Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3362 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0983
2	1		SB3362 EnrolledLRB103 34186 HLH 66294 b SB3362 Enrolled LRB103 34186 HLH 66294 b
3	2		SB3362 Enrolled LRB103 34186 HLH 66294 b
4		-	AN ACT concerning revenue.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Retailers' Occupation Tax Act is amended by
8		-	changing Sections 1, 2, and 2-12 as follows:
9		-	(35 ILCS 120/1) (from Ch. 120, par. 440)
10		-	Sec. 1. Definitions. "Sale at retail" means any transfer
11		-	of the ownership of or title to tangible personal property to a
12		-	purchaser, for the purpose of use or consumption, and not for
13		-	the purpose of resale in any form as tangible personal
14		-	property to the extent not first subjected to a use for which
15		-	it was purchased, for a valuable consideration: Provided that
16		-	the property purchased is deemed to be purchased for the
17		-	purpose of resale, despite first being used, to the extent to
18		-	which it is resold as an ingredient of an intentionally
19		-	produced product or byproduct of manufacturing. For this
20		-	purpose, slag produced as an incident to manufacturing pig
21		-	iron or steel and sold is considered to be an intentionally
22		-	produced byproduct of manufacturing. Transactions whereby the
23		-	possession of the property is transferred but the seller
24		-	retains the title as security for payment of the selling price
25		-	shall be deemed to be sales.
26		-	"Sale at retail" shall be construed to include any
	3	+	1 AN ACT concerning revenue.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Retailers' Occupation Tax Act is amended by
	7	+	5 changing Sections 1, 2, and 2-12 as follows:
	8	+	6 (35 ILCS 120/1) (from Ch. 120, par. 440)
	9	+	7 Sec. 1. Definitions. "Sale at retail" means any transfer
	10	+	8 of the ownership of or title to tangible personal property to a
	11	+	9 purchaser, for the purpose of use or consumption, and not for
	12	+	10 the purpose of resale in any form as tangible personal
	13	+	11 property to the extent not first subjected to a use for which
	14	+	12 it was purchased, for a valuable consideration: Provided that
	15	+	13 the property purchased is deemed to be purchased for the
	16	+	14 purpose of resale, despite first being used, to the extent to
	17	+	15 which it is resold as an ingredient of an intentionally
	18	+	16 produced product or byproduct of manufacturing. For this
	19	+	17 purpose, slag produced as an incident to manufacturing pig
	20	+	18 iron or steel and sold is considered to be an intentionally
	21	+	19 produced byproduct of manufacturing. Transactions whereby the
	22	+	20 possession of the property is transferred but the seller
	23	+	21 retains the title as security for payment of the selling price
	24	+	22 shall be deemed to be sales.
	25	+	23 "Sale at retail" shall be construed to include any
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33		-	transfer of the ownership of or title to tangible personal
34		-	property to a purchaser, for use or consumption by any other
35		-	person to whom such purchaser may transfer the tangible
36		-	personal property without a valuable consideration, and to
37		-	include any transfer, whether made for or without a valuable
38		-	consideration, for resale in any form as tangible personal
39		-	property unless made in compliance with Section 2c of this
40		-	Act.
41		-	Sales of tangible personal property, which property, to
42		-	the extent not first subjected to a use for which it was
43		-	purchased, as an ingredient or constituent, goes into and
44		-	forms a part of tangible personal property subsequently the
45		-	subject of a "Sale at retail", are not sales at retail as
46		-	defined in this Act: Provided that the property purchased is
47		-	deemed to be purchased for the purpose of resale, despite
48		-	first being used, to the extent to which it is resold as an
49		-	ingredient of an intentionally produced product or byproduct
50		-	of manufacturing.
51		-	"Sale at retail" shall be construed to include any
52		-	Illinois florist's sales transaction in which the purchase
53		-	order is received in Illinois by a florist and the sale is for
54		-	use or consumption, but the Illinois florist has a florist in
55		-	another state deliver the property to the purchaser or the
56		-	purchaser's donee in such other state.
57		-	Nonreusable tangible personal property that is used by
58		-	persons engaged in the business of operating a restaurant,
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	33	+	SB3362 Enrolled - 2 - LRB103 34186 HLH 66294 b
	34	+	1 transfer of the ownership of or title to tangible personal
	35	+	2 property to a purchaser, for use or consumption by any other
	36	+	3 person to whom such purchaser may transfer the tangible
	37	+	4 personal property without a valuable consideration, and to
	38	+	5 include any transfer, whether made for or without a valuable
	39	+	6 consideration, for resale in any form as tangible personal
	40	+	7 property unless made in compliance with Section 2c of this
	41	+	8 Act.
	42	+	9 Sales of tangible personal property, which property, to
	43	+	10 the extent not first subjected to a use for which it was
	44	+	11 purchased, as an ingredient or constituent, goes into and
	45	+	12 forms a part of tangible personal property subsequently the
	46	+	13 subject of a "Sale at retail", are not sales at retail as
	47	+	14 defined in this Act: Provided that the property purchased is
	48	+	15 deemed to be purchased for the purpose of resale, despite
	49	+	16 first being used, to the extent to which it is resold as an
	50	+	17 ingredient of an intentionally produced product or byproduct
	51	+	18 of manufacturing.
	52	+	19 "Sale at retail" shall be construed to include any
	53	+	20 Illinois florist's sales transaction in which the purchase
	54	+	21 order is received in Illinois by a florist and the sale is for
	55	+	22 use or consumption, but the Illinois florist has a florist in
	56	+	23 another state deliver the property to the purchaser or the
	57	+	24 purchaser's donee in such other state.
	58	+	25 Nonreusable tangible personal property that is used by
	59	+	26 persons engaged in the business of operating a restaurant,
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61		-	cafeteria, or drive-in is a sale for resale when it is
62		-	transferred to customers in the ordinary course of business as
63		-	part of the sale of food or beverages and is used to deliver,
64		-	package, or consume food or beverages, regardless of where
65		-	consumption of the food or beverages occurs. Examples of those
66		-	items include, but are not limited to nonreusable, paper and
67		-	plastic cups, plates, baskets, boxes, sleeves, buckets or
68		-	other containers, utensils, straws, placemats, napkins, doggie
69		-	bags, and wrapping or packaging materials that are transferred
70		-	to customers as part of the sale of food or beverages in the
71		-	ordinary course of business.
72		-	The purchase, employment and transfer of such tangible
73		-	personal property as newsprint and ink for the primary purpose
74		-	of conveying news (with or without other information) is not a
75		-	purchase, use or sale of tangible personal property.
76		-	A person whose activities are organized and conducted
77		-	primarily as a not-for-profit service enterprise, and who
78		-	engages in selling tangible personal property at retail
79		-	(whether to the public or merely to members and their guests)
80		-	is engaged in the business of selling tangible personal
81		-	property at retail with respect to such transactions,
82		-	excepting only a person organized and operated exclusively for
83		-	charitable, religious or educational purposes either (1), to
84		-	the extent of sales by such person to its members, students,
85		-	patients or inmates of tangible personal property to be used
86		-	primarily for the purposes of such person, or (2), to the
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89		-	extent of sales by such person of tangible personal property
90		-	which is not sold or offered for sale by persons organized for
91		-	profit. The selling of school books and school supplies by
92		-	schools at retail to students is not "primarily for the
93		-	purposes of" the school which does such selling. The
94		-	provisions of this paragraph shall not apply to nor subject to
95		-	taxation occasional dinners, socials or similar activities of
96		-	a person organized and operated exclusively for charitable,
97		-	religious or educational purposes, whether or not such
98		-	activities are open to the public.
99		-	A person who is the recipient of a grant or contract under
100		-	Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
101		-	serves meals to participants in the federal Nutrition Program
102		-	for the Elderly in return for contributions established in
103		-	amount by the individual participant pursuant to a schedule of
104		-	suggested fees as provided for in the federal Act is not
105		-	engaged in the business of selling tangible personal property
106		-	at retail with respect to such transactions.
107		-	"Purchaser" means anyone who, through a sale at retail,
108		-	acquires the ownership of or title to tangible personal
109		-	property for a valuable consideration.
110		-	"Reseller of motor fuel" means any person engaged in the
111		-	business of selling or delivering or transferring title of
112		-	motor fuel to another person other than for use or
113		-	consumption. No person shall act as a reseller of motor fuel
114		-	within this State without first being registered as a reseller
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117		-	pursuant to Section 2c or a retailer pursuant to Section 2a.
118		-	"Selling price" or the "amount of sale" means the
119		-	consideration for a sale valued in money whether received in
120		-	money or otherwise, including cash, credits, property, other
121		-	than as hereinafter provided, and services, but, prior to
122		-	January 1, 2020 and beginning again on January 1, 2022, not
123		-	including the value of or credit given for traded-in tangible
124		-	personal property where the item that is traded-in is of like
125		-	kind and character as that which is being sold; beginning
126		-	January 1, 2020 and until January 1, 2022, "selling price"
127		-	includes the portion of the value of or credit given for
128		-	traded-in motor vehicles of the First Division as defined in
129		-	Section 1-146 of the Illinois Vehicle Code of like kind and
130		-	character as that which is being sold that exceeds $10,000.
131		-	"Selling price" shall be determined without any deduction on
132		-	account of the cost of the property sold, the cost of materials
133		-	used, labor or service cost or any other expense whatsoever,
134		-	but does not include charges that are added to prices by
135		-	sellers on account of the seller's tax liability under this
136		-	Act, or on account of the seller's duty to collect, from the
137		-	purchaser, the tax that is imposed by the Use Tax Act, or,
138		-	except as otherwise provided with respect to any cigarette tax
139		-	imposed by a home rule unit, on account of the seller's tax
140		-	liability under any local occupation tax administered by the
141		-	Department, or, except as otherwise provided with respect to
142		-	any cigarette tax imposed by a home rule unit on account of the
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	70	+	1 cafeteria, or drive-in is a sale for resale when it is
	71	+	2 transferred to customers in the ordinary course of business as
	72	+	3 part of the sale of food or beverages and is used to deliver,
	73	+	4 package, or consume food or beverages, regardless of where
	74	+	5 consumption of the food or beverages occurs. Examples of those
	75	+	6 items include, but are not limited to nonreusable, paper and
	76	+	7 plastic cups, plates, baskets, boxes, sleeves, buckets or
	77	+	8 other containers, utensils, straws, placemats, napkins, doggie
	78	+	9 bags, and wrapping or packaging materials that are transferred
	79	+	10 to customers as part of the sale of food or beverages in the
	80	+	11 ordinary course of business.
