103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4054

 

Introduced 4/27/2023, by Rep. Kelly M. Burke

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/2d
35 ILCS 110/2d
35 ILCS 120/1  from Ch. 120, par. 440

    Amends the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act. Provides that a delivery network company that delivers tangible personal property on behalf of a marketplace seller or a marketplace serviceman is not considered a marketplace facilitator. Provides that a delivery network company is a business that facilitates, through the use of an Internet website or mobile application, the delivery of local products. Provides that a local product is any item, including food, other than freight, mail, or a package to which postage has been affixed. Effective immediately.


LRB103 31848 HLH 60483 b

 

 

A BILL FOR

 

HB4054LRB103 31848 HLH 60483 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
52d as follows:
 
6    (35 ILCS 105/2d)
7    Sec. 2d. Marketplace facilitators and marketplace sellers.
8    (a) As used in this Section:
9    "Affiliate" means a person that, with respect to another
10person: (i) has a direct or indirect ownership interest of
11more than 5 percent in the other person; or (ii) is related to
12the other person because a third person, or a group of third
13persons who are affiliated with each other as defined in this
14subsection, holds a direct or indirect ownership interest of
15more than 5% in the related person.
16    "Delivery network company" means a business that
17facilitates, through the use of an Internet website or mobile
18application, the delivery of local products.
19    "Local product" means any item, including food, other than
20freight, mail, or a package to which postage has been affixed.
21    "Marketplace" means a physical or electronic place, forum,
22platform, application, or other method by which a marketplace
23seller sells or offers to sell items.

 

 

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1    "Marketplace facilitator" means a person who, pursuant to
2an agreement with an unrelated third-party marketplace seller,
3directly or indirectly through one or more affiliates
4facilitates a retail sale by an unrelated third party
5marketplace seller by:
6        (1) listing or advertising for sale by the marketplace
7    seller in a marketplace, tangible personal property that
8    is subject to tax under this Act; and
9        (2) either directly or indirectly, through agreements
10    or arrangements with third parties, collecting payment
11    from the customer and transmitting that payment to the
12    marketplace seller regardless of whether the marketplace
13    facilitator receives compensation or other consideration
14    in exchange for its services.
15    "Marketplace facilitator" does not include a delivery
16network company that delivers tangible personal property on
17behalf of a marketplace seller that is engaged in business as a
18retail vendor.
19    "Marketplace seller" means a person that sells or offers
20to sell tangible personal property through a marketplace
21operated by an unrelated third-party marketplace facilitator.
22    (b) Beginning on January 1, 2020, a marketplace
23facilitator who meets either of the following thresholds is
24considered the retailer for each sale of tangible personal
25property made through its marketplace:
26        (1) the cumulative gross receipts from sales of

 

 

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1    tangible personal property to purchasers in Illinois by
2    the marketplace facilitator and by marketplace sellers
3    selling through the marketplace are $100,000 or more; or
4        (2) the marketplace facilitator and marketplace
5    sellers selling through the marketplace cumulatively enter
6    into 200 or more separate transactions for the sale of
7    tangible personal property to purchasers in Illinois.
8    A marketplace facilitator shall determine on a quarterly
9basis, ending on the last day of March, June, September, and
10December, whether he or she meets the threshold of either
11paragraph (1) or (2) of this subsection (b) for the preceding
1212-month period. If the marketplace facilitator meets the
13threshold of either paragraph (1) or (2) for a 12-month
14period, he or she is considered a retailer maintaining a place
15of business in this State and is required to collect and remit
16the tax imposed under this Act and file returns for one year.
17At the end of that one-year period, the marketplace
18facilitator shall determine whether the marketplace
19facilitator met the threshold of either paragraph (1) or (2)
20during the preceding 12-month period. If the marketplace
21facilitator met the threshold in either paragraph (1) or (2)
22for the preceding 12-month period, he or she is considered a
23retailer maintaining a place of business in this State and is
24required to collect and remit the tax imposed under this Act
25and file returns for the subsequent year. If at the end of a
26one-year period a marketplace facilitator that was required to

 

 

