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1 | | is deemed to
be purchased for the purpose of resale, despite |
2 | | first being used, to the
extent to which it is resold as an |
3 | | ingredient of an intentionally produced
product or by-product |
4 | | of manufacturing. "Use" does not mean the demonstration
use or |
5 | | interim use of tangible personal property by a retailer before |
6 | | he sells
that tangible personal property. For watercraft or |
7 | | aircraft, if the period of
demonstration use or interim use by |
8 | | the retailer exceeds 18 months,
the retailer
shall pay on the |
9 | | retailers' original cost price the tax imposed by this Act,
and |
10 | | no credit for that tax is permitted if the watercraft or |
11 | | aircraft is
subsequently sold by the retailer. "Use" does not |
12 | | mean the physical
incorporation of tangible personal property, |
13 | | to the extent not first subjected
to a use for which it was |
14 | | purchased, as an ingredient or constituent, into
other tangible |
15 | | personal property (a) which is sold in the regular course of
|
16 | | business or (b) which the person incorporating such ingredient |
17 | | or constituent
therein has undertaken at the time of such |
18 | | purchase to cause to be transported
in interstate commerce to |
19 | | destinations outside the State of Illinois: Provided
that the |
20 | | property purchased is deemed to be purchased for the purpose of
|
21 | | resale, despite first being used, to the extent to which it is |
22 | | resold as an
ingredient of an intentionally produced product or |
23 | | by-product of manufacturing.
|
24 | | "Watercraft" means a Class 2, Class 3, or Class 4 |
25 | | watercraft as defined in
Section 3-2 of the Boat Registration |
26 | | and Safety Act, a personal watercraft, or
any boat equipped |
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1 | | with an inboard motor.
|
2 | | "Purchase at retail" means the acquisition of the ownership |
3 | | of or title
to tangible personal property through a sale at |
4 | | retail.
|
5 | | "Purchaser" means anyone who, through a sale at retail, |
6 | | acquires the
ownership of tangible personal property for a |
7 | | valuable consideration.
|
8 | | "Sale at retail" means any transfer of the ownership of or |
9 | | title to
tangible personal property to a purchaser, for the |
10 | | purpose of use, and not
for the purpose of resale in any form |
11 | | as tangible personal property to the
extent not first subjected |
12 | | to a use for which it was purchased, for a
valuable |
13 | | consideration: Provided that the property purchased is deemed |
14 | | to
be purchased for the purpose of resale, despite first being |
15 | | used, to the
extent to which it is resold as an ingredient of |
16 | | an intentionally produced
product or by-product of |
17 | | manufacturing. For this purpose, slag produced as
an incident |
18 | | to manufacturing pig iron or steel and sold is considered to be
|
19 | | an intentionally produced by-product of manufacturing. "Sale |
20 | | at retail"
includes any such transfer made for resale unless |
21 | | made in compliance with
Section 2c of the Retailers' Occupation |
22 | | Tax Act, as incorporated by
reference into Section 12 of this |
23 | | Act. Transactions whereby the possession
of the property is |
24 | | transferred but the seller retains the title as security
for |
25 | | payment of the selling price are sales.
|
26 | | "Sale at retail" shall also be construed to include any |
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1 | | Illinois
florist's sales transaction in which the purchase |
2 | | order is received in
Illinois by a florist and the sale is for |
3 | | use or consumption, but the
Illinois florist has a florist in |
4 | | another state deliver the property to the
purchaser or the |
5 | | purchaser's donee in such other state.
|
6 | | Nonreusable tangible personal property that is used by |
7 | | persons engaged in
the business of operating a restaurant, |
8 | | cafeteria, or drive-in is a sale for
resale when it is |
9 | | transferred to customers in the ordinary course of business
as |
10 | | part of the sale of food or beverages and is used to deliver, |
11 | | package, or
consume food or beverages, regardless of where |
12 | | consumption of the food or
beverages occurs. Examples of those |
13 | | items include, but are not limited to
nonreusable, paper and |
14 | | plastic cups, plates, baskets, boxes, sleeves, buckets
or other |
15 | | containers, utensils, straws, placemats, napkins, doggie bags, |
16 | | and
wrapping or packaging
materials that are transferred to |
17 | | customers as part of the sale of food or
beverages in the |
18 | | ordinary course of business.
|
19 | | The purchase, employment and transfer of such tangible |
20 | | personal property
as newsprint and ink for the primary purpose |
21 | | of conveying news (with or
without other information) is not a |
22 | | 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 |
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1 | | traded-in tangible personal property where the
item that is |
2 | | traded-in is of like kind and character as that which is being
|
3 | | sold, and shall be determined without any deduction on account |
4 | | of the cost
of the property sold, the cost of materials used, |
5 | | labor or service cost or
any other expense whatsoever, but does |
6 | | not include interest or finance
charges which appear as |
7 | | separate items on the bill of sale or sales
contract nor |
8 | | charges that are added to prices by sellers on account of the
|
9 | | seller's tax liability under the "Retailers' Occupation Tax |
10 | | Act", or on
account of the seller's duty to collect, from the |
11 | | purchaser, the tax that
is imposed by this Act, or, except as |
12 | | otherwise provided with respect to any cigarette tax imposed by |
13 | | a home rule unit, on account of the seller's tax liability |
14 | | under any local occupation tax administered by the Department, |
15 | | or, except as otherwise provided with respect to any cigarette |
16 | | tax imposed by a home rule unit on account of the seller's duty |
17 | | to collect, from the purchasers, the tax that is imposed under |
18 | | any local use tax administered by the Department. Effective |
19 | | December 1, 1985, "selling price"
shall include charges that |
20 | | are added to prices by sellers on account of the
seller's tax |
21 | | liability under the Cigarette Tax Act, on account of the |
22 | | seller's
duty to collect, from the purchaser, the tax imposed |
23 | | under the Cigarette Use
Tax Act, and on account of the seller's |
24 | | duty to collect, from the purchaser,
any cigarette tax imposed |
25 | | by a home rule unit.
|
26 | | The phrase "like kind and character" shall be liberally |
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1 | | construed
(including but not limited to any form of motor |
2 | | vehicle for any form of
motor vehicle, or any kind of farm or |
3 | | agricultural implement for any other
kind of farm or |
4 | | agricultural implement), while not including a kind of item
|
5 | | which, if sold at retail by that retailer, would be exempt from |
6 | | retailers'
occupation tax and use tax as an isolated or |
7 | | occasional sale.
|
8 | | "Department" means the Department of Revenue.
|
9 | | "Person" means any natural individual, firm, partnership, |
10 | | association,
joint stock company, joint adventure, public or |
11 | | private corporation, limited
liability company, or a
receiver, |
12 | | executor, trustee, guardian or other representative appointed
|
13 | | by order of any court.
|
14 | | "Retailer" means and includes every person engaged in the |
15 | | business of
making sales at retail as defined in this Section.
|
16 | | A person who holds himself or herself out as being engaged |
17 | | (or who habitually
engages) in selling tangible personal |
18 | | property at retail is a retailer
hereunder with respect to such |
19 | | sales (and not primarily in a service
occupation) |
20 | | notwithstanding the fact that such person designs and produces
|
21 | | such tangible personal property on special order for the |
22 | | purchaser and in
such a way as to render the property of value |
23 | | only to such purchaser, if
such tangible personal property so |
24 | | produced on special order serves
substantially the same |
25 | | function as stock or standard items of tangible
personal |
26 | | property that are sold at retail.
