1,100; | ||
(3) if the selling price is $25,000 or more, but less | ||
than $30,000, then the applicable tax shall be $1,350; | ||
(4) if the selling price is $30,000 or more, but less | ||
than $50,000, then the applicable tax shall be $1,600; | ||
(5) if the selling price is $50,000 or more, but less | ||
than $100,000, then the applicable tax shall be $2,600; | ||
(6) if the selling price is $100,000 or more, but less | ||
than $1,000,000, then the applicable tax shall be $5,100; | ||
and | ||
(7) if the selling price is $1,000,000 or more, then | ||
the applicable tax shall be $10,100. | ||
For the following transactions, the tax rate shall be $15 for | ||
each
motor vehicle acquired in such transaction:
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(i) when the transferee or purchaser is the spouse, | ||
mother, father,
brother, sister or child of the | ||
transferor;
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(ii) when the transfer is a gift to a beneficiary in | ||
the administration
of an estate and the beneficiary is not | ||
a surviving spouse;
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(iii) when a motor vehicle which has once been | ||
subjected to the Illinois
retailers' occupation tax or use | ||
tax is transferred in connection with the
organization, | ||
reorganization, dissolution or partial liquidation of an
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incorporated or unincorporated business wherein the | ||
beneficial ownership
is not changed.
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A claim that the transaction is taxable under subparagraph | ||
(i) shall be
supported by such proof of family relationship as | ||
provided by rules of the
Department.
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For a transaction in which a motorcycle, motor driven | ||
cycle or moped is acquired the tax rate shall be $25.
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On and after October 1, 1985 and until January 1, 2022 , | ||
1/12 of $5,000,000 of the moneys received
by the Department of | ||
Revenue pursuant to this Section shall be paid each
month into | ||
the Build Illinois Fund ; on and after January 1, 2022, 1/12 of | ||
$40,000,000 of the moneys received
by the Department of | ||
Revenue pursuant to this Section shall be paid each
month into | ||
the Build Illinois Fund; and the remainder shall be paid into | ||
the General
Revenue Fund.
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The tax imposed by this Section shall be abated and no | ||
longer imposed
when the amount deposited to secure the bonds | ||
issued pursuant to the Build
Illinois Bond Act is sufficient | ||
to provide for the payment of the principal
of, and interest | ||
and premium, if any, on the bonds, as certified to the
State | ||
Comptroller and the Director of Revenue by the Director of the
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Governor's Office of Management and Budget.
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(Source: P.A. 96-554, eff. 1-1-10 .)
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Section 99. Effective date. This Act takes effect January | ||
1, 2022. |