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Public Act 103-0983


 

Public Act 0983 103RD GENERAL ASSEMBLY

 


 
Public Act 103-0983
 
SB3362 EnrolledLRB103 34186 HLH 66294 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Retailers' Occupation Tax Act is amended by
changing Sections 1, 2, and 2-12 as follows:
 
    (35 ILCS 120/1)  (from Ch. 120, par. 440)
    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.
    "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.
    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
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.
    "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
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.
    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.
    "Retailer maintaining a place of business in this State"
has the meaning given to that term in Section 2 of the Use Tax
Act.
    "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 facilitator" does not include any person
licensed under the Auction License Act. This exemption does
not apply to any person who is an Internet auction listing
service, as defined by the Auction License Act.
    "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;
102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
5-13-22.)
 
    (35 ILCS 120/2)  (from Ch. 120, par. 441)
    Sec. 2. Tax imposed.
    (a) A tax is imposed upon persons engaged in the business
of selling at retail tangible personal property, including
computer software, and including photographs, negatives, and
positives that are the product of photoprocessing, but not
including products of photoprocessing produced for use in
motion pictures for public commercial exhibition. Beginning
January 1, 2001, prepaid telephone calling arrangements shall
be considered tangible personal property subject to the tax
imposed under this Act regardless of the form in which those
arrangements may be embodied, transmitted, or fixed by any
method now known or hereafter developed. Sales of (1)
electricity delivered to customers by wire; (2) natural or
artificial gas that is delivered to customers through pipes,
pipelines, or mains; and (3) water that is delivered to
customers through pipes, pipelines, or mains are not subject
to tax under this Act. The provisions of this amendatory Act of
the 98th General Assembly are declaratory of existing law as
to the meaning and scope of this Act.
    (b) Beginning on January 1, 2021, a remote retailer is
engaged in the occupation of selling at retail in Illinois for
purposes of this Act, if:
        (1) the cumulative gross receipts from sales of
    tangible personal property to purchasers in Illinois are
    $100,000 or more; or
        (2) the retailer enters into 200 or more separate
    transactions for the sale of tangible personal property to
    purchasers in Illinois.
    Remote retailers that meet or exceed the threshold in
either paragraph (1) or (2) above shall be liable for all
applicable State retailers' and locally imposed retailers'
occupation taxes administered by the Department on all retail
sales to Illinois purchasers.
    The remote 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
paragraph (1) or (2) of this subsection for the preceding
12-month period. If the retailer meets the criteria of either
paragraph (1) or (2) 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 all retailers' occupation tax imposed by
local taxing jurisdictions in Illinois, provided such local
taxes are administered by the Department, and to file all
applicable returns for one year. At the end of that one-year
period, the retailer shall determine whether the retailer met
the criteria of either paragraph (1) or (2) for the preceding
12-month period. If the retailer met the criteria in either
paragraph (1) or (2) 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 all
applicable State and local retailers' occupation taxes 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 criteria in either paragraph (1) or (2) during
the preceding 12-month period, then 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 criteria of either paragraph (1) or (2) for
the preceding 12-month period.
    (b-2) Beginning on January 1, 2025, a retailer maintaining
a place of business in this State that makes retail sales of
tangible personal property to Illinois customers from a
location or locations outside of Illinois is engaged in the
occupation of selling at retail in Illinois for the purposes
of this Act. Those retailers are liable for all applicable
State and locally imposed retailers' occupation taxes
administered by the Department on retail sales made by those
retailers to Illinois customers from locations outside of
Illinois.
    (b-5) For the purposes of this Section, neither the gross
receipts from nor the number of separate transactions for
sales of tangible personal property to purchasers in Illinois
that a remote retailer makes through a marketplace facilitator
shall be included for the purposes of determining whether he
or she has met the thresholds of subsection (b) of this Section
so long as the remote retailer has received certification from
the marketplace facilitator that the marketplace facilitator
is legally responsible for payment of tax on such sales.
    (b-10) A remote retailer that is required to collect taxes
imposed under the Use Tax Act on retail sales made to Illinois
purchasers or a retailer maintaining a place of business in
this State that is required to collect taxes imposed under the
Use Tax Act on retail sales made to Illinois purchasers shall
be liable to the Department for such taxes, except when the
remote retailer or retailer maintaining a place of business in
this State is relieved of the duty to remit such taxes by
virtue of having paid to the Department taxes imposed by this
Act in accordance with this Section upon his or her gross
receipts from such sales.
    (c) Marketplace facilitators engaged in the business of
selling at retail tangible personal property in Illinois.
Beginning January 1, 2021, a marketplace facilitator is
engaged in the occupation of selling at retail tangible
personal property in Illinois for purposes of this Act if,
during the previous 12-month period:
        (1) the cumulative gross receipts from sales of
    tangible personal property on its own behalf or on behalf