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1collect and remit the tax imposed under this Act determines
2that he or she did not meet the threshold in either paragraph
3(1) or (2) during the preceding 12-month period, the
4marketplace facilitator shall subsequently determine on a
5quarterly basis, ending on the last day of March, June,
6September, and December, whether he or she meets the threshold
7of either paragraph (1) or (2) for the preceding 12-month
8period.
9    (c) Beginning on January 1, 2020 a marketplace facilitator
10considered to be the retailer pursuant to subsection (b) of
11this Section is considered the retailer with respect to each
12sale made through its marketplace and is liable for collecting
13and remitting the tax under this Act on all such sales. The
14marketplace facilitator who is considered to be the retailer
15under subsection (b) for sales made through its marketplace
16has all the rights and duties, and is required to comply with
17the same requirements and procedures, as all other retailers
18maintaining a place of business in this State who are
19registered or who are required to be registered to collect and
20remit the tax imposed by this Act with respect to such sales.
21    (d) A marketplace facilitator shall:
22        (1) certify to each marketplace seller that the
23    marketplace facilitator assumes the rights and duties of a
24    retailer under this Act with respect to sales made by the
25    marketplace seller through the marketplace; and
26        (2) collect taxes imposed by this Act as required by

 

 

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1    Section 3-45 of this Act for sales made through the
2    marketplace.
3    (e) A marketplace seller shall retain books and records
4for all sales made through a marketplace in accordance with
5the requirements of Section 11.
6    (f) A marketplace seller shall furnish to the marketplace
7facilitator information that is necessary for the marketplace
8facilitator to correctly collect and remit taxes for a retail
9sale. The information may include a certification that an item
10being sold is taxable, not taxable, exempt from taxation, or
11taxable at a specified rate. A marketplace seller shall be
12held harmless for liability for the tax imposed under this Act
13when a marketplace facilitator fails to correctly collect and
14remit tax after having been provided with information by a
15marketplace seller to correctly collect and remit taxes
16imposed under this Act.
17    (g) If the marketplace facilitator demonstrates to the
18satisfaction of the Department that its failure to correctly
19collect and remit tax on a retail sale resulted from the
20marketplace facilitator's good faith reliance on incorrect or
21insufficient information provided by a marketplace seller, it
22shall be relieved of liability for the tax on that retail sale.
23In this case, a marketplace seller is liable for any resulting
24tax due.
25    (h) (Blank).
26    (i) This Section does not affect the tax liability of a

 

 

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1purchaser under this Act.
2    (j) (Blank).
3    (k) A marketplace facilitator required to collect taxes
4imposed under this Section and this Act on retail sales made
5through its marketplace shall be liable to the Department for
6such taxes, except when the marketplace facilitator is
7relieved of the duty to remit such taxes by virtue of having
8paid to the Department taxes imposed by the Retailers'
9Occupation Tax Act upon his or her gross receipts from the same
10transactions.
11    (l) If, for any reason, the Department is prohibited from
12enforcing the marketplace facilitator's duty under this Act to
13collect and remit taxes pursuant to this Section, the duty to
14collect and remit such taxes reverts to the marketplace seller
15that is a retailer maintaining a place of business in this
16State pursuant to Section 2.
17(Source: P.A. 101-9, eff. 6-5-19; 101-604, eff. 1-1-20.)
 
18    Section 10. The Service Use Tax Act is amended by changing
19Section 2d as follows:
 
20    (35 ILCS 110/2d)
21    Sec. 2d. Marketplace facilitators and marketplace
22servicemen.
23    (a) Definitions. For purposes of this Section:
24    "Affiliate" means a person that, with respect to another

 

 

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1person: (i) has a direct or indirect ownership interest of
2more than 5% in the other person; or (ii) is related to the
3other person because a third person, or group of third persons
4who are affiliated with each other as defined in this
5subsection, holds a direct or indirect ownership interest of
6more than 5% in the related person.
7    "Delivery network company" means a business that
8facilitates, through the use of an Internet website or mobile
9application, the delivery of local products.
10    "Local product" means any item, including food, other than
11freight, mail, or a package to which postage has been affixed.
12    "Marketplace" means a physical or electronic place, forum,
13platform, application or other method by which a marketplace
14serviceman makes or offers to make sales of service.
15    "Marketplace facilitator" means a person who, pursuant to
16an agreement with a marketplace serviceman, facilitates sales
17of service by that marketplace serviceman. A person
18facilitates a sale of service by, directly or indirectly
19through one or more affiliates, doing both of the following:
20(i) listing or otherwise making available a sale of service of
21the marketplace serviceman through a marketplace owned or
22operated by the marketplace facilitator; and (ii) processing
23sales of service for, or payments for sales of service by,
24marketplace servicemen.
25    "Marketplace facilitator" does not include a delivery
26network company that delivers tangible personal property on

