There is a newer version of the Illinois Compiled Statutes
2005 Illinois Code - Chapter 35 Revenue 35 ILCS 105/ Use Tax Act.
(35 ILCS 105/1) (from Ch. 120, par. 439.1)
Sec. 1.
This Act shall be known and may be cited as the "Use Tax Act".
(Source: Laws 1955, p. 2027.)
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(35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
Sec. 1a.
A person who is engaged in the business of leasing or renting
motor vehicles to others and who, in connection with such business sells
any used motor vehicle to a purchaser for his use and not for the purpose
of resale, is a retailer engaged in the business of selling tangible personal
property at retail under this Act to the extent of the value of the vehicle
sold. For the purpose of this Section, "motor vehicle" has the meaning prescribed
in Section 1‑157 of The Illinois Vehicle Code, as now or hereafter amended.
(Nothing provided herein shall affect liability incurred under this Act
because of the use of such motor vehicles as a lessor.)
(Source: P.A. 80‑598.)
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(35 ILCS 105/2) (from Ch. 120, par. 439.2)
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
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
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
ingredient of an intentionally produced product or by‑product of manufacturing.
"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.
"Purchase at retail" means the acquisition of the ownership of or title
to tangible personal property through a sale at retail.
"Purchaser" means anyone who, through a sale at retail, acquires the
ownership of tangible personal property for a valuable consideration.
"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
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.
"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.
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.
"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
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
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 on account of the seller's tax liability under
Section 8‑11‑1 of the Illinois Municipal Code, as heretofore and hereafter
amended, or on account of the seller's tax liability under the "County
Retailers' Occupation Tax Act". 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.
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.
"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.
"Retailer" means and includes every person engaged in the business of
making sales at retail as defined in this Section.
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
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.
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
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.
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
retailer under this Act with respect to such transactions.
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.
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
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
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
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.
"Retailer maintaining a place of business in this State", or any like
term, means and includes any of the following retailers:
1. A retailer having or maintaining within this | ||
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2. A retailer soliciting orders for tangible | ||
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3. A retailer, pursuant to a contract with a | ||
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4. A retailer soliciting orders for tangible | ||
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5. A retailer that is owned or controlled by the | ||
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6. A retailer having a franchisee or licensee | ||
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7. A retailer, pursuant to a contract with a cable | ||
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8. A retailer engaging in activities in Illinois, | ||
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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.
(Source: P.A. 92‑213, eff. 1‑1‑02.)
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(35 ILCS 105/2a) (from Ch. 120, par. 439.2a)
Sec. 2a.
"Pollution control facilities" means any system, method,
construction, device or appliance appurtenant thereto sold or used or
intended for the primary purpose of eliminating, preventing, or reducing
air and water pollution as the term "air pollution" or "water pollution" is
defined in the "Environmental Protection Act", enacted by the 76th General
Assembly, or for the primary purpose of treating, pretreating, modifying or
disposing of any potential solid, liquid or gaseous pollutant which if
released without such treatment, pretreatment, modification or disposal
might be harmful, detrimental or offensive to human, plant or animal life,
or to property.
Until July 1, 2003, the purchase, employment and transfer of such
tangible personal property
as pollution control facilities is not a purchase, use or sale of tangible
personal property.
(Source: P.A. 93‑24, eff. 6‑20‑03.)
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(35 ILCS 105/2a‑1) (from Ch. 120, par. 439.2a‑1)
Sec. 2a‑1.
"Low sulfur dioxide emission coal fueled devices" means any
device sold or used or intended for the purpose of burning, combusting or
converting locally available coal in a manner which eliminates or significantly
reduces the need for additional sulfur dioxide abatement that would otherwise
be required under State or Federal air emission standards.
Such device includes all machinery, equipment, structures and all related apparatus of
a coal gasification facility, including coal feeding equipment, designed
to convert locally available coal into a low sulfur gaseous fuel and to
manage all waste and byproduct streams.
The purchase, employment and transfer of such tangible personal property
as low sulfur dioxide emission coal fueled devices is not a purchase, use
or sale of tangible personal property.
This amendatory Act of 1981 is not intended to nor does it make any change
in the meaning of any provision in this Section but is intended to remove
possible ambiguities, thereby confirming the existing meaning of this Section
in effect prior to the effective date of this amendatory Act of 1981.
(Source: P.A. 82‑672.)
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(35 ILCS 105/2b) (from Ch. 120, par. 439.2b)
Sec. 2b.
"Selling price" shall not include any amounts added to prices by sellers
on account of the seller's duty to collect any tax imposed under the
"Regional Transportation Authority Act", enacted by the 78th General
Assembly.
(Source: P. A. 78‑3rd S.S.‑12.)
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(35 ILCS 105/2c) (from Ch. 120, par. 439.2c)
Sec. 2c.
For purposes of this Act, a corporation, limited liability
company, society, association,
foundation or institution organized and operated exclusively for educational
purposes shall include: all tax‑supported public schools; private schools
which offer systematic instruction in useful branches of learning by methods
common to public schools and which compare favorably in their scope and
intensity
with the course of study presented in tax‑supported schools; licensed day
care centers as defined in Section 2.09 of the Child Care Act of 1969 which
are operated by a not for profit corporation, society, association,
foundation, institution or organization; vocational
or technical schools or institutes organized and operated exclusively to
provide a course of study of not less than 6 weeks duration and designed
to prepare individuals to follow a trade or to pursue a manual, technical,
mechanical, industrial, business or commercial occupation.
However, a corporation, limited liability company, society, association,
foundation or institution
organized and operated for the purpose of offering professional, trade or
business seminars of short duration, self‑improvement or personality
development
courses, courses which are avocational or recreational in nature, courses
pursued entirely by open circuit television or radio, correspondence courses,
or courses which do not provide specialized training within a specific
vocational
or technical
field shall not be considered to be organized and operated exclusively for
educational purposes.
(Source: P.A. 88‑480.)
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(35 ILCS 105/3) (from Ch. 120, par. 439.3)
Sec. 3.
Tax imposed.
A tax is imposed upon the privilege of using in
this State tangible personal property purchased at retail from a
retailer, including computer software, and
including photographs, negatives, and positives that are the product of
photoprocessing, but not including products of photoprocessing produced for
use in motion pictures for commercial exhibition.
Beginning January 1, 2001, prepaid telephone calling arrangements shall be
considered tangible personal property subject to the tax imposed under this Act
regardless of the form in which those arrangements may be embodied,
transmitted, or fixed by any method now known or hereafter developed.
(Source: P.A. 91‑51, eff. 6‑30‑99; 91‑870, eff. 6‑22‑00.)
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(35 ILCS 105/3‑5.5)
Sec. 3‑5.5.
Food and drugs sold by not‑for‑profit organizations; exemption.
The Department shall not collect the 1% tax imposed on food for human
consumption that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription medicines, drugs,
medical appliances, and insulin, urine testing materials, syringes, and needles
used
by diabetics, for human use from any not‑for‑profit organization, that sells
food in a food distribution program at a price below the retail cost of the
food to purchasers who, as a condition of participation in the program, are
required to perform community service, located in a county or municipality that
notifies the Department, in writing, that the county or municipality does not
want the tax to be collected from any of such organizations located
in the county or municipality.
(Source: P.A. 88‑374.)
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(35 ILCS 105/3‑7)
Sec. 3‑7.
Aggregate manufacturing exemption.
Through June 30, 2003,
the use of aggregate
exploration, mining, offhighway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles required to be
registered under the Illinois Vehicle Code, is exempt from the tax imposed by
this Act.
(Source: P.A. 92‑603, eff. 6‑28‑02; 93‑24, eff. 6‑20‑03.)
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(35 ILCS 105/3‑10) (from Ch. 120, par. 439.3‑10)
Sec. 3‑10.
Rate of tax.
Unless otherwise provided in this Section, the tax
imposed by this Act is at the rate of 6.25% of either the selling price or the
fair market value, if any, of the tangible personal property. In all cases
where property functionally used or consumed is the same as the property that
was purchased at retail, then the tax is imposed on the selling price of the
property. In all cases where property functionally used or consumed is a
by‑product or waste product that has been refined, manufactured, or produced
from property purchased at retail, then the tax is imposed on the lower of the
fair market value, if any, of the specific property so used in this State or on
the selling price of the property purchased at retail. For purposes of this
Section "fair market value" means the price at which property would change
hands between a willing buyer and a willing seller, neither being under any
compulsion to buy or sell and both having reasonable knowledge of the
relevant facts. The fair market value shall be established by Illinois sales by
the taxpayer of the same property as that functionally used or consumed, or if
there are no such sales by the taxpayer, then comparable sales or purchases of
property of like kind and character in Illinois.
Beginning on July 1, 2000 and through December 31, 2000, with respect to
motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, as defined in Section 3‑40 of the Use Tax Act, the tax is
imposed at the rate of 1.25%.
With respect to gasohol, the tax imposed by this Act applies to (i) 70%
of the proceeds of sales made on or after January 1, 1990, and before
July 1, 2003, (ii) 80% of the proceeds of sales made
on or after July 1, 2003 and on or before December 31, 2013, and (iii) 100% of the proceeds of sales made
thereafter.
If, at any time, however, the tax under this Act on sales of gasohol is
imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100% of the proceeds
of sales of gasohol made during that time.
With respect to majority blended ethanol fuel, the tax imposed by this Act
does
not apply
to the proceeds of sales made on or after July 1, 2003 and on or before
December
31, 2013 but applies to 100% of the proceeds of sales made thereafter.
With respect to biodiesel blends with no less than 1% and no more than 10%
biodiesel, the tax imposed by this Act applies to (i) 80% of the
proceeds of sales made on or after July 1, 2003 and on or before December 31,
2013 and (ii) 100% of the proceeds of sales made
thereafter.
If, at any time, however, the tax under this Act on sales of biodiesel blends
with no less than 1% and no more than 10% biodiesel
is imposed at the rate of
1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of sales of biodiesel
blends with no less than 1% and no more than 10% biodiesel
made
during that time.
With respect to 100% biodiesel and biodiesel blends with more than 10%
but no more than 99% biodiesel, the tax imposed by this Act does not apply to
the
proceeds of sales made on or after July 1, 2003 and on or before
December 31, 2013 but applies to 100% of the proceeds of sales made
thereafter.
With respect to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft drinks, and
food that has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, modifications to a motor
vehicle for the purpose of rendering it usable by a disabled person, and
insulin, urine testing materials, syringes, and needles used by diabetics, for
human use, the tax is imposed at the rate of 1%. For the purposes of this
Section, the term "soft drinks" means any complete, finished, ready‑to‑use,
non‑alcoholic drink, whether carbonated or not, including but not limited to
soda water, cola, fruit juice, vegetable juice, carbonated water, and all other
preparations commonly known as soft drinks of whatever kind or description that
are contained in any closed or sealed bottle, can, carton, or container,
regardless of size. "Soft drinks" does not include coffee, tea, non‑carbonated
water, infant formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing 50% or more
natural fruit or vegetable juice.
