Full Text of HB3294 102nd General Assembly
HB3294 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB3294 Introduced 2/19/2021, by Rep. Keith R. Wheeler - Avery Bourne - Norine K. Hammond - Tony McCombie - Brad Halbrook, et al. SYNOPSIS AS INTRODUCED: |
| 35 ILCS 120/1 | from Ch. 120, par. 440 | 35 ILCS 120/2-5 | | 35 ILCS 120/3 | from Ch. 120, par. 442 | 35 ILCS 185/5-5 | | 35 ILCS 185/5-25 | |
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Amends the Retailers' Occupation Tax Act. Provides that, beginning January 1, 2020 and through December 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due but for which use tax has been collected and remitted to the Department of Revenue by a marketplace facilitator are exempt. Provides that the term "marketplace facilitator" does not include any person licensed under the Auction License Act, other than any person who is an Internet auction listing service. Amends the Leveling the Playing Field for Illinois Retail Act. Provides that certified service providers who collect and remit taxes on behalf of retailers may claim the retailers' discount with respect to those taxes. Provides that the retailer is not entitled to the discount with respect to those taxes. Effective immediately.
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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 Sections 1, 2-5, and 3 as follows:
| 6 | | (35 ILCS 120/1) (from Ch. 120, par. 440)
| 7 | | Sec. 1. Definitions. "Sale at retail" means any transfer | 8 | | of the
ownership of or title to
tangible personal property to a | 9 | | purchaser, for the purpose of use or
consumption, and not for | 10 | | the purpose of resale in any form as tangible
personal | 11 | | property to the extent not first subjected to a use for which | 12 | | it
was purchased, for a valuable consideration: Provided that | 13 | | the property
purchased is deemed to be purchased for the | 14 | | purpose of resale, despite
first being used, to the extent to | 15 | | which it is resold as an ingredient of
an intentionally | 16 | | produced product or byproduct of manufacturing. For this
| 17 | | purpose, slag produced as an incident to manufacturing pig | 18 | | iron or steel
and sold is considered to be an intentionally | 19 | | produced byproduct of
manufacturing. Transactions whereby the | 20 | | possession of the property is
transferred but the seller | 21 | | retains the title as security for payment of the
selling price | 22 | | shall be deemed to be sales.
| 23 | | "Sale at retail" shall be construed to include any |
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| 1 | | transfer of the
ownership of or title to tangible personal | 2 | | property to a purchaser, for use
or consumption by any other | 3 | | person to whom such purchaser may transfer the
tangible | 4 | | personal property without a valuable consideration, and to | 5 | | include
any transfer, whether made for or without a valuable | 6 | | consideration, for
resale in any form as tangible personal | 7 | | property unless made in compliance
with Section 2c of this | 8 | | Act.
| 9 | | Sales of tangible personal property, which property, to | 10 | | the extent not
first subjected to a use for which it was | 11 | | purchased, as an ingredient or
constituent, goes into and | 12 | | forms a part of tangible personal property
subsequently the | 13 | | subject of a "Sale at retail", are not sales at retail as
| 14 | | defined in this Act: Provided that the property purchased is | 15 | | 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 byproduct | 18 | | of manufacturing.
| 19 | | "Sale at retail" shall be construed to include any | 20 | | Illinois florist's
sales transaction in which the purchase | 21 | | order is received in Illinois by a
florist and the sale is for | 22 | | use or consumption, but the Illinois florist
has a florist in | 23 | | another state deliver the property to the purchaser or the
| 24 | | purchaser's donee in such other state.
| 25 | | Nonreusable tangible personal property that is used by | 26 | | persons engaged in
the business of operating a restaurant, |
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| 1 | | cafeteria, or drive-in is a sale for
resale when it is | 2 | | transferred to customers in the ordinary course of business
as | 3 | | part of the sale of food or beverages and is used to deliver, | 4 | | package, or
consume food or beverages, regardless of where | 5 | | consumption of the food or
beverages occurs. Examples of those | 6 | | items include, but are not limited to
nonreusable, paper and | 7 | | plastic cups, plates, baskets, boxes, sleeves, buckets
or | 8 | | other containers, utensils, straws, placemats, napkins, doggie | 9 | | bags, and
wrapping or packaging
materials that are transferred | 10 | | to customers as part of the sale of food or
beverages in the | 11 | | ordinary course of business.
| 12 | | The purchase, employment and transfer of such tangible | 13 | | personal property
as newsprint and ink for the primary purpose | 14 | | of conveying news (with or
without other information) is not a | 15 | | purchase, use or sale of tangible
personal property.
| 16 | | A person whose activities are organized and conducted | 17 | | primarily as a
not-for-profit service enterprise, and who | 18 | | engages in selling tangible
personal property at retail | 19 | | (whether to the public or merely to members and
their guests) | 20 | | is engaged in the business of selling tangible personal
| 21 | | property at retail with respect to such transactions, | 22 | | excepting only a
person organized and operated exclusively for | 23 | | charitable, religious or
educational purposes either (1), to | 24 | | the extent of sales by such person to
its members, students, | 25 | | patients or inmates of tangible personal property to
be used | 26 | | primarily for the purposes of such person, or (2), to the |
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| 1 | | extent of
sales by such person of tangible personal property | 2 | | which is not sold or
offered for sale by persons organized for | 3 | | profit. The selling of school
books and school supplies by | 4 | | schools at retail to students is not
"primarily for the | 5 | | purposes of" the school which does such selling. The
| 6 | | provisions of this paragraph shall not apply to nor subject to | 7 | | taxation
occasional dinners, socials or similar activities of | 8 | | a person organized and
operated exclusively for charitable, | 9 | | religious or educational purposes,
whether or not such | 10 | | activities are open to the public.
| 11 | | A person who is the recipient of a grant or contract under | 12 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 13 | | serves meals to
participants in the federal Nutrition Program | 14 | | for the Elderly in return for
contributions established in | 15 | | amount by the individual participant pursuant
to a schedule of | 16 | | suggested fees as provided for in the federal Act is not
| 17 | | engaged in the business of selling tangible personal property | 18 | | at retail
with respect to such transactions.
| 19 | | "Purchaser" means anyone who, through a sale at retail, | 20 | | acquires the
ownership of or title to tangible personal | 21 | | property for a valuable
consideration.
| 22 | | "Reseller of motor fuel" means any person engaged in the | 23 | | business of selling
or delivering or transferring title of | 24 | | motor fuel to another person
other than for use or | 25 | | consumption.
No person shall act as a reseller of motor fuel | 26 | | within this State without
first being registered as a reseller |
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| 1 | | pursuant to Section 2c or a retailer
pursuant to Section 2a.
| 2 | | "Selling price" or the "amount of sale" means the | 3 | | consideration for a
sale valued in money whether received in | 4 | | money or otherwise, including
cash, credits, property, other | 5 | | than as hereinafter provided, and services,
but, prior to | 6 | | January 1, 2020, not including the value of or credit given for | 7 | | traded-in tangible
personal property where the item that is | 8 | | traded-in is of like kind and
character as that which is being | 9 | | sold; beginning January 1, 2020, "selling price" includes the | 10 | | portion of the value of or credit given for traded-in motor | 11 | | vehicles of the First Division as defined in Section 1-146 of | 12 | | the Illinois Vehicle Code of like kind and character as that | 13 | | which is being sold that exceeds $10,000. "Selling price" | 14 | | shall be determined without any
deduction on account of the | 15 | | cost of the property sold, the cost of
materials used, labor or | 16 | | service cost or any other expense whatsoever, but
does not | 17 | | include charges that are added to prices by sellers on account | 18 | | of
the seller's tax liability under this Act, or on account of | 19 | | the seller's
duty to collect, from the purchaser, the tax that | 20 | | is imposed by the Use Tax
Act, or, except as otherwise provided | 21 | | with respect to any cigarette tax imposed by a home rule unit, | 22 | | on account of the seller's tax liability under any local | 23 | | occupation tax administered by the Department, or, except as | 24 | | otherwise provided with respect to any cigarette tax imposed | 25 | | by a home rule unit on account of the seller's duty to collect, | 26 | | from the purchasers, the tax that is imposed under any local |
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| 1 | | use tax administered by the Department.
Effective December 1, | 2 | | 1985, "selling price" shall include charges that
are added to | 3 | | prices by sellers on account of the seller's
tax liability | 4 | | under the Cigarette Tax Act, on account of the sellers'
duty to | 5 | | collect, from the purchaser, the tax imposed under the | 6 | | Cigarette
Use Tax Act, and on account of the seller's duty to | 7 | | collect, from the
purchaser, any cigarette tax imposed by a | 8 | | home rule unit.
| 9 | | Notwithstanding any law to the contrary, for any motor | 10 | | vehicle, as defined in Section 1-146 of the Vehicle Code, that | 11 | | is sold on or after January 1, 2015 for the purpose of leasing | 12 | | the vehicle for a defined period that is longer than one year | 13 | | and (1) is a motor vehicle of the second division that: (A) is | 14 | | a self-contained motor vehicle designed or permanently | 15 | | converted to provide living quarters for recreational, | 16 | | camping, or travel use, with direct walk through access to the | 17 | | living quarters from the driver's seat; (B) is of the van | 18 | | configuration designed for the transportation of not less than | 19 | | 7 nor more than 16 passengers; or (C) has a gross vehicle | 20 | | weight rating of 8,000 pounds or less or (2) is a motor vehicle | 21 | | of the first division, "selling price" or "amount of sale" | 22 | | means the consideration received by the lessor pursuant to the | 23 | | lease contract, including amounts due at lease signing and all | 24 | | monthly or other regular payments charged over the term of the | 25 | | lease. Also included in the selling price is any amount | 26 | | received by the lessor from the lessee for the leased vehicle |
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| 1 | | that is not calculated at the time the lease is executed, | 2 | | including, but not limited to, excess mileage charges and | 3 | | charges for excess wear and tear. For sales that occur in | 4 | | Illinois, with respect to any amount received by the lessor | 5 | | from the lessee for the leased vehicle that is not calculated | 6 | | at the time the lease is executed, the lessor who purchased the | 7 | | motor vehicle does not incur the tax imposed by the Use Tax Act | 8 | | on those amounts, and the retailer who makes the retail sale of | 9 | | the motor vehicle to the lessor is not required to collect the | 10 | | tax imposed by the Use Tax Act or to pay the tax imposed by | 11 | | this Act on those amounts. However, the lessor who purchased | 12 | | the motor vehicle assumes the liability for reporting and | 13 | | paying the tax on those amounts directly to the Department in | 14 | | the same form (Illinois Retailers' Occupation Tax, and local | 15 | | retailers' occupation taxes, if applicable) in which the | 16 | | retailer would have reported and paid such tax if the retailer | 17 | | had accounted for the tax to the Department. For amounts | 18 | | received by the lessor from the lessee that are not calculated | 19 | | at the time the lease is executed, the lessor must file the | 20 | | return and pay the tax to the Department by the due date | 21 | | otherwise required by this Act for returns other than | 22 | | transaction returns. If the retailer is entitled under this | 23 | | Act to a discount for collecting and remitting the tax imposed | 24 | | under this Act to the Department with respect to the sale of | 25 | | the motor vehicle to the lessor, then the right to the discount | 26 | | provided in this Act shall be transferred to the lessor with |
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| 1 | | respect to the tax paid by the lessor for any amount received | 2 | | by the lessor from the lessee for the leased vehicle that is | 3 | | not calculated at the time the lease is executed; provided | 4 | | that the discount is only allowed if the return is timely filed | 5 | | and for amounts timely paid. The "selling price" of a motor | 6 | | vehicle that is sold on or after January 1, 2015 for the | 7 | | purpose of leasing for a defined period of longer than one year | 8 | | shall not be reduced by the value of or credit given for | 9 | | traded-in tangible personal property owned by the lessor, nor | 10 | | shall it be reduced by the value of or credit given for | 11 | | traded-in tangible personal property owned by the lessee, | 12 | | regardless of whether the trade-in value thereof is assigned | 13 | | by the lessee to the lessor. In the case of a motor vehicle | 14 | | that is sold for the purpose of leasing for a defined period of | 15 | | longer than one year, the sale occurs at the time of the | 16 | | delivery of the vehicle, regardless of the due date of any | 17 | | lease payments. A lessor who incurs a Retailers' Occupation | 18 | | Tax liability on the sale of a motor vehicle coming off lease | 19 | | may not take a credit against that liability for the Use Tax | 20 | | the lessor paid upon the purchase of the motor vehicle (or for | 21 | | any tax the lessor paid with respect to any amount received by | 22 | | the lessor from the lessee for the leased vehicle that was not | 23 | | calculated at the time the lease was executed) if the selling | 24 | | price of the motor vehicle at the time of purchase was | 25 | | calculated using the definition of "selling price" as defined | 26 | | in this paragraph.
Notwithstanding any other provision of this |
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| 1 | | Act to the contrary, lessors shall file all returns and make | 2 | | all payments required under this paragraph to the Department | 3 | | by electronic means in the manner and form as required by the | 4 | | Department. This paragraph does not apply to leases of motor | 5 | | vehicles for which, at the time the lease is entered into, the | 6 | | term of the lease is not a defined period, including leases | 7 | | with a defined initial period with the option to continue the | 8 | | lease on a month-to-month or other basis beyond the initial | 9 | | defined period. | 10 | | The phrase "like kind and character" shall be liberally | 11 | | construed
(including but not limited to any form of motor | 12 | | vehicle for any form of
motor vehicle, or any kind of farm or | 13 | | agricultural implement for any other
kind of farm or | 14 | | agricultural implement), while not including a kind of item
| 15 | | which, if sold at retail by that retailer, would be exempt from | 16 | | retailers'
occupation tax and use tax as an isolated or | 17 | | occasional sale.
| 18 | | "Gross receipts" from the sales of tangible personal | 19 | | property at retail
means the total selling price or the amount | 20 | | of such sales, as hereinbefore
defined. In the case of charge | 21 | | and time sales, the amount thereof shall be
included only as | 22 | | and when payments are received by the seller.
Receipts or | 23 | | other consideration derived by a seller from
the sale, | 24 | | transfer or assignment of accounts receivable to a wholly | 25 | | owned
subsidiary will not be deemed payments prior to the time | 26 | | the purchaser
makes payment on such accounts.
