Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1841 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1841 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: 35 ILCS 105/2 from Ch. 120, par. 439.2 35 ILCS 105/3-10 35 ILCS 120/1 from Ch. 120, par. 440 35 ILCS 120/2-10 Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, with respect to the sale of a manufactured home, if the purchase is the first purchase of the manufactured home for use as a dwelling and the purchaser certifies that the manufactured home will be affixed to a permanent foundation in the State, then the tax imposed by the Acts applies to 50% of the selling price (in the case of the Use Tax Act) or 50% of the gross receipts from the sale (in the case of the Retailers' Occupation Tax Act). Effective immediately. LRB103 25906 HLH 52257 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1841 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED: 35 ILCS 105/2 from Ch. 120, par. 439.2 35 ILCS 105/3-10 35 ILCS 120/1 from Ch. 120, par. 440 35 ILCS 120/2-10 35 ILCS 105/2 from Ch. 120, par. 439.2 35 ILCS 105/3-10 35 ILCS 120/1 from Ch. 120, par. 440 35 ILCS 120/2-10 Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, with respect to the sale of a manufactured home, if the purchase is the first purchase of the manufactured home for use as a dwelling and the purchaser certifies that the manufactured home will be affixed to a permanent foundation in the State, then the tax imposed by the Acts applies to 50% of the selling price (in the case of the Use Tax Act) or 50% of the gross receipts from the sale (in the case of the Retailers' Occupation Tax Act). Effective immediately. LRB103 25906 HLH 52257 b LRB103 25906 HLH 52257 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1841 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/2 from Ch. 120, par. 439.2 35 ILCS 105/3-10 35 ILCS 120/1 from Ch. 120, par. 440 35 ILCS 120/2-10 35 ILCS 105/2 from Ch. 120, par. 439.2 35 ILCS 105/3-10 35 ILCS 120/1 from Ch. 120, par. 440 35 ILCS 120/2-10
4	4	35 ILCS 105/2 from Ch. 120, par. 439.2
5	5	35 ILCS 105/3-10
6	6	35 ILCS 120/1 from Ch. 120, par. 440
7	7	35 ILCS 120/2-10
8	8	Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, with respect to the sale of a manufactured home, if the purchase is the first purchase of the manufactured home for use as a dwelling and the purchaser certifies that the manufactured home will be affixed to a permanent foundation in the State, then the tax imposed by the Acts applies to 50% of the selling price (in the case of the Use Tax Act) or 50% of the gross receipts from the sale (in the case of the Retailers' Occupation Tax Act). Effective immediately.
9	9	LRB103 25906 HLH 52257 b LRB103 25906 HLH 52257 b
10	10	LRB103 25906 HLH 52257 b
11	11	A BILL FOR
12	12	SB1841LRB103 25906 HLH 52257 b SB1841 LRB103 25906 HLH 52257 b
13	13	SB1841 LRB103 25906 HLH 52257 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Sections
18	18	5 2 and 3-10 as follows:
19	19	6 (35 ILCS 105/2) (from Ch. 120, par. 439.2)
20	20	7 Sec. 2. Definitions.
21	21	8 "Use" means the exercise by any person of any right or
22	22	9 power over tangible personal property incident to the
23	23	10 ownership of that property, except that it does not include
24	24	11 the sale of such property in any form as tangible personal
25	25	12 property in the regular course of business to the extent that
26	26	13 such property is not first subjected to a use for which it was
27	27	14 purchased, and does not include the use of such property by its
28	28	15 owner for demonstration purposes: Provided that the property
29	29	16 purchased is deemed to be purchased for the purpose of resale,
30	30	17 despite first being used, to the extent to which it is resold
31	31	18 as an ingredient of an intentionally produced product or
32	32	19 by-product of manufacturing. "Use" does not mean the
33	33	20 demonstration use or interim use of tangible personal property
34	34	21 by a retailer before he sells that tangible personal property.
35	35	22 For watercraft or aircraft, if the period of demonstration use
36	36	23 or interim use by the retailer exceeds 18 months, the retailer
37	37
38	38
39	39
40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1841 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
41	41	35 ILCS 105/2 from Ch. 120, par. 439.2 35 ILCS 105/3-10 35 ILCS 120/1 from Ch. 120, par. 440 35 ILCS 120/2-10 35 ILCS 105/2 from Ch. 120, par. 439.2 35 ILCS 105/3-10 35 ILCS 120/1 from Ch. 120, par. 440 35 ILCS 120/2-10
42	42	35 ILCS 105/2 from Ch. 120, par. 439.2
43	43	35 ILCS 105/3-10
44	44	35 ILCS 120/1 from Ch. 120, par. 440
45	45	35 ILCS 120/2-10
46	46	Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, with respect to the sale of a manufactured home, if the purchase is the first purchase of the manufactured home for use as a dwelling and the purchaser certifies that the manufactured home will be affixed to a permanent foundation in the State, then the tax imposed by the Acts applies to 50% of the selling price (in the case of the Use Tax Act) or 50% of the gross receipts from the sale (in the case of the Retailers' Occupation Tax Act). Effective immediately.
47	47	LRB103 25906 HLH 52257 b LRB103 25906 HLH 52257 b
48	48	LRB103 25906 HLH 52257 b
49	49	A BILL FOR
50	50
51	51
52	52
53	53
54	54
55	55	35 ILCS 105/2 from Ch. 120, par. 439.2
56	56	35 ILCS 105/3-10
57	57	35 ILCS 120/1 from Ch. 120, par. 440
58	58	35 ILCS 120/2-10
59	59
60	60
61	61
62	62	LRB103 25906 HLH 52257 b
63	63
64	64
65	65
66	66
67	67
68	68
69	69
70	70
71	71
72	72	SB1841 LRB103 25906 HLH 52257 b
73	73
74	74
75	75	SB1841- 2 -LRB103 25906 HLH 52257 b SB1841 - 2 - LRB103 25906 HLH 52257 b
76	76	SB1841 - 2 - LRB103 25906 HLH 52257 b
77	77	1 shall pay on the retailers' original cost price the tax
78	78	2 imposed by this Act, and no credit for that tax is permitted if
79	79	3 the watercraft or aircraft is subsequently sold by the
80	80	4 retailer. "Use" does not mean the physical incorporation of
81	81	5 tangible personal property, to the extent not first subjected
82	82	6 to a use for which it was purchased, as an ingredient or
83	83	7 constituent, into other tangible personal property (a) which
84	84	8 is sold in the regular course of business or (b) which the
85	85	9 person incorporating such ingredient or constituent therein
86	86	10 has undertaken at the time of such purchase to cause to be
87	87	11 transported in interstate commerce to destinations outside the
88	88	12 State of Illinois: Provided that the property purchased is
89	89	13 deemed to be purchased for the purpose of resale, despite
90	90	14 first being used, to the extent to which it is resold as an
91	91	15 ingredient of an intentionally produced product or by-product
92	92	16 of manufacturing.
93	93	17 "Watercraft" means a Class 2, Class 3, or Class 4
94	94	18 watercraft as defined in Section 3-2 of the Boat Registration
95	95	19 and Safety Act, a personal watercraft, or any boat equipped
96	96	20 with an inboard motor.
97	97	21 "Purchase at retail" means the acquisition of the
98	98	22 ownership of or title to tangible personal property through a
99	99	23 sale at retail.
100	100	24 "Purchaser" means anyone who, through a sale at retail,
101	101	25 acquires the ownership of tangible personal property for a
102	102	26 valuable consideration.
103	103
104	104
105	105
106	106
107	107
108	108	SB1841 - 2 - LRB103 25906 HLH 52257 b
109	109
110	110
111	111	SB1841- 3 -LRB103 25906 HLH 52257 b SB1841 - 3 - LRB103 25906 HLH 52257 b
112	112	SB1841 - 3 - LRB103 25906 HLH 52257 b
113	113	1 "Sale at retail" means any transfer of the ownership of or
114	114	2 title to tangible personal property to a purchaser, for the
115	115	3 purpose of use, and not for the purpose of resale in any form
116	116	4 as tangible personal property to the extent not first
117	117	5 subjected to a use for which it was purchased, for a valuable
118	118	6 consideration: Provided that the property purchased is deemed
119	119	7 to be purchased for the purpose of resale, despite first being
120	120	8 used, to the extent to which it is resold as an ingredient of
121	121	9 an intentionally produced product or by-product of
122	122	10 manufacturing. For this purpose, slag produced as an incident
123	123	11 to manufacturing pig iron or steel and sold is considered to be
124	124	12 an intentionally produced by-product of manufacturing. "Sale
125	125	13 at retail" includes any such transfer made for resale unless
126	126	14 made in compliance with Section 2c of the Retailers'
127	127	15 Occupation Tax Act, as incorporated by reference into Section
128	128	16 12 of this Act. Transactions whereby the possession of the
129	129	17 property is transferred but the seller retains the title as
130	130	18 security for payment of the selling price are sales.
131	131	19 "Sale at retail" shall also be construed to include any
132	132	20 Illinois florist's sales transaction in which the purchase
133	133	21 order is received in Illinois by a florist and the sale is for
134	134	22 use or consumption, but the Illinois florist has a florist in
135	135	23 another state deliver the property to the purchaser or the
136	136	24 purchaser's donee in such other state.
137	137	25 Nonreusable tangible personal property that is used by
138	138	26 persons engaged in the business of operating a restaurant,
139	139
140	140
141	141
142	142
143	143
144	144	SB1841 - 3 - LRB103 25906 HLH 52257 b
145	145
146	146
147	147	SB1841- 4 -LRB103 25906 HLH 52257 b SB1841 - 4 - LRB103 25906 HLH 52257 b
148	148	SB1841 - 4 - LRB103 25906 HLH 52257 b
149	149	1 cafeteria, or drive-in is a sale for resale when it is
150	150	2 transferred to customers in the ordinary course of business as
151	151	3 part of the sale of food or beverages and is used to deliver,
152	152	4 package, or consume food or beverages, regardless of where
153	153	5 consumption of the food or beverages occurs. Examples of those
154	154	6 items include, but are not limited to nonreusable, paper and
155	155	7 plastic cups, plates, baskets, boxes, sleeves, buckets or
156	156	8 other containers, utensils, straws, placemats, napkins, doggie
157	157	9 bags, and wrapping or packaging materials that are transferred
158	158	10 to customers as part of the sale of food or beverages in the
159	159	11 ordinary course of business.
160	160	12 The purchase, employment and transfer of such tangible
161	161	13 personal property as newsprint and ink for the primary purpose
162	162	14 of conveying news (with or without other information) is not a
163	163	15 purchase, use or sale of tangible personal property.