Notwithstanding any other provisions of this
Act, "food for human consumption that is to be consumed off the premises where
it is sold" includes all food sold through a vending machine, except soft
drinks and food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
If the property that is purchased at retail from a retailer is acquired
outside Illinois and used outside Illinois before being brought to Illinois
for use here and is taxable under this Act, the "selling price" on which
the tax is computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior out‑of‑state use.
(Source: P.A. 93‑17, eff. 6‑11‑03.)
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(35 ILCS 105/3‑10.5)
Sec. 3‑10.5.
Direct payment of retailers' occupation tax and applicable
local retailers' occupation tax by purchaser; purchaser relieved of paying use
tax and local retailers' occupation tax reimbursement liabilities to retailer.
(a) A retailer who makes a retail sale of tangible personal property to a
purchaser who provides the retailer with a copy of the purchaser's valid Direct
Pay Permit issued under Section 2‑10.5 of the Retailers' Occupation Tax Act is
not required under Section 3‑45 of this Act to collect the tax imposed by this
Act on that sale.
(b) A purchaser who makes a purchase from a retailer who would otherwise
incur retailers' occupation tax liability on the transaction and who provides
the retailer with a copy of a valid Direct Pay Permit issued under Section
2‑10.5 of the Retailers' Occupation Tax Act does not incur the tax imposed by
this Act on the purchase. The purchaser assumes the retailer's obligation to
pay the retailers' occupation tax directly to the Department, including all
local retailers' occupation tax liabilities applicable to that retail sale.
(c) A purchaser who makes a purchase from a retailer who would not incur
retailers' occupation tax liability on the transaction and who provides the
retailer with a copy of a valid Direct Pay Permit issued under Section 2‑10.5
of the Retailers' Occupation Tax Act incurs the tax imposed by this Act on the
purchase. If, on any transaction, the retailer is entitled under this Act to a
discount for collecting and remitting the tax imposed under this Act to the
Department, the right to the discount provided in Section 9 of this Act shall
be transferred to the Permit holder. If the retailer would not be entitled to
a discount as provided in Section 9 of this Act, then the Permit holder is not
entitled to a discount.
(Source: P.A. 92‑484, eff. 8‑23‑01.)
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(35 ILCS 105/3‑15) (from Ch. 120, par. 439.3‑15)
Sec. 3‑15.
Photoprocessing.
For purposes of the tax imposed on photographs, negatives, and positives
by this Act, "photoprocessing" includes, but is not limited to,
developing films, positives, negatives, and transparencies, and
tinting, coloring, making, and enlarging prints. Photoprocessing does not include
color separation, typesetting, and platemaking by photographic means
in the graphic arts industry and does not include any procedure, process, or
activity connected with the creation of the images on the film from which
the negatives, positives, or photographs are derived. The charge for
in‑house photoprocessing may not be less than the photoprocessor's cost
price of materials. In transactions in which products of photoprocessing
are sold in conjunction with other services, if a charge for the
photoprocessing component is not separately stated, tax is imposed on 50%
of the entire selling price unless the sale is made by a professional
photographer, in which case tax is imposed on 10% of the
entire selling price.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(35 ILCS 105/3‑20) (from Ch. 120, par. 439.3‑20)
Sec. 3‑20.
Bullion.
For purposes of the exemption pertaining to
bullion, "bullion"
means gold, silver, or platinum in a bulk state with a purity of not less
than 980 parts per 1,000.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(35 ILCS 105/3‑25) (from Ch. 120, par. 439.3‑25)
Sec. 3‑25.
Computer software.
For the purposes of this Act, "computer
software" means a set of statements, data,
or instructions to be used directly or indirectly in a computer in order to
bring about a certain result in any form in which those statements, data, or
instructions may be embodied, transmitted, or fixed, by any method now known
or hereafter developed, regardless of whether the statements, data, or
instructions are capable of being perceived by or communicated to humans,
and includes prewritten or canned software that is held for repeated sale
or lease, and all associated documentation and materials, if any, whether
contained on magnetic tapes, discs, cards, or other devices or media, but
does not include software that is adapted to specific individualized
requirements of a purchaser, custom‑made and modified software designed for
a particular or limited use by a purchaser, or software used to operate
exempt machinery and equipment used in the process of manufacturing or
assembling tangible personal property for wholesale or retail sale or
lease.
For the purposes of this Act, computer software shall be considered to be
tangible personal property.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(35 ILCS 105/3‑27)
Sec. 3‑27.
Prepaid telephone calling arrangements.
"Prepaid telephone
calling arrangements" mean the right to exclusively purchase telephone or
telecommunications services that must be paid for in advance and enable the
origination of one or more intrastate, interstate, or international telephone
calls or other telecommunications using an access number, an authorization
code, or both, whether manually or electronically
dialed, for which payment to a retailer must be made in advance, provided that,
unless recharged, no further service is provided once that prepaid amount of
service has been consumed. Prepaid telephone calling arrangements include the
recharge of a prepaid calling arrangement. For purposes of this Section,
"recharge" means the purchase of additional prepaid telephone or
telecommunications services whether or not the purchaser acquires a different
access number or authorization code. For purposes of this Section,
"telecommunications" means that term as defined in Section 2 of the
Telecommunications Excise Tax Act.
"Prepaid telephone calling arrangement" does not
include an arrangement whereby the service provider reflects the amount of
a purchase as a credit on an account for a customer under an existing
subscription plan.
(Source: P.A. 91‑870, eff. 6‑22‑00.)
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(35 ILCS 105/3‑30) (from Ch. 120, par. 439.3‑30)
Sec. 3‑30.
Graphic arts production.
For the purposes of this Act, "graphic
arts production" means printing, including ink jet printing,
by one or more of the processes
described in Groups 323110 through 323122 of Subsector 323, Groups 511110
through 511199 of Subsector 511, and Group 512230 of Subsector 512 of the North
American Industry Classification System published by the U.S. Office of
Management and Budget, 1997 edition. Graphic arts production does not include
(i) the transfer of images onto paper or other tangible personal property by
means of photocopying or (ii) final printed products in electronic
or audio form, including the production of software or audio‑books.
(Source: P.A. 91‑51, eff. 6‑30‑99; 91‑541, eff. 8‑13‑99.)
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(35 ILCS 105/3‑35) (from Ch. 120, par. 439.3‑35)
Sec. 3‑35.
Production agriculture.
For purposes of this Act, "production agriculture" means the raising
of or the propagation of livestock; crops for sale for human consumption;
crops for livestock consumption; and production seed stock grown for the
propagation of feed grains and the husbandry of animals or for the purpose
of providing a food product, including the husbandry of blood stock as a
main source of providing a food product.
"Production agriculture" also means animal husbandry, floriculture,
aquaculture,
horticulture, and viticulture.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(35 ILCS 105/3‑40) (from Ch. 120, par. 439.3‑40)
Sec. 3‑40. Gasohol. As used in this Act, "gasohol" means motor
fuel that is
a blend of
denatured ethanol and gasoline that contains no more than 1.25% water by weight.
The blend must contain 90% gasoline and 10% denatured ethanol. A maximum of one percent error factor in the amount of denatured ethanol used in the blend is allowable to compensate for blending equipment variations. Any person who knowingly
sells or represents as gasohol any fuel that does not qualify as gasohol
under this Act is guilty of a business offense and shall be fined not more
than $100 for each day that the sale or representation takes place after
notification from the Department of Agriculture that the fuel in question
does not qualify as gasohol.
(Source: P.A. 93‑724, eff. 7‑13‑04.)
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(35 ILCS 105/3‑41)
Sec. 3‑41.
Biodiesel.
"Biodiesel" means a renewable diesel fuel derived
from
biomass that is intended for use in diesel engines.
(Source: P.A. 93‑17, eff. 6‑11‑03.)
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(35 ILCS 105/3‑42)
Sec. 3‑42.
Biodiesel blend.
"Biodiesel blend" means a blend of biodiesel
with
petroleum‑based diesel fuel in which the resultant product contains no less
than 1% and
no more than 99% biodiesel.
(Source: P.A. 93‑17, eff. 6‑11‑03.)
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(35 ILCS 105/3‑43)
Sec. 3‑43.
Biomass.
"Biomass" means non‑fossil organic materials that
have
an
intrinsic chemical energy content. "Biomass" includes, but is not limited to,
soybean oil,
other vegetable oils, and ethanol.
(Source: P.A. 93‑17, eff. 6‑11‑03.)
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(35 ILCS 105/3‑44)
Sec. 3‑44.
Majority blended ethanol fuel.
"Majority blended ethanol fuel"
means motor fuel that
contains not less than 70% and no more than 90% denatured ethanol and no less
than 10% and no more than 30% gasoline.
(Source: P.A. 93‑17, eff. 6‑11‑03.)
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(35 ILCS 105/3‑44.5)
Sec. 3‑44.5.
Diesel fuel.
"Diesel fuel" means any product intended for
use
or
offered for sale as a fuel for engines in which the fuel is injected into the
combustion
chamber and ignited by pressure without electric spark.
(Source: P.A. 93‑17, eff. 6‑11‑03.)
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(35 ILCS 105/3‑45) (from Ch. 120, par. 439.3‑45)
Sec. 3‑45.
Collection.
The tax imposed by this Act
shall be collected from the
purchaser by a retailer maintaining a place of business in this State or a
retailer authorized by the Department under Section 6 of this Act,
and shall be remitted to the Department as provided
in Section 9 of this Act, except as provided in Section 3‑10.5 of
this Act.
The tax imposed by this Act that is not paid to a
retailer under this Section shall be paid to
the Department directly by any person using the property
within this State as provided in Section 10 of this
Act.
Retailers shall collect the tax from users by adding the tax to the
selling price of tangible personal property, when sold for use, in the
manner prescribed by the Department. The Department may adopt and
promulgate reasonable rules and regulations for the adding of the tax
by retailers to selling prices by prescribing bracket systems
for the purpose of enabling the retailers to add and collect,
as far as practicable, the amount of the tax.
If a seller collects use tax measured by receipts that are not
subject to use tax, or if a seller, in collecting use tax measured by
receipts that are subject to tax under this Act, collects more from the
purchaser than the required amount of the use tax on the transaction,
the purchaser shall have a legal right to claim a refund of
that amount from the seller. If, however, that
amount is not refunded to the purchaser for any reason, the seller is
liable to pay that amount to the Department. This paragraph
does not apply to an amount collected by the seller as use tax on receipts
that are subject to tax under this Act as long as the
collection is made in compliance with the tax collection brackets
prescribed by the Department in its rules and regulations.
(Source: P.A. 91‑51, eff. 6‑30‑99; 92‑484, eff. 8‑23‑01.)
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(35 ILCS 105/3‑50) (from Ch. 120, par. 439.3‑50)
Sec. 3‑50.
Manufacturing and assembly exemption.
