Bill Text: IL HB5423 | 2011-2012 | 97th General Assembly | Amended
Bill Title: Amends the Property Tax Code. Makes a technical change in a Section concerning the long-time occupant homestead exemption.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [HB5423 Detail]
Download: Illinois-2011-HB5423-Amended.html
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1 | AMENDMENT TO HOUSE BILL 5423
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2 | AMENDMENT NO. ______. Amend House Bill 5423 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Use Tax Act is amended by changing Section | ||||||
5 | 2 as follows:
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6 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
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7 | Sec. 2. "Use" means the exercise by any person of any right | ||||||
8 | or power over
tangible personal property incident to the | ||||||
9 | ownership of that property,
except that it does not include the | ||||||
10 | sale of such property in any form as
tangible personal property | ||||||
11 | in the regular course of business to the extent
that such | ||||||
12 | property is not first subjected to a use for which it was
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13 | purchased, and does not include the use of such property by its | ||||||
14 | owner for
demonstration purposes: Provided that the property | ||||||
15 | purchased is deemed to
be purchased for the purpose of resale, | ||||||
16 | despite first being used, to the
extent to which it is resold |
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1 | as an ingredient of an intentionally produced
product or | ||||||
2 | by-product of manufacturing. "Use" does not mean the | ||||||
3 | demonstration
use or interim use of tangible personal property | ||||||
4 | by a retailer before he sells
that tangible personal property. | ||||||
5 | For watercraft or aircraft, if the period of
demonstration use | ||||||
6 | or interim use by the retailer exceeds 18 months,
the retailer
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7 | shall pay on the retailers' original cost price the tax imposed | ||||||
8 | by this Act,
and no credit for that tax is permitted if the | ||||||
9 | watercraft or aircraft is
subsequently sold by the retailer. | ||||||
10 | "Use" does not mean the physical
incorporation of tangible | ||||||
11 | personal property, to the extent not first subjected
to a use | ||||||
12 | for which it was purchased, as an ingredient or constituent, | ||||||
13 | into
other tangible personal property (a) which is sold in the | ||||||
14 | regular course of
business or (b) which the person | ||||||
15 | incorporating such ingredient or constituent
therein has | ||||||
16 | undertaken at the time of such purchase to cause to be | ||||||
17 | transported
in interstate commerce to destinations outside the | ||||||
18 | State of Illinois: Provided
that the property purchased is | ||||||
19 | deemed to be purchased for the purpose of
resale, despite first | ||||||
20 | being used, to the extent to which it is resold as an
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21 | ingredient of an intentionally produced product or by-product | ||||||
22 | of manufacturing.
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23 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
24 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
25 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
26 | with an inboard motor.
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1 | "Purchase at retail" means the acquisition of the ownership | ||||||
2 | of or title
to tangible personal property through a sale at | ||||||
3 | retail.
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4 | "Purchaser" means anyone who, through a sale at retail, | ||||||
5 | acquires the
ownership of tangible personal property for a | ||||||
6 | valuable consideration.
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7 | "Sale at retail" means any transfer of the ownership of or | ||||||
8 | title to
tangible personal property to a purchaser, for the | ||||||
9 | purpose of use, and not
for the purpose of resale in any form | ||||||
10 | as tangible personal property to the
extent not first subjected | ||||||
11 | to a use for which it was purchased, for a
valuable | ||||||
12 | consideration: Provided that the property purchased is deemed | ||||||
13 | to
be purchased for the purpose of resale, despite first being | ||||||
14 | used, to the
extent to which it is resold as an ingredient of | ||||||
15 | an intentionally produced
product or by-product of | ||||||
16 | manufacturing. For this purpose, slag produced as
an incident | ||||||
17 | to manufacturing pig iron or steel and sold is considered to be
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18 | an intentionally produced by-product of manufacturing. "Sale | ||||||
19 | at retail"
includes any such transfer made for resale unless | ||||||
20 | made in compliance with
Section 2c of the Retailers' Occupation | ||||||
21 | Tax Act, as incorporated by
reference into Section 12 of this | ||||||
22 | Act. Transactions whereby the possession
of the property is | ||||||
23 | transferred but the seller retains the title as security
for | ||||||
24 | payment of the selling price are sales.
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25 | "Sale at retail" shall also be construed to include any | ||||||
26 | Illinois
florist's sales transaction in which the purchase |
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1 | order is received in
Illinois by a florist and the sale is for | ||||||
2 | use or consumption, but the
Illinois florist has a florist in | ||||||
3 | another state deliver the property to the
purchaser or the | ||||||
4 | purchaser's donee in such other state.
