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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. This Act may be referred to as the Marketplace | ||||||||||||||||||||||||||
5 | Fairness Act. | ||||||||||||||||||||||||||
6 | Section 5. The Use Tax Act is amended by changing Section 2 | ||||||||||||||||||||||||||
7 | as follows:
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8 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
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9 | Sec. 2. Definitions. | ||||||||||||||||||||||||||
10 | "Use" means the exercise by any person of any right or | ||||||||||||||||||||||||||
11 | power over
tangible personal property incident to the ownership | ||||||||||||||||||||||||||
12 | of that property,
except that it does not include the sale of | ||||||||||||||||||||||||||
13 | such property in any form as
tangible personal property in the | ||||||||||||||||||||||||||
14 | regular course of business to the extent
that such property is | ||||||||||||||||||||||||||
15 | not first subjected to a use for which it was
purchased, and | ||||||||||||||||||||||||||
16 | does not include the use of such property by its owner for
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17 | demonstration purposes: Provided that the property purchased | ||||||||||||||||||||||||||
18 | is deemed to
be purchased for the purpose of resale, despite | ||||||||||||||||||||||||||
19 | first being used, to the
extent to which it is resold as an | ||||||||||||||||||||||||||
20 | ingredient of an intentionally produced
product or by-product | ||||||||||||||||||||||||||
21 | of manufacturing. "Use" does not mean the demonstration
use or | ||||||||||||||||||||||||||
22 | interim use of tangible personal property by a retailer before |
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1 | he sells
that tangible personal property. For watercraft or | ||||||
2 | aircraft, if the period of
demonstration use or interim use by | ||||||
3 | the retailer exceeds 18 months,
the retailer
shall pay on the | ||||||
4 | retailers' original cost price the tax imposed by this Act,
and | ||||||
5 | no credit for that tax is permitted if the watercraft or | ||||||
6 | aircraft is
subsequently sold by the retailer. "Use" does not | ||||||
7 | mean the physical
incorporation of tangible personal property, | ||||||
8 | to the extent not first subjected
to a use for which it was | ||||||
9 | purchased, as an ingredient or constituent, into
other tangible | ||||||
10 | personal property (a) which is sold in the regular course of
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11 | business or (b) which the person incorporating such ingredient | ||||||
12 | or constituent
therein has undertaken at the time of such | ||||||
13 | purchase to cause to be transported
in interstate commerce to | ||||||
14 | destinations outside the State of Illinois: Provided
that the | ||||||
15 | property purchased is deemed to be purchased for the purpose of
| ||||||
16 | resale, despite first being used, to the extent to which it is | ||||||
17 | resold as an
ingredient of an intentionally produced product or | ||||||
18 | by-product of manufacturing.
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19 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
20 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
21 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
22 | with an inboard motor.
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23 | "Purchase at retail" means the acquisition of the ownership | ||||||
24 | of or title
to tangible personal property through a sale at | ||||||
25 | retail.
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26 | "Purchaser" means anyone who, through a sale at retail, |
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1 | acquires the
ownership of tangible personal property for a | ||||||
2 | valuable consideration.
| ||||||
3 | "Sale at retail" means any transfer of the ownership of or | ||||||
4 | title to
tangible personal property to a purchaser, for the | ||||||
5 | purpose of use, and not
for the purpose of resale in any form | ||||||
6 | as tangible personal property to the
extent not first subjected | ||||||
7 | to a use for which it was purchased, for a
valuable | ||||||
8 | consideration: Provided that the property purchased is deemed | ||||||
9 | to
be purchased for the purpose of resale, despite first being | ||||||
10 | used, to the
extent to which it is resold as an ingredient of | ||||||
11 | an intentionally produced
product or by-product of | ||||||
12 | manufacturing. For this purpose, slag produced as
an incident | ||||||
13 | to manufacturing pig iron or steel and sold is considered to be
| ||||||
14 | an intentionally produced by-product of manufacturing. "Sale | ||||||
15 | at retail"
includes any such transfer made for resale unless | ||||||
16 | made in compliance with
Section 2c of the Retailers' Occupation | ||||||
17 | Tax Act, as incorporated by
reference into Section 12 of this | ||||||
18 | Act. Transactions whereby the possession
of the property is | ||||||
19 | transferred but the seller retains the title as security
for | ||||||
20 | payment of the selling price are sales.
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21 | "Sale at retail" shall also be construed to include any | ||||||
22 | Illinois
florist's sales transaction in which the purchase | ||||||
23 | order is received in
Illinois by a florist and the sale is for | ||||||
24 | use or consumption, but the
Illinois florist has a florist in | ||||||
25 | another state deliver the property to the
purchaser or the | ||||||
26 | purchaser's donee in such other state.
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1 | Nonreusable tangible personal property that is used by | ||||||
2 | persons engaged in
the business of operating a restaurant, | ||||||
3 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
4 | transferred to customers in the ordinary course of business
as | ||||||
5 | part of the sale of food or beverages and is used to deliver, | ||||||
6 | package, or
consume food or beverages, regardless of where | ||||||
7 | consumption of the food or
beverages occurs. Examples of those | ||||||
8 | items include, but are not limited to
nonreusable, paper and | ||||||
9 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
10 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
11 | and
wrapping or packaging
materials that are transferred to | ||||||
12 | customers as part of the sale of food or
beverages in the | ||||||
13 | ordinary course of business.
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14 | The purchase, employment and transfer of such tangible | ||||||
15 | personal property
as newsprint and ink for the primary purpose | ||||||
16 | of conveying news (with or
without other information) is not a | ||||||
17 | purchase, use or sale of tangible
personal property.
