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| Public Act 098-1089 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois, | ||||
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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(Text of Section before amendment by P.A. 98-628)
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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
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
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
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
ingredient of an intentionally produced product or | ||
by-product of manufacturing.
| ||
"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.
| ||
"Purchase at retail" means the acquisition of the ownership | ||
of or title
to tangible personal property through a sale at | ||
retail.
| ||
"Purchaser" means anyone who, through a sale at retail, | ||
acquires the
ownership of tangible personal property for a | ||
valuable consideration.
| ||
"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
| ||
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.
| ||
"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.
| ||
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.
| ||
"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 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, and 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
Tax Act, and on account of the seller's | ||
duty to collect, from the purchaser,
any cigarette tax imposed | ||
by a home rule unit.
| ||
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.
| ||
"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.
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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
| ||
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.
| ||
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
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
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.
| ||
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.
| ||
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.
| ||
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
| ||
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
| ||
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
| ||
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
made, the value of | ||
such property, for the purposes of this Act, is the cost
to the | ||
transferor of such tangible personal property.
| ||
"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
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 Beginning July 1, 2011, 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.
| ||
2. A retailer soliciting orders for tangible personal | ||
property by
means of a telecommunication or television | ||
shopping system (which utilizes toll
free numbers) which is | ||
intended by the retailer to be broadcast by cable
| ||
television or other means of broadcasting, to consumers | ||
located in this State.
| ||
3. A retailer, pursuant to a contract with a | ||
broadcaster or publisher
located in this State, soliciting | ||
orders for tangible personal property by
means of | ||
advertising which is disseminated primarily to consumers | ||
located in
this State and only secondarily to bordering | ||
jurisdictions.
| ||
4. A retailer soliciting orders for tangible personal | ||
property by mail
if the solicitations are substantial and | ||
recurring and if the retailer benefits
from any banking, | ||
financing, debt collection, telecommunication, or | ||
marketing
activities occurring in this State or benefits | ||
from the location in this State
of authorized installation, | ||
servicing, or repair facilities.
| ||
5. A retailer that is owned or controlled by the same | ||
interests that own
or control any retailer engaging in | ||
business in the same or similar line of
business in this | ||
State.
| ||
6. A retailer having a franchisee or licensee operating | ||
under its trade
name if the franchisee or licensee is | ||
required to collect the tax under this
Section.
| ||
7. A retailer, pursuant to a contract with a cable | ||
television operator
located in this State, soliciting | ||
orders for tangible personal property by
means of | ||
advertising which is transmitted or distributed over a | ||
cable
television system in this State.
| ||
8. A retailer engaging in activities in Illinois, which | ||
activities in
the state in which the retail business | ||
engaging in such activities is located
would constitute | ||
maintaining a place of business in that state.
| ||
"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.
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(Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11.)
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(Text of Section after amendment by P.A. 98-628)
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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
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
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
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
ingredient of an intentionally produced product or | ||
by-product of manufacturing.
| ||
"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.
| ||
"Purchase at retail" means the acquisition of the ownership | ||
of or title
to tangible personal property through a sale at | ||
retail.
| ||
"Purchaser" means anyone who, through a sale at retail, | ||
acquires the
ownership of tangible personal property for a | ||
valuable consideration.
| ||
"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
| ||
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.
| ||
"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.
| ||
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.
| ||
"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 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, and 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
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 July 1, 2014 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 July 1, 2014 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.
| ||
"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.
| ||
"Retailer" means and includes every person engaged in the | ||
business of
making sales at retail as defined in this Section.
| ||
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
| ||
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.
| ||
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
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
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.
| ||
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
| ||
retailer under this Act with respect to such transactions.
| ||
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.
| ||
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
| ||
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
| ||
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
| ||
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
made, the value of | ||
such property, for the purposes of this Act, is the cost
to the | ||
transferor of such tangible personal property.