The manufacturing
and assembling machinery and equipment exemption includes
machinery and equipment that replaces machinery and equipment in an
existing manufacturing facility as well as machinery and equipment that
are for use in an expanded or new manufacturing facility. The machinery and
equipment exemption also includes machinery and equipment used in the
general maintenance or repair of exempt machinery and equipment or for
in‑house manufacture of exempt machinery and equipment. For the
purposes of this exemption, terms have the following
meanings:
(1) "Manufacturing process" means the production of | ||
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(2) "Assembling process" means the production of an | ||
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(3) "Machinery" means major mechanical machines or | ||
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(4) "Equipment" includes an independent device or | ||
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The manufacturing and assembling machinery and equipment
exemption includes the sale of materials to a purchaser who
produces exempted types of machinery, equipment, or tools and who rents or
leases that machinery, equipment, or tools to a
manufacturer of tangible
personal property. This exemption also includes the sale of materials to a
purchaser who manufactures those materials into an exempted type of
machinery, equipment, or tools that the purchaser uses
himself or herself in the
manufacturing of tangible personal property. This exemption includes the
sale of exempted types of machinery or equipment to a
purchaser who is not the manufacturer, but who rents or leases the use of
the property to a manufacturer. The purchaser of the machinery and
equipment who has an active resale registration number shall
furnish that number to the seller at the time of purchase.
A user of the machinery, equipment, or tools without an
active resale registration number shall prepare a certificate of exemption
for each transaction stating facts establishing the exemption for that
transaction, and that certificate shall be
available to the Department for inspection or audit. The Department shall
prescribe the form of the certificate. Informal rulings, opinions, or
letters issued by the Department in
response to an inquiry or request for an opinion from any person
regarding the coverage and applicability of this exemption to specific
devices shall be published, maintained as a public record, and made
available for public inspection and copying. If the informal ruling,
opinion, or letter contains trade secrets or other confidential
information, where possible, the Department shall delete that information
before publication. Whenever informal rulings, opinions, or
letters contain a policy of general applicability, the Department
shall formulate and adopt that policy as a rule in accordance with the
Illinois Administrative Procedure Act.
(Source: P.A. 91‑51, eff. 6‑30‑99; 92‑484, eff. 8‑23‑01.)
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(35 ILCS 105/3‑60) (from Ch. 120, par. 439.3‑60)
Sec. 3‑60.
Rolling stock exemption.
Except as provided in Section 3‑61 of
this Act, the rolling
stock exemption
applies to rolling stock used by an
interstate carrier for hire, even just between points in Illinois, if
the rolling stock transports, for hire, persons whose
journeys or property whose shipments originate or terminate outside Illinois.
(Source: P.A. 93‑23, eff. 6‑20‑03.)
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(2) If a trailer, semitrailer, or pole trailer is | ||
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(3) If one or more trailers, semitrailers, or pole | ||
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(Source: P.A. 93‑23, eff. 6‑20‑03; 93‑1033, eff. 9‑3‑04.)
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(35 ILCS 105/3‑65) (from Ch. 120, par. 439.3‑65)
Sec. 3‑65.
R.O.T.
nontaxability. If the seller of tangible personal
property for use would not be
taxable under the Retailers' Occupation Tax Act despite all elements of
the sale occurring in Illinois, then the tax imposed by this Act does
not apply to the use of the tangible personal
property in this State.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(35 ILCS 105/3‑70) (from Ch. 120, par. 439.3‑70)
Sec. 3‑70.
Property acquired by nonresident.
The tax imposed by
this Act does not apply to the use, in this State,
of tangible personal property that is acquired outside this State by a
nonresident individual who then brings the property to this State for
use here and who has used the property outside this State for at least 3
months before bringing the property to this State.
Where a business that is not operated in Illinois, but is
operated in another State, is moved to Illinois or
opens an office, plant, or other business facility in Illinois,
that business shall not be taxed on its use, in Illinois, of
used tangible personal property, other than items of tangible personal
property that must be titled or registered with the State of Illinois or
whose registration with the United States Government must be filed with the
State of Illinois, that the business bought
outside Illinois and used outside Illinois in the operation of the business
for at least 3 months before moving the
used property to Illinois for use in this State.
"Acquired outside this State",
whenever used in this Act, in addition to its usual and popular
meaning, also means the delivery, outside Illinois, of
tangible personal property that is purchased in this State and delivered
from a point in this State to a point of
delivery outside this State.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(35 ILCS 105/3‑75) (from Ch. 120, par. 439.3‑75)
Sec. 3‑75.
Serviceman transfer.
Tangible personal property
purchased by a serviceman, as defined in
Section 2 of the Service Occupation Tax Act, is subject to the tax
imposed by this Act when purchased for transfer by the serviceman
incidental to completion of a maintenance agreement.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(35 ILCS 105/3‑80) (from Ch. 120, par. 439.3‑80)
Sec. 3‑80.
Liability because of amendatory Act.
Revisions in Section
3 (now Sections 3 through 3‑80) by Public Act
85‑1135 do not affect tax liability that arose
before January 1, 1990.
(Source: P.A. 91‑51, eff. 6‑30‑99.)
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(2) 25% for purchases made after June 30, 1995, and | ||
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(3) 40% for purchases made after June 30, 1996, and | ||
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(4) 50% for purchases made on or after July 1, 1997.
(a) Manufacturer's Purchase Credit earned prior to July 1, 2003. This subsection (a) applies to Manufacturer's Purchase Credit earned prior to July 1, 2003. A purchaser of production related tangible personal property desiring to use
the Manufacturer's Purchase Credit shall certify to the seller prior to
October 1, 2003 that the
purchaser is satisfying all or part of the liability under the Use Tax Act or
the Service Use Tax Act that is due on the
purchase of the production related tangible personal property by use of
Manufacturer's Purchase Credit. The Manufacturer's Purchase Credit
certification must be dated and shall include the name and address of the
purchaser, the purchaser's registration number, if registered, the credit being
applied, and a statement that the State Use Tax or Service Use Tax liability is
being satisfied with the manufacturer's or graphic arts producer's
accumulated purchase credit.
Certification may be incorporated into the manufacturer's or graphic arts
producer's purchase order.
Manufacturer's Purchase Credit certification provided by the manufacturer
or graphic
arts producer prior to October 1, 2003 may be used to
satisfy the retailer's or serviceman's liability under the Retailers'
Occupation Tax Act or Service Occupation Tax Act for the credit claimed, not to
exceed 6.25% of the receipts subject to tax from a qualifying purchase, but
only if the retailer or serviceman reports the Manufacturer's Purchase Credit
claimed as required by the Department. A Manufacturer's Purchase Credit
reported on any original or amended return
filed under
this Act after October 20, 2003 shall be disallowed. The Manufacturer's
Purchase Credit
earned by purchase of exempt manufacturing machinery and equipment
or graphic arts machinery and equipment is a non‑transferable credit. A
manufacturer or graphic arts producer that enters into a
contract involving the installation of tangible personal property
into real estate within a manufacturing or graphic arts production facility
may, prior to October 1, 2003, authorize a construction contractor
to utilize credit accumulated by the manufacturer or graphic arts producer
to
purchase the tangible personal property. A manufacturer or graphic arts
producer
intending to use accumulated credit to purchase such tangible personal
property shall execute a written contract authorizing the contractor to utilize
a specified dollar amount of credit. The contractor shall furnish, prior to
October 1, 2003, the supplier
with the manufacturer's or graphic arts producer's name, registration or
resale
number, and a statement that a specific amount of the Use Tax or Service Use
Tax liability, not to exceed 6.25% of the selling price, is being satisfied
with the credit. The manufacturer or graphic arts producer shall remain
liable to timely report all
information required by the annual Report of Manufacturer's Purchase Credit
Used for all credit utilized by a construction contractor.
No Manufacturer's Purchase Credit earned prior to July 1, 2003 may be used after October 1, 2003. The Manufacturer's Purchase Credit may be used to satisfy liability under the
Use Tax Act or the Service Use Tax Act due on the purchase of production
related tangible personal property (including purchases by a manufacturer, by
a graphic arts producer, or by
a lessor who rents or leases the use of the property to a manufacturer or
graphic arts producer)
that does not otherwise qualify
for the manufacturing machinery and equipment
exemption or the graphic arts machinery and equipment exemption.
"Production related
tangible personal property" means (i) all tangible personal property used or
consumed by the purchaser in a manufacturing facility in which a manufacturing
process described in Section 2‑45 of the Retailers' Occupation Tax Act takes
place, including tangible personal property purchased for incorporation into
real estate within a manufacturing facility
and including, but not limited to, tangible
personal property used or consumed in activities such as preproduction material
handling, receiving, quality control, inventory control, storage, staging, and
packaging for shipping and transportation purposes; (ii) all tangible
personal property used or consumed by the purchaser in a graphic arts facility
in which graphic arts production as described in Section 2‑30 of the Retailers'
Occupation Tax Act takes place, including tangible personal property purchased
for incorporation into real estate within a graphic arts facility and
including, but not limited to, all tangible personal property used or consumed
in activities such as graphic arts preliminary or pre‑press production,
pre‑production material handling, receiving, quality control, inventory
control, storage, staging, sorting, labeling, mailing, tying, wrapping, and
packaging; and (iii) all tangible
personal property used or consumed by the purchaser
for research and development.
"Production related tangible personal property" does not include (i) tangible
personal property used, within or without a manufacturing facility, in sales,
purchasing, accounting, fiscal management, marketing, personnel recruitment or
selection, or landscaping or (ii) tangible personal property required to be
titled or registered with a department, agency, or unit of federal, state, or
local government. The Manufacturer's Purchase Credit may be used, prior to
October 1, 2003, to satisfy
the tax arising either from the purchase of
machinery and equipment on or after January 1,
1995 for which the exemption
provided by paragraph (18) of Section 3‑5 of this Act was
erroneously claimed, or the purchase of machinery and equipment on or after
July 1, 1996 for which the exemption provided by paragraph (6) of Section 3‑5
of this Act was erroneously claimed, but not in
satisfaction of penalty, if any, and interest for failure to pay the tax
when due. A
purchaser of production related tangible personal property who is required to
pay Illinois Use Tax or Service Use Tax on the purchase directly to the
Department may, prior to October 1, 2003, utilize the Manufacturer's
Purchase Credit in satisfaction of
the tax arising from that purchase, but not in
satisfaction of penalty and interest.
A purchaser who uses the Manufacturer's Purchase Credit to purchase property
which is later determined not to be production related tangible personal
property may be liable for tax, penalty, and interest on the purchase of that
property as of the date of purchase but shall be entitled to use the disallowed
Manufacturer's Purchase
Credit, so long as it has not expired and is used prior to October 1, 2003,
on qualifying purchases of production
related tangible personal property not previously subject to credit usage.
The Manufacturer's Purchase Credit earned by a manufacturer or graphic arts
producer
expires the last day of the second calendar year following the
calendar year in which the credit arose. No Manufacturer's Purchase Credit
may be used after September 30, 2003
regardless of
when that credit was earned.