	81	+	12 The purchase, employment and transfer of such tangible
	82	+	13 personal property as newsprint and ink for the primary purpose
	83	+	14 of conveying news (with or without other information) is not a
	84	+	15 purchase, use or sale of tangible personal property.
	85	+	16 A person whose activities are organized and conducted
	86	+	17 primarily as a not-for-profit service enterprise, and who
	87	+	18 engages in selling tangible personal property at retail
	88	+	19 (whether to the public or merely to members and their guests)
	89	+	20 is engaged in the business of selling tangible personal
	90	+	21 property at retail with respect to such transactions,
	91	+	22 excepting only a person organized and operated exclusively for
	92	+	23 charitable, religious or educational purposes either (1), to
	93	+	24 the extent of sales by such person to its members, students,
	94	+	25 patients or inmates of tangible personal property to be used
	95	+	26 primarily for the purposes of such person, or (2), to the
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145		-	seller's duty to collect, from the purchasers, the tax that is
146		-	imposed under any local use tax administered by the
147		-	Department. Effective December 1, 1985, "selling price" shall
148		-	include charges that are added to prices by sellers on account
149		-	of the seller's tax liability under the Cigarette Tax Act, on
150		-	account of the sellers' duty to collect, from the purchaser,
151		-	the tax imposed under the Cigarette Use Tax Act, and on account
152		-	of the seller's duty to collect, from the purchaser, any
153		-	cigarette tax imposed by a home rule unit.
154		-	Notwithstanding any law to the contrary, for any motor
155		-	vehicle, as defined in Section 1-146 of the Vehicle Code, that
156		-	is sold on or after January 1, 2015 for the purpose of leasing
157		-	the vehicle for a defined period that is longer than one year
158		-	and (1) is a motor vehicle of the second division that: (A) is
159		-	a self-contained motor vehicle designed or permanently
160		-	converted to provide living quarters for recreational,
161		-	camping, or travel use, with direct walk through access to the
162		-	living quarters from the driver's seat; (B) is of the van
163		-	configuration designed for the transportation of not less than
164		-	7 nor more than 16 passengers; or (C) has a gross vehicle
165		-	weight rating of 8,000 pounds or less or (2) is a motor vehicle
166		-	of the first division, "selling price" or "amount of sale"
167		-	means the consideration received by the lessor pursuant to the
168		-	lease contract, including amounts due at lease signing and all
169		-	monthly or other regular payments charged over the term of the
170		-	lease. Also included in the selling price is any amount
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173		-	received by the lessor from the lessee for the leased vehicle
174		-	that is not calculated at the time the lease is executed,
175		-	including, but not limited to, excess mileage charges and
176		-	charges for excess wear and tear. For sales that occur in
177		-	Illinois, with respect to any amount received by the lessor
178		-	from the lessee for the leased vehicle that is not calculated
179		-	at the time the lease is executed, the lessor who purchased the
180		-	motor vehicle does not incur the tax imposed by the Use Tax Act
181		-	on those amounts, and the retailer who makes the retail sale of
182		-	the motor vehicle to the lessor is not required to collect the
183		-	tax imposed by the Use Tax Act or to pay the tax imposed by
184		-	this Act on those amounts. However, the lessor who purchased
185		-	the motor vehicle assumes the liability for reporting and
186		-	paying the tax on those amounts directly to the Department in
187		-	the same form (Illinois Retailers' Occupation Tax, and local
188		-	retailers' occupation taxes, if applicable) in which the
189		-	retailer would have reported and paid such tax if the retailer
190		-	had accounted for the tax to the Department. For amounts
191		-	received by the lessor from the lessee that are not calculated
192		-	at the time the lease is executed, the lessor must file the
193		-	return and pay the tax to the Department by the due date
194		-	otherwise required by this Act for returns other than
195		-	transaction returns. If the retailer is entitled under this
196		-	Act to a discount for collecting and remitting the tax imposed
197		-	under this Act to the Department with respect to the sale of
198		-	the motor vehicle to the lessor, then the right to the discount
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201		-	provided in this Act shall be transferred to the lessor with
202		-	respect to the tax paid by the lessor for any amount received
203		-	by the lessor from the lessee for the leased vehicle that is
204		-	not calculated at the time the lease is executed; provided
205		-	that the discount is only allowed if the return is timely filed
206		-	and for amounts timely paid. The "selling price" of a motor
207		-	vehicle that is sold on or after January 1, 2015 for the
208		-	purpose of leasing for a defined period of longer than one year
209		-	shall not be reduced by the value of or credit given for
210		-	traded-in tangible personal property owned by the lessor, nor
211		-	shall it be reduced by the value of or credit given for
212		-	traded-in tangible personal property owned by the lessee,
213		-	regardless of whether the trade-in value thereof is assigned
214		-	by the lessee to the lessor. In the case of a motor vehicle
215		-	that is sold for the purpose of leasing for a defined period of
216		-	longer than one year, the sale occurs at the time of the
217		-	delivery of the vehicle, regardless of the due date of any
218		-	lease payments. A lessor who incurs a Retailers' Occupation
219		-	Tax liability on the sale of a motor vehicle coming off lease
220		-	may not take a credit against that liability for the Use Tax
221		-	the lessor paid upon the purchase of the motor vehicle (or for
222		-	any tax the lessor paid with respect to any amount received by
223		-	the lessor from the lessee for the leased vehicle that was not
224		-	calculated at the time the lease was executed) if the selling
225		-	price of the motor vehicle at the time of purchase was
226		-	calculated using the definition of "selling price" as defined
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	106	+	1 extent of sales by such person of tangible personal property
	107	+	2 which is not sold or offered for sale by persons organized for
	108	+	3 profit. The selling of school books and school supplies by
	109	+	4 schools at retail to students is not "primarily for the
	110	+	5 purposes of" the school which does such selling. The
	111	+	6 provisions of this paragraph shall not apply to nor subject to
	112	+	7 taxation occasional dinners, socials or similar activities of
	113	+	8 a person organized and operated exclusively for charitable,
	114	+	9 religious or educational purposes, whether or not such
	115	+	10 activities are open to the public.
	116	+	11 A person who is the recipient of a grant or contract under
	117	+	12 Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
	118	+	13 serves meals to participants in the federal Nutrition Program
	119	+	14 for the Elderly in return for contributions established in
	120	+	15 amount by the individual participant pursuant to a schedule of
	121	+	16 suggested fees as provided for in the federal Act is not
	122	+	17 engaged in the business of selling tangible personal property
	123	+	18 at retail with respect to such transactions.
	124	+	19 "Purchaser" means anyone who, through a sale at retail,
	125	+	20 acquires the ownership of or title to tangible personal
	126	+	21 property for a valuable consideration.
	127	+	22 "Reseller of motor fuel" means any person engaged in the
	128	+	23 business of selling or delivering or transferring title of
	129	+	24 motor fuel to another person other than for use or
	130	+	25 consumption. No person shall act as a reseller of motor fuel
	131	+	26 within this State without first being registered as a reseller
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229		-	in this paragraph. Notwithstanding any other provision of this
230		-	Act to the contrary, lessors shall file all returns and make
231		-	all payments required under this paragraph to the Department
232		-	by electronic means in the manner and form as required by the
233		-	Department. This paragraph does not apply to leases of motor
234		-	vehicles for which, at the time the lease is entered into, the
235		-	term of the lease is not a defined period, including leases
236		-	with a defined initial period with the option to continue the
237		-	lease on a month-to-month or other basis beyond the initial
238		-	defined period.
239		-	The phrase "like kind and character" shall be liberally
240		-	construed (including but not limited to any form of motor
241		-	vehicle for any form of motor vehicle, or any kind of farm or
242		-	agricultural implement for any other kind of farm or
243		-	agricultural implement), while not including a kind of item
244		-	which, if sold at retail by that retailer, would be exempt from
245		-	retailers' occupation tax and use tax as an isolated or
246		-	occasional sale.
247		-	"Gross receipts" from the sales of tangible personal
248		-	property at retail means the total selling price or the amount
249		-	of such sales, as hereinbefore defined. In the case of charge
250		-	and time sales, the amount thereof shall be included only as
251		-	and when payments are received by the seller. Receipts or
252		-	other consideration derived by a seller from the sale,
253		-	transfer or assignment of accounts receivable to a wholly
254		-	owned subsidiary will not be deemed payments prior to the time
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257		-	the purchaser makes payment on such accounts.
258		-	"Department" means the Department of Revenue.
259		-	"Person" means any natural individual, firm, partnership,
260		-	association, joint stock company, joint adventure, public or
261		-	private corporation, limited liability company, or a receiver,
262		-	executor, trustee, guardian or other representative appointed
263		-	by order of any court.
264		-	The isolated or occasional sale of tangible personal
265		-	property at retail by a person who does not hold himself out as
266		-	being engaged (or who does not habitually engage) in selling
267		-	such tangible personal property at retail, or a sale through a
268		-	bulk vending machine, does not constitute engaging in a
269		-	business of selling such tangible personal property at retail
270		-	within the meaning of this Act; provided that any person who is
271		-	engaged in a business which is not subject to the tax imposed
272		-	by this Act because of involving the sale of or a contract to
273		-	sell real estate or a construction contract to improve real
274		-	estate or a construction contract to engineer, install, and
275		-	maintain an integrated system of products, but who, in the
276		-	course of conducting such business, transfers tangible
277		-	personal property to users or consumers in the finished form
278		-	in which it was purchased, and which does not become real
279		-	estate or was not engineered and installed, under any
280		-	provision of a construction contract or real estate sale or
281		-	real estate sales agreement entered into with some other
282		-	person arising out of or because of such nontaxable business,
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285		-	is engaged in the business of selling tangible personal
286		-	property at retail to the extent of the value of the tangible
287		-	personal property so transferred. If, in such a transaction, a
288		-	separate charge is made for the tangible personal property so
289		-	transferred, the value of such property, for the purpose of
290		-	this Act, shall be the amount so separately charged, but not
291		-	less than the cost of such property to the transferor; if no
292		-	separate charge is made, the value of such property, for the
293		-	purposes of this Act, is the cost to the transferor of such
294		-	tangible personal property. Construction contracts for the
295		-	improvement of real estate consisting of engineering,
296		-	installation, and maintenance of voice, data, video, security,
297		-	and all telecommunication systems do not constitute engaging
298		-	in a business of selling tangible personal property at retail
299		-	within the meaning of this Act if they are sold at one
300		-	specified contract price.
