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| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0098 Introduced , by Rep. Lou Lang SYNOPSIS AS INTRODUCED:
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Amends the Retailers' Occupation Tax Act. Makes a technical change in a
Section concerning the location where a retailer is deemed to be engaged in the business of selling.
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| | A BILL FOR |
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| | HB0098 | | LRB100 03950 HLH 13955 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Retailers' Occupation Tax Act is amended by |
| 5 | | changing Section 2-12 as follows:
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| 6 | | (35 ILCS 120/2-12) |
| 7 | | Sec. 2-12. Location where retailer is deemed to be engaged |
| 8 | | in the business of selling. The purpose of this Section is to |
| 9 | | specify where a retailer is deemed to be engaged in the the |
| 10 | | business of selling tangible personal property for the purposes |
| 11 | | of this Act, the Use Tax Act, the Service Use Tax Act, and the |
| 12 | | Service Occupation Tax Act, and for the purpose of collecting |
| 13 | | any other local retailers' occupation tax administered by the |
| 14 | | Department. This Section applies only with respect to the |
| 15 | | particular selling activities described in the following |
| 16 | | paragraphs. The provisions of this Section are not intended to, |
| 17 | | and shall not be interpreted to, affect where a retailer is |
| 18 | | deemed to be engaged in the business of selling with respect to |
| 19 | | any activity that is not specifically described in the |
| 20 | | following paragraphs. |
| 21 | | (1) If a purchaser who is present at the retailer's |
| 22 | | place of business, having no prior commitment to the |
| 23 | | retailer, agrees to purchase and makes payment for tangible |
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| 1 | | personal property at the retailer's place of business, then |
| 2 | | the transaction shall be deemed an over-the-counter sale |
| 3 | | occurring at the retailer's same place of business where |
| 4 | | the purchaser was present and made payment for that |
| 5 | | tangible personal property if the retailer regularly |
| 6 | | stocks the purchased tangible personal property or similar |
| 7 | | tangible personal property in the quantity, or similar |
| 8 | | quantity, for sale at the retailer's same place of business |
| 9 | | and then either (i) the purchaser takes possession of the |
| 10 | | tangible personal property at the same place of business or |
| 11 | | (ii) the retailer delivers or arranges for the tangible |
| 12 | | personal property to be delivered to the purchaser. |
| 13 | | (2) If a purchaser, having no prior commitment to the |
| 14 | | retailer, agrees to purchase tangible personal property |
| 15 | | and makes payment over the phone, in writing, or via the |
| 16 | | Internet and takes possession of the tangible personal |
| 17 | | property at the retailer's place of business, then the sale |
| 18 | | shall be deemed to have occurred at the retailer's place of |
| 19 | | business where the purchaser takes possession of the |
| 20 | | property if the retailer regularly stocks the item or |
| 21 | | similar items in the quantity, or similar quantities, |
| 22 | | purchased by the purchaser. |
| 23 | | (3) A retailer is deemed to be engaged in the business |
| 24 | | of selling food, beverages, or other tangible personal |
| 25 | | property through a vending machine at the location where |
| 26 | | the vending machine is located at the time the sale is made |
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| 1 | | if (i) the vending machine is a device operated by coin, |
| 2 | | currency, credit card, token, coupon or similar device; (2) |
| 3 | | the food, beverage or other tangible personal property is |
| 4 | | contained within the vending machine and dispensed from the |
| 5 | | vending machine; and (3) the purchaser takes possession of |
| 6 | | the purchased food, beverage or other tangible personal |
| 7 | | property immediately. |
| 8 | | (4) Minerals. A producer of coal or other mineral mined |
| 9 | | in Illinois is deemed to be engaged in the business of |
| 10 | | selling at the place where the coal or other mineral mined |
| 11 | | in Illinois is extracted from the earth. With respect to |
| 12 | | minerals (i) the term "extracted from the earth" means the |
| 13 | | location at which the coal or other mineral is extracted |
| 14 | | from the mouth of the mine, and (ii) a "mineral" includes |
| 15 | | not only coal, but also oil, sand, stone taken from a |
| 16 | | quarry, gravel and any other thing commonly regarded as a |
| 17 | | mineral and extracted from the earth. This paragraph does |
| 18 | | not apply to coal or another mineral when it is delivered |
| 19 | | or shipped by the seller to the purchaser at a point |
| 20 | | outside Illinois so that the sale is exempt under the |
| 21 | | United States Constitution as a sale in interstate or |
| 22 | | foreign commerce.
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| 23 | | (5) A retailer selling tangible personal property to a |
| 24 | | nominal lessee or bailee pursuant to a lease with a dollar |
| 25 | | or other nominal option to purchase is engaged in the |
| 26 | | business of selling at the location where the property is |