reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart G - REGISTRATION OF OUT-OF-STATE RETAILERS › Section 150.801 - When Out-of-State Retailers Must Register and Collect Use Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) A retailer who
				is registered under the Retailers' Occupation Tax Act need not obtain a
				separate Certificate of Registration under the Use Tax Act. However, a retailer
				maintaining a place of business in this State, if not registered under the
				Retailers' Occupation Tax Act, must apply to the Department for a Certificate
				of Registration to collect use tax on an application form furnished by the
				Department. Each such retailer shall list with the Department the names and
				addresses of all the retailer's agents operating in this State and the location
				of any and all of the retailer's distribution houses, offices, or other places
				of business in this State.
b) For a
				definition of "retailer maintaining a place of business in this State", see
				Section 150.201 of this Part.
c)
				Every retailer maintaining a place of business in this State must act as a use
				tax collector for this State. Examples of cases in which a retailer will be
				required to collect and remit use tax though not incurring any retailers'
				occupation tax liability with respect to the transaction are as follows:
1) Retailers who have Illinois retail outlets
				subject to the Retailers' Occupation Tax Act are required to collect and remit
				use tax; as such, when the retailer ships tangible personal property to a
				purchaser in Illinois from inventory located outside Illinois via interstate
				mail that has no connection with the Illinois retail outlets, the retailer must
				still collect and remit use tax even though such completely interstate mail
				transactions are not subject to retailers' occupation tax.
2) Out-of-State retailers, who have any kind
				of place of business in Illinois or any kind of order-soliciting or
				order-taking representative either stationed in Illinois or coming into
				Illinois from time to time, must collect and remit use tax from Illinois
				purchasers for use even though the seller is not required to pay retailers'
				occupation tax when the seller does nothing in Illinois except to solicit
				orders.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart G - REGISTRATION OF OUT-OF-STATE RETAILERS › Section 150.802 - Trade Show Appearances

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as
				provided in subsection (c), the presence of an out-of-State retailer or its
				representative in Illinois to engage in trade show activities brings that
				retailer within the definition found in Section 2 of the Use Tax Act of a
				"retailer maintaining a place of business in this State". As a result, the
				retailer is required to register with the Department and collect and remit Use
				Tax on all sales to Illinois purchasers.
b) Beginning January 1, 2021, remote
				retailers that meet a tax remittance threshold set out in 86 Ill. Adm. Code
				131.115 and that qualify under
				the safe harbor provisions established in subsection (c) do not have physical
				presence. As a result, such a remote retailer is required to register with the
				Department and remit all applicable State and local retailers' occupation taxes
				on all sales to Illinois purchasers.
c) Safe Harbor - Requirements. The presence
				in Illinois of a remote retailer for purposes of engaging in trade show
				activities will not result in the determination that the retailer has physical
				presence if the retailer meets each of the following 3 conditions:
1) The retailer attends no more than 2
				Illinois trade shows during the preceding 12-month period.
2) The retailer is physically present at
				those 2 Illinois trade shows for an aggregate total of no more than 8 days
				during the preceding 12-month period. For purposes of calculating the 8 days,
				the Department will apply the following criteria:
A) Days during which a retailer is present in
				Illinois but is not engaged in activity related to the trade show will not
				count toward the 8-day limit. For example, a retailer arrives in Illinois on
				the day before a trade show begins and stays in a hotel the night before the
				trade show. The day before the trade show begins will not count as one of the 8
				days. Similarly, if a retailer stays in Illinois as a tourist for 3 days after
				the trade show, those 3 days will not count toward the 8 days.
B) It does not matter whether the retailer
				has one representative at the Illinois trade show or more than one
				representative at the Illinois trade show. In both situations, each day of the
				trade show only counts as one of the 8 days.
C) Any portion of a day that a retailer is
				physically present at an Illinois trade show counts as a whole day. For
				example, if the only representative at the trade show leaves the trade show
				after one hour, that hour counts as a whole day.
D) Days spent setting up displays prior to a
				trade show and days spent tearing down displays after a trade show do not count
				toward the 8 days.
3)
				Combined gross receipts from sales made subject to Retailers' Occupation Tax at
				all Illinois trade shows during the preceding 12-month period do not exceed
				$10,000 (see subsection (f)).
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart G - REGISTRATION OF OUT-OF-STATE RETAILERS › Section 150.805 - Voluntary Registration by Certain Out-of-State Retailers

Current through Register Vol. 48, No. 28, July 12, 2024
The Department may, in its discretion, upon application,
				  authorize the collection of the Use Tax by any retailer not maintaining a place
				  of business within this State within the meaning of the Use Tax Act and Subpart
				  B of this Part. Such retailer shall be issued, without charge, a permit to
				  collect such tax. When so authorized, it shall be the duty of such retailer to
				  collect the tax upon all tangible personal property sold to his knowledge for
				  use within this State, in the same manner and subject to the same requirements,
				  as a retailer maintaining a place of business within this
				  State.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart G - REGISTRATION OF OUT-OF-STATE RETAILERS › Section 150.810 - Incorporation by Reference