 

 

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1behalf of a marketplace serviceman that is engaged in business
2as a retail vendor.
3    "Marketplace serviceman" means a person that makes or
4offers to make a sale of service through a marketplace.
5    (b) Beginning January 1, 2020, a marketplace facilitator
6who meets either of the following criteria is considered the
7serviceman for each sale of service made on the marketplace:
8        (1) the cumulative gross receipts from sales of
9    service to purchasers in Illinois by the marketplace
10    facilitator and by marketplace servicemen are $100,000 or
11    more; or
12        (2) the marketplace facilitator and marketplace
13    servicemen cumulatively enter into 200 or more separate
14    transactions for the sale of service to purchasers in
15    Illinois.
16    A marketplace facilitator shall determine on a quarterly
17basis, ending on the last day of March, June, September, and
18December, whether he or she meets the criteria of either
19paragraph (1) or (2) of this subsection (b) for the preceding
2012-month period. If the marketplace facilitator meets the
21criteria of either paragraph (1) or (2) for a 12-month period,
22he or she is considered a serviceman maintaining a place of
23business in this State and is required to collect and remit the
24tax imposed under this Act and file returns for one year. At
25the end of that one-year period, the marketplace facilitator
26shall determine whether the marketplace facilitator met the

 

 

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1criteria of either paragraph (1) or (2) during the preceding
212-month period. If the marketplace facilitator met the
3criteria in either paragraph (1) or (2) for the preceding
412-month period, he or she is considered a serviceman
5maintaining a place of business in this State and is required
6to collect and remit the tax imposed under this Act and file
7returns for the subsequent year. If, at the end of a one-year
8period, a marketplace facilitator that was required to collect
9and remit the tax imposed under this Act determines that he or
10she did not meet the criteria in either paragraph (1) or (2)
11during the preceding 12-month period, the marketplace
12facilitator shall subsequently determine on a quarterly basis,
13ending on the last day of March, June, September, and
14December, whether he or she meets the criteria of either
15paragraph (1) or (2) for the preceding 12-month period.
16    (c) A marketplace facilitator that meets either of the
17thresholds in subsection (b) of this Section is considered the
18serviceman for each sale of service made through its
19marketplace and is liable for collecting and remitting the tax
20under this Act on all such sales. The marketplace facilitator
21has all the rights and duties, and is required to comply with
22the same requirements and procedures, as all other servicemen
23maintaining a place of business in this State who are
24registered or who are required to be registered to collect and
25remit the tax imposed by this Act.
26    (d) A marketplace facilitator shall:

 

 

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1        (1) certify to each marketplace serviceman that the
2    marketplace facilitator assumes the rights and duties of a
3    serviceman under this Act with respect to sales of service
4    made by the marketplace serviceman through the
5    marketplace; and
6        (2) collect taxes imposed by this Act as required by
7    Section 3-40 of this Act for sales of service made through
8    the marketplace.
9    (e) A marketplace serviceman shall retain books and
10records for all sales of service made through a marketplace in
11accordance with the requirements of Section 11.
12    (f) A marketplace serviceman shall furnish to the
13marketplace facilitator information that is necessary for the
14marketplace facilitator to correctly collect and remit taxes
15for a sale of service. The information may include a
16certification that an item transferred incident to a sale of
17service under this Act is taxable, not taxable, exempt from
18taxation, or taxable at a specified rate. A marketplace
19serviceman shall be held harmless for liability for the tax
20imposed under this Act when a marketplace facilitator fails to
21correctly collect and remit tax after having been provided
22with information by a marketplace serviceman to correctly
23collect and remit taxes imposed under this Act.
24    (g) Except as provided in subsection (h), if the
25marketplace facilitator demonstrates to the satisfaction of
26the Department that its failure to correctly collect and remit

 

 

