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| Public Act 098-0628 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 3. The Use Tax Act is amended by changing Section 2 | ||||
as follows:
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(35 ILCS 105/2) (from Ch. 120, par. 439.2)
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Sec. 2. "Use" means the exercise by any person of any right | ||||
or power over
tangible personal property incident to the | ||||
ownership of that property,
except that it does not include the | ||||
sale of such property in any form as
tangible personal property | ||||
in the regular course of business to the extent
that such | ||||
property is not first subjected to a use for which it was
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purchased, and does not include the use of such property by its | ||||
owner for
demonstration purposes: Provided that the property | ||||
purchased is deemed to
be purchased for the purpose of resale, | ||||
despite first being used, to the
extent to which it is resold | ||||
as an ingredient of an intentionally produced
product or | ||||
by-product of manufacturing. "Use" does not mean the | ||||
demonstration
use or interim use of tangible personal property | ||||
by a retailer before he sells
that tangible personal property. | ||||
For watercraft or aircraft, if the period of
demonstration use | ||||
or interim use by the retailer exceeds 18 months,
the retailer
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shall pay on the retailers' original cost price the tax imposed | ||||
by this Act,
and no credit for that tax is permitted if the | ||
watercraft or aircraft is
subsequently sold by the retailer. | ||
"Use" does not mean the physical
incorporation of tangible | ||
personal property, to the extent not first subjected
to a use | ||
for which it was purchased, as an ingredient or constituent, | ||
into
other tangible personal property (a) which is sold in the | ||
regular course of
business or (b) which the person | ||
incorporating such ingredient or constituent
therein has | ||
undertaken at the time of such purchase to cause to be | ||
transported
in interstate commerce to destinations outside the | ||
State of Illinois: Provided
that the property purchased is | ||
deemed to be purchased for the purpose of
resale, despite first | ||
being used, to the extent to which it is resold as an
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ingredient of an intentionally produced product or by-product | ||
of manufacturing.
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"Watercraft" means a Class 2, Class 3, or Class 4 | ||
watercraft as defined in
Section 3-2 of the Boat Registration | ||
and Safety Act, a personal watercraft, or
any boat equipped | ||
with an inboard motor.
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"Purchase at retail" means the acquisition of the ownership | ||
of or title
to tangible personal property through a sale at | ||
retail.
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"Purchaser" means anyone who, through a sale at retail, | ||
acquires the
ownership of tangible personal property for a | ||
valuable consideration.
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"Sale at retail" means any transfer of the ownership of or | ||
title to
tangible personal property to a purchaser, for the | ||
purpose of use, and not
for the purpose of resale in any form | ||
as tangible personal property to the
extent not first subjected | ||
to a use for which it was purchased, for a
valuable | ||
consideration: Provided that the property purchased is deemed | ||
to
be purchased for the purpose of resale, despite first being | ||
used, to the
extent to which it is resold as an ingredient of | ||
an intentionally produced
product or by-product of | ||
manufacturing. For this purpose, slag produced as
an incident | ||
to manufacturing pig iron or steel and sold is considered to be
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an intentionally produced by-product of manufacturing. "Sale | ||
at retail"
includes any such transfer made for resale unless | ||
made in compliance with
Section 2c of the Retailers' Occupation | ||
Tax Act, as incorporated by
reference into Section 12 of this | ||
Act. Transactions whereby the possession
of the property is | ||
transferred but the seller retains the title as security
for | ||
payment of the selling price are sales.
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"Sale at retail" shall also be construed to include any | ||
Illinois
florist's sales transaction in which the purchase | ||
order is received in
Illinois by a florist and the sale is for | ||
use or consumption, but the
Illinois florist has a florist in | ||
another state deliver the property to the
purchaser or the | ||
purchaser's donee in such other state.
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Nonreusable tangible personal property that is used by | ||
persons engaged in
the business of operating a restaurant, | ||
cafeteria, or drive-in is a sale for
resale when it is | ||
transferred to customers in the ordinary course of business
as | ||
part of the sale of food or beverages and is used to deliver, | ||
package, or
consume food or beverages, regardless of where | ||
consumption of the food or
beverages occurs. Examples of those | ||
items include, but are not limited to
nonreusable, paper and | ||
plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||
containers, utensils, straws, placemats, napkins, doggie bags, | ||
and
wrapping or packaging
materials that are transferred to | ||
customers as part of the sale of food or
beverages in the | ||
ordinary course of business.
| ||
The purchase, employment and transfer of such tangible | ||
personal property
as newsprint and ink for the primary purpose | ||
of conveying news (with or
without other information) is not a | ||
purchase, use or sale of tangible
personal property.