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5 | Nonreusable tangible personal property that is used by | ||||||
6 | persons engaged in
the business of operating a restaurant, | ||||||
7 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
8 | transferred to customers in the ordinary course of business
as | ||||||
9 | part of the sale of food or beverages and is used to deliver, | ||||||
10 | package, or
consume food or beverages, regardless of where | ||||||
11 | consumption of the food or
beverages occurs. Examples of those | ||||||
12 | items include, but are not limited to
nonreusable, paper and | ||||||
13 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
14 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
15 | and
wrapping or packaging
materials that are transferred to | ||||||
16 | customers as part of the sale of food or
beverages in the | ||||||
17 | ordinary course of business.
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18 | The purchase, employment and transfer of such tangible | ||||||
19 | personal property
as newsprint and ink for the primary purpose | ||||||
20 | of conveying news (with or
without other information) is not a | ||||||
21 | purchase, use or sale of tangible
personal property.
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22 | "Selling price" means the consideration for a sale valued | ||||||
23 | in money
whether received in money or otherwise, including | ||||||
24 | cash, credits, property
other than as hereinafter provided, and | ||||||
25 | services, but not including the
value of or credit given for | ||||||
26 | traded-in tangible personal property where the
item that is |
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1 | traded-in is of like kind and character as that which is being
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2 | sold, and shall be determined without any deduction on account | ||||||
3 | of the cost
of the property sold, the cost of materials used, | ||||||
4 | labor or service cost or
any other expense whatsoever, but does | ||||||
5 | not include interest or finance
charges which appear as | ||||||
6 | separate items on the bill of sale or sales
contract nor | ||||||
7 | charges that are added to prices by sellers on account of the
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8 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
9 | Act", or on
account of the seller's duty to collect, from the | ||||||
10 | purchaser, the tax that
is imposed by this Act, or, except as | ||||||
11 | otherwise provided with respect to any cigarette tax imposed by | ||||||
12 | a home rule unit, on account of the seller's tax liability | ||||||
13 | under any local occupation tax administered by the Department, | ||||||
14 | or, except as otherwise provided with respect to any cigarette | ||||||
15 | tax imposed by a home rule unit on account of the seller's duty | ||||||
16 | to collect, from the purchasers, the tax that is imposed under | ||||||
17 | any local use tax administered by the Department. Effective | ||||||
18 | December 1, 1985, "selling price"
shall include charges that | ||||||
19 | are added to prices by sellers on account of the
seller's tax | ||||||
20 | liability under the Cigarette Tax Act, on account of the | ||||||
21 | seller's
duty to collect, from the purchaser, the tax imposed | ||||||
22 | under the Cigarette Use
Tax Act, and on account of the seller's | ||||||
23 | duty to collect, from the purchaser,
any cigarette tax imposed | ||||||
24 | by a home rule unit.
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25 | The phrase "like kind and character" shall be liberally | ||||||
26 | construed
(including but not limited to any form of motor |
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1 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
2 | agricultural implement for any other
kind of farm or | ||||||
3 | agricultural implement), while not including a kind of item
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4 | which, if sold at retail by that retailer, would be exempt from | ||||||
5 | retailers'
occupation tax and use tax as an isolated or | ||||||
6 | occasional sale.
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7 | "Department" means the Department of Revenue.
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8 | "Person" means any natural individual, firm, partnership, | ||||||
9 | association,
joint stock company, joint adventure, public or | ||||||
10 | private corporation, limited
liability company, or a
receiver, | ||||||
11 | executor, trustee, guardian or other representative appointed
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12 | by order of any court.
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13 | "Retailer" means and includes every person engaged in the | ||||||
14 | business of
making sales at retail as defined in this Section.
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15 | A person who holds himself or herself out as being engaged | ||||||
16 | (or who habitually
engages) in selling tangible personal | ||||||
17 | property at retail is a retailer
hereunder with respect to such | ||||||
18 | sales (and not primarily in a service
occupation) | ||||||
19 | notwithstanding the fact that such person designs and produces
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20 | such tangible personal property on special order for the | ||||||
21 | purchaser and in
such a way as to render the property of value | ||||||
22 | only to such purchaser, if
such tangible personal property so | ||||||
23 | produced on special order serves
substantially the same | ||||||
24 | function as stock or standard items of tangible
personal | ||||||
25 | property that are sold at retail.