Current through Register Vol. 48, No. 28, July 12, 2024
In general, the provisions of Subpart G of the Retailers'
				  Occupation Tax Regulations (86 Ill. Adm. Code 130) shall apply to all
				  registrations under the Use Tax Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart H - RETAILERS' RETURNS › Section 150.905 - Deduction for Collecting Tax

Current through Register Vol. 48, No. 28, July 12, 2024
The retailer, in remitting the use tax collected from the
				  purchaser, may deduct
				  1.75 % thereof or $5.00 per
				  calendar year, whichever is greater, as an allowance for the retailer's cost
incurred in collecting the tax, keeping records, preparing and filing
				  returns, remitting the tax and supplying data to the Department on request. In
				  the case of retailers who report and pay the tax on a
				  transaction-by-transaction basis, as provided in
Section 9 of the Act,
such discount shall be taken with each such tax remittance instead of
				  when such retailer files
such
periodic return. The discount
				  allowed under
this Section
is allowed only for returns that
				  are filed in the manner required by
the Act. [35 ILCS
				  105/9 ] This allowance is available when the tax is
				  remitted with a return that is filed when due under the Act, but is not
				  available in any case in which the tax is paid late (with or without a return,
				  and whether formally assessed by the Department or not).
The Department
				  may disallow the discount for retailers whose certificate of registration is
				  revoked at the time the return is filed, but only if the Department's decision
				  to revoke the certificate of registration has become final.
[35 ILCS
				  105/9 ] Also, this discount for collecting the tax is
				  not allowable when the use tax is remitted directly to the Department by a
				  user.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart H - RETAILERS' RETURNS › Section 150.910 - Incorporation by Reference

Current through Register Vol. 48, No. 28, July 12, 2024
In general, the provisions of Subpart E of the Retailers'
				  Occupation Tax Regulations (86 Ill. Adm. Code 130) shall apply to returns under
				  the Use Tax Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart H - RETAILERS' RETURNS › Section 150.915 - Itemization of Receipts from Sales and the Tax Among the Different States from Which Sales are Made into Illinois

Current through Register Vol. 48, No. 28, July 12, 2024
In reporting receipts from sales that are subject to Use Tax
				  but not to Retailers' Occupation Tax on the return form, if the seller filing
				  the return makes such sales into Illinois from more than one state other than
				  Illinois, such seller must file a supplemental schedule, which the Department
				  will furnish, showing an itemization of such receipts and the tax for each
				  state from which such seller makes such sales that result in tangible personal
				  property being delivered or shipped into Illinois.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart I - PENALTIES, INTEREST, STATUTE OF LIMITATIONS AND ADMINISTRATIVE PROCEDURES › Section 150.1001 - General Information

Current through Register Vol. 48, No. 28, July 12, 2024
All civil penalties, provisions concerning interest and
				  procedures (such as the making of assessments, the venue and mode of conducting
				  hearings, subpoenas, matters pertaining to judicial review and other procedural
				  subjects), together with statutes of limitation (except that these apply from
				  the date when the tax is due rather than from the date when the gross receipts
				  are received and except that, in the case of a failure to file a return
				  required by the Act, no notice of tax liability shall be issued on and after
				  July 1 and January 1 covering tax due with that return during any month or
				  period more than 6 years before that July 1 or January 1, respectively), are
				  the same under the Use Tax Act as under the Illinois Retailers' Occupation Tax
				  Act. For information concerning civil penalties and interest see the Uniform
				  Penalty and Interest Act [35 ILCS 735/3 ] and 86 Ill. Adm. Code 700. For
				  information concerning criminal penalties, see Section 14 of the Use Tax
				  Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart K - INCORPORATION OF ILLINOIS RETAILERS' OCCUPATION TAX REGULATIONS BY REFERENCE › Section 150.1201 - General Information

Current through Register Vol. 48, No. 28, July 12, 2024
To avoid needless repetition, the substance and provisions of
				  all Retailers' Occupation Tax Regulations, (86 Ill. Adm. Code 130), (whether
				  characterized as Rules, Articles or by some other designation), which are now
				  in effect or which may hereafter be amended or promulgated, and which are not
				  incompatible with the Use Tax Act or any special Regulations that may be
				  promulgated by the Department thereunder, are incorporated herein by reference
				  and made a part hereof.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart L - BOOKS AND RECORDS › Section 150.1301 - Users' Records

Current through Register Vol. 48, No. 28, July 12, 2024
a) When a user
				claims that he has paid the Use Tax to his vendor, he will have sufficient
				records to sustain this contention in case of an examination of his records by
				the Department if the vendor is registered with the Department as a retailer
				under the Retailers' Occupation Tax Act or the Use Tax Act, and if such user
				has either a receipt for the Use Tax from the vendor or an invoice from the
				vendor billing the Use Tax separately from the selling price of the tangible
				personal property supplemented with proof in the user's records that he has
				paid such invoice including the Use Tax.
b) If the user is obligated to pay the Use
				Tax directly to the Department, he must have adequate records to show that he
				has fulfilled this obligation and to support his claim (if any) that certain
				purchases for use are not subject to the Use Tax.
c) For example, if the user claims that he
				has paid a tax in another state with respect to the sale, purchase or use of
				the same tangible personal property, the user must have, among his records, a
				receipt for such tax from an authorized collector of the tax or other proof
				that the user has paid a billing for such tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart L - BOOKS AND RECORDS › Section 150.1315 - Consequence of Not Complying with Requirement of Collecting Use Tax Separately From the Selling Price