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"Selling price" means the consideration for a sale valued | ||
in money
whether received in money or otherwise, including | ||
cash, credits, property
other than as hereinafter provided, and | ||
services, but not including the
value of or credit given for | ||
traded-in tangible personal property where the
item that is | ||
traded-in is of like kind and character as that which is being
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sold, and shall be determined without any deduction on account | ||
of the cost
of the property sold, the cost of materials used, | ||
labor or service cost or
any other expense whatsoever, but does | ||
not include interest or finance
charges which appear as | ||
separate items on the bill of sale or sales
contract nor | ||
charges that are added to prices by sellers on account of the
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seller's tax liability under the "Retailers' Occupation Tax | ||
Act", or on
account of the seller's duty to collect, from the | ||
purchaser, the tax that
is imposed by this Act, or, except as | ||
otherwise provided with respect to any cigarette tax imposed by | ||
a home rule unit, on account of the seller's tax liability | ||
under any local occupation tax administered by the Department, | ||
or, except as otherwise provided with respect to any cigarette | ||
tax imposed by a home rule unit on account of the seller's duty | ||
to collect, from the purchasers, the tax that is imposed under | ||
any local use tax administered by the Department. Effective | ||
December 1, 1985, "selling price"
shall include charges that | ||
are added to prices by sellers on account of the
seller's tax | ||
liability under the Cigarette Tax Act, on account of the | ||
seller's
duty to collect, from the purchaser, the tax imposed | ||
under the Cigarette Use
Tax Act, and on account of the seller's | ||
duty to collect, from the purchaser,
any cigarette tax imposed | ||
by a home rule unit.
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Notwithstanding any law to the contrary, for any motor | ||
vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||
is sold on or after July 1, 2014 for the purpose of leasing the | ||
vehicle for a defined period that is longer than one year and | ||
(1) is a motor vehicle of the second division that: (A) is a | ||
self-contained motor vehicle designed or permanently converted | ||
to provide living quarters for recreational, camping, or travel | ||
use, with direct walk through access to the living quarters | ||
from the driver's seat; (B) is of the van configuration | ||
designed for the transportation of not less than 7 nor more | ||
than 16 passengers; or (C) has a gross vehicle weight rating of | ||
8,000 pounds or less or (2) is a motor vehicle of the first | ||
division, "selling price" or "amount of sale" means the | ||
consideration received by the lessor pursuant to the lease | ||
contract, including amounts due at lease signing and all | ||
monthly or other regular payments charged over the term of the | ||
lease. Also included in the selling price is any amount | ||
received by the lessor from the lessee for the leased vehicle | ||
that is not calculated at the time the lease is executed, | ||
including, but not limited to, excess mileage charges and | ||
charges for excess wear and tear. For sales that occur in | ||
Illinois, with respect to any amount received by the lessor | ||
from the lessee for the leased vehicle that is not calculated | ||
at the time the lease is executed, the lessor who purchased the | ||
motor vehicle does not incur the tax imposed by the Use Tax Act | ||
on those amounts, and the retailer who makes the retail sale of | ||
the motor vehicle to the lessor is not required to collect the | ||
tax imposed by this Act or to pay the tax imposed by the | ||
Retailers' Occupation Tax Act on those amounts. However, the | ||
lessor who purchased the motor vehicle assumes the liability | ||
for reporting and paying the tax on those amounts directly to | ||
the Department in the same form (Illinois Retailers' Occupation | ||
Tax, and local retailers' occupation taxes, if applicable) in | ||
which the retailer would have reported and paid such tax if the | ||
retailer had accounted for the tax to the Department. For | ||
amounts received by the lessor from the lessee that are not | ||
calculated at the time the lease is executed, the lessor must | ||
file the return and pay the tax to the Department by the due | ||
date otherwise required by this Act for returns other than | ||
transaction returns. If the retailer is entitled under this Act | ||
to a discount for collecting and remitting the tax imposed | ||
under this Act to the Department with respect to the sale of | ||
the motor vehicle to the lessor, then the right to the discount | ||
provided in this Act shall be transferred to the lessor with | ||
respect to the tax paid by the lessor for any amount received | ||
by the lessor from the lessee for the leased vehicle that is | ||
not calculated at the time the lease is executed; provided that | ||
the discount is only allowed if the return is timely filed and | ||
for amounts timely paid. The "selling price" of a motor vehicle | ||
that is sold on or after July 1, 2014 for the purpose of | ||
leasing for a defined period of longer than one year shall not | ||
be reduced by the value of or credit given for traded-in | ||
tangible personal property owned by the lessor, nor shall it be | ||
reduced by the value of or credit given for traded-in tangible | ||
