Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart G - CERTIFICATE OF REGISTRATION › Section 130.701 - General Information on Obtaining a Certificate of Registration

Current through Register Vol. 48, No. 28, July 12, 2024
a) It shall be
				unlawful for any person to engage in the business of selling tangible personal
				property at retail in this State without a certificate of registration from the
				Department.
b) Every person who
				engages in the business of selling tangible personal property at retail in this
				State must procure a certificate of registration (and sub-certificate of
				registration when required) from the Department.
c) For information with respect to penalties
				for violating this requirement, see Subpart I.
d) The application to register must be made
				on a form prescribed and furnished by the Department for that purpose. Upon
				request therefor, made to the Department of Revenue, an application form will
				be furnished. Each application shall be signed and verified. The application
				shall contain an acceptance of responsibility by the person or persons who will
				be responsible for filing returns and payment of the taxes due under the Act.
If the applicant will sell tangible personal property at retail through
				vending machines, his application to register shall indicate the number of
				vending machines to be so operated.
[35 ILCS
				120/2a ] Applications to register may be submitted
				electronically on the Department's website at
www.tax.illinois.gov
.
e) Special Requirements Pertaining to Vending
				Machines
If the applicant will sell tangible personal property
				  at retail through vending machines, the Department shall furnish the applicant
				  with a sub-certificate of registration for each such vending machine, and the
				  applicant shall display the appropriate sub-certificate of registration on each
				  such vending machine by attaching the sub-certificate of registration to a
				  conspicuous part of such vending machine. If a person who is registered to sell
				  tangible personal property at retail through vending machines adds an
				  additional vending machine or additional vending machines to the number of
				  vending machines the applicant uses in the applicant's business of selling
				  tangible personal property at retail, the applicant shall notify the
				  Department, on a form prescribed by the Department, to request an additional
				  sub-certificate or additional sub-certificates of registration, as applicable.
				  With each such request, the applicant shall report the number of
				  sub-certificates of registration the applicant is requesting as well as the
				  total number of vending machines from which the applicant makes retail
				  sales.
[35 ILCS 120/2a
				  ]
f) Posting Bond or Other
				Security
1) Every applicant for a certificate
				of registration shall, within 30 days after the applicant commences to engage
				in the business of selling tangible personal property at retail, furnish a bond
				from a surety company authorized to do business in the State of Illinois, or a
				bond signed by 2 personal sureties who have filed, with the Department, sworn
				statements disclosing net assets equal to at least 3 times the amount of the
				bond to be required of the applicant, or a bond secured by an assignment of a
				bank account or certificate of deposit, stocks or bonds, conditioned upon the
				applicant paying to the State of Illinois all moneys becoming due under the
				Retailers' Occupation Tax Act and under any other State tax law or municipal or
				county tax ordinance or resolution under which the certificate of registration
				that is issued to the applicant under the Retailers' Occupation Tax Act will
				permit the applicant to engage in business without registering separately under
				such other law, ordinance or resolution.
2) Maximum Amount of Bond or Other Security
A) The Department shall fix the amount of
				such security in each case, taking into consideration the amount of money
				expected to become due from the applicant under the Retailers' Occupation Tax
				Act and under any other State tax law or municipal or county tax ordinance or
				resolution under which the certificate of registration that is issued to the
				applicant under the Retailers' Occupation Tax Act will permit the applicant to
				engage in business without registering separately under such other law,
				ordinance or resolution. The security required by the Department shall be of an
				amount that, in its opinion, will protect the State of Illinois against failure
				to pay the amount which may become due from the applicant under the Retailers'
				Occupation Tax Act and under any other State tax law or municipal or county tax
				ordinance or resolution under which the certificate of registration that is
				issued to the applicant under the Retailers' Occupation Tax Act will permit the
				applicant to engage in business without registering separately under such other
				law, ordinance or resolution, but the amount of the security required by the
				Department shall not exceed three times the amount of the applicant's average
				monthly tax liability, or $50,000, whichever amount is lower.
B) No certificate of registration under the
				Retailers' Occupation Tax Act shall be issued by the Department until the
				applicant provides the Department with satisfactory security as provided for in
				this subsection (f).
3)
				Exception from Security Requirements for Prior Continuous Compliance Taxpayers
Any taxpayer who has, as verified by the Department,
				  faithfully and continuously complied with the condition of the taxpayer's bond
				  or other security under the provisions of the Act for a period of 3 consecutive
				  years shall be considered to be a Prior Continuous Compliance taxpayer. Every
				  Prior Continuous Compliance taxpayer shall be exempt from all requirements
				  under the Act concerning the furnishing of security as a condition precedent to
				  the taxpayer being authorized to engage in the business of selling tangible
				  personal property at retail in this State. This exemption shall continue for
				  each taxpayer until the taxpayer may be determined by the Department to be
				  delinquent in the filing of any returns, or is determined by the Department
				  (either through the Department's issuance of a final assessment that has become
				  final under the Act, or by the taxpayer's filing of a return that admits tax
				  that is not paid to be due) to be delinquent or deficient in the paying of any
				  tax under the Retailers' Occupation Tax Act or under any other State tax law or
				  municipal or county tax ordinance or resolution under which the certificate of
				  registration that is issued to the registrant under the Retailers' Occupation
				  Tax Act will permit the registrant to engage in business without registering
				  separately under such other law, ordinance or resolution, at which time that
				  taxpayer shall become subject to all the financial responsibility requirements
				  of the Act and, as a condition of being allowed to continue to engage in the
				  business of selling tangible personal property at retail, shall be required to
				  post bond or other acceptable security with the Department covering liability
				  that the taxpayer may thereafter incur. Any taxpayer who fails to pay an
				  admitted or established liability under the Act may also be required to post
				  bond or other acceptable security with this Department guaranteeing the payment
				  of the admitted or established liability.