|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
1 | AN ACT concerning taxes.
| ||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||
4 | Section 5. The Use Tax Act is amended by changing Section 2 | ||||||||||||||||||||||||||||
5 | as follows:
| ||||||||||||||||||||||||||||
6 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| ||||||||||||||||||||||||||||
7 | Sec. 2. "Use" means the exercise by any person of any right | ||||||||||||||||||||||||||||
8 | or power over
tangible personal property incident to the | ||||||||||||||||||||||||||||
9 | ownership of that property,
except that it does not include the | ||||||||||||||||||||||||||||
10 | sale of such property in any form as
tangible personal property | ||||||||||||||||||||||||||||
11 | in the regular course of business to the extent
that such | ||||||||||||||||||||||||||||
12 | property is not first subjected to a use for which it was
| ||||||||||||||||||||||||||||
13 | purchased, and does not include the use of such property by its | ||||||||||||||||||||||||||||
14 | owner for
demonstration purposes: Provided that the property | ||||||||||||||||||||||||||||
15 | purchased is deemed to
be purchased for the purpose of resale, | ||||||||||||||||||||||||||||
16 | despite first being used, to the
extent to which it is resold | ||||||||||||||||||||||||||||
17 | as an ingredient of an intentionally produced
product or | ||||||||||||||||||||||||||||
18 | by-product of manufacturing. "Use" does not mean the | ||||||||||||||||||||||||||||
19 | demonstration
use or interim use of tangible personal property | ||||||||||||||||||||||||||||
20 | by a retailer before he sells
that tangible personal property. | ||||||||||||||||||||||||||||
21 | For watercraft or aircraft, if the period of
demonstration use | ||||||||||||||||||||||||||||
22 | or interim use by the retailer exceeds 18 months,
the retailer
| ||||||||||||||||||||||||||||
23 | shall pay on the retailers' original cost price the tax imposed | ||||||||||||||||||||||||||||
24 | by this Act,
and no credit for that tax is permitted if the | ||||||||||||||||||||||||||||
25 | watercraft or aircraft is
subsequently sold by the retailer. | ||||||||||||||||||||||||||||
26 | "Use" does not mean the physical
incorporation of tangible | ||||||||||||||||||||||||||||
27 | personal property, to the extent not first subjected
to a use | ||||||||||||||||||||||||||||
28 | for which it was purchased, as an ingredient or constituent, | ||||||||||||||||||||||||||||
29 | into
other tangible personal property (a) which is sold in the | ||||||||||||||||||||||||||||
30 | regular course of
business or (b) which the person | ||||||||||||||||||||||||||||
31 | incorporating such ingredient or constituent
therein has | ||||||||||||||||||||||||||||
32 | undertaken at the time of such purchase to cause to be |
| |||||||
| |||||||
1 | transported
in interstate commerce to destinations outside the | ||||||
2 | State of Illinois: Provided
that the property purchased is | ||||||
3 | deemed to be purchased for the purpose of
resale, despite first | ||||||
4 | being used, to the extent to which it is resold as an
| ||||||
5 | ingredient of an intentionally produced product or by-product | ||||||
6 | of manufacturing.
| ||||||
7 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
8 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
9 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
10 | with an inboard motor.
| ||||||
11 | "Purchase at retail" means the acquisition of the ownership | ||||||
12 | of or title
to tangible personal property through a sale at | ||||||
13 | retail.
| ||||||
14 | "Purchaser" means anyone who, through a sale at retail, | ||||||
15 | acquires the
ownership of tangible personal property for a | ||||||
16 | valuable consideration.
| ||||||
17 | "Sale at retail" means any transfer of the ownership of or | ||||||
18 | title to
tangible personal property to a purchaser, for the | ||||||
19 | purpose of use, and not
for the purpose of resale in any form | ||||||
20 | as tangible personal property to the
extent not first subjected | ||||||
21 | to a use for which it was purchased, for a
valuable | ||||||
22 | consideration: Provided that the property purchased is deemed | ||||||
23 | to
be purchased for the purpose of resale, despite first being | ||||||
24 | used, to the
extent to which it is resold as an ingredient of | ||||||
25 | an intentionally produced
product or by-product of | ||||||
26 | manufacturing. For this purpose, slag produced as
an incident | ||||||
27 | to manufacturing pig iron or steel and sold is considered to be
| ||||||
28 | an intentionally produced by-product of manufacturing. "Sale | ||||||
29 | at retail"
includes any such transfer made for resale unless | ||||||
30 | made in compliance with
Section 2c of the Retailers' Occupation | ||||||
31 | Tax Act, as incorporated by
reference into Section 12 of this | ||||||
32 | Act. Transactions whereby the possession
of the property is | ||||||
33 | transferred but the seller retains the title as security
for | ||||||
34 | payment of the selling price are sales.
| ||||||
35 | "Sale at retail" shall also be construed to include any | ||||||
36 | Illinois
florist's sales transaction in which the purchase |
| |||||||
| |||||||
1 | order is received in
Illinois by a florist and the sale is for | ||||||
2 | use or consumption, but the
Illinois florist has a florist in | ||||||
3 | another state deliver the property to the
purchaser or the | ||||||
4 | purchaser's donee in such other state.
| ||||||
5 | Nonreusable tangible personal property that is used by | ||||||
6 | persons engaged in
the business of operating a restaurant, | ||||||
7 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
8 | transferred to customers in the ordinary course of business
as | ||||||
9 | part of the sale of food or beverages and is used to deliver, | ||||||
10 | package, or
consume food or beverages, regardless of where | ||||||
11 | consumption of the food or
beverages occurs. Examples of those | ||||||
12 | items include, but are not limited to
nonreusable, paper and | ||||||
13 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
14 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
15 | and
wrapping or packaging
materials that are transferred to | ||||||
16 | customers as part of the sale of food or
beverages in the | ||||||
17 | ordinary course of business.
| ||||||
18 | Until the effective date of this amendatory Act of the 93rd | ||||||
19 | General Assembly, the purchase, employment and transfer of such | ||||||
20 | tangible personal property
as newsprint and ink for the primary | ||||||
21 | purpose of conveying news (with or
without other information) | ||||||
22 | is not a purchase, use or sale of tangible
personal property.