|
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1 | | A person whose activities are organized and conducted |
2 | | primarily as a
not-for-profit service enterprise, and who |
3 | | engages in selling tangible
personal property at retail |
4 | | (whether to the public or merely to members and
their guests) |
5 | | is a retailer with respect to such transactions, excepting
only |
6 | | a person organized and operated exclusively for charitable, |
7 | | religious
or educational purposes either (1), to the extent of |
8 | | sales by such person
to its members, students, patients or |
9 | | inmates of tangible personal property
to be used primarily for |
10 | | the purposes of such person, or (2), to the extent
of sales by |
11 | | such person of tangible personal property which is not sold or
|
12 | | offered for sale by persons organized for profit. The selling |
13 | | of school
books and school supplies by schools at retail to |
14 | | students is not
"primarily for the purposes of" the school |
15 | | which does such selling. This
paragraph does not apply to nor |
16 | | subject to taxation occasional dinners,
social or similar |
17 | | activities of a person organized and operated exclusively
for |
18 | | charitable, religious or educational purposes, whether or not |
19 | | such
activities are open to the public.
|
20 | | A person who is the recipient of a grant or contract under |
21 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and |
22 | | serves meals to
participants in the federal Nutrition Program |
23 | | for the Elderly in return for
contributions established in |
24 | | amount by the individual participant pursuant
to a schedule of |
25 | | suggested fees as provided for in the federal Act is not a
|
26 | | retailer under this Act with respect to such transactions.
|
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1 | | Persons who engage in the business of transferring tangible |
2 | | personal
property upon the redemption of trading stamps are |
3 | | retailers hereunder when
engaged in such business.
|
4 | | The isolated or occasional sale of tangible personal |
5 | | property at retail
by a person who does not hold himself out as |
6 | | being engaged (or who does not
habitually engage) in selling |
7 | | such tangible personal property at retail or
a sale through a |
8 | | bulk vending machine does not make such person a retailer
|
9 | | hereunder. However, any person who is engaged in a business |
10 | | which is not
subject to the tax imposed by the "Retailers' |
11 | | Occupation Tax Act" because
of involving the sale of or a |
12 | | contract to sell real estate or a
construction contract to |
13 | | improve real estate, but who, in the course of
conducting such |
14 | | business, transfers tangible personal property to users or
|
15 | | consumers in the finished form in which it was purchased, and |
16 | | which does
not become real estate, under any provision of a |
17 | | construction contract or
real estate sale or real estate sales |
18 | | agreement entered into with some
other person arising out of or |
19 | | because of such nontaxable business, is a
retailer to the |
20 | | extent of the value of the tangible personal property so
|
21 | | transferred. If, in such transaction, a separate charge is made |
22 | | for the
tangible personal property so transferred, the value of |
23 | | such property, for
the purposes of this Act, is the amount so |
24 | | separately charged, but not less
than the cost of such property |
25 | | to the transferor; if no separate charge is
made, the value of |
26 | | such property, for the purposes of this Act, is the cost
to the |
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1 | | transferor of such tangible personal property.
|
2 | | "Retailer maintaining a place of business in this State", |
3 | | or any like
term, means and includes any of the following |
4 | | retailers:
|
5 | | 1. A retailer having or maintaining within this State, |
6 | | directly or by
a subsidiary, an office, distribution house, |
7 | | sales house, warehouse or other
place of business, or any |
8 | | agent or other representative operating within this
State |
9 | | under the authority of the retailer or its subsidiary, |
10 | | irrespective of
whether such place of business or agent or |
11 | | other representative is located here
permanently or |
12 | | temporarily, or whether such retailer or subsidiary is |
13 | | licensed
to do business in this State. However, the |
14 | | ownership of property that is
located at the premises of a |
15 | | printer with which the retailer has contracted for
printing |
16 | | and that consists of the final printed product, property |
17 | | that becomes
a part of the final printed product, or copy |
18 | | from which the printed product is
produced shall not result |
19 | | in the retailer being deemed to have or maintain an
office, |
20 | | distribution house, sales house, warehouse, or other place |
21 | | of business
within this State. |
22 | | 1.1. A Beginning July 1, 2011, a retailer having a |
23 | | contract with a person located in this State under which |
24 | | the person, for a commission or other consideration based |
25 | | upon the sale of tangible personal property by the |
26 | | retailer, directly or indirectly refers potential |
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1 | | customers to the retailer by providing to the potential |
2 | | customers a promotional code or other mechanism that allows |
3 | | the retailer to track purchases referred by such persons. |
4 | | Examples of mechanisms that allow the retailer to track |
5 | | purchases referred by such persons include but are not |
6 | | limited to the use of a link on the person's Internet |
7 | | website , promotional codes distributed through the |
8 | | person's hand-delivered or mailed material, and |
9 | | promotional codes distributed by the person through radio |
10 | | or other broadcast media . The provisions of this paragraph |
11 | | 1.1 shall apply only if the cumulative gross receipts from |
12 | | sales of tangible personal property by the retailer to |
13 | | customers who are referred to the retailer by all persons |
14 | | in this State under such contracts exceed $10,000 during |
15 | | the preceding 4 quarterly periods ending on the last day of |
16 | | March, June, September, and December. A retailer meeting |
17 | | the requirements of this paragraph 1.1 shall be presumed to |
18 | | be maintaining a place of business in this State but may |
19 | | rebut this presumption by submitting proof that the |
20 | | referrals or other activities pursued within this State by |
21 | | such persons were not sufficient to meet the nexus |
22 | | standards of the United States Constitution during the |
23 | | preceding 4 quarterly periods. |
24 | | 1.2. Beginning July 1, 2011, a retailer having a |
25 | | contract with a person located in this State under which: |
26 | | A. the retailer sells the same or substantially |
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1 | | similar line of products as the person located in this |
2 | | State and does so using an identical or substantially |
3 | | similar name, trade name, or trademark as the person |
4 | | located in this State; and |
5 | | B. the retailer provides a commission or other |
6 | | consideration to the person located in this State based |
7 | | upon the sale of tangible personal property by the |
8 | | retailer. |
9 | | The provisions of this paragraph 1.2 shall apply only if |
10 | | the cumulative gross receipts from sales of tangible |
11 | | personal property by the retailer to customers in this |
12 | | State under all such contracts exceed $10,000 during the |
13 | | preceding 4 quarterly periods ending on the last day of |
14 | | March, June, September, and December.
|
15 | | 2. A retailer soliciting orders for tangible personal |
16 | | property by
means of a telecommunication or television |
17 | | shopping system (which utilizes toll
free numbers) which is |
18 | | intended by the retailer to be broadcast by cable
|
19 | | television or other means of broadcasting, to consumers |
20 | | located in this State.
|
21 | | 3. A retailer, pursuant to a contract with a |
22 | | broadcaster or publisher
located in this State, soliciting |
23 | | orders for tangible personal property by
means of |
24 | | advertising which is disseminated primarily to consumers |
25 | | located in
this State and only secondarily to bordering |
26 | | jurisdictions.