personal property owned by the lessee, regardless of whether | ||
the trade-in value thereof is assigned by the lessee to the | ||
lessor. In the case of a motor vehicle that is sold for the | ||
purpose of leasing for a defined period of longer than one | ||
year, the sale occurs at the time of the delivery of the | ||
vehicle, regardless of the due date of any lease payments. A | ||
lessor who incurs a Retailers' Occupation Tax liability on the | ||
sale of a motor vehicle coming off lease may not take a credit | ||
against that liability for the Use Tax the lessor paid upon the | ||
purchase of the motor vehicle (or for any tax the lessor paid | ||
with respect to any amount received by the lessor from the | ||
lessee for the leased vehicle that was not calculated at the | ||
time the lease was executed) if the selling price of the motor | ||
vehicle at the time of purchase was calculated using the | ||
definition of "selling price" as defined in this paragraph. | ||
Notwithstanding any other provision of this Act to the | ||
contrary, lessors shall file all returns and make all payments | ||
required under this paragraph to the Department by electronic | ||
means in the manner and form as required by the Department. | ||
This paragraph does not apply to leases of motor vehicles for | ||
which, at the time the lease is entered into, the term of the | ||
lease is not a defined period, including leases with a defined | ||
initial period with the option to continue the lease on a | ||
month-to-month or other basis beyond the initial defined | ||
period. | ||
The phrase "like kind and character" shall be liberally | ||
construed
(including but not limited to any form of motor | ||
vehicle for any form of
motor vehicle, or any kind of farm or | ||
agricultural implement for any other
kind of farm or | ||
agricultural implement), while not including a kind of item
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which, if sold at retail by that retailer, would be exempt from | ||
retailers'
occupation tax and use tax as an isolated or | ||
occasional sale.
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"Department" means the Department of Revenue.
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"Person" means any natural individual, firm, partnership, | ||
association,
joint stock company, joint adventure, public or | ||
private corporation, limited
liability company, or a
receiver, | ||
executor, trustee, guardian or other representative appointed
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by order of any court.
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"Retailer" means and includes every person engaged in the | ||
business of
making sales at retail as defined in this Section.
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A person who holds himself or herself out as being engaged | ||
(or who habitually
engages) in selling tangible personal | ||
property at retail is a retailer
hereunder with respect to such | ||
sales (and not primarily in a service
occupation) | ||
notwithstanding the fact that such person designs and produces
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such tangible personal property on special order for the | ||
purchaser and in
such a way as to render the property of value | ||
only to such purchaser, if
such tangible personal property so | ||
produced on special order serves
substantially the same | ||
function as stock or standard items of tangible
personal | ||
property that are sold at retail.
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A person whose activities are organized and conducted | ||
primarily as a
not-for-profit service enterprise, and who | ||
engages in selling tangible
personal property at retail | ||
(whether to the public or merely to members and
their guests) | ||
is a retailer with respect to such transactions, excepting
only | ||
a person organized and operated exclusively for charitable, | ||
religious
or educational purposes either (1), to the extent of | ||
sales by such person
to its members, students, patients or | ||
inmates of tangible personal property
to be used primarily for | ||
the purposes of such person, or (2), to the extent
of sales by | ||
such person of tangible personal property which is not sold or
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offered for sale by persons organized for profit. The selling | ||
of school
books and school supplies by schools at retail to | ||
students is not
"primarily for the purposes of" the school | ||
which does such selling. This
paragraph does not apply to nor | ||
subject to taxation occasional dinners,
social or similar | ||
activities of a person organized and operated exclusively
for | ||
charitable, religious or educational purposes, whether or not | ||
such
activities are open to the public.
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A person who is the recipient of a grant or contract under | ||
Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||
serves meals to
participants in the federal Nutrition Program | ||
for the Elderly in return for
contributions established in | ||
amount by the individual participant pursuant
to a schedule of | ||
suggested fees as provided for in the federal Act is not a
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retailer under this Act with respect to such transactions.
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Persons who engage in the business of transferring tangible | ||
personal
property upon the redemption of trading stamps are | ||
retailers hereunder when
engaged in such business.