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26 | A person whose activities are organized and conducted |
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1 | primarily as a
not-for-profit service enterprise, and who | ||||||
2 | engages in selling tangible
personal property at retail | ||||||
3 | (whether to the public or merely to members and
their guests) | ||||||
4 | is a retailer with respect to such transactions, excepting
only | ||||||
5 | a person organized and operated exclusively for charitable, | ||||||
6 | religious
or educational purposes either (1), to the extent of | ||||||
7 | sales by such person
to its members, students, patients or | ||||||
8 | inmates of tangible personal property
to be used primarily for | ||||||
9 | the purposes of such person, or (2), to the extent
of sales by | ||||||
10 | such person of tangible personal property which is not sold or
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11 | offered for sale by persons organized for profit. The selling | ||||||
12 | of school
books and school supplies by schools at retail to | ||||||
13 | students is not
"primarily for the purposes of" the school | ||||||
14 | which does such selling. This
paragraph does not apply to nor | ||||||
15 | subject to taxation occasional dinners,
socials, social or | ||||||
16 | similar activities of a person organized and operated | ||||||
17 | exclusively
for charitable, religious or educational purposes, | ||||||
18 | whether or not such
activities are open to the public. As used | ||||||
19 | in this paragraph, "occasional" means not more than 2 such | ||||||
20 | activities in any calendar year, to be chosen by the person | ||||||
21 | organized and operated exclusively for charitable, religious, | ||||||
22 | or educational purposes. Any sales of tangible personal | ||||||
23 | property at retail at an activity that would otherwise qualify | ||||||
24 | as an exempt occasional dinner, social, or similar activity are | ||||||
25 | taxable if that activity exceeds the 2-activity limit in a | ||||||
26 | calendar year. Notwithstanding any other provision of this |
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1 | paragraph to the contrary, on and after July 1, 2012, sales of | ||||||
2 | tangible personal property at retail at an occasional dinner, | ||||||
3 | social, or similar activity that falls within the 2-activity | ||||||
4 | limit and is held by a person organized and operated | ||||||
5 | exclusively for charitable, religious, or educational purposes | ||||||
6 | are exempt from taxation under this Act only if 100% of the | ||||||
7 | gross revenues generated from the activity, after reasonable | ||||||
8 | expenses, are paid to that person and used for charitable, | ||||||
9 | religious, or educational purposes. As used in this paragraph, | ||||||
10 | the phrase "gross revenues generated from the activity" | ||||||
11 | includes, but is not limited to, revenues from: admission or | ||||||
12 | ticket sales, sales of tangible personal property, | ||||||
13 | sponsorships, and broadcast rights. As used in this paragraph a | ||||||
14 | "dinner, social, or similar activity" includes, but is not | ||||||
15 | limited to, a dinner, ice cream social, fun fair, carnival, | ||||||
16 | rummage sale, bazaar, bake sale, charity auction or other | ||||||
17 | fundraising event, street fair, indoor or outdoor concert or | ||||||
18 | performance, and the like. If an occasional dinner, social, or | ||||||
19 | similar activity otherwise meets the requirements of this | ||||||
20 | paragraph, then the exemption for sales of tangible personal | ||||||
21 | property at retail at that activity applies whether or not the | ||||||
22 | items that are sold are purchased or donated for the purpose of | ||||||
23 | the sale, and whether or not the activity is open to the | ||||||
24 | public. If an occasional dinner, social, or similar activity | ||||||
25 | otherwise meets the requirements of this paragraph, then the | ||||||
26 | exemption for sales of tangible personal property at retail at |
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1 | that activity applies whether or not items sold at the | ||||||
2 | occasional dinner, social, or similar activity are also sold or | ||||||
3 | offered for sale by persons organized for profit. The | ||||||
4 | Department by rule shall determine what constitutes reasonable | ||||||
5 | expenses under this paragraph.
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6 | A person who is the recipient of a grant or contract under | ||||||
7 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
8 | serves meals to
participants in the federal Nutrition Program | ||||||
9 | for the Elderly in return for
contributions established in | ||||||
10 | amount by the individual participant pursuant
to a schedule of | ||||||
11 | suggested fees as provided for in the federal Act is not a
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12 | retailer under this Act with respect to such transactions.
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13 | Persons who engage in the business of transferring tangible | ||||||
14 | personal
property upon the redemption of trading stamps are | ||||||
15 | retailers hereunder when
engaged in such business.