A purchaser earning Manufacturer's Purchase Credit shall sign and file an
annual Report of Manufacturer's Purchase Credit Earned for each calendar year
no later than the last day of the sixth month following the calendar year in
which a Manufacturer's Purchase Credit is earned. A Report of Manufacturer's
Purchase Credit Earned shall be filed on forms as prescribed or approved by the
Department and shall state, for each month of the calendar year: (i) the total
purchase price of all purchases of exempt manufacturing or graphic arts
machinery on which the
credit was earned; (ii) the total State Use Tax or Service Use Tax which would
have been due on those items; (iii) the percentage used to calculate the amount
of credit earned; (iv) the amount of credit earned; and (v) such other
information as the Department may reasonably require. A purchaser earning
Manufacturer's Purchase Credit shall maintain records which identify, as to
each purchase of manufacturing or graphic arts machinery and equipment
on which the purchaser
earned Manufacturer's Purchase Credit, the vendor (including, if applicable,
either the vendor's registration number or Federal Employer Identification
Number), the purchase price, and the amount of Manufacturer's Purchase Credit
earned on each purchase.
A purchaser using Manufacturer's Purchase Credit shall sign and file an
annual Report of Manufacturer's Purchase Credit Used for each calendar year no
later than the last day of the sixth month following the calendar year in which
a Manufacturer's Purchase Credit is used. A Report of Manufacturer's Purchase
Credit Used
shall be filed on forms as prescribed or approved by the Department and
shall state, for each month of the calendar year: (i) the total purchase price
of production related tangible personal property purchased from Illinois
suppliers; (ii) the total purchase price of production related tangible
personal property purchased from out‑of‑state suppliers; (iii) the total amount
of credit used during such month; and (iv) such
other information as the Department may reasonably require. A purchaser using
Manufacturer's Purchase Credit shall maintain records that identify, as to
each purchase of production related tangible personal property on which the
purchaser used Manufacturer's Purchase Credit, the vendor (including, if
applicable, either the vendor's registration number or Federal Employer
Identification Number), the purchase price, and the amount of Manufacturer's
Purchase Credit used on each purchase.
No annual report shall be filed before May 1, 1996 or after June 30,
2004. A purchaser that fails to
file an annual Report of Manufacturer's Purchase Credit Earned or an annual
Report of Manufacturer's
Purchase Credit Used by the last day of the sixth month following the
end of the calendar year shall forfeit all Manufacturer's Purchase Credit for
that calendar year unless it establishes that its failure to file was due to
reasonable cause. Manufacturer's Purchase Credit reports may be amended
to report and claim credit on qualifying purchases not previously reported at
any time before the credit would have expired, unless both the Department and
the purchaser have agreed to an extension of
the statute of limitations for the issuance of a notice of tax liability as
provided in Section 4 of the Retailers' Occupation Tax Act. If the time for
assessment or refund has been extended, then amended reports for a calendar
year may be filed at any time prior to the date to which the statute of
limitations for the calendar year or portion thereof has been extended.
No Manufacturer's Purchase
Credit report filed with the Department for periods prior to January 1, 1995
shall be approved.
Manufacturer's Purchase Credit claimed on an amended report may be used,
until October 1, 2003, to
satisfy tax liability under the Use Tax Act or the Service Use Tax Act (i) on
qualifying purchases of production related tangible personal property made
after the date the amended report is filed or (ii) assessed by the Department
on qualifying purchases of production related tangible personal property made
in the case of manufacturers
on or after January 1, 1995, or in the case of graphic arts producers on or
after July 1, 1996.
If the purchaser is not the manufacturer or a graphic arts producer, but
rents or
leases the use of the property to a manufacturer or graphic arts producer,
the purchaser may earn,
report, and use Manufacturer's Purchase Credit in the same manner as a
manufacturer or graphic arts producer.
A purchaser shall not be entitled to any Manufacturer's Purchase
Credit for a purchase that is required to be reported and is not timely
reported as provided in this Section. A purchaser remains liable for (i) any
tax that was satisfied by use of a Manufacturer's Purchase Credit, as of the
date of purchase, if that use is not timely reported as required in this
Section and (ii) for any applicable penalties and interest for failing to pay
the tax when due. No Manufacturer's Purchase Credit may be used after
September 30, 2003 to
satisfy any
tax liability imposed under this Act, including any audit liability.
(b) Manufacturer's Purchase Credit earned on and after September 1, 2004. This subsection (b) applies to Manufacturer's Purchase Credit earned on and after September 1, 2004. Manufacturer's Purchase Credit earned on or after September 1, 2004 may only be used to satisfy the Use Tax or Service Use Tax liability incurred on production related tangible personal property purchased on or after September 1, 2004. A purchaser of production related tangible personal property desiring to use the Manufacturer's Purchase Credit shall certify to the seller that the purchaser is satisfying all or part of the liability under the Use Tax Act or the Service Use Tax Act that is due on the purchase of the production related tangible personal property by use of Manufacturer's Purchase Credit. The Manufacturer's Purchase Credit certification must be dated and shall include the name and address of the purchaser, the purchaser's registration number, if registered, the credit being applied, and a statement that the State Use Tax or Service Use Tax liability is being satisfied with the manufacturer's or graphic arts producer's accumulated purchase credit. Certification may be incorporated into the manufacturer's or graphic arts producer's purchase order. Manufacturer's Purchase Credit certification provided by the manufacturer or graphic arts producer may be used to satisfy the retailer's or serviceman's liability under the Retailers' Occupation Tax Act or Service Occupation Tax Act for the credit claimed, not to exceed 6.25% of the receipts subject to tax from a qualifying purchase, but only if the retailer or serviceman reports the Manufacturer's Purchase Credit claimed as required by the Department. The Manufacturer's Purchase Credit earned by purchase of exempt manufacturing machinery and equipment or graphic arts machinery and equipment is a non‑transferable credit. A manufacturer or graphic arts producer that enters into a contract involving the installation of tangible personal property into real estate within a manufacturing or graphic arts production facility may, on or after September 1, 2004, authorize a construction contractor to utilize credit accumulated by the manufacturer or graphic arts producer to purchase the tangible personal property. A manufacturer or graphic arts producer intending to use accumulated credit to purchase such tangible personal property shall execute a written contract authorizing the contractor to utilize a specified dollar amount of credit. The contractor shall furnish the supplier with the manufacturer's or graphic arts producer's name, registration or resale number, and a statement that a specific amount of the Use Tax or Service Use Tax liability, not to exceed 6.25% of the selling price, is being satisfied with the credit. The manufacturer or graphic arts producer shall remain liable to timely report all information required by the annual Report of Manufacturer's Purchase Credit Used for all credit utilized by a construction contractor. The Manufacturer's Purchase Credit may be used to satisfy liability under the Use Tax Act or the Service Use Tax Act due on the purchase, made on or after September 1, 2004, of production related tangible personal property (including purchases by a manufacturer, by a graphic arts producer, or by a lessor who rents or leases the use of the property to a manufacturer or graphic arts producer) that does not otherwise qualify for the manufacturing machinery and equipment exemption or the graphic arts machinery and equipment exemption. "Production related tangible personal property" means (i) all tangible personal property used or consumed by the purchaser in a manufacturing facility in which a manufacturing process described in Section 2‑45 of the Retailers' Occupation Tax Act takes place, including tangible personal property purchased for incorporation into real estate within a manufacturing facility and including, but not limited to, tangible personal property used or consumed in activities such as preproduction material handling, receiving, quality control, inventory control, storage, staging, and packaging for shipping and transportation purposes; (ii) all tangible personal property used or consumed by the purchaser in a graphic arts facility in which graphic arts production as described in Section 2‑30 of the Retailers' Occupation Tax Act takes place, including tangible personal property purchased for incorporation into real estate within a graphic arts facility and including, but not limited to, all tangible personal property used or consumed in activities such as graphic arts preliminary or pre‑press production, pre‑production material handling, receiving, quality control, inventory control, storage, staging, sorting, labeling, mailing, tying, wrapping, and packaging; and (iii) all tangible personal property used or consumed by the purchaser for research and development. "Production related tangible personal property" does not include (i) tangible personal property used, within or without a manufacturing facility, in sales, purchasing, accounting, fiscal management, marketing, personnel recruitment or selection, or landscaping or (ii) tangible personal property required to be titled or registered with a department, agency, or unit of federal, state, or local government. The Manufacturer's Purchase Credit may be used to satisfy the tax arising either from the purchase of machinery and equipment on or after September 1, 2004 for which the exemption provided by paragraph (18) of Section 3‑5 of this Act was erroneously claimed, or the purchase of machinery and equipment on or after September 1, 2004 for which the exemption provided by paragraph (6) of Section 3‑5 of this Act was erroneously claimed, but not in satisfaction of penalty, if any, and interest for failure to pay the tax when due. A purchaser of production related tangible personal property that is purchased on or after September 1, 2004 who is required to pay Illinois Use Tax or Service Use Tax on the purchase directly to the Department may utilize the Manufacturer's Purchase Credit in satisfaction of the tax arising from that purchase, but not in satisfaction of penalty and interest. A purchaser who uses the Manufacturer's Purchase Credit to purchase property on and after September 1, 2004 which is later determined not to be production related tangible personal property may be liable for tax, penalty, and interest on the purchase of that property as of the date of purchase but shall be entitled to use the disallowed Manufacturer's Purchase Credit, so long as it has not expired and is used on qualifying purchases of production related tangible personal property not previously subject to credit usage. The Manufacturer's Purchase Credit earned by a manufacturer or graphic arts producer expires the last day of the second calendar year following the calendar year in which the credit arose.
A purchaser earning Manufacturer's Purchase Credit shall sign and file an annual Report of Manufacturer's Purchase Credit Earned for each calendar year no later than the last day of the sixth month following the calendar year in which a Manufacturer's Purchase Credit is earned. A Report of Manufacturer's Purchase Credit Earned shall be filed on forms as prescribed or approved by the Department and shall state, for each month of the calendar year: (i) the total purchase price of all purchases of exempt manufacturing or graphic arts machinery on which the credit was earned; (ii) the total State Use Tax or Service Use Tax which would have been due on those items; (iii) the percentage used to calculate the amount of credit earned; (iv) the amount of credit earned; and (v) such other information as the Department may reasonably require. A purchaser earning Manufacturer's Purchase Credit shall maintain records which identify, as to each purchase of manufacturing or graphic arts machinery and equipment on which the purchaser earned Manufacturer's Purchase Credit, the vendor (including, if applicable, either the vendor's registration number or Federal Employer Identification Number), the purchase price, and the amount of Manufacturer's Purchase Credit earned on each purchase.