301		-	A person who holds himself or herself out as being engaged
302		-	(or who habitually engages) in selling tangible personal
303		-	property at retail is a person engaged in the business of
304		-	selling tangible personal property at retail hereunder with
305		-	respect to such sales (and not primarily in a service
306		-	occupation) notwithstanding the fact that such person designs
307		-	and produces such tangible personal property on special order
308		-	for the purchaser and in such a way as to render the property
309		-	of value only to such purchaser, if such tangible personal
310		-	property so produced on special order serves substantially the
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	142	+	1 pursuant to Section 2c or a retailer pursuant to Section 2a.
	143	+	2 "Selling price" or the "amount of sale" means the
	144	+	3 consideration for a sale valued in money whether received in
	145	+	4 money or otherwise, including cash, credits, property, other
	146	+	5 than as hereinafter provided, and services, but, prior to
	147	+	6 January 1, 2020 and beginning again on January 1, 2022, not
	148	+	7 including the value of or credit given for traded-in tangible
	149	+	8 personal property where the item that is traded-in is of like
	150	+	9 kind and character as that which is being sold; beginning
	151	+	10 January 1, 2020 and until January 1, 2022, "selling price"
	152	+	11 includes the portion of the value of or credit given for
	153	+	12 traded-in motor vehicles of the First Division as defined in
	154	+	13 Section 1-146 of the Illinois Vehicle Code of like kind and
	155	+	14 character as that which is being sold that exceeds $10,000.
	156	+	15 "Selling price" shall be determined without any deduction on
	157	+	16 account of the cost of the property sold, the cost of materials
	158	+	17 used, labor or service cost or any other expense whatsoever,
	159	+	18 but does not include charges that are added to prices by
	160	+	19 sellers on account of the seller's tax liability under this
	161	+	20 Act, or on account of the seller's duty to collect, from the
	162	+	21 purchaser, the tax that is imposed by the Use Tax Act, or,
	163	+	22 except as otherwise provided with respect to any cigarette tax
	164	+	23 imposed by a home rule unit, on account of the seller's tax
	165	+	24 liability under any local occupation tax administered by the
	166	+	25 Department, or, except as otherwise provided with respect to
	167	+	26 any cigarette tax imposed by a home rule unit on account of the
311	168
312	169
313		-	same function as stock or standard items of tangible personal
314		-	property that are sold at retail.
315		-	Persons who engage in the business of transferring
316		-	tangible personal property upon the redemption of trading
317		-	stamps are engaged in the business of selling such property at
318		-	retail and shall be liable for and shall pay the tax imposed by
319		-	this Act on the basis of the retail value of the property
320		-	transferred upon redemption of such stamps.
321		-	"Bulk vending machine" means a vending machine, containing
322		-	unsorted confections, nuts, toys, or other items designed
323		-	primarily to be used or played with by children which, when a
324		-	coin or coins of a denomination not larger than $0.50 are
325		-	inserted, are dispensed in equal portions, at random and
326		-	without selection by the customer.
327		-	"Remote retailer" means a retailer that does not maintain
328		-	within this State, directly or by a subsidiary, an office,
329		-	distribution house, sales house, warehouse or other place of
330		-	business, or any agent or other representative operating
331		-	within this State under the authority of the retailer or its
332		-	subsidiary, irrespective of whether such place of business or
333		-	agent is located here permanently or temporarily or whether
334		-	such retailer or subsidiary is licensed to do business in this
335		-	State.
336		-	"Retailer maintaining a place of business in this State"
337		-	has the meaning given to that term in Section 2 of the Use Tax
338		-	Act.
339	170
340	171
341		-	"Marketplace" means a physical or electronic place, forum,
342		-	platform, application, or other method by which a marketplace
343		-	seller sells or offers to sell items.
344		-	"Marketplace facilitator" means a person who, pursuant to
345		-	an agreement with an unrelated third-party marketplace seller,
346		-	directly or indirectly through one or more affiliates
347		-	facilitates a retail sale by an unrelated third party
348		-	marketplace seller by:
349		-	(1) listing or advertising for sale by the marketplace
350		-	seller in a marketplace, tangible personal property that
351		-	is subject to tax under this Act; and
352		-	(2) either directly or indirectly, through agreements
353		-	or arrangements with third parties, collecting payment
354		-	from the customer and transmitting that payment to the
355		-	marketplace seller regardless of whether the marketplace
356		-	facilitator receives compensation or other consideration
357		-	in exchange for its services.
358		-	A person who provides advertising services, including
359		-	listing products for sale, is not considered a marketplace
360		-	facilitator, so long as the advertising service platform or
361		-	forum does not engage, directly or indirectly through one or
362		-	more affiliated persons, in the activities described in
363		-	paragraph (2) of this definition of "marketplace facilitator".
364		-	"Marketplace facilitator" does not include any person
365		-	licensed under the Auction License Act. This exemption does
366		-	not apply to any person who is an Internet auction listing
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367	174
368	175
369		-	service, as defined by the Auction License Act.
370		-	"Marketplace seller" means a person that makes sales
371		-	through a marketplace operated by an unrelated third party
372		-	marketplace facilitator.
373		-	(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
374		-	102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
375		-	5-13-22.)
376		-	(35 ILCS 120/2) (from Ch. 120, par. 441)
377		-	Sec. 2. Tax imposed.
378		-	(a) A tax is imposed upon persons engaged in the business
379		-	of selling at retail tangible personal property, including
380		-	computer software, and including photographs, negatives, and
381		-	positives that are the product of photoprocessing, but not
382		-	including products of photoprocessing produced for use in
383		-	motion pictures for public commercial exhibition. Beginning
384		-	January 1, 2001, prepaid telephone calling arrangements shall
385		-	be considered tangible personal property subject to the tax
386		-	imposed under this Act regardless of the form in which those
387		-	arrangements may be embodied, transmitted, or fixed by any
388		-	method now known or hereafter developed. Sales of (1)
389		-	electricity delivered to customers by wire; (2) natural or
390		-	artificial gas that is delivered to customers through pipes,
391		-	pipelines, or mains; and (3) water that is delivered to
392		-	customers through pipes, pipelines, or mains are not subject
393		-	to tax under this Act. The provisions of this amendatory Act of
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	178	+	1 seller's duty to collect, from the purchasers, the tax that is
	179	+	2 imposed under any local use tax administered by the
	180	+	3 Department. Effective December 1, 1985, "selling price" shall
	181	+	4 include charges that are added to prices by sellers on account
	182	+	5 of the seller's tax liability under the Cigarette Tax Act, on
	183	+	6 account of the sellers' duty to collect, from the purchaser,
	184	+	7 the tax imposed under the Cigarette Use Tax Act, and on account
	185	+	8 of the seller's duty to collect, from the purchaser, any
	186	+	9 cigarette tax imposed by a home rule unit.
	187	+	10 Notwithstanding any law to the contrary, for any motor
	188	+	11 vehicle, as defined in Section 1-146 of the Vehicle Code, that
	189	+	12 is sold on or after January 1, 2015 for the purpose of leasing
	190	+	13 the vehicle for a defined period that is longer than one year
	191	+	14 and (1) is a motor vehicle of the second division that: (A) is
	192	+	15 a self-contained motor vehicle designed or permanently
	193	+	16 converted to provide living quarters for recreational,
	194	+	17 camping, or travel use, with direct walk through access to the
	195	+	18 living quarters from the driver's seat; (B) is of the van
	196	+	19 configuration designed for the transportation of not less than
	197	+	20 7 nor more than 16 passengers; or (C) has a gross vehicle
	198	+	21 weight rating of 8,000 pounds or less or (2) is a motor vehicle
	199	+	22 of the first division, "selling price" or "amount of sale"
	200	+	23 means the consideration received by the lessor pursuant to the
	201	+	24 lease contract, including amounts due at lease signing and all
	202	+	25 monthly or other regular payments charged over the term of the
	203	+	26 lease. Also included in the selling price is any amount
394	204
395	205
396		-	the 98th General Assembly are declaratory of existing law as
397		-	to the meaning and scope of this Act.
398		-	(b) Beginning on January 1, 2021, a remote retailer is
399		-	engaged in the occupation of selling at retail in Illinois for
400		-	purposes of this Act, if:
401		-	(1) the cumulative gross receipts from sales of
402		-	tangible personal property to purchasers in Illinois are
403		-	$100,000 or more; or
404		-	(2) the retailer enters into 200 or more separate
405		-	transactions for the sale of tangible personal property to
406		-	purchasers in Illinois.
407		-	Remote retailers that meet or exceed the threshold in
408		-	either paragraph (1) or (2) above shall be liable for all
409		-	applicable State retailers' and locally imposed retailers'
410		-	occupation taxes administered by the Department on all retail
411		-	sales to Illinois purchasers.
412		-	The remote retailer shall determine on a quarterly basis,
413		-	ending on the last day of March, June, September, and
414		-	December, whether he or she meets the criteria of either
415		-	paragraph (1) or (2) of this subsection for the preceding
416		-	12-month period. If the retailer meets the criteria of either
417		-	paragraph (1) or (2) for a 12-month period, he or she is
418		-	considered a retailer maintaining a place of business in this
419		-	State and is required to collect and remit the tax imposed
420		-	under this Act and all retailers' occupation tax imposed by
421		-	local taxing jurisdictions in Illinois, provided such local
422	206
423	207
424		-	taxes are administered by the Department, and to file all
425		-	applicable returns for one year. At the end of that one-year
426		-	period, the retailer shall determine whether the retailer met
427		-	the criteria of either paragraph (1) or (2) for the preceding
428		-	12-month period. If the retailer met the criteria in either
429		-	paragraph (1) or (2) for the preceding 12-month period, he or
430		-	she is considered a retailer maintaining a place of business
431		-	in this State and is required to collect and remit all
432		-	applicable State and local retailers' occupation taxes and
433		-	file returns for the subsequent year. If, at the end of a
434		-	one-year period, a retailer that was required to collect and
435		-	remit the tax imposed under this Act determines that he or she
436		-	did not meet the criteria in either paragraph (1) or (2) during
437		-	the preceding 12-month period, then the retailer shall
438		-	subsequently determine on a quarterly basis, ending on the
439		-	last day of March, June, September, and December, whether he
440		-	or she meets the criteria of either paragraph (1) or (2) for
441		-	the preceding 12-month period.