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18 | "Selling price" means the consideration for a sale valued | ||||||
19 | in money
whether received in money or otherwise, including | ||||||
20 | cash, credits, property
other than as hereinafter provided, and | ||||||
21 | services, but not including the
value of or credit given for | ||||||
22 | traded-in tangible personal property where the
item that is | ||||||
23 | traded-in is of like kind and character as that which is being
| ||||||
24 | sold, and shall be determined without any deduction on account | ||||||
25 | of the cost
of the property sold, the cost of materials used, | ||||||
26 | labor or service cost or
any other expense whatsoever, but does |
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| |||||||
1 | not include interest or finance
charges which appear as | ||||||
2 | separate items on the bill of sale or sales
contract nor | ||||||
3 | charges that are added to prices by sellers on account of the
| ||||||
4 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
5 | Act", or on
account of the seller's duty to collect, from the | ||||||
6 | purchaser, the tax that
is imposed by this Act, or, except as | ||||||
7 | otherwise provided with respect to any cigarette tax imposed by | ||||||
8 | a home rule unit, on account of the seller's tax liability | ||||||
9 | under any local occupation tax administered by the Department, | ||||||
10 | or, except as otherwise provided with respect to any cigarette | ||||||
11 | tax imposed by a home rule unit on account of the seller's duty | ||||||
12 | to collect, from the purchasers, the tax that is imposed under | ||||||
13 | any local use tax administered by the Department. Effective | ||||||
14 | December 1, 1985, "selling price"
shall include charges that | ||||||
15 | are added to prices by sellers on account of the
seller's tax | ||||||
16 | liability under the Cigarette Tax Act, on account of the | ||||||
17 | seller's
duty to collect, from the purchaser, the tax imposed | ||||||
18 | under the Cigarette Use
Tax Act, and on account of the seller's | ||||||
19 | duty to collect, from the purchaser,
any cigarette tax imposed | ||||||
20 | by a home rule unit.
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21 | Notwithstanding any law to the contrary, for any motor | ||||||
22 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
23 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
24 | the vehicle for a defined period that is longer than one year | ||||||
25 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
26 | a self-contained motor vehicle designed or permanently |
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1 | converted to provide living quarters for recreational, | ||||||
2 | camping, or travel use, with direct walk through access to the | ||||||
3 | living quarters from the driver's seat; (B) is of the van | ||||||
4 | configuration designed for the transportation of not less than | ||||||
5 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
6 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
7 | of the first division, "selling price" or "amount of sale" | ||||||
8 | means the consideration received by the lessor pursuant to the | ||||||
9 | lease contract, including amounts due at lease signing and all | ||||||
10 | monthly or other regular payments charged over the term of the | ||||||
11 | lease. Also included in the selling price is any amount | ||||||
12 | received by the lessor from the lessee for the leased vehicle | ||||||
13 | that is not calculated at the time the lease is executed, | ||||||
14 | including, but not limited to, excess mileage charges and | ||||||
15 | charges for excess wear and tear. For sales that occur in | ||||||
16 | Illinois, with respect to any amount received by the lessor | ||||||
17 | from the lessee for the leased vehicle that is not calculated | ||||||
18 | at the time the lease is executed, the lessor who purchased the | ||||||
19 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
20 | on those amounts, and the retailer who makes the retail sale of | ||||||
21 | the motor vehicle to the lessor is not required to collect the | ||||||
22 | tax imposed by this Act or to pay the tax imposed by the | ||||||
23 | Retailers' Occupation Tax Act on those amounts. However, the | ||||||
24 | lessor who purchased the motor vehicle assumes the liability | ||||||
25 | for reporting and paying the tax on those amounts directly to | ||||||
26 | the Department in the same form (Illinois Retailers' Occupation |
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1 | Tax, and local retailers' occupation taxes, if applicable) in | ||||||
2 | which the retailer would have reported and paid such tax if the | ||||||
3 | retailer had accounted for the tax to the Department. For | ||||||
4 | amounts received by the lessor from the lessee that are not | ||||||
5 | calculated at the time the lease is executed, the lessor must | ||||||
6 | file the return and pay the tax to the Department by the due | ||||||
7 | date otherwise required by this Act for returns other than | ||||||
8 | transaction returns. If the retailer is entitled under this Act | ||||||
9 | to a discount for collecting and remitting the tax imposed | ||||||
10 | under this Act to the Department with respect to the sale of | ||||||
11 | the motor vehicle to the lessor, then the right to the discount | ||||||
12 | provided in this Act shall be transferred to the lessor with | ||||||
13 | respect to the tax paid by the lessor for any amount received | ||||||
14 | by the lessor from the lessee for the leased vehicle that is | ||||||
15 | not calculated at the time the lease is executed; provided that | ||||||
16 | the discount is only allowed if the return is timely filed and | ||||||
17 | for amounts timely paid. The "selling price" of a motor vehicle | ||||||
18 | that is sold on or after January 1, 2015 for the purpose of | ||||||
19 | leasing for a defined period of longer than one year shall not | ||||||
20 | be reduced by the value of or credit given for traded-in | ||||||
21 | tangible personal property owned by the lessor, nor shall it be | ||||||
22 | reduced by the value of or credit given for traded-in tangible | ||||||
23 | personal property owned by the lessee, regardless of whether | ||||||
24 | the trade-in value thereof is assigned by the lessee to the | ||||||
25 | lessor. In the case of a motor vehicle that is sold for the | ||||||
26 | purpose of leasing for a defined period of longer than one |
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| |||||||
1 | year, the sale occurs at the time of the delivery of the | ||||||
2 | vehicle, regardless of the due date of any lease payments. A | ||||||
3 | lessor who incurs a Retailers' Occupation Tax liability on the | ||||||
4 | sale of a motor vehicle coming off lease may not take a credit | ||||||
5 | against that liability for the Use Tax the lessor paid upon the | ||||||
6 | purchase of the motor vehicle (or for any tax the lessor paid | ||||||
7 | with respect to any amount received by the lessor from the | ||||||
8 | lessee for the leased vehicle that was not calculated at the | ||||||
9 | time the lease was executed) if the selling price of the motor | ||||||
10 | vehicle at the time of purchase was calculated using the | ||||||
11 | definition of "selling price" as defined in this paragraph. | ||||||
12 | Notwithstanding any other provision of this Act to the | ||||||
13 | contrary, lessors shall file all returns and make all payments | ||||||
14 | required under this paragraph to the Department by electronic | ||||||
15 | means in the manner and form as required by the Department. | ||||||
16 | This paragraph does not apply to leases of motor vehicles for | ||||||
17 | which, at the time the lease is entered into, the term of the | ||||||
18 | lease is not a defined period, including leases with a defined | ||||||
19 | initial period with the option to continue the lease on a | ||||||
20 | month-to-month or other basis beyond the initial defined | ||||||
21 | period. | ||||||
22 | The phrase "like kind and character" shall be liberally | ||||||
23 | construed
(including but not limited to any form of motor | ||||||
24 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
25 | agricultural implement for any other
kind of farm or | ||||||
26 | agricultural implement), while not including a kind of item
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1 | which, if sold at retail by that retailer, would be exempt from | ||||||
2 | retailers'
occupation tax and use tax as an isolated or | ||||||
3 | occasional sale.