    of marketplace sellers to purchasers in Illinois equals
    $100,000 or more; or
        (2) the marketplace facilitator enters into 200 or
    more separate transactions on its own behalf or on behalf
    of marketplace sellers for the sale of tangible personal
    property to purchasers in Illinois, regardless of whether
    the marketplace facilitator or marketplace sellers for
    whom such sales are facilitated are registered as
    retailers in this State.
    A marketplace facilitator who meets either paragraph (1)
or (2) of this subsection is required to remit the applicable
State retailers' occupation taxes under this Act and local
retailers' occupation taxes administered by the Department on
all taxable sales of tangible personal property made by the
marketplace facilitator or facilitated for marketplace sellers
to customers in this State. A marketplace facilitator selling
or facilitating the sale of tangible personal property to
customers in this State is subject to all applicable
procedures and requirements of this Act.
    The marketplace facilitator 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
paragraph (1) or (2) of this subsection for the preceding
12-month period. If the marketplace facilitator meets the
criteria of either paragraph (1) or (2) for a 12-month period,
he or she is considered a retailer maintaining a place of
business in this State and is required to remit the tax imposed
under this Act and all retailers' occupation tax imposed by
local taxing jurisdictions in Illinois, provided such local
taxes are administered by the Department, and to file all
applicable returns for one year. At the end of that one-year
period, the marketplace facilitator shall determine whether it
met the criteria of either paragraph (1) or (2) for the
preceding 12-month period. If the marketplace facilitator met
the criteria in either paragraph (1) or (2) for the preceding
12-month period, it is considered a retailer maintaining a
place of business in this State and is required to collect and
remit all applicable State and local retailers' occupation
taxes and file returns for the subsequent year. If at the end
of a one-year period a marketplace facilitator that was
required to collect and remit the tax imposed under this Act
determines that he or she did not meet the criteria in either
paragraph (1) or (2) during the preceding 12-month period, the
marketplace facilitator shall subsequently 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 paragraph (1) or (2) for the preceding 12-month
period.
    A marketplace facilitator shall be entitled to any
credits, deductions, or adjustments to the sales price
otherwise provided to the marketplace seller, in addition to
any such adjustments provided directly to the marketplace
facilitator. This Section pertains to, but is not limited to,
adjustments such as discounts, coupons, and rebates. In
addition, a marketplace facilitator shall be entitled to the
retailers' discount provided in Section 3 of the Retailers'
Occupation Tax Act on all marketplace sales, and the
marketplace seller shall not include sales made through a
marketplace facilitator when computing any retailers' discount
on remaining sales. Marketplace facilitators shall report and
remit the applicable State and local retailers' occupation
taxes on sales facilitated for marketplace sellers separately
from any sales or use tax collected on taxable retail sales
made directly by the marketplace facilitator or its
affiliates.
    The marketplace facilitator is liable for the remittance
of all applicable State retailers' occupation taxes under this
Act and local retailers' occupation taxes administered by the
Department on sales through the marketplace and is subject to
audit on all such sales. The Department shall not audit
marketplace sellers for their marketplace sales where a
marketplace facilitator remitted the applicable State and
local retailers' occupation taxes unless the marketplace
facilitator seeks relief as a result of incorrect information
provided to the marketplace facilitator by a marketplace
seller as set forth in this Section. The marketplace
facilitator shall not be held liable for tax on any sales made
by a marketplace seller that take place outside of the
marketplace and which are not a part of any agreement between a
marketplace facilitator and a marketplace seller. In addition,
marketplace facilitators shall not be held liable to State and
local governments of Illinois for having charged and remitted
an incorrect amount of State and local retailers' occupation
tax if, at the time of the sale, the tax is computed based on
erroneous data provided by the State in database files on tax
rates, boundaries, or taxing jurisdictions or incorrect
information provided to the marketplace facilitator by the
marketplace seller.
    (d) A marketplace facilitator shall:
        (1) certify to each marketplace seller that the
    marketplace facilitator assumes the rights and duties of a
    retailer under this Act with respect to sales made by the
    marketplace seller through the marketplace; and
        (2) remit taxes imposed by this Act as required by
    this Act for sales made through the marketplace.
    (e) A marketplace seller shall retain books and records
for all sales made through a marketplace in accordance with
the requirements of this Act.
    (f) A marketplace facilitator is subject to audit on all
marketplace sales for which it is considered to be the
retailer, but shall not be liable for tax or subject to audit
on sales made by marketplace sellers outside of the
marketplace.
    (g) A marketplace facilitator required to collect taxes
imposed under the Use Tax Act on marketplace sales made to
Illinois purchasers shall be liable to the Department for such
taxes, except when the marketplace facilitator is relieved of
the duty to remit such taxes by virtue of having paid to the
Department taxes imposed by this Act in accordance with this
Section upon his or her gross receipts from such sales.
    (h) Nothing in this Section shall allow the Department to
collect retailers' occupation taxes from both the marketplace
facilitator and marketplace seller on the same transaction.
    (i) If, for any reason, the Department is prohibited from
enforcing the marketplace facilitator's duty under this Act to