Current through Register Vol. 48, No. 28, July 12, 2024
An important consequence of not complying with the
				  requirement of stating the Use Tax separately from the selling price of the
				  property in a manner authorized by this Regulation is the retailer's loss of
				  the benefit of the deduction for a tax-collected item on his tax return
				  form.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart L - BOOKS AND RECORDS › Section 150.1320 - Incorporation by Reference

Current through Register Vol. 48, No. 28, July 12, 2024
In general, the provisions of various Retailers' Occupation
				  Tax Regulations relative to books and records, such as Subpart H (dealing with
				  books and records generally), Section
				  130.605
				  (concerning proof of out-of-State deliveries), Subpart N (concerning
				  certificates of resale), etc., shall apply to the subject of books and records
				  under the Use Tax Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart M - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 150.1401 - Claims for Credit - Limitations - Procedure

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Purchasers May File Claims
If it shall appear that an amount of tax or penalty
				  or interest has been paid in error under
the Act
to the
				  Department by a purchaser, as distinguished from the retailer, whether such
				  amount be paid through a mistake of fact or an error of law, such purchaser may
				  file a claim for credit or refund with the Department in accordance with
				  Sections 6, 6a, 6b, 6c, and 6d of the Retailers' Occupation Tax Act.
[35 ILCS
				  105/19 ]
b) When Retailers May File Claims - Unjust
				Enrichment Prohibited
1)
If it shall
				appear that an amount of tax or penalty or interest has been paid in error to
				the Department under
the Act
by a retailer who is required or
				authorized to collect and remit the use tax, whether such amount be paid
				through a mistake of fact or error of law, such retailer may file a claim for
				credit or refund with the Department in accordance with Sections 6, 6a, 6b, 6c,
				and 6d of the Retailers' Occupation Tax Act, provided that no credit or refund
				shall be allowed for any amount paid by any such retailer unless it shall
				appear that
the retailer
bore the burden of such amount and
				did not shift the burden
of the amount
to anyone else (as in
				the case of a duplicated tax payment which the retailer made to the Department
				and did not collect from anyone else), or unless it shall appear that
the retailer
or
the retailer's
legal representative
				has unconditionally repaid such amount to
the retailer's
vendee:
A)
who bore
				the burden and has not shifted such burden directly or indirectly in any manner
				whatsoever
;
B)
who, if
the retailer
has shifted such burden, has
				repaid unconditionally such amount to
the retailer's
vendee
;
and
C)
who is not entitled to receive any
				reimbursement from any other source than from
the retailer's
vendor, nor to be relieved of such burden in any other manner
				whatsoever.
[35 ILCS 105/19 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart M - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 150.1405 - Disposition of Credit Memoranda by Holders Thereof

Current through Register Vol. 48, No. 28, July 12, 2024
a) Assignment of Credit Memoranda
1) Credit memoranda issued under the Use Tax
				Act ("Act") may be assigned or transferred only after a request for that
				purpose is filed with the Department upon forms prescribed and furnished by it,
				and subject to the following conditions:
A)
				that the assignment is made to a person who is subject to the Act or to the
				Retailers' Occupation Tax Act, the Service Occupation Tax Act, or the Service
				Use Tax Act;
B) that there is no
				proceeding pending to establish an unpaid liability against the assignor
				pursuant to notice given of the Department's proposal to assess an amount
				against the assignor either under the Act, the Retailers' Occupation Tax Act,
				the Service Occupation Tax Act, the Service Use Tax Act, or any local
				retailers' occupation tax or service occupation tax administered by the
				Department; and
C) that there is no
				established assessment or admitted tax liability or interest or penalty unpaid
				by the assignor, either under the Act, the Retailers' Occupation Tax Act, the
				Service Occupation Tax Act, the Service Use Tax Act, or any local retailers'
				occupation tax or service occupation tax administered by the Department:
				Provided, that if the amount of the credit memorandum must first be applied, in
				whole or in part, against an established unpaid assessment which has been
				issued to the claimant-assignor, or in total or partial liquidation of an
				unpaid admitted tax liability, or unpaid penalty, or unpaid interest, of the
				claimant-assignor, notice to this effect shall be given the claimant-assignor
				by the Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart M - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 150.1410 - Refunds