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4 | "Department" means the Department of Revenue.
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5 | "Person" means any natural individual, firm, partnership, | ||||||
6 | association,
joint stock company, joint adventure, public or | ||||||
7 | private corporation, limited
liability company, or a
receiver, | ||||||
8 | executor, trustee, guardian or other representative appointed
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9 | by order of any court.
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10 | "Retailer" means and includes every person engaged in the | ||||||
11 | business of
making sales at retail as defined in this Section.
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12 | A person who holds himself or herself out as being engaged | ||||||
13 | (or who habitually
engages) in selling tangible personal | ||||||
14 | property at retail is a retailer
hereunder with respect to such | ||||||
15 | sales (and not primarily in a service
occupation) | ||||||
16 | notwithstanding the fact that such person designs and produces
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17 | such tangible personal property on special order for the | ||||||
18 | purchaser and in
such a way as to render the property of value | ||||||
19 | only to such purchaser, if
such tangible personal property so | ||||||
20 | produced on special order serves
substantially the same | ||||||
21 | function as stock or standard items of tangible
personal | ||||||
22 | property that are sold at retail.
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23 | A person whose activities are organized and conducted | ||||||
24 | primarily as a
not-for-profit service enterprise, and who | ||||||
25 | engages in selling tangible
personal property at retail | ||||||
26 | (whether to the public or merely to members and
their guests) |
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1 | is a retailer with respect to such transactions, excepting
only | ||||||
2 | a person organized and operated exclusively for charitable, | ||||||
3 | religious
or educational purposes either (1), to the extent of | ||||||
4 | sales by such person
to its members, students, patients or | ||||||
5 | inmates of tangible personal property
to be used primarily for | ||||||
6 | the purposes of such person, or (2), to the extent
of sales by | ||||||
7 | such person of tangible personal property which is not sold or
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8 | offered for sale by persons organized for profit. The selling | ||||||
9 | of school
books and school supplies by schools at retail to | ||||||
10 | students is not
"primarily for the purposes of" the school | ||||||
11 | which does such selling. This
paragraph does not apply to nor | ||||||
12 | subject to taxation occasional dinners,
social or similar | ||||||
13 | activities of a person organized and operated exclusively
for | ||||||
14 | charitable, religious or educational purposes, whether or not | ||||||
15 | such
activities are open to the public.
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16 | A person who is the recipient of a grant or contract under | ||||||
17 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
18 | serves meals to
participants in the federal Nutrition Program | ||||||
19 | for the Elderly in return for
contributions established in | ||||||
20 | amount by the individual participant pursuant
to a schedule of | ||||||
21 | suggested fees as provided for in the federal Act is not a
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22 | retailer under this Act with respect to such transactions.
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23 | Persons who engage in the business of transferring tangible | ||||||
24 | personal
property upon the redemption of trading stamps are | ||||||
25 | retailers hereunder when
engaged in such business.
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26 | The isolated or occasional sale of tangible personal |
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1 | property at retail
by a person who does not hold himself out as | ||||||
2 | being engaged (or who does not
habitually engage) in selling | ||||||
3 | such tangible personal property at retail or
a sale through a | ||||||
4 | bulk vending machine does not make such person a retailer
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5 | hereunder. However, any person who is engaged in a business | ||||||
6 | which is not
subject to the tax imposed by the "Retailers' | ||||||
7 | Occupation Tax Act" because
of involving the sale of or a | ||||||
8 | contract to sell real estate or a
construction contract to | ||||||
9 | improve real estate, but who, in the course of
conducting such | ||||||
10 | business, transfers tangible personal property to users or
| ||||||
11 | consumers in the finished form in which it was purchased, and | ||||||
12 | which does
not become real estate, under any provision of a | ||||||
13 | construction contract or
real estate sale or real estate sales | ||||||
14 | agreement entered into with some
other person arising out of or | ||||||
15 | because of such nontaxable business, is a
retailer to the | ||||||
16 | extent of the value of the tangible personal property so
| ||||||
17 | transferred. If, in such transaction, a separate charge is made | ||||||
18 | for the
tangible personal property so transferred, the value of | ||||||
19 | such property, for
the purposes of this Act, is the amount so | ||||||
20 | separately charged, but not less
than the cost of such property | ||||||
21 | to the transferor; if no separate charge is
made, the value of | ||||||
22 | such property, for the purposes of this Act, is the cost
to the | ||||||
23 | transferor of such tangible personal property.