| ||
"Retailer maintaining a place of business in this State", | ||
or any like
term, means and includes any of the following | ||
retailers:
| ||
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
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 Beginning July 1, 2011, 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.
| ||
2. A retailer soliciting orders for tangible personal | ||
property by
means of a telecommunication or television | ||
shopping system (which utilizes toll
free numbers) which is | ||
intended by the retailer to be broadcast by cable
| ||
television or other means of broadcasting, to consumers | ||
located in this State.
| ||
3. A retailer, pursuant to a contract with a | ||
broadcaster or publisher
located in this State, soliciting | ||
orders for tangible personal property by
means of | ||
advertising which is disseminated primarily to consumers | ||
located in
this State and only secondarily to bordering | ||
jurisdictions.
| ||
4. A retailer soliciting orders for tangible personal | ||
property by mail
if the solicitations are substantial and | ||
recurring and if the retailer benefits
from any banking, | ||
financing, debt collection, telecommunication, or | ||
marketing
activities occurring in this State or benefits | ||
from the location in this State
of authorized installation, | ||
servicing, or repair facilities.
| ||
5. A retailer that is owned or controlled by the same | ||
interests that own
or control any retailer engaging in | ||
business in the same or similar line of
business in this | ||
State.
| ||
6. A retailer having a franchisee or licensee operating | ||
under its trade
name if the franchisee or licensee is | ||
required to collect the tax under this
Section.
| ||
7. A retailer, pursuant to a contract with a cable | ||
television operator
located in this State, soliciting | ||
orders for tangible personal property by
means of | ||
advertising which is transmitted or distributed over a | ||
cable
television system in this State.
| ||
8. A retailer engaging in activities in Illinois, which | ||
activities in
the state in which the retail business | ||
engaging in such activities is located
would constitute | ||
maintaining a place of business in that state.
| ||
"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.
| ||
(Source: P.A. 98-628, eff. 1-1-15.)
| ||
Section 10. The Service Use Tax Act is amended by changing | ||
Section 2 as follows:
| ||
(35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||
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, but does not include the sale or use for | ||
demonstration by him
of that property in any form as tangible | ||
personal property in the
regular course of business.
"Use" does | ||
not mean the interim
use of
tangible personal property nor the | ||
physical incorporation of tangible
personal property, 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.
| ||
"Purchased from a serviceman" means the acquisition of the | ||
ownership
of, or title to, tangible personal property through a | ||
sale of service.
| ||
"Purchaser" means any person who, through a sale of | ||
service, acquires
the ownership of, or title to, any tangible | ||
personal property.
| ||
"Cost price" means the consideration paid by the serviceman | ||
for a
purchase valued in money, whether paid in money or | ||
otherwise, including
cash, credits and services, and shall be | ||
determined without any
deduction on account of the supplier's | ||
cost of the property sold or on
account of any other expense | ||
incurred by the supplier. When a serviceman
contracts out part | ||
or all of the services required in his sale of service,
it | ||
shall be presumed that the cost price to the serviceman of the | ||
property
transferred to him or her by his or her subcontractor | ||
is equal to 50% of
the subcontractor's charges to the | ||
serviceman in the absence of proof of
the consideration paid by | ||
the subcontractor for the purchase of such property.
| ||
"Selling price" means the consideration for a sale valued | ||
in money
whether received in money or otherwise, including | ||
cash, credits and
service, and shall be determined without any | ||
deduction on account of the
serviceman's 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 duty to collect, from the
| ||
purchaser, the tax that is imposed by this Act.
| ||
"Department" means the Department of Revenue.
| ||
"Person" means any natural individual, firm, partnership,
| ||
association, joint stock company, joint venture, public or | ||
private
corporation, limited liability company, and any | ||
receiver, executor, trustee,
guardian or other representative | ||
appointed by order of any court.
