(35 ILCS 105/3-10.5)
Sec. 3-10.5.
Direct payment of retailers' occupation tax and applicable
local retailers' occupation tax by purchaser; purchaser relieved of paying use
tax and local retailers' occupation tax reimbursement liabilities to retailer.
(a) A retailer who makes a retail sale of tangible personal property to a
purchaser who provides the retailer with a copy of the purchaser's valid Direct
Pay Permit issued under Section 2-10.5 of the Retailers' Occupation Tax Act is
not required under Section 3-45 of this Act to collect the tax imposed by this
Act on that sale.
(b) A purchaser who makes a purchase from a retailer who would otherwise
incur retailers' occupation tax liability on the transaction and who provides
the retailer with a copy of a valid Direct Pay Permit issued under Section
2-10.5 of the Retailers' Occupation Tax Act does not incur the tax imposed by
this Act on the purchase. The purchaser assumes the retailer's obligation to
pay the retailers' occupation tax directly to the Department, including all
local retailers' occupation tax liabilities applicable to that retail sale.
(c) A purchaser who makes a purchase from a retailer who would not incur
retailers' occupation tax liability on the transaction and who provides the
retailer with a copy of a valid Direct Pay Permit issued under Section 2-10.5
of the Retailers' Occupation Tax Act incurs the tax imposed by this Act on the
purchase. If, on any transaction, the retailer is entitled under this Act to a
discount for collecting and remitting the tax imposed under this Act to the
Department, the right to the discount provided in Section 9 of this Act shall
be transferred to the Permit holder. If the retailer would not be entitled to
a discount as provided in Section 9 of this Act, then the Permit holder is not
entitled to a discount.
(Source: P.A. 92-484, eff. 8-23-01.)
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