| ||||||
24 | "Retailer maintaining a place of business in this State", | ||||||
25 | or any like
term, means and includes any of the following | ||||||
26 | retailers:
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1 | (1) 1. A retailer having or maintaining within this | ||||||
2 | State, directly or by
a subsidiary, an office, distribution | ||||||
3 | house, sales house, warehouse or other
place of business, | ||||||
4 | or any agent or other representative operating within this
| ||||||
5 | State under the authority of the retailer or its | ||||||
6 | subsidiary, irrespective of
whether such place of business | ||||||
7 | or agent or other representative is located here
| ||||||
8 | permanently or temporarily, or whether such retailer or | ||||||
9 | subsidiary is licensed
to do business in this State. | ||||||
10 | However, the ownership of property that is
located at the | ||||||
11 | premises of a printer with which the retailer has | ||||||
12 | contracted for
printing and that consists of the final | ||||||
13 | printed product, property that becomes
a part of the final | ||||||
14 | printed product, or copy from which the printed product is
| ||||||
15 | produced shall not result in the retailer being deemed to | ||||||
16 | have or maintain an
office, distribution house, sales | ||||||
17 | house, warehouse, or other place of business
within this | ||||||
18 | State. | ||||||
19 | (1.1) 1.1. A retailer having a contract with a person | ||||||
20 | located in this State under which the person, for a | ||||||
21 | commission or other consideration based upon the sale of | ||||||
22 | tangible personal property by the retailer, directly or | ||||||
23 | indirectly refers potential customers to the retailer by | ||||||
24 | providing to the potential customers a promotional code or | ||||||
25 | other mechanism that allows the retailer to track purchases | ||||||
26 | referred by such persons. Examples of mechanisms that allow |
| |||||||
| |||||||
1 | the retailer to track purchases referred by such persons | ||||||
2 | include but are not limited to the use of a link on the | ||||||
3 | person's Internet website, promotional codes distributed | ||||||
4 | through the person's hand-delivered or mailed material, | ||||||
5 | and promotional codes distributed by the person through | ||||||
6 | radio or other broadcast media. The provisions of this | ||||||
7 | paragraph (1.1) 1.1 shall apply only if the cumulative | ||||||
8 | gross receipts from sales of tangible personal property by | ||||||
9 | the retailer to customers who are referred to the retailer | ||||||
10 | by all persons in this State under such contracts exceed | ||||||
11 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
12 | the last day of March, June, September, and December. A | ||||||
13 | retailer meeting the requirements of this paragraph (1.1) | ||||||
14 | 1.1 shall be presumed to be maintaining a place of business | ||||||
15 | in this State but may rebut this presumption by submitting | ||||||
16 | proof that the referrals or other activities pursued within | ||||||
17 | this State by such persons were not sufficient to meet the | ||||||
18 | nexus standards of the United States Constitution during | ||||||
19 | the preceding 4 quarterly periods. | ||||||
20 | (1.2) 1.2. Beginning July 1, 2011, a retailer having a | ||||||
21 | contract with a person located in this State under which: | ||||||
22 | (A) A. the retailer sells the same or substantially | ||||||
23 | similar line of products as the person located in this | ||||||
24 | State and does so using an identical or substantially | ||||||
25 | similar name, trade name, or trademark as the person | ||||||
26 | located in this State; and |
| |||||||
| |||||||
1 | (B) B. the retailer provides a commission or other | ||||||
2 | consideration to the person located in this State based | ||||||
3 | upon the sale of tangible personal property by the | ||||||
4 | retailer. | ||||||
5 | The provisions of this paragraph (1.2) 1.2 shall apply only | ||||||
6 | if the cumulative gross receipts from sales of tangible | ||||||
7 | personal property by the retailer to customers in this | ||||||
8 | State under all such contracts exceed $10,000 during the | ||||||
9 | preceding 4 quarterly periods ending on the last day of | ||||||
10 | March, June, September, and December.
| ||||||
11 | (2) 2. A retailer soliciting orders for tangible | ||||||
12 | personal property by
means of a telecommunication or | ||||||
13 | television shopping system (which utilizes toll
free | ||||||
14 | numbers) which is intended by the retailer to be broadcast | ||||||
15 | by cable
television or other means of broadcasting, to | ||||||
16 | consumers located in this State.
| ||||||
17 | (3) 3. A retailer, pursuant to a contract with a | ||||||
18 | broadcaster or publisher
located in this State, soliciting | ||||||
19 | orders for tangible personal property by
means of | ||||||
20 | advertising which is disseminated primarily to consumers | ||||||
21 | located in
this State and only secondarily to bordering | ||||||
22 | jurisdictions.
| ||||||
23 | (4) 4. A retailer soliciting orders for tangible | ||||||
24 | personal property by mail
if the solicitations are | ||||||
25 | substantial and recurring and if the retailer benefits
from | ||||||
26 | any banking, financing, debt collection, |
| |||||||
| |||||||
1 | telecommunication, or marketing
activities occurring in | ||||||
2 | this State or benefits from the location in this State
of | ||||||
3 | authorized installation, servicing, or repair facilities.
| ||||||
4 | (5) 5. A retailer that is owned or controlled by the | ||||||
5 | same interests that own
or control any retailer engaging in | ||||||
6 | business in the same or similar line of
business in this | ||||||
7 | State.
| ||||||
8 | (6) 6. A retailer having a franchisee or licensee | ||||||
9 | operating under its trade
name if the franchisee or | ||||||
10 | licensee is required to collect the tax under this
Section.
| ||||||
11 | (7) 7. A retailer, pursuant to a contract with a cable | ||||||
12 | television operator
located in this State, soliciting | ||||||
13 | orders for tangible personal property by
means of | ||||||
14 | advertising which is transmitted or distributed over a | ||||||
15 | cable
television system in this State.
| ||||||
16 | (8) 8. A retailer engaging in activities in Illinois, | ||||||
17 | which activities in
the state in which the retail business | ||||||
18 | engaging in such activities is located
would constitute | ||||||
19 | maintaining a place of business in that state.
| ||||||
20 | (9) Beginning January 1, 2019, a retailer making sales | ||||||
21 | of tangible personal property to purchasers in Illinois | ||||||
22 | from outside of Illinois if: | ||||||
23 | (A) the cumulative gross receipts from sales of | ||||||
24 | tangible personal property to purchasers in Illinois | ||||||
25 | are $150,000 or more; or | ||||||
26 | (B) the retailer enters into 200 or more separate |
| |||||||
| |||||||
1 | transactions for the sale of tangible personal | ||||||
2 | property to purchasers in Illinois. | ||||||
3 | The retailer shall determine on a quarterly basis, | ||||||
4 | ending on the last day of March, June, September, and | ||||||
5 | December, whether he or she meets the criteria of either | ||||||
6 | (A) or (B) of this paragraph (9) for the preceding 12-month | ||||||
7 | period. If the retailer meets the criteria of either (A) or | ||||||
8 | (B) for a 12-month period, he or she is considered a | ||||||
9 | retailer maintaining a place of business in this State and | ||||||
10 | is required to collect and remit the tax imposed under this | ||||||
11 | Act and file returns for one year. At the end of that | ||||||
12 | one-year period, the retailer shall determine whether the | ||||||
13 | retailer met the criteria of either (A) or (B) during the | ||||||
14 | preceding 12-month period. If the retailer met the criteria | ||||||
15 | in either (A) or (B) for the preceding 12-month period, he | ||||||
16 | or she is considered a retailer maintaining a place of | ||||||
17 | business in this State and is required to collect and remit | ||||||
18 | the tax imposed under this Act and file returns for the | ||||||
19 | subsequent year. If at the end of a one-year period a | ||||||
20 | retailer that was required to collect and remit the tax | ||||||
21 | imposed under this Act determines that he or she did not | ||||||
22 | meet the criteria in either (A) or (B) during the preceding | ||||||
23 | 12-month period, the retailer shall subsequently determine | ||||||
24 | on a quarterly basis, ending on the last day of March, | ||||||
25 | June, September, and December, whether he or she meets the | ||||||
26 | criteria of either (A) or (B) for the preceding 12-month |
| |||||||
| |||||||
1 | period. | ||||||
2 | "Bulk vending machine" means a vending machine,
containing | ||||||
3 | unsorted confections, nuts, toys, or other items designed
| ||||||
4 | primarily to be used or played with by children
which, when a | ||||||
5 | coin or coins of a denomination not larger than $0.50 are | ||||||
6 | inserted, are dispensed in equal portions, at random and
| ||||||
7 | without selection by the customer.