442		-	(b-2) Beginning on January 1, 2025, a retailer maintaining
443		-	a place of business in this State that makes retail sales of
444		-	tangible personal property to Illinois customers from a
445		-	location or locations outside of Illinois is engaged in the
446		-	occupation of selling at retail in Illinois for the purposes
447		-	of this Act. Those retailers are liable for all applicable
448		-	State and locally imposed retailers' occupation taxes
449		-	administered by the Department on retail sales made by those
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450	210
451	211
452		-	retailers to Illinois customers from locations outside of
453		-	Illinois.
454		-	(b-5) For the purposes of this Section, neither the gross
455		-	receipts from nor the number of separate transactions for
456		-	sales of tangible personal property to purchasers in Illinois
457		-	that a remote retailer makes through a marketplace facilitator
458		-	shall be included for the purposes of determining whether he
459		-	or she has met the thresholds of subsection (b) of this Section
460		-	so long as the remote retailer has received certification from
461		-	the marketplace facilitator that the marketplace facilitator
462		-	is legally responsible for payment of tax on such sales.
463		-	(b-10) A remote retailer that is required to collect taxes
464		-	imposed under the Use Tax Act on retail sales made to Illinois
465		-	purchasers or a retailer maintaining a place of business in
466		-	this State that is required to collect taxes imposed under the
467		-	Use Tax Act on retail sales made to Illinois purchasers shall
468		-	be liable to the Department for such taxes, except when the
469		-	remote retailer or retailer maintaining a place of business in
470		-	this State is relieved of the duty to remit such taxes by
471		-	virtue of having paid to the Department taxes imposed by this
472		-	Act in accordance with this Section upon his or her gross
473		-	receipts from such sales.
474		-	(c) Marketplace facilitators engaged in the business of
475		-	selling at retail tangible personal property in Illinois.
476		-	Beginning January 1, 2021, a marketplace facilitator is
477		-	engaged in the occupation of selling at retail tangible
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	214	+	1 received by the lessor from the lessee for the leased vehicle
	215	+	2 that is not calculated at the time the lease is executed,
	216	+	3 including, but not limited to, excess mileage charges and
	217	+	4 charges for excess wear and tear. For sales that occur in
	218	+	5 Illinois, with respect to any amount received by the lessor
	219	+	6 from the lessee for the leased vehicle that is not calculated
	220	+	7 at the time the lease is executed, the lessor who purchased the
	221	+	8 motor vehicle does not incur the tax imposed by the Use Tax Act
	222	+	9 on those amounts, and the retailer who makes the retail sale of
	223	+	10 the motor vehicle to the lessor is not required to collect the
	224	+	11 tax imposed by the Use Tax Act or to pay the tax imposed by
	225	+	12 this Act on those amounts. However, the lessor who purchased
	226	+	13 the motor vehicle assumes the liability for reporting and
	227	+	14 paying the tax on those amounts directly to the Department in
	228	+	15 the same form (Illinois Retailers' Occupation Tax, and local
	229	+	16 retailers' occupation taxes, if applicable) in which the
	230	+	17 retailer would have reported and paid such tax if the retailer
	231	+	18 had accounted for the tax to the Department. For amounts
	232	+	19 received by the lessor from the lessee that are not calculated
	233	+	20 at the time the lease is executed, the lessor must file the
	234	+	21 return and pay the tax to the Department by the due date
	235	+	22 otherwise required by this Act for returns other than
	236	+	23 transaction returns. If the retailer is entitled under this
	237	+	24 Act to a discount for collecting and remitting the tax imposed
	238	+	25 under this Act to the Department with respect to the sale of
	239	+	26 the motor vehicle to the lessor, then the right to the discount
478	240
479	241
480		-	personal property in Illinois for purposes of this Act if,
481		-	during the previous 12-month period:
482		-	(1) the cumulative gross receipts from sales of
483		-	tangible personal property on its own behalf or on behalf
484		-	of marketplace sellers to purchasers in Illinois equals
485		-	$100,000 or more; or
486		-	(2) the marketplace facilitator enters into 200 or
487		-	more separate transactions on its own behalf or on behalf
488		-	of marketplace sellers for the sale of tangible personal
489		-	property to purchasers in Illinois, regardless of whether
490		-	the marketplace facilitator or marketplace sellers for
491		-	whom such sales are facilitated are registered as
492		-	retailers in this State.
493		-	A marketplace facilitator who meets either paragraph (1)
494		-	or (2) of this subsection is required to remit the applicable
495		-	State retailers' occupation taxes under this Act and local
496		-	retailers' occupation taxes administered by the Department on
497		-	all taxable sales of tangible personal property made by the
498		-	marketplace facilitator or facilitated for marketplace sellers
499		-	to customers in this State. A marketplace facilitator selling
500		-	or facilitating the sale of tangible personal property to
501		-	customers in this State is subject to all applicable
502		-	procedures and requirements of this Act.
503		-	The marketplace facilitator shall determine on a quarterly
504		-	basis, ending on the last day of March, June, September, and
505		-	December, whether he or she meets the criteria of either
506	242
507	243
508		-	paragraph (1) or (2) of this subsection for the preceding
509		-	12-month period. If the marketplace facilitator meets the
510		-	criteria of either paragraph (1) or (2) for a 12-month period,
511		-	he or she is considered a retailer maintaining a place of
512		-	business in this State and is required to remit the tax imposed
513		-	under this Act and all retailers' occupation tax imposed by
514		-	local taxing jurisdictions in Illinois, provided such local
515		-	taxes are administered by the Department, and to file all
516		-	applicable returns for one year. At the end of that one-year
517		-	period, the marketplace facilitator shall determine whether it
518		-	met the criteria of either paragraph (1) or (2) for the
519		-	preceding 12-month period. If the marketplace facilitator met
520		-	the criteria in either paragraph (1) or (2) for the preceding
521		-	12-month period, it is considered a retailer maintaining a
522		-	place of business in this State and is required to collect and
523		-	remit all applicable State and local retailers' occupation
524		-	taxes and file returns for the subsequent year. If at the end
525		-	of a one-year period a marketplace facilitator that was
526		-	required to collect and remit the tax imposed under this Act
527		-	determines that he or she did not meet the criteria in either
528		-	paragraph (1) or (2) during the preceding 12-month period, the
529		-	marketplace facilitator shall subsequently determine on a
530		-	quarterly basis, ending on the last day of March, June,
531		-	September, and December, whether he or she meets the criteria
532		-	of either paragraph (1) or (2) for the preceding 12-month
533		-	period.
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534	246
535	247
536		-	A marketplace facilitator shall be entitled to any
537		-	credits, deductions, or adjustments to the sales price
538		-	otherwise provided to the marketplace seller, in addition to
539		-	any such adjustments provided directly to the marketplace
540		-	facilitator. This Section pertains to, but is not limited to,
541		-	adjustments such as discounts, coupons, and rebates. In
542		-	addition, a marketplace facilitator shall be entitled to the
543		-	retailers' discount provided in Section 3 of the Retailers'
544		-	Occupation Tax Act on all marketplace sales, and the
545		-	marketplace seller shall not include sales made through a
546		-	marketplace facilitator when computing any retailers' discount
547		-	on remaining sales. Marketplace facilitators shall report and
548		-	remit the applicable State and local retailers' occupation
549		-	taxes on sales facilitated for marketplace sellers separately
550		-	from any sales or use tax collected on taxable retail sales
551		-	made directly by the marketplace facilitator or its
552		-	affiliates.
553		-	The marketplace facilitator is liable for the remittance
554		-	of all applicable State retailers' occupation taxes under this
555		-	Act and local retailers' occupation taxes administered by the
556		-	Department on sales through the marketplace and is subject to
557		-	audit on all such sales. The Department shall not audit
558		-	marketplace sellers for their marketplace sales where a
559		-	marketplace facilitator remitted the applicable State and
560		-	local retailers' occupation taxes unless the marketplace
561		-	facilitator seeks relief as a result of incorrect information
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	250	+	1 provided in this Act shall be transferred to the lessor with
	251	+	2 respect to the tax paid by the lessor for any amount received
	252	+	3 by the lessor from the lessee for the leased vehicle that is
	253	+	4 not calculated at the time the lease is executed; provided
	254	+	5 that the discount is only allowed if the return is timely filed
	255	+	6 and for amounts timely paid. The "selling price" of a motor
	256	+	7 vehicle that is sold on or after January 1, 2015 for the
	257	+	8 purpose of leasing for a defined period of longer than one year
	258	+	9 shall not be reduced by the value of or credit given for
	259	+	10 traded-in tangible personal property owned by the lessor, nor
	260	+	11 shall it be reduced by the value of or credit given for
	261	+	12 traded-in tangible personal property owned by the lessee,
	262	+	13 regardless of whether the trade-in value thereof is assigned
	263	+	14 by the lessee to the lessor. In the case of a motor vehicle
	264	+	15 that is sold for the purpose of leasing for a defined period of
	265	+	16 longer than one year, the sale occurs at the time of the
	266	+	17 delivery of the vehicle, regardless of the due date of any
	267	+	18 lease payments. A lessor who incurs a Retailers' Occupation
	268	+	19 Tax liability on the sale of a motor vehicle coming off lease
	269	+	20 may not take a credit against that liability for the Use Tax
	270	+	21 the lessor paid upon the purchase of the motor vehicle (or for
	271	+	22 any tax the lessor paid with respect to any amount received by
	272	+	23 the lessor from the lessee for the leased vehicle that was not
	273	+	24 calculated at the time the lease was executed) if the selling
	274	+	25 price of the motor vehicle at the time of purchase was
	275	+	26 calculated using the definition of "selling price" as defined
562	276
563	277
564		-	provided to the marketplace facilitator by a marketplace
565		-	seller as set forth in this Section. The marketplace
566		-	facilitator shall not be held liable for tax on any sales made
567		-	by a marketplace seller that take place outside of the
568		-	marketplace and which are not a part of any agreement between a
569		-	marketplace facilitator and a marketplace seller. In addition,
570		-	marketplace facilitators shall not be held liable to State and
571		-	local governments of Illinois for having charged and remitted
572		-	an incorrect amount of State and local retailers' occupation
573		-	tax if, at the time of the sale, the tax is computed based on
574		-	erroneous data provided by the State in database files on tax
575		-	rates, boundaries, or taxing jurisdictions or incorrect
576		-	information provided to the marketplace facilitator by the
577		-	marketplace seller.