164	164	16 "Selling price" means the consideration for a sale valued
165	165	17 in money whether received in money or otherwise, including
166	166	18 cash, credits, property other than as hereinafter provided,
167	167	19 and services, but, prior to January 1, 2020 and beginning
168	168	20 again on January 1, 2022, not including the value of or credit
169	169	21 given for traded-in tangible personal property where the item
170	170	22 that is traded-in is of like kind and character as that which
171	171	23 is being sold; beginning January 1, 2020 and until January 1,
172	172	24 2022, "selling price" includes the portion of the value of or
173	173	25 credit given for traded-in motor vehicles of the First
174	174	26 Division as defined in Section 1-146 of the Illinois Vehicle
175	175
176	176
177	177
178	178
179	179
180	180	SB1841 - 4 - LRB103 25906 HLH 52257 b
181	181
182	182
183	183	SB1841- 5 -LRB103 25906 HLH 52257 b SB1841 - 5 - LRB103 25906 HLH 52257 b
184	184	SB1841 - 5 - LRB103 25906 HLH 52257 b
185	185	1 Code of like kind and character as that which is being sold
186	186	2 that exceeds $10,000. "Selling price" shall be determined
187	187	3 without any deduction on account of the cost of the property
188	188	4 sold, the cost of materials used, labor or service cost or any
189	189	5 other expense whatsoever, but does not include interest or
190	190	6 finance charges which appear as separate items on the bill of
191	191	7 sale or sales contract nor charges that are added to prices by
192	192	8 sellers on account of the seller's tax liability under the
193	193	9 Retailers' Occupation Tax Act, or on account of the seller's
194	194	10 duty to collect, from the purchaser, the tax that is imposed by
195	195	11 this Act, or, except as otherwise provided with respect to any
196	196	12 cigarette tax imposed by a home rule unit, on account of the
197	197	13 seller's tax liability under any local occupation tax
198	198	14 administered by the Department, or, except as otherwise
199	199	15 provided with respect to any cigarette tax imposed by a home
200	200	16 rule unit on account of the seller's duty to collect, from the
201	201	17 purchasers, the tax that is imposed under any local use tax
202	202	18 administered by the Department. Effective December 1, 1985,
203	203	19 "selling price" shall include charges that are added to prices
204	204	20 by sellers on account of the seller's tax liability under the
205	205	21 Cigarette Tax Act, on account of the seller's duty to collect,
206	206	22 from the purchaser, the tax imposed under the Cigarette Use
207	207	23 Tax Act, and on account of the seller's duty to collect, from
208	208	24 the purchaser, any cigarette tax imposed by a home rule unit.
209	209	25 Notwithstanding any law to the contrary, for any motor
210	210	26 vehicle, as defined in Section 1-146 of the Vehicle Code, that
211	211
212	212
213	213
214	214
215	215
216	216	SB1841 - 5 - LRB103 25906 HLH 52257 b
217	217
218	218
219	219	SB1841- 6 -LRB103 25906 HLH 52257 b SB1841 - 6 - LRB103 25906 HLH 52257 b
220	220	SB1841 - 6 - LRB103 25906 HLH 52257 b
221	221	1 is sold on or after January 1, 2015 for the purpose of leasing
222	222	2 the vehicle for a defined period that is longer than one year
223	223	3 and (1) is a motor vehicle of the second division that: (A) is
224	224	4 a self-contained motor vehicle designed or permanently
225	225	5 converted to provide living quarters for recreational,
226	226	6 camping, or travel use, with direct walk through access to the
227	227	7 living quarters from the driver's seat; (B) is of the van
228	228	8 configuration designed for the transportation of not less than
229	229	9 7 nor more than 16 passengers; or (C) has a gross vehicle
230	230	10 weight rating of 8,000 pounds or less or (2) is a motor vehicle
231	231	11 of the first division, "selling price" or "amount of sale"
232	232	12 means the consideration received by the lessor pursuant to the
233	233	13 lease contract, including amounts due at lease signing and all
234	234	14 monthly or other regular payments charged over the term of the
235	235	15 lease. Also included in the selling price is any amount
236	236	16 received by the lessor from the lessee for the leased vehicle
237	237	17 that is not calculated at the time the lease is executed,
238	238	18 including, but not limited to, excess mileage charges and
239	239	19 charges for excess wear and tear. For sales that occur in
240	240	20 Illinois, with respect to any amount received by the lessor
241	241	21 from the lessee for the leased vehicle that is not calculated
242	242	22 at the time the lease is executed, the lessor who purchased the
243	243	23 motor vehicle does not incur the tax imposed by the Use Tax Act
244	244	24 on those amounts, and the retailer who makes the retail sale of
245	245	25 the motor vehicle to the lessor is not required to collect the
246	246	26 tax imposed by this Act or to pay the tax imposed by the
247	247
248	248
249	249
250	250
251	251
252	252	SB1841 - 6 - LRB103 25906 HLH 52257 b
253	253
254	254
255	255	SB1841- 7 -LRB103 25906 HLH 52257 b SB1841 - 7 - LRB103 25906 HLH 52257 b
256	256	SB1841 - 7 - LRB103 25906 HLH 52257 b
257	257	1 Retailers' Occupation Tax Act on those amounts. However, the
258	258	2 lessor who purchased the motor vehicle assumes the liability
259	259	3 for reporting and paying the tax on those amounts directly to
260	260	4 the Department in the same form (Illinois Retailers'
261	261	5 Occupation Tax, and local retailers' occupation taxes, if
262	262	6 applicable) in which the retailer would have reported and paid
263	263	7 such tax if the retailer had accounted for the tax to the
264	264	8 Department. For amounts received by the lessor from the lessee
265	265	9 that are not calculated at the time the lease is executed, the
266	266	10 lessor must file the return and pay the tax to the Department
267	267	11 by the due date otherwise required by this Act for returns
268	268	12 other than transaction returns. If the retailer is entitled
269	269	13 under this Act to a discount for collecting and remitting the
270	270	14 tax imposed under this Act to the Department with respect to
271	271	15 the sale of the motor vehicle to the lessor, then the right to
272	272	16 the discount provided in this Act shall be transferred to the
273	273	17 lessor with respect to the tax paid by the lessor for any
274	274	18 amount received by the lessor from the lessee for the leased
275	275	19 vehicle that is not calculated at the time the lease is
276	276	20 executed; provided that the discount is only allowed if the
277	277	21 return is timely filed and for amounts timely paid. The
278	278	22 "selling price" of a motor vehicle that is sold on or after
279	279	23 January 1, 2015 for the purpose of leasing for a defined period
280	280	24 of longer than one year shall not be reduced by the value of or
281	281	25 credit given for traded-in tangible personal property owned by
282	282	26 the lessor, nor shall it be reduced by the value of or credit
283	283
284	284
285	285
286	286
287	287
288	288	SB1841 - 7 - LRB103 25906 HLH 52257 b
289	289
290	290
291	291	SB1841- 8 -LRB103 25906 HLH 52257 b SB1841 - 8 - LRB103 25906 HLH 52257 b
292	292	SB1841 - 8 - LRB103 25906 HLH 52257 b
293	293	1 given for traded-in tangible personal property owned by the
294	294	2 lessee, regardless of whether the trade-in value thereof is
295	295	3 assigned by the lessee to the lessor. In the case of a motor
296	296	4 vehicle that is sold for the purpose of leasing for a defined
297	297	5 period of longer than one year, the sale occurs at the time of
298	298	6 the delivery of the vehicle, regardless of the due date of any
299	299	7 lease payments. A lessor who incurs a Retailers' Occupation
300	300	8 Tax liability on the sale of a motor vehicle coming off lease
301	301	9 may not take a credit against that liability for the Use Tax
302	302	10 the lessor paid upon the purchase of the motor vehicle (or for
303	303	11 any tax the lessor paid with respect to any amount received by
304	304	12 the lessor from the lessee for the leased vehicle that was not
305	305	13 calculated at the time the lease was executed) if the selling
306	306	14 price of the motor vehicle at the time of purchase was
307	307	15 calculated using the definition of "selling price" as defined
308	308	16 in this paragraph. Notwithstanding any other provision of this
309	309	17 Act to the contrary, lessors shall file all returns and make
310	310	18 all payments required under this paragraph to the Department
311	311	19 by electronic means in the manner and form as required by the
312	312	20 Department. This paragraph does not apply to leases of motor
313	313	21 vehicles for which, at the time the lease is entered into, the
314	314	22 term of the lease is not a defined period, including leases
315	315	23 with a defined initial period with the option to continue the
316	316	24 lease on a month-to-month or other basis beyond the initial
317	317	25 defined period.
318	318	26 The phrase "like kind and character" shall be liberally
319	319
320	320
321	321
322	322
323	323
324	324	SB1841 - 8 - LRB103 25906 HLH 52257 b
325	325
326	326
327	327	SB1841- 9 -LRB103 25906 HLH 52257 b SB1841 - 9 - LRB103 25906 HLH 52257 b
328	328	SB1841 - 9 - LRB103 25906 HLH 52257 b
329	329	1 construed (including but not limited to any form of motor
330	330	2 vehicle for any form of motor vehicle, or any kind of farm or
331	331	3 agricultural implement for any other kind of farm or
332	332	4 agricultural implement), while not including a kind of item
333	333	5 which, if sold at retail by that retailer, would be exempt from
334	334	6 retailers' occupation tax and use tax as an isolated or
335	335	7 occasional sale.
336	336	8 "Department" means the Department of Revenue.
337	337	9 "Person" means any natural individual, firm, partnership,
338	338	10 association, joint stock company, joint adventure, public or
339	339	11 private corporation, limited liability company, or a receiver,
340	340	12 executor, trustee, guardian or other representative appointed
341	341	13 by order of any court.
342	342	14 "Retailer" means and includes every person engaged in the
343	343	15 business of making sales at retail as defined in this Section.
344	344	16 A person who holds himself or herself out as being engaged
345	345	17 (or who habitually engages) in selling tangible personal
346	346	18 property at retail is a retailer hereunder with respect to
347	347	19 such sales (and not primarily in a service occupation)
348	348	20 notwithstanding the fact that such person designs and produces
349	349	21 such tangible personal property on special order for the
350	350	22 purchaser and in such a way as to render the property of value
351	351	23 only to such purchaser, if such tangible personal property so
352	352	24 produced on special order serves substantially the same
353	353	25 function as stock or standard items of tangible personal
354	354	26 property that are sold at retail.
355	355
356	356
357	357
358	358
359	359
360	360	SB1841 - 9 - LRB103 25906 HLH 52257 b
361	361
362	362
363	363	SB1841- 10 -LRB103 25906 HLH 52257 b SB1841 - 10 - LRB103 25906 HLH 52257 b
364	364	SB1841 - 10 - LRB103 25906 HLH 52257 b
365	365	1 A person whose activities are organized and conducted
366	366	2 primarily as a not-for-profit service enterprise, and who
367	367	3 engages in selling tangible personal property at retail
368	368	4 (whether to the public or merely to members and their guests)
369	369	5 is a retailer with respect to such transactions, excepting
370	370	6 only a person organized and operated exclusively for
371	371	7 charitable, religious or educational purposes either (1), to
372	372	8 the extent of sales by such person to its members, students,
373	373	9 patients or inmates of tangible personal property to be used
374	374	10 primarily for the purposes of such person, or (2), to the
375	375	11 extent of sales by such person of tangible personal property
376	376	12 which is not sold or offered for sale by persons organized for
377	377	13 profit. The selling of school books and school supplies by
378	378	14 schools at retail to students is not "primarily for the
379	379	15 purposes of" the school which does such selling. This
380	380	16 paragraph does not apply to nor subject to taxation occasional
381	381	17 dinners, social or similar activities of a person organized
382	382	18 and operated exclusively for charitable, religious or
383	383	19 educational purposes, whether or not such activities are open
384	384	20 to the public.