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16 | The isolated or occasional sale of tangible personal | ||||||
17 | property at retail
by a person who does not hold himself out as | ||||||
18 | being engaged (or who does not
habitually engage) in selling | ||||||
19 | such tangible personal property at retail or
a sale through a | ||||||
20 | bulk vending machine does not make such person a retailer
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21 | hereunder. However, any person who is engaged in a business | ||||||
22 | which is not
subject to the tax imposed by the "Retailers' | ||||||
23 | Occupation Tax Act" because
of involving the sale of or a | ||||||
24 | contract to sell real estate or a
construction contract to | ||||||
25 | improve real estate, but who, in the course of
conducting such | ||||||
26 | business, transfers tangible personal property to users or
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1 | consumers in the finished form in which it was purchased, and | ||||||
2 | which does
not become real estate, under any provision of a | ||||||
3 | construction contract or
real estate sale or real estate sales | ||||||
4 | agreement entered into with some
other person arising out of or | ||||||
5 | because of such nontaxable business, is a
retailer to the | ||||||
6 | extent of the value of the tangible personal property so
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7 | transferred. If, in such transaction, a separate charge is made | ||||||
8 | for the
tangible personal property so transferred, the value of | ||||||
9 | such property, for
the purposes of this Act, is the amount so | ||||||
10 | separately charged, but not less
than the cost of such property | ||||||
11 | to the transferor; if no separate charge is
made, the value of | ||||||
12 | such property, for the purposes of this Act, is the cost
to the | ||||||
13 | transferor of such tangible personal property.
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14 | "Retailer maintaining a place of business in this State", | ||||||
15 | or any like
term, means and includes any of the following | ||||||
16 | retailers:
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17 | 1. A retailer having or maintaining within this State, | ||||||
18 | directly or by
a subsidiary, an office, distribution house, | ||||||
19 | sales house, warehouse or other
place of business, or any | ||||||
20 | agent or other representative operating within this
State | ||||||
21 | under the authority of the retailer or its subsidiary, | ||||||
22 | irrespective of
whether such place of business or agent or | ||||||
23 | other representative is located here
permanently or | ||||||
24 | temporarily, or whether such retailer or subsidiary is | ||||||
25 | licensed
to do business in this State. However, the | ||||||
26 | ownership of property that is
located at the premises of a |
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1 | printer with which the retailer has contracted for
printing | ||||||
2 | and that consists of the final printed product, property | ||||||
3 | that becomes
a part of the final printed product, or copy | ||||||
4 | from which the printed product is
produced shall not result | ||||||
5 | in the retailer being deemed to have or maintain an
office, | ||||||
6 | distribution house, sales house, warehouse, or other place | ||||||
7 | of business
within this State. | ||||||
8 | 1.1. Beginning July 1, 2011, a retailer having a | ||||||
9 | contract with a person located in this State under which | ||||||
10 | the person, for a commission or other consideration based | ||||||
11 | upon the sale of tangible personal property by the | ||||||
12 | retailer, directly or indirectly refers potential | ||||||
13 | customers to the retailer by a link on the person's | ||||||
14 | Internet website. The provisions of this paragraph 1.1 | ||||||
15 | shall apply only if the cumulative gross receipts from | ||||||
16 | sales of tangible personal property by the retailer to | ||||||
17 | customers who are referred to the retailer by all persons | ||||||
18 | in this State under such contracts exceed $10,000 during | ||||||
19 | the preceding 4 quarterly periods ending on the last day of | ||||||
20 | March, June, September, and December. | ||||||
21 | 1.2. Beginning July 1, 2011, a retailer having a | ||||||
22 | contract with a person located in this State under which: | ||||||
23 | A. the retailer sells the same or substantially | ||||||
24 | similar line of products as the person located in this | ||||||
25 | State and does so using an identical or substantially | ||||||
26 | similar name, trade name, or trademark as the person |
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1 | located in this State; and | ||||||
2 | B. the retailer provides a commission or other | ||||||
3 | consideration to the person located in this State based | ||||||
4 | upon the sale of tangible personal property by the | ||||||
5 | retailer. | ||||||
6 | The provisions of this paragraph 1.2 shall apply only if | ||||||
7 | the cumulative gross receipts from sales of tangible | ||||||
8 | personal property by the retailer to customers in this | ||||||
9 | State under all such contracts exceed $10,000 during the | ||||||
10 | preceding 4 quarterly periods ending on the last day of | ||||||
11 | March, June, September, and December.
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12 | 2. A retailer soliciting orders for tangible personal | ||||||
13 | property by
means of a telecommunication or television | ||||||
14 | shopping system (which utilizes toll
free numbers) which is | ||||||
15 | intended by the retailer to be broadcast by cable
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16 | television or other means of broadcasting, to consumers | ||||||
17 | located in this State.