Current through Register Vol. 48, No. 28, July 12, 2024
In case the Department determines that the claimant is
				  entitled to a refund, such refund shall be made only from such appropriation as
				  may be available for that purpose. If it appears unlikely that the amount
				  appropriated would permit everyone having a claim allowed during the period
				  covered by such appropriation to elect to receive a cash refund, the Department
				  will make such refunds only in hardship cases (i.e., in cases in which the
				  claimant cannot use a credit memorandum). An example of such a hardship case
				  would be one in which a user pays Use Tax to the Department, under
				  circumstances in which the tax is not due, on a motor vehicle purchased outside
				  Illinois. Since this is a nonrecurring liability, the claimant would not be
				  able to use a credit memorandum and would probably have to sell it at a loss.
				  Two other instances of hardship with respect to the claimant's receipt of a
				  credit memorandum under the Use Tax Act are the situation in which the claimant
				  has discontinued business and the situation in which the claimant will have a
				  small volume of liability to the Department in the foreseeable future, but
				  receives a large credit memorandum which it therefore might take the claimant a
				  long time to liquidate by using it to pay current taxes. In these instances,
				  the claimant probably would have to sell the credit memorandum at a loss in
				  order to realize anything from it within any reasonable period of
				  time.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart M - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 150.1415 - Interest

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any credit or
				refund that is allowed under the Act shall bear interest at the rate of 1% per
				month or fraction thereof from the date when the erroneous payment for which
				the credit or refund is being allowed was made to the Department until the
				credit memorandum is issued or the refund is paid, until January 1, 1994.
				Interest shall not be paid on claims filed after the effective date of the
				Uniform Penalty and Interest Act and 86 Ill. Adm. Code 700 except such interest
				which is paid in accordance with Section 3-2 of the Act. (Section 3-9 of the
				Uniform Penalty and Interest Act [35 ILCS
				735/3-9 ])
EXAMPLE: A taxpayer files a claim for credit with the
				  Department on January 15, 1994 for an overpayment of Use Tax. The overpayment
				  occurred in October 1992 when the taxpayer self-assessed tax on a purchase of
				  manufacturing machinery and equipment from an unregistered out-of-state
				  retailer and then remitted the tax directly to the Department. The credit
				  memorandum is issued on June 15, 1994. Interest shall be paid at the rate of 1%
				  per month for the period from October 1992 through December 31, 1993; and at
				  the semiannually adjusted interest rate imposed pursuant to the Act and these
				  rules from January 1, 1994 through June 15, 1994, the date on which the credit
				  memorandum was issued by the Department.
b) No interest will be allowed if the
				overpayment is found by the Department to have been made deliberately for the
				purpose of drawing interest, or if the overpayment is ascertained not to have
				been bona fide for some other reason.
c) When a claim that is allowed is paid by
				means of a credit memorandum, the claim will be considered to have been paid
				when the credit memorandum is issued by the Department to the claimant, and no
				interest will be allowed or paid by the Department for any period subsequent to
				that, even if the claimant does not use or assign the credit memorandum
				immediately after it is issued.
Illinois Administrative Code › Title 86 - REVENUE › Part 151 - VEHICLE USE TAX › Section 151.101 - Nature of Vehicle Use Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 Vehicle Use Tax is a privilege tax imposed on the privilege of using, in this
			 State, motor vehicles of the First and Second Divisions, motorcycles, motor
			 driven cycles, and motorized pedalcycles.
b) The tax applies to motor vehicles acquired
			 bygift, transfer, orpurchase, and having a year model designation preceding the
			 year of application for title by 10 or fewer years on and after October 1,
			 1985, and prior to January 1, 1988. On and after January 1, 1988, the tax shall
			 apply to all motor vehicles without regard to model year. Section 3-1001 of the
			 Illinois Vehicle Title & Registration Law [625 ILCS
			 5/3-1001 ].
Illinois Administrative Code › Title 86 - REVENUE › Part 151 - VEHICLE USE TAX › Section 151.105 - Basis and Rate of the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a)
Prior to January 1, 1988, the rate of tax shall be 5% of the selling
			 price for each purchase of a motor vehicle.
b)
Except as hereinafter provided,
			 beginning January 1, 1988 and until January 1, 2022, the rate of tax shall be
			 as follows for transactions in which the selling price of the motor vehicle is
			 less than $15,000:
NUMBER OF YEARS TRANSPIRED AFTER MODEL YEAR OF MOTOR
						  VEHICLE
APPLICABLE TAX
1 OR LESS
$390
2
290
3
215
4
165
5
115
6
90
7
80
8
65
9
50
10
40
OVER 10
25
c)
Except as hereinafter provided, beginning on January 1, 2022, the rate
			 of tax shall be as follows for transactions in which the selling price of the
			 motor vehicle is less than $15,000:
NUMBER OF YEARS TRANSPIRED AFTER MODEL YEAR OF MOTOR
						  VEHICLE
APPLICABLE TAX
1 OR LESS
$465
2
365
3
290
4
240
5
190
6
165
7
155
8
140
9
125
10
115
OVER 10
100
d)
Except as hereinafter provided, beginning January 1, 1988 and until
			 January 1, 2022, the rate of tax shall be as follows for transactions in which
			 the selling price of the motor vehicle is $15,000 or more:
SELLING PRICE
APPLICABLE TAX
$15,000 - $19,999
$ 750
$20,000 - $24,999
$1,000
$25,000 - $29,999
$1,250
$30,000 and over
$1,500
e)
Except as hereinafter provided, beginning on January 1, 2022, the rate
			 of tax shall be as follows for transactions in which the selling price of the
			 motor vehicle is $15,000 or more:
SELLING PRICE
APPLICABLE TAX
$15,000 - $19,999
$ 850
$20,000 - $24,999
$1,100
$25,000 - $29,999
$1,350
$30,000 - $49,999
$1,600
$50,000 - $99,999
$2,600
$100,000 - $999,999
$5,100
$1,000,000 and over
$10,100
f)
			 Effective January 1, 1988, the tax rate shall be $15 for each motor vehicle
			 acquired in the following transactions:
1)
When the transfer is a gift to a beneficiary in the administration of
			 an estate, which,
effective May 13, 2022,
includes, but is not
			 limited to, the administration of an inter vivos trust that became irrevocable
			 upon the death of a grantor, and the beneficiary is not a surviving
			 spouse;
2)
When a
			 motor vehicle which has once been subjected to the Illinois retailers'
			 occupation tax or use tax is transferred in connection with the organization,
			 reorganization, dissolution or partial liquidation of an incorporated or
			 unincorporated business wherein the beneficial ownership is not
			 changed;
3)
When
			 the transferee or purchaser is the spouse, mother, father, brother, sister or
			 child of the transferor.
Section 3-1001 of the Illinois Vehicle Title
			 & Registration Law. When the transfer is from one spouse to the other
			 spouse in a dissolution of marriage proceeding the transfer is considered a
			 transfer between spouses for purposes of this subsection. The transfer must be
			 made no later than 90 days after the date of a final, non-appealable order of
			 dissolution of marriage.
Illinois Administrative Code › Title 86 - REVENUE › Part 151 - VEHICLE USE TAX › Section 151.110 - Title Application - Returns and Payment