A purchaser using Manufacturer's Purchase Credit shall sign and file an annual Report of Manufacturer's Purchase Credit Used for each calendar year no later than the last day of the sixth month following the calendar year in which a Manufacturer's Purchase Credit is used. A Report of Manufacturer's Purchase Credit Used shall be filed on forms as prescribed or approved by the Department and shall state, for each month of the calendar year: (i) the total purchase price of production related tangible personal property purchased from Illinois suppliers; (ii) the total purchase price of production related tangible personal property purchased from out‑of‑state suppliers; (iii) the total amount of credit used during such month; and (iv) such other information as the Department may reasonably require. A purchaser using Manufacturer's Purchase Credit shall maintain records that identify, as to each purchase of production related tangible personal property on which the purchaser used Manufacturer's Purchase Credit, the vendor (including, if applicable, either the vendor's registration number or Federal Employer Identification Number), the purchase price, and the amount of Manufacturer's Purchase Credit used on each purchase. A purchaser that fails to file an annual Report of Manufacturer's Purchase Credit Earned or an annual Report of Manufacturer's Purchase Credit Used by the last day of the sixth month following the end of the calendar year shall forfeit all Manufacturer's Purchase Credit for that calendar year unless it establishes that its failure to file was due to reasonable cause. Manufacturer's Purchase Credit reports may be amended to report and claim credit on qualifying purchases not previously reported at any time before the credit would have expired, unless both the Department and the purchaser have agreed to an extension of the statute of limitations for the issuance of a notice of tax liability as provided in Section 4 of the Retailers' Occupation Tax Act. If the time for assessment or refund has been extended, then amended reports for a calendar year may be filed at any time prior to the date to which the statute of limitations for the calendar year or portion thereof has been extended. Manufacturer's Purchase Credit claimed on an amended report may be used to satisfy tax liability under the Use Tax Act or the Service Use Tax Act (i) on qualifying purchases of production related tangible personal property made after the date the amended report is filed or (ii) assessed by the Department on qualifying production related tangible personal property purchased on or after September 1, 2004. If the purchaser is not the manufacturer or a graphic arts producer, but rents or leases the use of the property to a manufacturer or graphic arts producer, the purchaser may earn, report, and use Manufacturer's Purchase Credit in the same manner as a manufacturer or graphic arts producer.
A purchaser shall not be entitled to any Manufacturer's Purchase Credit for a purchase that is required to be reported and is not timely reported as provided in this Section. A purchaser remains liable for (i) any tax that was satisfied by use of a Manufacturer's Purchase Credit, as of the date of purchase, if that use is not timely reported as required in this Section and (ii) for any applicable penalties and interest for failing to pay the tax when due.(Source: P.A. 93‑24, eff. 6‑20‑03; 93‑840, eff. 7‑30‑04.)
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(35 ILCS 105/3‑90)
Sec. 3‑90.
Sunset of exemptions, credits, and deductions.
The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date. A taxpayer is not
entitled to take the exemption, credit, or deduction beginning on the sunset
date and thereafter. If a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction
beginning 5 years after the effective date of the Public Act creating the
exemption, credit, or deduction and thereafter.
(Source: P.A. 88‑660, eff. 9‑16‑94; 89‑235, eff.
8‑4‑95.)
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(35 ILCS 105/3a) (from Ch. 120, par. 439.3a)
Sec. 3a.
The tax imposed by the Act shall when collected be stated as
a distinct item separate and apart from the selling price of the tangible
personal property. However, where it is not possible to state the sales
tax separately in situations such as sales from vending machines or sales
of liquor by the drink the Department may by rule exempt such sales from
this requirement so long as purchasers are notified by a sign that the tax
is included in the selling price.
(Source: P.A. 84‑229.)
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(35 ILCS 105/4) (from Ch. 120, par. 439.4)
Sec. 4.
Evidence that tangible personal property was sold by any person for
delivery to a person residing or engaged in business in this State shall be
prima facie evidence that such tangible personal property was sold for use
in this State.
(Source: Laws 1955, p. 2027.)
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(35 ILCS 105/5) (from Ch. 120, par. 439.5)
Sec. 5.
Except as to motor vehicles and other items of tangible personal
property that must be titled or registered under an Illinois
law, but that cannot be so titled or registered without a use
tax receipt or exemption determination from the Department, every retailer
maintaining a place of business in this State and making sales of tangible
personal property for use in this State (whether those sales
are made within or without this State) shall, when collecting the tax as
provided in Section 3‑45 of this Act from the purchaser, give to
the purchaser (if demanded by the purchaser) a receipt for the tax in
the manner and form prescribed by the Department. The receipt shall
be sufficient to relieve the purchaser from further
liability for the tax to which the receipt may refer. Each retailer
shall list with the Department the names and addresses of
all of his or her agents operating in this State and the location
of any and all of his or her distribution or sales houses, offices,
or other places of business in this State.
(Source: P.A. 86‑1475.)
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(35 ILCS 105/6) (from Ch. 120, par. 439.6)
Sec. 6.
A retailer maintaining a place of business in this State, if
required to register under the Retailers' Occupation Tax Act, need not
obtain an additional Certificate of Registration under this Act, but shall
be deemed to be sufficiently registered by virtue of his being registered
under the Retailers' Occupation Tax Act. Every retailer maintaining a place
of business in this State, if not required to register under the Retailers'
Occupation Tax Act, shall apply to the Department (upon a form prescribed
and furnished by the Department) for a Certificate of Registration under
this Act. In completing such application, the applicant shall furnish such
information as the Department may reasonably require. Upon approval of an
application for Certificate of Registration, the Department shall issue,
without charge, a Certificate of Registration to the applicant. Such
Certificate of Registration shall be displayed at the address which the
applicant states in his application to be the principal place of business
or location from which he will act as a retailer in this State. If the
applicant will act as a retailer in this State from other places of
business or locations, he shall list the addresses of such additional
places of business or locations in this application for Certificate of
Registration, and the Department shall issue a Sub‑Certificate of
Registration to the applicant for each such additional place of business or
location. Each Sub‑Certificate of Registration shall be conspicuously
displayed at the place for which it is issued. Such Sub‑Certificate of
Registration shall bear the same registration number as that appearing upon
the Certificate of Registration to which such Sub‑Certificates relate.
Where a retailer operates more than one place of business which is subject
to registration under this Section and such businesses are substantially
different in character or are engaged in under different trade names or are
engaged in under other substantially dissimilar circumstances (so that it
is more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered), the
Department may require or permit such person to apply for and obtain a
separate Certificate of Registration for each such business or for any of
such businesses instead of registering such person, as to all such
businesses, under a single Certificate of Registration supplemented by
related Sub‑Certificates of Registration. No Certificate of Registration
shall be issued to any person who is in default to the State of Illinois
for moneys due hereunder.
The Department may, in its discretion, upon application, authorize the
collection of the tax herein imposed by any retailer not maintaining a
place of business within this State, who, to the satisfaction of the
Department, furnishes adequate security to insure collection and payment of
the tax. Such retailer shall be issued, without charge, a permit to collect
such tax. When so authorized, it shall be the duty of such retailer to
collect the tax upon all tangible personal property sold to his knowledge
for use within this State, in the same manner and subject to the same
requirements, including the furnishing of a receipt to the purchaser (if
demanded by the purchaser), as a retailer maintaining a place of business
within this State. The receipt given to the purchaser shall be sufficient
to relieve him from further liability for the tax to which such receipt may
refer. Such permit may be revoked by the Department as provided herein.
(Source: Laws 1955, p. 2027.)
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(35 ILCS 105/7) (from Ch. 120, par. 439.7)
Sec. 7.
It is unlawful for any retailer to advertise or hold out or state to the
public or to any purchaser, consumer or user, directly or indirectly, that
the tax or any part thereof imposed by Section 3 hereof will be assumed or
absorbed by the retailer or that it will not be added to the selling price
of the property sold, or if added that it or any part thereof will be
refunded other than when the retailer refunds the selling price and tax
because of the merchandise's being returned to the retailer or other than
when the retailer credits or refunds the tax to the purchaser to support a
claim filed with the Department under the Retailers' Occupation Tax Act or
under this Act. Any person violating any of the provisions of this Section
within this State shall be guilty of a Class A misdemeanor.
(Source: P.A. 77‑2830.)
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(35 ILCS 105/8) (from Ch. 120, par. 439.8)
Sec. 8.
Any retailer required to collect the tax imposed by this Act shall
be liable to the Department for such tax, whether or not the tax has been
collected by the retailer, except when the retailer is relieved of the duty of
remitting the tax to the Department by virtue of having paid a tax imposed by
the Retailers' Occupation Tax Act upon his or her gross receipts from the
same transactions. To the extent that a retailer required to collect the tax
imposed by this Act has actually collected that tax, such tax is held in trust
for the benefit of the Department.
(Source: P.A. 91‑203, eff. 7‑20‑99.)
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5. The amount of tax due;
5‑5. The signature of the taxpayer; and
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If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average monthly tax
liability of $150,000 or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all payments required by
rules of the Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities under this Act, and
under all other State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year. The term "average
monthly tax liability" means
the sum of the taxpayer's liabilities under this Act, and under all other State
and local occupation and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505‑210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall notify
all taxpayers required to make payments by electronic funds transfer. All
taxpayers required to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with the permission of the
Department.
All taxpayers required to make payment by electronic funds transfer and any
taxpayers authorized to voluntarily make payments by electronic funds transfer
shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Retailers' Occupation Tax Act, the Service
Occupation Tax Act, the Service Use Tax Act was $10,000 or more
during
the preceding 4 complete calendar quarters, he shall file a return with the
Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Retailers' Occupation Tax Act,
the
Service Occupation Tax Act, and the Service Use Tax Act was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the
month during
which such liability is incurred.
If the month during which such tax
liability is incurred began prior to January 1, 1985, each payment shall be
in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the Department not to
exceed 1/4 of the average monthly liability of the taxpayer to the
Department for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability in such 4
quarter period). If the month during which such tax liability is incurred
begins on or after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's actual liability
for the month or 27.5% of the taxpayer's liability for the same calendar
month of the preceding year. If the month during which such tax liability
is incurred begins on or after January 1, 1987, and prior to January 1,
1988, each payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's liability for
the same calendar month of the preceding year. If the month during which such
tax liability is incurred begins on or after January 1, 1988, and prior to
January 1, 1989,
or begins on or after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the preceding year. If the
month during which such tax liability is incurred begins on or after January 1,
1989,
and prior to January 1, 1996, each payment shall be in an amount equal to 22.5%
of the taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited against the final tax
liability
of the taxpayer's return for that month. Before October 1, 2000, once
applicable, the requirement
of the making of quarter monthly payments to the Department shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000. However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement of the making
of quarter monthly payments to the Department shall continue until such
taxpayer's average monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a substantial
change in the taxpayer's business has occurred which causes the taxpayer to
anticipate that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated above, then
such taxpayer may petition the Department for a change in such taxpayer's
reporting status.