remit taxes pursuant to this Section, the duty to remit such
taxes remains with the marketplace seller.
    (j) Nothing in this Section affects the obligation of any
consumer to remit use tax for any taxable transaction for
which a certified service provider acting on behalf of a
remote retailer or a marketplace facilitator does not collect
and remit the appropriate tax.
    (k) Nothing in this Section shall allow the Department to
collect the retailers' occupation tax from both the
marketplace facilitator and the marketplace seller.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
    (35 ILCS 120/2-12)
    Sec. 2-12. Location where retailer is deemed to be engaged
in the business of selling. The purpose of this Section is to
specify where a retailer is deemed to be engaged in the
business of selling tangible personal property for the
purposes of this Act, the Use Tax Act, the Service Use Tax Act,
and the Service Occupation Tax Act, and for the purpose of
collecting any other local retailers' occupation tax
administered by the Department. This Section applies only with
respect to the particular selling activities described in the
following paragraphs. The provisions of this Section are not
intended to, and shall not be interpreted to, affect where a
retailer is deemed to be engaged in the business of selling
with respect to any activity that is not specifically
described in the following paragraphs.
        (1) If a purchaser who is present at the retailer's
    place of business, having no prior commitment to the
    retailer, agrees to purchase and makes payment for
    tangible personal property at the retailer's place of
    business, then the transaction shall be deemed an
    over-the-counter sale occurring at the retailer's same
    place of business where the purchaser was present and made
    payment for that tangible personal property if the
    retailer regularly stocks the purchased tangible personal
    property or similar tangible personal property in the
    quantity, or similar quantity, for sale at the retailer's
    same place of business and then either (i) the purchaser
    takes possession of the tangible personal property at the
    same place of business or (ii) the retailer delivers or
    arranges for the tangible personal property to be
    delivered to the purchaser.
        (2) If a purchaser, having no prior commitment to the
    retailer, agrees to purchase tangible personal property
    and makes payment over the phone, in writing, or via the
    Internet and takes possession of the tangible personal
    property at the retailer's place of business, then the
    sale shall be deemed to have occurred at the retailer's
    place of business where the purchaser takes possession of
    the property if the retailer regularly stocks the item or
    similar items in the quantity, or similar quantities,
    purchased by the purchaser.
        (3) A retailer is deemed to be engaged in the business
    of selling food, beverages, or other tangible personal
    property through a vending machine at the location where
    the vending machine is located at the time the sale is made
    if (i) the vending machine is a device operated by coin,
    currency, credit card, token, coupon or similar device;
    (2) the food, beverage or other tangible personal property
    is contained within the vending machine and dispensed from
    the vending machine; and (3) the purchaser takes
    possession of the purchased food, beverage or other
    tangible personal property immediately.
        (4) Minerals. A producer of coal or other mineral
    mined in Illinois is deemed to be engaged in the business
    of selling at the place where the coal or other mineral
    mined in Illinois is extracted from the earth. With
    respect to minerals (i) the term "extracted from the
    earth" means the location at which the coal or other
    mineral is extracted from the mouth of the mine, and (ii) a
    "mineral" includes not only coal, but also oil, sand,
    stone taken from a quarry, gravel and any other thing
    commonly regarded as a mineral and extracted from the
    earth. This paragraph does not apply to coal or another
    mineral when it is delivered or shipped by the seller to
    the purchaser at a point outside Illinois so that the sale
    is exempt under the United States Constitution as a sale
    in interstate or foreign commerce.
        (5) A retailer selling tangible personal property to a
    nominal lessee or bailee pursuant to a lease with a dollar
    or other nominal option to purchase is engaged in the
    business of selling at the location where the property is
    first delivered to the lessee or bailee for its intended
    use.
        (6) Beginning on January 1, 2021, a remote retailer
    making retail sales of tangible personal property that
    meet or exceed the thresholds established in paragraph (1)
    or (2) of subsection (b) of Section 2 of this Act is
    engaged in the business of selling at the Illinois
    location to which the tangible personal property is
    shipped or delivered or at which possession is taken by
    the purchaser.
        (7) Beginning January 1, 2021, a marketplace
    facilitator facilitating sales of tangible personal
    property that meet or exceed one of the thresholds
    established in paragraph (1) or (2) of subsection (c) of
    Section 2 of this Act is deemed to be engaged in the
    business of selling at the Illinois location to which the
    tangible personal property is shipped or delivered or at
    which possession is taken by the purchaser when the sale
    is made by a marketplace seller on the marketplace
    facilitator's marketplace.
        (8) Beginning on January 1, 2025, for sales that would
    otherwise be sourced outside of this State, a retailer
    maintaining a place of business in this State that makes
    retail sales of tangible personal property to Illinois
    customers from a location or locations outside of Illinois
    is engaged in the business of selling at the Illinois
    location to which the tangible personal property is
    shipped or delivered or at which possession is taken by
    the purchaser.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
    Section 99. Effective date. This Act takes effect January
1, 2025.

Effective Date: 1/1/2025