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| 1 | | "Department" means the Department of Revenue.
| 2 | | "Person" means any natural individual, firm, partnership, | 3 | | association,
joint stock company, joint adventure, public or | 4 | | private corporation, limited
liability company, or a receiver, | 5 | | executor, trustee, guardian or other
representative appointed | 6 | | by order of any court.
| 7 | | The isolated or occasional sale of tangible personal | 8 | | property at retail
by a person who does not hold himself out as | 9 | | being engaged (or who does not
habitually engage) in selling | 10 | | such tangible personal property at retail, or
a sale through a | 11 | | bulk vending machine, does not constitute engaging in a
| 12 | | business of selling such tangible personal property at retail | 13 | | within the
meaning of this Act; provided that any person who is | 14 | | engaged in a business
which is not subject to the tax imposed | 15 | | by this Act because of involving
the sale of or a contract to | 16 | | sell real estate or a construction contract to
improve real | 17 | | estate or a construction contract to engineer, install, and
| 18 | | maintain an integrated system of products, but who, in the | 19 | | course of
conducting such business,
transfers tangible | 20 | | personal property to users or consumers in the finished
form | 21 | | in which it was purchased, and which does not become real | 22 | | estate or was
not engineered and installed, under any | 23 | | provision of a construction contract or
real estate sale or | 24 | | real estate sales agreement entered into with some other
| 25 | | person arising out of or because of such nontaxable business, | 26 | | is engaged in the
business of selling tangible personal |
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| 1 | | property at retail to the extent of the
value of the tangible | 2 | | personal property so transferred. If, in such a
transaction, a | 3 | | separate charge is made for the tangible personal property so
| 4 | | transferred, the value of such property, for the purpose of | 5 | | this Act, shall be
the amount so separately charged, but not | 6 | | less than the cost of such property
to the transferor; if no | 7 | | separate charge is made, the value of such property,
for the | 8 | | purposes of this Act, is the cost to the transferor of such | 9 | | tangible
personal property. Construction contracts for the | 10 | | improvement of real estate
consisting of engineering, | 11 | | installation, and maintenance of voice, data, video,
security, | 12 | | and all telecommunication systems do not constitute engaging | 13 | | in a
business of selling tangible personal property at retail | 14 | | within the meaning of
this Act if they are sold at one | 15 | | specified contract price.
| 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 person
engaged in the business of | 19 | | selling tangible personal property at retail
hereunder with | 20 | | respect to such sales (and not primarily in a service
| 21 | | occupation) notwithstanding the fact that such person designs | 22 | | and produces
such tangible personal property on special order | 23 | | for the purchaser and in
such a way as to render the property | 24 | | of value only to such purchaser, if
such tangible personal | 25 | | property so produced on special order serves
substantially the | 26 | | same function as stock or standard items of tangible
personal |
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| 1 | | property that are sold at retail.
| 2 | | Persons who engage in the business of transferring | 3 | | tangible personal
property upon the redemption of trading | 4 | | stamps are engaged in the business
of selling such property at | 5 | | retail and shall be liable for and shall pay
the tax imposed by | 6 | | this Act on the basis of the retail value of the
property | 7 | | transferred upon redemption of such stamps.
| 8 | | "Bulk vending machine" means a vending machine,
containing | 9 | | unsorted confections, nuts, toys, or other items designed
| 10 | | primarily to be used or played with by children
which, when a | 11 | | coin or coins of a denomination not larger than $0.50 are
| 12 | | inserted, are dispensed in equal portions, at random and
| 13 | | without selection by the customer.
| 14 | | "Remote retailer" means a retailer that does not maintain | 15 | | within this State, directly or by a subsidiary, an office, | 16 | | distribution house, sales house, warehouse or other place of | 17 | | business, or any agent or other representative operating | 18 | | within this State under the authority of the retailer or its | 19 | | subsidiary, irrespective of whether such place of business or | 20 | | agent is located here permanently or temporarily or whether | 21 | | such retailer or subsidiary is licensed to do business in this | 22 | | State. | 23 | | "Marketplace" means a physical or electronic place, forum, | 24 | | platform, application, or other method by which a marketplace | 25 | | seller sells or offers to sell items. | 26 | | "Marketplace facilitator" means a person who, pursuant to |
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| 1 | | an agreement with an unrelated third-party marketplace seller, | 2 | | directly or indirectly through one or more affiliates | 3 | | facilitates a retail sale by an unrelated third party | 4 | | marketplace seller by: | 5 | | (1) listing or advertising for sale by the marketplace | 6 | | seller in a marketplace, tangible personal property that | 7 | | is subject to tax under this Act; and | 8 | | (2) either directly or indirectly, through agreements | 9 | | or arrangements with third parties, collecting payment | 10 | | from the customer and transmitting that payment to the | 11 | | marketplace seller regardless of whether the marketplace | 12 | | facilitator receives compensation or other consideration | 13 | | in exchange for its services. | 14 | | A person who provides advertising services, including | 15 | | listing products for sale, is not considered a marketplace | 16 | | facilitator, so long as the advertising service platform or | 17 | | forum does not engage, directly or indirectly through one or | 18 | | more affiliated persons, in the activities described in | 19 | | paragraph (2) of this definition of "marketplace facilitator". | 20 | | "Marketplace facilitator" does not include any person | 21 | | licensed under the Auction License Act. This exemption does | 22 | | not apply to any person who is an Internet auction listing | 23 | | service, as defined by the Auction License Act. | 24 | | "Marketplace seller" means a person that makes sales | 25 | | through a marketplace operated by an unrelated third party | 26 | | marketplace facilitator. |
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| 1 | | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| 2 | | (35 ILCS 120/2-5)
| 3 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from | 4 | | the sale of
the following tangible personal property are | 5 | | exempt from the tax imposed
by this Act:
| 6 | | (1) Farm chemicals.
| 7 | | (2) Farm machinery and equipment, both new and used, | 8 | | including that
manufactured on special order, certified by | 9 | | the purchaser to be used
primarily for production | 10 | | agriculture or State or federal agricultural
programs, | 11 | | including individual replacement parts for the machinery | 12 | | and
equipment, including machinery and equipment purchased | 13 | | for lease,
and including implements of husbandry defined | 14 | | in Section 1-130 of
the Illinois Vehicle Code, farm | 15 | | machinery and agricultural chemical and
fertilizer | 16 | | spreaders, and nurse wagons required to be registered
| 17 | | under Section 3-809 of the Illinois Vehicle Code,
but
| 18 | | excluding other motor vehicles required to be registered | 19 | | under the Illinois
Vehicle Code.
Horticultural polyhouses | 20 | | or hoop houses used for propagating, growing, or
| 21 | | overwintering plants shall be considered farm machinery | 22 | | and equipment under
this item (2).
Agricultural chemical | 23 | | tender tanks and dry boxes shall include units sold
| 24 | | separately from a motor vehicle required to be licensed | 25 | | and units sold mounted
on a motor vehicle required to be |
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| 1 | | licensed, if the selling price of the tender
is separately | 2 | | stated.
| 3 | | Farm machinery and equipment shall include precision | 4 | | farming equipment
that is
installed or purchased to be | 5 | | installed on farm machinery and equipment
including, but | 6 | | not limited to, tractors, harvesters, sprayers, planters,
| 7 | | seeders, or spreaders.
Precision farming equipment | 8 | | includes, but is not limited to,
soil testing sensors, | 9 | | computers, monitors, software, global positioning
and | 10 | | mapping systems, and other such equipment.
| 11 | | Farm machinery and equipment also includes computers, | 12 | | sensors, software, and
related equipment used primarily in | 13 | | the
computer-assisted operation of production agriculture | 14 | | facilities, equipment,
and activities such as, but
not | 15 | | limited to,
the collection, monitoring, and correlation of
| 16 | | animal and crop data for the purpose of
formulating animal | 17 | | diets and agricultural chemicals. This item (2) is exempt
| 18 | | from the provisions of
Section 2-70.
| 19 | | (3) Until July 1, 2003, distillation machinery and | 20 | | equipment, sold as a
unit or kit,
assembled or installed | 21 | | by the retailer, certified by the user to be used
only for | 22 | | the production of ethyl alcohol that will be used for | 23 | | consumption
as motor fuel or as a component of motor fuel | 24 | | for the personal use of the
user, and not subject to sale | 25 | | or resale.
| 26 | | (4) Until July 1, 2003 and beginning again September |
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| 1 | | 1, 2004 through August 30, 2014, graphic arts machinery | 2 | | and equipment, including
repair and
replacement parts, | 3 | | both new and used, and including that manufactured on
| 4 | | special order or purchased for lease, certified by the | 5 | | purchaser to be used
primarily for graphic arts | 6 | | production.
Equipment includes chemicals or
chemicals | 7 | | acting as catalysts but only if
the chemicals or chemicals | 8 | | acting as catalysts effect a direct and immediate
change | 9 | | upon a
graphic arts product. Beginning on July 1, 2017, | 10 | | graphic arts machinery and equipment is included in the | 11 | | manufacturing and assembling machinery and equipment | 12 | | exemption under paragraph (14).
| 13 | | (5) A motor vehicle that is used for automobile | 14 | | renting, as defined in the Automobile Renting Occupation | 15 | | and Use Tax Act. This paragraph is exempt from
the | 16 | | provisions of Section 2-70.
| 17 | | (6) Personal property sold by a teacher-sponsored | 18 | | student organization
affiliated with an elementary or | 19 | | secondary school located in Illinois.
| 20 | | (7) Until July 1, 2003, proceeds of that portion of | 21 | | the selling price of
a passenger car the
sale of which is | 22 | | subject to the Replacement Vehicle Tax.
| 23 | | (8) Personal property sold to an Illinois county fair | 24 | | association for
use in conducting, operating, or promoting | 25 | | the county fair.
| 26 | | (9) Personal property sold to a not-for-profit arts
or |
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| 1 | | cultural organization that establishes, by proof required | 2 | | by the Department
by
rule, that it has received an | 3 | | exemption under Section 501(c)(3) of the
Internal Revenue | 4 | | Code and that is organized and operated primarily for the
| 5 | | presentation
or support of arts or cultural programming, | 6 | | activities, or services. These
organizations include, but | 7 | | are not limited to, music and dramatic arts
organizations | 8 | | such as symphony orchestras and theatrical groups, arts | 9 | | and
cultural service organizations, local arts councils, | 10 | | visual arts organizations,
and media arts organizations.
| 11 | | On and after July 1, 2001 (the effective date of Public Act | 12 | | 92-35), however, an entity otherwise eligible for this | 13 | | exemption shall not
make tax-free purchases unless it has | 14 | | an active identification number issued by
the Department.
| 15 | | (10) Personal property sold by a corporation, society, | 16 | | association,
foundation, institution, or organization, | 17 | | other than a limited liability
company, that is organized | 18 | | and operated as a not-for-profit service enterprise
for | 19 | | the benefit of persons 65 years of age or older if the | 20 | | personal property
was not purchased by the enterprise for | 21 | | the purpose of resale by the
enterprise.
| 22 | | (11) Personal property sold to a governmental body, to | 23 | | a corporation,
society, association, foundation, or | 24 | | institution organized and operated
exclusively for | 25 | | charitable, religious, or educational purposes, or to a
| 26 | | not-for-profit corporation, society, association, |
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| 1 | | foundation, institution,
or organization that has no | 2 | | compensated officers or employees and that is
organized | 3 | | and operated primarily for the recreation of persons 55 | 4 | | years of
age or older. A limited liability company may | 5 | | qualify for the exemption under
this paragraph only if the | 6 | | limited liability company is organized and operated
| 7 | | exclusively for educational purposes. On and after July 1, | 8 | | 1987, however, no
entity otherwise eligible for this | 9 | | exemption shall make tax-free purchases
unless it has an | 10 | | active identification number issued by the Department.
| 11 | | (12) (Blank).
| 12 | | (12-5) On and after July 1, 2003 and through June 30, | 13 | | 2004, motor vehicles of the second division
with a gross | 14 | | vehicle weight in excess of 8,000 pounds
that
are
subject | 15 | | to the commercial distribution fee imposed under Section | 16 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | 17 | | 2004 and through June 30, 2005, the use in this State of | 18 | | motor vehicles of the second division: (i) with a gross | 19 | | vehicle weight rating in excess of 8,000 pounds; (ii) that | 20 | | are subject to the commercial distribution fee imposed | 21 | | under Section 3-815.1 of the Illinois Vehicle Code; and | 22 | | (iii) that are primarily used for commercial purposes. | 23 | | Through June 30, 2005, this
exemption applies to repair | 24 | | and replacement parts added
after the
initial purchase of | 25 | | such a motor vehicle if that motor vehicle is used in a
| 26 | | manner that
would qualify for the rolling stock exemption |
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| 1 | | otherwise provided for in this
Act. For purposes of this | 2 | | paragraph, "used for commercial purposes" means the | 3 | | transportation of persons or property in furtherance of | 4 | | any commercial or industrial enterprise whether for-hire | 5 | | or not.
| 6 | | (13) Proceeds from sales to owners, lessors, or
| 7 | | shippers of
tangible personal property that is utilized by | 8 | | interstate carriers for
hire for use as rolling stock | 9 | | moving in interstate commerce
and equipment operated by a | 10 | | telecommunications provider, licensed as a
common carrier | 11 | | by the Federal Communications Commission, which is
| 12 | | permanently installed in or affixed to aircraft moving in | 13 | | interstate commerce.
| 14 | | (14) Machinery and equipment that will be used by the | 15 | | purchaser, or a
lessee of the purchaser, primarily in the | 16 | | process of manufacturing or
assembling tangible personal | 17 | | property for wholesale or retail sale or
lease, whether | 18 | | the sale or lease is made directly by the manufacturer or | 19 | | by
some other person, whether the materials used in the | 20 | | process are owned by
the manufacturer or some other | 21 | | person, or whether the sale or lease is made
apart from or | 22 | | as an incident to the seller's engaging in the service
| 23 | | occupation of producing machines, tools, dies, jigs, | 24 | | patterns, gauges, or
other similar items of no commercial | 25 | | value on special order for a particular
purchaser. The | 26 | | exemption provided by this paragraph (14) does not include |
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| 1 | | machinery and equipment used in (i) the generation of | 2 | | electricity for wholesale or retail sale; (ii) the | 3 | | generation or treatment of natural or artificial gas for | 4 | | wholesale or retail sale that is delivered to customers | 5 | | through pipes, pipelines, or mains; or (iii) the treatment | 6 | | of water for wholesale or retail sale that is delivered to | 7 | | customers through pipes, pipelines, or mains. The | 8 | | provisions of Public Act 98-583 are declaratory of | 9 | | existing law as to the meaning and scope of this | 10 | | exemption. Beginning on July 1, 2017, the exemption | 11 | | provided by this paragraph (14) includes, but is not | 12 | | limited to, graphic arts machinery and equipment, as | 13 | | defined in paragraph (4) of this Section.
| 14 | | (15) Proceeds of mandatory service charges separately | 15 | | stated on
customers' bills for purchase and consumption of | 16 | | food and beverages, to the
extent that the proceeds of the | 17 | | service charge are in fact turned over as
tips or as a | 18 | | substitute for tips to the employees who participate | 19 | | directly
in preparing, serving, hosting or cleaning up the | 20 | | food or beverage function
with respect to which the | 21 | | service charge is imposed.
| 22 | | (16) Tangible personal property sold to a purchaser if | 23 | | the purchaser is exempt from use tax by operation of | 24 | | federal law. This paragraph is exempt from the provisions | 25 | | of Section 2-70.
| 26 | | (17) Tangible personal property sold to a common |
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| 1 | | carrier by rail or
motor that
receives the physical | 2 | | possession of the property in Illinois and that
transports | 3 | | the property, or shares with another common carrier in the
| 4 | | transportation of the property, out of Illinois on a | 5 | | standard uniform bill
of lading showing the seller of the | 6 | | property as the shipper or consignor of
the property to a | 7 | | destination outside Illinois, for use outside Illinois.
| 8 | | (18) Legal tender, currency, medallions, or gold or | 9 | | silver coinage
issued by the State of Illinois, the | 10 | | government of the United States of
America, or the | 11 | | government of any foreign country, and bullion.
| 12 | | (19) Until July 1, 2003, oil field exploration, | 13 | | drilling, and production
equipment, including
(i) rigs and | 14 | | parts of rigs, rotary rigs, cable tool
rigs, and workover | 15 | | rigs, (ii) pipe and tubular goods, including casing and
| 16 | | drill strings, (iii) pumps and pump-jack units, (iv) | 17 | | storage tanks and flow
lines, (v) any individual | 18 | | replacement part for oil field exploration,
drilling, and | 19 | | production equipment, and (vi) machinery and equipment | 20 | | purchased
for lease; but
excluding motor vehicles required | 21 | | to be registered under the Illinois
Vehicle Code.
| 22 | | (20) Photoprocessing machinery and equipment, | 23 | | including repair and
replacement parts, both new and used, | 24 | | including that manufactured on
special order, certified by | 25 | | the purchaser to be used primarily for
photoprocessing, | 26 | | and including photoprocessing machinery and equipment
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| 1 | | purchased for lease.