Current through Register Vol. 48, No. 28, July 12, 2024
a)
The purchaser shall file a return
			 signed by the purchaser with the Department of Revenue on a form prescribed by
			 the Department.
b)
Such return and payment from the purchaser shall be submitted to the
			 Department after the sale and shall be a condition to securing the title to the
			 motor vehicle from the Secretary of State.
Section 3-1002 of the
			 Illinois Vehicle Title & Registration Law (Ill. Rev. Stat. 1987, ch. 951/2,
			 par. 3-1002). Such return and payment from the purchaser or transferee shall be
			 submitted to the Department no later than 30 days after the sale or transfer of
			 the vehicle.
c) When the applicable
			 tax depends upon the "model age" of the vehicle, such "model age" shall be
			 calculated on the date of title application.
d) The "model age" of the vehicle shall be
			 determined by subtracting the model year of the vehicle from the year of the
			 date of title application.
Illinois Administrative Code › Title 86 - REVENUE › Part 151 - VEHICLE USE TAX › Section 151.115 - Nontaxable Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
The tax does not apply to receipts from sales:
a)
If the use of the vehicle is
			 otherwise taxed under the Use Tax Act;
b)
If the motor vehicle is bought and
			 used by a governmental agency or a society, association, foundation or
			 institution organized and operated exclusively for charitable, religious or
			 educational purposes;
c)
If the use of the motor vehicle is not subject to the Use Tax Act by
			 reason of Section 3(A), (B), (C), (D), (E) or (F) of that Act dealing with the
			 prevention of actual or likely multistate taxation;
d)
Of implements of
			 husbandry;
e)
When
			 a Junking Certificate is issued pursuant to Section
3-117.1(a) of the
			 Illinois Vehicle Title & Registration Law [625 ILCS 5/3-117.1];
f)
When a vehicle is subject to the
			 replacement vehicle tax imposed by Section
3-2001
of
the Illinois Vehicle Title & Registration Law; or
g)
When the transfer is a gift to a
			 beneficiary in the administration of an estate and the beneficiary is a
			 surviving spouse
[625 ILCS
			 5/3-1001].
Illinois Administrative Code › Title 86 - REVENUE › Part 152 - AIRCRAFT USE TAX › Section 152.101 - Nature of the Aircraft Use Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 Aircraft Use Tax is a privilege tax imposed on the privilege of using, in this
			 State, aircraft as defined in Section 3 of the Illinois Aeronautics Act. The
			 tax applies to aircraft acquired by gift, transfer, or non-retail purchase
			 after June 30, 2003. The tax is imposed on the use of aircraft in this State
			 regardless of whether the aircraft is actually registered under the Illinois
			 Aeronautics Act. Examples:
1) An aircraft
			 that is acquired by non-retail purchase outside of Illinois prior to June 30,
			 2003 and is brought into Illinois after June 30, 2003 is not subject to the tax
			 imposed by this Part.
2) Fractional
			 share ownership in an aircraft would be subject to tax if the plane were used
			 in Illinois.
3) A multi-state
			 corporation leases a corporate aircraft from a related entity to transport its
			 corporate executives on business travel throughout the United States. The
			 aircraft is registered and hangered outside Illinois. As part of a corporate
			 restructure, ownership of the aircraft will be moved to a new entity. The
			 transfer of both possession and ownership of the aircraft will occur outside
			 Illinois after June 30, 2003 and the transfer of the aircraft to the new entity
			 will qualify as a tax-free capital contribution under the Internal Revenue
			 Code. After completion of this restructuring the aircraft will be based in
			 Illinois. This transfer is a taxable event in Illinois and Aircraft Use Tax is
			 incurred.
Illinois Administrative Code › Title 86 - REVENUE › Part 152 - AIRCRAFT USE TAX › Section 152.105 - Basis and Rate of the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The rate
			 of tax shall be 6.25 % of the selling price for each non-retail purchase of
			 aircraft that qualifies under this Part.
b) Tax shall be imposed on the selling price
			 of an aircraft. However, the selling price shall not be less than the fair
			 market value of the aircraft on the date the aircraft is purchased or the date
			 the aircraft is brought into the State, whichever is later. Trade-ins are not
			 allowed to be credited against the tax base.
c) For purposes of calculating the tax due
			 when an aircraft is acquired by gift or transfer, the tax shall be imposed on
			 the fair market value of the aircraft on the date the aircraft is acquired or
			 the date the aircraft is brought into the State, whichever is later.
d) For purposes of this Section, "selling
			 price" means the consideration received for an aircraft subject to the tax
			 imposed by this Section valued in money, whether received in money or
			 otherwise, including cash, credits, service or property. In the case of gifts
			 or transfers without reasonable consideration, "selling price" shall be deemed
			 to be the fair market value as determined by the Department or the Department's
			 vendor. For the purpose of assisting in determining the validity of the
			 "selling price" reported on returns filed with the Department, the Department
			 may furnish the following information to persons with whom the Department has
			 contracted for service related to making that determination: the selling price
			 stated on the return; the aircraft identification number; the year, the make,
			 and the model name or number of the aircraft; the purchase date; and the hours
			 of operation (Section 10-30). Hours of operation means aircraft hours or
			 airframe hours.
Illinois Administrative Code › Title 86 - REVENUE › Part 152 - AIRCRAFT USE TAX › Section 152.110 - Returns and Payment