| ||
"Sale of service" means any transaction except:
| ||
(1) a retail sale of tangible personal property taxable | ||
under the
Retailers' Occupation Tax Act or under the Use | ||
Tax Act.
| ||
(2) a sale of tangible personal property for the | ||
purpose of resale
made in compliance with Section 2c of the | ||
Retailers' Occupation Tax Act.
| ||
(3) except as hereinafter provided, a sale or transfer | ||
of tangible
personal property as an incident to the | ||
rendering of service for or by
any governmental body, or | ||
for or by any corporation, society,
association, | ||
foundation or institution organized and operated
| ||
exclusively for charitable, religious or educational | ||
purposes or any
not-for-profit corporation, society, | ||
association, foundation,
institution or organization which | ||
has no compensated officers or
employees and which is | ||
organized and operated primarily for the
recreation of | ||
persons 55 years of age or older. A limited liability | ||
company
may qualify for the exemption under this paragraph | ||
only if the limited
liability company is organized and | ||
operated exclusively for educational
purposes.
| ||
(4) a sale or transfer of tangible personal
property as | ||
an incident to the
rendering of service for interstate | ||
carriers for hire for use as rolling stock
moving in | ||
interstate commerce or by lessors under a lease of one year | ||
or
longer, executed or in effect at the time of purchase of | ||
personal property, to
interstate carriers for hire for use | ||
as rolling stock moving in interstate
commerce so long as | ||
so used by such interstate carriers for hire, and equipment
| ||
operated by a telecommunications provider, licensed as a | ||
common carrier by the
Federal Communications Commission, | ||
which is permanently installed in or affixed
to aircraft | ||
moving in interstate commerce.
| ||
(4a) a sale or transfer of tangible personal
property | ||
as an incident
to the rendering of service for owners, | ||
lessors, or shippers of tangible
personal property which is | ||
utilized by interstate carriers for hire for
use as rolling | ||
stock moving in interstate commerce so long as so used by
| ||
interstate carriers for hire, and equipment operated by a
| ||
telecommunications provider, licensed as a common carrier | ||
by the Federal
Communications Commission, which is | ||
permanently installed in or affixed to
aircraft moving in | ||
interstate commerce.
| ||
(4a-5) on and after July 1, 2003 and through June 30, | ||
2004, a sale or transfer of a motor vehicle
of
the
second | ||
division with a gross vehicle weight in excess of 8,000 | ||
pounds as an
incident to the rendering of service if that | ||
motor
vehicle is subject
to the commercial distribution fee | ||
imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||
Beginning on July 1, 2004 and through June 30, 2005, the | ||
use in this State of motor vehicles of the second division: | ||
(i) with a gross vehicle weight rating in excess of 8,000 | ||
pounds; (ii) that are subject to the commercial | ||
distribution fee imposed under Section 3-815.1 of the | ||
Illinois Vehicle Code; and (iii) that are primarily used | ||
for commercial purposes. Through June 30, 2005, this
| ||
exemption applies to repair and replacement parts added | ||
after the
initial
purchase of such a motor vehicle if that | ||
motor vehicle is used in a manner that
would
qualify for | ||
the rolling stock exemption otherwise provided for in this | ||
Act. For purposes of this paragraph, "used for commercial | ||
purposes" means the transportation of persons or property | ||
in furtherance of any commercial or industrial enterprise | ||
whether for-hire or not.