| 2 | | (21) Until July 1, 2023, coal and aggregate | 3 | | exploration, mining, off-highway hauling,
processing,
| 4 | | maintenance, and reclamation equipment, including
| 5 | | replacement parts and equipment, and including
equipment | 6 | | purchased for lease, but excluding motor vehicles required | 7 | | to be
registered under the Illinois Vehicle Code. The | 8 | | changes made to this Section by Public Act 97-767 apply on | 9 | | and after July 1, 2003, but no claim for credit or refund | 10 | | is allowed on or after August 16, 2013 (the effective date | 11 | | of Public Act 98-456)
for such taxes paid during the | 12 | | period beginning July 1, 2003 and ending on August 16, | 13 | | 2013 (the effective date of Public Act 98-456).
| 14 | | (22) Until June 30, 2013, fuel and petroleum products | 15 | | sold to or used by an air carrier,
certified by the carrier | 16 | | to be used for consumption, shipment, or storage
in the | 17 | | conduct of its business as an air common carrier, for a | 18 | | flight
destined for or returning from a location or | 19 | | locations
outside the United States without regard to | 20 | | previous or subsequent domestic
stopovers.
| 21 | | Beginning July 1, 2013, fuel and petroleum products | 22 | | sold to or used by an air carrier, certified by the carrier | 23 | | to be used for consumption, shipment, or storage in the | 24 | | conduct of its business as an air common carrier, for a | 25 | | flight that (i) is engaged in foreign trade or is engaged | 26 | | in trade between the United States and any of its |
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| 1 | | possessions and (ii) transports at least one individual or | 2 | | package for hire from the city of origination to the city | 3 | | of final destination on the same aircraft, without regard | 4 | | to a change in the flight number of that aircraft. | 5 | | (23) A transaction in which the purchase order is | 6 | | received by a florist
who is located outside Illinois, but | 7 | | who has a florist located in Illinois
deliver the property | 8 | | to the purchaser or the purchaser's donee in Illinois.
| 9 | | (24) Fuel consumed or used in the operation of ships, | 10 | | barges, or vessels
that are used primarily in or for the | 11 | | transportation of property or the
conveyance of persons | 12 | | for hire on rivers bordering on this State if the
fuel is | 13 | | delivered by the seller to the purchaser's barge, ship, or | 14 | | vessel
while it is afloat upon that bordering river.
| 15 | | (25) Except as provided in item (25-5) of this | 16 | | Section, a
motor vehicle sold in this State to a | 17 | | nonresident even though the
motor vehicle is delivered to | 18 | | the nonresident in this State, if the motor
vehicle is not | 19 | | to be titled in this State, and if a drive-away permit
is | 20 | | issued to the motor vehicle as provided in Section 3-603 | 21 | | of the Illinois
Vehicle Code or if the nonresident | 22 | | purchaser has vehicle registration
plates to transfer to | 23 | | the motor vehicle upon returning to his or her home
state. | 24 | | The issuance of the drive-away permit or having
the
| 25 | | out-of-state registration plates to be transferred is | 26 | | prima facie evidence
that the motor vehicle will not be |
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| 1 | | titled in this State.
| 2 | | (25-5) The exemption under item (25) does not apply if | 3 | | the state in which the motor vehicle will be titled does | 4 | | not allow a reciprocal exemption for a motor vehicle sold | 5 | | and delivered in that state to an Illinois resident but | 6 | | titled in Illinois. The tax collected under this Act on | 7 | | the sale of a motor vehicle in this State to a resident of | 8 | | another state that does not allow a reciprocal exemption | 9 | | shall be imposed at a rate equal to the state's rate of tax | 10 | | on taxable property in the state in which the purchaser is | 11 | | a resident, except that the tax shall not exceed the tax | 12 | | that would otherwise be imposed under this Act. At the | 13 | | time of the sale, the purchaser shall execute a statement, | 14 | | signed under penalty of perjury, of his or her intent to | 15 | | title the vehicle in the state in which the purchaser is a | 16 | | resident within 30 days after the sale and of the fact of | 17 | | the payment to the State of Illinois of tax in an amount | 18 | | equivalent to the state's rate of tax on taxable property | 19 | | in his or her state of residence and shall submit the | 20 | | statement to the appropriate tax collection agency in his | 21 | | or her state of residence. In addition, the retailer must | 22 | | retain a signed copy of the statement in his or her | 23 | | records. Nothing in this item shall be construed to | 24 | | require the removal of the vehicle from this state | 25 | | following the filing of an intent to title the vehicle in | 26 | | the purchaser's state of residence if the purchaser titles |
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| 1 | | the vehicle in his or her state of residence within 30 days | 2 | | after the date of sale. The tax collected under this Act in | 3 | | accordance with this item (25-5) shall be proportionately | 4 | | distributed as if the tax were collected at the 6.25% | 5 | | general rate imposed under this Act.
| 6 | | (25-7) Beginning on July 1, 2007, no tax is imposed | 7 | | under this Act on the sale of an aircraft, as defined in | 8 | | Section 3 of the Illinois Aeronautics Act, if all of the | 9 | | following conditions are met: | 10 | | (1) the aircraft leaves this State within 15 days | 11 | | after the later of either the issuance of the final | 12 | | billing for the sale of the aircraft, or the | 13 | | authorized approval for return to service, completion | 14 | | of the maintenance record entry, and completion of the | 15 | | test flight and ground test for inspection, as | 16 | | required by 14 C.F.R. 91.407; | 17 | | (2) the aircraft is not based or registered in | 18 | | this State after the sale of the aircraft; and | 19 | | (3) the seller retains in his or her books and | 20 | | records and provides to the Department a signed and | 21 | | dated certification from the purchaser, on a form | 22 | | prescribed by the Department, certifying that the | 23 | | requirements of this item (25-7) are met. The | 24 | | certificate must also include the name and address of | 25 | | the purchaser, the address of the location where the | 26 | | aircraft is to be titled or registered, the address of |
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| 1 | | the primary physical location of the aircraft, and | 2 | | other information that the Department may reasonably | 3 | | require. | 4 | | For purposes of this item (25-7): | 5 | | "Based in this State" means hangared, stored, or | 6 | | otherwise used, excluding post-sale customizations as | 7 | | defined in this Section, for 10 or more days in each | 8 | | 12-month period immediately following the date of the sale | 9 | | of the aircraft. | 10 | | "Registered in this State" means an aircraft | 11 | | registered with the Department of Transportation, | 12 | | Aeronautics Division, or titled or registered with the | 13 | | Federal Aviation Administration to an address located in | 14 | | this State. | 15 | | This paragraph (25-7) is exempt from the provisions
of
| 16 | | Section 2-70.
| 17 | | (26) Semen used for artificial insemination of | 18 | | livestock for direct
agricultural production.
| 19 | | (27) Horses, or interests in horses, registered with | 20 | | and meeting the
requirements of any of the
Arabian Horse | 21 | | Club Registry of America, Appaloosa Horse Club, American | 22 | | Quarter
Horse Association, United States
Trotting | 23 | | Association, or Jockey Club, as appropriate, used for
| 24 | | purposes of breeding or racing for prizes. This item (27) | 25 | | is exempt from the provisions of Section 2-70, and the | 26 | | exemption provided for under this item (27) applies for |
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| 1 | | all periods beginning May 30, 1995, but no claim for | 2 | | credit or refund is allowed on or after January 1, 2008 | 3 | | (the effective date of Public Act 95-88)
for such taxes | 4 | | paid during the period beginning May 30, 2000 and ending | 5 | | on January 1, 2008 (the effective date of Public Act | 6 | | 95-88).
| 7 | | (28) Computers and communications equipment utilized | 8 | | for any
hospital
purpose
and equipment used in the | 9 | | diagnosis,
analysis, or treatment of hospital patients | 10 | | sold to a lessor who leases the
equipment, under a lease of | 11 | | one year or longer executed or in effect at the
time of the | 12 | | purchase, to a
hospital
that has been issued an active tax | 13 | | exemption identification number by the
Department under | 14 | | Section 1g of this Act.
| 15 | | (29) Personal property sold to a lessor who leases the
| 16 | | property, under a
lease of one year or longer executed or | 17 | | in effect at the time of the purchase,
to a governmental | 18 | | body
that has been issued an active tax exemption | 19 | | identification number by the
Department under Section 1g | 20 | | of this Act.
| 21 | | (30) Beginning with taxable years ending on or after | 22 | | December
31, 1995
and
ending with taxable years ending on | 23 | | or before December 31, 2004,
personal property that is
| 24 | | donated for disaster relief to be used in a State or | 25 | | federally declared
disaster area in Illinois or bordering | 26 | | Illinois by a manufacturer or retailer
that is registered |
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| 1 | | in this State to a corporation, society, association,
| 2 | | foundation, or institution that has been issued a sales | 3 | | tax exemption
identification number by the Department that | 4 | | assists victims of the disaster
who reside within the | 5 | | declared disaster area.
| 6 | | (31) Beginning with taxable years ending on or after | 7 | | December
31, 1995 and
ending with taxable years ending on | 8 | | or before December 31, 2004, personal
property that is | 9 | | used in the performance of infrastructure repairs in this
| 10 | | State, including but not limited to municipal roads and | 11 | | streets, access roads,
bridges, sidewalks, waste disposal | 12 | | systems, water and sewer line extensions,
water | 13 | | distribution and purification facilities, storm water | 14 | | drainage and
retention facilities, and sewage treatment | 15 | | facilities, resulting from a State
or federally declared | 16 | | disaster in Illinois or bordering Illinois when such
| 17 | | repairs are initiated on facilities located in the | 18 | | declared disaster area
within 6 months after the disaster.
| 19 | | (32) Beginning July 1, 1999, game or game birds sold | 20 | | at a "game breeding
and
hunting preserve area" as that | 21 | | term is used
in the
Wildlife Code. This paragraph is | 22 | | exempt from the provisions
of
Section 2-70.
| 23 | | (33) A motor vehicle, as that term is defined in | 24 | | Section 1-146
of the
Illinois Vehicle Code, that is | 25 | | donated to a corporation, limited liability
company, | 26 | | society, association, foundation, or institution that is |
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| 1 | | determined by
the Department to be organized and operated | 2 | | exclusively for educational
purposes. For purposes of this | 3 | | exemption, "a corporation, limited liability
company, | 4 | | society, association, foundation, or institution organized | 5 | | and
operated
exclusively for educational purposes" means | 6 | | all tax-supported public schools,
private schools that | 7 | | offer systematic instruction in useful branches of
| 8 | | learning by methods common to public schools and that | 9 | | compare favorably in
their scope and intensity with the | 10 | | course of study presented in tax-supported
schools, and | 11 | | vocational or technical schools or institutes organized | 12 | | and
operated exclusively to provide a course of study of | 13 | | not less than 6 weeks
duration and designed to prepare | 14 | | individuals to follow a trade or to pursue a
manual, | 15 | | technical, mechanical, industrial, business, or commercial
| 16 | | occupation.
| 17 | | (34) Beginning January 1, 2000, personal property, | 18 | | including food, purchased
through fundraising events for | 19 | | the benefit of a public or private elementary or
secondary | 20 | | school, a group of those schools, or one or more school | 21 | | districts if
the events are sponsored by an entity | 22 | | recognized by the school district that
consists primarily | 23 | | of volunteers and includes parents and teachers of the
| 24 | | school children. This paragraph does not apply to | 25 | | fundraising events (i) for
the benefit of private home | 26 | | instruction or (ii) for which the fundraising
entity |
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| 1 | | purchases the personal property sold at the events from | 2 | | another
individual or entity that sold the property for | 3 | | the purpose of resale by the
fundraising entity and that | 4 | | profits from the sale to the fundraising entity.
This | 5 | | paragraph is exempt from the provisions of Section 2-70.
| 6 | | (35) Beginning January 1, 2000 and through December | 7 | | 31, 2001, new or used
automatic vending machines that | 8 | | prepare and serve hot food and beverages,
including | 9 | | coffee, soup, and other items, and replacement parts for | 10 | | these
machines. Beginning January 1, 2002 and through June | 11 | | 30, 2003, machines
and parts for machines used in
| 12 | | commercial, coin-operated amusement and vending business | 13 | | if a use or occupation
tax is paid on the gross receipts | 14 | | derived from the use of the commercial,
coin-operated | 15 | | amusement and vending machines. This paragraph is exempt | 16 | | from
the provisions of Section 2-70.
| 17 | | (35-5) Beginning August 23, 2001 and through June 30, | 18 | | 2016, food for human consumption that is to be consumed | 19 | | off
the premises where it is sold (other than alcoholic | 20 | | beverages, soft drinks,
and food that has been prepared | 21 | | for immediate consumption) and prescription
and | 22 | | nonprescription medicines, drugs, medical appliances, and | 23 | | insulin, urine
testing materials, syringes, and needles | 24 | | used by diabetics, for human use, when
purchased for use | 25 | | by a person receiving medical assistance under Article V | 26 | | of
the Illinois Public Aid Code who resides in a licensed |
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| 1 | | long-term care facility,
as defined in the Nursing Home | 2 | | Care Act, or a licensed facility as defined in the ID/DD | 3 | | Community Care Act, the MC/DD Act, or the Specialized | 4 | | Mental Health Rehabilitation Act of 2013.
| 5 | | (36) Beginning August 2, 2001, computers and | 6 | | communications equipment
utilized for any hospital purpose | 7 | | and equipment used in the diagnosis,
analysis, or | 8 | | treatment of hospital patients sold to a lessor who leases | 9 | | the
equipment, under a lease of one year or longer | 10 | | executed or in effect at the
time of the purchase, to a | 11 | | hospital that has been issued an active tax
exemption | 12 | | identification number by the Department under Section 1g | 13 | | of this Act.
This paragraph is exempt from the provisions | 14 | | of Section 2-70.
| 15 | | (37) Beginning August 2, 2001, personal property sold | 16 | | to a lessor who
leases the property, under a lease of one | 17 | | year or longer executed or in effect
at the time of the | 18 | | purchase, to a governmental body that has been issued an
| 19 | | active tax exemption identification number by the | 20 | | Department under Section 1g
of this Act. This paragraph is | 21 | | exempt from the provisions of Section 2-70.
| 22 | | (38) Beginning on January 1, 2002 and through June 30, | 23 | | 2016, tangible personal property purchased
from an | 24 | | Illinois retailer by a taxpayer engaged in centralized | 25 | | purchasing
activities in Illinois who will, upon receipt | 26 | | of the property in Illinois,
temporarily store the |
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| 1 | | property in Illinois (i) for the purpose of subsequently
| 2 | | transporting it outside this State for use or consumption | 3 | | thereafter solely
outside this State or (ii) for the | 4 | | purpose of being processed, fabricated, or
manufactured | 5 | | into, attached to, or incorporated into other tangible | 6 | | personal
property to be transported outside this State and | 7 | | thereafter used or consumed
solely outside this State. The | 8 | | Director of Revenue shall, pursuant to rules
adopted in | 9 | | accordance with the Illinois Administrative Procedure Act, | 10 | | issue a
permit to any taxpayer in good standing with the | 11 | | Department who is eligible for
the exemption under this | 12 | | paragraph (38). The permit issued under
this paragraph | 13 | | (38) shall authorize the holder, to the extent and
in the | 14 | | manner specified in the rules adopted under this Act, to | 15 | | purchase
tangible personal property from a retailer exempt | 16 | | from the taxes imposed by
this Act. Taxpayers shall | 17 | | maintain all necessary books and records to
substantiate | 18 | | the use and consumption of all such tangible personal | 19 | | property
outside of the State of Illinois.
| 20 | | (39) Beginning January 1, 2008, tangible personal | 21 | | property used in the construction or maintenance of a | 22 | | community water supply, as defined under Section 3.145 of | 23 | | the Environmental Protection Act, that is operated by a | 24 | | not-for-profit corporation that holds a valid water supply | 25 | | permit issued under Title IV of the Environmental | 26 | | Protection Act. This paragraph is exempt from the |
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| 1 | | provisions of Section 2-70.