385	385	21 A person who is the recipient of a grant or contract under
386	386	22 Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
387	387	23 serves meals to participants in the federal Nutrition Program
388	388	24 for the Elderly in return for contributions established in
389	389	25 amount by the individual participant pursuant to a schedule of
390	390	26 suggested fees as provided for in the federal Act is not a
391	391
392	392
393	393
394	394
395	395
396	396	SB1841 - 10 - LRB103 25906 HLH 52257 b
397	397
398	398
399	399	SB1841- 11 -LRB103 25906 HLH 52257 b SB1841 - 11 - LRB103 25906 HLH 52257 b
400	400	SB1841 - 11 - LRB103 25906 HLH 52257 b
401	401	1 retailer under this Act with respect to such transactions.
402	402	2 Persons who engage in the business of transferring
403	403	3 tangible personal property upon the redemption of trading
404	404	4 stamps are retailers hereunder when engaged in such business.
405	405	5 The isolated or occasional sale of tangible personal
406	406	6 property at retail by a person who does not hold himself out as
407	407	7 being engaged (or who does not habitually engage) in selling
408	408	8 such tangible personal property at retail or a sale through a
409	409	9 bulk vending machine does not make such person a retailer
410	410	10 hereunder. However, any person who is engaged in a business
411	411	11 which is not subject to the tax imposed by the Retailers'
412	412	12 Occupation Tax Act because of involving the sale of or a
413	413	13 contract to sell real estate or a construction contract to
414	414	14 improve real estate, but who, in the course of conducting such
415	415	15 business, transfers tangible personal property to users or
416	416	16 consumers in the finished form in which it was purchased, and
417	417	17 which does not become real estate, under any provision of a
418	418	18 construction contract or real estate sale or real estate sales
419	419	19 agreement entered into with some other person arising out of
420	420	20 or because of such nontaxable business, is a retailer to the
421	421	21 extent of the value of the tangible personal property so
422	422	22 transferred. If, in such transaction, a separate charge is
423	423	23 made for the tangible personal property so transferred, the
424	424	24 value of such property, for the purposes of this Act, is the
425	425	25 amount so separately charged, but not less than the cost of
426	426	26 such property to the transferor; if no separate charge is
427	427
428	428
429	429
430	430
431	431
432	432	SB1841 - 11 - LRB103 25906 HLH 52257 b
433	433
434	434
435	435	SB1841- 12 -LRB103 25906 HLH 52257 b SB1841 - 12 - LRB103 25906 HLH 52257 b
436	436	SB1841 - 12 - LRB103 25906 HLH 52257 b
437	437	1 made, the value of such property, for the purposes of this Act,
438	438	2 is the cost to the transferor of such tangible personal
439	439	3 property.
440	440	4 "Retailer maintaining a place of business in this State",
441	441	5 or any like term, means and includes any of the following
442	442	6 retailers:
443	443	7 (1) A retailer having or maintaining within this
444	444	8 State, directly or by a subsidiary, an office,
445	445	9 distribution house, sales house, warehouse or other place
446	446	10 of business, or any agent or other representative
447	447	11 operating within this State under the authority of the
448	448	12 retailer or its subsidiary, irrespective of whether such
449	449	13 place of business or agent or other representative is
450	450	14 located here permanently or temporarily, or whether such
451	451	15 retailer or subsidiary is licensed to do business in this
452	452	16 State. However, the ownership of property that is located
453	453	17 at the premises of a printer with which the retailer has
454	454	18 contracted for printing and that consists of the final
455	455	19 printed product, property that becomes a part of the final
456	456	20 printed product, or copy from which the printed product is
457	457	21 produced shall not result in the retailer being deemed to
458	458	22 have or maintain an office, distribution house, sales
459	459	23 house, warehouse, or other place of business within this
460	460	24 State.
461	461	25 (1.1) A retailer having a contract with a person
462	462	26 located in this State under which the person, for a
463	463
464	464
465	465
466	466
467	467
468	468	SB1841 - 12 - LRB103 25906 HLH 52257 b
469	469
470	470
471	471	SB1841- 13 -LRB103 25906 HLH 52257 b SB1841 - 13 - LRB103 25906 HLH 52257 b
472	472	SB1841 - 13 - LRB103 25906 HLH 52257 b
473	473	1 commission or other consideration based upon the sale of
474	474	2 tangible personal property by the retailer, directly or
475	475	3 indirectly refers potential customers to the retailer by
476	476	4 providing to the potential customers a promotional code or
477	477	5 other mechanism that allows the retailer to track
478	478	6 purchases referred by such persons. Examples of mechanisms
479	479	7 that allow the retailer to track purchases referred by
480	480	8 such persons include but are not limited to the use of a
481	481	9 link on the person's Internet website, promotional codes
482	482	10 distributed through the person's hand-delivered or mailed
483	483	11 material, and promotional codes distributed by the person
484	484	12 through radio or other broadcast media. The provisions of
485	485	13 this paragraph (1.1) shall apply only if the cumulative
486	486	14 gross receipts from sales of tangible personal property by
487	487	15 the retailer to customers who are referred to the retailer
488	488	16 by all persons in this State under such contracts exceed
489	489	17 $10,000 during the preceding 4 quarterly periods ending on
490	490	18 the last day of March, June, September, and December. A
491	491	19 retailer meeting the requirements of this paragraph (1.1)
492	492	20 shall be presumed to be maintaining a place of business in
493	493	21 this State but may rebut this presumption by submitting
494	494	22 proof that the referrals or other activities pursued
495	495	23 within this State by such persons were not sufficient to
496	496	24 meet the nexus standards of the United States Constitution
497	497	25 during the preceding 4 quarterly periods.
498	498	26 (1.2) Beginning July 1, 2011, a retailer having a
499	499
500	500
501	501
502	502
503	503
504	504	SB1841 - 13 - LRB103 25906 HLH 52257 b
505	505
506	506
507	507	SB1841- 14 -LRB103 25906 HLH 52257 b SB1841 - 14 - LRB103 25906 HLH 52257 b
508	508	SB1841 - 14 - LRB103 25906 HLH 52257 b
509	509	1 contract with a person located in this State under which:
510	510	2 (A) the retailer sells the same or substantially
511	511	3 similar line of products as the person located in this
512	512	4 State and does so using an identical or substantially
513	513	5 similar name, trade name, or trademark as the person
514	514	6 located in this State; and
515	515	7 (B) the retailer provides a commission or other
516	516	8 consideration to the person located in this State
517	517	9 based upon the sale of tangible personal property by
518	518	10 the retailer.
519	519	11 The provisions of this paragraph (1.2) shall apply
520	520	12 only if the cumulative gross receipts from sales of
521	521	13 tangible personal property by the retailer to customers in
522	522	14 this State under all such contracts exceed $10,000 during
523	523	15 the preceding 4 quarterly periods ending on the last day
524	524	16 of March, June, September, and December.
525	525	17 (2) (Blank).
526	526	18 (3) (Blank).
527	527	19 (4) (Blank).
528	528	20 (5) (Blank).
529	529	21 (6) (Blank).
530	530	22 (7) (Blank).
531	531	23 (8) (Blank).
532	532	24 (9) Beginning October 1, 2018, a retailer making sales
533	533	25 of tangible personal property to purchasers in Illinois
534	534	26 from outside of Illinois if:
535	535
536	536
537	537
538	538
539	539
540	540	SB1841 - 14 - LRB103 25906 HLH 52257 b
541	541
542	542
543	543	SB1841- 15 -LRB103 25906 HLH 52257 b SB1841 - 15 - LRB103 25906 HLH 52257 b
544	544	SB1841 - 15 - LRB103 25906 HLH 52257 b
545	545	1 (A) the cumulative gross receipts from sales of
546	546	2 tangible personal property to purchasers in Illinois
547	547	3 are $100,000 or more; or
548	548	4 (B) the retailer enters into 200 or more separate
549	549	5 transactions for the sale of tangible personal
550	550	6 property to purchasers in Illinois.
551	551	7 The retailer shall determine on a quarterly basis,
552	552	8 ending on the last day of March, June, September, and
553	553	9 December, whether he or she meets the criteria of either
554	554	10 subparagraph (A) or (B) of this paragraph (9) for the
555	555	11 preceding 12-month period. If the retailer meets the
556	556	12 threshold of either subparagraph (A) or (B) for a 12-month
557	557	13 period, he or she is considered a retailer maintaining a
558	558	14 place of business in this State and is required to collect
559	559	15 and remit the tax imposed under this Act and file returns
560	560	16 for one year. At the end of that one-year period, the
561	561	17 retailer shall determine whether he or she met the
562	562	18 threshold of either subparagraph (A) or (B) during the
563	563	19 preceding 12-month period. If the retailer met the
564	564	20 criteria in either subparagraph (A) or (B) for the
565	565	21 preceding 12-month period, he or she is considered a
566	566	22 retailer maintaining a place of business in this State and
567	567	23 is required to collect and remit the tax imposed under
568	568	24 this Act and file returns for the subsequent year. If at
569	569	25 the end of a one-year period a retailer that was required
570	570	26 to collect and remit the tax imposed under this Act
571	571
572	572
573	573
574	574
575	575
576	576	SB1841 - 15 - LRB103 25906 HLH 52257 b
577	577
578	578
579	579	SB1841- 16 -LRB103 25906 HLH 52257 b SB1841 - 16 - LRB103 25906 HLH 52257 b
580	580	SB1841 - 16 - LRB103 25906 HLH 52257 b
581	581	1 determines that he or she did not meet the threshold in
582	582	2 either subparagraph (A) or (B) during the preceding
583	583	3 12-month period, the retailer shall subsequently determine
584	584	4 on a quarterly basis, ending on the last day of March,
585	585	5 June, September, and December, whether he or she meets the
586	586	6 threshold of either subparagraph (A) or (B) for the
587	587	7 preceding 12-month period.
588	588	8 Beginning January 1, 2020, neither the gross receipts
589	589	9 from nor the number of separate transactions for sales of
590	590	10 tangible personal property to purchasers in Illinois that
591	591	11 a retailer makes through a marketplace facilitator and for
592	592	12 which the retailer has received a certification from the
593	593	13 marketplace facilitator pursuant to Section 2d of this Act
594	594	14 shall be included for purposes of determining whether he
595	595	15 or she has met the thresholds of this paragraph (9).
596	596	16 (10) Beginning January 1, 2020, a marketplace
597	597	17 facilitator that meets a threshold set forth in subsection
598	598	18 (b) of Section 2d of this Act.
599	599	19 "Bulk vending machine" means a vending machine, containing
600	600	20 unsorted confections, nuts, toys, or other items designed
601	601	21 primarily to be used or played with by children which, when a
602	602	22 coin or coins of a denomination not larger than $0.50 are
603	603	23 inserted, are dispensed in equal portions, at random and
604	604	24 without selection by the customer.
