99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1548
 
Introduced 2/20/2015, by Sen. Toi W. Hutchinson
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 120/2-12

     Amends the Retailers' Occupation Tax Act.  In a Section concerning the location where a retailer is deemed to be engaged in the business of selling tangible personal property, provides that a retailer selling tangible personal property to a nominal lessee or bailee under a conditional sales agreement is presumed to be engaged in the business of selling at the location where the property is first delivered to the lessee or bailee for its intended use.  Effective immediately.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB1548LRB099 09758 HLH 29968 b


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

23        (5)  A retailer selling tangible personal property to a 
24    nominal lessee or bailee under a conditional sales 
25    agreement is presumed to be engaged in the business of 
26    selling at the location where the property is first 
 
 
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1    delivered to the lessee or bailee for its intended use. 
2(Source: P.A. 98-1098, eff. 8-26-14.)
 
 
3    Section 99. Effective date. This Act takes effect upon 
4becoming law.