|
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1 | | 4. A retailer soliciting orders for tangible personal |
2 | | property by mail
if the solicitations are substantial and |
3 | | recurring and if the retailer benefits
from any banking, |
4 | | financing, debt collection, telecommunication, or |
5 | | marketing
activities occurring in this State or benefits |
6 | | from the location in this State
of authorized installation, |
7 | | servicing, or repair facilities.
|
8 | | 5. A retailer that is owned or controlled by the same |
9 | | interests that own
or control any retailer engaging in |
10 | | business in the same or similar line of
business in this |
11 | | State.
|
12 | | 6. A retailer having a franchisee or licensee operating |
13 | | under its trade
name if the franchisee or licensee is |
14 | | required to collect the tax under this
Section.
|
15 | | 7. A retailer, pursuant to a contract with a cable |
16 | | television operator
located in this State, soliciting |
17 | | orders for tangible personal property by
means of |
18 | | advertising which is transmitted or distributed over a |
19 | | cable
television system in this State.
|
20 | | 8. A retailer engaging in activities in Illinois, which |
21 | | activities in
the state in which the retail business |
22 | | engaging in such activities is located
would constitute |
23 | | maintaining a place of business in that state.
|
24 | | "Bulk vending machine" means a vending machine,
containing |
25 | | unsorted confections, nuts, toys, or other items designed
|
26 | | primarily to be used or played with by children
which, when a |
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1 | | coin or coins of a denomination not larger than $0.50 are |
2 | | inserted, are dispensed in equal portions, at random and
|
3 | | without selection by the customer.
|
4 | | (Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11.)
|
5 | | (Text of Section after amendment by P.A. 98-628 )
|
6 | | Sec. 2. Definitions. |
7 | | "Use" means the exercise by any person of any right or power |
8 | | over
tangible personal property incident to the ownership of |
9 | | that property,
except that it does not include the sale of such |
10 | | property in any form as
tangible personal property in the |
11 | | regular course of business to the extent
that such property is |
12 | | not first subjected to a use for which it was
purchased, and |
13 | | does not include the use of such property by its owner for
|
14 | | demonstration purposes: Provided that the property purchased |
15 | | is deemed to
be purchased for the purpose of resale, despite |
16 | | first being used, to the
extent to which it is resold as an |
17 | | ingredient of an intentionally produced
product or by-product |
18 | | of manufacturing. "Use" does not mean the demonstration
use or |
19 | | interim use of tangible personal property by a retailer before |
20 | | he sells
that tangible personal property. For watercraft or |
21 | | aircraft, if the period of
demonstration use or interim use by |
22 | | the retailer exceeds 18 months,
the retailer
shall pay on the |
23 | | retailers' original cost price the tax imposed by this Act,
and |
24 | | no credit for that tax is permitted if the watercraft or |
25 | | aircraft is
subsequently sold by the retailer. "Use" does not |
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1 | | mean the physical
incorporation of tangible personal property, |
2 | | to the extent not first subjected
to a use for which it was |
3 | | purchased, as an ingredient or constituent, into
other tangible |
4 | | personal property (a) which is sold in the regular course of
|
5 | | business or (b) which the person incorporating such ingredient |
6 | | or constituent
therein has undertaken at the time of such |
7 | | purchase to cause to be transported
in interstate commerce to |
8 | | destinations outside the State of Illinois: Provided
that the |
9 | | property purchased is deemed to be purchased for the purpose of
|
10 | | resale, despite first being used, to the extent to which it is |
11 | | resold as an
ingredient of an intentionally produced product or |
12 | | by-product of manufacturing.
|
13 | | "Watercraft" means a Class 2, Class 3, or Class 4 |
14 | | watercraft as defined in
Section 3-2 of the Boat Registration |
15 | | and Safety Act, a personal watercraft, or
any boat equipped |
16 | | with an inboard motor.
|
17 | | "Purchase at retail" means the acquisition of the ownership |
18 | | of or title
to tangible personal property through a sale at |
19 | | retail.
|
20 | | "Purchaser" means anyone who, through a sale at retail, |
21 | | acquires the
ownership of tangible personal property for a |
22 | | valuable consideration.
|
23 | | "Sale at retail" means any transfer of the ownership of or |
24 | | title to
tangible personal property to a purchaser, for the |
25 | | purpose of use, and not
for the purpose of resale in any form |
26 | | as tangible personal property to the
extent not first subjected |
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1 | | to a use for which it was purchased, for a
valuable |
2 | | consideration: Provided that the property purchased is deemed |
3 | | to
be purchased for the purpose of resale, despite first being |
4 | | used, to the
extent to which it is resold as an ingredient of |
5 | | an intentionally produced
product or by-product of |
6 | | manufacturing. For this purpose, slag produced as
an incident |
7 | | to manufacturing pig iron or steel and sold is considered to be
|
8 | | an intentionally produced by-product of manufacturing. "Sale |
9 | | at retail"
includes any such transfer made for resale unless |
10 | | made in compliance with
Section 2c of the Retailers' Occupation |
11 | | Tax Act, as incorporated by
reference into Section 12 of this |
12 | | Act. Transactions whereby the possession
of the property is |
13 | | transferred but the seller retains the title as security
for |
14 | | payment of the selling price are sales.
|
15 | | "Sale at retail" shall also be construed to include any |
16 | | Illinois
florist's sales transaction in which the purchase |
17 | | order is received in
Illinois by a florist and the sale is for |
18 | | use or consumption, but the
Illinois florist has a florist in |
19 | | another state deliver the property to the
purchaser or the |
20 | | purchaser's donee in such other state.
|
21 | | Nonreusable tangible personal property that is used by |
22 | | persons engaged in
the business of operating a restaurant, |
23 | | cafeteria, or drive-in is a sale for
resale when it is |
24 | | transferred to customers in the ordinary course of business
as |
25 | | part of the sale of food or beverages and is used to deliver, |
26 | | package, or
consume food or beverages, regardless of where |
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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 | | The purchase, employment and transfer of such tangible |
9 | | personal property
as newsprint and ink for the primary purpose |
10 | | of conveying news (with or
without other information) is not a |
11 | | purchase, use or sale of tangible
personal property.
|
12 | | "Selling price" means the consideration for a sale valued |
13 | | in money
whether received in money or otherwise, including |
14 | | cash, credits, property
other than as hereinafter provided, and |
15 | | services, but not including the
value of or credit given for |
16 | | traded-in tangible personal property where the
item that is |
17 | | traded-in is of like kind and character as that which is being
|
18 | | sold, and shall be determined without any deduction on account |
19 | | of the cost
of the property sold, the cost of materials used, |
20 | | labor or service cost or
any other expense whatsoever, but does |
21 | | not include interest or finance
charges which appear as |
22 | | separate items on the bill of sale or sales
contract nor |
23 | | charges that are added to prices by sellers on account of the
|
24 | | seller's tax liability under the "Retailers' Occupation Tax |
25 | | Act", or on
account of the seller's duty to collect, from the |
26 | | purchaser, the tax that
is imposed by this Act, or, except as |
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1 | | otherwise provided with respect to any cigarette tax imposed by |
2 | | a home rule unit, on account of the seller's tax liability |
3 | | under any local occupation tax administered by the Department, |
4 | | or, except as otherwise provided with respect to any cigarette |
5 | | tax imposed by a home rule unit on account of the seller's duty |
6 | | to collect, from the purchasers, the tax that is imposed under |
7 | | any local use tax administered by the Department. Effective |
8 | | December 1, 1985, "selling price"
shall include charges that |
9 | | are added to prices by sellers on account of the
seller's tax |
10 | | liability under the Cigarette Tax Act, on account of the |
11 | | seller's
duty to collect, from the purchaser, the tax imposed |
12 | | under the Cigarette Use
Tax Act, and on account of the seller's |
13 | | duty to collect, from the purchaser,
any cigarette tax imposed |
14 | | by a home rule unit.