| ||||||
23 | "Selling price" means the consideration for a sale valued | ||||||
24 | in money
whether received in money or otherwise, including | ||||||
25 | cash, credits, property
other than as hereinafter provided, and | ||||||
26 | services, but not including the
value of or credit given for | ||||||
27 | traded-in tangible personal property where the
item that is | ||||||
28 | traded-in is of like kind and character as that which is being
| ||||||
29 | sold, and shall be determined without any deduction on account | ||||||
30 | of the cost
of the property sold, the cost of materials used, | ||||||
31 | labor or service cost or
any other expense whatsoever, but does | ||||||
32 | not include interest or finance
charges which appear as | ||||||
33 | separate items on the bill of sale or sales
contract nor | ||||||
34 | charges that are added to prices by sellers on account of the
| ||||||
35 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
36 | Act", or on
account of the seller's duty to collect, from the |
| |||||||
| |||||||
1 | purchaser, the tax that
is imposed by this Act, or on account | ||||||
2 | of the seller's tax liability under
Section 8-11-1 of the | ||||||
3 | Illinois Municipal Code, as heretofore and hereafter
amended, | ||||||
4 | or on account of the seller's tax liability under the "County
| ||||||
5 | Retailers' Occupation Tax Act". Effective December 1, 1985, | ||||||
6 | "selling price"
shall include charges that are added to prices | ||||||
7 | by sellers on account of the
seller's tax liability under the | ||||||
8 | Cigarette Tax Act, on account of the seller's
duty to collect, | ||||||
9 | from the purchaser, the tax imposed under the Cigarette Use
Tax | ||||||
10 | Act, and on account of the seller's duty to collect, from the | ||||||
11 | purchaser,
any cigarette tax imposed by a home rule unit.
| ||||||
12 | The phrase "like kind and character" shall be liberally | ||||||
13 | construed
(including but not limited to any form of motor | ||||||
14 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
15 | agricultural implement for any other
kind of farm or | ||||||
16 | agricultural implement), while not including a kind of item
| ||||||
17 | which, if sold at retail by that retailer, would be exempt from | ||||||
18 | retailers'
occupation tax and use tax as an isolated or | ||||||
19 | occasional sale.
| ||||||
20 | "Department" means the Department of Revenue.
| ||||||
21 | "Person" means any natural individual, firm, partnership, | ||||||
22 | association,
joint stock company, joint adventure, public or | ||||||
23 | private corporation, limited
liability company, or a
receiver, | ||||||
24 | executor, trustee, guardian or other representative appointed
| ||||||
25 | by order of any court.
| ||||||
26 | "Retailer" means and includes every person engaged in the | ||||||
27 | business of
making sales at retail as defined in this Section.
| ||||||
28 | A person who holds himself or herself out as being engaged | ||||||
29 | (or who habitually
engages) in selling tangible personal | ||||||
30 | property at retail is a retailer
hereunder with respect to such | ||||||
31 | sales (and not primarily in a service
occupation) | ||||||
32 | notwithstanding the fact that such person designs and produces
| ||||||
33 | such tangible personal property on special order for the | ||||||
34 | purchaser and in
such a way as to render the property of value | ||||||
35 | only to such purchaser, if
such tangible personal property so | ||||||
36 | produced on special order serves
substantially the same |
| |||||||
| |||||||
1 | function as stock or standard items of tangible
personal | ||||||
2 | property that are sold at retail.
| ||||||
3 | A person whose activities are organized and conducted | ||||||
4 | primarily as a
not-for-profit service enterprise, and who | ||||||
5 | engages in selling tangible
personal property at retail | ||||||
6 | (whether to the public or merely to members and
their guests) | ||||||
7 | is a retailer with respect to such transactions, excepting
only | ||||||
8 | a person organized and operated exclusively for charitable, | ||||||
9 | religious
or educational purposes either (1), to the extent of | ||||||
10 | sales by such person
to its members, students, patients or | ||||||
11 | inmates of tangible personal property
to be used primarily for | ||||||
12 | the purposes of such person, or (2), to the extent
of sales by | ||||||
13 | such person of tangible personal property which is not sold or
| ||||||
14 | offered for sale by persons organized for profit. The selling | ||||||
15 | of school
books and school supplies by schools at retail to | ||||||
16 | students is not
"primarily for the purposes of" the school | ||||||
17 | which does such selling. This
paragraph does not apply to nor | ||||||
18 | subject to taxation occasional dinners,
social or similar | ||||||
19 | activities of a person organized and operated exclusively
for | ||||||
20 | charitable, religious or educational purposes, whether or not | ||||||
21 | such
activities are open to the public.
| ||||||
22 | A person who is the recipient of a grant or contract under | ||||||
23 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
24 | serves meals to
participants in the federal Nutrition Program | ||||||
25 | for the Elderly in return for
contributions established in | ||||||
26 | amount by the individual participant pursuant
to a schedule of | ||||||
27 | suggested fees as provided for in the federal Act is not a
| ||||||
28 | retailer under this Act with respect to such transactions.
| ||||||
29 | Persons who engage in the business of transferring tangible | ||||||
30 | personal
property upon the redemption of trading stamps are | ||||||
31 | retailers hereunder when
engaged in such business.
| ||||||
32 | The isolated or occasional sale of tangible personal | ||||||
33 | property at retail
by a person who does not hold himself out as | ||||||
34 | being engaged (or who does not
habitually engage) in selling | ||||||
35 | such tangible personal property at retail or
a sale through a | ||||||
36 | bulk vending machine does not make such person a retailer
|
| |||||||
| |||||||
1 | hereunder. However, any person who is engaged in a business | ||||||
2 | which is not
subject to the tax imposed by the "Retailers' | ||||||
3 | Occupation Tax Act" because
of involving the sale of or a | ||||||
4 | contract to sell real estate or a
construction contract to | ||||||
5 | improve real estate, but who, in the course of
conducting such | ||||||
6 | business, transfers tangible personal property to users or
| ||||||
7 | consumers in the finished form in which it was purchased, and | ||||||
8 | which does
not become real estate, under any provision of a | ||||||
9 | construction contract or
real estate sale or real estate sales | ||||||
10 | agreement entered into with some
other person arising out of or | ||||||
11 | because of such nontaxable business, is a
retailer to the | ||||||
12 | extent of the value of the tangible personal property so
| ||||||
13 | transferred. If, in such transaction, a separate charge is made | ||||||
14 | for the
tangible personal property so transferred, the value of | ||||||
15 | such property, for
the purposes of this Act, is the amount so | ||||||
16 | separately charged, but not less
than the cost of such property | ||||||
17 | to the transferor; if no separate charge is
made, the value of | ||||||
18 | such property, for the purposes of this Act, is the cost
to the | ||||||
19 | transferor of such tangible personal property.