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 purchaser, donee or transferee shall file a return signed by the purchaser,
			 donee and transferee with the Department of Revenue on a form prescribed by the
			 Department. The Department may request that the FAA bill of sale and the
			 purchase agreement or invoice be filed with the return.
b) The return and payment from the purchaser,
			 donee, or transferee shall be submitted to the Department within 30 days after
			 the date of purchase, donation, or other transfer or the date the aircraft is
			 brought into the State, whichever is later.
c) Such return and payment shall be a
			 condition to securing registration of the aircraft from the Division of
			 Aeronautics of the Department of Transportation.
Illinois Administrative Code › Title 86 - REVENUE › Part 152 - AIRCRAFT USE TAX › Section 152.115 - Nontaxable Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
a) The tax
			 does not apply:
1) if the use of the aircraft
			 is otherwise taxed under the Use Tax Act [35 ILCS 105 ];
2) if the aircraft is bought and used by a
			 governmental agency or a society, association, foundation, or institution
			 organized and operated exclusively for charitable, religious, or educational
			 purposes. An active Department issued exemption number is required to document
			 this exemption;
3) if the use of
			 the aircraft is not subject to the Use Tax Act by reason of subsection (a),
			 (b), (c), (d), or (e) of Section 3-55 of that Act dealing with the prevention
			 of actual or likely multistate taxation; or
4) if the transfer is a gift to a beneficiary
			 in the administration of an estate and the beneficiary is a surviving
			 spouse.
Illinois Administrative Code › Title 86 - REVENUE › Part 153 - WATERCRAFT USE TAX › Section 153.101 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
As used in this Part, the terms listed below are defined as
				follows:
"Department" means the Department of Revenue.
"Immediate family member" means a spouse, mother, father,
				brother, sister, or child of the transferor.
"Personal watercraft" means a vessel that uses an inboard motor
				powering a water jet pump as its primary source of motor power and that is
				designed to be operated by a person sitting, standing, or kneeling on the
				vessel, rather than the conventional manner of sitting or standing inside the
				vessel, and includes vessels that are similar in appearance and operation but
				are powered by an outboard or propeller drive motor. (Section 1-2 of the Boat
				Registration and Safety Act [625 ILCS
				45/1-2 ]) An example of a personal watercraft is a jet
				ski.
"Purchase price" means the reasonable consideration paid for a
				watercraft valued in money whether received in money or otherwise, including,
				but not limited to, cash, credits, property, and services, and including the
				value of any motor sold with, or in conjunction with, the watercraft. Except in
				the case of transfers between immediate family members, reasonable
				consideration ordinarily means the fair market value on the date the watercraft
				or the share of the watercraft was acquired or the date the watercraft was
				brought into this State, whichever is later, unless the taxpayer can
				demonstrate that a different value is reasonable. In the case of transfers
				between immediate family members, reasonable consideration ordinarily means the
				consideration actually paid, unless it appears from the facts and circumstances
				that the primary motivation of the transfer was the avoidance of tax.
				[35 ILCS 158/15-5
				]
"Watercraft" means Class 2, Class 3, and Class 4 watercraft, as
				defined in Section 3-2 of the Boat Registration and Safety Act [625 ILCS
				45/3-2 ] and personal watercraft, as defined in
				Section 1-2 of the Boat Registration and Safety Act [625 ILCS
				45/1-2 ]. [35 ILCS
				158/15-5 ] Section 3-2 of the Boat Registration and
				Safety Act defines these terms as follows:
"Class 2" watercraft means all watercraft 16 feet or more but
				less than 26 feet in length, except canoes and kayaks.
"Class 3" watercraft means all watercraft 26 feet or more but
				less than 40 feet in length.
"Class 4" watercraft means all watercraft 40 feet or more in
				length.
Illinois Administrative Code › Title 86 - REVENUE › Part 153 - WATERCRAFT USE TAX › Section 153.105 - Nature of the Watercraft Use Tax

