100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5448

 

Introduced , by Rep. Robert W. Pritchard

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/8a new

    Amends the Use Tax Act. Provides that retailers that have more than $100,000 in gross sales to Illinois purchasers in the previous year and do not collect the tax under the Act must do the following: (1) provide a notice to each Illinois purchaser that the tax under the Act is due on purchases that are not tax exempt and that the State requires the Illinois purchaser to file a return under the Act; (2) provide a notice to each Illinois purchaser who purchases more than $500 worth of goods in a year containing specific information about purchases that may result in Illinois use tax liability; and (3) file an annual report with the Department of Revenue showing the total amount paid for purchases by those Illinois purchasers during the preceding calendar year. Requires retailers to include transactional notices at checkout. Sets forth penalties for failure to submit those notices and reports. Provides that the term "Illinois purchaser" means a purchaser (i) with a billing address in this State or (ii) who makes a purchase for delivery to an address in this State. Effective immediately.


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A BILL FOR

 

HB5448LRB100 18888 HLH 34132 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by adding Section 8a
5as follows:
 
6    (35 ILCS 105/8a new)
7    Sec. 8a. Retailer notifications.
8    (a) Each retailer that sells to Illinois purchasers but
9does not collect and remit use tax under this Act shall notify
10each Illinois purchaser at the time of sale that the tax under
11this Act is due on all purchases that are not exempt and that
12the State requires the Illinois purchaser to file a return
13under this Act. Failure to provide the notice required in this
14subsection shall subject the retailer to a penalty of $5 for
15each such failure unless the retailer shows reasonable cause
16for the failure.
17    (a-1) For all purchases made online, a transactional notice
18shall be prominently located in close proximity to the "Tax" or
19"Sales Tax" line at checkout, or if no "Tax" line is available,
20in close proximity to the "Total Price" line shown at checkout.
21If it is impracticable for the retailer subject to the
22provisions of this Section to display the transactional notice
23as described above, the retailer shall prominently display a

 

 

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1hyperlink. The hyperlink shall read "See here for information
2about the State tax you may owe" or use similar language. The
3hyperlink shall direct the Illinois purchaser to the
4transactional notice. The hyperlink shall appear in close
5proximity to the "Tax" or "Total Price" line shown at checkout,
6on the invoice or order confirmation, or on the webpage for the
7product purchased.
8    (b) Each retailer that has more than $100,000 in gross
9sales to Illinois purchasers in the previous year and does not
10collect the tax under this Act shall, by January 31 of each
11year, send notification to all Illinois purchasers who purchase
12more than $500 worth of goods in a year showing the following:
13        (1) the total amount paid by the purchaser for
14    purchases made from the retailer in the previous calendar
15    year;
16        (2) the dates of each purchase;
17        (3) the amounts of each purchase;
18        (4) whether or not the purchase is exempt from taxation
19    under this Act; and
20        (5) such information as the Department shall require by
21    rule.
22    The notification shall state that the State of Illinois
23requires a use tax return to be filed and use tax to be paid on
24certain purchases made by the purchaser from the retailer.
25    The notification specified in this subsection shall be sent
26separately to all Illinois purchasers by first-class mail and

 

 

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1shall not be included with any other shipments, unless the
2retailer subject to the provisions of this Section, as
3determined by a rule adopted by the Department, is allowed to
4deliver the notification by electronic means. The notification
5shall include the words "Important Tax Document Enclosed" on
6the exterior of the mailing, unless the retailer subject to the
7provisions of this Section, as determined by a rule adopted by
8the Department, is allowed to deliver the notification by
9electronic means. The notification shall include the name of
10the retailer.
11    Failure to send the notification required in this
12subsection shall subject the retailer to a penalty of $10 for
13each such failure unless the retailer shows reasonable cause
14for the failure.
15    (c) Each retailer mentioned in subsection (b) that does not
16collect the tax under this Act shall file with the Department,
17in the form and manner required by the Department, an annual
18statement for all Illinois purchasers who purchase more than
19$500 worth of goods in year showing the total amount paid for
20purchases by Illinois purchasers during the preceding calendar
21year or any portion thereof. That annual statement shall be
22filed on or before March 1 of each year. Failure to file the
23annual statement required under this subsection shall subject
24the retailer to a penalty of $10 for each purchaser that should
25have been included in the annual statement unless the retailer
26shows reasonable cause for the failure.

 

 

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1    (d) As used in this Section:
2    "Illinois purchaser" means a purchaser with a billing
3address in this State.
4    "Transactional notice" means the notice required to be
5provided by a retailer subject to the provisions of this
6Section to an Illinois purchaser at the time of purchase
7notifying the Illinois purchaser of the information required
8pursuant to this Section.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.