| ||||||
20 | "Retailer maintaining a place of business in this State", | ||||||
21 | or any like
term, means and includes any of the following | ||||||
22 | retailers:
| ||||||
23 | 1. A retailer having or maintaining within this State, | ||||||
24 | directly or by
a subsidiary, an office, distribution house, | ||||||
25 | sales house, warehouse or other
place of business, or any | ||||||
26 | agent or other representative operating within this
State | ||||||
27 | under the authority of the retailer or its subsidiary, | ||||||
28 | irrespective of
whether such place of business or agent or | ||||||
29 | other representative is located here
permanently or | ||||||
30 | temporarily, or whether such retailer or subsidiary is | ||||||
31 | licensed
to do business in this State. However, the | ||||||
32 | ownership of property that is
located at the premises of a | ||||||
33 | printer with which the retailer has contracted for
printing | ||||||
34 | and that consists of the final printed product, property | ||||||
35 | that becomes
a part of the final printed product, or copy | ||||||
36 | from which the printed product is
produced shall not result |
| |||||||
| |||||||
1 | in the retailer being deemed to have or maintain an
office, | ||||||
2 | distribution house, sales house, warehouse, or other place | ||||||
3 | of business
within this State.
| ||||||
4 | 2. A retailer soliciting orders for tangible personal | ||||||
5 | property by
means of a telecommunication or television | ||||||
6 | shopping system (which utilizes toll
free numbers) which is | ||||||
7 | intended by the retailer to be broadcast by cable
| ||||||
8 | television or other means of broadcasting, to consumers | ||||||
9 | located in this State.
| ||||||
10 | 3. A retailer, pursuant to a contract with a | ||||||
11 | broadcaster or publisher
located in this State, soliciting | ||||||
12 | orders for tangible personal property by
means of | ||||||
13 | advertising which is disseminated primarily to consumers | ||||||
14 | located in
this State and only secondarily to bordering | ||||||
15 | jurisdictions.
| ||||||
16 | 4. A retailer soliciting orders for tangible personal | ||||||
17 | property by mail
if the solicitations are substantial and | ||||||
18 | recurring and if the retailer benefits
from any banking, | ||||||
19 | financing, debt collection, telecommunication, or | ||||||
20 | marketing
activities occurring in this State or benefits | ||||||
21 | from the location in this State
of authorized installation, | ||||||
22 | servicing, or repair facilities.
| ||||||
23 | 5. A retailer that is owned or controlled by the same | ||||||
24 | interests that own
or control any retailer engaging in | ||||||
25 | business in the same or similar line of
business in this | ||||||
26 | State.
| ||||||
27 | 6. A retailer having a franchisee or licensee operating | ||||||
28 | under its trade
name if the franchisee or licensee is | ||||||
29 | required to collect the tax under this
Section.
| ||||||
30 | 7. A retailer, pursuant to a contract with a cable | ||||||
31 | television operator
located in this State, soliciting | ||||||
32 | orders for tangible personal property by
means of | ||||||
33 | advertising which is transmitted or distributed over a | ||||||
34 | cable
television system in this State.
| ||||||
35 | 8. A retailer engaging in activities in Illinois, which | ||||||
36 | activities in
the state in which the retail business |
| |||||||
| |||||||
1 | engaging in such activities is located
would constitute | ||||||
2 | maintaining a place of business in that state.
| ||||||
3 | "Bulk vending machine" means a vending machine,
containing | ||||||
4 | unsorted confections, nuts, toys, or other items designed
| ||||||
5 | primarily to be used or played with by children
which, when a | ||||||
6 | coin or coins of a denomination not larger than $0.50 are | ||||||
7 | inserted, are dispensed in equal portions, at random and
| ||||||
8 | without selection by the customer.
| ||||||
9 | (Source: P.A. 92-213, eff. 1-1-02.)
| ||||||
10 | Section 10. The Service Use Tax Act is amended by changing | ||||||
11 | Section 2 as follows:
| ||||||
12 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
13 | Sec. 2. "Use" means the exercise by any person of any right | ||||||
14 | or power
over tangible personal property incident to the | ||||||
15 | ownership of that
property, but does not include the sale or | ||||||
16 | use for demonstration by him
of that property in any form as | ||||||
17 | tangible personal property in the
regular course of business.
| ||||||
18 | "Use" does not mean the interim
use of
tangible personal | ||||||
19 | property nor the physical incorporation of tangible
personal | ||||||
20 | property, as an ingredient or constituent, into other tangible
| ||||||
21 | personal property, (a) which is sold in the regular course of | ||||||
22 | business
or (b) which the person incorporating such ingredient | ||||||
23 | or constituent
therein has undertaken at the time of such | ||||||
24 | purchase to cause to be
transported in interstate commerce to | ||||||
25 | destinations outside the State of
Illinois.
| ||||||
26 | "Purchased from a serviceman" means the acquisition of the | ||||||
27 | ownership
of, or title to, tangible personal property through a | ||||||
28 | sale of service.
| ||||||
29 | "Purchaser" means any person who, through a sale of | ||||||
30 | service, acquires
the ownership of, or title to, any tangible | ||||||
31 | personal property.