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1tax on a sale of service resulted from the marketplace
2facilitator's good faith reliance on incorrect or insufficient
3information provided by a marketplace serviceman, it shall be
4relieved of liability for the tax on that sale of service. In
5this case, a marketplace serviceman is liable for any
6resulting tax due.
7    (h) A marketplace facilitator and marketplace serviceman
8that are affiliates, as defined by subsection (a), are jointly
9and severally liable for tax liability resulting from a sale
10of service made by the affiliated marketplace serviceman
11through the marketplace.
12    (i) This Section does not affect the tax liability of a
13purchaser under this Act.
14    (j) The Department may adopt rules for the administration
15and enforcement of the provisions of this Section.
16(Source: P.A. 101-9, eff. 6-5-19.)
 
17    Section 15. The Retailers' Occupation Tax Act is amended
18by changing Section 1 as follows:
 
19    (35 ILCS 120/1)  (from Ch. 120, par. 440)
20    Sec. 1. Definitions. "Sale at retail" means any transfer
21of the ownership of or title to tangible personal property to a
22purchaser, for the purpose of use or consumption, and not for
23the purpose of resale in any form as tangible personal
24property to the extent not first subjected to a use for which

 

 

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1it was purchased, for a valuable consideration: Provided that
2the property purchased is deemed to be purchased for the
3purpose of resale, despite first being used, to the extent to
4which it is resold as an ingredient of an intentionally
5produced product or byproduct of manufacturing. For this
6purpose, slag produced as an incident to manufacturing pig
7iron or steel and sold is considered to be an intentionally
8produced byproduct of manufacturing. Transactions whereby the
9possession of the property is transferred but the seller
10retains the title as security for payment of the selling price
11shall be deemed to be sales.
12    "Sale at retail" shall be construed to include any
13transfer of the ownership of or title to tangible personal
14property to a purchaser, for use or consumption by any other
15person to whom such purchaser may transfer the tangible
16personal property without a valuable consideration, and to
17include any transfer, whether made for or without a valuable
18consideration, for resale in any form as tangible personal
19property unless made in compliance with Section 2c of this
20Act.
21    Sales of tangible personal property, which property, to
22the extent not first subjected to a use for which it was
23purchased, as an ingredient or constituent, goes into and
24forms a part of tangible personal property subsequently the
25subject of a "Sale at retail", are not sales at retail as
26defined in this Act: Provided that the property purchased is

 

 

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1deemed to be purchased for the purpose of resale, despite
2first being used, to the extent to which it is resold as an
3ingredient of an intentionally produced product or byproduct
4of manufacturing.
5    "Sale at retail" shall be construed to include any
6Illinois florist's sales transaction in which the purchase
7order is received in Illinois by a florist and the sale is for
8use or consumption, but the Illinois florist has a florist in
9another state deliver the property to the purchaser or the
10purchaser's donee in such other state.
11    Nonreusable tangible personal property that is used by
12persons engaged in the business of operating a restaurant,
13cafeteria, or drive-in is a sale for resale when it is
14transferred to customers in the ordinary course of business as
15part of the sale of food or beverages and is used to deliver,
16package, or consume food or beverages, regardless of where
17consumption of the food or beverages occurs. Examples of those
18items include, but are not limited to nonreusable, paper and
19plastic cups, plates, baskets, boxes, sleeves, buckets or
20other containers, utensils, straws, placemats, napkins, doggie
21bags, and wrapping or packaging materials that are transferred
22to customers as part of the sale of food or beverages in the
23ordinary course of business.
24    The purchase, employment and transfer of such tangible
25personal property as newsprint and ink for the primary purpose
26of conveying news (with or without other information) is not a

 

 

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1purchase, use or sale of tangible personal property.
2    A person whose activities are organized and conducted
3primarily as a not-for-profit service enterprise, and who
4engages in selling tangible personal property at retail
5(whether to the public or merely to members and their guests)
6is engaged in the business of selling tangible personal
7property at retail with respect to such transactions,
8excepting only a person organized and operated exclusively for
9charitable, religious or educational purposes either (1), to
10the extent of sales by such person to its members, students,
11patients or inmates of tangible personal property to be used
12primarily for the purposes of such person, or (2), to the
13extent of sales by such person of tangible personal property
14which is not sold or offered for sale by persons organized for
15profit. The selling of school books and school supplies by
16schools at retail to students is not "primarily for the
17purposes of" the school which does such selling. The
18provisions of this paragraph shall not apply to nor subject to
19taxation occasional dinners, socials or similar activities of
20a person organized and operated exclusively for charitable,
21religious or educational purposes, whether or not such
22activities are open to the public.
23    A person who is the recipient of a grant or contract under
24Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
25serves meals to participants in the federal Nutrition Program
26for the Elderly in return for contributions established in