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18 | 3. A retailer, pursuant to a contract with a | ||||||
19 | broadcaster or publisher
located in this State, soliciting | ||||||
20 | orders for tangible personal property by
means of | ||||||
21 | advertising which is disseminated primarily to consumers | ||||||
22 | located in
this State and only secondarily to bordering | ||||||
23 | jurisdictions.
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24 | 4. A retailer soliciting orders for tangible personal | ||||||
25 | property by mail
if the solicitations are substantial and | ||||||
26 | recurring and if the retailer benefits
from any banking, |
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1 | financing, debt collection, telecommunication, or | ||||||
2 | marketing
activities occurring in this State or benefits | ||||||
3 | from the location in this State
of authorized installation, | ||||||
4 | servicing, or repair facilities.
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5 | 5. A retailer that is owned or controlled by the same | ||||||
6 | interests that own
or control any retailer engaging in | ||||||
7 | business in the same or similar line of
business in this | ||||||
8 | State.
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9 | 6. A retailer having a franchisee or licensee operating | ||||||
10 | under its trade
name if the franchisee or licensee is | ||||||
11 | required to collect the tax under this
Section.
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12 | 7. A retailer, pursuant to a contract with a cable | ||||||
13 | television operator
located in this State, soliciting | ||||||
14 | orders for tangible personal property by
means of | ||||||
15 | advertising which is transmitted or distributed over a | ||||||
16 | cable
television system in this State.
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17 | 8. A retailer engaging in activities in Illinois, which | ||||||
18 | activities in
the state in which the retail business | ||||||
19 | engaging in such activities is located
would constitute | ||||||
20 | maintaining a place of business in that state.
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21 | "Bulk vending machine" means a vending machine,
containing | ||||||
22 | unsorted confections, nuts, toys, or other items designed
| ||||||
23 | primarily to be used or played with by children
which, when a | ||||||
24 | coin or coins of a denomination not larger than $0.50 are | ||||||
25 | inserted, are dispensed in equal portions, at random and
| ||||||
26 | without selection by the customer.
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1 | (Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11.)
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2 | Section 10. The Retailers' Occupation Tax Act is amended by | ||||||
3 | changing Section 1 as follows:
| ||||||
4 | (35 ILCS 120/1) (from Ch. 120, par. 440)
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5 | Sec. 1. Definitions. "Sale at retail" means any transfer of | ||||||
6 | the
ownership of or title to
tangible personal property to a | ||||||
7 | purchaser, for the purpose of use or
consumption, and not for | ||||||
8 | the purpose of resale in any form as tangible
personal property | ||||||
9 | to the extent not first subjected to a use for which it
was | ||||||
10 | purchased, for a valuable consideration: Provided that the | ||||||
11 | property
purchased is deemed to be purchased for the purpose of | ||||||
12 | resale, despite
first being used, to the extent to which it is | ||||||
13 | resold as an ingredient of
an intentionally produced product or | ||||||
14 | byproduct of manufacturing. For this
purpose, slag produced as | ||||||
15 | an incident to manufacturing pig iron or steel
and sold is | ||||||
16 | considered to be an intentionally produced byproduct of
| ||||||
17 | manufacturing. Transactions whereby the possession of the | ||||||
18 | property is
transferred but the seller retains the title as | ||||||
19 | security for payment of the
selling price shall be deemed to be | ||||||
20 | sales.
| ||||||
21 | "Sale at retail" shall be construed to include any transfer | ||||||
22 | of the
ownership of or title to tangible personal property to a | ||||||
23 | purchaser, for use
or consumption by any other person to whom | ||||||
24 | such purchaser may transfer the
tangible personal property |
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1 | without a valuable consideration, and to include
any transfer, | ||||||
2 | whether made for or without a valuable consideration, for
| ||||||
3 | resale in any form as tangible personal property unless made in | ||||||
4 | compliance
with Section 2c of this Act.