| ||||||
32 | "Cost price" means the consideration paid by the serviceman | ||||||
33 | for a
purchase valued in money, whether paid in money or | ||||||
34 | otherwise, including
cash, credits and services, and shall be |
| |||||||
| |||||||
1 | determined without any
deduction on account of the supplier's | ||||||
2 | cost of the property sold or on
account of any other expense | ||||||
3 | incurred by the supplier. When a serviceman
contracts out part | ||||||
4 | or all of the services required in his sale of service,
it | ||||||
5 | shall be presumed that the cost price to the serviceman of the | ||||||
6 | property
transferred to him or her by his or her subcontractor | ||||||
7 | is equal to 50% of
the subcontractor's charges to the | ||||||
8 | serviceman in the absence of proof of
the consideration paid by | ||||||
9 | the subcontractor for the purchase of such property.
| ||||||
10 | "Selling price" means the consideration for a sale valued | ||||||
11 | in money
whether received in money or otherwise, including | ||||||
12 | cash, credits and
service, and shall be determined without any | ||||||
13 | deduction on account of the
serviceman's cost of the property | ||||||
14 | sold, the cost of materials used,
labor or service cost or any | ||||||
15 | other expense whatsoever, but does not
include interest or | ||||||
16 | finance charges which appear as separate items on
the bill of | ||||||
17 | sale or sales contract nor charges that are added to prices
by | ||||||
18 | sellers on account of the seller's duty to collect, from the
| ||||||
19 | purchaser, the tax that is imposed by this Act.
| ||||||
20 | "Department" means the Department of Revenue.
| ||||||
21 | "Person" means any natural individual, firm, partnership,
| ||||||
22 | association, joint stock company, joint venture, public or | ||||||
23 | private
corporation, limited liability company, and any | ||||||
24 | receiver, executor, trustee,
guardian or other representative | ||||||
25 | appointed by order of any court.
| ||||||
26 | "Sale of service" means any transaction except:
| ||||||
27 | (1) a retail sale of tangible personal property taxable | ||||||
28 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
29 | Tax Act.
| ||||||
30 | (2) a sale of tangible personal property for the | ||||||
31 | purpose of resale
made in compliance with Section 2c of the | ||||||
32 | Retailers' Occupation Tax Act.
| ||||||
33 | (3) except as hereinafter provided, a sale or transfer | ||||||
34 | of tangible
personal property as an incident to the | ||||||
35 | rendering of service for or by
any governmental body, or | ||||||
36 | for or by any corporation, society,
association, |
| |||||||
| |||||||
1 | foundation or institution organized and operated
| ||||||
2 | exclusively for charitable, religious or educational | ||||||
3 | purposes or any
not-for-profit corporation, society, | ||||||
4 | association, foundation,
institution or organization which | ||||||
5 | has no compensated officers or
employees and which is | ||||||
6 | organized and operated primarily for the
recreation of | ||||||
7 | persons 55 years of age or older. A limited liability | ||||||
8 | company
may qualify for the exemption under this paragraph | ||||||
9 | only if the limited
liability company is organized and | ||||||
10 | operated exclusively for educational
purposes.
| ||||||
11 | (4) a sale or transfer of tangible personal
property as | ||||||
12 | an incident to the
rendering of service for interstate | ||||||
13 | carriers for hire for use as rolling stock
moving in | ||||||
14 | interstate commerce or by lessors under a lease of one year | ||||||
15 | or
longer, executed or in effect at the time of purchase of | ||||||
16 | personal property, to
interstate carriers for hire for use | ||||||
17 | as rolling stock moving in interstate
commerce so long as | ||||||
18 | so used by such interstate carriers for hire, and equipment
| ||||||
19 | operated by a telecommunications provider, licensed as a | ||||||
20 | common carrier by the
Federal Communications Commission, | ||||||
21 | which is permanently installed in or affixed
to aircraft | ||||||
22 | moving in interstate commerce.
| ||||||
23 | (4a) a sale or transfer of tangible personal
property | ||||||
24 | as an incident
to the rendering of service for owners, | ||||||
25 | lessors, or shippers of tangible
personal property which is | ||||||
26 | utilized by interstate carriers for hire for
use as rolling | ||||||
27 | stock moving in interstate commerce so long as so used by
| ||||||
28 | interstate carriers for hire, and equipment operated by a
| ||||||
29 | telecommunications provider, licensed as a common carrier | ||||||
30 | by the Federal
Communications Commission, which is | ||||||
31 | permanently installed in or affixed to
aircraft moving in | ||||||
32 | interstate commerce.
| ||||||
33 | (4a-5) on and after July 1, 2003, a sale or transfer of | ||||||
34 | a motor vehicle
of
the
second division with a gross vehicle | ||||||
35 | weight in excess of 8,000 pounds as an
incident to the | ||||||
36 | rendering of service if that motor
vehicle is subject
to |
| |||||||
| |||||||
1 | the commercial distribution fee imposed under Section | ||||||
2 | 3-815.1 of the
Illinois Vehicle
Code. This exemption | ||||||
3 | applies to repair and replacement parts added after the
| ||||||
4 | initial
purchase of such a motor vehicle if that motor | ||||||
5 | vehicle is used in a manner that
would
qualify for the | ||||||
6 | rolling stock exemption otherwise provided for in this Act.
| ||||||
7 | (5) a sale or transfer of machinery and equipment used | ||||||
8 | primarily in the
process of the manufacturing or | ||||||
9 | assembling, either in an existing, an expanded
or a new | ||||||
10 | manufacturing facility, of tangible personal property for | ||||||
11 | wholesale or
retail sale or lease, whether such sale or | ||||||
12 | lease is made directly by the
manufacturer or by some other | ||||||
13 | person, whether the materials used in the process
are owned | ||||||
14 | by the manufacturer or some other person, or whether such | ||||||
15 | sale or
lease is made apart from or as an incident to the | ||||||
16 | seller's engaging in a
service occupation and the | ||||||
17 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
18 | Tax, rather than Use Tax or Retailers' Occupation Tax.
| ||||||
19 | (5a) the repairing, reconditioning or remodeling, for | ||||||
20 | a
common carrier by rail, of tangible personal property | ||||||
21 | which belongs to such
carrier for hire, and as to which | ||||||
22 | such carrier receives the physical possession
of the | ||||||
23 | repaired, reconditioned or remodeled item of tangible | ||||||
24 | personal property
in Illinois, and which such carrier | ||||||
25 | transports, or shares with another common
carrier in the | ||||||
26 | transportation of such property, out of Illinois on a | ||||||
27 | standard
uniform bill of lading showing the person who | ||||||
28 | repaired, reconditioned or
remodeled the property to a | ||||||
29 | destination outside Illinois, for use outside
Illinois.