The Department shall change such taxpayer's reporting status unless it
finds that such change is seasonal in nature and not likely to be long
term. If any such quarter monthly payment is not paid at the time or in
the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on
the difference between the minimum amount due and the amount of such
quarter monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds the taxpayer's
liabilities under this Act, the Retailers' Occupation Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown by an original
monthly return, the Department shall issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department in payment of
tax liability subsequently to be remitted by the taxpayer to the Department
or be assigned by the taxpayer to a similar taxpayer under this Act, the
Retailers' Occupation Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations to
be prescribed by the Department, except that if such excess payment is
shown on an original monthly return and is made after December 31, 1986, no
credit memorandum shall be issued, unless requested by the taxpayer. If no
such request is made, the taxpayer may credit such excess payment against
tax liability subsequently to be remitted by the taxpayer to the Department
under this Act, the Retailers' Occupation Tax Act, the Service Occupation
Tax Act or the Service Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department subsequently
determines that all or any part of the credit taken was not actually due to
the taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall be
reduced by 2.1% or 1.75% of the difference between the credit taken and
that actually due, and the taxpayer shall be liable for penalties and
interest on such difference.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department
does not exceed $200, the Department may authorize his returns to be
filed on a quarter annual basis, with the return for January, February,
and March of a given year being due by April 20 of such year; with the
return for April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return for
October, November and December of a given year being due by January 20
of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability to the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than
one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 3‑55 of
this Act, then
that seller may report the transfer of all the
aircraft, watercraft, motor
vehicles
or trailers involved in that transaction to the Department on the same
uniform
invoice‑transaction reporting return form.
For purposes of this Section, "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.
The transaction reporting return in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5‑402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded‑in
property, if any; the amount allowed by the retailer for the traded‑in
tangible personal property, if any, to the extent to which Section 2 of
this Act allows an exemption for the value of traded‑in property; the
balance payable after deducting such trade‑in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5‑402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded‑in property, if any; the amount allowed by
the retailer for the traded‑in tangible personal property, if any, to
the extent to which Section 2 of this Act allows an exemption for the
value of traded‑in property; the balance payable after deducting such
trade‑in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the date of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so. The transaction reporting return and tax remittance or proof of
exemption from the tax that is imposed by this Act may be transmitted to
the Department by way of the State agency with which, or State officer
with whom, the tangible personal property must be titled or registered
(if titling or registration is required) if the Department and such
agency or State officer determine that this procedure will expedite the
processing of applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer. The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of tax or proof of
exemption made to the Department before the retailer is willing to take
these actions and such user has not paid the tax to the retailer, such
user may certify to the fact of such delay by the retailer, and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the selling price
of tangible personal property which he sells and the purchaser
thereafter returns such tangible personal property and the retailer
refunds the selling price thereof to the purchaser, such retailer shall
also refund, to the purchaser, the tax so collected from the purchaser.
When filing his return for the period in which he refunds such tax to
the purchaser, the retailer may deduct the amount of the tax so refunded
by him to the purchaser from any other use tax which such retailer may
be required to pay or remit to the Department, as shown by such return,
if the amount of the tax to be deducted was previously remitted to the
Department by such retailer. If the retailer has not previously
remitted the amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the purchaser.
Any retailer filing a return under this Section shall also include
(for the purpose of paying tax thereon) the total tax covered by such
return upon the selling price of tangible personal property purchased by
him at retail from a retailer, but as to which the tax imposed by this
Act was not collected from the retailer filing such return, and such
retailer shall remit the amount of such tax to the Department when
filing such return.
If experience indicates such action to be practicable, the Department
may prescribe and furnish a combination or joint return which will
enable retailers, who are required to file returns hereunder and also
under the Retailers' Occupation Tax Act, to furnish all the return
information required by both Acts on the one form.
Where the retailer has more than one business registered with the
Department under separate registration under this Act, such retailer may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
Beginning January 1, 1990, each month the Department shall pay into the
State and Local Sales Tax Reform Fund, a special fund in the State Treasury
which is hereby created, the net revenue realized for the preceding month
from the 1% tax on sales of food for human consumption which is to be
consumed off the premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund 4% of the net revenue realized
for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is purchased
outside Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
Beginning January 1, 1990, each month the Department shall pay into
the State and Local Sales Tax Reform Fund, a special fund in the State
Treasury, 20% of the net revenue realized
for the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible personal property
which is purchased outside Illinois at retail from a retailer and which is
titled or registered by an agency of this State's government.
Beginning August 1, 2000, each
month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency of this
State's government.
Of the remainder of the moneys received by the Department pursuant to
this Act, (a) 1.75% thereof shall be paid
into the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case may be, of the
moneys received by the Department and required to be paid into the Build
Illinois Fund pursuant to Section 3 of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use
Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts being
hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case may be, of moneys being hereinafter called the "Tax Act Amount",
and (2) the amount transferred to the Build Illinois Fund from the State
and Local Sales Tax Reform Fund shall be less than the Annual Specified
Amount (as defined in Section 3 of the Retailers' Occupation Tax Act), an
amount equal to the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department pursuant to the
Tax Acts; and further provided, that if on the last business day of any
month the sum of (1) the Tax Act Amount required to be deposited into the
Build Illinois Bond Account in the Build Illinois Fund during such month
and (2) the amount transferred during such month to the Build Illinois Fund
from the State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from other moneys
received by the Department pursuant to the Tax Acts; and,
further provided, that in no event shall the payments required under the
preceding proviso result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of the greater
of (i) the Tax Act Amount or (ii) the Annual Specified Amount for such
fiscal year; and, further provided, that the amounts payable into the Build
Illinois Fund under this clause (b) shall be payable only until such time
as the aggregate amount on deposit under each trust
indenture securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any future investment
income, to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if any, and
interest on the Bonds secured by such indenture and on any Bonds expected
to be issued thereafter and all fees and costs payable with respect thereto,
all as certified by the Director of the
Bureau of the Budget (now Governor's Office of Management and Budget). If
on the last
business day of any month in which Bonds are outstanding pursuant to the
Build Illinois Bond Act, the aggregate of the moneys deposited
in the Build Illinois Bond Account in the Build Illinois Fund in such month
shall be less than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond Retirement and
Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid
from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the preceding
sentence and shall reduce the amount otherwise payable for such fiscal year
pursuant to clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge set forth
in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act into
the McCormick Place Expansion Project Fund in the specified fiscal years.
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Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one‑eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto
hereafter enacted,
beginning July 1, 1993, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for the preceding
month from the 6.25% general rate on the selling price of tangible personal
property.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any
amendments thereto hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing for a 25‑year
period, the Department shall each month pay into the Energy Infrastructure
Fund 80% of the net revenue realized from the 6.25% general rate on the
selling price of Illinois‑mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business" means a new
electric generating facility certified pursuant to Section 605‑332 of the
Department of Commerce and
Economic Opportunity Law of the Civil Administrative
Code of Illinois.
Of the remainder of the moneys received by the Department pursuant
to this Act, 75% thereof shall be paid into the State Treasury and 25%
shall be reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State
Finance Act.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected
by the State pursuant to this Act, less the amount paid out during that
month as refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
(Source: P.A. 94‑793, eff. 5‑19‑06.)
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(35 ILCS 105/10) (from Ch. 120, par. 439.10)
Sec. 10.
Except as to motor vehicles, aircraft, watercraft, and
trailers, when tangible personal
property is
purchased from a retailer for use in this State by a purchaser
who did not pay the tax imposed by this Act to the retailer, and who does not
file returns with the Department as a retailer under Section 9 of this
Act, such purchaser (by the last day of the month following the calendar
month in which such purchaser makes any payment upon the selling price of
such property) shall, except as provided in this Section, file
a return with the Department and pay the tax upon that portion of the
selling price so paid by the purchaser during the preceding calendar month.
When tangible personal property, including but not limited to motor vehicles
and aircraft, is purchased by a lessor, under a lease for
one year or longer, executed or in effect at the time of purchase to an
interstate carrier for hire, who did not pay the tax imposed by this Act to the
retailer, such lessor (by the last day of the month following the calendar
month in which such property reverts to the use of such lessor) shall file
a return with the Department and pay the tax upon the fair market value of
such property on the date of such reversion.
However, in determining the fair market value at the time of reversion, the
fair market value of such property shall not exceed the original purchase price
of the property that was paid by the lessor at the time of purchase.
Such return shall be filed on
a form prescribed by the Department and shall contain such information as
the Department may reasonably require. Such return and payment from the
purchaser shall be submitted to the Department sooner than the last day of
the month after the month in which the purchase is made to the extent that
that may be necessary in order to secure the title to a motor vehicle or
the certificate of registration for an aircraft. However, except as to motor
vehicles and aircraft, if the
purchaser's annual use tax liability does not exceed $600, the purchaser
may file the return on an annual basis on or before April 15th of the year
following the year use tax liability was incurred.
In addition with respect to motor vehicles,
aircraft, watercraft, and trailers, a purchaser of such tangible personal
property for use in this
State, who purchases such tangible personal property from an out‑of‑state
retailer, shall file with the Department, upon a form to be prescribed and
supplied by the Department, a return for each such item of tangible
personal property purchased, except that if, in the same transaction, (i) a
purchaser of motor vehicles,
aircraft, watercraft, or trailers who is a retailer of motor vehicles,
aircraft, watercraft, or trailers purchases more than one motor vehicle,
aircraft, watercraft, or trailer for the purpose of resale or (ii) a purchaser
of motor vehicles, aircraft, watercraft, or trailers purchases more
than one motor vehicle, aircraft, watercraft, or trailer for use as qualifying
rolling stock as provided in Section 3‑55 of this Act, then the purchaser may
report the purchase of all motor vehicles, aircraft, watercraft, or trailers
involved in that transaction to the Department on a single return prescribed by
the Department. Such return in the case of motor vehicles and
aircraft must show the name and address of the seller, the name, address of
purchaser, the amount of the selling price including the amount allowed by
the retailer for traded in property, if any; the amount allowed by the
retailer for the traded‑in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for the value of
traded‑in property; the balance payable after deducting such trade‑in
allowance from the total selling price; the amount of tax due from the
purchaser with respect to such transaction; the amount of tax collected
from the purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance if that is
claimed to be the fact); the place and date of the sale, a sufficient
identification of the property sold, and such other information as the
Department may reasonably require.
Such return shall be filed not later than 30 days after such motor
vehicle or aircraft is brought into this State for use.
For purposes of this Section, "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.
The return and tax remittance or proof of exemption from the tax that is
imposed by this Act may be transmitted to the Department by way of the
State agency with which, or State officer with whom, the tangible personal
property must be titled or registered (if titling or registration is
required) if the Department and such agency or State officer determine that
this procedure will expedite the processing of applications for title or
registration.
With each such return, the purchaser shall remit the proper amount of tax
due (or shall submit satisfactory evidence that the sale is not taxable if
that is the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt (or a
certificate of exemption if the Department is satisfied that the particular
sale is tax exempt) which such purchaser may submit to the agency with
which, or State officer with whom, he must title or register the tangible
personal property that is involved (if titling or registration is required)
in support of such purchaser's application for an Illinois certificate or
other evidence of title or registration to such tangible personal property.