605	605	25 As used in Section 3-10, "manufactured home" means a
606	606	26 factory-assembled, completely integrated structure designed
607	607
608	608
609	609
610	610
611	611
612	612	SB1841 - 16 - LRB103 25906 HLH 52257 b
613	613
614	614
615	615	SB1841- 17 -LRB103 25906 HLH 52257 b SB1841 - 17 - LRB103 25906 HLH 52257 b
616	616	SB1841 - 17 - LRB103 25906 HLH 52257 b
617	617	1 for permanent habitation that:
618	618	2 (1) is designed to be used as a single-family dwelling
619	619	3 which complies with the standards established under 42
620	620	4 U.S.C. 70;
621	621	5 (2) is transportable in one or more sections;
622	622	6 (3) is installed according to the manufacturer's
623	623	7 instructions and connected to residential utilities for
624	624	8 year-round occupancy; and
625	625	9 (4) contains an area of at least 320 square feet.
626	626	10 (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 1-1-20;
627	627	11 101-604, eff. 1-1-20; 102-353, eff. 1-1-22.)
628	628	12 (35 ILCS 105/3-10)
629	629	13 Sec. 3-10. Rate of tax. Unless otherwise provided in this
630	630	14 Section, the tax imposed by this Act is at the rate of 6.25% of
631	631	15 either the selling price or the fair market value, if any, of
632	632	16 the tangible personal property. In all cases where property
633	633	17 functionally used or consumed is the same as the property that
634	634	18 was purchased at retail, then the tax is imposed on the selling
635	635	19 price of the property. In all cases where property
636	636	20 functionally used or consumed is a by-product or waste product
637	637	21 that has been refined, manufactured, or produced from property
638	638	22 purchased at retail, then the tax is imposed on the lower of
639	639	23 the fair market value, if any, of the specific property so used
640	640	24 in this State or on the selling price of the property purchased
641	641	25 at retail. For purposes of this Section "fair market value"
642	642
643	643
644	644
645	645
646	646
647	647	SB1841 - 17 - LRB103 25906 HLH 52257 b
648	648
649	649
650	650	SB1841- 18 -LRB103 25906 HLH 52257 b SB1841 - 18 - LRB103 25906 HLH 52257 b
651	651	SB1841 - 18 - LRB103 25906 HLH 52257 b
652	652	1 means the price at which property would change hands between a
653	653	2 willing buyer and a willing seller, neither being under any
654	654	3 compulsion to buy or sell and both having reasonable knowledge
655	655	4 of the relevant facts. The fair market value shall be
656	656	5 established by Illinois sales by the taxpayer of the same
657	657	6 property as that functionally used or consumed, or if there
658	658	7 are no such sales by the taxpayer, then comparable sales or
659	659	8 purchases of property of like kind and character in Illinois.
660	660	9 Beginning on July 1, 2000 and through December 31, 2000,
661	661	10 with respect to motor fuel, as defined in Section 1.1 of the
662	662	11 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
663	663	12 the Use Tax Act, the tax is imposed at the rate of 1.25%.
664	664	13 Beginning on August 6, 2010 through August 15, 2010, and
665	665	14 beginning again on August 5, 2022 through August 14, 2022,
666	666	15 with respect to sales tax holiday items as defined in Section
667	667	16 3-6 of this Act, the tax is imposed at the rate of 1.25%.
668	668	17 With respect to gasohol, the tax imposed by this Act
669	669	18 applies to (i) 70% of the proceeds of sales made on or after
670	670	19 January 1, 1990, and before July 1, 2003, (ii) 80% of the
671	671	20 proceeds of sales made on or after July 1, 2003 and on or
672	672	21 before July 1, 2017, and (iii) 100% of the proceeds of sales
673	673	22 made thereafter. If, at any time, however, the tax under this
674	674	23 Act on sales of gasohol is imposed at the rate of 1.25%, then
675	675	24 the tax imposed by this Act applies to 100% of the proceeds of
676	676	25 sales of gasohol made during that time.
677	677	26 With respect to majority blended ethanol fuel, the tax
678	678
679	679
680	680
681	681
682	682
683	683	SB1841 - 18 - LRB103 25906 HLH 52257 b
684	684
685	685
686	686	SB1841- 19 -LRB103 25906 HLH 52257 b SB1841 - 19 - LRB103 25906 HLH 52257 b
687	687	SB1841 - 19 - LRB103 25906 HLH 52257 b
688	688	1 imposed by this Act does not apply to the proceeds of sales
689	689	2 made on or after July 1, 2003 and on or before December 31,
690	690	3 2023 but applies to 100% of the proceeds of sales made
691	691	4 thereafter.
692	692	5 With respect to biodiesel blends with no less than 1% and
693	693	6 no more than 10% biodiesel, the tax imposed by this Act applies
694	694	7 to (i) 80% of the proceeds of sales made on or after July 1,
695	695	8 2003 and on or before December 31, 2018 and (ii) 100% of the
696	696	9 proceeds of sales made after December 31, 2018 and before
697	697	10 January 1, 2024. On and after January 1, 2024 and on or before
698	698	11 December 31, 2030, the taxation of biodiesel, renewable
699	699	12 diesel, and biodiesel blends shall be as provided in Section
700	700	13 3-5.1. If, at any time, however, the tax under this Act on
701	701	14 sales of biodiesel blends with no less than 1% and no more than
702	702	15 10% biodiesel is imposed at the rate of 1.25%, then the tax
703	703	16 imposed by this Act applies to 100% of the proceeds of sales of
704	704	17 biodiesel blends with no less than 1% and no more than 10%
705	705	18 biodiesel made during that time.
706	706	19 With respect to biodiesel and biodiesel blends with more
707	707	20 than 10% but no more than 99% biodiesel, the tax imposed by
708	708	21 this Act does not apply to the proceeds of sales made on or
709	709	22 after July 1, 2003 and on or before December 31, 2023. On and
710	710	23 after January 1, 2024 and on or before December 31, 2030, the
711	711	24 taxation of biodiesel, renewable diesel, and biodiesel blends
712	712	25 shall be as provided in Section 3-5.1.
713	713	26 On and after January 1, 2024, with respect to the sale of a
714	714
715	715
716	716
717	717
718	718
719	719	SB1841 - 19 - LRB103 25906 HLH 52257 b
720	720
721	721
722	722	SB1841- 20 -LRB103 25906 HLH 52257 b SB1841 - 20 - LRB103 25906 HLH 52257 b
723	723	SB1841 - 20 - LRB103 25906 HLH 52257 b
724	724	1 manufactured home, as defined in Section 2, if the purchase is
725	725	2 the first purchase of the manufactured home for use as a
726	726	3 dwelling and the purchaser who will use the home as a dwelling
727	727	4 certifies that the manufactured home will be affixed to a
728	728	5 permanent foundation in the State so that the manufactured
729	729	6 home is deemed to be real property under the Conveyance and
730	730	7 Encumbrance of Manufactured Homes as Real Property and
731	731	8 Severance Act, then the tax imposed by this Act applies to 50%
732	732	9 of the selling price of the manufactured home. The seller,
733	733	10 whether acting as a construction contractor or not, must
734	734	11 retain the purchaser's certification in his or her books and
735	735	12 records for a period of 7 years after the date of the sale.
736	736	13 This paragraph is exempt from the provisions of Section 3-90.
737	737	14 Until July 1, 2022 and beginning again on July 1, 2023,
738	738	15 with respect to food for human consumption that is to be
739	739	16 consumed off the premises where it is sold (other than
740	740	17 alcoholic beverages, food consisting of or infused with adult
741	741	18 use cannabis, soft drinks, and food that has been prepared for
742	742	19 immediate consumption), the tax is imposed at the rate of 1%.
743	743	20 Beginning on July 1, 2022 and until July 1, 2023, with respect
744	744	21 to food for human consumption that is to be consumed off the
745	745	22 premises where it is sold (other than alcoholic beverages,
746	746	23 food consisting of or infused with adult use cannabis, soft
747	747	24 drinks, and food that has been prepared for immediate
748	748	25 consumption), the tax is imposed at the rate of 0%.
749	749	26 With respect to prescription and nonprescription
750	750
751	751
752	752
753	753
754	754
755	755	SB1841 - 20 - LRB103 25906 HLH 52257 b
756	756
757	757
758	758	SB1841- 21 -LRB103 25906 HLH 52257 b SB1841 - 21 - LRB103 25906 HLH 52257 b
759	759	SB1841 - 21 - LRB103 25906 HLH 52257 b
760	760	1 medicines, drugs, medical appliances, products classified as
761	761	2 Class III medical devices by the United States Food and Drug
762	762	3 Administration that are used for cancer treatment pursuant to
763	763	4 a prescription, as well as any accessories and components
764	764	5 related to those devices, modifications to a motor vehicle for
765	765	6 the purpose of rendering it usable by a person with a
766	766	7 disability, and insulin, blood sugar testing materials,
767	767	8 syringes, and needles used by human diabetics, the tax is
768	768	9 imposed at the rate of 1%. For the purposes of this Section,
769	769	10 until September 1, 2009: the term "soft drinks" means any
770	770	11 complete, finished, ready-to-use, non-alcoholic drink, whether
771	771	12 carbonated or not, including, but not limited to, soda water,
772	772	13 cola, fruit juice, vegetable juice, carbonated water, and all
773	773	14 other preparations commonly known as soft drinks of whatever
774	774	15 kind or description that are contained in any closed or sealed
775	775	16 bottle, can, carton, or container, regardless of size; but
776	776	17 "soft drinks" does not include coffee, tea, non-carbonated
777	777	18 water, infant formula, milk or milk products as defined in the
778	778	19 Grade A Pasteurized Milk and Milk Products Act, or drinks
779	779	20 containing 50% or more natural fruit or vegetable juice.
780	780	21 Notwithstanding any other provisions of this Act,
781	781	22 beginning September 1, 2009, "soft drinks" means non-alcoholic
782	782	23 beverages that contain natural or artificial sweeteners. "Soft
783	783	24 drinks" does do not include beverages that contain milk or
784	784	25 milk products, soy, rice or similar milk substitutes, or
785	785	26 greater than 50% of vegetable or fruit juice by volume.
786	786
787	787
788	788
789	789
790	790
791	791	SB1841 - 21 - LRB103 25906 HLH 52257 b
792	792
793	793
794	794	SB1841- 22 -LRB103 25906 HLH 52257 b SB1841 - 22 - LRB103 25906 HLH 52257 b
795	795	SB1841 - 22 - LRB103 25906 HLH 52257 b
796	796	1 Until August 1, 2009, and notwithstanding any other
797	797	2 provisions of this Act, "food for human consumption that is to
798	798	3 be consumed off the premises where it is sold" includes all
799	799	4 food sold through a vending machine, except soft drinks and
800	800	5 food products that are dispensed hot from a vending machine,
801	801	6 regardless of the location of the vending machine. Beginning
802	802	7 August 1, 2009, and notwithstanding any other provisions of
803	803	8 this Act, "food for human consumption that is to be consumed
804	804	9 off the premises where it is sold" includes all food sold
805	805	10 through a vending machine, except soft drinks, candy, and food
806	806	11 products that are dispensed hot from a vending machine,
807	807	12 regardless of the location of the vending machine.