| ||||||
30 | (5b) a sale or transfer of tangible personal property | ||||||
31 | which is produced by
the seller thereof on special order in | ||||||
32 | such a way as to have made the
applicable tax the Service | ||||||
33 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
34 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
35 | carrier by rail
which receives the physical possession of | ||||||
36 | such property in Illinois, and which
transports such |
| |||||||
| |||||||
1 | property, or shares with another common carrier in the
| ||||||
2 | transportation of such property, out of Illinois on a | ||||||
3 | standard uniform bill of
lading showing the seller of the | ||||||
4 | property as the shipper or consignor of such
property to a | ||||||
5 | destination outside Illinois, for use outside Illinois.
| ||||||
6 | (6) until July 1, 2003, a sale or transfer of | ||||||
7 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
8 | and assembled or installed by the retailer, which
machinery | ||||||
9 | and equipment is certified by the user to be used only for | ||||||
10 | the
production of ethyl alcohol that will be used for | ||||||
11 | consumption as motor fuel
or as a component of motor fuel | ||||||
12 | for the personal use of such user and not
subject to sale | ||||||
13 | or resale.
| ||||||
14 | (7) at the election of any serviceman not required to | ||||||
15 | be
otherwise registered as a retailer under Section 2a of | ||||||
16 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
17 | year sales
of service in which the aggregate annual cost | ||||||
18 | price of tangible
personal property transferred as an | ||||||
19 | incident to the sales of service is
less than 35%, or 75% | ||||||
20 | in the case of servicemen transferring prescription
drugs | ||||||
21 | or servicemen engaged in graphic arts production, of the | ||||||
22 | aggregate
annual total gross receipts from all sales of | ||||||
23 | service. The purchase of
such tangible personal property by | ||||||
24 | the serviceman shall be subject to tax
under the Retailers' | ||||||
25 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
26 | primary serviceman who has made the election described in | ||||||
27 | this paragraph
subcontracts service work to a secondary | ||||||
28 | serviceman who has also made the
election described in this | ||||||
29 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
30 | liability if the secondary serviceman (i) has paid or will | ||||||
31 | pay
Use
Tax on his or her cost price of any tangible | ||||||
32 | personal property transferred
to the primary serviceman | ||||||
33 | and (ii) certifies that fact in writing to the
primary
| ||||||
34 | serviceman.
| ||||||
35 | Tangible personal property transferred incident to the | ||||||
36 | completion of a
maintenance agreement is exempt from the tax |
| |||||||
| |||||||
1 | imposed pursuant to this Act.
| ||||||
2 | Exemption (5) also includes machinery and equipment used in | ||||||
3 | the general
maintenance or repair of such exempt machinery and | ||||||
4 | equipment or for in-house
manufacture of exempt machinery and | ||||||
5 | equipment. For the purposes of exemption
(5), each of these | ||||||
6 | terms shall have the following meanings: (1) "manufacturing
| ||||||
7 | process" shall mean the production of any article of tangible | ||||||
8 | personal
property, whether such article is a finished product | ||||||
9 | or an article for use in
the process of manufacturing or | ||||||
10 | assembling a different article of tangible
personal property, | ||||||
11 | by procedures commonly regarded as manufacturing,
processing, | ||||||
12 | fabricating, or refining which changes some existing
material | ||||||
13 | or materials into a material with a different form, use or
| ||||||
14 | name. In relation to a recognized integrated business composed | ||||||
15 | of a
series of operations which collectively constitute | ||||||
16 | manufacturing, or
individually constitute manufacturing | ||||||
17 | operations, the manufacturing
process shall be deemed to | ||||||
18 | commence with the first operation or stage of
production in the | ||||||
19 | series, and shall not be deemed to end until the
completion of | ||||||
20 | the final product in the last operation or stage of
production | ||||||
21 | in the series; and further, for purposes of exemption (5),
| ||||||
22 | photoprocessing is deemed to be a manufacturing process of | ||||||
23 | tangible
personal property for wholesale or retail sale; (2) | ||||||
24 | "assembling process" shall
mean the production of any article | ||||||
25 | of tangible personal property, whether such
article is a | ||||||
26 | finished product or an article for use in the process of
| ||||||
27 | manufacturing or assembling a different article of tangible | ||||||
28 | personal
property, by the combination of existing materials in | ||||||
29 | a manner commonly
regarded as assembling which results in a | ||||||
30 | material of a different form,
use or name; (3) "machinery" | ||||||
31 | shall mean major mechanical machines or
major components of | ||||||
32 | such machines contributing to a manufacturing or
assembling | ||||||
33 | process; and (4) "equipment" shall include any independent
| ||||||
34 | device or tool separate from any machinery but essential to an
| ||||||
35 | integrated manufacturing or assembly process; including | ||||||
36 | computers
used primarily in a manufacturer's computer
assisted |
| |||||||
| |||||||
1 | design, computer assisted manufacturing (CAD/CAM) system;
or | ||||||
2 | any subunit or assembly comprising a component of any machinery | ||||||
3 | or
auxiliary, adjunct or attachment parts of machinery, such as | ||||||
4 | tools, dies,
jigs, fixtures, patterns and molds; or any parts | ||||||
5 | which require periodic
replacement in the course of normal | ||||||
6 | operation; but shall not include hand
tools.
Equipment includes | ||||||
7 | chemicals or chemicals acting as catalysts but only if the
| ||||||
8 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
9 | immediate change
upon a
product being manufactured or assembled | ||||||
10 | for wholesale or retail sale or
lease.