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The isolated or occasional sale of tangible personal | ||
property at retail
by a person who does not hold himself out as | ||
being engaged (or who does not
habitually engage) in selling | ||
such tangible personal property at retail or
a sale through a | ||
bulk vending machine does not make such person a retailer
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hereunder. However, any person who is engaged in a business | ||
which is not
subject to the tax imposed by the "Retailers' | ||
Occupation Tax Act" because
of involving the sale of or a | ||
contract to sell real estate or a
construction contract to | ||
improve real estate, but who, in the course of
conducting such | ||
business, transfers tangible personal property to users or
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consumers in the finished form in which it was purchased, and | ||
which does
not become real estate, under any provision of a | ||
construction contract or
real estate sale or real estate sales | ||
agreement entered into with some
other person arising out of or | ||
because of such nontaxable business, is a
retailer to the | ||
extent of the value of the tangible personal property so
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transferred. If, in such transaction, a separate charge is made | ||
for the
tangible personal property so transferred, the value of | ||
such property, for
the purposes of this Act, is the amount so | ||
separately charged, but not less
than the cost of such property | ||
to the transferor; if no separate charge is
made, the value of | ||
such property, for the purposes of this Act, is the cost
to the | ||
transferor of such tangible personal property.
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"Retailer maintaining a place of business in this State", | ||
or any like
term, means and includes any of the following | ||
retailers:
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1. A retailer having or maintaining within this State, | ||
directly or by
a subsidiary, an office, distribution house, | ||
sales house, warehouse or other
place of business, or any | ||
agent or other representative operating within this
State | ||
under the authority of the retailer or its subsidiary, | ||
irrespective of
whether such place of business or agent or | ||
other representative is located here
permanently or | ||
temporarily, or whether such retailer or subsidiary is | ||
licensed
to do business in this State. However, the | ||
ownership of property that is
located at the premises of a | ||
printer with which the retailer has contracted for
printing | ||
and that consists of the final printed product, property | ||
that becomes
a part of the final printed product, or copy | ||
from which the printed product is
produced shall not result | ||
in the retailer being deemed to have or maintain an
office, | ||
distribution house, sales house, warehouse, or other place | ||
of business
within this State. | ||
1.1. Beginning July 1, 2011, a retailer having a | ||
contract with a person located in this State under which | ||
the person, for a commission or other consideration based | ||
upon the sale of tangible personal property by the | ||
retailer, directly or indirectly refers potential | ||
customers to the retailer by a link on the person's | ||
Internet website. The provisions of this paragraph 1.1 | ||
shall apply only if the cumulative gross receipts from | ||
sales of tangible personal property by the retailer to | ||
customers who are referred to the retailer by all persons | ||
in this State under such contracts exceed $10,000 during | ||
the preceding 4 quarterly periods ending on the last day of | ||
March, June, September, and December. | ||
1.2. Beginning July 1, 2011, a retailer having a | ||
contract with a person located in this State under which: | ||
A. the retailer sells the same or substantially | ||
similar line of products as the person located in this | ||
State and does so using an identical or substantially | ||
similar name, trade name, or trademark as the person | ||
located in this State; and | ||
B. the retailer provides a commission or other | ||
consideration to the person located in this State based | ||
upon the sale of tangible personal property by the | ||
retailer. | ||
The provisions of this paragraph 1.2 shall apply only if | ||
the cumulative gross receipts from sales of tangible | ||
personal property by the retailer to customers in this | ||
State under all such contracts exceed $10,000 during the | ||
preceding 4 quarterly periods ending on the last day of | ||
March, June, September, and December.
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2. A retailer soliciting orders for tangible personal | ||
property by
means of a telecommunication or television | ||
shopping system (which utilizes toll
free numbers) which is | ||
intended by the retailer to be broadcast by cable
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television or other means of broadcasting, to consumers | ||
located in this State.
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3. A retailer, pursuant to a contract with a | ||
broadcaster or publisher
located in this State, soliciting | ||
orders for tangible personal property by
means of | ||
advertising which is disseminated primarily to consumers | ||
located in
this State and only secondarily to bordering | ||
jurisdictions.
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4. A retailer soliciting orders for tangible personal | ||
property by mail
if the solicitations are substantial and | ||
recurring and if the retailer benefits
from any banking, | ||
financing, debt collection, telecommunication, or | ||
marketing
activities occurring in this State or benefits | ||
from the location in this State
of authorized installation, | ||
servicing, or repair facilities.
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5. A retailer that is owned or controlled by the same | ||
interests that own
or control any retailer engaging in | ||
business in the same or similar line of
business in this | ||
State.
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6. A retailer having a franchisee or licensee operating | ||
under its trade
name if the franchisee or licensee is | ||
required to collect the tax under this
Section.
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7. A retailer, pursuant to a contract with a cable | ||
television operator
located in this State, soliciting | ||
orders for tangible personal property by
means of | ||
advertising which is transmitted or distributed over a | ||
cable
television system in this State.