808	808	13 Notwithstanding any other provisions of this Act,
809	809	14 beginning September 1, 2009, "food for human consumption that
810	810	15 is to be consumed off the premises where it is sold" does not
811	811	16 include candy. For purposes of this Section, "candy" means a
812	812	17 preparation of sugar, honey, or other natural or artificial
813	813	18 sweeteners in combination with chocolate, fruits, nuts or
814	814	19 other ingredients or flavorings in the form of bars, drops, or
815	815	20 pieces. "Candy" does not include any preparation that contains
816	816	21 flour or requires refrigeration.
817	817	22 Notwithstanding any other provisions of this Act,
818	818	23 beginning September 1, 2009, "nonprescription medicines and
819	819	24 drugs" does not include grooming and hygiene products. For
820	820	25 purposes of this Section, "grooming and hygiene products"
821	821	26 includes, but is not limited to, soaps and cleaning solutions,
822	822
823	823
824	824
825	825
826	826
827	827	SB1841 - 22 - LRB103 25906 HLH 52257 b
828	828
829	829
830	830	SB1841- 23 -LRB103 25906 HLH 52257 b SB1841 - 23 - LRB103 25906 HLH 52257 b
831	831	SB1841 - 23 - LRB103 25906 HLH 52257 b
832	832	1 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
833	833	2 lotions and screens, unless those products are available by
834	834	3 prescription only, regardless of whether the products meet the
835	835	4 definition of "over-the-counter-drugs". For the purposes of
836	836	5 this paragraph, "over-the-counter-drug" means a drug for human
837	837	6 use that contains a label that identifies the product as a drug
838	838	7 as required by 21 CFR C.F.R. 201.66. The
839	839	8 "over-the-counter-drug" label includes:
840	840	9 (A) a A "Drug Facts" panel; or
841	841	10 (B) a A statement of the "active ingredient(s)" with a
842	842	11 list of those ingredients contained in the compound,
843	843	12 substance or preparation.
844	844	13 Beginning on January 1, 2014 (the effective date of Public
845	845	14 Act 98-122) this amendatory Act of the 98th General Assembly,
846	846	15 "prescription and nonprescription medicines and drugs"
847	847	16 includes medical cannabis purchased from a registered
848	848	17 dispensing organization under the Compassionate Use of Medical
849	849	18 Cannabis Program Act.
850	850	19 As used in this Section, "adult use cannabis" means
851	851	20 cannabis subject to tax under the Cannabis Cultivation
852	852	21 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
853	853	22 and does not include cannabis subject to tax under the
854	854	23 Compassionate Use of Medical Cannabis Program Act.
855	855	24 If the property that is purchased at retail from a
856	856	25 retailer is acquired outside Illinois and used outside
857	857	26 Illinois before being brought to Illinois for use here and is
858	858
859	859
860	860
861	861
862	862
863	863	SB1841 - 23 - LRB103 25906 HLH 52257 b
864	864
865	865
866	866	SB1841- 24 -LRB103 25906 HLH 52257 b SB1841 - 24 - LRB103 25906 HLH 52257 b
867	867	SB1841 - 24 - LRB103 25906 HLH 52257 b
868	868	1 taxable under this Act, the "selling price" on which the tax is
869	869	2 computed shall be reduced by an amount that represents a
870	870	3 reasonable allowance for depreciation for the period of prior
871	871	4 out-of-state use.
872	872	5 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
873	873	6 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
874	874	7 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
875	875	8 102-700, Article 65, Section 65-5, eff. 4-19-22; revised
876	876	9 5-27-22.)
877	877	10 Section 10. The Retailers' Occupation Tax Act is amended
878	878	11 by changing Sections 1 and 2-10 as follows:
879	879	12 (35 ILCS 120/1) (from Ch. 120, par. 440)
880	880	13 Sec. 1. Definitions. "Sale at retail" means any transfer
881	881	14 of the ownership of or title to tangible personal property to a
882	882	15 purchaser, for the purpose of use or consumption, and not for
883	883	16 the purpose of resale in any form as tangible personal
884	884	17 property to the extent not first subjected to a use for which
885	885	18 it was purchased, for a valuable consideration: Provided that
886	886	19 the property purchased is deemed to be purchased for the
887	887	20 purpose of resale, despite first being used, to the extent to
888	888	21 which it is resold as an ingredient of an intentionally
889	889	22 produced product or byproduct of manufacturing. For this
890	890	23 purpose, slag produced as an incident to manufacturing pig
891	891	24 iron or steel and sold is considered to be an intentionally
892	892
893	893
894	894
895	895
896	896
897	897	SB1841 - 24 - LRB103 25906 HLH 52257 b
898	898
899	899
900	900	SB1841- 25 -LRB103 25906 HLH 52257 b SB1841 - 25 - LRB103 25906 HLH 52257 b
901	901	SB1841 - 25 - LRB103 25906 HLH 52257 b
902	902	1 produced byproduct of manufacturing. Transactions whereby the
903	903	2 possession of the property is transferred but the seller
904	904	3 retains the title as security for payment of the selling price
905	905	4 shall be deemed to be sales.
906	906	5 "Sale at retail" shall be construed to include any
907	907	6 transfer of the ownership of or title to tangible personal
908	908	7 property to a purchaser, for use or consumption by any other
909	909	8 person to whom such purchaser may transfer the tangible
910	910	9 personal property without a valuable consideration, and to
911	911	10 include any transfer, whether made for or without a valuable
912	912	11 consideration, for resale in any form as tangible personal
913	913	12 property unless made in compliance with Section 2c of this
914	914	13 Act.
915	915	14 Sales of tangible personal property, which property, to
916	916	15 the extent not first subjected to a use for which it was
917	917	16 purchased, as an ingredient or constituent, goes into and
918	918	17 forms a part of tangible personal property subsequently the
919	919	18 subject of a "Sale at retail", are not sales at retail as
920	920	19 defined in this Act: Provided that the property purchased is
921	921	20 deemed to be purchased for the purpose of resale, despite
922	922	21 first being used, to the extent to which it is resold as an
923	923	22 ingredient of an intentionally produced product or byproduct
924	924	23 of manufacturing.
925	925	24 "Sale at retail" shall be construed to include any
926	926	25 Illinois florist's sales transaction in which the purchase
927	927	26 order is received in Illinois by a florist and the sale is for
928	928
929	929
930	930
931	931
932	932
933	933	SB1841 - 25 - LRB103 25906 HLH 52257 b
934	934
935	935
936	936	SB1841- 26 -LRB103 25906 HLH 52257 b SB1841 - 26 - LRB103 25906 HLH 52257 b
937	937	SB1841 - 26 - LRB103 25906 HLH 52257 b
938	938	1 use or consumption, but the Illinois florist has a florist in
939	939	2 another state deliver the property to the purchaser or the
940	940	3 purchaser's donee in such other state.
941	941	4 Nonreusable tangible personal property that is used by
942	942	5 persons engaged in the business of operating a restaurant,
943	943	6 cafeteria, or drive-in is a sale for resale when it is
944	944	7 transferred to customers in the ordinary course of business as
945	945	8 part of the sale of food or beverages and is used to deliver,
946	946	9 package, or consume food or beverages, regardless of where
947	947	10 consumption of the food or beverages occurs. Examples of those
948	948	11 items include, but are not limited to nonreusable, paper and
949	949	12 plastic cups, plates, baskets, boxes, sleeves, buckets or
950	950	13 other containers, utensils, straws, placemats, napkins, doggie
951	951	14 bags, and wrapping or packaging materials that are transferred
952	952	15 to customers as part of the sale of food or beverages in the
953	953	16 ordinary course of business.
954	954	17 The purchase, employment and transfer of such tangible
955	955	18 personal property as newsprint and ink for the primary purpose
956	956	19 of conveying news (with or without other information) is not a
957	957	20 purchase, use or sale of tangible personal property.
958	958	21 A person whose activities are organized and conducted
959	959	22 primarily as a not-for-profit service enterprise, and who
960	960	23 engages in selling tangible personal property at retail
961	961	24 (whether to the public or merely to members and their guests)
962	962	25 is engaged in the business of selling tangible personal
963	963	26 property at retail with respect to such transactions,
964	964
965	965
966	966
967	967
968	968
969	969	SB1841 - 26 - LRB103 25906 HLH 52257 b
970	970
971	971
972	972	SB1841- 27 -LRB103 25906 HLH 52257 b SB1841 - 27 - LRB103 25906 HLH 52257 b
973	973	SB1841 - 27 - LRB103 25906 HLH 52257 b
974	974	1 excepting only a person organized and operated exclusively for
975	975	2 charitable, religious or educational purposes either (1), to
976	976	3 the extent of sales by such person to its members, students,
977	977	4 patients or inmates of tangible personal property to be used
978	978	5 primarily for the purposes of such person, or (2), to the
979	979	6 extent of sales by such person of tangible personal property
980	980	7 which is not sold or offered for sale by persons organized for
981	981	8 profit. The selling of school books and school supplies by
982	982	9 schools at retail to students is not "primarily for the
983	983	10 purposes of" the school which does such selling. The
984	984	11 provisions of this paragraph shall not apply to nor subject to
985	985	12 taxation occasional dinners, socials or similar activities of
986	986	13 a person organized and operated exclusively for charitable,
987	987	14 religious or educational purposes, whether or not such
988	988	15 activities are open to the public.
989	989	16 A person who is the recipient of a grant or contract under
990	990	17 Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
991	991	18 serves meals to participants in the federal Nutrition Program
992	992	19 for the Elderly in return for contributions established in
993	993	20 amount by the individual participant pursuant to a schedule of
994	994	21 suggested fees as provided for in the federal Act is not
995	995	22 engaged in the business of selling tangible personal property
996	996	23 at retail with respect to such transactions.
997	997	24 "Purchaser" means anyone who, through a sale at retail,
998	998	25 acquires the ownership of or title to tangible personal
999	999	26 property for a valuable consideration.
1000	1000
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005	SB1841 - 27 - LRB103 25906 HLH 52257 b
1006	1006
1007	1007
1008	1008	SB1841- 28 -LRB103 25906 HLH 52257 b SB1841 - 28 - LRB103 25906 HLH 52257 b
1009	1009	SB1841 - 28 - LRB103 25906 HLH 52257 b
1010	1010	1 "Reseller of motor fuel" means any person engaged in the
1011	1011	2 business of selling or delivering or transferring title of
1012	1012	3 motor fuel to another person other than for use or
1013	1013	4 consumption. No person shall act as a reseller of motor fuel
1014	1014	5 within this State without first being registered as a reseller
1015	1015	6 pursuant to Section 2c or a retailer pursuant to Section 2a.