|
15 | | Notwithstanding any law to the contrary, for any motor |
16 | | vehicle, as defined in Section 1-146 of the Vehicle Code, that |
17 | | is sold on or after July 1, 2014 for the purpose of leasing the |
18 | | vehicle for a defined period that is longer than one year and |
19 | | (1) is a motor vehicle of the second division that: (A) is a |
20 | | self-contained motor vehicle designed or permanently converted |
21 | | to provide living quarters for recreational, camping, or travel |
22 | | use, with direct walk through access to the living quarters |
23 | | from the driver's seat; (B) is of the van configuration |
24 | | designed for the transportation of not less than 7 nor more |
25 | | than 16 passengers; or (C) has a gross vehicle weight rating of |
26 | | 8,000 pounds or less or (2) is a motor vehicle of the first |
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1 | | division, "selling price" or "amount of sale" means the |
2 | | consideration received by the lessor pursuant to the lease |
3 | | contract, including amounts due at lease signing and all |
4 | | monthly or other regular payments charged over the term of the |
5 | | lease. Also included in the selling price is any amount |
6 | | received by the lessor from the lessee for the leased vehicle |
7 | | that is not calculated at the time the lease is executed, |
8 | | including, but not limited to, excess mileage charges and |
9 | | charges for excess wear and tear. For sales that occur in |
10 | | Illinois, with respect to any amount received by the lessor |
11 | | from the lessee for the leased vehicle that is not calculated |
12 | | at the time the lease is executed, the lessor who purchased the |
13 | | motor vehicle does not incur the tax imposed by the Use Tax Act |
14 | | on those amounts, and the retailer who makes the retail sale of |
15 | | the motor vehicle to the lessor is not required to collect the |
16 | | tax imposed by this Act or to pay the tax imposed by the |
17 | | Retailers' Occupation Tax Act on those amounts. However, the |
18 | | lessor who purchased the motor vehicle assumes the liability |
19 | | for reporting and paying the tax on those amounts directly to |
20 | | the Department in the same form (Illinois Retailers' Occupation |
21 | | Tax, and local retailers' occupation taxes, if applicable) in |
22 | | which the retailer would have reported and paid such tax if the |
23 | | retailer had accounted for the tax to the Department. For |
24 | | amounts received by the lessor from the lessee that are not |
25 | | calculated at the time the lease is executed, the lessor must |
26 | | file the return and pay the tax to the Department by the due |
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1 | | date otherwise required by this Act for returns other than |
2 | | transaction returns. If the retailer is entitled under this Act |
3 | | to a discount for collecting and remitting the tax imposed |
4 | | under this Act to the Department with respect to the sale of |
5 | | the motor vehicle to the lessor, then the right to the discount |
6 | | provided in this Act shall be transferred to the lessor with |
7 | | respect to the tax paid by the lessor for any amount received |
8 | | by the lessor from the lessee for the leased vehicle that is |
9 | | not calculated at the time the lease is executed; provided that |
10 | | the discount is only allowed if the return is timely filed and |
11 | | for amounts timely paid. The "selling price" of a motor vehicle |
12 | | that is sold on or after July 1, 2014 for the purpose of |
13 | | leasing for a defined period of longer than one year shall not |
14 | | be reduced by the value of or credit given for traded-in |
15 | | tangible personal property owned by the lessor, nor shall it be |
16 | | reduced by the value of or credit given for traded-in tangible |
17 | | personal property owned by the lessee, regardless of whether |
18 | | the trade-in value thereof is assigned by the lessee to the |
19 | | lessor. In the case of a motor vehicle that is sold for the |
20 | | purpose of leasing for a defined period of longer than one |
21 | | year, the sale occurs at the time of the delivery of the |
22 | | vehicle, regardless of the due date of any lease payments. A |
23 | | lessor who incurs a Retailers' Occupation Tax liability on the |
24 | | sale of a motor vehicle coming off lease may not take a credit |
25 | | against that liability for the Use Tax the lessor paid upon the |
26 | | purchase of the motor vehicle (or for any tax the lessor paid |
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1 | | with respect to any amount received by the lessor from the |
2 | | lessee for the leased vehicle that was not calculated at the |
3 | | time the lease was executed) if the selling price of the motor |
4 | | vehicle at the time of purchase was calculated using the |
5 | | definition of "selling price" as defined in this paragraph. |
6 | | Notwithstanding any other provision of this Act to the |
7 | | contrary, lessors shall file all returns and make all payments |
8 | | required under this paragraph to the Department by electronic |
9 | | means in the manner and form as required by the Department. |
10 | | This paragraph does not apply to leases of motor vehicles for |
11 | | which, at the time the lease is entered into, the term of the |
12 | | lease is not a defined period, including leases with a defined |
13 | | initial period with the option to continue the lease on a |
14 | | month-to-month or other basis beyond the initial defined |
15 | | period. |
16 | | The phrase "like kind and character" shall be liberally |
17 | | construed
(including but not limited to any form of motor |
18 | | vehicle for any form of
motor vehicle, or any kind of farm or |
19 | | agricultural implement for any other
kind of farm or |
20 | | agricultural implement), while not including a kind of item
|
21 | | which, if sold at retail by that retailer, would be exempt from |
22 | | retailers'
occupation tax and use tax as an isolated or |
23 | | occasional sale.
|
24 | | "Department" means the Department of Revenue.
|
25 | | "Person" means any natural individual, firm, partnership, |
26 | | association,
joint stock company, joint adventure, public or |
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1 | | private corporation, limited
liability company, or a
receiver, |
2 | | executor, trustee, guardian or other representative appointed
|
3 | | by order of any court.
|
4 | | "Retailer" means and includes every person engaged in the |
5 | | business of
making sales at retail as defined in this Section.
|
6 | | A person who holds himself or herself out as being engaged |
7 | | (or who habitually
engages) in selling tangible personal |
8 | | property at retail is a retailer
hereunder with respect to such |
9 | | sales (and not primarily in a service
occupation) |
10 | | notwithstanding the fact that such person designs and produces
|
11 | | such tangible personal property on special order for the |
12 | | purchaser and in
such a way as to render the property of value |
13 | | only to such purchaser, if
such tangible personal property so |
14 | | produced on special order serves
substantially the same |
15 | | function as stock or standard items of tangible
personal |
16 | | property that are sold at retail.