When a purchaser pays a tax imposed by this Act directly to the Department,
the Department (upon request therefor from such purchaser) shall issue an
appropriate receipt to such purchaser showing that he has paid such tax to
the Department. Such receipt shall be sufficient to relieve the purchaser
from further liability for the tax to which such receipt may refer.
A user who is liable to pay use tax directly to the Department only
occasionally and not on a frequently recurring basis, and who is not
required to file returns with the Department as a retailer under Section 9
of this Act, or under the "Retailers' Occupation Tax Act", or as a
registrant with the Department under the "Service Occupation Tax Act" or
the "Service Use Tax Act", need not register with the Department.
However, if such a user has a frequently recurring direct use tax liability
to pay to the Department, such user shall be required to register with the
Department on forms prescribed by the Department and to obtain and display
a certificate of registration from the Department. In that event, all of
the provisions of Section 9 of this Act concerning the filing of regular
monthly, quarterly or annual tax returns and all of the provisions of
Section 2a of the "Retailers' Occupation Tax Act" concerning the
requirements for registrants to post bond or other security with the
Department, as the provisions of such sections now exist or may hereafter
be amended, shall apply to such users to the same extent as if such
provisions were included herein.
(Source: P.A. 91‑541, eff. 8‑13‑99; 91‑901, eff. 1‑1‑01.)
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(35 ILCS 105/10a) (from Ch. 120, par. 439.10a)
Sec. 10a.
Notwithstanding any other provision to the contrary, any person
who is required to file a bond pursuant to any provision of this Act and
who has continuously complied with all provisions of this Act for 24 or
more consecutive months, shall no longer be required to comply with the
bonding provisions of this Act so long as such person continues his compliance
with the provisions of this Act.
(Source: P.A. 84‑1408.)
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(35 ILCS 105/11) (from Ch. 120, par. 439.11)
Sec. 11.
Every retailer required or authorized to collect taxes hereunder
and every person using in this State tangible personal property purchased
at retail from a retailer on or after the effective date hereof shall keep
such records, receipts, invoices and other pertinent books, documents,
memoranda and papers as the Department shall require, in such form as the
Department shall require. The Department may adopt rules that establish
requirements, including record forms and formats, for records required to be
kept and maintained by taxpayers. For purposes of this Section, "records" means
all data maintained by the taxpayer, including data on paper, microfilm,
microfiche or any type of machine‑sensible data compilation. For the purpose of
administering and enforcing the provisions hereof, the Department, or any
officer or employee of the Department designated, in writing, by the Director
thereof, may hold investigations and hearings concerning any matters covered
herein and may examine any books, papers, records, documents or memoranda of
any retailer or purchaser bearing upon the sales or purchases of tangible
personal property, the privilege of using which is taxed hereunder, and may
require the attendance of such person or any officer or employee of such
person, or of any person having knowledge of the facts, and may take testimony
and require proof for its information.
(Source: P.A. 88‑480.)
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(35 ILCS 105/12) (from Ch. 120, par. 439.12)
Sec. 12.
Applicability of Retailers' Occupation Tax Act and Uniform Penalty
and Interest Act. All of the provisions of Sections 1d, 1e, 1f, 1i, 1j,
1j.1, 1k,
1m,
1n, 1o, 2a, 2b, 2c, 3, 4 (except that the time limitation provisions
shall run
from the date when the tax is due rather than from the date when gross
receipts are received), 5 (except that the time limitation provisions on
the issuance of notices of tax liability shall run from the date when the
tax is due rather than from the date when gross receipts are received and
except that in the case of a failure to file a return required by this Act, no
notice of tax liability shall be issued on and after each July 1 and January 1
covering tax due with that return during any month or period more than 6 years
before that July 1 or January 1, respectively), 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 7, 8, 9, 10, 11 and 12 of
the Retailers' Occupation Tax Act and Section 3‑7 of the Uniform
Penalty and Interest Act, which are not inconsistent with this Act,
shall apply, as far as practicable, to the subject matter of this Act to
the same extent as if such provisions were included herein.
(Source: P.A. 90‑42, eff. 1‑1‑98; 90‑792, eff. 1‑1‑99.)
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(35 ILCS 105/12a) (from Ch. 120, par. 439.12a)
Sec. 12a.
Any non‑resident of this State who accepts the privilege extended
by the laws of this State to non‑residents of acting as a retailer
maintaining a place of business in this State within the meaning of Section
2 of this Act, and any resident of this State who incurs tax liability
under this Act as a seller and who subsequently removes from this State or
conceals his whereabouts, and any person (resident or non‑resident) who
incurs tax liability under this Act as a user in this State and who removes
from this State or conceals his whereabouts, shall be deemed thereby to
appoint the Secretary of State of Illinois his agent for the service of
process or notice in any judicial or administrative proceeding under this
Act. Such process or notice shall be served by the Department on the
Secretary of State by leaving, at the office of the Secretary of State at
least 15 days before the return day of such process or notice, a true and
certified copy thereof, and by sending to the taxpayer by registered or
certified mail, postage prepaid, a like and true certified copy, with an
endorsement thereon of the service upon said Secretary of State, addressed
to such taxpayer at his last known address.
Service of process or notice in the manner provided for in this Section,
under the circumstances specified in this Section, shall be of the same
force and validity as if served upon the taxpayer personally within this
State. Proof of such service upon the taxpayer in this State through the
Secretary of State as his agent and by mailing to the last known address of
the taxpayer may be made in such judicial or administrative proceeding by
the affidavit of the Director of Revenue, or by his duly authorized
representative who made such service, with a copy of the process or notice
that was so served attached to such affidavit.
(Source: Laws 1961, p. 1945.)
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(35 ILCS 105/12b) (from Ch. 120, par. 439.12b)
Sec. 12b.
The Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and procedures of the
Department of Revenue under this Act, except that (1) paragraph (b) of Section
5‑10 of the Illinois Administrative Procedure Act does not apply
to final orders, decisions and opinions of the Department, (2) subparagraph
(a)2 of Section 5‑10 of the Illinois Administrative Procedure Act
does not apply to forms established by the Department for use under this Act,
and (3) the provisions of Section 10‑45 of the Illinois
Administrative Procedure Act regarding proposals for decision are excluded and
not applicable to the Department under this Act.
(Source: P.A. 88‑45.)
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(35 ILCS 105/13) (from Ch. 120, par. 439.13)
Sec. 13.
Whenever any retailer not maintaining a place of business in this
State, to whom a permit to collect the tax hereby imposed has been issued
pursuant to Section 6 hereof, fails to comply with any of the provisions
hereof or any orders, rules or regulations of the Department prescribed and
adopted hereunder, or when the Department considers the security furnished
by such retailer to be inadequate or considers that the tax can be
collected more effectively from persons using such property in this State,
the Department may, upon notice and hearing as herein provided, by order
revoke the permit issued to such retailer. No order authorized by this
Section shall be made until the retailer is given an opportunity to be
heard and to show cause why such order shall not be made, and he shall be
given at least 7 days' notice of the time, place and purpose of such
hearing. The Department shall have the power in its discretion to issue a
new permit pursuant to Section 6 hereof after such revocation.
(Source: Laws 1955, p. 2027.)
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(35 ILCS 105/14) (from Ch. 120, par. 439.14)
Sec. 14.
When the amount due is under $300, any person subject to
the provisions hereof who fails to file a
return, or who violates any other provision of Section 9 or Section 10 hereof,
or who fails to keep books and records as required herein, or who files a
fraudulent return, or who wilfully violates any rule or regulation of the
Department for the administration and enforcement of the provisions hereof,
or any officer or agent of a corporation or manager, member, or agent of a
limited liability company subject hereto who signs a fraudulent return filed on
behalf of such corporation or limited liability company, or any accountant or
other agent who knowingly enters false information on the return of any
taxpayer under this Act, or any person who violates any of the provisions
of Sections 3, 5 or 7 hereof, or any purchaser who obtains a registration
number or resale number from the Department through misrepresentation, or
who represents to a seller that such purchaser has a registration number or
a resale number from the Department when he knows that he does not, or who
uses his registration number or resale number to make a seller believe that
he is buying tangible personal property for resale when such purchaser in
fact knows that this is not the case, is guilty of a Class 4 felony.
Any person who violates any provision of Section 6 hereof, or who
engages in the business of selling tangible personal property at retail
after his Certificate of Registration under this Act has been revoked in
accordance with Section 12 of this Act, is guilty of a Class 4 felony.
Each day any such person is engaged in business in violation of Section 6,
or after his Certificate of Registration under this Act has been revoked,
constitutes a separate offense.
When the amount due is under $300, any person who accepts money that
is due to the Department under this Act from a taxpayer for the purpose of
acting as the taxpayer's agent to make the payment to the Department, but who
fails to remit such payment to the Department when due is guilty of a Class 4
felony.
Any such person who purports to make such payment by issuing or delivering
a check or other order upon a real or fictitious depository for the payment
of money, knowing that it will not be paid by the depository, shall be guilty
of a deceptive practice in violation of Section 17‑1 of the Criminal Code
of 1961, as amended.
When the amount due is $300 or more any person subject to the provisions
hereof who fails to file a return or who violates any other provision of
Section 9 or Section 10 hereof or who fails to keep books and records as
required herein or who files a fraudulent return, or who wilfully violates
any rule or regulation of the Department for the administration and
enforcement of the provisions hereof, or any officer or agent of a
corporation or manager, member, or agent of a limited liability company
subject hereto who signs a fraudulent return filed on behalf of
such corporation or limited liability company, or any accountant or other
agent who knowingly enters false information on the return of any taxpayer
under this Act or any person who violates any of the provisions of Sections 3,
5 or 7 hereof or any purchaser who obtains a registration number or resale
number from the Department through misrepresentation, or who represents to a
seller that such purchaser has a registration number or a resale number from
the Department when he knows that he does not or who uses his registration
number or resale number to make a seller believe that he is buying tangible
personal property for resale when such purchaser in fact knows that this is not
the case, is guilty of a Class 3 felony.
When the amount due is $300 or more any person who accepts money that is
due to the Department under this Act from a taxpayer for the purpose of
acting as the taxpayer's agent to make the payment to the Department, but who
fails to remit such payment to the Department when due is guilty of a Class
3 felony. Any such person who purports to make such payment by issuing or
delivering a check or other order upon a real or fictitious depository for
the payment of money, knowing that it will not be paid by the depository
shall be guilty of a deceptive practice in violation of Section 17‑1 of the
Criminal Code of 1961, as amended.
Any seller who collects or attempts to collect use tax measured by
receipts which such seller knows are not subject to use tax, or any seller
who knowingly over‑collects or attempts to over‑collect use tax in a
transaction which is subject to the tax that is imposed by this Act, shall
be guilty of a Class 4 felony for each such offense. This paragraph
does not apply to an amount collected by the seller as use tax on receipts
which are subject to tax under this Act as long as such collection is made
in compliance with the tax collection brackets prescribed by the Department
in its Rules and Regulations.