1016	1016	7 "Selling price" or the "amount of sale" means the
1017	1017	8 consideration for a sale valued in money whether received in
1018	1018	9 money or otherwise, including cash, credits, property, other
1019	1019	10 than as hereinafter provided, and services, but, prior to
1020	1020	11 January 1, 2020 and beginning again on January 1, 2022, not
1021	1021	12 including the value of or credit given for traded-in tangible
1022	1022	13 personal property where the item that is traded-in is of like
1023	1023	14 kind and character as that which is being sold; beginning
1024	1024	15 January 1, 2020 and until January 1, 2022, "selling price"
1025	1025	16 includes the portion of the value of or credit given for
1026	1026	17 traded-in motor vehicles of the First Division as defined in
1027	1027	18 Section 1-146 of the Illinois Vehicle Code of like kind and
1028	1028	19 character as that which is being sold that exceeds $10,000.
1029	1029	20 "Selling price" shall be determined without any deduction on
1030	1030	21 account of the cost of the property sold, the cost of materials
1031	1031	22 used, labor or service cost or any other expense whatsoever,
1032	1032	23 but does not include charges that are added to prices by
1033	1033	24 sellers on account of the seller's tax liability under this
1034	1034	25 Act, or on account of the seller's duty to collect, from the
1035	1035	26 purchaser, the tax that is imposed by the Use Tax Act, or,
1036	1036
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041	SB1841 - 28 - LRB103 25906 HLH 52257 b
1042	1042
1043	1043
1044	1044	SB1841- 29 -LRB103 25906 HLH 52257 b SB1841 - 29 - LRB103 25906 HLH 52257 b
1045	1045	SB1841 - 29 - LRB103 25906 HLH 52257 b
1046	1046	1 except as otherwise provided with respect to any cigarette tax
1047	1047	2 imposed by a home rule unit, on account of the seller's tax
1048	1048	3 liability under any local occupation tax administered by the
1049	1049	4 Department, or, except as otherwise provided with respect to
1050	1050	5 any cigarette tax imposed by a home rule unit on account of the
1051	1051	6 seller's duty to collect, from the purchasers, the tax that is
1052	1052	7 imposed under any local use tax administered by the
1053	1053	8 Department. Effective December 1, 1985, "selling price" shall
1054	1054	9 include charges that are added to prices by sellers on account
1055	1055	10 of the seller's tax liability under the Cigarette Tax Act, on
1056	1056	11 account of the sellers' duty to collect, from the purchaser,
1057	1057	12 the tax imposed under the Cigarette Use Tax Act, and on account
1058	1058	13 of the seller's duty to collect, from the purchaser, any
1059	1059	14 cigarette tax imposed by a home rule unit.
1060	1060	15 Notwithstanding any law to the contrary, for any motor
1061	1061	16 vehicle, as defined in Section 1-146 of the Vehicle Code, that
1062	1062	17 is sold on or after January 1, 2015 for the purpose of leasing
1063	1063	18 the vehicle for a defined period that is longer than one year
1064	1064	19 and (1) is a motor vehicle of the second division that: (A) is
1065	1065	20 a self-contained motor vehicle designed or permanently
1066	1066	21 converted to provide living quarters for recreational,
1067	1067	22 camping, or travel use, with direct walk through access to the
1068	1068	23 living quarters from the driver's seat; (B) is of the van
1069	1069	24 configuration designed for the transportation of not less than
1070	1070	25 7 nor more than 16 passengers; or (C) has a gross vehicle
1071	1071	26 weight rating of 8,000 pounds or less or (2) is a motor vehicle
1072	1072
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077	SB1841 - 29 - LRB103 25906 HLH 52257 b
1078	1078
1079	1079
1080	1080	SB1841- 30 -LRB103 25906 HLH 52257 b SB1841 - 30 - LRB103 25906 HLH 52257 b
1081	1081	SB1841 - 30 - LRB103 25906 HLH 52257 b
1082	1082	1 of the first division, "selling price" or "amount of sale"
1083	1083	2 means the consideration received by the lessor pursuant to the
1084	1084	3 lease contract, including amounts due at lease signing and all
1085	1085	4 monthly or other regular payments charged over the term of the
1086	1086	5 lease. Also included in the selling price is any amount
1087	1087	6 received by the lessor from the lessee for the leased vehicle
1088	1088	7 that is not calculated at the time the lease is executed,
1089	1089	8 including, but not limited to, excess mileage charges and
1090	1090	9 charges for excess wear and tear. For sales that occur in
1091	1091	10 Illinois, with respect to any amount received by the lessor
1092	1092	11 from the lessee for the leased vehicle that is not calculated
1093	1093	12 at the time the lease is executed, the lessor who purchased the
1094	1094	13 motor vehicle does not incur the tax imposed by the Use Tax Act
1095	1095	14 on those amounts, and the retailer who makes the retail sale of
1096	1096	15 the motor vehicle to the lessor is not required to collect the
1097	1097	16 tax imposed by the Use Tax Act or to pay the tax imposed by
1098	1098	17 this Act on those amounts. However, the lessor who purchased
1099	1099	18 the motor vehicle assumes the liability for reporting and
1100	1100	19 paying the tax on those amounts directly to the Department in
1101	1101	20 the same form (Illinois Retailers' Occupation Tax, and local
1102	1102	21 retailers' occupation taxes, if applicable) in which the
1103	1103	22 retailer would have reported and paid such tax if the retailer
1104	1104	23 had accounted for the tax to the Department. For amounts
1105	1105	24 received by the lessor from the lessee that are not calculated
1106	1106	25 at the time the lease is executed, the lessor must file the
1107	1107	26 return and pay the tax to the Department by the due date
1108	1108
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113	SB1841 - 30 - LRB103 25906 HLH 52257 b
1114	1114
1115	1115
1116	1116	SB1841- 31 -LRB103 25906 HLH 52257 b SB1841 - 31 - LRB103 25906 HLH 52257 b
1117	1117	SB1841 - 31 - LRB103 25906 HLH 52257 b
1118	1118	1 otherwise required by this Act for returns other than
1119	1119	2 transaction returns. If the retailer is entitled under this
1120	1120	3 Act to a discount for collecting and remitting the tax imposed
1121	1121	4 under this Act to the Department with respect to the sale of
1122	1122	5 the motor vehicle to the lessor, then the right to the discount
1123	1123	6 provided in this Act shall be transferred to the lessor with
1124	1124	7 respect to the tax paid by the lessor for any amount received
1125	1125	8 by the lessor from the lessee for the leased vehicle that is
1126	1126	9 not calculated at the time the lease is executed; provided
1127	1127	10 that the discount is only allowed if the return is timely filed
1128	1128	11 and for amounts timely paid. The "selling price" of a motor
1129	1129	12 vehicle that is sold on or after January 1, 2015 for the
1130	1130	13 purpose of leasing for a defined period of longer than one year
1131	1131	14 shall not be reduced by the value of or credit given for
1132	1132	15 traded-in tangible personal property owned by the lessor, nor
1133	1133	16 shall it be reduced by the value of or credit given for
1134	1134	17 traded-in tangible personal property owned by the lessee,
1135	1135	18 regardless of whether the trade-in value thereof is assigned
1136	1136	19 by the lessee to the lessor. In the case of a motor vehicle
1137	1137	20 that is sold for the purpose of leasing for a defined period of
1138	1138	21 longer than one year, the sale occurs at the time of the
1139	1139	22 delivery of the vehicle, regardless of the due date of any
1140	1140	23 lease payments. A lessor who incurs a Retailers' Occupation
1141	1141	24 Tax liability on the sale of a motor vehicle coming off lease
1142	1142	25 may not take a credit against that liability for the Use Tax
1143	1143	26 the lessor paid upon the purchase of the motor vehicle (or for
1144	1144
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149	SB1841 - 31 - LRB103 25906 HLH 52257 b
1150	1150
1151	1151
1152	1152	SB1841- 32 -LRB103 25906 HLH 52257 b SB1841 - 32 - LRB103 25906 HLH 52257 b
1153	1153	SB1841 - 32 - LRB103 25906 HLH 52257 b
1154	1154	1 any tax the lessor paid with respect to any amount received by
1155	1155	2 the lessor from the lessee for the leased vehicle that was not
1156	1156	3 calculated at the time the lease was executed) if the selling
1157	1157	4 price of the motor vehicle at the time of purchase was
1158	1158	5 calculated using the definition of "selling price" as defined
1159	1159	6 in this paragraph. Notwithstanding any other provision of this
1160	1160	7 Act to the contrary, lessors shall file all returns and make
1161	1161	8 all payments required under this paragraph to the Department
1162	1162	9 by electronic means in the manner and form as required by the
1163	1163	10 Department. This paragraph does not apply to leases of motor
1164	1164	11 vehicles for which, at the time the lease is entered into, the
1165	1165	12 term of the lease is not a defined period, including leases
1166	1166	13 with a defined initial period with the option to continue the
1167	1167	14 lease on a month-to-month or other basis beyond the initial
1168	1168	15 defined period.
1169	1169	16 The phrase "like kind and character" shall be liberally
1170	1170	17 construed (including but not limited to any form of motor
1171	1171	18 vehicle for any form of motor vehicle, or any kind of farm or
1172	1172	19 agricultural implement for any other kind of farm or
1173	1173	20 agricultural implement), while not including a kind of item
1174	1174	21 which, if sold at retail by that retailer, would be exempt from
1175	1175	22 retailers' occupation tax and use tax as an isolated or
1176	1176	23 occasional sale.
1177	1177	24 "Gross receipts" from the sales of tangible personal
1178	1178	25 property at retail means the total selling price or the amount
1179	1179	26 of such sales, as hereinbefore defined. In the case of charge
1180	1180
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185	SB1841 - 32 - LRB103 25906 HLH 52257 b
1186	1186
1187	1187
1188	1188	SB1841- 33 -LRB103 25906 HLH 52257 b SB1841 - 33 - LRB103 25906 HLH 52257 b
1189	1189	SB1841 - 33 - LRB103 25906 HLH 52257 b
1190	1190	1 and time sales, the amount thereof shall be included only as
1191	1191	2 and when payments are received by the seller. Receipts or
1192	1192	3 other consideration derived by a seller from the sale,
1193	1193	4 transfer or assignment of accounts receivable to a wholly
1194	1194	5 owned subsidiary will not be deemed payments prior to the time
1195	1195	6 the purchaser makes payment on such accounts.
1196	1196	7 "Department" means the Department of Revenue.
1197	1197	8 "Person" means any natural individual, firm, partnership,
1198	1198	9 association, joint stock company, joint adventure, public or
1199	1199	10 private corporation, limited liability company, or a receiver,
1200	1200	11 executor, trustee, guardian or other representative appointed
1201	1201	12 by order of any court.