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5 | Sales of tangible personal property, which property, to the | ||||||
6 | extent not
first subjected to a use for which it was purchased, | ||||||
7 | as an ingredient or
constituent, goes into and forms a part of | ||||||
8 | tangible personal property
subsequently the subject of a "Sale | ||||||
9 | at retail", are not sales at retail as
defined in this Act: | ||||||
10 | Provided that the property purchased is deemed to be
purchased | ||||||
11 | for the purpose of resale, despite first being used, to the
| ||||||
12 | extent to which it is resold as an ingredient of an | ||||||
13 | intentionally produced
product or byproduct of manufacturing.
| ||||||
14 | "Sale at retail" shall be construed to include any Illinois | ||||||
15 | florist's
sales transaction in which the purchase order is | ||||||
16 | received in Illinois by a
florist and the sale is for use or | ||||||
17 | consumption, but the Illinois florist
has a florist in another | ||||||
18 | state deliver the property to the purchaser or the
purchaser's | ||||||
19 | donee in such other state.
| ||||||
20 | Nonreusable tangible personal property that is used by | ||||||
21 | persons engaged in
the business of operating a restaurant, | ||||||
22 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
23 | transferred to customers in the ordinary course of business
as | ||||||
24 | part of the sale of food or beverages and is used to deliver, | ||||||
25 | package, or
consume food or beverages, regardless of where | ||||||
26 | consumption of the food or
beverages occurs. Examples of those |
| |||||||
| |||||||
1 | items include, but are not limited to
nonreusable, paper and | ||||||
2 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
3 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
4 | and
wrapping or packaging
materials that are transferred to | ||||||
5 | customers as part of the sale of food or
beverages in the | ||||||
6 | ordinary course of business.
| ||||||
7 | The purchase, employment and transfer of such tangible | ||||||
8 | personal property
as newsprint and ink for the primary purpose | ||||||
9 | of conveying news (with or
without other information) is not a | ||||||
10 | purchase, use or sale of tangible
personal property.
| ||||||
11 | A person whose activities are organized and conducted | ||||||
12 | primarily as a
not-for-profit service enterprise, and who | ||||||
13 | engages in selling tangible
personal property at retail | ||||||
14 | (whether to the public or merely to members and
their guests) | ||||||
15 | is engaged in the business of selling tangible personal
| ||||||
16 | property at retail with respect to such transactions, excepting | ||||||
17 | only a
person organized and operated exclusively for | ||||||
18 | charitable, religious or
educational purposes either (1), to | ||||||
19 | the extent of sales by such person to
its members, students, | ||||||
20 | patients or inmates of tangible personal property to
be used | ||||||
21 | primarily for the purposes of such person, or (2), to the | ||||||
22 | extent of
sales by such person of tangible personal property | ||||||
23 | which is not sold or
offered for sale by persons organized for | ||||||
24 | profit. The selling of school
books and school supplies by | ||||||
25 | schools at retail to students is not
"primarily for the | ||||||
26 | purposes of" the school which does such selling. The
provisions |
| |||||||
| |||||||
1 | of this paragraph shall not apply to nor subject to taxation
| ||||||
2 | occasional dinners, socials or similar activities of a person | ||||||
3 | organized and
operated exclusively for charitable, religious | ||||||
4 | or educational purposes,
whether or not such activities are | ||||||
5 | open to the public. As used in this paragraph, "occasional" | ||||||
6 | means not more than 2 such activities in any calendar year, to | ||||||
7 | be chosen by the person organized and operated exclusively for | ||||||
8 | charitable, religious, or educational purposes. Any sales of | ||||||
9 | tangible personal property at retail at an activity that would | ||||||
10 | otherwise qualify as an exempt occasional dinner, social, or | ||||||
11 | similar activity are taxable if that activity exceeds the | ||||||
12 | 2-activity limit in a calendar year. Notwithstanding any other | ||||||
13 | provision of this paragraph to the contrary, on and after July | ||||||
14 | 1, 2012, sales of tangible personal property at retail at an | ||||||
15 | occasional dinner, social, or similar activity that falls | ||||||
16 | within the 2-activity limit and is held by a person organized | ||||||
17 | and operated exclusively for charitable, religious, or | ||||||
18 | educational purposes are exempt from taxation under this Act | ||||||
19 | only if 100% of the gross revenues generated from the activity, | ||||||
20 | after reasonable expenses, are paid to that person and used for | ||||||
21 | charitable, religious, or educational purposes. As used in this | ||||||
22 | paragraph, the phrase "gross revenues generated from the | ||||||
23 | activity" includes, but is not limited to, revenues from: | ||||||
24 | admission or ticket sales, sales of tangible personal property, | ||||||
25 | sponsorships, and broadcast rights. As used in this paragraph a | ||||||
26 | "dinner, social, or similar activity" includes, but is not |
| |||||||
| |||||||
1 | limited to, a dinner, ice cream social, fun fair, carnival, | ||||||
2 | rummage sale, bazaar, bake sale, charity auction or other | ||||||
3 | fundraising event, street fair, indoor or outdoor concert or | ||||||
4 | performance, and the like. If an occasional dinner, social, or | ||||||
5 | similar activity otherwise meets the requirements of this | ||||||
6 | paragraph, then the exemption for sales of tangible personal | ||||||
7 | property at retail at that activity applies whether or not the | ||||||
8 | items that are sold are purchased or donated for the purpose of | ||||||
9 | the sale, and whether or not the activity is open to the | ||||||
10 | public. If an occasional dinner, social, or similar activity | ||||||
11 | otherwise meets the requirements of this paragraph, then the | ||||||
12 | exemption for sales of tangible personal property at retail at | ||||||
13 | that activity applies whether or not items sold at the | ||||||
14 | occasional dinner, social, or similar activity are also sold or | ||||||
15 | offered for sale by persons organized for profit. The | ||||||
16 | Department by rule shall determine what constitutes reasonable | ||||||
17 | expenses under this paragraph.