Any taxpayer or agent of a taxpayer who with the intent to defraud
purports to make a payment due to the Department by issuing or delivering a
check or other order upon a real or fictitious depository for the payment
of money, knowing that it will not be paid by the depository, shall be
guilty of a deceptive practice in violation of Section 17‑1 of the Criminal
Code of 1961, as amended.
A prosecution for any act in violation of this Section may be commenced
at any time within 3 years of the commission of that Act.
This Section does not apply if the violation in a particular case also
constitutes a criminal violation of the Retailers' Occupation Tax Act.
(Source: P.A. 88‑480.)
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(35 ILCS 105/15) (from Ch. 120, par. 439.15)
Sec. 15.
The tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois or by any
municipal corporation or political subdivision thereof.
Any taxpayer or agent of a taxpayer who with the intent to defraud
purports to make a payment due to the Department by issuing or delivering a
check or other order upon a real or fictitious depository for the payment
of money, knowing that it will not be paid by the depository, shall be
guilty of a deceptive practice in violation of Section 17‑1 of the Criminal
Code of 1961, as amended.
(Source: P.A. 84‑221.)
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(35 ILCS 105/18) (from Ch. 120, par. 439.18)
Sec. 18.
If any clause, sentence, Section, provision or part of this Act or
the application thereof to any person or circumstance shall be adjudged to
be unconstitutional, the remainder of this Act or its application to
persons or circumstances other than those to which it is held invalid,
shall not be affected thereby. In particular, if any provision which
exempts or has the effect of exempting some class of users or some kind of
use from the tax imposed by this Act should be held to constitute or to
result in an invalid classification or to be unconstitutional for some
other reason, such provision shall be deemed to be severable, with the
remainder of this Act without said provision being held constitutional.
(Source: Laws 1955, p. 2027.)
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(35 ILCS 105/19) (from Ch. 120, par. 439.19)
Sec. 19.
If it shall appear that an amount of tax or penalty or interest has
been paid in error hereunder to the Department by a purchaser, as distinguished
from the retailer, whether such amount be paid through a mistake of fact or
an error of law, such purchaser may file a claim for credit or refund with
the Department in accordance with Sections 6, 6a, 6b, and 6c of the
Retailers'
Occupation Tax Act. If it shall appear that an amount of tax or penalty or
interest has been paid in error to the Department hereunder by a retailer
who is required or authorized to collect and remit the use tax, whether
such amount be paid through a mistake of fact or an error of law, such
retailer may file a claim for credit or refund with the Department in
accordance with Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax
Act,
provided that no credit or refund shall be allowed for any amount paid by
any such retailer unless it shall appear that he bore the burden of such
amount and did not shift the burden thereof to anyone else (as in the case
of a duplicated tax payment which the retailer made to the Department and
did not collect from anyone else), or unless it shall appear that he or
she or his or her legal representative has unconditionally repaid such
amount to his vendee (1) who bore the burden thereof and has not shifted
such burden directly or indirectly in any manner whatsoever; (2) who, if he
has shifted such burden, has repaid unconditionally such amount to his or
her own vendee, and (3) who is not entitled to receive any reimbursement
therefor from any other source than from his vendor, nor to be relieved of
such burden in any other manner whatsoever. If it shall appear that an
amount of tax has been paid in error hereunder by the purchaser to a
retailer, who retained such tax as reimbursement for his or her tax
liability on the same sale under the Retailers' Occupation Tax Act, and who
remitted the amount involved to the Department under the Retailers'
Occupation Tax Act, whether such amount be paid through a mistake of fact
or an error of law, the procedure for recovering such tax shall be that
prescribed in Sections 6, 6a, 6b and 6c of the Retailers' Occupation Tax Act.
Any credit or refund that is allowed under this Section shall bear interest
at the rate and in the manner specified in the Uniform Penalty and Interest
Act.
Any claim filed hereunder shall be filed upon a form prescribed and
furnished by the Department. The claim shall be signed by the claimant (or
by the claimant's legal representative if the claimant shall have died or
become a person under legal disability), or by a duly authorized agent of
the claimant or his or her legal representative.
A claim for credit or refund shall be considered to have been filed with
the Department on the date upon which it is received by the Department.
Upon receipt of any claim for credit or refund filed under this Act, any
officer or employee of the Department, authorized in writing by the
Director of Revenue to acknowledge receipt of such claims on behalf of the
Department, shall execute on behalf of the Department, and shall deliver or
mail to the claimant or his duly authorized agent, a written receipt,
acknowledging that the claim has been filed with the Department, describing
the claim in sufficient detail to identify it and stating the date upon
which the claim was received by the Department. Such written receipt shall
be prima facie evidence that the Department received the claim described in
such receipt and shall be prima facie evidence of the date when such claim
was received by the Department. In the absence of such a written receipt,
the records of the Department as to when the claim was received by the
Department, or as to whether or not the claim was received at all by the
Department, shall be deemed to be prima facie correct upon these questions
in the event of any dispute between the claimant (or his or her legal
representative) and the Department concerning these questions.
In case the Department determines that the claimant is entitled to a
refund, such refund shall be made only from such appropriation as may be
available for that purpose. If it appears unlikely that the amount
appropriated would permit everyone having a claim allowed during the period
covered by such appropriation to elect to receive a cash refund, the
Department, by rule or regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as hardship cases.
If a retailer who has failed to pay use tax on gross receipts from
retail sales is required by the Department to pay such tax, such retailer,
without filing any formal claim with the Department, shall be allowed to
take credit against such use tax liability to the extent, if any, to which
such retailer has paid an amount equivalent to retailers' occupation tax or
has paid use tax in error to his or her vendor or vendors of the same tangible
personal property which such retailer bought for resale and did not first
use before selling it, and no penalty or interest shall be charged to such
retailer on the amount of such credit. However, when such credit is allowed
to the retailer by the Department, the vendor is precluded from refunding
any of that tax to the retailer and filing a claim for credit or refund
with respect thereto with the Department. The provisions of this amendatory
Act shall be applied retroactively, regardless of the date of the transaction.
(Source: P.A. 90‑562, eff. 12‑16‑97.)
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(35 ILCS 105/20) (from Ch. 120, par. 439.20)
Sec. 20.
As soon as practicable after a claim for credit or refund is filed, the
Department shall examine the same and determine the amount of credit or
refund to which the claimant or the claimant's legal representative, in the
event that the claimant shall have died or become a person under legal
disability, is entitled
and shall, by its Notice of Tentative Determination of Claim, notify the
claimant or his or her legal representative of such determination, which
determination shall be prima facie correct. Proof of such determination by
the Department may be made at any hearing before the Department or in any
legal proceeding by a reproduced copy of the Department's record relating
thereto, in the name of the Department under the certificate of the
Director of Revenue. Such reproduced copy shall, without further proof, be
admitted into evidence before the Department or in any legal proceeding and
shall be prima facie proof of the correctness of the Department's
determination, as shown therein. If such claimant, or the legal
representative of a deceased claimant or a claimant
who is a person under legal disability shall, within 60 days
after the Department's Notice of Tentative Determination of Claim, file a
protest thereto and request a hearing thereon, the Department shall give
notice to such claimant, or the legal representative of a deceased claimant,
or a claimant who is a person under legal disability
of the time and place fixed for such hearing, and
shall hold a hearing in conformity with the provisions of this Act, and
pursuant thereto shall issue its Final Determination of the amount, if any,
found to be due as a result of such hearing, to such claimant, or the legal
representative of a deceased claimant or a claimant
who is a person under legal disability.
If a protest to the Department's Notice of Tentative Determination of
Claim is not filed within 60 days and a request for a hearing
thereon is
not made as provided herein, the said Notice shall thereupon become and
operate as a Final Determination; and, if the Department's Notice of
Tentative Determination, upon becoming a Final Determination, indicates no
amount due to the claimant, or, upon issuance of a credit or refund for the
amount, if any, found by the Department to be due, the claim in all its
aspects shall be closed and no longer open to protest, hearing, judicial
review, or by any other proceeding or action whatever, either before the
Department or in any court of this State. Claims for credit or refund
hereunder must be filed with and initially determined by the Department,
the remedy herein provided being exclusive; and no court shall have
jurisdiction to determine the merits of any claim except upon review as
provided in this Act.
(Source: P.A. 90‑491, eff. 1‑1‑98.)
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(35 ILCS 105/21) (from Ch. 120, par. 439.21)
Sec. 21.
As to any claim for credit or refund filed with the Department on and
after January 1 but on or before June 30 of any given year, no amount of
tax or penalty or interest erroneously paid (either in total or partial
liquidation of a tax or penalty or interest under this Act) more than 3
years prior to such January 1 shall be credited or refunded, and as to any
such claim filed on and after July 1 but on or before December 31 of any
given year, no amount of tax or penalty or interest erroneously paid
(either in total or partial liquidation of a tax or penalty or interest
under this Act) more than 3 years prior to such July 1 shall be credited or
refunded. No claim shall be allowed for any amount paid to the Department,
whether paid voluntarily or involuntarily, if paid in total or partial
liquidation of an assessment which had become final before the claim for
credit or refund to recover the amount so paid is filed with the
Department, or if paid in total or partial liquidation of a judgment or order of court.
(Source: P.A. 79‑1366; 79‑1365.)
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(35 ILCS 105/22) (from Ch. 120, par. 439.22)
Sec. 22.
If it is determined that the Department should issue a credit or refund
under this Act, the Department may first apply the amount thereof against
any amount of tax or penalty or interest due hereunder, or under the Retailers'
Occupation Tax Act, the Service Occupation Tax
Act, the Service Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
from the person entitled to such credit or refund.
For this purpose, if proceedings are pending to determine whether or not
any tax or penalty or interest is due under this Act or under the Retailers'
Occupation Tax Act, the Service Occupation Tax
Act, the Service Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
from such person, the Department may withhold
issuance of the credit or refund pending the final disposition of such
proceedings and may apply such credit or refund against any amount found to
be due to the Department as a result of such proceedings. The balance, if
any, of the credit or refund shall be issued to the person entitled
thereto.
Any credit memorandum issued hereunder may be used by the authorized
holder thereof to pay any tax or penalty or interest due or to become due
under this Act or under the Retailers' Occupation Tax Act, the Service
Occupation Tax Act, the Service Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
from such holder. Subject
to reasonable rules of the Department, a credit memorandum issued hereunder
may be assigned by the holder thereof to any other person for use in paying
tax or penalty or interest which may be due or become due under this Act or
under the Retailers' Occupation Tax Act, the Service Occupation
Tax Act or the Service Use Tax Act, from the assignee.
In any case in which there has been an erroneous refund of tax
payable under this Act, a notice of tax liability may be issued at any time
within 3 years from the making of that refund, or within 5 years from the
making of that refund if it appears that any part of the refund was induced
by fraud or the misrepresentation of a material fact. The amount of any
proposed assessment set forth in the notice shall be limited to the amount
of the erroneous refund.
(Source: P.A. 91‑901, eff. 1‑1‑01.)
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