| 2 | | (40) Beginning January 1, 2010 and continuing through | 3 | | December 31, 2024, materials, parts, equipment, | 4 | | components, and furnishings incorporated into or upon an | 5 | | aircraft as part of the modification, refurbishment, | 6 | | completion, replacement, repair, or maintenance of the | 7 | | aircraft. This exemption includes consumable supplies used | 8 | | in the modification, refurbishment, completion, | 9 | | replacement, repair, and maintenance of aircraft, but | 10 | | excludes any materials, parts, equipment, components, and | 11 | | consumable supplies used in the modification, replacement, | 12 | | repair, and maintenance of aircraft engines or power | 13 | | plants, whether such engines or power plants are installed | 14 | | or uninstalled upon any such aircraft. "Consumable | 15 | | supplies" include, but are not limited to, adhesive, tape, | 16 | | sandpaper, general purpose lubricants, cleaning solution, | 17 | | latex gloves, and protective films. This exemption applies | 18 | | only to the sale of qualifying tangible personal property | 19 | | to persons who modify, refurbish, complete, replace, or | 20 | | maintain an aircraft and who (i) hold an Air Agency | 21 | | Certificate and are empowered to operate an approved | 22 | | repair station by the Federal Aviation Administration, | 23 | | (ii) have a Class IV Rating, and (iii) conduct operations | 24 | | in accordance with Part 145 of the Federal Aviation | 25 | | Regulations. The exemption does not include aircraft | 26 | | operated by a commercial air carrier providing scheduled |
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| 1 | | passenger air service pursuant to authority issued under | 2 | | Part 121 or Part 129 of the Federal Aviation Regulations. | 3 | | The changes made to this paragraph (40) by Public Act | 4 | | 98-534 are declarative of existing law. It is the intent | 5 | | of the General Assembly that the exemption under this | 6 | | paragraph (40) applies continuously from January 1, 2010 | 7 | | through December 31, 2024; however, no claim for credit or | 8 | | refund is allowed for taxes paid as a result of the | 9 | | disallowance of this exemption on or after January 1, 2015 | 10 | | and prior to the effective date of this amendatory Act of | 11 | | the 101st General Assembly. | 12 | | (41) Tangible personal property sold to a | 13 | | public-facilities corporation, as described in Section | 14 | | 11-65-10 of the Illinois Municipal Code, for purposes of | 15 | | constructing or furnishing a municipal convention hall, | 16 | | but only if the legal title to the municipal convention | 17 | | hall is transferred to the municipality without any | 18 | | further consideration by or on behalf of the municipality | 19 | | at the time of the completion of the municipal convention | 20 | | hall or upon the retirement or redemption of any bonds or | 21 | | other debt instruments issued by the public-facilities | 22 | | corporation in connection with the development of the | 23 | | municipal convention hall. This exemption includes | 24 | | existing public-facilities corporations as provided in | 25 | | Section 11-65-25 of the Illinois Municipal Code. This | 26 | | paragraph is exempt from the provisions of Section 2-70. |
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| 1 | | (42) Beginning January 1, 2017, menstrual pads, | 2 | | tampons, and menstrual cups. | 3 | | (43) Merchandise that is subject to the Rental | 4 | | Purchase Agreement Occupation and Use Tax. The purchaser | 5 | | must certify that the item is purchased to be rented | 6 | | subject to a rental purchase agreement, as defined in the | 7 | | Rental Purchase Agreement Act, and provide proof of | 8 | | registration under the Rental Purchase Agreement | 9 | | Occupation and Use Tax Act. This paragraph is exempt from | 10 | | the provisions of Section 2-70. | 11 | | (44) Qualified tangible personal property used in the | 12 | | construction or operation of a data center that has been | 13 | | granted a certificate of exemption by the Department of | 14 | | Commerce and Economic Opportunity, whether that tangible | 15 | | personal property is purchased by the owner, operator, or | 16 | | tenant of the data center or by a contractor or | 17 | | subcontractor of the owner, operator, or tenant. Data | 18 | | centers that would have qualified for a certificate of | 19 | | exemption prior to January 1, 2020 had this amendatory Act | 20 | | of the 101st General Assembly been in effect, may apply | 21 | | for and obtain an exemption for subsequent purchases of | 22 | | computer equipment or enabling software purchased or | 23 | | leased to upgrade, supplement, or replace computer | 24 | | equipment or enabling software purchased or leased in the | 25 | | original investment that would have qualified. | 26 | | The Department of Commerce and Economic Opportunity |
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| 1 | | shall grant a certificate of exemption under this item | 2 | | (44) to qualified data centers as defined by Section | 3 | | 605-1025 of the Department of Commerce and Economic | 4 | | Opportunity Law of the
Civil Administrative Code of | 5 | | Illinois. | 6 | | For the purposes of this item (44): | 7 | | "Data center" means a building or a series of | 8 | | buildings rehabilitated or constructed to house | 9 | | working servers in one physical location or multiple | 10 | | sites within the State of Illinois. | 11 | | "Qualified tangible personal property" means: | 12 | | electrical systems and equipment; climate control and | 13 | | chilling equipment and systems; mechanical systems and | 14 | | equipment; monitoring and secure systems; emergency | 15 | | generators; hardware; computers; servers; data storage | 16 | | devices; network connectivity equipment; racks; | 17 | | cabinets; telecommunications cabling infrastructure; | 18 | | raised floor systems; peripheral components or | 19 | | systems; software; mechanical, electrical, or plumbing | 20 | | systems; battery systems; cooling systems and towers; | 21 | | temperature control systems; other cabling; and other | 22 | | data center infrastructure equipment and systems | 23 | | necessary to operate qualified tangible personal | 24 | | property, including fixtures; and component parts of | 25 | | any of the foregoing, including installation, | 26 | | maintenance, repair, refurbishment, and replacement of |
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| 1 | | qualified tangible personal property to generate, | 2 | | transform, transmit, distribute, or manage electricity | 3 | | necessary to operate qualified tangible personal | 4 | | property; and all other tangible personal property | 5 | | that is essential to the operations of a computer data | 6 | | center. The term "qualified tangible personal | 7 | | property" also includes building materials physically | 8 | | incorporated in to the qualifying data center. To | 9 | | document the exemption allowed under this Section, the | 10 | | retailer must obtain from the purchaser a copy of the | 11 | | certificate of eligibility issued by the Department of | 12 | | Commerce and Economic Opportunity. | 13 | | This item (44) is exempt from the provisions of | 14 | | Section 2-70. | 15 | | (45) Beginning January 1, 2020 and through December | 16 | | 31, 2020, sales of tangible personal property made by a | 17 | | marketplace seller over a marketplace for which tax is due | 18 | | under this Act but for which use tax has been collected and | 19 | | remitted to the Department by a marketplace facilitator | 20 | | under Section 2d of the Use Tax Act are exempt from tax | 21 | | under this Act. A marketplace seller claiming this | 22 | | exemption shall maintain books and records demonstrating | 23 | | that the use tax on such sales has been collected and | 24 | | remitted by a marketplace facilitator. Marketplace sellers | 25 | | that have properly remitted tax under this Act on such | 26 | | sales may file a claim for credit as provided in Section 6 |
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| 1 | | of this Act. No claim is allowed, however, for such taxes | 2 | | for which a credit or refund has been issued to the | 3 | | marketplace facilitator under the Use Tax Act, or for | 4 | | which the marketplace facilitator has filed a claim for | 5 | | credit or refund under the Use Tax Act. | 6 | | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | 7 | | 100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. | 8 | | 8-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, | 9 | | eff. 7-12-19; 101-629, eff. 2-5-20.)
| 10 | | (35 ILCS 120/3) (from Ch. 120, par. 442)
| 11 | | Sec. 3. Except as provided in this Section, on or before | 12 | | the twentieth
day of each calendar month, every person engaged | 13 | | in the business of
selling tangible personal property at | 14 | | retail in this State during the
preceding calendar month shall | 15 | | file a return with the Department, stating: | 16 | | 1. The name of the seller; | 17 | | 2. His residence address and the address of his | 18 | | principal place of
business and the address of the | 19 | | principal place of business (if that is
a different | 20 | | address) from which he engages in the business of selling
| 21 | | tangible personal property at retail in this State; | 22 | | 3. Total amount of receipts received by him during the | 23 | | preceding
calendar month or quarter, as the case may be, | 24 | | from sales of tangible
personal property, and from | 25 | | services furnished, by him during such
preceding calendar |
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| 1 | | month or quarter; | 2 | | 4. Total amount received by him during the preceding | 3 | | calendar month or
quarter on charge and time sales of | 4 | | tangible personal property, and from
services furnished, | 5 | | by him prior to the month or quarter for which the return
| 6 | | is filed; | 7 | | 5. Deductions allowed by law; | 8 | | 6. Gross receipts which were received by him during | 9 | | the preceding
calendar month or quarter and upon the basis | 10 | | of which the tax is imposed; | 11 | | 7. The amount of credit provided in Section 2d of this | 12 | | Act; | 13 | | 8. The amount of tax due; | 14 | | 9. The signature of the taxpayer; and | 15 | | 10. Such other reasonable information as the | 16 | | Department may require. | 17 | | On and after January 1, 2018, except for returns for motor | 18 | | vehicles, watercraft, aircraft, and trailers that are required | 19 | | to be registered with an agency of this State, with respect to | 20 | | retailers whose annual gross receipts average $20,000 or more, | 21 | | all returns required to be filed pursuant to this Act shall be | 22 | | filed electronically. Retailers who demonstrate that they do | 23 | | not have access to the Internet or demonstrate hardship in | 24 | | filing electronically may petition the Department to waive the | 25 | | electronic filing requirement. | 26 | | If a taxpayer fails to sign a return within 30 days after |
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| 1 | | the proper notice
and demand for signature by the Department, | 2 | | the return shall be considered
valid and any amount shown to be | 3 | | due on the return shall be deemed assessed. | 4 | | Each return shall be accompanied by the statement of | 5 | | prepaid tax issued
pursuant to Section 2e for which credit is | 6 | | claimed. | 7 | | Prior to October 1, 2003, and on and after September 1, | 8 | | 2004 a retailer may accept a Manufacturer's Purchase
Credit
| 9 | | certification from a purchaser in satisfaction of Use Tax
as | 10 | | provided in Section 3-85 of the Use Tax Act if the purchaser | 11 | | provides the
appropriate documentation as required by Section | 12 | | 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
| 13 | | certification, accepted by a retailer prior to October 1, 2003 | 14 | | and on and after September 1, 2004 as provided
in
Section 3-85 | 15 | | of the Use Tax Act, may be used by that retailer to
satisfy | 16 | | Retailers' Occupation Tax liability in the amount claimed in
| 17 | | the certification, not to exceed 6.25% of the receipts
subject | 18 | | to tax from a qualifying purchase. A Manufacturer's Purchase | 19 | | Credit
reported on any original or amended return
filed under
| 20 | | this Act after October 20, 2003 for reporting periods prior to | 21 | | September 1, 2004 shall be disallowed. Manufacturer's | 22 | | Purchaser Credit reported on annual returns due on or after | 23 | | January 1, 2005 will be disallowed for periods prior to | 24 | | September 1, 2004. No Manufacturer's
Purchase Credit may be | 25 | | used after September 30, 2003 through August 31, 2004 to
| 26 | | satisfy any
tax liability imposed under this Act, including |
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| 1 | | any audit liability. | 2 | | The Department may require returns to be filed on a | 3 | | quarterly basis.
If so required, a return for each calendar | 4 | | quarter shall be filed on or
before the twentieth day of the | 5 | | calendar month following the end of such
calendar quarter. The | 6 | | taxpayer shall also file a return with the
Department for each | 7 | | of the first two months of each calendar quarter, on or
before | 8 | | the twentieth day of the following calendar month, stating: | 9 | | 1. The name of the seller; | 10 | | 2. The address of the principal place of business from | 11 | | which he engages
in the business of selling tangible | 12 | | personal property at retail in this State; | 13 | | 3. The total amount of taxable receipts received by | 14 | | him during the
preceding calendar month from sales of | 15 | | tangible personal property by him
during such preceding | 16 | | calendar month, including receipts from charge and
time | 17 | | sales, but less all deductions allowed by law; | 18 | | 4. The amount of credit provided in Section 2d of this | 19 | | Act; | 20 | | 5. The amount of tax due; and | 21 | | 6. Such other reasonable information as the Department | 22 | | may
require. | 23 | | Every person engaged in the business of selling aviation | 24 | | fuel at retail in this State during the preceding calendar | 25 | | month shall, instead of reporting and paying tax as otherwise | 26 | | required by this Section, report and pay such tax on a separate |
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| 1 | | aviation fuel tax return. The requirements related to the | 2 | | return shall be as otherwise provided in this Section. | 3 | | Notwithstanding any other provisions of this Act to the | 4 | | contrary, retailers selling aviation fuel shall file all | 5 | | aviation fuel tax returns and shall make all aviation fuel tax | 6 | | payments by electronic means in the manner and form required | 7 | | by the Department. For purposes of this Section, "aviation | 8 | | fuel" means jet fuel and aviation gasoline. | 9 | | Beginning on October 1, 2003, any person who is not a | 10 | | licensed
distributor, importing distributor, or manufacturer, | 11 | | as defined in the Liquor
Control Act of 1934, but is engaged in | 12 | | the business of
selling, at retail, alcoholic liquor
shall | 13 | | file a statement with the Department of Revenue, in a format
| 14 | | and at a time prescribed by the Department, showing the total | 15 | | amount paid for
alcoholic liquor purchased during the | 16 | | preceding month and such other
information as is reasonably | 17 | | required by the Department.
The Department may adopt rules to | 18 | | require
that this statement be filed in an electronic or | 19 | | telephonic format. Such rules
may provide for exceptions from | 20 | | the filing requirements of this paragraph. For
the
purposes of | 21 | | this
paragraph, the term "alcoholic liquor" shall have the | 22 | | meaning prescribed in the
Liquor Control Act of 1934. | 23 | | Beginning on October 1, 2003, every distributor, importing | 24 | | distributor, and
manufacturer of alcoholic liquor as defined | 25 | | in the Liquor Control Act of 1934,
shall file a
statement with | 26 | | the Department of Revenue, no later than the 10th day of the
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| 1 | | month for the
preceding month during which transactions | 2 | | occurred, by electronic means,
showing the
total amount of | 3 | | gross receipts from the sale of alcoholic liquor sold or
| 4 | | distributed during
the preceding month to purchasers; | 5 | | identifying the purchaser to whom it was
sold or
distributed; | 6 | | the purchaser's tax registration number; and such other
| 7 | | information
reasonably required by the Department. A | 8 | | distributor, importing distributor, or manufacturer of | 9 | | alcoholic liquor must personally deliver, mail, or provide by | 10 | | electronic means to each retailer listed on the monthly | 11 | | statement a report containing a cumulative total of that | 12 | | distributor's, importing distributor's, or manufacturer's | 13 | | total sales of alcoholic liquor to that retailer no later than | 14 | | the 10th day of the month for the preceding month during which | 15 | | the transaction occurred. The distributor, importing | 16 | | distributor, or manufacturer shall notify the retailer as to | 17 | | the method by which the distributor, importing distributor, or | 18 | | manufacturer will provide the sales information. If the | 19 | | retailer is unable to receive the sales information by | 20 | | electronic means, the distributor, importing distributor, or | 21 | | manufacturer shall furnish the sales information by personal | 22 | | delivery or by mail. For purposes of this paragraph, the term | 23 | | "electronic means" includes, but is not limited to, the use of | 24 | | a secure Internet website, e-mail, or facsimile. | 25 | | If a total amount of less than $1 is payable, refundable or | 26 | | creditable,
such amount shall be disregarded if it is less |
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| 1 | | than 50 cents and shall be
increased to $1 if it is 50 cents or | 2 | | more. | 3 | | Notwithstanding any other provision of this Act to the | 4 | | contrary, retailers subject to tax on cannabis shall file all | 5 | | cannabis tax returns and shall make all cannabis tax payments | 6 | | by electronic means in the manner and form required by the | 7 | | Department. | 8 | | Beginning October 1, 1993,
a taxpayer who has an average | 9 | | monthly tax liability of $150,000 or more shall
make all | 10 | | payments required by rules of the
Department by electronic | 11 | | funds transfer. Beginning October 1, 1994, a taxpayer
who has | 12 | | an average monthly tax liability of $100,000 or more shall | 13 | | make all
payments required by rules of the Department by | 14 | | electronic funds transfer.