578		-	(d) A marketplace facilitator shall:
579		-	(1) certify to each marketplace seller that the
580		-	marketplace facilitator assumes the rights and duties of a
581		-	retailer under this Act with respect to sales made by the
582		-	marketplace seller through the marketplace; and
583		-	(2) remit taxes imposed by this Act as required by
584		-	this Act for sales made through the marketplace.
585		-	(e) A marketplace seller shall retain books and records
586		-	for all sales made through a marketplace in accordance with
587		-	the requirements of this Act.
588		-	(f) A marketplace facilitator is subject to audit on all
589		-	marketplace sales for which it is considered to be the
590	278
591	279
592		-	retailer, but shall not be liable for tax or subject to audit
593		-	on sales made by marketplace sellers outside of the
594		-	marketplace.
595		-	(g) A marketplace facilitator required to collect taxes
596		-	imposed under the Use Tax Act on marketplace sales made to
597		-	Illinois purchasers shall be liable to the Department for such
598		-	taxes, except when the marketplace facilitator is relieved of
599		-	the duty to remit such taxes by virtue of having paid to the
600		-	Department taxes imposed by this Act in accordance with this
601		-	Section upon his or her gross receipts from such sales.
602		-	(h) Nothing in this Section shall allow the Department to
603		-	collect retailers' occupation taxes from both the marketplace
604		-	facilitator and marketplace seller on the same transaction.
605		-	(i) If, for any reason, the Department is prohibited from
606		-	enforcing the marketplace facilitator's duty under this Act to
607		-	remit taxes pursuant to this Section, the duty to remit such
608		-	taxes remains with the marketplace seller.
609		-	(j) Nothing in this Section affects the obligation of any
610		-	consumer to remit use tax for any taxable transaction for
611		-	which a certified service provider acting on behalf of a
612		-	remote retailer or a marketplace facilitator does not collect
613		-	and remit the appropriate tax.
614		-	(k) Nothing in this Section shall allow the Department to
615		-	collect the retailers' occupation tax from both the
616		-	marketplace facilitator and the marketplace seller.
617		-	(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
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618	282
619	283
620		-	(35 ILCS 120/2-12)
621		-	Sec. 2-12. Location where retailer is deemed to be engaged
622		-	in the business of selling. The purpose of this Section is to
623		-	specify where a retailer is deemed to be engaged in the
624		-	business of selling tangible personal property for the
625		-	purposes of this Act, the Use Tax Act, the Service Use Tax Act,
626		-	and the Service Occupation Tax Act, and for the purpose of
627		-	collecting any other local retailers' occupation tax
628		-	administered by the Department. This Section applies only with
629		-	respect to the particular selling activities described in the
630		-	following paragraphs. The provisions of this Section are not
631		-	intended to, and shall not be interpreted to, affect where a
632		-	retailer is deemed to be engaged in the business of selling
633		-	with respect to any activity that is not specifically
634		-	described in the following paragraphs.
635		-	(1) If a purchaser who is present at the retailer's
636		-	place of business, having no prior commitment to the
637		-	retailer, agrees to purchase and makes payment for
638		-	tangible personal property at the retailer's place of
639		-	business, then the transaction shall be deemed an
640		-	over-the-counter sale occurring at the retailer's same
641		-	place of business where the purchaser was present and made
642		-	payment for that tangible personal property if the
643		-	retailer regularly stocks the purchased tangible personal
644		-	property or similar tangible personal property in the
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	286	+	1 in this paragraph. Notwithstanding any other provision of this
	287	+	2 Act to the contrary, lessors shall file all returns and make
	288	+	3 all payments required under this paragraph to the Department
	289	+	4 by electronic means in the manner and form as required by the
	290	+	5 Department. This paragraph does not apply to leases of motor
	291	+	6 vehicles for which, at the time the lease is entered into, the
	292	+	7 term of the lease is not a defined period, including leases
	293	+	8 with a defined initial period with the option to continue the
	294	+	9 lease on a month-to-month or other basis beyond the initial
	295	+	10 defined period.
	296	+	11 The phrase "like kind and character" shall be liberally
	297	+	12 construed (including but not limited to any form of motor
	298	+	13 vehicle for any form of motor vehicle, or any kind of farm or
	299	+	14 agricultural implement for any other kind of farm or
	300	+	15 agricultural implement), while not including a kind of item
	301	+	16 which, if sold at retail by that retailer, would be exempt from
	302	+	17 retailers' occupation tax and use tax as an isolated or
	303	+	18 occasional sale.
	304	+	19 "Gross receipts" from the sales of tangible personal
	305	+	20 property at retail means the total selling price or the amount
	306	+	21 of such sales, as hereinbefore defined. In the case of charge
	307	+	22 and time sales, the amount thereof shall be included only as
	308	+	23 and when payments are received by the seller. Receipts or
	309	+	24 other consideration derived by a seller from the sale,
	310	+	25 transfer or assignment of accounts receivable to a wholly
	311	+	26 owned subsidiary will not be deemed payments prior to the time
645	312
646	313
647		-	quantity, or similar quantity, for sale at the retailer's
648		-	same place of business and then either (i) the purchaser
649		-	takes possession of the tangible personal property at the
650		-	same place of business or (ii) the retailer delivers or
651		-	arranges for the tangible personal property to be
652		-	delivered to the purchaser.
653		-	(2) If a purchaser, having no prior commitment to the
654		-	retailer, agrees to purchase tangible personal property
655		-	and makes payment over the phone, in writing, or via the
656		-	Internet and takes possession of the tangible personal
657		-	property at the retailer's place of business, then the
658		-	sale shall be deemed to have occurred at the retailer's
659		-	place of business where the purchaser takes possession of
660		-	the property if the retailer regularly stocks the item or
661		-	similar items in the quantity, or similar quantities,
662		-	purchased by the purchaser.
663		-	(3) A retailer is deemed to be engaged in the business
664		-	of selling food, beverages, or other tangible personal
665		-	property through a vending machine at the location where
666		-	the vending machine is located at the time the sale is made
667		-	if (i) the vending machine is a device operated by coin,
668		-	currency, credit card, token, coupon or similar device;
669		-	(2) the food, beverage or other tangible personal property
670		-	is contained within the vending machine and dispensed from
671		-	the vending machine; and (3) the purchaser takes
672		-	possession of the purchased food, beverage or other
673	314
674	315
675		-	tangible personal property immediately.
676		-	(4) Minerals. A producer of coal or other mineral
677		-	mined in Illinois is deemed to be engaged in the business
678		-	of selling at the place where the coal or other mineral
679		-	mined in Illinois is extracted from the earth. With
680		-	respect to minerals (i) the term "extracted from the
681		-	earth" means the location at which the coal or other
682		-	mineral is extracted from the mouth of the mine, and (ii) a
683		-	"mineral" includes not only coal, but also oil, sand,
684		-	stone taken from a quarry, gravel and any other thing
685		-	commonly regarded as a mineral and extracted from the
686		-	earth. This paragraph does not apply to coal or another
687		-	mineral when it is delivered or shipped by the seller to
688		-	the purchaser at a point outside Illinois so that the sale
689		-	is exempt under the United States Constitution as a sale
690		-	in interstate or foreign commerce.
691		-	(5) A retailer selling tangible personal property to a
692		-	nominal lessee or bailee pursuant to a lease with a dollar
693		-	or other nominal option to purchase is engaged in the
694		-	business of selling at the location where the property is
695		-	first delivered to the lessee or bailee for its intended
696		-	use.
697		-	(6) Beginning on January 1, 2021, a remote retailer
698		-	making retail sales of tangible personal property that
699		-	meet or exceed the thresholds established in paragraph (1)
700		-	or (2) of subsection (b) of Section 2 of this Act is
	316	+
	317	+	SB3362 Enrolled - 9 - LRB103 34186 HLH 66294 b
701	318
702	319
703		-	engaged in the business of selling at the Illinois
704		-	location to which the tangible personal property is
705		-	shipped or delivered or at which possession is taken by
706		-	the purchaser.
707		-	(7) Beginning January 1, 2021, a marketplace
708		-	facilitator facilitating sales of tangible personal
709		-	property that meet or exceed one of the thresholds
710		-	established in paragraph (1) or (2) of subsection (c) of
711		-	Section 2 of this Act is deemed to be engaged in the
712		-	business of selling at the Illinois location to which the
713		-	tangible personal property is shipped or delivered or at
714		-	which possession is taken by the purchaser when the sale
715		-	is made by a marketplace seller on the marketplace
716		-	facilitator's marketplace.
717		-	(8) Beginning on January 1, 2025, for sales that would
718		-	otherwise be sourced outside of this State, a retailer
719		-	maintaining a place of business in this State that makes
720		-	retail sales of tangible personal property to Illinois
721		-	customers from a location or locations outside of Illinois
722		-	is engaged in the business of selling at the Illinois
723		-	location to which the tangible personal property is
724		-	shipped or delivered or at which possession is taken by
725		-	the purchaser.
726		-	(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
	320	+	SB3362 Enrolled- 10 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 10 - LRB103 34186 HLH 66294 b
	321	+	SB3362 Enrolled - 10 - LRB103 34186 HLH 66294 b
	322	+	1 the purchaser makes payment on such accounts.
	323	+	2 "Department" means the Department of Revenue.
	324	+	3 "Person" means any natural individual, firm, partnership,
	325	+	4 association, joint stock company, joint adventure, public or
	326	+	5 private corporation, limited liability company, or a receiver,
	327	+	6 executor, trustee, guardian or other representative appointed
	328	+	7 by order of any court.