1202	1202	13 The isolated or occasional sale of tangible personal
1203	1203	14 property at retail by a person who does not hold himself out as
1204	1204	15 being engaged (or who does not habitually engage) in selling
1205	1205	16 such tangible personal property at retail, or a sale through a
1206	1206	17 bulk vending machine, does not constitute engaging in a
1207	1207	18 business of selling such tangible personal property at retail
1208	1208	19 within the meaning of this Act; provided that any person who is
1209	1209	20 engaged in a business which is not subject to the tax imposed
1210	1210	21 by this Act because of involving the sale of or a contract to
1211	1211	22 sell real estate or a construction contract to improve real
1212	1212	23 estate or a construction contract to engineer, install, and
1213	1213	24 maintain an integrated system of products, but who, in the
1214	1214	25 course of conducting such business, transfers tangible
1215	1215	26 personal property to users or consumers in the finished form
1216	1216
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221	SB1841 - 33 - LRB103 25906 HLH 52257 b
1222	1222
1223	1223
1224	1224	SB1841- 34 -LRB103 25906 HLH 52257 b SB1841 - 34 - LRB103 25906 HLH 52257 b
1225	1225	SB1841 - 34 - LRB103 25906 HLH 52257 b
1226	1226	1 in which it was purchased, and which does not become real
1227	1227	2 estate or was not engineered and installed, under any
1228	1228	3 provision of a construction contract or real estate sale or
1229	1229	4 real estate sales agreement entered into with some other
1230	1230	5 person arising out of or because of such nontaxable business,
1231	1231	6 is engaged in the business of selling tangible personal
1232	1232	7 property at retail to the extent of the value of the tangible
1233	1233	8 personal property so transferred. If, in such a transaction, a
1234	1234	9 separate charge is made for the tangible personal property so
1235	1235	10 transferred, the value of such property, for the purpose of
1236	1236	11 this Act, shall be the amount so separately charged, but not
1237	1237	12 less than the cost of such property to the transferor; if no
1238	1238	13 separate charge is made, the value of such property, for the
1239	1239	14 purposes of this Act, is the cost to the transferor of such
1240	1240	15 tangible personal property. Construction contracts for the
1241	1241	16 improvement of real estate consisting of engineering,
1242	1242	17 installation, and maintenance of voice, data, video, security,
1243	1243	18 and all telecommunication systems do not constitute engaging
1244	1244	19 in a business of selling tangible personal property at retail
1245	1245	20 within the meaning of this Act if they are sold at one
1246	1246	21 specified contract price.
1247	1247	22 A person who holds himself or herself out as being engaged
1248	1248	23 (or who habitually engages) in selling tangible personal
1249	1249	24 property at retail is a person engaged in the business of
1250	1250	25 selling tangible personal property at retail hereunder with
1251	1251	26 respect to such sales (and not primarily in a service
1252	1252
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257	SB1841 - 34 - LRB103 25906 HLH 52257 b
1258	1258
1259	1259
1260	1260	SB1841- 35 -LRB103 25906 HLH 52257 b SB1841 - 35 - LRB103 25906 HLH 52257 b
1261	1261	SB1841 - 35 - LRB103 25906 HLH 52257 b
1262	1262	1 occupation) notwithstanding the fact that such person designs
1263	1263	2 and produces such tangible personal property on special order
1264	1264	3 for the purchaser and in such a way as to render the property
1265	1265	4 of value only to such purchaser, if such tangible personal
1266	1266	5 property so produced on special order serves substantially the
1267	1267	6 same function as stock or standard items of tangible personal
1268	1268	7 property that are sold at retail.
1269	1269	8 Persons who engage in the business of transferring
1270	1270	9 tangible personal property upon the redemption of trading
1271	1271	10 stamps are engaged in the business of selling such property at
1272	1272	11 retail and shall be liable for and shall pay the tax imposed by
1273	1273	12 this Act on the basis of the retail value of the property
1274	1274	13 transferred upon redemption of such stamps.
1275	1275	14 "Bulk vending machine" means a vending machine, containing
1276	1276	15 unsorted confections, nuts, toys, or other items designed
1277	1277	16 primarily to be used or played with by children which, when a
1278	1278	17 coin or coins of a denomination not larger than $0.50 are
1279	1279	18 inserted, are dispensed in equal portions, at random and
1280	1280	19 without selection by the customer.
1281	1281	20 "Remote retailer" means a retailer that does not maintain
1282	1282	21 within this State, directly or by a subsidiary, an office,
1283	1283	22 distribution house, sales house, warehouse or other place of
1284	1284	23 business, or any agent or other representative operating
1285	1285	24 within this State under the authority of the retailer or its
1286	1286	25 subsidiary, irrespective of whether such place of business or
1287	1287	26 agent is located here permanently or temporarily or whether
1288	1288
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293	SB1841 - 35 - LRB103 25906 HLH 52257 b
1294	1294
1295	1295
1296	1296	SB1841- 36 -LRB103 25906 HLH 52257 b SB1841 - 36 - LRB103 25906 HLH 52257 b
1297	1297	SB1841 - 36 - LRB103 25906 HLH 52257 b
1298	1298	1 such retailer or subsidiary is licensed to do business in this
1299	1299	2 State.
1300	1300	3 "Marketplace" means a physical or electronic place, forum,
1301	1301	4 platform, application, or other method by which a marketplace
1302	1302	5 seller sells or offers to sell items.
1303	1303	6 "Marketplace facilitator" means a person who, pursuant to
1304	1304	7 an agreement with an unrelated third-party marketplace seller,
1305	1305	8 directly or indirectly through one or more affiliates
1306	1306	9 facilitates a retail sale by an unrelated third party
1307	1307	10 marketplace seller by:
1308	1308	11 (1) listing or advertising for sale by the marketplace
1309	1309	12 seller in a marketplace, tangible personal property that
1310	1310	13 is subject to tax under this Act; and
1311	1311	14 (2) either directly or indirectly, through agreements
1312	1312	15 or arrangements with third parties, collecting payment
1313	1313	16 from the customer and transmitting that payment to the
1314	1314	17 marketplace seller regardless of whether the marketplace
1315	1315	18 facilitator receives compensation or other consideration
1316	1316	19 in exchange for its services.
1317	1317	20 A person who provides advertising services, including
1318	1318	21 listing products for sale, is not considered a marketplace
1319	1319	22 facilitator, so long as the advertising service platform or
1320	1320	23 forum does not engage, directly or indirectly through one or
1321	1321	24 more affiliated persons, in the activities described in
1322	1322	25 paragraph (2) of this definition of "marketplace facilitator".
1323	1323	26 "Marketplace facilitator" does not include any person
1324	1324
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329	SB1841 - 36 - LRB103 25906 HLH 52257 b
1330	1330
1331	1331
1332	1332	SB1841- 37 -LRB103 25906 HLH 52257 b SB1841 - 37 - LRB103 25906 HLH 52257 b
1333	1333	SB1841 - 37 - LRB103 25906 HLH 52257 b
1334	1334	1 licensed under the Auction License Act. This exemption does
1335	1335	2 not apply to any person who is an Internet auction listing
1336	1336	3 service, as defined by the Auction License Act.
1337	1337	4 "Marketplace seller" means a person that makes sales
1338	1338	5 through a marketplace operated by an unrelated third party
1339	1339	6 marketplace facilitator.
1340	1340	7 As used in Section 2-10, "manufactured home" means a
1341	1341	8 factory-assembled, completely integrated structure designed
1342	1342	9 for permanent habitation that:
1343	1343	10 (1) is designed to be used as a single-family dwelling
1344	1344	11 which complies with the standards established under 42
1345	1345	12 U.S.C. 70;
1346	1346	13 (2) is transportable in one or more sections;
1347	1347	14 (3) is installed according to the manufacturer's
1348	1348	15 instructions and connected to residential utilities for
1349	1349	16 year-round occupancy; and
1350	1350	17 (4) contains an area of at least 320 square feet.
1351	1351	18 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
1352	1352	19 102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
1353	1353	20 5-13-22.)
1354	1354	21 (35 ILCS 120/2-10)
1355	1355	22 Sec. 2-10. Rate of tax. Unless otherwise provided in this
1356	1356	23 Section, the tax imposed by this Act is at the rate of 6.25% of
1357	1357	24 gross receipts from sales of tangible personal property made
1358	1358	25 in the course of business.
1359	1359
1360	1360
1361	1361
1362	1362
1363	1363
1364	1364	SB1841 - 37 - LRB103 25906 HLH 52257 b
1365	1365
1366	1366
1367	1367	SB1841- 38 -LRB103 25906 HLH 52257 b SB1841 - 38 - LRB103 25906 HLH 52257 b
1368	1368	SB1841 - 38 - LRB103 25906 HLH 52257 b
1369	1369	1 Beginning on July 1, 2000 and through December 31, 2000,
1370	1370	2 with respect to motor fuel, as defined in Section 1.1 of the
1371	1371	3 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
1372	1372	4 the Use Tax Act, the tax is imposed at the rate of 1.25%.
1373	1373	5 Beginning on August 6, 2010 through August 15, 2010, and
1374	1374	6 beginning again on August 5, 2022 through August 14, 2022,
1375	1375	7 with respect to sales tax holiday items as defined in Section
1376	1376	8 2-8 of this Act, the tax is imposed at the rate of 1.25%.
1377	1377	9 Within 14 days after July 1, 2000 (the effective date of
1378	1378	10 Public Act 91-872) this amendatory Act of the 91st General
1379	1379	11 Assembly, each retailer of motor fuel and gasohol shall cause
1380	1380	12 the following notice to be posted in a prominently visible
1381	1381	13 place on each retail dispensing device that is used to
1382	1382	14 dispense motor fuel or gasohol in the State of Illinois: "As of
1383	1383	15 July 1, 2000, the State of Illinois has eliminated the State's
1384	1384	16 share of sales tax on motor fuel and gasohol through December
1385	1385	17 31, 2000. The price on this pump should reflect the
1386	1386	18 elimination of the tax." The notice shall be printed in bold
1387	1387	19 print on a sign that is no smaller than 4 inches by 8 inches.
1388	1388	20 The sign shall be clearly visible to customers. Any retailer
1389	1389	21 who fails to post or maintain a required sign through December
1390	1390	22 31, 2000 is guilty of a petty offense for which the fine shall
1391	1391	23 be $500 per day per each retail premises where a violation
1392	1392	24 occurs.
1393	1393	25 With respect to gasohol, as defined in the Use Tax Act, the
1394	1394	26 tax imposed by this Act applies to (i) 70% of the proceeds of
1395	1395
1396	1396
1397	1397
1398	1398
1399	1399
1400	1400	SB1841 - 38 - LRB103 25906 HLH 52257 b
1401	1401
1402	1402
1403	1403	SB1841- 39 -LRB103 25906 HLH 52257 b SB1841 - 39 - LRB103 25906 HLH 52257 b
1404	1404	SB1841 - 39 - LRB103 25906 HLH 52257 b
1405	1405	1 sales made on or after January 1, 1990, and before July 1,
1406	1406	2 2003, (ii) 80% of the proceeds of sales made on or after July
1407	1407	3 1, 2003 and on or before July 1, 2017, and (iii) 100% of the
1408	1408	4 proceeds of sales made thereafter. If, at any time, however,
1409	1409	5 the tax under this Act on sales of gasohol, as defined in the
1410	1410	6 Use Tax Act, is imposed at the rate of 1.25%, then the tax
1411	1411	7 imposed by this Act applies to 100% of the proceeds of sales of
1412	1412	8 gasohol made during that time.
1413	1413	9 With respect to majority blended ethanol fuel, as defined
1414	1414	10 in the Use Tax Act, the tax imposed by this Act does not apply
1415	1415	11 to the proceeds of sales made on or after July 1, 2003 and on
1416	1416	12 or before December 31, 2023 but applies to 100% of the proceeds
1417	1417	13 of sales made thereafter.