|
17 | | A person whose activities are organized and conducted |
18 | | primarily as a
not-for-profit service enterprise, and who |
19 | | engages in selling tangible
personal property at retail |
20 | | (whether to the public or merely to members and
their guests) |
21 | | is a retailer with respect to such transactions, excepting
only |
22 | | a person organized and operated exclusively for charitable, |
23 | | religious
or educational purposes either (1), to the extent of |
24 | | sales by such person
to its members, students, patients or |
25 | | inmates of tangible personal property
to be used primarily for |
26 | | the purposes of such person, or (2), to the extent
of sales by |
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1 | | such person of tangible personal property which is not sold or
|
2 | | offered for sale by persons organized for profit. The selling |
3 | | of school
books and school supplies by schools at retail to |
4 | | students is not
"primarily for the purposes of" the school |
5 | | which does such selling. This
paragraph does not apply to nor |
6 | | subject to taxation occasional dinners,
social or similar |
7 | | activities of a person organized and operated exclusively
for |
8 | | charitable, religious or educational purposes, whether or not |
9 | | such
activities are open to the public.
|
10 | | A person who is the recipient of a grant or contract under |
11 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and |
12 | | serves meals to
participants in the federal Nutrition Program |
13 | | for the Elderly in return for
contributions established in |
14 | | amount by the individual participant pursuant
to a schedule of |
15 | | suggested fees as provided for in the federal Act is not a
|
16 | | retailer under this Act with respect to such transactions.
|
17 | | Persons who engage in the business of transferring tangible |
18 | | personal
property upon the redemption of trading stamps are |
19 | | retailers hereunder when
engaged in such business.
|
20 | | The isolated or occasional sale of tangible personal |
21 | | property at retail
by a person who does not hold himself out as |
22 | | being engaged (or who does not
habitually engage) in selling |
23 | | such tangible personal property at retail or
a sale through a |
24 | | bulk vending machine does not make such person a retailer
|
25 | | hereunder. However, any person who is engaged in a business |
26 | | which is not
subject to the tax imposed by the "Retailers' |
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1 | | Occupation Tax Act" because
of involving the sale of or a |
2 | | contract to sell real estate or a
construction contract to |
3 | | improve real estate, but who, in the course of
conducting such |
4 | | business, transfers tangible personal property to users or
|
5 | | consumers in the finished form in which it was purchased, and |
6 | | which does
not become real estate, under any provision of a |
7 | | construction contract or
real estate sale or real estate sales |
8 | | agreement entered into with some
other person arising out of or |
9 | | because of such nontaxable business, is a
retailer to the |
10 | | extent of the value of the tangible personal property so
|
11 | | transferred. If, in such transaction, a separate charge is made |
12 | | for the
tangible personal property so transferred, the value of |
13 | | such property, for
the purposes of this Act, is the amount so |
14 | | separately charged, but not less
than the cost of such property |
15 | | to the transferor; if no separate charge is
made, the value of |
16 | | such property, for the purposes of this Act, is the cost
to the |
17 | | transferor of such tangible personal property.
|
18 | | "Retailer maintaining a place of business in this State", |
19 | | or any like
term, means and includes any of the following |
20 | | retailers:
|
21 | | 1. A retailer having or maintaining within this State, |
22 | | directly or by
a subsidiary, an office, distribution house, |
23 | | sales house, warehouse or other
place of business, or any |
24 | | agent or other representative operating within this
State |
25 | | under the authority of the retailer or its subsidiary, |
26 | | irrespective of
whether such place of business or agent or |
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1 | | other representative is located here
permanently or |
2 | | temporarily, or whether such retailer or subsidiary is |
3 | | licensed
to do business in this State. However, the |
4 | | ownership of property that is
located at the premises of a |
5 | | printer with which the retailer has contracted for
printing |
6 | | and that consists of the final printed product, property |
7 | | that becomes
a part of the final printed product, or copy |
8 | | from which the printed product is
produced shall not result |
9 | | in the retailer being deemed to have or maintain an
office, |
10 | | distribution house, sales house, warehouse, or other place |
11 | | of business
within this State. |
12 | | 1.1. A Beginning July 1, 2011, a retailer having a |
13 | | contract with a person located in this State under which |
14 | | the person, for a commission or other consideration based |
15 | | upon the sale of tangible personal property by the |
16 | | retailer, directly or indirectly refers potential |
17 | | customers to the retailer by providing to the potential |
18 | | customers a promotional code or other mechanism that allows |
19 | | the retailer to track purchases referred by such persons. |
20 | | Examples of mechanisms that allow the retailer to track |
21 | | purchases referred by such persons include but are not |
22 | | limited to the use of a link on the person's Internet |
23 | | website , promotional codes distributed through the |
24 | | person's hand-delivered or mailed material, and |
25 | | promotional codes distributed by the person through radio |
26 | | or other broadcast media . The provisions of this paragraph |
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1 | | 1.1 shall apply only if the cumulative gross receipts from |
2 | | sales of tangible personal property by the retailer to |
3 | | customers who are referred to the retailer by all persons |
4 | | in this State under such contracts exceed $10,000 during |
5 | | the preceding 4 quarterly periods ending on the last day of |
6 | | March, June, September, and December. A retailer meeting |
7 | | the requirements of this paragraph 1.1 shall be presumed to |
8 | | be maintaining a place of business in this State but may |
9 | | rebut this presumption by submitting proof that the |
10 | | referrals or other activities pursued within this State by |
11 | | such persons were not sufficient to meet the nexus |
12 | | standards of the United States Constitution during the |
13 | | preceding 4 quarterly periods. |
14 | | 1.2. Beginning July 1, 2011, a retailer having a |
15 | | contract with a person located in this State under which: |
16 | | A. the retailer sells the same or substantially |
17 | | similar line of products as the person located in this |
18 | | State and does so using an identical or substantially |
19 | | similar name, trade name, or trademark as the person |
20 | | located in this State; and |
21 | | B. the retailer provides a commission or other |
22 | | consideration to the person located in this State based |
23 | | upon the sale of tangible personal property by the |
24 | | retailer. |
25 | | The provisions of this paragraph 1.2 shall apply only if |
26 | | the cumulative gross receipts from sales of tangible |
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1 | | personal property by the retailer to customers in this |
2 | | State under all such contracts exceed $10,000 during the |
3 | | preceding 4 quarterly periods ending on the last day of |
4 | | March, June, September, and December.
|
5 | | 2. A retailer soliciting orders for tangible personal |
6 | | property by
means of a telecommunication or television |
7 | | shopping system (which utilizes toll
free numbers) which is |
8 | | intended by the retailer to be broadcast by cable
|
9 | | television or other means of broadcasting, to consumers |
10 | | located in this State.
|
11 | | 3. A retailer, pursuant to a contract with a |
12 | | broadcaster or publisher
located in this State, soliciting |
13 | | orders for tangible personal property by
means of |
14 | | advertising which is disseminated primarily to consumers |
15 | | located in
this State and only secondarily to bordering |
16 | | jurisdictions.
|
17 | | 4. A retailer soliciting orders for tangible personal |
18 | | property by mail
if the solicitations are substantial and |
19 | | recurring and if the retailer benefits
from any banking, |
20 | | financing, debt collection, telecommunication, or |
21 | | marketing
activities occurring in this State or benefits |
22 | | from the location in this State
of authorized installation, |
23 | | servicing, or repair facilities.
|
24 | | 5. A retailer that is owned or controlled by the same |
25 | | interests that own
or control any retailer engaging in |
26 | | business in the same or similar line of
business in this |
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1 | | State.