Beginning October 1, 1995, a | 15 | | taxpayer who has an average monthly tax liability
of $50,000 | 16 | | or more shall make all
payments required by rules of the | 17 | | Department by electronic funds transfer.
Beginning October 1, | 18 | | 2000, a taxpayer who has an annual tax liability of
$200,000 or | 19 | | more shall make all payments required by rules of the | 20 | | Department by
electronic funds transfer. The term "annual tax | 21 | | liability" shall be the sum of
the taxpayer's liabilities | 22 | | under this Act, and under all other State and local
occupation | 23 | | and use tax laws administered by the Department, for the | 24 | | immediately
preceding calendar year.
The term "average monthly | 25 | | tax liability" shall be the sum of the
taxpayer's liabilities | 26 | | under this
Act, and under all other State and local occupation |
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| 1 | | and use tax
laws administered by the Department, for the | 2 | | immediately preceding calendar
year divided by 12.
Beginning | 3 | | on October 1, 2002, a taxpayer who has a tax liability in the
| 4 | | amount set forth in subsection (b) of Section 2505-210 of the | 5 | | Department of
Revenue Law shall make all payments required by | 6 | | rules of the Department by
electronic funds transfer. | 7 | | Before August 1 of each year beginning in 1993, the | 8 | | Department shall
notify all taxpayers required to make | 9 | | payments by electronic funds
transfer. All taxpayers
required | 10 | | to make payments by electronic funds transfer shall make those
| 11 | | payments for
a minimum of one year beginning on October 1. | 12 | | Any taxpayer not required to make payments by electronic | 13 | | funds transfer may
make payments by electronic funds transfer | 14 | | with
the permission of the Department. | 15 | | All taxpayers required to make payment by electronic funds | 16 | | transfer and
any taxpayers authorized to voluntarily make | 17 | | payments by electronic funds
transfer shall make those | 18 | | payments in the manner authorized by the Department. | 19 | | The Department shall adopt such rules as are necessary to | 20 | | effectuate a
program of electronic funds transfer and the | 21 | | requirements of this Section. | 22 | | Any amount which is required to be shown or reported on any | 23 | | return or
other document under this Act shall, if such amount | 24 | | is not a whole-dollar
amount, be increased to the nearest | 25 | | whole-dollar amount in any case where
the fractional part of a | 26 | | dollar is 50 cents or more, and decreased to the
nearest |
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| 1 | | whole-dollar amount where the fractional part of a dollar is | 2 | | less
than 50 cents. | 3 | | If the retailer is otherwise required to file a monthly | 4 | | return and if the
retailer's average monthly tax liability to | 5 | | the Department does not exceed
$200, the Department may | 6 | | authorize his returns to be filed on a quarter
annual basis, | 7 | | with the return for January, February and March of a given
year | 8 | | being due by April 20 of such year; with the return for April, | 9 | | May and
June of a given year being due by July 20 of such year; | 10 | | with the return for
July, August and September of a given year | 11 | | being due by October 20 of such
year, and with the return for | 12 | | October, November and December of a given
year being due by | 13 | | January 20 of the following year. | 14 | | If the retailer is otherwise required to file a monthly or | 15 | | quarterly
return and if the retailer's average monthly tax | 16 | | liability with the
Department does not exceed $50, the | 17 | | Department may authorize his returns to
be filed on an annual | 18 | | basis, with the return for a given year being due by
January 20 | 19 | | of the following year. | 20 | | Such quarter annual and annual returns, as to form and | 21 | | substance,
shall be subject to the same requirements as | 22 | | monthly returns. | 23 | | Notwithstanding any other provision in this Act concerning | 24 | | the time
within which a retailer may file his return, in the | 25 | | case of any retailer
who ceases to engage in a kind of business | 26 | | which makes him responsible
for filing returns under this Act, |
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| 1 | | such retailer shall file a final
return under this Act with the | 2 | | Department not more than one month after
discontinuing such | 3 | | business. | 4 | | Where the same person has more than one business | 5 | | registered with the
Department under separate registrations | 6 | | under this Act, such person may
not file each return that is | 7 | | due as a single return covering all such
registered | 8 | | businesses, but shall file separate returns for each such
| 9 | | registered business. | 10 | | In addition, with respect to motor vehicles, watercraft,
| 11 | | aircraft, and trailers that are required to be registered with | 12 | | an agency of
this State, except as otherwise provided in this | 13 | | Section, every
retailer selling this kind of tangible personal | 14 | | property shall file,
with the Department, upon a form to be | 15 | | prescribed and supplied by the
Department, a separate return | 16 | | for each such item of tangible personal
property which the | 17 | | retailer sells, except that if, in the same
transaction, (i) a | 18 | | retailer of aircraft, watercraft, motor vehicles or
trailers | 19 | | transfers more than one aircraft, watercraft, motor
vehicle or | 20 | | trailer to another aircraft, watercraft, motor vehicle
| 21 | | retailer or trailer retailer for the purpose of resale
or (ii) | 22 | | a retailer of aircraft, watercraft, motor vehicles, or | 23 | | trailers
transfers more than one aircraft, watercraft, motor | 24 | | vehicle, or trailer to a
purchaser for use as a qualifying | 25 | | rolling stock as provided in Section 2-5 of
this Act, then
that | 26 | | seller may report the transfer of all aircraft,
watercraft, |
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| 1 | | motor vehicles or trailers involved in that transaction to the
| 2 | | Department on the same uniform invoice-transaction reporting | 3 | | return form. For
purposes of this Section, "watercraft" means | 4 | | a Class 2, Class 3, or Class 4
watercraft as defined in Section | 5 | | 3-2 of the Boat Registration and Safety Act, a
personal | 6 | | watercraft, or any boat equipped with an inboard motor. | 7 | | In addition, with respect to motor vehicles, watercraft, | 8 | | aircraft, and trailers that are required to be registered with | 9 | | an agency of this State, every person who is engaged in the | 10 | | business of leasing or renting such items and who, in | 11 | | connection with such business, sells any such item to a | 12 | | retailer for the purpose of resale is, notwithstanding any | 13 | | other provision of this Section to the contrary, authorized to | 14 | | meet the return-filing requirement of this Act by reporting | 15 | | the transfer of all the aircraft, watercraft, motor vehicles, | 16 | | or trailers transferred for resale during a month to the | 17 | | Department on the same uniform invoice-transaction reporting | 18 | | return form on or before the 20th of the month following the | 19 | | month in which the transfer takes place. Notwithstanding any | 20 | | other provision of this Act to the contrary, all returns filed | 21 | | under this paragraph must be filed by electronic means in the | 22 | | manner and form as required by the Department. | 23 | | Any retailer who sells only motor vehicles, watercraft,
| 24 | | aircraft, or trailers that are required to be registered with | 25 | | an agency of
this State, so that all
retailers' occupation tax | 26 | | liability is required to be reported, and is
reported, on such |
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| 1 | | transaction reporting returns and who is not otherwise
| 2 | | required to file monthly or quarterly returns, need not file | 3 | | monthly or
quarterly returns. However, those retailers shall | 4 | | be required to
file returns on an annual basis. | 5 | | The transaction reporting return, in the case of motor | 6 | | vehicles
or trailers that are required to be registered with | 7 | | an agency of this
State, shall
be the same document as the | 8 | | Uniform Invoice referred to in Section 5-402
of the Illinois | 9 | | Vehicle Code and must show the name and address of the
seller; | 10 | | the name and address of the purchaser; the amount of the | 11 | | selling
price including the amount allowed by the retailer for | 12 | | traded-in
property, if any; the amount allowed by the retailer | 13 | | for the traded-in
tangible personal property, if any, to the | 14 | | extent to which Section 1 of
this Act allows an exemption for | 15 | | the value of traded-in property; the
balance payable after | 16 | | deducting such trade-in allowance from the total
selling | 17 | | price; the amount of tax due from the retailer with respect to
| 18 | | such transaction; the amount of tax collected from the | 19 | | purchaser by the
retailer on such transaction (or satisfactory | 20 | | evidence that such tax is
not due in that particular instance, | 21 | | if that is claimed to be the fact);
the place and date of the | 22 | | sale; a sufficient identification of the
property sold; such | 23 | | other information as is required in Section 5-402 of
the | 24 | | Illinois Vehicle Code, and such other information as the | 25 | | Department
may reasonably require. | 26 | | The transaction reporting return in the case of watercraft
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| 1 | | or aircraft must show
the name and address of the seller; the | 2 | | name and address of the
purchaser; the amount of the selling | 3 | | price including the amount allowed
by the retailer for | 4 | | traded-in property, if any; the amount allowed by
the retailer | 5 | | for the traded-in tangible personal property, if any, to
the | 6 | | extent to which Section 1 of this Act allows an exemption for | 7 | | the
value of traded-in property; the balance payable after | 8 | | deducting such
trade-in allowance from the total selling | 9 | | price; the amount of tax due
from the retailer with respect to | 10 | | such transaction; the amount of tax
collected from the | 11 | | purchaser by the retailer on such transaction (or
satisfactory | 12 | | evidence that such tax is not due in that particular
instance, | 13 | | if that is claimed to be the fact); the place and date of the
| 14 | | sale, a sufficient identification of the property sold, and | 15 | | such other
information as the Department may reasonably | 16 | | require. | 17 | | Such transaction reporting return shall be filed not later | 18 | | than 20
days after the day of delivery of the item that is | 19 | | being sold, but may
be filed by the retailer at any time sooner | 20 | | than that if he chooses to
do so. The transaction reporting | 21 | | return and tax remittance or proof of
exemption from the | 22 | | Illinois use tax may be transmitted to the Department
by way of | 23 | | the State agency with which, or State officer with whom the
| 24 | | tangible personal property must be titled or registered (if | 25 | | titling or
registration is required) if the Department and | 26 | | such agency or State
officer determine that this procedure |
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| 1 | | will expedite the processing of
applications for title or | 2 | | registration. | 3 | | With each such transaction reporting return, the retailer | 4 | | shall remit
the proper amount of tax due (or shall submit | 5 | | satisfactory evidence that
the sale is not taxable if that is | 6 | | the case), to the Department or its
agents, whereupon the | 7 | | Department shall issue, in the purchaser's name, a
use tax | 8 | | receipt (or a certificate of exemption if the Department is
| 9 | | satisfied that the particular sale is tax exempt) which such | 10 | | purchaser
may submit to the agency with which, or State | 11 | | officer with whom, he must
title or register the tangible | 12 | | personal property that is involved (if
titling or registration | 13 | | is required) in support of such purchaser's
application for an | 14 | | Illinois certificate or other evidence of title or
| 15 | | registration to such tangible personal property. | 16 | | No retailer's failure or refusal to remit tax under this | 17 | | Act
precludes a user, who has paid the proper tax to the | 18 | | retailer, from
obtaining his certificate of title or other | 19 | | evidence of title or
registration (if titling or registration | 20 | | is required) upon satisfying
the Department that such user has | 21 | | paid the proper tax (if tax is due) to
the retailer. The | 22 | | Department shall adopt appropriate rules to carry out
the | 23 | | mandate of this paragraph. | 24 | | If the user who would otherwise pay tax to the retailer | 25 | | wants the
transaction reporting return filed and the payment | 26 | | of the tax or proof
of exemption made to the Department before |
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| 1 | | the retailer is willing to
take these actions and such user has | 2 | | not paid the tax to the retailer,
such user may certify to the | 3 | | fact of such delay by the retailer and may
(upon the Department | 4 | | being satisfied of the truth of such certification)
transmit | 5 | | the information required by the transaction reporting return
| 6 | | and the remittance for tax or proof of exemption directly to | 7 | | the
Department and obtain his tax receipt or exemption | 8 | | determination, in
which event the transaction reporting return | 9 | | and tax remittance (if a
tax payment was required) shall be | 10 | | credited by the Department to the
proper retailer's account | 11 | | with the Department, but without the 2.1% or 1.75%
discount | 12 | | provided for in this Section being allowed. When the user pays
| 13 | | the tax directly to the Department, he shall pay the tax in the | 14 | | same
amount and in the same form in which it would be remitted | 15 | | if the tax had
been remitted to the Department by the retailer. | 16 | | Refunds made by the seller during the preceding return | 17 | | period to
purchasers, on account of tangible personal property | 18 | | returned to the
seller, shall be allowed as a deduction under | 19 | | subdivision 5 of his monthly
or quarterly return, as the case | 20 | | may be, in case the
seller had theretofore included the | 21 | | receipts from the sale of such
tangible personal property in a | 22 | | return filed by him and had paid the tax
imposed by this Act | 23 | | with respect to such receipts. | 24 | | Where the seller is a corporation, the return filed on | 25 | | behalf of such
corporation shall be signed by the president, | 26 | | vice-president, secretary
or treasurer or by the properly |
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| 1 | | accredited agent of such corporation. | 2 | | Where the seller is a limited liability company, the | 3 | | return filed on behalf
of the limited liability company shall | 4 | | be signed by a manager, member, or
properly accredited agent | 5 | | of the limited liability company. | 6 | | Except as provided in this Section, the retailer filing | 7 | | the return
under this Section shall, at the time of filing such | 8 | | return, pay to the
Department the amount of tax imposed by this | 9 | | Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% | 10 | | on and after January 1, 1990, or $5 per
calendar year, | 11 | | whichever is greater, which is allowed to
reimburse the | 12 | | retailer for the expenses incurred in keeping records,
| 13 | | preparing and filing returns, remitting the tax and supplying | 14 | | data to
the Department on request. On and after January 1, | 15 | | 2021, a certified service provider, as defined in the Leveling | 16 | | the Playing Field for Illinois Retail Act, filing the return | 17 | | under this Section on behalf of a remote retailer shall, at the | 18 | | time of such return, pay to the Department the amount of tax | 19 | | imposed by this Act less a discount of 1.75%. A remote retailer | 20 | | using a certified service provider to file a return on its | 21 | | behalf, as provided in the Leveling the Playing Field for | 22 | | Illinois Retail Act, is not eligible for the discount. The | 23 | | discount under this Section is not allowed for the 1.25% | 24 | | portion of taxes paid on aviation fuel that is subject to the | 25 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | 26 | | 47133. Any prepayment made pursuant to Section 2d
of this Act |
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| 1 | | shall be included in the amount on which such
2.1% or 1.75% | 2 | | discount is computed. In the case of retailers who report
and | 3 | | pay the tax on a transaction by transaction basis, as provided | 4 | | in this
Section, such discount shall be taken with each such | 5 | | tax remittance
instead of when such retailer files his | 6 | | periodic return. The discount allowed under this Section is | 7 | | allowed only for returns that are filed in the manner required | 8 | | by this Act. The Department may disallow the discount for | 9 | | retailers whose certificate of registration is revoked at the | 10 | | time the return is filed, but only if the Department's | 11 | | decision to revoke the certificate of registration has become | 12 | | final. | 13 | | Before October 1, 2000, if the taxpayer's average monthly | 14 | | tax liability
to the Department
under this Act, the Use Tax | 15 | | Act, the Service Occupation Tax
Act, and the Service Use Tax | 16 | | Act, excluding any liability for prepaid sales
tax to be | 17 | | remitted in accordance with Section 2d of this Act, was
| 18 | | $10,000
or more during the preceding 4 complete calendar | 19 | | quarters, he shall file a
return with the Department each | 20 | | month by the 20th day of the month next
following the month | 21 | | during which such tax liability is incurred and shall
make | 22 | | payments to the Department on or before the 7th, 15th, 22nd and | 23 | | last
day of the month during which such liability is incurred.