| ||||||
8 | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14; | ||||||
9 | 98-1089, eff. 1-1-15; 99-78, eff. 7-20-15.)
| ||||||
10 | Section 10. The Service Use Tax Act is amended by changing | ||||||
11 | Section 2 as follows:
| ||||||
12 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
13 | Sec. 2. Definitions. In this Act: | ||||||
14 | "Use" means the exercise by any person of any right or | ||||||
15 | power
over tangible personal property incident to the ownership | ||||||
16 | of that
property, but does not include the sale or use for | ||||||
17 | demonstration by him
of that property in any form as tangible | ||||||
18 | personal property in the
regular course of business.
"Use" does | ||||||
19 | not mean the interim
use of
tangible personal property nor the | ||||||
20 | physical incorporation of tangible
personal property, as an | ||||||
21 | ingredient or constituent, into other tangible
personal | ||||||
22 | property, (a) which is sold in the regular course of business
| ||||||
23 | or (b) which the person incorporating such ingredient or | ||||||
24 | constituent
therein has undertaken at the time of such purchase |
| |||||||
| |||||||
1 | to cause to be
transported in interstate commerce to | ||||||
2 | destinations outside the State of
Illinois.
| ||||||
3 | "Purchased from a serviceman" means the acquisition of the | ||||||
4 | ownership
of, or title to, tangible personal property through a | ||||||
5 | sale of service.
| ||||||
6 | "Purchaser" means any person who, through a sale of | ||||||
7 | service, acquires
the ownership of, or title to, any tangible | ||||||
8 | personal property.
| ||||||
9 | "Cost price" means the consideration paid by the serviceman | ||||||
10 | for a
purchase valued in money, whether paid in money or | ||||||
11 | otherwise, including
cash, credits and services, and shall be | ||||||
12 | determined without any
deduction on account of the supplier's | ||||||
13 | cost of the property sold or on
account of any other expense | ||||||
14 | incurred by the supplier. When a serviceman
contracts out part | ||||||
15 | or all of the services required in his sale of service,
it | ||||||
16 | shall be presumed that the cost price to the serviceman of the | ||||||
17 | property
transferred to him or her by his or her subcontractor | ||||||
18 | is equal to 50% of
the subcontractor's charges to the | ||||||
19 | serviceman in the absence of proof of
the consideration paid by | ||||||
20 | the subcontractor for the purchase of such property.
| ||||||
21 | "Selling price" means the consideration for a sale valued | ||||||
22 | in money
whether received in money or otherwise, including | ||||||
23 | cash, credits and
service, and shall be determined without any | ||||||
24 | deduction on account of the
serviceman's cost of the property | ||||||
25 | sold, the cost of materials used,
labor or service cost or any | ||||||
26 | other expense whatsoever, but does not
include interest or |
| |||||||
| |||||||
1 | finance charges which appear as separate items on
the bill of | ||||||
2 | sale or sales contract nor charges that are added to prices
by | ||||||
3 | sellers on account of the seller's duty to collect, from the
| ||||||
4 | purchaser, the tax that is imposed by this Act.
| ||||||
5 | "Department" means the Department of Revenue.
| ||||||
6 | "Person" means any natural individual, firm, partnership,
| ||||||
7 | association, joint stock company, joint venture, public or | ||||||
8 | private
corporation, limited liability company, and any | ||||||
9 | receiver, executor, trustee,
guardian or other representative | ||||||
10 | appointed by order of any court.
| ||||||
11 | "Sale of service" means any transaction except:
| ||||||
12 | (1) a retail sale of tangible personal property taxable | ||||||
13 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
14 | Tax Act.
| ||||||
15 | (2) a sale of tangible personal property for the | ||||||
16 | purpose of resale
made in compliance with Section 2c of the | ||||||
17 | Retailers' Occupation Tax Act.
| ||||||
18 | (3) except as hereinafter provided, a sale or transfer | ||||||
19 | of tangible
personal property as an incident to the | ||||||
20 | rendering of service for or by
any governmental body, or | ||||||
21 | for or by any corporation, society,
association, | ||||||
22 | foundation or institution organized and operated
| ||||||
23 | exclusively for charitable, religious or educational | ||||||
24 | purposes or any
not-for-profit corporation, society, | ||||||
25 | association, foundation,
institution or organization which | ||||||
26 | has no compensated officers or
employees and which is |
| |||||||
| |||||||
1 | organized and operated primarily for the
recreation of | ||||||
2 | persons 55 years of age or older. A limited liability | ||||||
3 | company
may qualify for the exemption under this paragraph | ||||||
4 | only if the limited
liability company is organized and | ||||||
5 | operated exclusively for educational
purposes.
| ||||||
6 | (4) (blank).
| ||||||
7 | (4a) a sale or transfer of tangible personal
property | ||||||
8 | as an incident
to the rendering of service for owners, | ||||||
9 | lessors, or shippers of tangible
personal property which is | ||||||
10 | utilized by interstate carriers for hire for
use as rolling | ||||||
11 | stock moving in interstate commerce so long as so used by
| ||||||
12 | interstate carriers for hire, and equipment operated by a
| ||||||
13 | telecommunications provider, licensed as a common carrier | ||||||
14 | by the Federal
Communications Commission, which is | ||||||
15 | permanently installed in or affixed to
aircraft moving in | ||||||
16 | interstate commerce.