	329	+	8 The isolated or occasional sale of tangible personal
	330	+	9 property at retail by a person who does not hold himself out as
	331	+	10 being engaged (or who does not habitually engage) in selling
	332	+	11 such tangible personal property at retail, or a sale through a
	333	+	12 bulk vending machine, does not constitute engaging in a
	334	+	13 business of selling such tangible personal property at retail
	335	+	14 within the meaning of this Act; provided that any person who is
	336	+	15 engaged in a business which is not subject to the tax imposed
	337	+	16 by this Act because of involving the sale of or a contract to
	338	+	17 sell real estate or a construction contract to improve real
	339	+	18 estate or a construction contract to engineer, install, and
	340	+	19 maintain an integrated system of products, but who, in the
	341	+	20 course of conducting such business, transfers tangible
	342	+	21 personal property to users or consumers in the finished form
	343	+	22 in which it was purchased, and which does not become real
	344	+	23 estate or was not engineered and installed, under any
	345	+	24 provision of a construction contract or real estate sale or
	346	+	25 real estate sales agreement entered into with some other
	347	+	26 person arising out of or because of such nontaxable business,
	348	+
	349	+
	350	+
	351	+
	352	+
	353	+	SB3362 Enrolled - 10 - LRB103 34186 HLH 66294 b
	354	+
	355	+
	356	+	SB3362 Enrolled- 11 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 11 - LRB103 34186 HLH 66294 b
	357	+	SB3362 Enrolled - 11 - LRB103 34186 HLH 66294 b
	358	+	1 is engaged in the business of selling tangible personal
	359	+	2 property at retail to the extent of the value of the tangible
	360	+	3 personal property so transferred. If, in such a transaction, a
	361	+	4 separate charge is made for the tangible personal property so
	362	+	5 transferred, the value of such property, for the purpose of
	363	+	6 this Act, shall be the amount so separately charged, but not
	364	+	7 less than the cost of such property to the transferor; if no
	365	+	8 separate charge is made, the value of such property, for the
	366	+	9 purposes of this Act, is the cost to the transferor of such
	367	+	10 tangible personal property. Construction contracts for the
	368	+	11 improvement of real estate consisting of engineering,
	369	+	12 installation, and maintenance of voice, data, video, security,
	370	+	13 and all telecommunication systems do not constitute engaging
	371	+	14 in a business of selling tangible personal property at retail
	372	+	15 within the meaning of this Act if they are sold at one
	373	+	16 specified contract price.
	374	+	17 A person who holds himself or herself out as being engaged
	375	+	18 (or who habitually engages) in selling tangible personal
	376	+	19 property at retail is a person engaged in the business of
	377	+	20 selling tangible personal property at retail hereunder with
	378	+	21 respect to such sales (and not primarily in a service
	379	+	22 occupation) notwithstanding the fact that such person designs
	380	+	23 and produces such tangible personal property on special order
	381	+	24 for the purchaser and in such a way as to render the property
	382	+	25 of value only to such purchaser, if such tangible personal
	383	+	26 property so produced on special order serves substantially the
	384	+
	385	+
	386	+
	387	+
	388	+
	389	+	SB3362 Enrolled - 11 - LRB103 34186 HLH 66294 b
	390	+
	391	+
	392	+	SB3362 Enrolled- 12 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 12 - LRB103 34186 HLH 66294 b
	393	+	SB3362 Enrolled - 12 - LRB103 34186 HLH 66294 b
	394	+	1 same function as stock or standard items of tangible personal
	395	+	2 property that are sold at retail.
	396	+	3 Persons who engage in the business of transferring
	397	+	4 tangible personal property upon the redemption of trading
	398	+	5 stamps are engaged in the business of selling such property at
	399	+	6 retail and shall be liable for and shall pay the tax imposed by
	400	+	7 this Act on the basis of the retail value of the property
	401	+	8 transferred upon redemption of such stamps.
	402	+	9 "Bulk vending machine" means a vending machine, containing
	403	+	10 unsorted confections, nuts, toys, or other items designed
	404	+	11 primarily to be used or played with by children which, when a
	405	+	12 coin or coins of a denomination not larger than $0.50 are
	406	+	13 inserted, are dispensed in equal portions, at random and
	407	+	14 without selection by the customer.
	408	+	15 "Remote retailer" means a retailer that does not maintain
	409	+	16 within this State, directly or by a subsidiary, an office,
	410	+	17 distribution house, sales house, warehouse or other place of
	411	+	18 business, or any agent or other representative operating
	412	+	19 within this State under the authority of the retailer or its
	413	+	20 subsidiary, irrespective of whether such place of business or
	414	+	21 agent is located here permanently or temporarily or whether
	415	+	22 such retailer or subsidiary is licensed to do business in this
	416	+	23 State.
	417	+	24 "Retailer maintaining a place of business in this State"
	418	+	25 has the meaning given to that term in Section 2 of the Use Tax
	419	+	26 Act.
	420	+
	421	+
	422	+
	423	+
	424	+
	425	+	SB3362 Enrolled - 12 - LRB103 34186 HLH 66294 b
	426	+
	427	+
	428	+	SB3362 Enrolled- 13 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 13 - LRB103 34186 HLH 66294 b
	429	+	SB3362 Enrolled - 13 - LRB103 34186 HLH 66294 b
	430	+	1 "Marketplace" means a physical or electronic place, forum,
	431	+	2 platform, application, or other method by which a marketplace
	432	+	3 seller sells or offers to sell items.
	433	+	4 "Marketplace facilitator" means a person who, pursuant to
	434	+	5 an agreement with an unrelated third-party marketplace seller,
	435	+	6 directly or indirectly through one or more affiliates
	436	+	7 facilitates a retail sale by an unrelated third party
	437	+	8 marketplace seller by:
	438	+	9 (1) listing or advertising for sale by the marketplace
	439	+	10 seller in a marketplace, tangible personal property that
	440	+	11 is subject to tax under this Act; and
	441	+	12 (2) either directly or indirectly, through agreements
	442	+	13 or arrangements with third parties, collecting payment
	443	+	14 from the customer and transmitting that payment to the
	444	+	15 marketplace seller regardless of whether the marketplace
	445	+	16 facilitator receives compensation or other consideration
	446	+	17 in exchange for its services.
	447	+	18 A person who provides advertising services, including
	448	+	19 listing products for sale, is not considered a marketplace
	449	+	20 facilitator, so long as the advertising service platform or
	450	+	21 forum does not engage, directly or indirectly through one or
	451	+	22 more affiliated persons, in the activities described in
	452	+	23 paragraph (2) of this definition of "marketplace facilitator".
	453	+	24 "Marketplace facilitator" does not include any person
	454	+	25 licensed under the Auction License Act. This exemption does
	455	+	26 not apply to any person who is an Internet auction listing
	456	+
	457	+
	458	+
	459	+
	460	+
	461	+	SB3362 Enrolled - 13 - LRB103 34186 HLH 66294 b
	462	+
	463	+
	464	+	SB3362 Enrolled- 14 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 14 - LRB103 34186 HLH 66294 b
	465	+	SB3362 Enrolled - 14 - LRB103 34186 HLH 66294 b
	466	+	1 service, as defined by the Auction License Act.
	467	+	2 "Marketplace seller" means a person that makes sales
	468	+	3 through a marketplace operated by an unrelated third party
	469	+	4 marketplace facilitator.
	470	+	5 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
	471	+	6 102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
	472	+	7 5-13-22.)
	473	+	8 (35 ILCS 120/2) (from Ch. 120, par. 441)
	474	+	9 Sec. 2. Tax imposed.
	475	+	10 (a) A tax is imposed upon persons engaged in the business
	476	+	11 of selling at retail tangible personal property, including
	477	+	12 computer software, and including photographs, negatives, and
	478	+	13 positives that are the product of photoprocessing, but not
	479	+	14 including products of photoprocessing produced for use in
	480	+	15 motion pictures for public commercial exhibition. Beginning
	481	+	16 January 1, 2001, prepaid telephone calling arrangements shall
	482	+	17 be considered tangible personal property subject to the tax
	483	+	18 imposed under this Act regardless of the form in which those
	484	+	19 arrangements may be embodied, transmitted, or fixed by any
	485	+	20 method now known or hereafter developed. Sales of (1)
	486	+	21 electricity delivered to customers by wire; (2) natural or
	487	+	22 artificial gas that is delivered to customers through pipes,
	488	+	23 pipelines, or mains; and (3) water that is delivered to
	489	+	24 customers through pipes, pipelines, or mains are not subject
	490	+	25 to tax under this Act. The provisions of this amendatory Act of
	491	+
	492	+
	493	+
	494	+
	495	+
	496	+	SB3362 Enrolled - 14 - LRB103 34186 HLH 66294 b
	497	+
	498	+
	499	+	SB3362 Enrolled- 15 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 15 - LRB103 34186 HLH 66294 b
	500	+	SB3362 Enrolled - 15 - LRB103 34186 HLH 66294 b
	501	+	1 the 98th General Assembly are declaratory of existing law as
	502	+	2 to the meaning and scope of this Act.
	503	+	3 (b) Beginning on January 1, 2021, a remote retailer is
	504	+	4 engaged in the occupation of selling at retail in Illinois for
	505	+	5 purposes of this Act, if:
	506	+	6 (1) the cumulative gross receipts from sales of
	507	+	7 tangible personal property to purchasers in Illinois are
	508	+	8 $100,000 or more; or
	509	+	9 (2) the retailer enters into 200 or more separate
	510	+	10 transactions for the sale of tangible personal property to
	511	+	11 purchasers in Illinois.
	512	+	12 Remote retailers that meet or exceed the threshold in
	513	+	13 either paragraph (1) or (2) above shall be liable for all
	514	+	14 applicable State retailers' and locally imposed retailers'
	515	+	15 occupation taxes administered by the Department on all retail
	516	+	16 sales to Illinois purchasers.
	517	+	17 The remote retailer shall determine on a quarterly basis,
	518	+	18 ending on the last day of March, June, September, and
	519	+	19 December, whether he or she meets the criteria of either
	520	+	20 paragraph (1) or (2) of this subsection for the preceding
	521	+	21 12-month period. If the retailer meets the criteria of either
	522	+	22 paragraph (1) or (2) for a 12-month period, he or she is
	523	+	23 considered a retailer maintaining a place of business in this
	524	+	24 State and is required to collect and remit the tax imposed
	525	+	25 under this Act and all retailers' occupation tax imposed by
	526	+	26 local taxing jurisdictions in Illinois, provided such local
	527	+
	528	+
	529	+
	530	+
	531	+
	532	+	SB3362 Enrolled - 15 - LRB103 34186 HLH 66294 b
	533	+
	534	+
	535	+	SB3362 Enrolled- 16 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 16 - LRB103 34186 HLH 66294 b
	536	+	SB3362 Enrolled - 16 - LRB103 34186 HLH 66294 b
	537	+	1 taxes are administered by the Department, and to file all
	538	+	2 applicable returns for one year. At the end of that one-year
	539	+	3 period, the retailer shall determine whether the retailer met
	540	+	4 the criteria of either paragraph (1) or (2) for the preceding
	541	+	5 12-month period. If the retailer met the criteria in either
	542	+	6 paragraph (1) or (2) for the preceding 12-month period, he or
	543	+	7 she is considered a retailer maintaining a place of business
	544	+	8 in this State and is required to collect and remit all
	545	+	9 applicable State and local retailers' occupation taxes and
	546	+	10 file returns for the subsequent year. If, at the end of a
	547	+	11 one-year period, a retailer that was required to collect and
	548	+	12 remit the tax imposed under this Act determines that he or she
	549	+	13 did not meet the criteria in either paragraph (1) or (2) during
	550	+	14 the preceding 12-month period, then the retailer shall
	551	+	15 subsequently determine on a quarterly basis, ending on the
	552	+	16 last day of March, June, September, and December, whether he
	553	+	17 or she meets the criteria of either paragraph (1) or (2) for
	554	+	18 the preceding 12-month period.