 

 

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1amount by the individual participant pursuant to a schedule of
2suggested fees as provided for in the federal Act is not
3engaged in the business of selling tangible personal property
4at retail with respect to such transactions.
5    "Purchaser" means anyone who, through a sale at retail,
6acquires the ownership of or title to tangible personal
7property for a valuable consideration.
8    "Reseller of motor fuel" means any person engaged in the
9business of selling or delivering or transferring title of
10motor fuel to another person other than for use or
11consumption. No person shall act as a reseller of motor fuel
12within this State without first being registered as a reseller
13pursuant to Section 2c or a retailer pursuant to Section 2a.
14    "Selling price" or the "amount of sale" means the
15consideration for a sale valued in money whether received in
16money or otherwise, including cash, credits, property, other
17than as hereinafter provided, and services, but, prior to
18January 1, 2020 and beginning again on January 1, 2022, not
19including the value of or credit given for traded-in tangible
20personal property where the item that is traded-in is of like
21kind and character as that which is being sold; beginning
22January 1, 2020 and until January 1, 2022, "selling price"
23includes the portion of the value of or credit given for
24traded-in motor vehicles of the First Division as defined in
25Section 1-146 of the Illinois Vehicle Code of like kind and
26character as that which is being sold that exceeds $10,000.

 

 

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1"Selling price" shall be determined without any deduction on
2account of the cost of the property sold, the cost of materials
3used, labor or service cost or any other expense whatsoever,
4but does not include charges that are added to prices by
5sellers on account of the seller's tax liability under this
6Act, or on account of the seller's duty to collect, from the
7purchaser, the tax that is imposed by the Use Tax Act, or,
8except as otherwise provided with respect to any cigarette tax
9imposed by a home rule unit, on account of the seller's tax
10liability under any local occupation tax administered by the
11Department, or, except as otherwise provided with respect to
12any cigarette tax imposed by a home rule unit on account of the
13seller's duty to collect, from the purchasers, the tax that is
14imposed under any local use tax administered by the
15Department. Effective December 1, 1985, "selling price" shall
16include charges that are added to prices by sellers on account
17of the seller's tax liability under the Cigarette Tax Act, on
18account of the sellers' duty to collect, from the purchaser,
19the tax imposed under the Cigarette Use Tax Act, and on account
20of the seller's duty to collect, from the purchaser, any
21cigarette tax imposed by a home rule unit.
22    Notwithstanding any law to the contrary, for any motor
23vehicle, as defined in Section 1-146 of the Vehicle Code, that
24is sold on or after January 1, 2015 for the purpose of leasing
25the vehicle for a defined period that is longer than one year
26and (1) is a motor vehicle of the second division that: (A) is

 

 

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1a self-contained motor vehicle designed or permanently
2converted to provide living quarters for recreational,
3camping, or travel use, with direct walk through access to the
4living quarters from the driver's seat; (B) is of the van
5configuration designed for the transportation of not less than
67 nor more than 16 passengers; or (C) has a gross vehicle
7weight rating of 8,000 pounds or less or (2) is a motor vehicle
8of the first division, "selling price" or "amount of sale"
9means the consideration received by the lessor pursuant to the
10lease contract, including amounts due at lease signing and all
11monthly or other regular payments charged over the term of the
12lease. Also included in the selling price is any amount
13received by the lessor from the lessee for the leased vehicle
14that is not calculated at the time the lease is executed,
15including, but not limited to, excess mileage charges and
16charges for excess wear and tear. For sales that occur in
17Illinois, with respect to any amount received by the lessor
18from the lessee for the leased vehicle that is not calculated
19at the time the lease is executed, the lessor who purchased the
20motor vehicle does not incur the tax imposed by the Use Tax Act
21on those amounts, and the retailer who makes the retail sale of
22the motor vehicle to the lessor is not required to collect the
23tax imposed by the Use Tax Act or to pay the tax imposed by
24this Act on those amounts. However, the lessor who purchased
25the motor vehicle assumes the liability for reporting and
26paying the tax on those amounts directly to the Department in