| ||
(5) a sale or transfer of machinery and equipment used | ||
primarily in the
process of the manufacturing or | ||
assembling, either in an existing, an expanded
or a new | ||
manufacturing facility, of tangible personal property for | ||
wholesale or
retail sale or lease, whether such sale or | ||
lease is made directly by the
manufacturer or by some other | ||
person, whether the materials used in the process
are owned | ||
by the manufacturer or some other person, or whether such | ||
sale or
lease is made apart from or as an incident to the | ||
seller's engaging in a
service occupation and the | ||
applicable tax is a Service Use Tax or Service
Occupation | ||
Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||
exemption provided by this paragraph (5) does not include | ||
machinery and equipment used in (i) the generation of | ||
electricity for wholesale or retail sale; (ii) the | ||
generation or treatment of natural or artificial gas for | ||
wholesale or retail sale that is delivered to customers | ||
through pipes, pipelines, or mains; or (iii) the treatment | ||
of water for wholesale or retail sale that is delivered to | ||
customers through pipes, pipelines, or mains. The | ||
provisions of this amendatory Act of the 98th General | ||
Assembly are declaratory of existing law as to the meaning | ||
and scope of this exemption.
| ||
(5a) the repairing, reconditioning or remodeling, for | ||
a
common carrier by rail, of tangible personal property | ||
which belongs to such
carrier for hire, and as to which | ||
such carrier receives the physical possession
of the | ||
repaired, reconditioned or remodeled item of tangible | ||
personal property
in Illinois, and which such carrier | ||
transports, or shares with another common
carrier in the | ||
transportation of such property, out of Illinois on a | ||
standard
uniform bill of lading showing the person who | ||
repaired, reconditioned or
remodeled the property to a | ||
destination outside Illinois, for use outside
Illinois.
| ||
(5b) a sale or transfer of tangible personal property | ||
which is produced by
the seller thereof on special order in | ||
such a way as to have made the
applicable tax the Service | ||
Occupation Tax or the Service Use Tax, rather than
the | ||
Retailers' Occupation Tax or the Use Tax, for an interstate | ||
carrier by rail
which receives the physical possession of | ||
such property in Illinois, and which
transports such | ||
property, or shares with another common carrier in the
| ||
transportation of such property, out of Illinois on a | ||
standard uniform bill of
lading showing the seller of the | ||
property as the shipper or consignor of such
property to a | ||
destination outside Illinois, for use outside Illinois.
| ||
(6) until July 1, 2003, a sale or transfer of | ||
distillation machinery
and equipment, sold
as a unit or kit | ||
and assembled or installed by the retailer, which
machinery | ||
and equipment is certified by the user to be used only for | ||
the
production of ethyl alcohol that will be used for | ||
consumption as motor fuel
or as a component of motor fuel | ||
for the personal use of such user and not
subject to sale | ||
or resale.
| ||
(7) at the election of any serviceman not required to | ||
be
otherwise registered as a retailer under Section 2a of | ||
the Retailers'
Occupation Tax Act, made for each fiscal | ||
year sales
of service in which the aggregate annual cost | ||
price of tangible
personal property transferred as an | ||
incident to the sales of service is
less than 35%, or 75% | ||
in the case of servicemen transferring prescription
drugs | ||
or servicemen engaged in graphic arts production, of the | ||
aggregate
annual total gross receipts from all sales of | ||
service. The purchase of
such tangible personal property by | ||
the serviceman shall be subject to tax
under the Retailers' | ||
Occupation Tax Act and the Use Tax Act.
However, if a
| ||
primary serviceman who has made the election described in | ||
this paragraph
subcontracts service work to a secondary | ||
serviceman who has also made the
election described in this | ||
paragraph, the primary serviceman does not
incur a Use Tax | ||
liability if the secondary serviceman (i) has paid or will | ||
pay
Use
Tax on his or her cost price of any tangible | ||
personal property transferred
to the primary serviceman | ||
and (ii) certifies that fact in writing to the
primary
| ||
serviceman.
| ||
Tangible personal property transferred incident to the | ||
completion of a
maintenance agreement is exempt from the tax | ||
imposed pursuant to this Act.