1418	1418	14 With respect to biodiesel blends, as defined in the Use
1419	1419	15 Tax Act, with no less than 1% and no more than 10% biodiesel,
1420	1420	16 the tax imposed by this Act applies to (i) 80% of the proceeds
1421	1421	17 of sales made on or after July 1, 2003 and on or before
1422	1422	18 December 31, 2018 and (ii) 100% of the proceeds of sales made
1423	1423	19 after December 31, 2018 and before January 1, 2024. On and
1424	1424	20 after January 1, 2024 and on or before December 31, 2030, the
1425	1425	21 taxation of biodiesel, renewable diesel, and biodiesel blends
1426	1426	22 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
1427	1427	23 at any time, however, the tax under this Act on sales of
1428	1428	24 biodiesel blends, as defined in the Use Tax Act, with no less
1429	1429	25 than 1% and no more than 10% biodiesel is imposed at the rate
1430	1430	26 of 1.25%, then the tax imposed by this Act applies to 100% of
1431	1431
1432	1432
1433	1433
1434	1434
1435	1435
1436	1436	SB1841 - 39 - LRB103 25906 HLH 52257 b
1437	1437
1438	1438
1439	1439	SB1841- 40 -LRB103 25906 HLH 52257 b SB1841 - 40 - LRB103 25906 HLH 52257 b
1440	1440	SB1841 - 40 - LRB103 25906 HLH 52257 b
1441	1441	1 the proceeds of sales of biodiesel blends with no less than 1%
1442	1442	2 and no more than 10% biodiesel made during that time.
1443	1443	3 With respect to biodiesel, as defined in the Use Tax Act,
1444	1444	4 and biodiesel blends, as defined in the Use Tax Act, with more
1445	1445	5 than 10% but no more than 99% biodiesel, the tax imposed by
1446	1446	6 this Act does not apply to the proceeds of sales made on or
1447	1447	7 after July 1, 2003 and on or before December 31, 2023. On and
1448	1448	8 after January 1, 2024 and on or before December 31, 2030, the
1449	1449	9 taxation of biodiesel, renewable diesel, and biodiesel blends
1450	1450	10 shall be as provided in Section 3-5.1 of the Use Tax Act.
1451	1451	11 On and after January 1, 2024, with respect to the sale of a
1452	1452	12 manufactured home, as defined in Section 1, if the purchase is
1453	1453	13 the first purchase of the manufactured home for use as a
1454	1454	14 dwelling and the purchaser who will use the home as a dwelling
1455	1455	15 certifies that the manufactured home will be affixed to a
1456	1456	16 permanent foundation in the State so that the manufactured
1457	1457	17 home is deemed to be real property under the Conveyance and
1458	1458	18 Encumbrance of Manufactured Homes as Real Property and
1459	1459	19 Severance Act, then the tax imposed by this Act applies to 50%
1460	1460	20 of the gross receipts from the sale of the manufactured home.
1461	1461	21 The seller, whether acting as a construction contractor or
1462	1462	22 not, must retain the purchaser's certification in his or her
1463	1463	23 books and records for a period of 7 years after the date of the
1464	1464	24 sale. This paragraph is exempt from the provisions of Section
1465	1465	25 2-70.
1466	1466	26 Until July 1, 2022 and beginning again on July 1, 2023,
1467	1467
1468	1468
1469	1469
1470	1470
1471	1471
1472	1472	SB1841 - 40 - LRB103 25906 HLH 52257 b
1473	1473
1474	1474
1475	1475	SB1841- 41 -LRB103 25906 HLH 52257 b SB1841 - 41 - LRB103 25906 HLH 52257 b
1476	1476	SB1841 - 41 - LRB103 25906 HLH 52257 b
1477	1477	1 with respect to food for human consumption that is to be
1478	1478	2 consumed off the premises where it is sold (other than
1479	1479	3 alcoholic beverages, food consisting of or infused with adult
1480	1480	4 use cannabis, soft drinks, and food that has been prepared for
1481	1481	5 immediate consumption), the tax is imposed at the rate of 1%.
1482	1482	6 Beginning July 1, 2022 and until July 1, 2023, with respect to
1483	1483	7 food for human consumption that is to be consumed off the
1484	1484	8 premises where it is sold (other than alcoholic beverages,
1485	1485	9 food consisting of or infused with adult use cannabis, soft
1486	1486	10 drinks, and food that has been prepared for immediate
1487	1487	11 consumption), the tax is imposed at the rate of 0%.
1488	1488	12 With respect to prescription and nonprescription
1489	1489	13 medicines, drugs, medical appliances, products classified as
1490	1490	14 Class III medical devices by the United States Food and Drug
1491	1491	15 Administration that are used for cancer treatment pursuant to
1492	1492	16 a prescription, as well as any accessories and components
1493	1493	17 related to those devices, modifications to a motor vehicle for
1494	1494	18 the purpose of rendering it usable by a person with a
1495	1495	19 disability, and insulin, blood sugar testing materials,
1496	1496	20 syringes, and needles used by human diabetics, the tax is
1497	1497	21 imposed at the rate of 1%. For the purposes of this Section,
1498	1498	22 until September 1, 2009: the term "soft drinks" means any
1499	1499	23 complete, finished, ready-to-use, non-alcoholic drink, whether
1500	1500	24 carbonated or not, including, but not limited to, soda water,
1501	1501	25 cola, fruit juice, vegetable juice, carbonated water, and all
1502	1502	26 other preparations commonly known as soft drinks of whatever
1503	1503
1504	1504
1505	1505
1506	1506
1507	1507
1508	1508	SB1841 - 41 - LRB103 25906 HLH 52257 b
1509	1509
1510	1510
1511	1511	SB1841- 42 -LRB103 25906 HLH 52257 b SB1841 - 42 - LRB103 25906 HLH 52257 b
1512	1512	SB1841 - 42 - LRB103 25906 HLH 52257 b
1513	1513	1 kind or description that are contained in any closed or sealed
1514	1514	2 bottle, can, carton, or container, regardless of size; but
1515	1515	3 "soft drinks" does not include coffee, tea, non-carbonated
1516	1516	4 water, infant formula, milk or milk products as defined in the
1517	1517	5 Grade A Pasteurized Milk and Milk Products Act, or drinks
1518	1518	6 containing 50% or more natural fruit or vegetable juice.
1519	1519	7 Notwithstanding any other provisions of this Act,
1520	1520	8 beginning September 1, 2009, "soft drinks" means non-alcoholic
1521	1521	9 beverages that contain natural or artificial sweeteners. "Soft
1522	1522	10 drinks" does do not include beverages that contain milk or
1523	1523	11 milk products, soy, rice or similar milk substitutes, or
1524	1524	12 greater than 50% of vegetable or fruit juice by volume.
1525	1525	13 Until August 1, 2009, and notwithstanding any other
1526	1526	14 provisions of this Act, "food for human consumption that is to
1527	1527	15 be consumed off the premises where it is sold" includes all
1528	1528	16 food sold through a vending machine, except soft drinks and
1529	1529	17 food products that are dispensed hot from a vending machine,
1530	1530	18 regardless of the location of the vending machine. Beginning
1531	1531	19 August 1, 2009, and notwithstanding any other provisions of
1532	1532	20 this Act, "food for human consumption that is to be consumed
1533	1533	21 off the premises where it is sold" includes all food sold
1534	1534	22 through a vending machine, except soft drinks, candy, and food
1535	1535	23 products that are dispensed hot from a vending machine,
1536	1536	24 regardless of the location of the vending machine.
1537	1537	25 Notwithstanding any other provisions of this Act,
1538	1538	26 beginning September 1, 2009, "food for human consumption that
1539	1539
1540	1540
1541	1541
1542	1542
1543	1543
1544	1544	SB1841 - 42 - LRB103 25906 HLH 52257 b
1545	1545
1546	1546
1547	1547	SB1841- 43 -LRB103 25906 HLH 52257 b SB1841 - 43 - LRB103 25906 HLH 52257 b
1548	1548	SB1841 - 43 - LRB103 25906 HLH 52257 b
1549	1549	1 is to be consumed off the premises where it is sold" does not
1550	1550	2 include candy. For purposes of this Section, "candy" means a
1551	1551	3 preparation of sugar, honey, or other natural or artificial
1552	1552	4 sweeteners in combination with chocolate, fruits, nuts or
1553	1553	5 other ingredients or flavorings in the form of bars, drops, or
1554	1554	6 pieces. "Candy" does not include any preparation that contains
1555	1555	7 flour or requires refrigeration.
1556	1556	8 Notwithstanding any other provisions of this Act,
1557	1557	9 beginning September 1, 2009, "nonprescription medicines and
1558	1558	10 drugs" does not include grooming and hygiene products. For
1559	1559	11 purposes of this Section, "grooming and hygiene products"
1560	1560	12 includes, but is not limited to, soaps and cleaning solutions,
1561	1561	13 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
1562	1562	14 lotions and screens, unless those products are available by
1563	1563	15 prescription only, regardless of whether the products meet the
1564	1564	16 definition of "over-the-counter-drugs". For the purposes of
1565	1565	17 this paragraph, "over-the-counter-drug" means a drug for human
1566	1566	18 use that contains a label that identifies the product as a drug
1567	1567	19 as required by 21 CFR C.F.R. 201.66. The
1568	1568	20 "over-the-counter-drug" label includes:
1569	1569	21 (A) a A "Drug Facts" panel; or
1570	1570	22 (B) a A statement of the "active ingredient(s)" with a
1571	1571	23 list of those ingredients contained in the compound,
1572	1572	24 substance or preparation.
1573	1573	25 Beginning on January 1, 2014 (the effective date of Public
1574	1574	26 Act 98-122) this amendatory Act of the 98th General Assembly,
1575	1575
1576	1576
1577	1577
1578	1578
1579	1579
1580	1580	SB1841 - 43 - LRB103 25906 HLH 52257 b
1581	1581
1582	1582
1583	1583	SB1841- 44 -LRB103 25906 HLH 52257 b SB1841 - 44 - LRB103 25906 HLH 52257 b
1584	1584	SB1841 - 44 - LRB103 25906 HLH 52257 b
1585	1585	1 "prescription and nonprescription medicines and drugs"
1586	1586	2 includes medical cannabis purchased from a registered
1587	1587	3 dispensing organization under the Compassionate Use of Medical
1588	1588	4 Cannabis Program Act.
1589	1589	5 As used in this Section, "adult use cannabis" means
1590	1590	6 cannabis subject to tax under the Cannabis Cultivation
1591	1591	7 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
1592	1592	8 and does not include cannabis subject to tax under the
1593	1593	9 Compassionate Use of Medical Cannabis Program Act.
1594	1594	10 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
1595	1595	11 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
1596	1596	12 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
1597	1597	13 102-700, Article 65, Section 65-10, eff. 4-19-22; revised
1598	1598	14 6-1-22.)
1599	1599
1600	1600
1601	1601
1602	1602
1603	1603
1604	1604	SB1841 - 44 - LRB103 25906 HLH 52257 b