| 24 | | On and after October 1, 2000, if the taxpayer's average | 25 | | monthly tax liability
to the Department under this Act, the | 26 | | Use Tax Act, the Service Occupation Tax
Act, and the Service |
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| 1 | | Use Tax Act, excluding any liability for prepaid sales tax
to | 2 | | be remitted in accordance with Section 2d of this Act, was | 3 | | $20,000 or more
during the preceding 4 complete calendar | 4 | | quarters, he shall file a return with
the Department each | 5 | | month by the 20th day of the month next following the month
| 6 | | during which such tax liability is incurred and shall make | 7 | | payment to the
Department on or before the 7th, 15th, 22nd and | 8 | | last day of the month during
which such liability is incurred.
| 9 | | If the month
during which such tax liability is incurred began | 10 | | prior to January 1, 1985,
each payment shall be in an amount | 11 | | equal to 1/4 of the taxpayer's actual
liability for the month | 12 | | or an amount set by the Department not to exceed
1/4 of the | 13 | | average monthly liability of the taxpayer to the Department | 14 | | for
the preceding 4 complete calendar quarters (excluding the | 15 | | month of highest
liability and the month of lowest liability | 16 | | in such 4 quarter period). If
the month during which such tax | 17 | | liability is incurred begins on or after
January 1, 1985 and | 18 | | prior to January 1, 1987, each payment shall be in an
amount | 19 | | equal to 22.5% of the taxpayer's actual liability for the | 20 | | month or
27.5% of the taxpayer's liability for the same | 21 | | calendar
month of the preceding year. If the month during | 22 | | which such tax
liability is incurred begins on or after | 23 | | January 1, 1987 and prior to
January 1, 1988, each payment | 24 | | shall be in an amount equal to 22.5% of the
taxpayer's actual | 25 | | liability for the month or 26.25% of the taxpayer's
liability | 26 | | for the same calendar month of the preceding year. If the month
|
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| 1 | | during which such tax liability is incurred begins on or after | 2 | | January 1,
1988, and prior to January 1, 1989, or begins on or | 3 | | after January 1, 1996, each
payment shall be in an amount
equal | 4 | | to 22.5% of the taxpayer's actual liability for the month or | 5 | | 25% of
the taxpayer's liability for the same calendar month of | 6 | | the preceding year. If
the month during which such tax | 7 | | liability is incurred begins on or after
January 1, 1989, and | 8 | | prior to January 1, 1996, each payment shall be in an
amount | 9 | | equal to 22.5% of the
taxpayer's actual liability for the | 10 | | month or 25% of the taxpayer's
liability for the same calendar | 11 | | month of the preceding year or 100% of the
taxpayer's actual | 12 | | liability for the quarter monthly reporting period. The
amount | 13 | | of such quarter monthly payments shall be credited against
the | 14 | | final tax liability of the taxpayer's return for that month. | 15 | | Before
October 1, 2000, once
applicable, the requirement of | 16 | | the making of quarter monthly payments to
the Department by | 17 | | taxpayers having an average monthly tax liability of
$10,000 | 18 | | or more as determined in the manner provided above
shall | 19 | | continue
until such taxpayer's average monthly liability to | 20 | | the Department during
the preceding 4 complete calendar | 21 | | quarters (excluding the month of highest
liability and the | 22 | | month of lowest liability) is less than
$9,000, or until
such | 23 | | taxpayer's average monthly liability to the Department as | 24 | | computed for
each calendar quarter of the 4 preceding complete | 25 | | calendar quarter period
is less than $10,000. However, if a | 26 | | taxpayer can show the
Department that
a substantial change in |
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| 1 | | the taxpayer's business has occurred which causes
the taxpayer | 2 | | to anticipate that his average monthly tax liability for the
| 3 | | reasonably foreseeable future will fall below the $10,000 | 4 | | threshold
stated above, then
such taxpayer
may petition the | 5 | | Department for a change in such taxpayer's reporting
status. | 6 | | On and after October 1, 2000, once applicable, the requirement | 7 | | of
the making of quarter monthly payments to the Department by | 8 | | taxpayers having an
average monthly tax liability of $20,000 | 9 | | or more as determined in the manner
provided above shall | 10 | | continue until such taxpayer's average monthly liability
to | 11 | | the Department during the preceding 4 complete calendar | 12 | | quarters (excluding
the month of highest liability and the | 13 | | month of lowest liability) is less than
$19,000 or until such | 14 | | taxpayer's average monthly liability to the Department as
| 15 | | computed for each calendar quarter of the 4 preceding complete | 16 | | calendar quarter
period is less than $20,000. However, if a | 17 | | taxpayer can show the Department
that a substantial change in | 18 | | the taxpayer's business has occurred which causes
the taxpayer | 19 | | to anticipate that his average monthly tax liability for the
| 20 | | reasonably foreseeable future will fall below the $20,000 | 21 | | threshold stated
above, then such taxpayer may petition the | 22 | | Department for a change in such
taxpayer's reporting status. | 23 | | The Department shall change such taxpayer's
reporting status
| 24 | | unless it finds that such change is seasonal in nature and not | 25 | | likely to be
long term. If any such quarter monthly payment is | 26 | | not paid at the time or
in the amount required by this Section, |
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| 1 | | then the taxpayer shall be liable for
penalties and interest | 2 | | on the difference
between the minimum amount due as a payment | 3 | | and the amount of such quarter
monthly payment actually and | 4 | | timely paid, except insofar as the
taxpayer has previously | 5 | | made payments for that month to the Department in
excess of the | 6 | | minimum payments previously due as provided in this Section.
| 7 | | The Department shall make reasonable rules and regulations to | 8 | | govern the
quarter monthly payment amount and quarter monthly | 9 | | payment dates for
taxpayers who file on other than a calendar | 10 | | monthly basis. | 11 | | The provisions of this paragraph apply before October 1, | 12 | | 2001.
Without regard to whether a taxpayer is required to make | 13 | | quarter monthly
payments as specified above, any taxpayer who | 14 | | is required by Section 2d
of this Act to collect and remit | 15 | | prepaid taxes and has collected prepaid
taxes which average in | 16 | | excess of $25,000 per month during the preceding
2 complete | 17 | | calendar quarters, shall file a return with the Department as
| 18 | | required by Section 2f and shall make payments to the | 19 | | Department on or before
the 7th, 15th, 22nd and last day of the | 20 | | month during which such liability
is incurred. If the month | 21 | | during which such tax liability is incurred
began prior to | 22 | | September 1, 1985 (the effective date of Public Act 84-221), | 23 | | each
payment shall be in an amount not less than 22.5% of the | 24 | | taxpayer's actual
liability under Section 2d. If the month | 25 | | during which such tax liability
is incurred begins on or after | 26 | | January 1, 1986, each payment shall be in an
amount equal to |
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| 1 | | 22.5% of the taxpayer's actual liability for the month or
| 2 | | 27.5% of the taxpayer's liability for the same calendar month | 3 | | of the
preceding calendar year. If the month during which such | 4 | | tax liability is
incurred begins on or after January 1, 1987, | 5 | | each payment shall be in an
amount equal to 22.5% of the | 6 | | taxpayer's actual liability for the month or
26.25% of the | 7 | | taxpayer's liability for the same calendar month of the
| 8 | | preceding year. The amount of such quarter monthly payments | 9 | | shall be
credited against the final tax liability of the | 10 | | taxpayer's return for that
month filed under this Section or | 11 | | Section 2f, as the case may be. Once
applicable, the | 12 | | requirement of the making of quarter monthly payments to
the | 13 | | Department pursuant to this paragraph shall continue until | 14 | | such
taxpayer's average monthly prepaid tax collections during | 15 | | the preceding 2
complete calendar quarters is $25,000 or less. | 16 | | If any such quarter monthly
payment is not paid at the time or | 17 | | in the amount required, the taxpayer
shall be liable for | 18 | | penalties and interest on such difference, except
insofar as | 19 | | the taxpayer has previously made payments for that month in
| 20 | | excess of the minimum payments previously due. | 21 | | The provisions of this paragraph apply on and after | 22 | | October 1, 2001.
Without regard to whether a taxpayer is | 23 | | required to make quarter monthly
payments as specified above, | 24 | | any taxpayer who is required by Section 2d of this
Act to | 25 | | collect and remit prepaid taxes and has collected prepaid | 26 | | taxes that
average in excess of $20,000 per month during the |
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| 1 | | preceding 4 complete calendar
quarters shall file a return | 2 | | with the Department as required by Section 2f
and shall make | 3 | | payments to the Department on or before the 7th, 15th, 22nd and
| 4 | | last day of the month during which the liability is incurred. | 5 | | Each payment
shall be in an amount equal to 22.5% of the | 6 | | taxpayer's actual liability for the
month or 25% of the | 7 | | taxpayer's liability for the same calendar month of the
| 8 | | preceding year. The amount of the quarter monthly payments | 9 | | shall be credited
against the final tax liability of the | 10 | | taxpayer's return for that month filed
under this Section or | 11 | | Section 2f, as the case may be. Once applicable, the
| 12 | | requirement of the making of quarter monthly payments to the | 13 | | Department
pursuant to this paragraph shall continue until the | 14 | | taxpayer's average monthly
prepaid tax collections during the | 15 | | preceding 4 complete calendar quarters
(excluding the month of | 16 | | highest liability and the month of lowest liability) is
less | 17 | | than $19,000 or until such taxpayer's average monthly | 18 | | liability to the
Department as computed for each calendar | 19 | | quarter of the 4 preceding complete
calendar quarters is less | 20 | | than $20,000. If any such quarter monthly payment is
not paid | 21 | | at the time or in the amount required, the taxpayer shall be | 22 | | liable
for penalties and interest on such difference, except | 23 | | insofar as the taxpayer
has previously made payments for that | 24 | | month in excess of the minimum payments
previously due. | 25 | | If any payment provided for in this Section exceeds
the | 26 | | taxpayer's liabilities under this Act, the Use Tax Act, the |
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| 1 | | Service
Occupation Tax Act and the Service Use Tax Act, as | 2 | | shown on an original
monthly return, the Department shall, if | 3 | | requested by the taxpayer, issue to
the taxpayer a credit | 4 | | memorandum no later than 30 days after the date of
payment. The | 5 | | credit evidenced by such credit memorandum may
be assigned by | 6 | | the taxpayer to a similar taxpayer under this Act, the
Use Tax | 7 | | Act, the Service Occupation Tax Act or the Service Use Tax Act, | 8 | | in
accordance with reasonable rules and regulations to be | 9 | | prescribed by the
Department. If no such request is made, the | 10 | | taxpayer may credit such excess
payment against tax liability | 11 | | subsequently to be remitted to the Department
under this Act, | 12 | | the Use Tax Act, the Service Occupation Tax Act or the
Service | 13 | | Use Tax Act, in accordance with reasonable rules and | 14 | | regulations
prescribed by the Department. If the Department | 15 | | subsequently determined
that all or any part of the credit | 16 | | taken was not actually due to the
taxpayer, the taxpayer's | 17 | | 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or | 18 | | 1.75% of the difference between the credit taken and that
| 19 | | actually due, and that taxpayer shall be liable for penalties | 20 | | and interest
on such difference. | 21 | | If a retailer of motor fuel is entitled to a credit under | 22 | | Section 2d of
this Act which exceeds the taxpayer's liability | 23 | | to the Department under
this Act for the month which the | 24 | | taxpayer is filing a return, the
Department shall issue the | 25 | | taxpayer a credit memorandum for the excess. | 26 | | Beginning January 1, 1990, each month the Department shall |
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| 1 | | pay into
the Local Government Tax Fund, a special fund in the | 2 | | State treasury which
is hereby created, the net revenue | 3 | | realized for the preceding month from
the 1% tax imposed under | 4 | | this Act. | 5 | | Beginning January 1, 1990, each month the Department shall | 6 | | pay into
the County and Mass Transit District Fund, a special | 7 | | fund in the State
treasury which is hereby created, 4% of the | 8 | | net revenue realized
for the preceding month from the 6.25% | 9 | | general rate other than aviation fuel sold on or after | 10 | | December 1, 2019. This exception for aviation fuel only | 11 | | applies for so long as the revenue use requirements of 49 | 12 | | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | 13 | | Beginning August 1, 2000, each
month the Department shall | 14 | | pay into the
County and Mass Transit District Fund 20% of the | 15 | | net revenue realized for the
preceding month from the 1.25% | 16 | | rate on the selling price of motor fuel and
gasohol. Beginning | 17 | | September 1, 2010, each month the Department shall pay into | 18 | | the County and Mass Transit District Fund 20% of the net | 19 | | revenue realized for the preceding month from the 1.25% rate | 20 | | on the selling price of sales tax holiday items. | 21 | | Beginning January 1, 1990, each month the Department shall | 22 | | pay into
the Local Government Tax Fund 16% of the net revenue | 23 | | realized for the
preceding month from the 6.25% general rate | 24 | | on the selling price of
