Full Text of HB4533 103rd General Assembly
HB4533 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4533 Introduced 1/31/2024, by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: |
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Amends the Retailers' Occupation Tax Act. Provides that a remote retailer making retail sales of tangible personal property and using distribution houses or other facilities that receive and route tangible personal property to a final destination is engaged in the business of selling at the final Illinois location to which the tangible personal property is shipped or delivered.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Retailers' Occupation Tax Act is amended by | 5 | | changing Section 2-12 as follows: | 6 | | (35 ILCS 120/2-12) | 7 | | Sec. 2-12. Location where retailer is deemed to be engaged | 8 | | in the business of selling. The purpose of this Section is to | 9 | | specify where a retailer is deemed to be engaged in the | 10 | | business of selling tangible personal property for the | 11 | | purposes of this Act, the Use Tax Act, the Service Use Tax Act, | 12 | | and the Service Occupation Tax Act, and for the purpose of | 13 | | collecting any other local retailers' occupation tax | 14 | | administered by the Department. This Section applies only with | 15 | | respect to the particular selling activities described in the | 16 | | following paragraphs. The provisions of this Section are not | 17 | | intended to, and shall not be interpreted to, affect where a | 18 | | retailer is deemed to be engaged in the business of selling | 19 | | with respect to any activity that is not specifically | 20 | | described in the following 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 |
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| 1 | | tangible personal property at the retailer's place of | 2 | | business, then the transaction shall be deemed an | 3 | | over-the-counter sale occurring at the retailer's same | 4 | | place of business where the purchaser was present and made | 5 | | payment for that tangible personal property if the | 6 | | retailer regularly stocks the purchased tangible personal | 7 | | property or similar tangible personal property in the | 8 | | quantity, or similar quantity, for sale at the retailer's | 9 | | same place of business and then either (i) the purchaser | 10 | | takes possession of the tangible personal property at the | 11 | | same place of business or (ii) the retailer delivers or | 12 | | arranges for the tangible personal property to be | 13 | | delivered to the purchaser. | 14 | | (2) If a purchaser, having no prior commitment to the | 15 | | retailer, agrees to purchase tangible personal property | 16 | | and makes payment over the phone, in writing, or via the | 17 | | Internet and takes possession of the tangible personal | 18 | | property at the retailer's place of business, then the | 19 | | sale shall be deemed to have occurred at the retailer's | 20 | | place of business where the purchaser takes possession of | 21 | | the property if the retailer regularly stocks the item or | 22 | | similar items in the quantity, or similar quantities, | 23 | | purchased by the purchaser. | 24 | | (3) A retailer is deemed to be engaged in the business | 25 | | of selling food, beverages, or other tangible personal | 26 | | property through a vending machine at the location where |
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| 1 | | the vending machine is located at the time the sale is made | 2 | | if (i) the vending machine is a device operated by coin, | 3 | | currency, credit card, token, coupon or similar device; | 4 | | (2) the food, beverage or other tangible personal property | 5 | | is contained within the vending machine and dispensed from | 6 | | the vending machine; and (3) the purchaser takes | 7 | | possession of the purchased food, beverage or other | 8 | | tangible personal property immediately. | 9 | | (4) Minerals. A producer of coal or other mineral | 10 | | mined in Illinois is deemed to be engaged in the business | 11 | | of selling at the place where the coal or other mineral | 12 | | mined in Illinois is extracted from the earth. With | 13 | | respect to minerals (i) the term "extracted from the | 14 | | earth" means the location at which the coal or other | 15 | | mineral is extracted from the mouth of the mine, and (ii) a | 16 | | "mineral" includes not only coal, but also oil, sand, | 17 | | stone taken from a quarry, gravel and any other thing | 18 | | commonly regarded as a mineral and extracted from the | 19 | | earth. This paragraph does not apply to coal or another | 20 | | mineral when it is delivered or shipped by the seller to | 21 | | the purchaser at a point outside Illinois so that the sale | 22 | | is exempt under the United States Constitution as a sale | 23 | | in interstate or foreign commerce.
| 24 | | (5) A retailer selling tangible personal property to a | 25 | | nominal lessee or bailee pursuant to a lease with a dollar | 26 | | or other nominal option to purchase is engaged in the |
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| 1 | | business of selling at the location where the property is | 2 | | first delivered to the lessee or bailee for its intended | 3 | | use. | 4 | | (6) A Beginning on January 1, 2021, a remote retailer | 5 | | making retail sales of tangible personal property that | 6 | | meet or exceed the thresholds established in paragraph (1) | 7 | | or (2) of subsection (b) of Section 2 of this Act and using | 8 | | distribution houses or other facilities that receive and | 9 | | route tangible personal property to a final destination is | 10 | | engaged in the business of selling at the final Illinois | 11 | | location to which the tangible personal property is | 12 | | shipped or delivered or at which possession is taken by | 13 | | the purchaser. | 14 | | (7) Beginning January 1, 2021, a marketplace | 15 | | facilitator facilitating sales of tangible personal | 16 | | property that meet or exceed one of the thresholds | 17 | | established in paragraph (1) or (2) of subsection (c) of | 18 | | Section 2 of this Act is deemed to be engaged in the | 19 | | business of selling at the Illinois location to which the | 20 | | tangible personal property is shipped or delivered or at | 21 | | which possession is taken by the purchaser when the sale | 22 | | is made by a marketplace seller on the marketplace | 23 | | facilitator's marketplace. | 24 | | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
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