Current through Register Vol. 48, No. 28, July 12, 2024
The Watercraft Use Tax is a privilege tax imposed on the
				privilege of using, in this State, watercraft acquired by gift, transfer, or
				non-retail purchase after September 1, 2004. The tax is imposed on the use of
				watercraft in this State regardless of whether the watercraft is actually
				registered under the Boat Registration and Safety Act. No trade-in credit will
				be allowed in a non-retail purchase transaction. Examples:
a) An Illinois resident purchases an 18-foot
			 boat from an individual (non-retailer) in Missouri on October 1, 2004 for
			 $5,000, and brings the boat into Illinois on October 5, 2004. The fair market
			 value of the boat at the time of purchase is $5,000. Watercraft Use Tax is due
			 on the $5,000 purchase price of the boat. However, if the Illinois resident had
			 purchased the boat from a non-retailer in Missouri on August 5, 2004 and
			 brought the boat into Illinois on October 5, 2004, the purchase would not be
			 subject to the tax imposed by this Part.
b) A Chicago resident is given a used 20-foot
			 boat and a motor on September 2, 2004 by his neighbor. Watercraft Use Tax is
			 due on the fair market value of the boat, including the motor.
c) A person living in Joliet, Illinois
			 purchases a jet ski from his neighbor for $3,000 on October 5, 2004. As part of
			 the deal, he trades his $2,000 pontoon boat for the jet ski and pays $1,000
			 cash. The fair market value of the jet ski is $3,000. The purchaser of the jet
			 ski owes Watercraft Use Tax on the entire $3,000 purchase price, and is not
			 allowed to claim a trade-in credit. The purchaser of the pontoon boat also owes
			 Watercraft Use Tax on the entire $2,000 purchase price, and may not claim a
			 trade-in credit.
d) Three people
			 each agree to purchase an undivided 1/3-share interest in a $100,000 yacht from
			 an individual (non-retailer) to be used in Illinois. At the time of the
			 purchase, the fair market value of the yacht is $100,000. Each individual
			 shareholder incurs Watercraft Use Tax on his or her individual share. However,
			 each shareholder is jointly and severally liable for the total taxes due on the
			 entire $100,000 purchase price of the yacht. See Section
			 153.110(c)
			 of this Part.
e) Corporation XYZ
			 purchases a yacht for $75,000 from an individual (non-retailer) for use in
			 Illinois by giving consideration in the form of $25,000 cash and $50,000 in XYZ
			 stock. The fair market value of the yacht is $100,000. Watercraft Use Tax is
			 incurred on the $100,000 amount, unless the corporation can demonstrate that a
			 different value is reasonable.
Illinois Administrative Code › Title 86 - REVENUE › Part 153 - WATERCRAFT USE TAX › Section 153.110 - Basis and Rate of the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Non-Retail Sales of Watercraft
The rate of tax is 6.25 % of the purchase price for each
				watercraft that is subject to tax under the Law [35 ILCS
				158/15-15 ]. However, the purchase price shall not be
				less than the fair market value of the watercraft on the date the watercraft is
				purchased or the date the watercraft is brought into the State, whichever is
				later, unless the purchaser can document that a different value is reasonable.
				In the case of transfers between immediate family members, purchase price
				ordinarily means the consideration actually paid, unless it appears from the
				facts and circumstances that the primary motivation of the transfer was the
				avoidance of tax. Examples:
1) An
			 Illinois resident buys a 20-foot pontoon boat valued at $20,000 from an
			 individual (non-retailer) in Wisconsin for $5,000 on September 5, 2004. On
			 September 25, 2004, she brings the pontoon boat into Illinois for use at her
			 lake home. Watercraft Use Tax is due on the fair market value of the watercraft
			 ($20,000) on September 25, 2004 when the watercraft entered the State, unless
			 she can document that the $5,000 she paid was reasonable.
2) A person living in Champaign, Illinois
			 sells his $10,000 fishing boat to his son for $8,000. The taxable purchase
			 price for this sale between immediate family members will ordinarily be the
			 $8,000 actually paid, unless the Department determines the primary motivation
			 of the sale was the avoidance of tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 153 - WATERCRAFT USE TAX › Section 153.120 - Returns and Payment