tangible personal property other than | 25 | | aviation fuel sold on or after December 1, 2019. This | 26 | | exception for aviation fuel only applies for so long as the |
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| 1 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | 2 | | 47133 are binding on the State. | 3 | | For aviation fuel sold on or after December 1, 2019, each | 4 | | month the Department shall pay into the State Aviation Program | 5 | | Fund 20% of the net revenue realized for the preceding month | 6 | | from the 6.25% general rate on the selling price of aviation | 7 | | fuel, less an amount estimated by the Department to be | 8 | | required for refunds of the 20% portion of the tax on aviation | 9 | | fuel under this Act, which amount shall be deposited into the | 10 | | Aviation Fuel Sales Tax Refund Fund. The Department shall only | 11 | | pay moneys into the State Aviation Program Fund and the | 12 | | Aviation Fuel Sales Tax Refund Fund under this Act for so long | 13 | | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | 14 | | U.S.C. 47133 are binding on the State. | 15 | | Beginning August 1, 2000, each
month the Department shall | 16 | | pay into the
Local Government Tax Fund 80% of the net revenue | 17 | | realized for the preceding
month from the 1.25% rate on the | 18 | | selling price of motor fuel and gasohol. Beginning September | 19 | | 1, 2010, each month the Department shall pay into the Local | 20 | | Government Tax Fund 80% of the net revenue realized for the | 21 | | preceding month from the 1.25% rate on the selling price of | 22 | | sales tax holiday items. | 23 | | Beginning October 1, 2009, each month the Department shall | 24 | | pay into the Capital Projects Fund an amount that is equal to | 25 | | an amount estimated by the Department to represent 80% of the | 26 | | net revenue realized for the preceding month from the sale of |
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| 1 | | candy, grooming and hygiene products, and soft drinks that had | 2 | | been taxed at a rate of 1% prior to September 1, 2009 but that | 3 | | are now taxed at 6.25%. | 4 | | Beginning July 1, 2011, each
month the Department shall | 5 | | pay into the Clean Air Act Permit Fund 80% of the net revenue | 6 | | realized for the
preceding month from the 6.25% general rate | 7 | | on the selling price of sorbents used in Illinois in the | 8 | | process of sorbent injection as used to comply with the | 9 | | Environmental Protection Act or the federal Clean Air Act, but | 10 | | the total payment into the Clean Air Act Permit Fund under this | 11 | | Act and the Use Tax Act shall not exceed $2,000,000 in any | 12 | | fiscal year. | 13 | | Beginning July 1, 2013, each month the Department shall | 14 | | pay into the Underground Storage Tank Fund from the proceeds | 15 | | collected under this Act, the Use Tax Act, the Service Use Tax | 16 | | Act, and the Service Occupation Tax Act an amount equal to the | 17 | | average monthly deficit in the Underground Storage Tank Fund | 18 | | during the prior year, as certified annually by the Illinois | 19 | | Environmental Protection Agency, but the total payment into | 20 | | the Underground Storage Tank Fund under this Act, the Use Tax | 21 | | Act, the Service Use Tax Act, and the Service Occupation Tax | 22 | | Act shall not exceed $18,000,000 in any State fiscal year. As | 23 | | used in this paragraph, the "average monthly deficit" shall be | 24 | | equal to the difference between the average monthly claims for | 25 | | payment by the fund and the average monthly revenues deposited | 26 | | into the fund, excluding payments made pursuant to this |
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| 1 | | paragraph. | 2 | | Beginning July 1, 2015, of the remainder of the moneys | 3 | | received by the Department under the Use Tax Act, the Service | 4 | | Use Tax Act, the Service Occupation Tax Act, and this Act, each | 5 | | month the Department shall deposit $500,000 into the State | 6 | | Crime Laboratory Fund. | 7 | | Of the remainder of the moneys received by the Department | 8 | | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | 9 | | Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on | 10 | | and after July 1, 1989,
3.8% thereof shall be paid into the | 11 | | Build Illinois Fund; provided, however,
that if in any fiscal | 12 | | year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case | 13 | | may be, of the moneys received by the Department and required | 14 | | to
be paid into the Build Illinois Fund pursuant to this Act, | 15 | | Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax | 16 | | Act, and Section 9 of the
Service Occupation Tax Act, such Acts | 17 | | being hereinafter called the "Tax
Acts" and such aggregate of | 18 | | 2.2% or 3.8%, as the case may be, of moneys
being hereinafter | 19 | | called the "Tax Act Amount", and (2) the amount
transferred to | 20 | | the Build Illinois Fund from the State and Local Sales Tax
| 21 | | Reform Fund shall be less than the Annual Specified Amount (as | 22 | | hereinafter
defined), an amount equal to the difference shall | 23 | | be immediately paid into
the Build Illinois Fund from other | 24 | | moneys received by the Department
pursuant to the Tax Acts; | 25 | | the "Annual Specified Amount" means the amounts
specified | 26 | | below for fiscal years 1986 through 1993: | |
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| 1 | | Fiscal Year | Annual Specified Amount | |
2 | | 1986 | $54,800,000 | |
3 | | 1987 | $76,650,000 | |
4 | | 1988 | $80,480,000 | |
5 | | 1989 | $88,510,000 | |
6 | | 1990 | $115,330,000 | |
7 | | 1991 | $145,470,000 | |
8 | | 1992 | $182,730,000 | |
9 | | 1993 | $206,520,000; |
| 10 | | and means the Certified Annual Debt Service Requirement (as | 11 | | defined in
Section 13 of the Build Illinois Bond Act) or the | 12 | | Tax Act Amount, whichever
is greater, for fiscal year 1994 and | 13 | | each fiscal year thereafter; and
further provided, that if on | 14 | | the last business day of any month the sum of
(1) the Tax Act | 15 | | Amount required to be deposited into the Build Illinois
Bond | 16 | | Account in the Build Illinois Fund during such month and (2) | 17 | | the
amount transferred to the Build Illinois Fund from the | 18 | | State and Local
Sales Tax Reform Fund shall have been less than | 19 | | 1/12 of the Annual
Specified Amount, an amount equal to the | 20 | | difference shall be immediately
paid into the Build Illinois | 21 | | Fund from other moneys received by the
Department pursuant to | 22 | | the Tax Acts; and, further provided, that in no
event shall the | 23 | | payments required under the preceding proviso result in
| 24 | | aggregate payments into the Build Illinois Fund pursuant to | 25 | | this clause (b)
for any fiscal year in excess of the greater of | 26 | | (i) the Tax Act Amount or
(ii) the Annual Specified Amount for |
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| 1 | | such fiscal year. The amounts payable
into the Build Illinois | 2 | | Fund under clause (b) of the first sentence in this
paragraph | 3 | | shall be payable only until such time as the aggregate amount | 4 | | on
deposit under each trust indenture securing Bonds issued | 5 | | and outstanding
pursuant to the Build Illinois Bond Act is | 6 | | sufficient, taking into account
any future investment income, | 7 | | to fully provide, in accordance with such
indenture, for the | 8 | | defeasance of or the payment of the principal of,
premium, if | 9 | | any, and interest on the Bonds secured by such indenture and on
| 10 | | any Bonds expected to be issued thereafter and all fees and | 11 | | costs payable
with respect thereto, all as certified by the | 12 | | Director of the Bureau of the
Budget (now Governor's Office of | 13 | | Management and Budget). If on the last
business day of any | 14 | | month in which Bonds are
outstanding pursuant to the Build | 15 | | Illinois Bond Act, the aggregate of
moneys deposited in the | 16 | | Build Illinois Bond Account in the Build Illinois
Fund in such | 17 | | month shall be less than the amount required to be transferred
| 18 | | in such month from the Build Illinois Bond Account to the Build | 19 | | Illinois
Bond Retirement and Interest Fund pursuant to Section | 20 | | 13 of the Build
Illinois Bond Act, an amount equal to such | 21 | | deficiency shall be immediately
paid from other moneys | 22 | | received by the Department pursuant to the Tax Acts
to the | 23 | | Build Illinois Fund; provided, however, that any amounts paid | 24 | | to the
Build Illinois Fund in any fiscal year pursuant to this | 25 | | sentence shall be
deemed to constitute payments pursuant to | 26 | | clause (b) of the first sentence
of this paragraph and shall |
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| 1 | | reduce the amount otherwise payable for such
fiscal year | 2 | | pursuant to that clause (b). The moneys received by the
| 3 | | Department pursuant to this Act and required to be deposited | 4 | | into the Build
Illinois Fund are subject to the pledge, claim | 5 | | and charge set forth in
Section 12 of the Build Illinois Bond | 6 | | Act. | 7 | | Subject to payment of amounts into the Build Illinois Fund | 8 | | as provided in
the preceding paragraph or in any amendment | 9 | | thereto hereafter enacted, the
following specified monthly | 10 | | installment of the amount requested in the
certificate of the | 11 | | Chairman of the Metropolitan Pier and Exposition
Authority | 12 | | provided under Section 8.25f of the State Finance Act, but not | 13 | | in
excess of sums designated as "Total Deposit", shall be | 14 | | deposited in the
aggregate from collections under Section 9 of | 15 | | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | 16 | | 9 of the Service Occupation Tax Act, and
Section 3 of the | 17 | | Retailers' Occupation Tax Act into the McCormick Place
| 18 | | Expansion Project Fund in the specified fiscal years. | |
19 | | Fiscal Year | | Total Deposit | |
20 | | 1993 | | $0 | |
21 | | 1994 | | 53,000,000 | |
22 | | 1995 | | 58,000,000 | |
23 | | 1996 | | 61,000,000 | |
24 | | 1997 | | 64,000,000 | |
25 | | 1998 | | 68,000,000 | |
26 | | 1999 | | 71,000,000 | |
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| 1 | | 2000 | | 75,000,000 | |
2 | | 2001 | | 80,000,000 | |
3 | | 2002 | | 93,000,000 | |
4 | | 2003 | | 99,000,000 | |
5 | | 2004 | | 103,000,000 | |
6 | | 2005 | | 108,000,000 | |
7 | | 2006 | | 113,000,000 | |
8 | | 2007 | | 119,000,000 | |
9 | | 2008 | | 126,000,000 | |
10 | | 2009 | | 132,000,000 | |
11 | | 2010 | | 139,000,000 | |
12 | | 2011 | | 146,000,000 | |
13 | | 2012 | | 153,000,000 | |
14 | | 2013 | | 161,000,000 | |
15 | | 2014 | | 170,000,000 | |
16 | | 2015 | | 179,000,000 | |
17 | | 2016 | | 189,000,000 | |
18 | | 2017 | | 199,000,000 | |
19 | | 2018 | | 210,000,000 | |
20 | | 2019 | | 221,000,000 | |
21 | | 2020 | | 233,000,000 | |
22 | | 2021 | | 300,000,000 | |
23 | | 2022 | | 300,000,000 | |
24 | | 2023 | | 300,000,000 | |
25 | | 2024 | | 300,000,000 | |
26 | | 2025 | | 300,000,000 | |
|
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| 1 | | 2026 | | 300,000,000 | |
2 | | 2027 | | 375,000,000 | |
3 | | 2028 | | 375,000,000 | |
4 | | 2029 | | 375,000,000 | |
5 | | 2030 | | 375,000,000 | |
6 | | 2031 | | 375,000,000 | |
7 | | 2032 | | 375,000,000 | |
8 | | 2033 | | 375,000,000 | |
9 | | 2034 | | 375,000,000 | |
10 | | 2035 | | 375,000,000 | |
11 | | 2036 | | 450,000,000 | |
12 | | and | | |
|
13 | | each fiscal year | | |
|
14 | | thereafter that bonds | | |
|
15 | | are outstanding under | | |
|
16 | | Section 13.2 of the | | |
|
17 | | Metropolitan Pier and | | |
|
18 | | Exposition Authority Act, | | |
|
19 | | but not after fiscal year 2060. | | |
| 20 | | Beginning July 20, 1993 and in each month of each fiscal | 21 | | year thereafter,
one-eighth of the amount requested in the | 22 | | certificate of the Chairman of
the Metropolitan Pier and | 23 | | Exposition Authority for that fiscal year, less
the amount | 24 | | deposited into the McCormick Place Expansion Project Fund by | 25 | | the
State Treasurer in the respective month under subsection | 26 | | (g) of Section 13
of the Metropolitan Pier and Exposition |
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| 1 | | Authority Act, plus cumulative
deficiencies in the deposits | 2 | | required under this Section for previous
months and years, | 3 | | shall be deposited into the McCormick Place Expansion
Project | 4 | | Fund, until the full amount requested for the fiscal year, but | 5 | | not
in excess of the amount specified above as "Total | 6 | | Deposit", has been deposited. | 7 | | Subject to payment of amounts into the Capital Projects | 8 | | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | 9 | | and the McCormick Place Expansion Project Fund pursuant to the | 10 | | preceding paragraphs or in any amendments thereto hereafter | 11 | | enacted, for aviation fuel sold on or after December 1, 2019, | 12 | | the Department shall each month deposit into the Aviation Fuel | 13 | | Sales Tax Refund Fund an amount estimated by the Department to | 14 | | be required for refunds of the 80% portion of the tax on | 15 | | aviation fuel under this Act. The Department shall only | 16 | | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | 17 | | under this paragraph for so long as the revenue use | 18 | | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | 19 | | binding on the State. | 20 | | Subject to payment of amounts into the Build Illinois Fund | 21 | | and the
McCormick Place Expansion Project Fund pursuant to the | 22 | | preceding paragraphs
or in any amendments
thereto hereafter | 23 | | enacted, beginning July 1, 1993 and ending on September 30, | 24 | | 2013, the Department shall each
month pay into the Illinois | 25 | | Tax Increment Fund 0.27% of 80% of the net revenue
realized for | 26 | | the preceding month from the 6.25% general rate on the selling
|
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| 1 | | price of tangible personal property. | 2 | | Subject to payment of amounts into the Build Illinois Fund | 3 | | and the
McCormick Place Expansion Project Fund pursuant to the | 4 | | preceding paragraphs or in any
amendments thereto hereafter | 5 | | enacted, beginning with the receipt of the first
report of | 6 | | taxes paid by an eligible business and continuing for a | 7 | | 25-year
period, the Department shall each month pay into the | 8 | | Energy Infrastructure
Fund 80% of the net revenue realized | 9 | | from the 6.25% general rate on the
selling price of | 10 | | Illinois-mined coal that was sold to an eligible business.