| ||
Exemption (5) also includes machinery and equipment used in | ||
the general
maintenance or repair of such exempt machinery and | ||
equipment or for in-house
manufacture of exempt machinery and | ||
equipment. The machinery and equipment exemption does not | ||
include machinery and equipment used in (i) the generation of | ||
electricity for wholesale or retail sale; (ii) the generation | ||
or treatment of natural or artificial gas for wholesale or | ||
retail sale that is delivered to customers through pipes, | ||
pipelines, or mains; or (iii) the treatment of water for | ||
wholesale or retail sale that is delivered to customers through | ||
pipes, pipelines, or mains. The provisions of this amendatory | ||
Act of the 98th General Assembly are declaratory of existing | ||
law as to the meaning and scope of this exemption. For the | ||
purposes of exemption
(5), each of these terms shall have the | ||
following meanings: (1) "manufacturing
process" shall mean the | ||
production of any article of tangible personal
property, | ||
whether such article is a finished product or an article for | ||
use in
the process of manufacturing or assembling a different | ||
article of tangible
personal property, by procedures commonly | ||
regarded as manufacturing,
processing, fabricating, or | ||
refining which changes some existing
material or materials into | ||
a material with a different form, use or
name. In relation to a | ||
recognized integrated business composed of a
series of | ||
operations which collectively constitute manufacturing, or
| ||
individually constitute manufacturing operations, the | ||
manufacturing
process shall be deemed to commence with the | ||
first operation or stage of
production in the series, and shall | ||
not be deemed to end until the
completion of the final product | ||
in the last operation or stage of
production in the series; and | ||
further, for purposes of exemption (5),
photoprocessing is | ||
deemed to be a manufacturing process of tangible
personal | ||
property for wholesale or retail sale; (2) "assembling process" | ||
shall
mean the production of any article of tangible personal | ||
property, whether such
article is a finished product or an | ||
article for use in the process of
manufacturing or assembling a | ||
different article of tangible personal
property, by the | ||
combination of existing materials in a manner commonly
regarded | ||
as assembling which results in a material of a different form,
| ||
use or name; (3) "machinery" shall mean major mechanical | ||
machines or
major components of such machines contributing to a | ||
manufacturing or
assembling process; and (4) "equipment" shall | ||
include any independent
device or tool separate from any | ||
machinery but essential to an
integrated manufacturing or | ||
assembly process; including computers
used primarily in a | ||
manufacturer's computer
assisted design, computer assisted | ||
manufacturing (CAD/CAM) system;
or any subunit or assembly | ||
comprising a component of any machinery or
auxiliary, adjunct | ||
or attachment parts of machinery, such as tools, dies,
jigs, | ||
fixtures, patterns and molds; or any parts which require | ||
periodic
replacement in the course of normal operation; but | ||
shall not include hand
tools.
Equipment includes chemicals or | ||
chemicals acting as catalysts but only if the
chemicals or | ||
chemicals acting as catalysts effect a direct and immediate | ||
change
upon a
product being manufactured or assembled for | ||
wholesale or retail sale or
lease.
The purchaser of such | ||
machinery and equipment who has an active
resale registration | ||
number shall furnish such number to the seller at the
time of | ||
purchase. The user of such machinery and equipment and tools
| ||
without an active resale registration number shall prepare a | ||
certificate of
exemption for each transaction stating facts | ||
establishing the exemption for
that transaction, which | ||
certificate shall be available to the Department
for inspection | ||
or audit. The Department shall prescribe the form of the
| ||
certificate.
| ||
Any informal rulings, opinions or letters issued by the | ||
Department in
response to an inquiry or request for any opinion | ||
from any person
regarding the coverage and applicability of | ||
exemption (5) to specific
devices shall be published, | ||
maintained as a public record, and made
available for public | ||
inspection and copying. If the informal ruling,
opinion or | ||
letter contains trade secrets or other confidential
| ||
information, where possible the Department shall delete such | ||
information
prior to publication. Whenever such informal | ||
rulings, opinions, or
letters contain any policy of general | ||
applicability, the Department
shall formulate and adopt such | ||
policy as a rule in accordance with the
provisions of the | ||
Illinois Administrative Procedure Act.