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 purchaser, transferee, or donee shall file with the Department a return signed
			 by the purchaser, transferee, or donee on a form prescribed by the Department.
			 The return shall contain a verification in substantially the following form and
			 such other information as the Department may reasonably require:
VERIFICATION
I declare that I have examined this return and, to the best of
				my knowledge, it is true, correct, and complete. I understand that the penalty
				for willfully filing a false return is a fine not to exceed $1,000 or
				imprisonment in a penal institution other than the penitentiary not to exceed
				one year, or both a fine and imprisonment. [35 ILCS
				158/15-20(a) ]
b) The return and payment from the purchaser,
			 transferee, or donee shall be submitted to the Department within 30 days after
			 the date of purchase, donation, or other transfer or the date the watercraft is
			 brought into this State, whichever is later. Payment of tax is a condition to
			 securing certificate of title for the watercraft from the Department of Natural
			 Resources. When a purchaser, transferee, or donee pays the tax imposed by
			 Section 15-10 of the Law, the Department (upon request therefor from the
			 purchaser, transferee, or donee) shall issue an appropriate receipt to the
			 purchaser, transferee, or donee showing that he or she has paid the tax to the
			 Department. The receipt shall be sufficient to relieve the purchaser,
			 transferee, or donee from further liability for the tax to which the receipt
			 may refer. [35 ILCS
			 158/15-20(b) ]
c) Any person required to file a return under
			 the Law who willfully files a false or incomplete return is guilty of a Class A
			 misdemeanor. [35 ILCS
			 158/15-25 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.101 - Nature of the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Service Use
			 Tax is a privilege tax imposed on the privilege of using, in this State,
			 tangible personal property that is received anywhere as an incident to a
			 purchase of service from a serviceman, as "serviceman" is defined in the Act.
			 However, if the serviceman would not be taxable under the Service Occupation
			 Tax Act [35 ILCS 115 ] despite all elements of the sale of service occurring in
			 Illinois, then the tax imposed by the Service Use Tax Act does not apply to the
			 use of such property in this State. Transfers of tangible personal property by
			 de minimis servicemen who incur Use Tax as described in 86 Ill. Adm. Code
			 140.108
			 do not constitute sales of service under Section 2(g) of the Service Occupation
			 Tax Act. As a result, customers of such de minimis servicemen do not incur
			 Service Use Tax liability on such transfers.
b) Any evidence that property was sold by any
			 person for delivery to a person residing in or engaged in business in this
			 State shall be prima facie evidence that such property was sold for use in this
			 State.
c) Rate
1) The rate of the Service Use Tax after
			 December 31, 1989, is 6.25 % of the serviceman's selling price of the tangible
			 personal property transferred by the serviceman as an incident to a sale of
			 service.
2) On and after January 1,
			 2001, prepaid telephone calling arrangements shall be considered tangible
			 personal property subject to the tax imposed under the Act regardless of the
			 form in which those arrangements may be embodied, transmitted, or fixed by any
			 method now known or hereafter developed. (Section 3 of the Act) "Prepaid
			 telephone calling arrangements" means the right to exclusively purchase
			 telephone or telecommunications services that must be paid for in advance and
			 enable the origination of one or more intrastate, interstate, or international
			 telephone calls or other telecommunications using an access number, an
			 authorization code, or both, whether manually or electronically dialed, for
			 which payment to a retailer must be made in advance, provided that, unless
			 recharged, no further service is provided once that prepaid amount of service
			 has been consumed. Prepaid telephone calling arrangements include the recharge
			 of a prepaid calling arrangement. For purposes of this Section, "recharge"
			 means the purchase of additional prepaid telephone or telecommunications
			 services whether or not the purchaser acquires a different access number or
			 authorization code. For purposes of this Section, "telecommunications" means
			 that term as defined in Section 2 of the Telecommunications Excise Tax Act [35
			 ILCS 630 ]. "Prepaid telephone calling arrangement" does not include an
			 arrangement whereby the service provider reflects the amount of the purchase as
			 a credit on an account for a customer under an existing subscription plan.
			 (Section 3-27 of the Act)
Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.110 - Kinds of Uses And Users Not Taxed

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 To prevent actual or likely multistate taxation, the tax shall not apply to the
			 use of tangible personal property in this State under the following
			 circumstances:
1) The use, in this State, of
			 property acquired outside this State by a nonresident individual and brought
			 into this State by such individual for his or her own use while temporarily
			 within this State or while passing through this State;
2) the use, in this State, of property which
			 is acquired outside this State and caused to be brought into this State by a
			 person who has already paid a tax in another state in respect to the sale,
			 purchase or use of such property, to the extent of the amount of such tax
			 properly due and paid in such other state;
3) the temporary storage, in this State, of
			 property which is acquired outside this State and which, subsequent to being
			 brought into this State and stored here temporarily, is used solely outside
			 this State or is physically attached to or incorporated into other property
			 that is used solely outside this State, or is altered by converting,
			 fabricating, manufacturing, printing, processing or shaping, and, as altered,
			 is used solely outside this State. (Section 3-45 of the Act)