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8. A retailer engaging in activities in Illinois, which | ||
activities in
the state in which the retail business | ||
engaging in such activities is located
would constitute | ||
maintaining a place of business in that state.
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"Bulk vending machine" means a vending machine,
containing | ||
unsorted confections, nuts, toys, or other items designed
| ||
primarily to be used or played with by children
which, when a | ||
coin or coins of a denomination not larger than $0.50 are | ||
inserted, are dispensed in equal portions, at random and
| ||
without selection by the customer.
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(Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11.)
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Section 4. The Retailers' Occupation Tax Act is amended by | ||
changing Section 1 as follows:
| ||
(35 ILCS 120/1) (from Ch. 120, par. 440)
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Sec. 1. Definitions. "Sale at retail" means any transfer of | ||
the
ownership of or title to
tangible personal property to a | ||
purchaser, for the purpose of use or
consumption, and not for | ||
the purpose of resale in any form as tangible
personal property | ||
to the extent not first subjected to a use for which it
was | ||
purchased, for a valuable consideration: Provided that the | ||
property
purchased is deemed to be purchased for the purpose of | ||
resale, despite
first being used, to the extent to which it is | ||
resold as an ingredient of
an intentionally produced product or | ||
byproduct of manufacturing. For this
purpose, slag produced as | ||
an incident to manufacturing pig iron or steel
and sold is | ||
considered to be an intentionally produced byproduct of
| ||
manufacturing. Transactions whereby the possession of the | ||
property is
transferred but the seller retains the title as | ||
security for payment of the
selling price shall be deemed to be | ||
sales.
| ||
"Sale at retail" shall be construed to include any transfer | ||
of the
ownership of or title to tangible personal property to a | ||
purchaser, for use
or consumption by any other person to whom | ||
such purchaser may transfer the
tangible personal property | ||
without a valuable consideration, and to include
any transfer, | ||
whether made for or without a valuable consideration, for
| ||
resale in any form as tangible personal property unless made in | ||
compliance
with Section 2c of this Act.
| ||
Sales of tangible personal property, which property, to the | ||
extent not
first subjected to a use for which it was purchased, | ||
as an ingredient or
constituent, goes into and forms a part of | ||
tangible personal property
subsequently the subject of a "Sale | ||
at retail", are not sales at retail as
defined in this Act: | ||
Provided that the property purchased is deemed to be
purchased | ||
for the purpose of resale, despite first being used, to the
| ||
extent to which it is resold as an ingredient of an | ||
intentionally produced
product or byproduct of manufacturing.
| ||
"Sale at retail" shall be construed to include any Illinois | ||
florist's
sales transaction in which the purchase order is | ||
received in Illinois by a
florist and the sale is for use or | ||
consumption, but the Illinois florist
has a florist in another | ||
state deliver the property to the purchaser or the
purchaser's | ||
donee in such other state.
| ||
Nonreusable tangible personal property that is used by | ||
persons engaged in
the business of operating a restaurant, | ||
cafeteria, or drive-in is a sale for
resale when it is | ||
transferred to customers in the ordinary course of business
as | ||
part of the sale of food or beverages and is used to deliver, | ||
package, or
consume food or beverages, regardless of where | ||
consumption of the food or
beverages occurs. Examples of those | ||
items include, but are not limited to
nonreusable, paper and | ||
plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||
containers, utensils, straws, placemats, napkins, doggie bags, | ||
and
wrapping or packaging
materials that are transferred to | ||
customers as part of the sale of food or
beverages in the | ||
ordinary course of business.
| ||
The purchase, employment and transfer of such tangible | ||
personal property
as newsprint and ink for the primary purpose | ||
of conveying news (with or
without other information) is not a | ||
purchase, use or sale of tangible
personal property.
| ||
A person whose activities are organized and conducted | ||
primarily as a
not-for-profit service enterprise, and who | ||
engages in selling tangible
personal property at retail | ||
(whether to the public or merely to members and
their guests) | ||
is engaged in the business of selling tangible personal
| ||
property at retail with respect to such transactions, excepting | ||
only a
person organized and operated exclusively for | ||
charitable, religious or
educational purposes either (1), to | ||
the extent of sales by such person to
its members, students, | ||
patients or inmates of tangible personal property to
be used | ||
primarily for the purposes of such person, or (2), to the | ||
extent of
sales by such person of tangible personal property | ||
which is not sold or
offered for sale by persons organized for | ||
profit. The selling of school
books and school supplies by | ||
schools at retail to students is not
"primarily for the | ||
purposes of" the school which does such selling. The
provisions | ||
of this paragraph shall not apply to nor subject to taxation
| ||
occasional dinners, socials or similar activities of a person | ||
organized and
operated exclusively for charitable, religious | ||
or educational purposes,
whether or not such activities are | ||
open to the public.