	555	+	19 (b-2) Beginning on January 1, 2025, a retailer maintaining
	556	+	20 a place of business in this State that makes retail sales of
	557	+	21 tangible personal property to Illinois customers from a
	558	+	22 location or locations outside of Illinois is engaged in the
	559	+	23 occupation of selling at retail in Illinois for the purposes
	560	+	24 of this Act. Those retailers are liable for all applicable
	561	+	25 State and locally imposed retailers' occupation taxes
	562	+	26 administered by the Department on retail sales made by those
	563	+
	564	+
	565	+
	566	+
	567	+
	568	+	SB3362 Enrolled - 16 - LRB103 34186 HLH 66294 b
	569	+
	570	+
	571	+	SB3362 Enrolled- 17 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 17 - LRB103 34186 HLH 66294 b
	572	+	SB3362 Enrolled - 17 - LRB103 34186 HLH 66294 b
	573	+	1 retailers to Illinois customers from locations outside of
	574	+	2 Illinois.
	575	+	3 (b-5) For the purposes of this Section, neither the gross
	576	+	4 receipts from nor the number of separate transactions for
	577	+	5 sales of tangible personal property to purchasers in Illinois
	578	+	6 that a remote retailer makes through a marketplace facilitator
	579	+	7 shall be included for the purposes of determining whether he
	580	+	8 or she has met the thresholds of subsection (b) of this Section
	581	+	9 so long as the remote retailer has received certification from
	582	+	10 the marketplace facilitator that the marketplace facilitator
	583	+	11 is legally responsible for payment of tax on such sales.
	584	+	12 (b-10) A remote retailer that is required to collect taxes
	585	+	13 imposed under the Use Tax Act on retail sales made to Illinois
	586	+	14 purchasers or a retailer maintaining a place of business in
	587	+	15 this State that is required to collect taxes imposed under the
	588	+	16 Use Tax Act on retail sales made to Illinois purchasers shall
	589	+	17 be liable to the Department for such taxes, except when the
	590	+	18 remote retailer or retailer maintaining a place of business in
	591	+	19 this State is relieved of the duty to remit such taxes by
	592	+	20 virtue of having paid to the Department taxes imposed by this
	593	+	21 Act in accordance with this Section upon his or her gross
	594	+	22 receipts from such sales.
	595	+	23 (c) Marketplace facilitators engaged in the business of
	596	+	24 selling at retail tangible personal property in Illinois.
	597	+	25 Beginning January 1, 2021, a marketplace facilitator is
	598	+	26 engaged in the occupation of selling at retail tangible
	599	+
	600	+
	601	+
	602	+
	603	+
	604	+	SB3362 Enrolled - 17 - LRB103 34186 HLH 66294 b
	605	+
	606	+
	607	+	SB3362 Enrolled- 18 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 18 - LRB103 34186 HLH 66294 b
	608	+	SB3362 Enrolled - 18 - LRB103 34186 HLH 66294 b
	609	+	1 personal property in Illinois for purposes of this Act if,
	610	+	2 during the previous 12-month period:
	611	+	3 (1) the cumulative gross receipts from sales of
	612	+	4 tangible personal property on its own behalf or on behalf
	613	+	5 of marketplace sellers to purchasers in Illinois equals
	614	+	6 $100,000 or more; or
	615	+	7 (2) the marketplace facilitator enters into 200 or
	616	+	8 more separate transactions on its own behalf or on behalf
	617	+	9 of marketplace sellers for the sale of tangible personal
	618	+	10 property to purchasers in Illinois, regardless of whether
	619	+	11 the marketplace facilitator or marketplace sellers for
	620	+	12 whom such sales are facilitated are registered as
	621	+	13 retailers in this State.
	622	+	14 A marketplace facilitator who meets either paragraph (1)
	623	+	15 or (2) of this subsection is required to remit the applicable
	624	+	16 State retailers' occupation taxes under this Act and local
	625	+	17 retailers' occupation taxes administered by the Department on
	626	+	18 all taxable sales of tangible personal property made by the
	627	+	19 marketplace facilitator or facilitated for marketplace sellers
	628	+	20 to customers in this State. A marketplace facilitator selling
	629	+	21 or facilitating the sale of tangible personal property to
	630	+	22 customers in this State is subject to all applicable
	631	+	23 procedures and requirements of this Act.
	632	+	24 The marketplace facilitator shall determine on a quarterly
	633	+	25 basis, ending on the last day of March, June, September, and
	634	+	26 December, whether he or she meets the criteria of either
	635	+
	636	+
	637	+
	638	+
	639	+
	640	+	SB3362 Enrolled - 18 - LRB103 34186 HLH 66294 b
	641	+
	642	+
	643	+	SB3362 Enrolled- 19 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 19 - LRB103 34186 HLH 66294 b
	644	+	SB3362 Enrolled - 19 - LRB103 34186 HLH 66294 b
	645	+	1 paragraph (1) or (2) of this subsection for the preceding
	646	+	2 12-month period. If the marketplace facilitator meets the
	647	+	3 criteria of either paragraph (1) or (2) for a 12-month period,
	648	+	4 he or she is considered a retailer maintaining a place of
	649	+	5 business in this State and is required to remit the tax imposed
	650	+	6 under this Act and all retailers' occupation tax imposed by
	651	+	7 local taxing jurisdictions in Illinois, provided such local
	652	+	8 taxes are administered by the Department, and to file all
	653	+	9 applicable returns for one year. At the end of that one-year
	654	+	10 period, the marketplace facilitator shall determine whether it
	655	+	11 met the criteria of either paragraph (1) or (2) for the
	656	+	12 preceding 12-month period. If the marketplace facilitator met
	657	+	13 the criteria in either paragraph (1) or (2) for the preceding
	658	+	14 12-month period, it is considered a retailer maintaining a
	659	+	15 place of business in this State and is required to collect and
	660	+	16 remit all applicable State and local retailers' occupation
	661	+	17 taxes and file returns for the subsequent year. If at the end
	662	+	18 of a one-year period a marketplace facilitator that was
	663	+	19 required to collect and remit the tax imposed under this Act
	664	+	20 determines that he or she did not meet the criteria in either
	665	+	21 paragraph (1) or (2) during the preceding 12-month period, the
	666	+	22 marketplace facilitator shall subsequently determine on a
	667	+	23 quarterly basis, ending on the last day of March, June,
	668	+	24 September, and December, whether he or she meets the criteria
	669	+	25 of either paragraph (1) or (2) for the preceding 12-month
	670	+	26 period.
	671	+
	672	+
	673	+
	674	+
	675	+
	676	+	SB3362 Enrolled - 19 - LRB103 34186 HLH 66294 b
	677	+
	678	+
	679	+	SB3362 Enrolled- 20 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 20 - LRB103 34186 HLH 66294 b
	680	+	SB3362 Enrolled - 20 - LRB103 34186 HLH 66294 b
	681	+	1 A marketplace facilitator shall be entitled to any
	682	+	2 credits, deductions, or adjustments to the sales price
	683	+	3 otherwise provided to the marketplace seller, in addition to
	684	+	4 any such adjustments provided directly to the marketplace
	685	+	5 facilitator. This Section pertains to, but is not limited to,
	686	+	6 adjustments such as discounts, coupons, and rebates. In
	687	+	7 addition, a marketplace facilitator shall be entitled to the
	688	+	8 retailers' discount provided in Section 3 of the Retailers'
	689	+	9 Occupation Tax Act on all marketplace sales, and the
	690	+	10 marketplace seller shall not include sales made through a
	691	+	11 marketplace facilitator when computing any retailers' discount
	692	+	12 on remaining sales. Marketplace facilitators shall report and
	693	+	13 remit the applicable State and local retailers' occupation
	694	+	14 taxes on sales facilitated for marketplace sellers separately
	695	+	15 from any sales or use tax collected on taxable retail sales
	696	+	16 made directly by the marketplace facilitator or its
	697	+	17 affiliates.
	698	+	18 The marketplace facilitator is liable for the remittance
	699	+	19 of all applicable State retailers' occupation taxes under this
	700	+	20 Act and local retailers' occupation taxes administered by the
	701	+	21 Department on sales through the marketplace and is subject to
	702	+	22 audit on all such sales. The Department shall not audit
	703	+	23 marketplace sellers for their marketplace sales where a
	704	+	24 marketplace facilitator remitted the applicable State and
	705	+	25 local retailers' occupation taxes unless the marketplace
	706	+	26 facilitator seeks relief as a result of incorrect information
	707	+
	708	+
	709	+
	710	+
	711	+
	712	+	SB3362 Enrolled - 20 - LRB103 34186 HLH 66294 b
	713	+
	714	+
	715	+	SB3362 Enrolled- 21 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 21 - LRB103 34186 HLH 66294 b
	716	+	SB3362 Enrolled - 21 - LRB103 34186 HLH 66294 b
	717	+	1 provided to the marketplace facilitator by a marketplace
	718	+	2 seller as set forth in this Section. The marketplace
	719	+	3 facilitator shall not be held liable for tax on any sales made
	720	+	4 by a marketplace seller that take place outside of the
	721	+	5 marketplace and which are not a part of any agreement between a
	722	+	6 marketplace facilitator and a marketplace seller. In addition,
	723	+	7 marketplace facilitators shall not be held liable to State and
	724	+	8 local governments of Illinois for having charged and remitted
	725	+	9 an incorrect amount of State and local retailers' occupation
	726	+	10 tax if, at the time of the sale, the tax is computed based on
	727	+	11 erroneous data provided by the State in database files on tax
	728	+	12 rates, boundaries, or taxing jurisdictions or incorrect
	729	+	13 information provided to the marketplace facilitator by the
	730	+	14 marketplace seller.