 

 

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1the same form (Illinois Retailers' Occupation Tax, and local
2retailers' occupation taxes, if applicable) in which the
3retailer would have reported and paid such tax if the retailer
4had accounted for the tax to the Department. For amounts
5received by the lessor from the lessee that are not calculated
6at the time the lease is executed, the lessor must file the
7return and pay the tax to the Department by the due date
8otherwise required by this Act for returns other than
9transaction returns. If the retailer is entitled under this
10Act to a discount for collecting and remitting the tax imposed
11under this Act to the Department with respect to the sale of
12the motor vehicle to the lessor, then the right to the discount
13provided in this Act shall be transferred to the lessor with
14respect to the tax paid by the lessor for any amount received
15by the lessor from the lessee for the leased vehicle that is
16not calculated at the time the lease is executed; provided
17that the discount is only allowed if the return is timely filed
18and for amounts timely paid. The "selling price" of a motor
19vehicle that is sold on or after January 1, 2015 for the
20purpose of leasing for a defined period of longer than one year
21shall not be reduced by the value of or credit given for
22traded-in tangible personal property owned by the lessor, nor
23shall it be reduced by the value of or credit given for
24traded-in tangible personal property owned by the lessee,
25regardless of whether the trade-in value thereof is assigned
26by the lessee to the lessor. In the case of a motor vehicle

 

 

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1that is sold for the purpose of leasing for a defined period of
2longer than one year, the sale occurs at the time of the
3delivery of the vehicle, regardless of the due date of any
4lease payments. A lessor who incurs a Retailers' Occupation
5Tax liability on the sale of a motor vehicle coming off lease
6may not take a credit against that liability for the Use Tax
7the lessor paid upon the purchase of the motor vehicle (or for
8any tax the lessor paid with respect to any amount received by
9the lessor from the lessee for the leased vehicle that was not
10calculated at the time the lease was executed) if the selling
11price of the motor vehicle at the time of purchase was
12calculated using the definition of "selling price" as defined
13in this paragraph. Notwithstanding any other provision of this
14Act to the contrary, lessors shall file all returns and make
15all payments required under this paragraph to the Department
16by electronic means in the manner and form as required by the
17Department. This paragraph does not apply to leases of motor
18vehicles for which, at the time the lease is entered into, the
19term of the lease is not a defined period, including leases
20with a defined initial period with the option to continue the
21lease on a month-to-month or other basis beyond the initial
22defined period.
23    The phrase "like kind and character" shall be liberally
24construed (including but not limited to any form of motor
25vehicle for any form of motor vehicle, or any kind of farm or
26agricultural implement for any other kind of farm or

 

 

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1agricultural implement), while not including a kind of item
2which, if sold at retail by that retailer, would be exempt from
3retailers' occupation tax and use tax as an isolated or
4occasional sale.
5    "Gross receipts" from the sales of tangible personal
6property at retail means the total selling price or the amount
7of such sales, as hereinbefore defined. In the case of charge
8and time sales, the amount thereof shall be included only as
9and when payments are received by the seller. Receipts or
10other consideration derived by a seller from the sale,
11transfer or assignment of accounts receivable to a wholly
12owned subsidiary will not be deemed payments prior to the time
13the purchaser makes payment on such accounts.
14    "Department" means the Department of Revenue.
15    "Person" means any natural individual, firm, partnership,
16association, joint stock company, joint adventure, public or
17private corporation, limited liability company, or a receiver,
18executor, trustee, guardian or other representative appointed
19by order of any court.
20    The isolated or occasional sale of tangible personal
21property at retail by a person who does not hold himself out as
22being engaged (or who does not habitually engage) in selling
23such tangible personal property at retail, or a sale through a
24bulk vending machine, does not constitute engaging in a
25business of selling such tangible personal property at retail
26within the meaning of this Act; provided that any person who is

 

 