| ||||||
17 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
18 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
19 | division with a gross vehicle weight in excess of 8,000 | ||||||
20 | pounds as an
incident to the rendering of service if that | ||||||
21 | motor
vehicle is subject
to the commercial distribution fee | ||||||
22 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
23 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
24 | use in this State of motor vehicles of the second division: | ||||||
25 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
26 | pounds; (ii) that are subject to the commercial |
| |||||||
| |||||||
1 | distribution fee imposed under Section 3-815.1 of the | ||||||
2 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
3 | for commercial purposes. Through June 30, 2005, this
| ||||||
4 | exemption applies to repair and replacement parts added | ||||||
5 | after the
initial
purchase of such a motor vehicle if that | ||||||
6 | motor vehicle is used in a manner that
would
qualify for | ||||||
7 | the rolling stock exemption otherwise provided for in this | ||||||
8 | Act. For purposes of this paragraph, "used for commercial | ||||||
9 | purposes" means the transportation of persons or property | ||||||
10 | in furtherance of any commercial or industrial enterprise | ||||||
11 | whether for-hire or not.
| ||||||
12 | (5) a sale or transfer of machinery and equipment used | ||||||
13 | primarily in the
process of the manufacturing or | ||||||
14 | assembling, either in an existing, an expanded
or a new | ||||||
15 | manufacturing facility, of tangible personal property for | ||||||
16 | wholesale or
retail sale or lease, whether such sale or | ||||||
17 | lease is made directly by the
manufacturer or by some other | ||||||
18 | person, whether the materials used in the process
are owned | ||||||
19 | by the manufacturer or some other person, or whether such | ||||||
20 | sale or
lease is made apart from or as an incident to the | ||||||
21 | seller's engaging in a
service occupation and the | ||||||
22 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
23 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
24 | exemption provided by this paragraph (5) does not include | ||||||
25 | machinery and equipment used in (i) the generation of | ||||||
26 | electricity for wholesale or retail sale; (ii) the |
| |||||||
| |||||||
1 | generation or treatment of natural or artificial gas for | ||||||
2 | wholesale or retail sale that is delivered to customers | ||||||
3 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
4 | of water for wholesale or retail sale that is delivered to | ||||||
5 | customers through pipes, pipelines, or mains. The | ||||||
6 | provisions of Public Act 98-583 this amendatory Act of the | ||||||
7 | 98th General Assembly are declaratory of existing law as to | ||||||
8 | the meaning and scope of this exemption. The exemption | ||||||
9 | under this paragraph (5) is exempt from the provisions of | ||||||
10 | Section 3-75.
| ||||||
11 | (5a) the repairing, reconditioning or remodeling, for | ||||||
12 | a
common carrier by rail, of tangible personal property | ||||||
13 | which belongs to such
carrier for hire, and as to which | ||||||
14 | such carrier receives the physical possession
of the | ||||||
15 | repaired, reconditioned or remodeled item of tangible | ||||||
16 | personal property
in Illinois, and which such carrier | ||||||
17 | transports, or shares with another common
carrier in the | ||||||
18 | transportation of such property, out of Illinois on a | ||||||
19 | standard
uniform bill of lading showing the person who | ||||||
20 | repaired, reconditioned or
remodeled the property to a | ||||||
21 | destination outside Illinois, for use outside
Illinois.
| ||||||
22 | (5b) a sale or transfer of tangible personal property | ||||||
23 | which is produced by
the seller thereof on special order in | ||||||
24 | such a way as to have made the
applicable tax the Service | ||||||
25 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
26 | Retailers' Occupation Tax or the Use Tax, for an interstate |
| |||||||
| |||||||
1 | carrier by rail
which receives the physical possession of | ||||||
2 | such property in Illinois, and which
transports such | ||||||
3 | property, or shares with another common carrier in the
| ||||||
4 | transportation of such 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 such
property to a | ||||||
7 | destination outside Illinois, for use outside Illinois.
| ||||||
8 | (6) until July 1, 2003, a sale or transfer of | ||||||
9 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
10 | and assembled or installed by the retailer, which
machinery | ||||||
11 | and equipment is certified by the user to be used only for | ||||||
12 | the
production of ethyl alcohol that will be used for | ||||||
13 | consumption as motor fuel
or as a component of motor fuel | ||||||
14 | for the personal use of such user and not
subject to sale | ||||||
15 | or resale.
| ||||||
16 | (7) at the election of any serviceman not required to | ||||||
17 | be
otherwise registered as a retailer under Section 2a of | ||||||
18 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
19 | year sales
of service in which the aggregate annual cost | ||||||
20 | price of tangible
personal property transferred as an | ||||||
21 | incident to the sales of service is
less than 35%, or 75% | ||||||
22 | in the case of servicemen transferring prescription
drugs | ||||||
23 | or servicemen engaged in graphic arts production, of the | ||||||
24 | aggregate
annual total gross receipts from all sales of | ||||||
25 | service. The purchase of
such tangible personal property by | ||||||
26 | the serviceman shall be subject to tax
under the Retailers' |
| |||||||
| |||||||
1 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
2 | primary serviceman who has made the election described in | ||||||
3 | this paragraph
subcontracts service work to a secondary | ||||||
4 | serviceman who has also made the
election described in this | ||||||
5 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
6 | liability if the secondary serviceman (i) has paid or will | ||||||
7 | pay
Use
Tax on his or her cost price of any tangible | ||||||
8 | personal property transferred
to the primary serviceman | ||||||
9 | and (ii) certifies that fact in writing to the
primary
| ||||||
10 | serviceman.
| ||||||
11 | Tangible personal property transferred incident to the | ||||||
12 | completion of a
maintenance agreement is exempt from the tax | ||||||
13 | imposed pursuant to this Act.