|
2 | | 6. A retailer having a franchisee or licensee operating |
3 | | under its trade
name if the franchisee or licensee is |
4 | | required to collect the tax under this
Section.
|
5 | | 7. A retailer, pursuant to a contract with a cable |
6 | | television operator
located in this State, soliciting |
7 | | orders for tangible personal property by
means of |
8 | | advertising which is transmitted or distributed over a |
9 | | cable
television system in this State.
|
10 | | 8. A retailer engaging in activities in Illinois, which |
11 | | activities in
the state in which the retail business |
12 | | engaging in such activities is located
would constitute |
13 | | maintaining a place of business in that state.
|
14 | | "Bulk vending machine" means a vending machine,
containing |
15 | | unsorted confections, nuts, toys, or other items designed
|
16 | | primarily to be used or played with by children
which, when a |
17 | | coin or coins of a denomination not larger than $0.50 are |
18 | | inserted, are dispensed in equal portions, at random and
|
19 | | without selection by the customer.
|
20 | | (Source: P.A. 98-628, eff. 1-1-15.)
|
21 | | Section 10. The Service Use Tax Act is amended by changing |
22 | | Section 2 as follows:
|
23 | | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
|
24 | | Sec. 2. Definitions. |
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1 | | "Use" means the exercise by any person of any right or |
2 | | power
over tangible personal property incident to the ownership |
3 | | of that
property, but does not include the sale or use for |
4 | | demonstration by him
of that property in any form as tangible |
5 | | personal property in the
regular course of business.
"Use" does |
6 | | not mean the interim
use of
tangible personal property nor the |
7 | | physical incorporation of tangible
personal property, as an |
8 | | ingredient or constituent, into other tangible
personal |
9 | | property, (a) which is sold in the regular course of business
|
10 | | or (b) which the person incorporating such ingredient or |
11 | | constituent
therein has undertaken at the time of such purchase |
12 | | to cause to be
transported in interstate commerce to |
13 | | destinations outside the State of
Illinois.
|
14 | | "Purchased from a serviceman" means the acquisition of the |
15 | | ownership
of, or title to, tangible personal property through a |
16 | | sale of service.
|
17 | | "Purchaser" means any person who, through a sale of |
18 | | service, acquires
the ownership of, or title to, any tangible |
19 | | personal property.
|
20 | | "Cost price" means the consideration paid by the serviceman |
21 | | for a
purchase valued in money, whether paid in money or |
22 | | otherwise, including
cash, credits and services, and shall be |
23 | | determined without any
deduction on account of the supplier's |
24 | | cost of the property sold or on
account of any other expense |
25 | | incurred by the supplier. When a serviceman
contracts out part |
26 | | or all of the services required in his sale of service,
it |
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1 | | shall be presumed that the cost price to the serviceman of the |
2 | | property
transferred to him or her by his or her subcontractor |
3 | | is equal to 50% of
the subcontractor's charges to the |
4 | | serviceman in the absence of proof of
the consideration paid by |
5 | | the subcontractor for the purchase of such property.
|
6 | | "Selling price" means the consideration for a sale valued |
7 | | in money
whether received in money or otherwise, including |
8 | | cash, credits and
service, and shall be determined without any |
9 | | deduction on account of the
serviceman's cost of the property |
10 | | sold, the cost of materials used,
labor or service cost or any |
11 | | other expense whatsoever, but does not
include interest or |
12 | | finance charges which appear as separate items on
the bill of |
13 | | sale or sales contract nor charges that are added to prices
by |
14 | | sellers on account of the seller's duty to collect, from the
|
15 | | purchaser, the tax that is imposed by this Act.
|
16 | | "Department" means the Department of Revenue.
|
17 | | "Person" means any natural individual, firm, partnership,
|
18 | | association, joint stock company, joint venture, public or |
19 | | private
corporation, limited liability company, and any |
20 | | receiver, executor, trustee,
guardian or other representative |
21 | | appointed by order of any court.
|
22 | | "Sale of service" means any transaction except:
|
23 | | (1) a retail sale of tangible personal property taxable |
24 | | under the
Retailers' Occupation Tax Act or under the Use |
25 | | Tax Act.
|
26 | | (2) a sale of tangible personal property for the |
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1 | | purpose of resale
made in compliance with Section 2c of the |
2 | | Retailers' Occupation Tax Act.
|
3 | | (3) except as hereinafter provided, a sale or transfer |
4 | | of tangible
personal property as an incident to the |
5 | | rendering of service for or by
any governmental body, or |
6 | | for or by any corporation, society,
association, |
7 | | foundation or institution organized and operated
|
8 | | exclusively for charitable, religious or educational |
9 | | purposes or any
not-for-profit corporation, society, |
10 | | association, foundation,
institution or organization which |
11 | | has no compensated officers or
employees and which is |
12 | | organized and operated primarily for the
recreation of |
13 | | persons 55 years of age or older. A limited liability |
14 | | company
may qualify for the exemption under this paragraph |
15 | | only if the limited
liability company is organized and |
16 | | operated exclusively for educational
purposes.
|
17 | | (4) a sale or transfer of tangible personal
property as |
18 | | an incident to the
rendering of service for interstate |
19 | | carriers for hire for use as rolling stock
moving in |
20 | | interstate commerce or by lessors under a lease of one year |
21 | | or
longer, executed or in effect at the time of purchase of |
22 | | personal property, to
interstate carriers for hire for use |
23 | | as rolling stock moving in interstate
commerce so long as |
24 | | so used by such interstate carriers for hire, and equipment
|
25 | | operated by a telecommunications provider, licensed as a |
26 | | common carrier by the
Federal Communications Commission, |
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1 | | which is permanently installed in or affixed
to aircraft |
2 | | moving in interstate commerce.
|
3 | | (4a) a sale or transfer of tangible personal
property |
4 | | as an incident
to the rendering of service for owners, |
5 | | lessors, or shippers of tangible
personal property which is |
6 | | utilized by interstate carriers for hire for
use as rolling |
7 | | stock moving in interstate commerce so long as so used by
|
8 | | interstate carriers for hire, and equipment operated by a
|
9 | | telecommunications provider, licensed as a common carrier |
10 | | by the Federal
Communications Commission, which is |
11 | | permanently installed in or affixed to
aircraft moving in |
12 | | interstate commerce.
|
13 | | (4a-5) on and after July 1, 2003 and through June 30, |
14 | | 2004, a sale or transfer of a motor vehicle
of
the
second |
15 | | division with a gross vehicle weight in excess of 8,000 |
16 | | pounds as an
incident to the rendering of service if that |
17 | | motor
vehicle is subject
to the commercial distribution fee |
18 | | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. |
19 | | Beginning on July 1, 2004 and through June 30, 2005, the |
20 | | use in this State of motor vehicles of the second division: |
21 | | (i) with a gross vehicle weight rating in excess of 8,000 |
22 | | pounds; (ii) that are subject to the commercial |
23 | | distribution fee imposed under Section 3-815.1 of the |
24 | | Illinois Vehicle Code; and (iii) that are primarily used |
25 | | for commercial purposes. Through June 30, 2005, this
|
26 | | exemption applies to repair and replacement parts added |
|
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1 | | after the
initial
purchase of such a motor vehicle if that |
2 | | motor vehicle is used in a manner that
would
qualify for |
3 | | the rolling stock exemption otherwise provided for in this |
4 | | Act. For purposes of this paragraph, "used for commercial |
5 | | purposes" means the transportation of persons or property |
6 | | in furtherance of any commercial or industrial enterprise |
7 | | whether for-hire or not.