| ||
On and after July 1, 1987, no entity otherwise eligible | ||
under exemption
(3) of this Section shall make tax free | ||
purchases unless it has an active
exemption identification | ||
number issued by the Department.
| ||
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
service or of tangible personal | ||
property within the meaning of this Act.
| ||
"Serviceman" means any person who is engaged in the | ||
occupation of
making sales of service.
| ||
"Sale at retail" means "sale at retail" as defined in the | ||
Retailers'
Occupation Tax Act.
| ||
"Supplier" means any person who makes sales of tangible | ||
personal
property to servicemen for the purpose of resale as an | ||
incident to a
sale of service.
| ||
"Serviceman maintaining a place of business in this State", | ||
or any
like term, means and includes any serviceman:
| ||
1. 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 serviceman or its
subsidiary, | ||
irrespective of whether such place of business or agent or
| ||
other representative is located here permanently or | ||
temporarily, or
whether such serviceman or subsidiary is | ||
licensed to do business in this
State; | ||
1.1. beginning July 1, 2011, having a contract with a | ||
person located in this State under which the person, for a | ||
commission or other consideration based on the sale of | ||
service by the serviceman, directly or indirectly refers | ||
potential customers to the serviceman by providing to the | ||
potential customers a promotional code or other mechanism | ||
that allows the serviceman to track purchases referred by | ||
such persons. Examples of mechanisms that allow the | ||
serviceman 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 service by the serviceman to | ||
customers who are referred to the serviceman 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 serviceman 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, having a contract with a | ||
person located in this State under which: | ||
A. the serviceman sells the same or substantially | ||
similar line of services 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 serviceman provides a commission or other | ||
consideration to the person located in this State based | ||
upon the sale of services by the serviceman. | ||
The provisions of this paragraph 1.2 shall apply only if | ||
the cumulative gross receipts from sales of service by the | ||
serviceman 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;
| ||
2. soliciting orders for tangible personal property by | ||
means of a
telecommunication or television shopping system | ||
(which utilizes toll free
numbers) which is intended by the | ||
retailer to be broadcast by cable
television or other means | ||
of broadcasting, to consumers located in this State;
| ||
3. pursuant to a contract with a broadcaster or | ||
publisher located in this
State, soliciting orders for | ||
tangible personal property by means of advertising
which is | ||
disseminated primarily to consumers located in this State | ||
and only
secondarily to bordering jurisdictions;
| ||
4. soliciting orders for tangible personal property by | ||
mail if the
solicitations are substantial and recurring and | ||
if the retailer benefits
from any banking, financing, debt | ||
collection, telecommunication, or
marketing activities | ||
occurring in this State or benefits from the location
in | ||
this State of authorized installation, servicing, or | ||
repair facilities;
| ||
5. being owned or controlled by the same interests | ||
which own or
control any retailer engaging in business in | ||
the same or similar line of
business in this State;
| ||
6. having a franchisee or licensee operating under its | ||
trade name if
the franchisee or licensee is required to | ||
collect the tax under this Section;
| ||
7. pursuant to a contract with a cable television | ||
operator located in
this State, soliciting orders for | ||
tangible personal property by means of
advertising which is | ||
transmitted or distributed over a cable television
system | ||
in this State; or
| ||
8. engaging in activities in Illinois, which | ||
activities in the
state in which the supply business | ||
engaging in such activities is located
would constitute | ||
maintaining a place of business in that state.
| ||
(Source: P.A. 98-583, eff. 1-1-14.)
| ||
Section 95. No acceleration or delay. Where this Act makes | ||
changes in a statute that is represented in this Act by text | ||
that is not yet or no longer in effect (for example, a Section | ||
represented by multiple versions), the use of that text does | ||
not accelerate or delay the taking effect of (i) the changes | ||
made by this Act or (ii) provisions derived from any other | ||
Public Act. | ||