| ||||||
14 | Exemption (5) also includes machinery and equipment used in | ||||||
15 | the general
maintenance or repair of such exempt machinery and | ||||||
16 | equipment or for in-house
manufacture of exempt machinery and | ||||||
17 | equipment. On and after July 1, 2017, exemption (5) also
| ||||||
18 | includes graphic arts machinery and equipment, as
defined in | ||||||
19 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
20 | exemption does not include machinery and equipment used in (i) | ||||||
21 | the generation of electricity for wholesale or retail sale; | ||||||
22 | (ii) the generation or treatment of natural or artificial gas | ||||||
23 | for wholesale or retail sale that is delivered to customers | ||||||
24 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
25 | water for wholesale or retail sale that is delivered to | ||||||
26 | customers through pipes, pipelines, or mains. The provisions of |
| |||||||
| |||||||
1 | Public Act 98-583 this amendatory Act of the 98th General | ||||||
2 | Assembly are declaratory of existing law as to the meaning and | ||||||
3 | scope of this exemption. For the purposes of exemption
(5), | ||||||
4 | each of these terms shall have the following meanings: (1) | ||||||
5 | "manufacturing
process" shall mean the production of any | ||||||
6 | article of tangible personal
property, whether such article is | ||||||
7 | a finished product or an article for use in
the process of | ||||||
8 | manufacturing or assembling a different article of tangible
| ||||||
9 | personal property, by procedures commonly regarded as | ||||||
10 | manufacturing,
processing, fabricating, or refining which | ||||||
11 | changes some existing
material or materials into a material | ||||||
12 | with a different form, use or
name. In relation to a recognized | ||||||
13 | integrated business composed of a
series of operations which | ||||||
14 | collectively constitute manufacturing, or
individually | ||||||
15 | constitute manufacturing operations, the manufacturing
process | ||||||
16 | shall be deemed to commence with the first operation or stage | ||||||
17 | of
production in the series, and shall not be deemed to end | ||||||
18 | until the
completion of the final product in the last operation | ||||||
19 | or stage of
production in the series; and further, for purposes | ||||||
20 | of exemption (5),
photoprocessing is deemed to be a | ||||||
21 | manufacturing process of tangible
personal property for | ||||||
22 | wholesale or retail sale; (2) "assembling process" shall
mean | ||||||
23 | the production of any article of tangible personal property, | ||||||
24 | whether such
article is a finished product or an article for | ||||||
25 | use in the process of
manufacturing or assembling a different | ||||||
26 | article of tangible personal
property, by the combination of |
| |||||||
| |||||||
1 | existing materials in a manner commonly
regarded as assembling | ||||||
2 | which results in a material of a different form,
use or name; | ||||||
3 | (3) "machinery" shall mean major mechanical machines or
major | ||||||
4 | components of such machines contributing to a manufacturing or
| ||||||
5 | assembling process; and (4) "equipment" shall include any | ||||||
6 | independent
device or tool separate from any machinery but | ||||||
7 | essential to an
integrated manufacturing or assembly process; | ||||||
8 | including computers
used primarily in a manufacturer's | ||||||
9 | computer
assisted design, computer assisted manufacturing | ||||||
10 | (CAD/CAM) system;
or any subunit or assembly comprising a | ||||||
11 | component of any machinery or
auxiliary, adjunct or attachment | ||||||
12 | parts of machinery, such as tools, dies,
jigs, fixtures, | ||||||
13 | patterns and molds; or any parts which require periodic
| ||||||
14 | replacement in the course of normal operation; but shall not | ||||||
15 | include hand
tools.
Equipment includes chemicals or chemicals | ||||||
16 | acting as catalysts but only if the
chemicals or chemicals | ||||||
17 | acting as catalysts effect a direct and immediate change
upon a
| ||||||
18 | product being manufactured or assembled for wholesale or retail | ||||||
19 | sale or
lease.
The purchaser of such machinery and equipment | ||||||
20 | who has an active
resale registration number shall furnish such | ||||||
21 | number to the seller at the
time of purchase. The user of such | ||||||
22 | machinery and equipment and tools
without an active resale | ||||||
23 | registration number shall prepare a certificate of
exemption | ||||||
24 | for each transaction stating facts establishing the exemption | ||||||
25 | for
that transaction, which certificate shall be available to | ||||||
26 | the Department
for inspection or audit. The Department shall |
| |||||||
| |||||||
1 | prescribe the form of the
certificate.
| ||||||
2 | Any informal rulings, opinions or letters issued by the | ||||||
3 | Department in
response to an inquiry or request for any opinion | ||||||
4 | from any person
regarding the coverage and applicability of | ||||||
5 | exemption (5) to specific
devices shall be published, | ||||||
6 | maintained as a public record, and made
available for public | ||||||
7 | inspection and copying. If the informal ruling,
opinion or | ||||||
8 | letter contains trade secrets or other confidential
| ||||||
9 | information, where possible the Department shall delete such | ||||||
10 | information
prior to publication. Whenever such informal | ||||||
11 | rulings, opinions, or
letters contain any policy of general | ||||||
12 | applicability, the Department
shall formulate and adopt such | ||||||
13 | policy as a rule in accordance with the
provisions of the | ||||||
14 | Illinois Administrative Procedure Act.
| ||||||
15 | On and after July 1, 1987, no entity otherwise eligible | ||||||
16 | under exemption
(3) of this Section shall make tax-free tax | ||||||
17 | free purchases unless it has an active
exemption identification | ||||||
18 | number issued by the Department.
| ||||||
19 | The purchase, employment and transfer of such tangible | ||||||
20 | personal
property as newsprint and ink for the primary purpose | ||||||
21 | of conveying news
(with or without other information) is not a | ||||||
22 | purchase, use or sale of
service or of tangible personal | ||||||
23 | property within the meaning of this Act.
| ||||||
24 | "Serviceman" means any person who is engaged in the | ||||||
25 | occupation of
making sales of service.
| ||||||
26 | "Sale at retail" means "sale at retail" as defined in the |
| |||||||
| |||||||
1 | Retailers'
Occupation Tax Act.
| ||||||
2 | "Supplier" means any person who makes sales of tangible | ||||||
3 | personal
property to servicemen for the purpose of resale as an | ||||||
4 | incident to a
sale of service.
