Bill Text: IL HB5448 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Use Tax Act. Provides that retailers that have more than $100,000 in gross sales to Illinois purchasers in the previous year and do not collect the tax under the Act must do the following: (1) provide a notice to each Illinois purchaser that the tax under the Act is due on purchases that are not tax exempt and that the State requires the Illinois purchaser to file a return under the Act; (2) provide a notice to each Illinois purchaser who purchases more than $500 worth of goods in a year containing specific information about purchases that may result in Illinois use tax liability; and (3) file an annual report with the Department of Revenue showing the total amount paid for purchases by those Illinois purchasers during the preceding calendar year. Requires retailers to include transactional notices at checkout. Sets forth penalties for failure to submit those notices and reports. Provides that the term "Illinois purchaser" means a purchaser (i) with a billing address in this State or (ii) who makes a purchase for delivery to an address in this State. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5448 Detail]

Download: Illinois-2017-HB5448-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB5448 Introduced , by Rep. Robert W. Pritchard SYNOPSIS AS INTRODUCED:
35 ILCS 105/8a new
Amends the Use Tax Act. Provides that retailers that have more than $100,000 in gross sales to Illinois purchasers in the previous year and do not collect the tax under the Act must do the following: (1) provide a notice to each Illinois purchaser that the tax under the Act is due on purchases that are not tax exempt and that the State requires the Illinois purchaser to file a return under the Act; (2) provide a notice to each Illinois purchaser who purchases more than $500 worth of goods in a year containing specific information about purchases that may result in Illinois use tax liability; and (3) file an annual report with the Department of Revenue showing the total amount paid for purchases by those Illinois purchasers during the preceding calendar year. Requires retailers to include transactional notices at checkout. Sets forth penalties for failure to submit those notices and reports. Provides that the term "Illinois purchaser" means a purchaser (i) with a billing address in this State or (ii) who makes a purchase for delivery to an address in this State. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use Tax Act is amended by adding Section 8a
as follows:
(35 ILCS 105/8a new)
Sec. 8a. Retailer notifications.
(a) Each retailer that sells to Illinois purchasers but
does not collect and remit use tax under this Act shall notify
each Illinois purchaser at the time of sale that the tax under
this Act is due on all purchases that are not exempt and that
the State requires the Illinois purchaser to file a return
under this Act. Failure to provide the notice required in this
subsection shall subject the retailer to a penalty of $5 for
each such failure unless the retailer shows reasonable cause
for the failure.
(a-1) For all purchases made online, a transactional notice
shall be prominently located in close proximity to the "Tax" or
"Sales Tax" line at checkout, or if no "Tax" line is available,
in close proximity to the "Total Price" line shown at checkout.
If it is impracticable for the retailer subject to the
provisions of this Section to display the transactional notice
as described above, the retailer shall prominently display a

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hyperlink. The hyperlink shall read "See here for information
about the State tax you may owe" or use similar language. The
hyperlink shall direct the Illinois purchaser to the
transactional notice. The hyperlink shall appear in close
proximity to the "Tax" or "Total Price" line shown at checkout,
on the invoice or order confirmation, or on the webpage for the
product purchased.
(b) Each retailer that has more than $100,000 in gross
sales to Illinois purchasers in the previous year and does not
collect the tax under this Act shall, by January 31 of each
year, send notification to all Illinois purchasers who purchase
more than $500 worth of goods in a year showing the following:
(1) the total amount paid by the purchaser for
purchases made from the retailer in the previous calendar
year;
(2) the dates of each purchase;
(3) the amounts of each purchase;
(4) whether or not the purchase is exempt from taxation
under this Act; and
(5) such information as the Department shall require by
rule.
The notification shall state that the State of Illinois
requires a use tax return to be filed and use tax to be paid on
certain purchases made by the purchaser from the retailer.
The notification specified in this subsection shall be sent
separately to all Illinois purchasers by first-class mail and

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shall not be included with any other shipments, unless the
retailer subject to the provisions of this Section, as
determined by a rule adopted by the Department, is allowed to
deliver the notification by electronic means. The notification
shall include the words "Important Tax Document Enclosed" on
the exterior of the mailing, unless the retailer subject to the
provisions of this Section, as determined by a rule adopted by
the Department, is allowed to deliver the notification by
electronic means. The notification shall include the name of
the retailer.
Failure to send the notification required in this
subsection shall subject the retailer to a penalty of $10 for
each such failure unless the retailer shows reasonable cause
for the failure.
(c) Each retailer mentioned in subsection (b) that does not
collect the tax under this Act shall file with the Department,
in the form and manner required by the Department, an annual
statement for all Illinois purchasers who purchase more than
$500 worth of goods in year showing the total amount paid for
purchases by Illinois purchasers during the preceding calendar
year or any portion thereof. That annual statement shall be
filed on or before March 1 of each year. Failure to file the
annual statement required under this subsection shall subject
the retailer to a penalty of $10 for each purchaser that should
have been included in the annual statement unless the retailer
shows reasonable cause for the failure.

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(d) As used in this Section:
"Illinois purchaser" means a purchaser with a billing
address in this State.
"Transactional notice" means the notice required to be
provided by a retailer subject to the provisions of this
Section to an Illinois purchaser at the time of purchase
notifying the Illinois purchaser of the information required
pursuant to this Section.
Section 99. Effective date. This Act takes effect upon
becoming law.