The purchaser of such | ||||||
11 | machinery and equipment who has an active
resale registration | ||||||
12 | number shall furnish such number to the seller at the
time of | ||||||
13 | purchase. The user of such machinery and equipment and tools
| ||||||
14 | without an active resale registration number shall prepare a | ||||||
15 | certificate of
exemption for each transaction stating facts | ||||||
16 | establishing the exemption for
that transaction, which | ||||||
17 | certificate shall be available to the Department
for inspection | ||||||
18 | or audit. The Department shall prescribe the form of the
| ||||||
19 | certificate.
| ||||||
20 | Any informal rulings, opinions or letters issued by the | ||||||
21 | Department in
response to an inquiry or request for any opinion | ||||||
22 | from any person
regarding the coverage and applicability of | ||||||
23 | exemption (5) to specific
devices shall be published, | ||||||
24 | maintained as a public record, and made
available for public | ||||||
25 | inspection and copying. If the informal ruling,
opinion or | ||||||
26 | letter contains trade secrets or other confidential
| ||||||
27 | information, where possible the Department shall delete such | ||||||
28 | information
prior to publication. Whenever such informal | ||||||
29 | rulings, opinions, or
letters contain any policy of general | ||||||
30 | applicability, the Department
shall formulate and adopt such | ||||||
31 | policy as a rule in accordance with the
provisions of the | ||||||
32 | Illinois Administrative Procedure Act.
| ||||||
33 | On and after July 1, 1987, no entity otherwise eligible | ||||||
34 | under exemption
(3) of this Section shall make tax free | ||||||
35 | purchases unless it has an active
exemption identification | ||||||
36 | number issued by the Department.
|
| |||||||
| |||||||
1 | Until the effective date of this amendatory Act of the 93rd | ||||||
2 | General Assembly, the purchase, employment and transfer of such | ||||||
3 | tangible personal
property as newsprint and ink for the primary | ||||||
4 | purpose of conveying news
(with or without other information) | ||||||
5 | is not a purchase, use or sale of
service or of tangible | ||||||
6 | personal property within the meaning of this Act.
| ||||||
7 | "Serviceman" means any person who is engaged in the | ||||||
8 | occupation of
making sales of service.
| ||||||
9 | "Sale at retail" means "sale at retail" as defined in the | ||||||
10 | Retailers'
Occupation Tax Act.
| ||||||
11 | "Supplier" means any person who makes sales of tangible | ||||||
12 | personal
property to servicemen for the purpose of resale as an | ||||||
13 | incident to a
sale of service.
| ||||||
14 | "Serviceman maintaining a place of business in this State", | ||||||
15 | or any
like term, means and includes any serviceman:
| ||||||
16 | 1. having or maintaining within this State, directly or | ||||||
17 | by a
subsidiary, an office, distribution house, sales | ||||||
18 | house, warehouse or
other place of business, or any agent | ||||||
19 | or other representative operating
within this State under | ||||||
20 | the authority of the serviceman or its
subsidiary, | ||||||
21 | irrespective of whether such place of business or agent or
| ||||||
22 | other representative is located here permanently or | ||||||
23 | temporarily, or
whether such serviceman or subsidiary is | ||||||
24 | licensed to do business in this
State;
| ||||||
25 | 2. soliciting orders for tangible personal property by | ||||||
26 | means of a
telecommunication or television shopping system | ||||||
27 | (which utilizes toll free
numbers) which is intended by the | ||||||
28 | retailer to be broadcast by cable
television or other means | ||||||
29 | of broadcasting, to consumers located in this State;
| ||||||
30 | 3. pursuant to a contract with a broadcaster or | ||||||
31 | publisher located in this
State, soliciting orders for | ||||||
32 | tangible personal property by means of advertising
which is | ||||||
33 | disseminated primarily to consumers located in this State | ||||||
34 | and only
secondarily to bordering jurisdictions;
| ||||||
35 | 4. soliciting orders for tangible personal property by | ||||||
36 | mail if the
solicitations are substantial and recurring and |
| |||||||
| |||||||
1 | if the retailer benefits
from any banking, financing, debt | ||||||
2 | collection, telecommunication, or
marketing activities | ||||||
3 | occurring in this State or benefits from the location
in | ||||||
4 | this State of authorized installation, servicing, or | ||||||
5 | repair facilities;
| ||||||
6 | 5. being owned or controlled by the same interests | ||||||
7 | which own or
control any retailer engaging in business in | ||||||
8 | the same or similar line of
business in this State;
| ||||||
9 | 6. having a franchisee or licensee operating under its | ||||||
10 | trade name if
the franchisee or licensee is required to | ||||||
11 | collect the tax under this Section;
| ||||||
12 | 7. pursuant to a contract with a cable television | ||||||
13 | operator located in
this State, soliciting orders for | ||||||
14 | tangible personal property by means of
advertising which is | ||||||
15 | transmitted or distributed over a cable television
system | ||||||
16 | in this State; or
| ||||||
17 | 8. engaging in activities in Illinois, which | ||||||
18 | activities in the
state in which the supply business | ||||||
19 | engaging in such activities is located
would constitute | ||||||
20 | maintaining a place of business in that state.
| ||||||
21 | (Source: P.A. 92-484, eff. 8-23-01; 93-23, eff. 6-20-03; 93-24, | ||||||
22 | eff.
6-20-03; revised 8-21-03.)
| ||||||
23 | Section 15. The Retailers' Occupation Tax Act is amended by | ||||||
24 | changing Section 1 as follows:
| ||||||
25 | (35 ILCS 120/1) (from Ch. 120, par. 440)
| ||||||
26 | Sec. 1. Definitions. "Sale at retail" means any transfer of | ||||||
27 | the
ownership of or title to
tangible personal property to a | ||||||
28 | purchaser, for the purpose of use or
consumption, and not for | ||||||
29 | the purpose of resale in any form as tangible
personal property | ||||||
30 | to the extent not first subjected to a use for which it
was | ||||||
31 | purchased, for a valuable consideration: Provided that the | ||||||
32 | property
purchased is deemed to be purchased for the purpose of | ||||||
33 | resale, despite
first being used, to the extent to which it is | ||||||
34 | resold as an ingredient of
an intentionally produced product or |
| |||||||
| |||||||
1 | byproduct of manufacturing. For this
purpose, slag produced as | ||||||
2 | an incident to manufacturing pig iron or steel
and sold is | ||||||
3 | considered to be an intentionally produced byproduct of
| ||||||
4 | manufacturing. Transactions whereby the possession of the | ||||||
5 | property is
transferred but the seller retains the title as | ||||||
6 | security for payment of the
selling price shall be deemed to be | ||||||
7 | sales.