| ||||||
5 | "Serviceman maintaining a place of business in this State", | ||||||
6 | or any
like term, means and includes any serviceman:
| ||||||
7 | (1) 1. having or maintaining within this State, | ||||||
8 | directly or by a
subsidiary, an office, distribution house, | ||||||
9 | sales house, warehouse or
other place of business, or any | ||||||
10 | agent or other representative operating
within this State | ||||||
11 | under the authority of the serviceman or its
subsidiary, | ||||||
12 | irrespective of whether such place of business or agent or
| ||||||
13 | other representative is located here permanently or | ||||||
14 | temporarily, or
whether such serviceman or subsidiary is | ||||||
15 | licensed to do business in this
State; | ||||||
16 | (1.1) 1.1. having a contract with a person located in | ||||||
17 | this State under which the person, for a commission or | ||||||
18 | other consideration based on the sale of service by the | ||||||
19 | serviceman, directly or indirectly refers potential | ||||||
20 | customers to the serviceman by providing to the potential | ||||||
21 | customers a promotional code or other mechanism that allows | ||||||
22 | the serviceman to track purchases referred by such persons. | ||||||
23 | Examples of mechanisms that allow the serviceman to track | ||||||
24 | purchases referred by such persons include but are not | ||||||
25 | limited to the use of a link on the person's Internet | ||||||
26 | website, promotional codes distributed through the |
| |||||||
| |||||||
1 | person's hand-delivered or mailed material, and | ||||||
2 | promotional codes distributed by the person through radio | ||||||
3 | or other broadcast media. The provisions of this paragraph | ||||||
4 | (1.1) 1.1 shall apply only if the cumulative gross receipts | ||||||
5 | from sales of service by the serviceman to customers who | ||||||
6 | are referred to the serviceman by all persons in this State | ||||||
7 | under such contracts exceed $10,000 during the preceding 4 | ||||||
8 | quarterly periods ending on the last day of March, June, | ||||||
9 | September, and December; a serviceman meeting the | ||||||
10 | requirements of this paragraph (1.1) 1.1 shall be presumed | ||||||
11 | to be maintaining a place of business in this State but may | ||||||
12 | rebut this presumption by submitting proof that the | ||||||
13 | referrals or other activities pursued within this State by | ||||||
14 | such persons were not sufficient to meet the nexus | ||||||
15 | standards of the United States Constitution during the | ||||||
16 | preceding 4 quarterly periods; | ||||||
17 | (1.2) 1.2. beginning July 1, 2011, having a contract | ||||||
18 | with a person located in this State under which: | ||||||
19 | (A) A. the serviceman sells the same or | ||||||
20 | substantially similar line of services as the person | ||||||
21 | located in this State and does so using an identical or | ||||||
22 | substantially similar name, trade name, or trademark | ||||||
23 | as the person located in this State; and | ||||||
24 | (B) B. the serviceman provides a commission or | ||||||
25 | other consideration to the person located in this State | ||||||
26 | based upon the sale of services by the serviceman. |
| |||||||
| |||||||
1 | The provisions of this paragraph (1.2) 1.2 shall apply only | ||||||
2 | if the cumulative gross receipts from sales of service by | ||||||
3 | the serviceman to customers in this State under all such | ||||||
4 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
5 | periods ending on the last day of March, June, September, | ||||||
6 | and December;
| ||||||
7 | (2) 2. soliciting orders for tangible personal | ||||||
8 | property by means of a
telecommunication or television | ||||||
9 | shopping system (which utilizes toll free
numbers) which is | ||||||
10 | intended by the retailer to be broadcast by cable
| ||||||
11 | television or other means of broadcasting, to consumers | ||||||
12 | located in this State;
| ||||||
13 | (3) 3. pursuant to a contract with a broadcaster or | ||||||
14 | publisher located in this
State, soliciting orders for | ||||||
15 | tangible personal property by means of advertising
which is | ||||||
16 | disseminated primarily to consumers located in this State | ||||||
17 | and only
secondarily to bordering jurisdictions;
| ||||||
18 | (4) 4. soliciting orders for tangible personal | ||||||
19 | property by mail if the
solicitations are substantial and | ||||||
20 | recurring and if the retailer benefits
from any banking, | ||||||
21 | financing, debt collection, telecommunication, or
| ||||||
22 | marketing activities occurring in this State or benefits | ||||||
23 | from the location
in this State of authorized installation, | ||||||
24 | servicing, or repair facilities;
| ||||||
25 | (5) 5. being owned or controlled by the same interests | ||||||
26 | which own or
control any retailer engaging in business in |
| |||||||
| |||||||
1 | the same or similar line of
business in this State;
| ||||||
2 | (6) 6. having a franchisee or licensee operating under | ||||||
3 | its trade name if
the franchisee or licensee is required to | ||||||
4 | collect the tax under this Section;
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5 | (7) 7. pursuant to a contract with a cable television | ||||||
6 | operator located in
this State, soliciting orders for | ||||||
7 | tangible personal property by means of
advertising which is | ||||||
8 | transmitted or distributed over a cable television
system | ||||||
9 | in this State; or
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10 | (8) 8. engaging in activities in Illinois, which | ||||||
11 | activities in the
state in which the supply business | ||||||
12 | engaging in such activities is located
would constitute | ||||||
13 | maintaining a place of business in that state ; or .
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14 | (9) beginning January 1, 2019, making sales of service | ||||||
15 | to purchasers in Illinois from outside of Illinois if: | ||||||
16 | (A) the cumulative gross receipts from sales of | ||||||
17 | service to purchasers in Illinois are $150,000 or more; | ||||||
18 | or | ||||||
19 | (B) the serviceman enters into 200 or more separate | ||||||
20 | transactions for sales of service to purchasers in | ||||||
21 | Illinois. | ||||||
22 | The serviceman shall determine on a quarterly basis, | ||||||
23 | ending on the last day of March, June, September, and | ||||||
24 | December, whether he or she meets the criteria of either | ||||||
25 | (A) or (B) of this paragraph (9) for the preceding 12-month | ||||||
26 | period. If the serviceman meets the criteria of either (A) |
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1 | or (B) for a 12-month period, he or she is considered a | ||||||
2 | serviceman maintaining a place of business in this State | ||||||
3 | and is required to collect and remit the tax imposed under | ||||||
4 | this Act and file returns for one year. At the end of that | ||||||
5 | one-year period, the serviceman shall determine whether | ||||||
6 | the serviceman met the criteria of either (A) or (B) during | ||||||
7 | the preceding 12-month period. If the serviceman met the | ||||||
8 | criteria in either (A) or (B) for the preceding 12-month | ||||||
9 | period, he or she is considered a serviceman maintaining a | ||||||
10 | place of business in this State and is required to collect | ||||||
11 | and remit the tax imposed under this Act and file returns | ||||||
12 | for the subsequent year. If at the end of a one-year period | ||||||
13 | a serviceman that was required to collect and remit the tax | ||||||
14 | imposed under this Act determines that he or she did not | ||||||
15 | meet the criteria in either (A) or (B) during the preceding | ||||||
16 | 12-month period, the serviceman subsequently shall | ||||||
17 | determine on a quarterly basis, ending on the last day of | ||||||
18 | March, June, September, and December, whether he or she | ||||||
19 | meets the criteria of either (A) or (B) for the preceding | ||||||
20 | 12-month period. | ||||||
21 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
22 | revised 9-27-17.)
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23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.
|