For | 11 | | purposes of this paragraph, the term "eligible business" means | 12 | | a new
electric generating facility certified pursuant to | 13 | | Section 605-332 of the
Department of Commerce and Economic | 14 | | Opportunity
Law of the Civil Administrative Code of Illinois. | 15 | | Subject to payment of amounts into the Build Illinois | 16 | | Fund, the McCormick Place Expansion Project Fund, the Illinois | 17 | | Tax Increment Fund, and the Energy Infrastructure Fund | 18 | | pursuant to the preceding paragraphs or in any amendments to | 19 | | this Section hereafter enacted, beginning on the first day of | 20 | | the first calendar month to occur on or after August 26, 2014 | 21 | | (the effective date of Public Act 98-1098), each month, from | 22 | | the collections made under Section 9 of the Use Tax Act, | 23 | | Section 9 of the Service Use Tax Act, Section 9 of the Service | 24 | | Occupation Tax Act, and Section 3 of the Retailers' Occupation | 25 | | Tax Act, the Department shall pay into the Tax Compliance and | 26 | | Administration Fund, to be used, subject to appropriation, to |
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| 1 | | fund additional auditors and compliance personnel at the | 2 | | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | 3 | | the cash receipts collected during the preceding fiscal year | 4 | | by the Audit Bureau of the Department under the Use Tax Act, | 5 | | the Service Use Tax Act, the Service Occupation Tax Act, the | 6 | | Retailers' Occupation Tax Act, and associated local occupation | 7 | | and use taxes administered by the Department. | 8 | | Subject to payments of amounts into the Build Illinois | 9 | | Fund, the McCormick Place Expansion Project Fund, the Illinois | 10 | | Tax Increment Fund, the Energy Infrastructure Fund, and the | 11 | | Tax Compliance and Administration Fund as provided in this | 12 | | Section, beginning on July 1, 2018 the Department shall pay | 13 | | each month into the Downstate Public Transportation Fund the | 14 | | moneys required to be so paid under Section 2-3 of the | 15 | | Downstate Public Transportation Act. | 16 | | Subject to successful execution and delivery of a | 17 | | public-private agreement between the public agency and private | 18 | | entity and completion of the civic build, beginning on July 1, | 19 | | 2023, of the remainder of the moneys received by the | 20 | | Department under the Use Tax Act, the Service Use Tax Act, the | 21 | | Service Occupation Tax Act, and this Act, the Department shall | 22 | | deposit the following specified deposits in the aggregate from | 23 | | collections under the Use Tax Act, the Service Use Tax Act, the | 24 | | Service Occupation Tax Act, and the Retailers' Occupation Tax | 25 | | Act, as required under Section 8.25g of the State Finance Act | 26 | | for distribution consistent with the Public-Private |
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| 1 | | Partnership for Civic and Transit Infrastructure Project Act. | 2 | | The moneys received by the Department pursuant to this Act and | 3 | | required to be deposited into the Civic and Transit | 4 | | Infrastructure Fund are subject to the pledge, claim and | 5 | | charge set forth in Section 25-55 of the Public-Private | 6 | | Partnership for Civic and Transit Infrastructure Project Act. | 7 | | As used in this paragraph, "civic build", "private entity", | 8 | | "public-private agreement", and "public agency" have the | 9 | | meanings provided in Section 25-10 of the Public-Private | 10 | | Partnership for Civic and Transit Infrastructure Project Act. | 11 | | Fiscal Year .............................Total Deposit | 12 | | 2024 .....................................$200,000,000 | 13 | | 2025 ....................................$206,000,000 | 14 | | 2026 ....................................$212,200,000 | 15 | | 2027 ....................................$218,500,000 | 16 | | 2028 ....................................$225,100,000 | 17 | | 2029 ....................................$288,700,000 | 18 | | 2030 ....................................$298,900,000 | 19 | | 2031 ....................................$309,300,000 | 20 | | 2032 ....................................$320,100,000 | 21 | | 2033 ....................................$331,200,000 | 22 | | 2034 ....................................$341,200,000 | 23 | | 2035 ....................................$351,400,000 | 24 | | 2036 ....................................$361,900,000 | 25 | | 2037 ....................................$372,800,000 | 26 | | 2038 ....................................$384,000,000 |
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| 1 | | 2039 ....................................$395,500,000 | 2 | | 2040 ....................................$407,400,000 | 3 | | 2041 ....................................$419,600,000 | 4 | | 2042 ....................................$432,200,000 | 5 | | 2043 ....................................$445,100,000 | 6 | | Beginning July 1, 2021 and until July 1, 2022, subject to | 7 | | the payment of amounts into the County and Mass Transit | 8 | | District Fund, the Local Government Tax Fund, the Build | 9 | | Illinois Fund, the McCormick Place Expansion Project Fund, the | 10 | | Illinois Tax Increment Fund, the Energy Infrastructure Fund, | 11 | | and the Tax Compliance and Administration Fund as provided in | 12 | | this Section, the Department shall pay each month into the | 13 | | Road Fund the amount estimated to represent 16% of the net | 14 | | revenue realized from the taxes imposed on motor fuel and | 15 | | gasohol. Beginning July 1, 2022 and until July 1, 2023, | 16 | | subject to the payment of amounts into the County and Mass | 17 | | Transit District Fund, the Local Government Tax Fund, the | 18 | | Build Illinois Fund, the McCormick Place Expansion Project | 19 | | Fund, the Illinois Tax Increment Fund, the Energy | 20 | | Infrastructure Fund, and the Tax Compliance and Administration | 21 | | Fund as provided in this Section, the Department shall pay | 22 | | each month into the Road Fund the amount estimated to | 23 | | represent 32% of the net revenue realized from the taxes | 24 | | imposed on motor fuel and gasohol. Beginning July 1, 2023 and | 25 | | until July 1, 2024, subject to the payment of amounts into the | 26 | | County and Mass Transit District Fund, the Local Government |
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| 1 | | Tax Fund, the Build Illinois Fund, the McCormick Place | 2 | | Expansion Project Fund, the Illinois Tax Increment Fund, the | 3 | | Energy Infrastructure Fund, and the Tax Compliance and | 4 | | Administration Fund as provided in this Section, the | 5 | | Department shall pay each month into the Road Fund the amount | 6 | | estimated to represent 48% of the net revenue realized from | 7 | | the taxes imposed on motor fuel and gasohol. Beginning July 1, | 8 | | 2024 and until July 1, 2025, subject to the payment of amounts | 9 | | into the County and Mass Transit District Fund, the Local | 10 | | Government Tax Fund, the Build Illinois Fund, the McCormick | 11 | | Place Expansion Project Fund, the Illinois Tax Increment Fund, | 12 | | the Energy Infrastructure Fund, and the Tax Compliance and | 13 | | Administration Fund as provided in this Section, the | 14 | | Department shall pay each month into the Road Fund the amount | 15 | | estimated to represent 64% of the net revenue realized from | 16 | | the taxes imposed on motor fuel and gasohol. Beginning on July | 17 | | 1, 2025, subject to the payment of amounts into the County and | 18 | | Mass Transit District Fund, the Local Government Tax Fund, the | 19 | | Build Illinois Fund, the McCormick Place Expansion Project | 20 | | Fund, the Illinois Tax Increment Fund, the Energy | 21 | | Infrastructure Fund, and the Tax Compliance and Administration | 22 | | Fund as provided in this Section, the Department shall pay | 23 | | each month into the Road Fund the amount estimated to | 24 | | represent 80% of the net revenue realized from the taxes | 25 | | imposed on motor fuel and gasohol. As used in this paragraph | 26 | | "motor fuel" has the meaning given to that term in Section 1.1 |
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| 1 | | of the Motor Fuel Tax Act, and "gasohol" has the meaning given | 2 | | to that term in Section 3-40 of the Use Tax Act. | 3 | | Of the remainder of the moneys received by the Department | 4 | | pursuant to
this Act, 75% thereof shall be paid into the State | 5 | | Treasury and 25% shall
be reserved in a special account and | 6 | | used only for the transfer to the
Common School Fund as part of | 7 | | the monthly transfer from the General Revenue
Fund in | 8 | | accordance with Section 8a of the State Finance Act. | 9 | | The Department may, upon separate written notice to a | 10 | | taxpayer,
require the taxpayer to prepare and file with the | 11 | | Department on a form
prescribed by the Department within not | 12 | | less than 60 days after receipt
of the notice an annual | 13 | | information return for the tax year specified in
the notice. | 14 | | Such annual return to the Department shall include a
statement | 15 | | of gross receipts as shown by the retailer's last Federal | 16 | | income
tax return. If the total receipts of the business as | 17 | | reported in the
Federal income tax return do not agree with the | 18 | | gross receipts reported to
the Department of Revenue for the | 19 | | same period, the retailer shall attach
to his annual return a | 20 | | schedule showing a reconciliation of the 2
amounts and the | 21 | | reasons for the difference. The retailer's annual
return to | 22 | | the Department shall also disclose the cost of goods sold by
| 23 | | the retailer during the year covered by such return, opening | 24 | | and closing
inventories of such goods for such year, costs of | 25 | | goods used from stock
or taken from stock and given away by the | 26 | | retailer during such year,
payroll information of the |
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| 1 | | retailer's business during such year and any
additional | 2 | | reasonable information which the Department deems would be
| 3 | | helpful in determining the accuracy of the monthly, quarterly | 4 | | or annual
returns filed by such retailer as provided for in | 5 | | this Section. | 6 | | If the annual information return required by this Section | 7 | | is not
filed when and as required, the taxpayer shall be liable | 8 | | as follows: | 9 | | (i) Until January 1, 1994, the taxpayer shall be | 10 | | liable
for a penalty equal to 1/6 of 1% of the tax due from | 11 | | such taxpayer under
this Act during the period to be | 12 | | covered by the annual return for each
month or fraction of | 13 | | a month until such return is filed as required, the
| 14 | | penalty to be assessed and collected in the same manner as | 15 | | any other
penalty provided for in this Act. | 16 | | (ii) On and after January 1, 1994, the taxpayer shall | 17 | | be
liable for a penalty as described in Section 3-4 of the | 18 | | Uniform Penalty and
Interest Act. | 19 | | The chief executive officer, proprietor, owner or highest | 20 | | ranking
manager shall sign the annual return to certify the | 21 | | accuracy of the
information contained therein. Any person who | 22 | | willfully signs the
annual return containing false or | 23 | | inaccurate information shall be guilty
of perjury and punished | 24 | | accordingly. The annual return form prescribed
by the | 25 | | Department shall include a warning that the person signing the
| 26 | | return may be liable for perjury. |
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| 1 | | The provisions of this Section concerning the filing of an | 2 | | annual
information return do not apply to a retailer who is not | 3 | | required to
file an income tax return with the United States | 4 | | Government. | 5 | | As soon as possible after the first day of each month, upon | 6 | | certification
of the Department of Revenue, the Comptroller | 7 | | shall order transferred and
the Treasurer shall transfer from | 8 | | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | 9 | | equal to 1.7% of 80% of the net revenue realized
under this Act | 10 | | for the second preceding
month.
Beginning April 1, 2000, this | 11 | | transfer is no longer required
and shall not be made. | 12 | | Net revenue realized for a month shall be the revenue | 13 | | collected by the
State pursuant to this Act, less the amount | 14 | | paid out during that month as
refunds to taxpayers for | 15 | | overpayment of liability. | 16 | | For greater simplicity of administration, manufacturers, | 17 | | importers
and wholesalers whose products are sold at retail in | 18 | | Illinois by
numerous retailers, and who wish to do so, may | 19 | | assume the responsibility
for accounting and paying to the | 20 | | Department all tax accruing under this
Act with respect to | 21 | | such sales, if the retailers who are affected do not
make | 22 | | written objection to the Department to this arrangement. | 23 | | Any person who promotes, organizes, provides retail | 24 | | selling space for
concessionaires or other types of sellers at | 25 | | the Illinois State Fair, DuQuoin
State Fair, county fairs, | 26 | | local fairs, art shows, flea markets and similar
exhibitions |
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| 1 | | or events, including any transient merchant as defined by | 2 | | Section 2
of the Transient Merchant Act of 1987, is required to | 3 | | file a report with the
Department providing the name of the | 4 | | merchant's business, the name of the
person or persons engaged | 5 | | in merchant's business, the permanent address and
Illinois | 6 | | Retailers Occupation Tax Registration Number of the merchant, | 7 | | the
dates and location of the event and other reasonable | 8 | | information that the
Department may require. The report must | 9 | | be filed not later than the 20th day
of the month next | 10 | | following the month during which the event with retail sales
| 11 | | was held. Any person who fails to file a report required by | 12 | | this Section
commits a business offense and is subject to a | 13 | | fine not to exceed $250. | 14 | | Any person engaged in the business of selling tangible | 15 | | personal
property at retail as a concessionaire or other type | 16 | | of seller at the
Illinois State Fair, county fairs, art shows, | 17 | | flea markets and similar
exhibitions or events, or any | 18 | | transient merchants, as defined by Section 2
of the Transient | 19 | | Merchant Act of 1987, may be required to make a daily report
of | 20 | | the amount of such sales to the Department and to make a daily | 21 | | payment of
the full amount of tax due. The Department shall | 22 | | impose this
requirement when it finds that there is a | 23 | | significant risk of loss of
revenue to the State at such an | 24 | | exhibition or event. Such a finding
shall be based on evidence | 25 | | that a substantial number of concessionaires
or other sellers | 26 | | who are not residents of Illinois will be engaging in
the |
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| 1 | | business of selling tangible personal property at retail at | 2 | | the
exhibition or event, or other evidence of a significant | 3 | | risk of loss of revenue
to the State. The Department shall | 4 | | notify concessionaires and other sellers
affected by the | 5 | | imposition of this requirement. In the absence of
notification | 6 | | by the Department, the concessionaires and other sellers
shall | 7 | | file their returns as otherwise required in this Section. | 8 | | (Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18; | 9 | | 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article | 10 | | 15, Section 15-25, eff. 6-5-19; 101-10, Article 25, Section | 11 | | 25-120, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff. | 12 | | 6-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.) | 13 | | Section 10. The Leveling the Playing Field for Illinois | 14 | | Retail Act is amended by changing Sections 5-5 and 5-25 as | 15 | | follows: | 16 | | (35 ILCS 185/5-5)
| 17 | | Sec. 5-5. Findings. The General Assembly finds that | 18 | | certified service providers and certified automated systems | 19 | | simplify use and occupation tax compliance for remote | 20 | | retailers, which fosters higher levels of accurate tax | 21 | | collection and remittance and generates administrative savings | 22 | | and new marginal tax revenue for both State and local taxing | 23 | | jurisdictions. By making the services of certified service | 24 | | providers and certified automated systems available to remote |
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| 1 | | retailers without charge, other than their retailer customer's | 2 | | retail discount, as provided in this Act, the State will | 3 | | substantially eliminate the burden on those remote retailers | 4 | | to collect and remit both State and local taxing jurisdiction | 5 | | use and occupation taxes. While providing a means for remote | 6 | | retailers to collect and remit tax on an even basis with | 7 | | Illinois retailers, this Act also protects existing local tax | 8 | | revenue streams by retaining origin sourcing for all | 9 | | transactions by retailers maintaining a physical presence in | 10 | | Illinois.
| 11 | | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.) | 12 | | (35 ILCS 185/5-25)
| 13 | | Sec. 5-25. Certification. | 14 | | (a) The Department shall, no later than July 1, 2020: | 15 | | (1) establish uniform minimum standards that companies | 16 | | wishing to be designated as a certified service provider | 17 | | in this State must meet; | 18 | | (2) establish uniform minimum standards that certified | 19 | | automated systems must meet; | 20 | | (3) establish a certification process to review the | 21 | | systems of companies wishing to be designated as a | 22 | | certified service provider in this State or of companies | 23 | | wishing to use a certified automated process; this | 24 | | certification process shall provide that companies that | 25 | | meet all required standards and whose systems have been |
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| 1 | | tested and approved by the Department for properly | 2 | | determining the taxability of items to be sold, the | 3 | | correct tax rate to apply to a transaction, and the | 4 | | appropriate jurisdictions to which the tax shall be | 5 | | remitted, shall be certified; | 6 | | (4) enter into a contractual relationship with each | 7 | | company that qualifies as a certified service provider or | 8 | | that will be using a certified automated system ; those | 9 | | contracts shall, at a minimum, provide: | 10 | | (A) that the certified service provider shall be | 11 | | held liable for the tax imposed under this Act and the | 12 | | Use Tax Act and all applicable local occupation taxes | 13 | | administered by the Department if the certified | 14 | | service provider fails to correctly remit the tax | 15 | | after having been provided with the tax and | 16 | | information by a remote retailer to correctly remit | 17 | | the taxes imposed under this Act and the Use Tax Act | 18 | | and all applicable local occupation taxes administered | 19 | | by the Department; if the certified service provider | 20 | | demonstrates to the satisfaction of the Department | 21 | | that its failure to correctly remit tax on a retail | 22 | | sale resulted from the certified service provider's | 23 | | good faith reliance on incorrect or insufficient | 24 | | information provided by the remote retailer, the | 25 | | certified service provider shall be relieved of | 26 | | liability for the tax on that retail sale; in that |
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| 1 | | case, the remote retailer is liable for any resulting | 2 | | tax due; | 3 | | (B) the responsibilities of the certified service | 4 | | provider and the remote retailers that contract with | 5 | | the certified service provider or the user of a | 6 | | certified automated system related to record keeping | 7 | | and auditing consistent with requirements imposed | 8 | | under the Retailers' Occupation Tax Act and the Use | 9 | | Tax Act; | 10 | | (C) for the protection and confidentiality of tax | 11 | | information consistent with requirements imposed under | 12 | | the Retailers' Occupation Tax Act and the Use Tax Act; | 13 | | (D) that a certified service provider may claim | 14 | | the discount provided for in Section 3 of the | 15 | | Retailers' Occupation Tax Act for the tax dollars it | 16 | | collects and timely remits on returns that are timely | 17 | | filed with the Department on behalf of remote | 18 | | retailers; remote retailers using a certified service | 19 | | provider may not claim the discount allowed in Section | 20 | | 3 of the Retailers' Occupation Tax Act with respect to | 21 | | those collections compensation equal to 1.75% of the | 22 | | tax dollars collected and remitted to the State by a | 23 | | certified service provider on a timely basis, along | 24 | | with a return that has been timely filed, on behalf of | 25 | | remote retailers; remote retailers using a certified | 26 | | service provider may not claim the vendor's discount |
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| 1 | | allowed under the Retailers' Occupation Tax Act or the | 2 | | Service Occupation Tax Act ; and | 3 | | (E) that the certified service provider shall file | 4 | | a separate return for each remote retailer with which | 5 | | it has a Tax Remittance Agreement. | 6 | | The provisions of this Section shall supersede the | 7 | | provisions of the Illinois Procurement Code.
| 8 | | (b) The Department may act jointly with other states to | 9 | | establish the minimum standards and process for certification | 10 | | required by paragraphs (1), (2), and (3) of subsection (a). | 11 | | (c) When the systems of a certified service provider or | 12 | | certified automated systems are updated or upgraded, they must | 13 | | be recertified by the Department. Notification of changes | 14 | | shall be provided to the Department prior to implementation. | 15 | | Upon receipt of such notification, the Department shall review | 16 | | and test the changes to assess whether the updated system of | 17 | | the certified service provider or the updated certified | 18 | | automated system can properly determine the taxability of | 19 | | items to be sold, the correct tax rate to apply to a | 20 | | transaction, and the appropriate jurisdictions to which the | 21 | | tax shall be remitted. The Department shall recertify updated | 22 | | systems that meet these requirements. The certified service | 23 | | provider or retailer using a certified automated system shall | 24 | | be liable for any tax resulting from errors caused by use of an | 25 | | updated or upgraded system prior to recertification by the | 26 | | Department. In addition to these procedures, the Department |
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| 1 | | may periodically review the system of a certified service | 2 | | provider or the certified automated system used by a retailer | 3 | | to ensure that the system can properly determine the | 4 | | taxability of items to be sold, the correct tax rate to apply | 5 | | to a transaction, and the appropriate jurisdictions to which | 6 | | the tax shall be remitted. | 7 | | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law. |
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