(35 ILCS 638/40)
Sec. 40.
Safe harbor.
(a) If neither the State nor a designated database provider provides an
electronic database under Section 25, a home service provider shall be held
harmless from any tax, charge, or fee liability that otherwise would be due
solely as a result of an assignment of a street address to an incorrect taxing
jurisdiction if, subject to Section 60, the home service provider employs an
enhanced zip code to assign each street address to a specific taxing
jurisdiction for each level of taxing jurisdiction and exercises due diligence
at each level of taxing jurisdiction to ensure that each such street address is
assigned to the correct taxing jurisdiction. If an enhanced zip code overlaps
boundaries of taxing jurisdictions of the same level, the home service provider
must designate one specific jurisdiction within the enhanced zip code for use
in taxing the activity for the enhanced zip code for each level of taxing
jurisdiction. Any enhanced zip code assignment changed in accordance with
Section 60 is deemed to be in compliance with this Section.
(b) For purposes of this Section, there is a rebuttable presumption that a
home service provider has exercised due diligence if the home service provider
demonstrates that it has:
(1) expended reasonable resources to implement and |
| maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions;
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(2) implemented and maintained reasonable internal
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| controls to promptly correct misassignments of street addresses to taxing jurisdictions; and
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(3) used all reasonably obtainable and usable data
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| pertaining to municipal annexations, incorporations, reorganizations, and any other changes in jurisdictional boundaries that materially affect the accuracy of the database.
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(Source: P.A. 92-474, eff. 8-1-02.)
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