	731	+	15 (d) A marketplace facilitator shall:
	732	+	16 (1) certify to each marketplace seller that the
	733	+	17 marketplace facilitator assumes the rights and duties of a
	734	+	18 retailer under this Act with respect to sales made by the
	735	+	19 marketplace seller through the marketplace; and
	736	+	20 (2) remit taxes imposed by this Act as required by
	737	+	21 this Act for sales made through the marketplace.
	738	+	22 (e) A marketplace seller shall retain books and records
	739	+	23 for all sales made through a marketplace in accordance with
	740	+	24 the requirements of this Act.
	741	+	25 (f) A marketplace facilitator is subject to audit on all
	742	+	26 marketplace sales for which it is considered to be the
	743	+
	744	+
	745	+
	746	+
	747	+
	748	+	SB3362 Enrolled - 21 - LRB103 34186 HLH 66294 b
	749	+
	750	+
	751	+	SB3362 Enrolled- 22 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 22 - LRB103 34186 HLH 66294 b
	752	+	SB3362 Enrolled - 22 - LRB103 34186 HLH 66294 b
	753	+	1 retailer, but shall not be liable for tax or subject to audit
	754	+	2 on sales made by marketplace sellers outside of the
	755	+	3 marketplace.
	756	+	4 (g) A marketplace facilitator required to collect taxes
	757	+	5 imposed under the Use Tax Act on marketplace sales made to
	758	+	6 Illinois purchasers shall be liable to the Department for such
	759	+	7 taxes, except when the marketplace facilitator is relieved of
	760	+	8 the duty to remit such taxes by virtue of having paid to the
	761	+	9 Department taxes imposed by this Act in accordance with this
	762	+	10 Section upon his or her gross receipts from such sales.
	763	+	11 (h) Nothing in this Section shall allow the Department to
	764	+	12 collect retailers' occupation taxes from both the marketplace
	765	+	13 facilitator and marketplace seller on the same transaction.
	766	+	14 (i) If, for any reason, the Department is prohibited from
	767	+	15 enforcing the marketplace facilitator's duty under this Act to
	768	+	16 remit taxes pursuant to this Section, the duty to remit such
	769	+	17 taxes remains with the marketplace seller.
	770	+	18 (j) Nothing in this Section affects the obligation of any
	771	+	19 consumer to remit use tax for any taxable transaction for
	772	+	20 which a certified service provider acting on behalf of a
	773	+	21 remote retailer or a marketplace facilitator does not collect
	774	+	22 and remit the appropriate tax.
	775	+	23 (k) Nothing in this Section shall allow the Department to
	776	+	24 collect the retailers' occupation tax from both the
	777	+	25 marketplace facilitator and the marketplace seller.
	778	+	26 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
	779	+
	780	+
	781	+
	782	+
	783	+
	784	+	SB3362 Enrolled - 22 - LRB103 34186 HLH 66294 b
	785	+
	786	+
	787	+	SB3362 Enrolled- 23 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 23 - LRB103 34186 HLH 66294 b
	788	+	SB3362 Enrolled - 23 - LRB103 34186 HLH 66294 b
	789	+	1 (35 ILCS 120/2-12)
	790	+	2 Sec. 2-12. Location where retailer is deemed to be engaged
	791	+	3 in the business of selling. The purpose of this Section is to
	792	+	4 specify where a retailer is deemed to be engaged in the
	793	+	5 business of selling tangible personal property for the
	794	+	6 purposes of this Act, the Use Tax Act, the Service Use Tax Act,
	795	+	7 and the Service Occupation Tax Act, and for the purpose of
	796	+	8 collecting any other local retailers' occupation tax
	797	+	9 administered by the Department. This Section applies only with
	798	+	10 respect to the particular selling activities described in the
	799	+	11 following paragraphs. The provisions of this Section are not
	800	+	12 intended to, and shall not be interpreted to, affect where a
	801	+	13 retailer is deemed to be engaged in the business of selling
	802	+	14 with respect to any activity that is not specifically
	803	+	15 described in the following paragraphs.
	804	+	16 (1) If a purchaser who is present at the retailer's
	805	+	17 place of business, having no prior commitment to the
	806	+	18 retailer, agrees to purchase and makes payment for
	807	+	19 tangible personal property at the retailer's place of
	808	+	20 business, then the transaction shall be deemed an
	809	+	21 over-the-counter sale occurring at the retailer's same
	810	+	22 place of business where the purchaser was present and made
	811	+	23 payment for that tangible personal property if the
	812	+	24 retailer regularly stocks the purchased tangible personal
	813	+	25 property or similar tangible personal property in the
	814	+
	815	+
	816	+
	817	+
	818	+
	819	+	SB3362 Enrolled - 23 - LRB103 34186 HLH 66294 b
	820	+
	821	+
	822	+	SB3362 Enrolled- 24 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 24 - LRB103 34186 HLH 66294 b
	823	+	SB3362 Enrolled - 24 - LRB103 34186 HLH 66294 b
	824	+	1 quantity, or similar quantity, for sale at the retailer's
	825	+	2 same place of business and then either (i) the purchaser
	826	+	3 takes possession of the tangible personal property at the
	827	+	4 same place of business or (ii) the retailer delivers or
	828	+	5 arranges for the tangible personal property to be
	829	+	6 delivered to the purchaser.
	830	+	7 (2) If a purchaser, having no prior commitment to the
	831	+	8 retailer, agrees to purchase tangible personal property
	832	+	9 and makes payment over the phone, in writing, or via the
	833	+	10 Internet and takes possession of the tangible personal
	834	+	11 property at the retailer's place of business, then the
	835	+	12 sale shall be deemed to have occurred at the retailer's
	836	+	13 place of business where the purchaser takes possession of
	837	+	14 the property if the retailer regularly stocks the item or
	838	+	15 similar items in the quantity, or similar quantities,
	839	+	16 purchased by the purchaser.
	840	+	17 (3) A retailer is deemed to be engaged in the business
	841	+	18 of selling food, beverages, or other tangible personal
	842	+	19 property through a vending machine at the location where
	843	+	20 the vending machine is located at the time the sale is made
	844	+	21 if (i) the vending machine is a device operated by coin,
	845	+	22 currency, credit card, token, coupon or similar device;
	846	+	23 (2) the food, beverage or other tangible personal property
	847	+	24 is contained within the vending machine and dispensed from
	848	+	25 the vending machine; and (3) the purchaser takes
	849	+	26 possession of the purchased food, beverage or other
	850	+
	851	+
	852	+
	853	+
	854	+
	855	+	SB3362 Enrolled - 24 - LRB103 34186 HLH 66294 b
	856	+
	857	+
	858	+	SB3362 Enrolled- 25 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 25 - LRB103 34186 HLH 66294 b
	859	+	SB3362 Enrolled - 25 - LRB103 34186 HLH 66294 b
	860	+	1 tangible personal property immediately.
	861	+	2 (4) Minerals. A producer of coal or other mineral
	862	+	3 mined in Illinois is deemed to be engaged in the business
	863	+	4 of selling at the place where the coal or other mineral
	864	+	5 mined in Illinois is extracted from the earth. With
	865	+	6 respect to minerals (i) the term "extracted from the
	866	+	7 earth" means the location at which the coal or other
	867	+	8 mineral is extracted from the mouth of the mine, and (ii) a
	868	+	9 "mineral" includes not only coal, but also oil, sand,
	869	+	10 stone taken from a quarry, gravel and any other thing
	870	+	11 commonly regarded as a mineral and extracted from the
	871	+	12 earth. This paragraph does not apply to coal or another
	872	+	13 mineral when it is delivered or shipped by the seller to
	873	+	14 the purchaser at a point outside Illinois so that the sale
	874	+	15 is exempt under the United States Constitution as a sale
	875	+	16 in interstate or foreign commerce.
	876	+	17 (5) A retailer selling tangible personal property to a
	877	+	18 nominal lessee or bailee pursuant to a lease with a dollar
	878	+	19 or other nominal option to purchase is engaged in the
	879	+	20 business of selling at the location where the property is
	880	+	21 first delivered to the lessee or bailee for its intended
	881	+	22 use.
	882	+	23 (6) Beginning on January 1, 2021, a remote retailer
	883	+	24 making retail sales of tangible personal property that
	884	+	25 meet or exceed the thresholds established in paragraph (1)
	885	+	26 or (2) of subsection (b) of Section 2 of this Act is
	886	+
	887	+
	888	+
	889	+
	890	+
	891	+	SB3362 Enrolled - 25 - LRB103 34186 HLH 66294 b
	892	+
	893	+
	894	+	SB3362 Enrolled- 26 -LRB103 34186 HLH 66294 b SB3362 Enrolled - 26 - LRB103 34186 HLH 66294 b
	895	+	SB3362 Enrolled - 26 - LRB103 34186 HLH 66294 b
	896	+	1 engaged in the business of selling at the Illinois
	897	+	2 location to which the tangible personal property is
	898	+	3 shipped or delivered or at which possession is taken by
	899	+	4 the purchaser.
	900	+	5 (7) Beginning January 1, 2021, a marketplace
	901	+	6 facilitator facilitating sales of tangible personal
	902	+	7 property that meet or exceed one of the thresholds
	903	+	8 established in paragraph (1) or (2) of subsection (c) of
	904	+	9 Section 2 of this Act is deemed to be engaged in the
	905	+	10 business of selling at the Illinois location to which the
	906	+	11 tangible personal property is shipped or delivered or at
	907	+	12 which possession is taken by the purchaser when the sale
	908	+	13 is made by a marketplace seller on the marketplace
	909	+	14 facilitator's marketplace.
	910	+	15 (8) Beginning on January 1, 2025, for sales that would
	911	+	16 otherwise be sourced outside of this State, a retailer
	912	+	17 maintaining a place of business in this State that makes
	913	+	18 retail sales of tangible personal property to Illinois
	914	+	19 customers from a location or locations outside of Illinois
	915	+	20 is engaged in the business of selling at the Illinois
	916	+	21 location to which the tangible personal property is
	917	+	22 shipped or delivered or at which possession is taken by
	918	+	23 the purchaser.
	919	+	24 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
	920	+
	921	+
	922	+
	923	+
	924	+
	925	+	SB3362 Enrolled - 26 - LRB103 34186 HLH 66294 b