| ||
A person who is the recipient of a grant or contract under | ||
Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||
serves meals to
participants in the federal Nutrition Program | ||
for the Elderly in return for
contributions established in | ||
amount by the individual participant pursuant
to a schedule of | ||
suggested fees as provided for in the federal Act is not
| ||
engaged in the business of selling tangible personal property | ||
at retail
with respect to such transactions.
| ||
"Purchaser" means anyone who, through a sale at retail, | ||
acquires the
ownership of or title to tangible personal | ||
property for a valuable
consideration.
| ||
"Reseller of motor fuel" means any person engaged in the | ||
business of selling
or delivering or transferring title of | ||
motor fuel to another person
other than for use or consumption.
| ||
No person shall act as a reseller of motor fuel within this | ||
State without
first being registered as a reseller pursuant to | ||
Section 2c or a retailer
pursuant to Section 2a.
| ||
"Selling price" or the "amount of sale" means the | ||
consideration for a
sale valued in money whether received in | ||
money or otherwise, including
cash, credits, property, other | ||
than as hereinafter provided, and services,
but not including | ||
the value of or credit given for traded-in tangible
personal | ||
property where the item that is traded-in is of like kind and
| ||
character as that which is being sold, and shall be determined | ||
without any
deduction on account of the cost of the property | ||
sold, the cost of
materials used, labor or service cost or any | ||
other expense whatsoever, but
does not include charges that are | ||
added to prices by sellers on account of
the seller's tax | ||
liability under this Act, or on account of the seller's
duty to | ||
collect, from the purchaser, the tax that is imposed by the Use | ||
Tax
Act, or, except as otherwise provided with respect to any | ||
cigarette tax imposed by a home rule unit, on account of the | ||
seller's tax liability under any local occupation tax | ||
administered by the Department, or, except as otherwise | ||
provided with respect to any cigarette tax imposed by a home | ||
rule unit on account of the seller's duty to collect, from the | ||
purchasers, the tax that is imposed under any local use tax | ||
administered by the Department.
Effective December 1, 1985, | ||
"selling price" shall include charges that
are added to prices | ||
by sellers on account of the seller's
tax liability under the | ||
Cigarette Tax Act, on account of the sellers'
duty to collect, | ||
from the purchaser, the tax imposed under the Cigarette
Use Tax | ||
Act, and on account of the seller's duty to collect, from the
| ||
purchaser, any cigarette tax imposed by a home rule unit.
| ||
Notwithstanding any law to the contrary, for any motor | ||
vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||
is sold on or after July 1, 2014 for the purpose of leasing the | ||
vehicle for a defined period that is longer than one year and | ||
(1) is a motor vehicle of the second division that: (A) is a | ||
self-contained motor vehicle designed or permanently converted | ||
to provide living quarters for recreational, camping, or travel | ||
use, with direct walk through access to the living quarters | ||
from the driver's seat; (B) is of the van configuration | ||
designed for the transportation of not less than 7 nor more | ||
than 16 passengers; or (C) has a gross vehicle weight rating of | ||
8,000 pounds or less or (2) is a motor vehicle of the first | ||
division, "selling price" or "amount of sale" means the | ||
consideration received by the lessor pursuant to the lease | ||
contract, including amounts due at lease signing and all | ||
monthly or other regular payments charged over the term of the | ||
lease. Also included in the selling price is any amount | ||
received by the lessor from the lessee for the leased vehicle | ||
that is not calculated at the time the lease is executed, | ||
including, but not limited to, excess mileage charges and | ||
charges for excess wear and tear. For sales that occur in | ||
Illinois, with respect to any amount received by the lessor | ||
from the lessee for the leased vehicle that is not calculated | ||
at the time the lease is executed, the lessor who purchased the | ||
motor vehicle does not incur the tax imposed by the Use Tax Act | ||
on those amounts, and the retailer who makes the retail sale of | ||
the motor vehicle to the lessor is not required to collect the | ||
tax imposed by the Use Tax Act or to pay the tax imposed by this | ||
Act on those amounts. However, the lessor who purchased the | ||
motor vehicle assumes the liability for reporting and paying | ||
the tax on those amounts directly to the Department in the same | ||
form (Illinois Retailers' Occupation Tax, and local retailers' | ||
occupation taxes, if applicable) in which the retailer would | ||
have reported and paid such tax if the retailer had accounted | ||
for the tax to the Department. For amounts received by the | ||
lessor from the lessee that are not calculated at the time the | ||
lease is executed, the lessor must file the return and pay the | ||
tax to the Department by the due date otherwise required by | ||
this Act for returns other than transaction returns. If the | ||
retailer is entitled under this Act to a discount for | ||
collecting and remitting the tax imposed under this Act to the | ||
Department with respect to the sale of the motor vehicle to the | ||
lessor, then the right to the discount provided in this Act | ||
shall be transferred to the lessor with respect to the tax paid | ||
by the lessor for any amount received by the lessor from the | ||