| ||||||
18 | A person who is the recipient of a grant or contract under | ||||||
19 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
20 | serves meals to
participants in the federal Nutrition Program | ||||||
21 | for the Elderly in return for
contributions established in | ||||||
22 | amount by the individual participant pursuant
to a schedule of | ||||||
23 | suggested fees as provided for in the federal Act is not
| ||||||
24 | engaged in the business of selling tangible personal property | ||||||
25 | at retail
with respect to such transactions.
| ||||||
26 | "Purchaser" means anyone who, through a sale at retail, |
| |||||||
| |||||||
1 | acquires the
ownership of or title to tangible personal | ||||||
2 | property for a valuable
consideration.
| ||||||
3 | "Reseller of motor fuel" means any person engaged in the | ||||||
4 | business of selling
or delivering or transferring title of | ||||||
5 | motor fuel to another person
other than for use or consumption.
| ||||||
6 | No person shall act as a reseller of motor fuel within this | ||||||
7 | State without
first being registered as a reseller pursuant to | ||||||
8 | Section 2c or a retailer
pursuant to Section 2a.
| ||||||
9 | "Selling price" or the "amount of sale" means the | ||||||
10 | consideration for a
sale valued in money whether received in | ||||||
11 | money or otherwise, including
cash, credits, property, other | ||||||
12 | than as hereinafter provided, and services,
but not including | ||||||
13 | the value of or credit given for traded-in tangible
personal | ||||||
14 | property where the item that is traded-in is of like kind and
| ||||||
15 | character as that which is being sold, and shall be determined | ||||||
16 | without any
deduction on account of the cost of the property | ||||||
17 | sold, the cost of
materials used, labor or service cost or any | ||||||
18 | other expense whatsoever, but
does not include charges that are | ||||||
19 | added to prices by sellers on account of
the seller's tax | ||||||
20 | liability under this Act, or on account of the seller's
duty to | ||||||
21 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
22 | Tax
Act, or, except as otherwise provided with respect to any | ||||||
23 | cigarette tax imposed by a home rule unit, on account of the | ||||||
24 | seller's tax liability under any local occupation tax | ||||||
25 | administered by the Department, or, except as otherwise | ||||||
26 | provided with respect to any cigarette tax imposed by a home |
| |||||||
| |||||||
1 | rule unit on account of the seller's duty to collect, from the | ||||||
2 | purchasers, the tax that is imposed under any local use tax | ||||||
3 | administered by the Department.
Effective December 1, 1985, | ||||||
4 | "selling price" shall include charges that
are added to prices | ||||||
5 | by sellers on account of the seller's
tax liability under the | ||||||
6 | Cigarette Tax Act, on account of the sellers'
duty to collect, | ||||||
7 | from the purchaser, the tax imposed under the Cigarette
Use Tax | ||||||
8 | Act, and on account of the seller's duty to collect, from the
| ||||||
9 | purchaser, any cigarette tax imposed by a home rule unit.
| ||||||
10 | The phrase "like kind and character" shall be liberally | ||||||
11 | construed
(including but not limited to any form of motor | ||||||
12 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
13 | agricultural implement for any other
kind of farm or | ||||||
14 | agricultural implement), while not including a kind of item
| ||||||
15 | which, if sold at retail by that retailer, would be exempt from | ||||||
16 | retailers'
occupation tax and use tax as an isolated or | ||||||
17 | occasional sale.
| ||||||
18 | "Gross receipts" from the sales of tangible personal | ||||||
19 | property at retail
means the total selling price or the amount | ||||||
20 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
21 | and time sales, the amount thereof shall be
included only as | ||||||
22 | and when payments are received by the seller.