| ||||||
8 | "Sale at retail" shall be construed to include any transfer | ||||||
9 | of the
ownership of or title to tangible personal property to a | ||||||
10 | purchaser, for use
or consumption by any other person to whom | ||||||
11 | such purchaser may transfer the
tangible personal property | ||||||
12 | without a valuable consideration, and to include
any transfer, | ||||||
13 | whether made for or without a valuable consideration, for
| ||||||
14 | resale in any form as tangible personal property unless made in | ||||||
15 | compliance
with Section 2c of this Act.
| ||||||
16 | Sales of tangible personal property, which property, to the | ||||||
17 | extent not
first subjected to a use for which it was purchased, | ||||||
18 | as an ingredient or
constituent, goes into and forms a part of | ||||||
19 | tangible personal property
subsequently the subject of a "Sale | ||||||
20 | at retail", are not sales at retail as
defined in this Act: | ||||||
21 | Provided that the property purchased is deemed to be
purchased | ||||||
22 | for the purpose of resale, despite first being used, to the
| ||||||
23 | extent to which it is resold as an ingredient of an | ||||||
24 | intentionally produced
product or byproduct of manufacturing.
| ||||||
25 | "Sale at retail" shall be construed to include any Illinois | ||||||
26 | florist's
sales transaction in which the purchase order is | ||||||
27 | received in Illinois by a
florist and the sale is for use or | ||||||
28 | consumption, but the Illinois florist
has a florist in another | ||||||
29 | state deliver the property to the purchaser or the
purchaser's | ||||||
30 | donee in such other state.
| ||||||
31 | Nonreusable tangible personal property that is used by | ||||||
32 | persons engaged in
the business of operating a restaurant, | ||||||
33 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
34 | transferred to customers in the ordinary course of business
as | ||||||
35 | part of the sale of food or beverages and is used to deliver, | ||||||
36 | package, or
consume food or beverages, regardless of where |
| |||||||
| |||||||
1 | consumption of the food or
beverages occurs. Examples of those | ||||||
2 | items include, but are not limited to
nonreusable, paper and | ||||||
3 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
4 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
5 | and
wrapping or packaging
materials that are transferred to | ||||||
6 | customers as part of the sale of food or
beverages in the | ||||||
7 | ordinary course of business.
| ||||||
8 | Until the effective date of this amendatory Act of the 93rd | ||||||
9 | General Assembly, the purchase, employment and transfer of such | ||||||
10 | tangible personal property
as newsprint and ink for the primary | ||||||
11 | purpose of conveying news (with or
without other information) | ||||||
12 | is not a purchase, use or sale of tangible
personal property.
| ||||||
13 | A person whose activities are organized and conducted | ||||||
14 | primarily as a
not-for-profit service enterprise, and who | ||||||
15 | engages in selling tangible
personal property at retail | ||||||
16 | (whether to the public or merely to members and
their guests) | ||||||
17 | is engaged in the business of selling tangible personal
| ||||||
18 | property at retail with respect to such transactions, excepting | ||||||
19 | only a
person organized and operated exclusively for | ||||||
20 | charitable, religious or
educational purposes either (1), to | ||||||
21 | the extent of sales by such person to
its members, students, | ||||||
22 | patients or inmates of tangible personal property to
be used | ||||||
23 | primarily for the purposes of such person, or (2), to the | ||||||
24 | extent of
sales by such person of tangible personal property | ||||||
25 | which is not sold or
offered for sale by persons organized for | ||||||
26 | profit. The selling of school
books and school supplies by | ||||||
27 | schools at retail to students is not
"primarily for the | ||||||
28 | purposes of" the school which does such selling. The
provisions | ||||||
29 | of this paragraph shall not apply to nor subject to taxation
| ||||||
30 | occasional dinners, socials or similar activities of a person | ||||||
31 | organized and
operated exclusively for charitable, religious | ||||||
32 | or educational purposes,
whether or not such activities are | ||||||
33 | open to the public.
| ||||||
34 | A person who is the recipient of a grant or contract under | ||||||
35 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
36 | serves meals to
participants in the federal Nutrition Program |
| |||||||
| |||||||
1 | for the Elderly in return for
contributions established in | ||||||
2 | amount by the individual participant pursuant
to a schedule of | ||||||
3 | suggested fees as provided for in the federal Act is not
| ||||||
4 | engaged in the business of selling tangible personal property | ||||||
5 | at retail
with respect to such transactions.
| ||||||
6 | "Purchaser" means anyone who, through a sale at retail, | ||||||
7 | acquires the
ownership of or title to tangible personal | ||||||
8 | property for a valuable
consideration.
| ||||||
9 | "Reseller of motor fuel" means any person engaged in the | ||||||
10 | business of selling
or delivering or transferring title of | ||||||
11 | motor fuel to another person
other than for use or consumption.
| ||||||
12 | No person shall act as a reseller of motor fuel within this | ||||||
13 | State without
first being registered as a reseller pursuant to | ||||||
14 | Section 2c or a retailer
pursuant to Section 2a.
| ||||||
15 | "Selling price" or the "amount of sale" means the | ||||||
16 | consideration for a
sale valued in money whether received in | ||||||
17 | money or otherwise, including
cash, credits, property, other | ||||||
18 | than as hereinafter provided, and services,
but not including | ||||||
19 | the value of or credit given for traded-in tangible
personal | ||||||
20 | property where the item that is traded-in is of like kind and
| ||||||
21 | character as that which is being sold, and shall be determined | ||||||
22 | without any
deduction on account of the cost of the property | ||||||
23 | sold, the cost of
materials used, labor or service cost or any | ||||||
24 | other expense whatsoever, but
does not include charges that are | ||||||
25 | added to prices by sellers on account of
the seller's tax | ||||||
26 | liability under this Act, or on account of the seller's
duty to | ||||||
27 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
28 | Tax
Act, or on account of the seller's tax liability under | ||||||
29 | Section 8-11-1 of
the Illinois Municipal Code, as heretofore | ||||||
30 | and hereafter amended, or on
account of the seller's tax | ||||||
31 | liability under the County Retailers'
Occupation Tax Act, or on | ||||||
32 | account of the seller's tax liability under the
Home Rule | ||||||
33 | Municipal Soft Drink Retailers' Occupation Tax,
or on account | ||||||
34 | of the seller's tax liability under any tax imposed under the
| ||||||
35 | "Regional Transportation Authority Act", approved December 12, | ||||||
36 | 1973.