lessee for the leased vehicle that is not calculated at the | ||
time the lease is executed; provided that the discount is only | ||
allowed if the return is timely filed and for amounts timely | ||
paid. The "selling price" of a motor vehicle that is sold on or | ||
after July 1, 2014 for the purpose of leasing for a defined | ||
period of longer than one year shall not be reduced by the | ||
value of or credit given for traded-in tangible personal | ||
property owned by the lessor, nor shall it be reduced by the | ||
value of or credit given for traded-in tangible personal | ||
property owned by the lessee, regardless of whether the | ||
trade-in value thereof is assigned by the lessee to the lessor. | ||
In the case of a motor vehicle that is sold for the purpose of | ||
leasing for a defined period of longer than one year, the sale | ||
occurs at the time of the delivery of the vehicle, regardless | ||
of the due date of any lease payments. A lessor who incurs a | ||
Retailers' Occupation Tax liability on the sale of a motor | ||
vehicle coming off lease may not take a credit against that | ||
liability for the Use Tax the lessor paid upon the purchase of | ||
the motor vehicle (or for any tax the lessor paid with respect | ||
to any amount received by the lessor from the lessee for the | ||
leased vehicle that was not calculated at the time the lease | ||
was executed) if the selling price of the motor vehicle at the | ||
time of purchase was calculated using the definition of | ||
"selling price" as defined in this paragraph.
Notwithstanding | ||
any other provision of this Act to the contrary, lessors shall | ||
file all returns and make all payments required under this | ||
paragraph to the Department by electronic means in the manner | ||
and form as required by the Department. This paragraph does not | ||
apply to leases of motor vehicles for which, at the time the | ||
lease is entered into, the term of the lease is not a defined | ||
period, including leases with a defined initial period with the | ||
option to continue the lease on a month-to-month or other basis | ||
beyond the initial defined period. | ||
The phrase "like kind and character" shall be liberally | ||
construed
(including but not limited to any form of motor | ||
vehicle for any form of
motor vehicle, or any kind of farm or | ||
agricultural implement for any other
kind of farm or | ||
agricultural implement), while not including a kind of item
| ||
which, if sold at retail by that retailer, would be exempt from | ||
retailers'
occupation tax and use tax as an isolated or | ||
occasional sale.
| ||
"Gross receipts" from the sales of tangible personal | ||
property at retail
means the total selling price or the amount | ||
of such sales, as hereinbefore
defined. In the case of charge | ||
and time sales, the amount thereof shall be
included only as | ||
and when payments are received by the seller.
Receipts or other | ||
consideration derived by a seller from
the sale, transfer or | ||
assignment of accounts receivable to a wholly owned
subsidiary | ||
will not be deemed payments prior to the time the purchaser
| ||
makes payment on such accounts.
| ||
"Department" means the Department of Revenue.
| ||
"Person" means any natural individual, firm, partnership, | ||
association,
joint stock company, joint adventure, public or | ||
private corporation, limited
liability company, or a receiver, | ||
executor, trustee, guardian or other
representative appointed | ||
by order of any court.
| ||
The isolated or occasional sale of tangible personal | ||
property at retail
by a person who does not hold himself out as | ||
being engaged (or who does not
habitually engage) in selling | ||
such tangible personal property at retail, or
a sale through a | ||
bulk vending machine, does not constitute engaging in a
| ||
business of selling such tangible personal property at retail | ||
within the
meaning of this Act; provided that any person who is | ||
engaged in a business
which is not subject to the tax imposed | ||
by this Act because of involving
the sale of or a contract to | ||
sell real estate or a construction contract to
improve real | ||
estate or a construction contract to engineer, install, and
| ||
maintain an integrated system of products, but who, in the | ||
course of
conducting such business,
transfers tangible | ||
personal property to users or consumers in the finished
form in | ||
which it was purchased, and which does not become real estate | ||
or was
not engineered and installed, under any provision of a | ||
construction contract or
real estate sale or real estate sales | ||
agreement entered into with some other
person arising out of or | ||
because of such nontaxable business, is engaged in the
business | ||
of selling tangible personal property at retail to the extent | ||
of the
value of the tangible personal property so transferred. | ||
If, in such a
transaction, a separate charge is made for the | ||
tangible personal property so
transferred, the value of such | ||
property, for the purpose of this Act, shall be
the amount so | ||
separately charged, but not less than the cost of such property
| ||
to the transferor; if no separate charge is made, the value of | ||
such property,
for the purposes of this Act, is the cost to the | ||
transferor of such tangible
personal property. Construction | ||
contracts for the improvement of real estate
consisting of | ||
engineering, installation, and maintenance of voice, data, | ||
video,
security, and all telecommunication systems do not | ||
constitute engaging in a
business of selling tangible personal | ||
property at retail within the meaning of
this Act if they are | ||
sold at one specified contract price.