Receipts or other | ||||||
23 | consideration derived by a seller from
the sale, transfer or | ||||||
24 | assignment of accounts receivable to a wholly owned
subsidiary | ||||||
25 | will not be deemed payments prior to the time the purchaser
| ||||||
26 | makes payment on such accounts.
|
| |||||||
| |||||||
1 | "Department" means the Department of Revenue.
| ||||||
2 | "Person" means any natural individual, firm, partnership, | ||||||
3 | association,
joint stock company, joint adventure, public or | ||||||
4 | private corporation, limited
liability company, or a receiver, | ||||||
5 | executor, trustee, guardian or other
representative appointed | ||||||
6 | by order of any court.
| ||||||
7 | The isolated or occasional sale of tangible personal | ||||||
8 | property at retail
by a person who does not hold himself out as | ||||||
9 | being engaged (or who does not
habitually engage) in selling | ||||||
10 | such tangible personal property at retail, or
a sale through a | ||||||
11 | bulk vending machine, does not constitute engaging in a
| ||||||
12 | business of selling such tangible personal property at retail | ||||||
13 | within the
meaning of this Act; provided that any person who is | ||||||
14 | engaged in a business
which is not subject to the tax imposed | ||||||
15 | by this Act because of involving
the sale of or a contract to | ||||||
16 | sell real estate or a construction contract to
improve real | ||||||
17 | estate or a construction contract to engineer, install, and
| ||||||
18 | maintain an integrated system of products, but who, in the | ||||||
19 | course of
conducting such business,
transfers tangible | ||||||
20 | personal property to users or consumers in the finished
form in | ||||||
21 | which it was purchased, and which does not become real estate | ||||||
22 | or was
not engineered and installed, under any provision of a | ||||||
23 | construction contract or
real estate sale or real estate sales | ||||||
24 | agreement entered into with some other
person arising out of or | ||||||
25 | because of such nontaxable business, is engaged in the
business | ||||||
26 | of selling tangible personal property at retail to the extent |
| |||||||
| |||||||
1 | of the
value of the tangible personal property so transferred. | ||||||
2 | If, in such a
transaction, a separate charge is made for the | ||||||
3 | tangible personal property so
transferred, the value of such | ||||||
4 | property, for the purpose of this Act, shall be
the amount so | ||||||
5 | separately charged, but not less than the cost of such property
| ||||||
6 | to the transferor; if no separate charge is made, the value of | ||||||
7 | such property,
for the purposes of this Act, is the cost to the | ||||||
8 | transferor of such tangible
personal property. Construction | ||||||
9 | contracts for the improvement of real estate
consisting of | ||||||
10 | engineering, installation, and maintenance of voice, data, | ||||||
11 | video,
security, and all telecommunication systems do not | ||||||
12 | constitute engaging in a
business of selling tangible personal | ||||||
13 | property at retail within the meaning of
this Act if they are | ||||||
14 | sold at one specified contract price.
| ||||||
15 | A person who holds himself or herself out as being engaged | ||||||
16 | (or who habitually
engages) in selling tangible personal | ||||||
17 | property at retail is a person
engaged in the business of | ||||||
18 | selling tangible personal property at retail
hereunder with | ||||||
19 | respect to such sales (and not primarily in a service
| ||||||
20 | occupation) notwithstanding the fact that such person designs | ||||||
21 | and produces
such tangible personal property on special order | ||||||
22 | for the purchaser and in
such a way as to render the property | ||||||
23 | of value only to such purchaser, if
such tangible personal | ||||||
24 | property so produced on special order serves
substantially the | ||||||
25 | same function as stock or standard items of tangible
personal | ||||||
26 | property that are sold at retail.
|
| |||||||
| |||||||
1 | Persons who engage in the business of transferring tangible | ||||||
2 | personal
property upon the redemption of trading stamps are | ||||||
3 | engaged in the business
of selling such property at retail and | ||||||
4 | shall be liable for and shall pay
the tax imposed by this Act | ||||||
5 | on the basis of the retail value of the
property transferred | ||||||
6 | upon redemption of such stamps.
| ||||||
7 | "Bulk vending machine" means a vending machine,
containing | ||||||
8 | unsorted confections, nuts, toys, or other items designed
| ||||||
9 | primarily to be used or played with by children
which, when a | ||||||
10 | coin or coins of a denomination not larger than $0.50 are
| ||||||
11 | inserted, are dispensed in equal portions, at random and
| ||||||
12 | without selection by the customer.
| ||||||
13 | (Source: P.A. 95-723, eff. 6-23-08.)
| ||||||
14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.".
|