|
8 | | (5) a sale or transfer of machinery and equipment used |
9 | | primarily in the
process of the manufacturing or |
10 | | assembling, either in an existing, an expanded
or a new |
11 | | manufacturing facility, of tangible personal property for |
12 | | wholesale or
retail sale or lease, whether such sale or |
13 | | lease is made directly by the
manufacturer or by some other |
14 | | person, whether the materials used in the process
are owned |
15 | | by the manufacturer or some other person, or whether such |
16 | | sale or
lease is made apart from or as an incident to the |
17 | | seller's engaging in a
service occupation and the |
18 | | applicable tax is a Service Use Tax or Service
Occupation |
19 | | Tax, rather than Use Tax or Retailers' Occupation Tax. The |
20 | | exemption provided by this paragraph (5) does not include |
21 | | machinery and equipment used in (i) the generation of |
22 | | electricity for wholesale or retail sale; (ii) the |
23 | | generation or treatment of natural or artificial gas for |
24 | | wholesale or retail sale that is delivered to customers |
25 | | through pipes, pipelines, or mains; or (iii) the treatment |
26 | | of water for wholesale or retail sale that is delivered to |
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1 | | customers through pipes, pipelines, or mains. The |
2 | | provisions of this amendatory Act of the 98th General |
3 | | Assembly are declaratory of existing law as to the meaning |
4 | | and scope of this exemption.
|
5 | | (5a) the repairing, reconditioning or remodeling, for |
6 | | a
common carrier by rail, of tangible personal property |
7 | | which belongs to such
carrier for hire, and as to which |
8 | | such carrier receives the physical possession
of the |
9 | | repaired, reconditioned or remodeled item of tangible |
10 | | personal property
in Illinois, and which such carrier |
11 | | transports, or shares with another common
carrier in the |
12 | | transportation of such property, out of Illinois on a |
13 | | standard
uniform bill of lading showing the person who |
14 | | repaired, reconditioned or
remodeled the property to a |
15 | | destination outside Illinois, for use outside
Illinois.
|
16 | | (5b) a sale or transfer of tangible personal property |
17 | | which is produced by
the seller thereof on special order in |
18 | | such a way as to have made the
applicable tax the Service |
19 | | Occupation Tax or the Service Use Tax, rather than
the |
20 | | Retailers' Occupation Tax or the Use Tax, for an interstate |
21 | | carrier by rail
which receives the physical possession of |
22 | | such property in Illinois, and which
transports such |
23 | | property, or shares with another common carrier in the
|
24 | | transportation of such property, out of Illinois on a |
25 | | standard uniform bill of
lading showing the seller of the |
26 | | property as the shipper or consignor of such
property to a |
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1 | | destination outside Illinois, for use outside Illinois.
|
2 | | (6) until July 1, 2003, a sale or transfer of |
3 | | distillation machinery
and equipment, sold
as a unit or kit |
4 | | and assembled or installed by the retailer, which
machinery |
5 | | and equipment is certified by the user to be used only for |
6 | | the
production of ethyl alcohol that will be used for |
7 | | consumption as motor fuel
or as a component of motor fuel |
8 | | for the personal use of such user and not
subject to sale |
9 | | or resale.
|
10 | | (7) at the election of any serviceman not required to |
11 | | be
otherwise registered as a retailer under Section 2a of |
12 | | the Retailers'
Occupation Tax Act, made for each fiscal |
13 | | year sales
of service in which the aggregate annual cost |
14 | | price of tangible
personal property transferred as an |
15 | | incident to the sales of service is
less than 35%, or 75% |
16 | | in the case of servicemen transferring prescription
drugs |
17 | | or servicemen engaged in graphic arts production, of the |
18 | | aggregate
annual total gross receipts from all sales of |
19 | | service. The purchase of
such tangible personal property by |
20 | | the serviceman shall be subject to tax
under the Retailers' |
21 | | Occupation Tax Act and the Use Tax Act.
However, if a
|
22 | | primary serviceman who has made the election described in |
23 | | this paragraph
subcontracts service work to a secondary |
24 | | serviceman who has also made the
election described in this |
25 | | paragraph, the primary serviceman does not
incur a Use Tax |
26 | | liability if the secondary serviceman (i) has paid or will |
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1 | | pay
Use
Tax on his or her cost price of any tangible |
2 | | personal property transferred
to the primary serviceman |
3 | | and (ii) certifies that fact in writing to the
primary
|
4 | | serviceman.
|
5 | | Tangible personal property transferred incident to the |
6 | | completion of a
maintenance agreement is exempt from the tax |
7 | | imposed pursuant to this Act.
|
8 | | Exemption (5) also includes machinery and equipment used in |
9 | | the general
maintenance or repair of such exempt machinery and |
10 | | equipment or for in-house
manufacture of exempt machinery and |
11 | | equipment. The machinery and equipment exemption does not |
12 | | include machinery and equipment used in (i) the generation of |
13 | | electricity for wholesale or retail sale; (ii) the generation |
14 | | or treatment of natural or artificial gas for wholesale or |
15 | | retail sale that is delivered to customers through pipes, |
16 | | pipelines, or mains; or (iii) the treatment of water for |
17 | | wholesale or retail sale that is delivered to customers through |
18 | | pipes, pipelines, or mains. The provisions of this amendatory |
19 | | Act of the 98th General Assembly are declaratory of existing |
20 | | law as to the meaning and scope of this exemption. For the |
21 | | purposes of exemption
(5), each of these terms shall have the |
22 | | following meanings: (1) "manufacturing
process" shall mean the |
23 | | production of any article of tangible personal
property, |
24 | | whether such article is a finished product or an article for |
25 | | use in
the process of manufacturing or assembling a different |
26 | | article of tangible
personal property, by procedures commonly |
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1 | | regarded as manufacturing,
processing, fabricating, or |
2 | | refining which changes some existing
material or materials into |
3 | | a material with a different form, use or
name. In relation to a |
4 | | recognized integrated business composed of a
series of |
5 | | operations which collectively constitute manufacturing, or
|
6 | | individually constitute manufacturing operations, the |
7 | | manufacturing
process shall be deemed to commence with the |
8 | | first operation or stage of
production in the series, and shall |
9 | | not be deemed to end until the
completion of the final product |
10 | | in the last operation or stage of
production in the series; and |
11 | | further, for purposes of exemption (5),
photoprocessing is |
12 | | deemed to be a manufacturing process of tangible
personal |
13 | | property for wholesale or retail sale; (2) "assembling process" |
14 | | shall
mean the production of any article of tangible personal |
15 | | property, whether such
article is a finished product or an |
16 | | article for use in the process of
manufacturing or assembling a |
17 | | different article of tangible personal
property, by the |
18 | | combination of existing materials in a manner commonly
regarded |
19 | | as assembling which results in a material of a different form,
|
20 | | use or name; (3) "machinery" shall mean major mechanical |
21 | | machines or
major components of such machines contributing to a |
22 | | manufacturing or
assembling process; and (4) "equipment" shall |
23 | | include any independent
device or tool separate from any |
24 | | machinery but essential to an
integrated manufacturing or |
25 | | assembly process; including computers
used primarily in a |
26 | | manufacturer's computer
assisted design, computer assisted |
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1 | | manufacturing (CAD/CAM) system;
or any subunit or assembly |
2 | | comprising a component of any machinery or
auxiliary, adjunct |
3 | | or attachment parts of machinery, such as tools, dies,
jigs, |
4 | | fixtures, patterns and molds; or any parts which require |
5 | | periodic
replacement in the course of normal operation; but |
6 | | shall not include hand
tools.