| ||
A person who holds himself or herself out as being engaged | ||
(or who habitually
engages) in selling tangible personal | ||
property at retail is a person
engaged in the business of | ||
selling tangible personal property at retail
hereunder with | ||
respect to such sales (and not primarily in a service
| ||
occupation) notwithstanding the fact that such person designs | ||
and produces
such tangible personal property on special order | ||
for the purchaser and in
such a way as to render the property | ||
of value only to such purchaser, if
such tangible personal | ||
property so produced on special order serves
substantially the | ||
same function as stock or standard items of tangible
personal | ||
property that are sold at retail.
| ||
Persons who engage in the business of transferring tangible | ||
personal
property upon the redemption of trading stamps are | ||
engaged in the business
of selling such property at retail and | ||
shall be liable for and shall pay
the tax imposed by this Act | ||
on the basis of the retail value of the
property transferred | ||
upon redemption of such stamps.
| ||
"Bulk vending machine" means a vending machine,
containing | ||
unsorted confections, nuts, toys, or other items designed
| ||
primarily to be used or played with by children
which, when a | ||
coin or coins of a denomination not larger than $0.50 are
| ||
inserted, are dispensed in equal portions, at random and
| ||
without selection by the customer.
| ||
(Source: P.A. 95-723, eff. 6-23-08.)
| ||
Section 5. The Property Tax Code is amended by changing | ||
Sections 20-5 and 20-20 as follows:
| ||
(35 ILCS 200/20-5)
| ||
Sec. 20-5. Mailing or e-mailing tax bill to owner. | ||
(a) Every township collector, and every
county collector in | ||
cases where there is no township collector, upon receiving
the | ||
tax book or books, shall prepare tax bills showing each | ||
installment of
property taxes assessed, which shall be filled | ||
out in accordance with Section
20-40. A copy of the bill shall | ||
be mailed by the collector, at least 30 days
prior to the date | ||
upon which unpaid taxes become delinquent, to the owner of
the | ||
property taxed or to the person in whose name the property is | ||
taxed. | ||
(b) The collector may send the bill via e-mail as provided | ||
in subsection (b) of Section 20-20. However, no bill shall be | ||
sent to a property owner or taxpayer via e-mail unless that | ||
owner or taxpayer shall have first made such a request to the | ||
collector in writing.
| ||
(Source: P.A. 86-957; 87-818; 88-455.)
| ||
(35 ILCS 200/20-20)
| ||
Sec. 20-20. Changes in address for mailing tax bill. | ||
(a) To insure that a person
requesting a change of the | ||
address to which a property tax bill is sent has a
legal | ||
interest in the property or authority to act on behalf of the | ||
owner of
the property, the county collector in every county | ||
with less than 3,000,000
inhabitants or less shall establish | ||
and enforce a procedure for requiring
identification or | ||
certification of the identity of taxpayers who request a
change | ||
in the address to which their tax bill is mailed. No change of | ||
address
shall be implemented unless the person requesting the | ||
change is the owner of
the property, a trustee or a person | ||
holding the power of attorney from the
owner or trustee of the | ||
property. However, if a property owner conveys a permanent | ||
change of address in writing to the United States Postal | ||
Service, then, on or after the effective date of that change of | ||
address, the county collector may mail a property tax bill to | ||
the property owner at his or her new address regardless of | ||
whether or not the owner notifies the collector of the address | ||
change.
| ||
(b) As an alternative to mailing a copy of the bill, the | ||
collector may send the tax bill via e-mail at the request of | ||
the taxpayer, subject to the provisions of subsection (b) of | ||
Section 20-5 of this Act. If the taxpayer makes such a request, | ||
then the taxpayer shall notify the collector of any change in | ||
his or her e-mail address as soon as possible after the address | ||
is changed. | ||
(Source: P.A. 97-1084, eff. 8-24-12.)
| ||