Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.129 - Taxation of Seminar Materials

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Definitions
"Cost Price" means the consideration paid by a serviceman for
				  a purchase valued in money, whether paid in money or otherwise, including cash,
				  credits and services, and shall be determined without any deduction on account
				  of his or her supplier's cost of the property sold or on account of any other
				  expense incurred by the supplier. When a serviceman contracts out part or all
				  of the services required in the sale of service, it shall be presumed that the
				  cost price to the serviceman of the property transferred to him or her by a
				  subcontractor is equal to 50% of the subcontractor's charges to the serviceman
				  in the absence of proof of the consideration paid by the subcontractor for the
				  purchase of the property. However, if a primary de minimis serviceman who
				  incurs a Use Tax liability on his or her cost price subcontracts service work
				  to a secondary de minimis serviceman who also incurs a Use Tax liability on the
				  cost price, the primary serviceman will not incur Use Tax liability if the
				  secondary de minimis serviceman has paid, or will remit, Illinois Use Tax on
				  the cost price of any tangible personal property transferred to the primary
				  serviceman and certifies that fact in writing to the primary de minimis
				  serviceman.
"Non-Seminar Materials" means materials or items transferred
				  incident to the presentation of a seminar but not related to the actual subject
				  matter of the seminar presentation or necessary for participation in the
				  seminar. These items would include, but are not limited to, coffee mugs,
				  briefcases or other promotional items. Pencils, pens, pads of paper and similar
				  items are considered items necessary for participation in the seminar.
"Seminar" means any presentation, conference, training
				  program, or continuing education course designed for educational,
				  informational, professional or recreational purposes.
"Seminar Attendance" occurs when a person is required to be
				  physically at a specific location at a specific date and time in order to
				  participate in the seminar. For videoconferences and teleconferences,
				  attendance occurs only when instant interactive communication with the speaker
				  is available.
"Seminar Materials" mean any educational or informational
				  material, and any other items of tangible personal property, prepared, compiled
				  or otherwise obtained for distribution to seminar customers incident to the
				  presentation of a seminar, or of a right to attend the seminar. Seminar
				  materials include, but are not limited to: books, manuals, practice guides,
				  study guides, outlines, audio and video tapes, compact discs, cassette tapes,
				  and items related to the subject of the seminar.
"Seminar Provider" means a person, group, organization,
				  association, or other legal entity that offers, organizes or presents seminars.
				  A seminar provider does not include an organization or institution granted a
				  Department issued exemption identification number ("E" number) pursuant to
				  35 ILCS
				  120/1g of the Retailers' Occupation Tax Act when
				  conducting a seminar or course of study in furtherance of its organizational
				  purpose.
b) Seminar
				Materials - Service Transactions
1) Except as
				provided in subsection (c) of this Section, a seminar provider will incur
				either Service Occupation Tax or Use Tax liability on all seminar materials
				transferred during the presentation of a seminar for which a fee or other
				charge is made for attendance. See the examples in subsection (b)(3) and
				Sections
				140.101
				through
				140.109
				of this Part for further information. See subsection (f) for information
				regarding the tax liabilities of seminar providers conducting seminars for
				which no fee or other charge is made for attendance. A serviceman's liability
				may be calculated in one of four ways:
A)
				Service Occupation Tax on the separately stated selling price of tangible
				personal property transferred incident to service;
B) Service Occupation Tax on 50% of the
				serviceman's entire bill;
C)
				Service Occupation Tax on the serviceman's cost price of tangible personal
				property transferred incident to service if he or she is a registered de
				minimis serviceman; or
D) Use Tax
				on the serviceman's cost price of tangible personal property transferred
				incident to service if he or she is a de minimis serviceman not otherwise
				required to be registered under Section 2a of the Retailers' Occupation Tax
				Act. To determine the proper tax base for seminar materials transferred
				incident to the sale of service, see the examples in subsection (b)(3) and
				Sections
				140.101
				through
				140.109
				of this Part.