Equipment includes chemicals or |
7 | | chemicals acting as catalysts but only if the
chemicals or |
8 | | chemicals acting as catalysts effect a direct and immediate |
9 | | change
upon a
product being manufactured or assembled for |
10 | | 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
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1 | | information, where possible the Department shall delete such |
2 | | information
prior to publication. Whenever such informal |
3 | | rulings, opinions, or
letters contain any policy of general |
4 | | applicability, the Department
shall formulate and adopt such |
5 | | policy as a rule in accordance with the
provisions of the |
6 | | Illinois Administrative Procedure Act.
|
7 | | On and after July 1, 1987, no entity otherwise eligible |
8 | | under exemption
(3) of this Section shall make tax free |
9 | | purchases unless it has an active
exemption identification |
10 | | number issued by the Department.
|
11 | | The purchase, employment and transfer of such tangible |
12 | | personal
property as newsprint and ink for the primary purpose |
13 | | of conveying news
(with or without other information) is not a |
14 | | purchase, use or sale of
service or of tangible personal |
15 | | property within the meaning of this Act.
|
16 | | "Serviceman" means any person who is engaged in the |
17 | | occupation of
making sales of service.
|
18 | | "Sale at retail" means "sale at retail" as defined in the |
19 | | Retailers'
Occupation Tax Act.
|
20 | | "Supplier" means any person who makes sales of tangible |
21 | | personal
property to servicemen for the purpose of resale as an |
22 | | incident to a
sale of service.
|
23 | | "Serviceman maintaining a place of business in this State", |
24 | | or any
like term, means and includes any serviceman:
|
25 | | 1. having or maintaining within this State, directly or |
26 | | by a
subsidiary, an office, distribution house, sales |
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1 | | house, warehouse or
other place of business, or any agent |
2 | | or other representative operating
within this State under |
3 | | the authority of the serviceman or its
subsidiary, |
4 | | irrespective of whether such place of business or agent or
|
5 | | other representative is located here permanently or |
6 | | temporarily, or
whether such serviceman or subsidiary is |
7 | | licensed to do business in this
State; |
8 | | 1.1. beginning July 1, 2011, having a contract with a |
9 | | person located in this State under which the person, for a |
10 | | commission or other consideration based on the sale of |
11 | | service by the serviceman, directly or indirectly refers |
12 | | potential customers to the serviceman by providing to the |
13 | | potential customers a promotional code or other mechanism |
14 | | that allows the serviceman to track purchases referred by |
15 | | such persons. Examples of mechanisms that allow the |
16 | | serviceman to track purchase referred by such persons |
17 | | include but are not limited to the use of a link on the |
18 | | person's Internet website , promotional codes distributed |
19 | | through the person's hand-delivered or mailed material, |
20 | | and promotional codes distributed by the person through |
21 | | radio or other broadcast media . The provisions of this |
22 | | paragraph 1.1 shall apply only if the cumulative gross |
23 | | receipts from sales of service by the serviceman to |
24 | | customers who are referred to the serviceman by all persons |
25 | | in this State under such contracts exceed $10,000 during |
26 | | the preceding 4 quarterly periods ending on the last day of |
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1 | | March, June, September, and December; a serviceman meeting |
2 | | the requirements of this paragraph 1.1 shall be presumed to |
3 | | be maintaining a place of business in this State but may |
4 | | rebut this presumption by submitting proof that the |
5 | | referrals or other activities pursued within this State by |
6 | | such persons were not sufficient to meet the nexus |
7 | | standards of the United States Constitution during the |
8 | | preceding 4 quarterly periods; |
9 | | 1.2. beginning July 1, 2011, having a contract with a |
10 | | person located in this State under which: |
11 | | A. the serviceman sells the same or substantially |
12 | | similar line of services as the person located in this |
13 | | State and does so using an identical or substantially |
14 | | similar name, trade name, or trademark as the person |
15 | | located in this State; and |
16 | | B. the serviceman provides a commission or other |
17 | | consideration to the person located in this State based |
18 | | upon the sale of services by the serviceman. |
19 | | The provisions of this paragraph 1.2 shall apply only if |
20 | | the cumulative gross receipts from sales of service by the |
21 | | serviceman to customers in this State under all such |
22 | | contracts exceed $10,000 during the preceding 4 quarterly |
23 | | periods ending on the last day of March, June, September, |
24 | | and December;
|
25 | | 2. soliciting orders for tangible personal property by |
26 | | means of a
telecommunication or television shopping system |
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1 | | (which utilizes toll free
numbers) which is intended by the |
2 | | retailer to be broadcast by cable
television or other means |
3 | | of broadcasting, to consumers located in this State;
|
4 | | 3. pursuant to a contract with a broadcaster or |
5 | | publisher located in this
State, soliciting orders for |
6 | | tangible personal property by means of advertising
which is |
7 | | disseminated primarily to consumers located in this State |
8 | | and only
secondarily to bordering jurisdictions;
|
9 | | 4. soliciting orders for tangible personal property by |
10 | | mail if the
solicitations are substantial and recurring and |
11 | | if the retailer benefits
from any banking, financing, debt |
12 | | collection, telecommunication, or
marketing activities |
13 | | occurring in this State or benefits from the location
in |
14 | | this State of authorized installation, servicing, or |
15 | | repair facilities;
|
16 | | 5. being owned or controlled by the same interests |
17 | | which own or
control any retailer engaging in business in |
18 | | the same or similar line of
business in this State;
|
19 | | 6. having a franchisee or licensee operating under its |
20 | | trade name if
the franchisee or licensee is required to |
21 | | collect the tax under this Section;
|
22 | | 7. pursuant to a contract with a cable television |
23 | | operator located in
this State, soliciting orders for |
24 | | tangible personal property by means of
advertising which is |
25 | | transmitted or distributed over a cable television
system |
26 | | in this State; or
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1 | | 8. engaging in activities in Illinois, which |
2 | | activities in the
state in which the supply business |
3 | | engaging in such activities is located
would constitute |
4 | | maintaining a place of business in that state.
|
5 | | (Source: P.A. 98-583, eff. 1-1-14.)
|
6 | | Section 95. No acceleration or delay. Where this Act makes |
7 | | changes in a statute that is represented in this Act by text |
8 | | that is not yet or no longer in effect (for example, a Section |
9 | | represented by multiple versions), the use of that text does |
10 | | not accelerate or delay the taking effect of (i) the changes |
11 | | made by this Act or (ii) provisions derived from any other |
12 | | Public Act.".
|