Effective December 1, 1985, "selling price" shall include |
| |||||||
| |||||||
1 | charges that
are added to prices by sellers on account of the | ||||||
2 | seller's
tax liability under the Cigarette Tax Act, on account | ||||||
3 | of the sellers'
duty to collect, from the purchaser, the tax | ||||||
4 | imposed under the Cigarette
Use Tax Act, and on account of the | ||||||
5 | seller's duty to collect, from the
purchaser, any cigarette tax | ||||||
6 | imposed by a home rule unit.
| ||||||
7 | The phrase "like kind and character" shall be liberally | ||||||
8 | construed
(including but not limited to any form of motor | ||||||
9 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
10 | agricultural implement for any other
kind of farm or | ||||||
11 | agricultural implement), while not including a kind of item
| ||||||
12 | which, if sold at retail by that retailer, would be exempt from | ||||||
13 | retailers'
occupation tax and use tax as an isolated or | ||||||
14 | occasional sale.
| ||||||
15 | "Gross receipts" from the sales of tangible personal | ||||||
16 | property at retail
means the total selling price or the amount | ||||||
17 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
18 | and time sales, the amount thereof shall be
included only as | ||||||
19 | and when payments are received by the seller.
Receipts or other | ||||||
20 | consideration derived by a seller from
the sale, transfer or | ||||||
21 | assignment of accounts receivable to a wholly owned
subsidiary | ||||||
22 | will not be deemed payments prior to the time the purchaser
| ||||||
23 | makes payment on such accounts.
| ||||||
24 | "Department" means the Department of Revenue.
| ||||||
25 | "Person" means any natural individual, firm, partnership, | ||||||
26 | association,
joint stock company, joint adventure, public or | ||||||
27 | private corporation, limited
liability company, or a receiver, | ||||||
28 | executor, trustee, guardian or other
representative appointed | ||||||
29 | by order of any court.
| ||||||
30 | The isolated or occasional sale of tangible personal | ||||||
31 | property at retail
by a person who does not hold himself out as | ||||||
32 | being engaged (or who does not
habitually engage) in selling | ||||||
33 | such tangible personal property at retail, or
a sale through a | ||||||
34 | bulk vending machine, does not constitute engaging in a
| ||||||
35 | business of selling such tangible personal property at retail | ||||||
36 | within the
meaning of this Act; provided that any person who is |
| |||||||
| |||||||
1 | engaged in a business
which is not subject to the tax imposed | ||||||
2 | by this Act because of involving
the sale of or a contract to | ||||||
3 | sell real estate or a construction contract to
improve real | ||||||
4 | estate or a construction contract to engineer, install, and
| ||||||
5 | maintain an integrated system of products, but who, in the | ||||||
6 | course of
conducting such business,
transfers tangible | ||||||
7 | personal property to users or consumers in the finished
form in | ||||||
8 | which it was purchased, and which does not become real estate | ||||||
9 | or was
not engineered and installed, under any provision of a | ||||||
10 | construction contract or
real estate sale or real estate sales | ||||||
11 | agreement entered into with some other
person arising out of or | ||||||
12 | because of such nontaxable business, is engaged in the
business | ||||||
13 | of selling tangible personal property at retail to the extent | ||||||
14 | of the
value of the tangible personal property so transferred. | ||||||
15 | If, in such a
transaction, a separate charge is made for the | ||||||
16 | tangible personal property so
transferred, the value of such | ||||||
17 | property, for the purpose of this Act, shall be
the amount so | ||||||
18 | separately charged, but not less than the cost of such property
| ||||||
19 | to the transferor; if no separate charge is made, the value of | ||||||
20 | such property,
for the purposes of this Act, is the cost to the | ||||||
21 | transferor of such tangible
personal property. Construction | ||||||
22 | contracts for the improvement of real estate
consisting of | ||||||
23 | engineering, installation, and maintenance of voice, data, | ||||||
24 | video,
security, and all telecommunication systems do not | ||||||
25 | constitute engaging in a
business of selling tangible personal | ||||||
26 | property at retail within the meaning of
this Act if they are | ||||||
27 | sold at one specified contract price.
| ||||||
28 | A person who holds himself or herself out as being engaged | ||||||
29 | (or who habitually
engages) in selling tangible personal | ||||||
30 | property at retail is a person
engaged in the business of | ||||||
31 | selling tangible personal property at retail
hereunder with | ||||||
32 | respect to such sales (and not primarily in a service
| ||||||
33 | occupation) notwithstanding the fact that such person designs | ||||||
34 | and produces
such tangible personal property on special order | ||||||
35 | for the purchaser and in
such a way as to render the property | ||||||
36 | of value only to such purchaser, if
such tangible personal |
| |||||||
| |||||||
1 | property so produced on special order serves
substantially the | ||||||
2 | same function as stock or standard items of tangible
personal | ||||||
3 | property that are sold at retail.
| ||||||
4 | Persons who engage in the business of transferring tangible | ||||||
5 | personal
property upon the redemption of trading stamps are | ||||||
6 | engaged in the business
of selling such property at retail and | ||||||
7 | shall be liable for and shall pay
the tax imposed by this Act | ||||||
8 | on the basis of the retail value of the
property transferred | ||||||
9 | upon redemption of such stamps.
| ||||||
10 | "Bulk vending machine" means a vending machine,
containing | ||||||
11 | unsorted confections, nuts, toys, or other items designed
| ||||||
12 | primarily to be used or played with by children
which, when a | ||||||
13 | coin or coins of a denomination not larger than $0.50 are
| ||||||
14 | inserted, are dispensed in equal portions, at random and
| ||||||
15 | without selection by the customer.
| ||||||
16 | (Source: P.A. 92-213, eff. 1-1-02.)
|