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1engaged in a business which is not subject to the tax imposed
2by this Act because of involving the sale of or a contract to
3sell real estate or a construction contract to improve real
4estate or a construction contract to engineer, install, and
5maintain an integrated system of products, but who, in the
6course of conducting such business, transfers tangible
7personal property to users or consumers in the finished form
8in which it was purchased, and which does not become real
9estate or was not engineered and installed, under any
10provision of a construction contract or real estate sale or
11real estate sales agreement entered into with some other
12person arising out of or because of such nontaxable business,
13is engaged in the business of selling tangible personal
14property at retail to the extent of the value of the tangible
15personal property so transferred. If, in such a transaction, a
16separate charge is made for the tangible personal property so
17transferred, the value of such property, for the purpose of
18this Act, shall be the amount so separately charged, but not
19less than the cost of such property to the transferor; if no
20separate charge is made, the value of such property, for the
21purposes of this Act, is the cost to the transferor of such
22tangible personal property. Construction contracts for the
23improvement of real estate consisting of engineering,
24installation, and maintenance of voice, data, video, security,
25and all telecommunication systems do not constitute engaging
26in a business of selling tangible personal property at retail

 

 

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1within the meaning of this Act if they are sold at one
2specified contract price.
3    A person who holds himself or herself out as being engaged
4(or who habitually engages) in selling tangible personal
5property at retail is a person engaged in the business of
6selling tangible personal property at retail hereunder with
7respect to such sales (and not primarily in a service
8occupation) notwithstanding the fact that such person designs
9and produces such tangible personal property on special order
10for the purchaser and in such a way as to render the property
11of value only to such purchaser, if such tangible personal
12property so produced on special order serves substantially the
13same function as stock or standard items of tangible personal
14property that are sold at retail.
15    Persons who engage in the business of transferring
16tangible personal property upon the redemption of trading
17stamps are engaged in the business of selling such property at
18retail and shall be liable for and shall pay the tax imposed by
19this Act on the basis of the retail value of the property
20transferred upon redemption of such stamps.
21    "Bulk vending machine" means a vending machine, containing
22unsorted confections, nuts, toys, or other items designed
23primarily to be used or played with by children which, when a
24coin or coins of a denomination not larger than $0.50 are
25inserted, are dispensed in equal portions, at random and
26without selection by the customer.

 

 

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1    "Remote retailer" means a retailer that does not maintain
2within this State, directly or by a subsidiary, an office,
3distribution house, sales house, warehouse or other place of
4business, or any agent or other representative operating
5within this State under the authority of the retailer or its
6subsidiary, irrespective of whether such place of business or
7agent is located here permanently or temporarily or whether
8such retailer or subsidiary is licensed to do business in this
9State.
10    "Marketplace" means a physical or electronic place, forum,
11platform, application, or other method by which a marketplace
12seller sells or offers to sell items.
13    "Marketplace facilitator" means a person who, pursuant to
14an agreement with an unrelated third-party marketplace seller,
15directly or indirectly through one or more affiliates
16facilitates a retail sale by an unrelated third party
17marketplace seller by:
18        (1) listing or advertising for sale by the marketplace
19    seller in a marketplace, tangible personal property that
20    is subject to tax under this Act; and
21        (2) either directly or indirectly, through agreements
22    or arrangements with third parties, collecting payment
23    from the customer and transmitting that payment to the
24    marketplace seller regardless of whether the marketplace
25    facilitator receives compensation or other consideration
26    in exchange for its services.

 

 

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1    A person who provides advertising services, including
2listing products for sale, is not considered a marketplace
3facilitator, so long as the advertising service platform or
4forum does not engage, directly or indirectly through one or
5more affiliated persons, in the activities described in
6paragraph (2) of this definition of "marketplace facilitator".
7    "Marketplace facilitator" does not include any person
8licensed under the Auction License Act. This exemption does
9not apply to any person who is an Internet auction listing
10service, as defined by the Auction License Act.
11    "Marketplace facilitator" does not include a delivery
12network company that delivers tangible personal property on
13behalf of a marketplace seller that is engaged in business as a
14retail vendor.
15    "Delivery network company" means a business that
16facilitates, through the use of an Internet website or mobile
17application, the delivery of local products.
18    "Local product" means any item, including food, other than
19freight, mail, or a package to which postage has been affixed.
20    "Marketplace seller" means a person that makes sales
21through a marketplace operated by an unrelated third party
22marketplace facilitator.
23(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
24102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
255-13-22.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.