Illinois Administrative Code › Title 86 - REVENUE › Part 280 - HOME RULE MUNICIPAL SERVICE OCCUPATION TAX › Section 280.101 - Nature of the Home Rule Municipal Service Occupation Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) Authority to Impose Tax
Municipalities, as defined in Section 8-11-5 of the Illinois
				Municipal Code (Home Rule Municipal Service Occupation Tax Act (the Act) (Ill.
				Rev. Stat. 1989, ch. 24, par. 8-11-5) are authorized to impose a tax on persons
				engaged in the business of making sales of service within such municipality, at
				the same rate of tax imposed pursuant to Section 8-11-1 on the selling price of
				tangible personal property transferred by such serviceman either in the form of
				tangible personal property or in the form of real estate as an incident to such
				sale of service. If imposed, such tax shall only be imposed in 1/4 %
				increments. On and after September 1, 1991, this additional tax shall not be
				imposed on the sales of food for human consumption which is to be consumed off
				the premises where it is sold (other than alcoholic beverages, soft drinks and
				food which has been prepared for immediate consumption) and prescription and
				nonprescription medicines, drugs, medical appliances and insulin, urine testing
				materials, syringes and needles used by diabetics. The tax imposed by a home
				rule municipality pursuant to the Act and this Part and all civil penalties
				that may be assessed as an incident thereof, shall be collected and enforced by
				the Illinois Department of Revenue (Department).
b) Passing on the Tax
Servicemen are required to collect the Home Rule Municipal
				Service Occupation Tax (when applicable) from purchasing servicemen except when
				they can appropriately assume the accountability for self-assessing the tax
				under Subpart m purchasers of service in conformance with the requirements of
				the Service Occupation Tax (86 Ill. Adm. Code 140). The legal incidence of the
				Home Rule Municipal Service Occupation Tax is on the serviceman. Nevertheless,
				the General Assembly has authorized persons subject to any tax imposed pursuant
				to the authority granted in the Home Rule Municipal Service Occupation Tax Act
				to reimburse themselves for their serviceman's Home Rule Municipal Service
				Occupation Tax liability by separately stating such tax as an additional
				charge, which charge may be stated in combination, in a single amount, with
				State tax which servicemen are authorized to collect under the Service Use Tax
				Act (Ill. Rev. Stat. 1989, ch. 120, pars. 439.31 et seq.), pursuant to such
				bracket schedules as the Department has prescribed. (See 86 Ill. Adm. Code
				150.Table A)
c) Exclusion
			 from "Cost Prices"
Any amount added by a serviceman to the selling price of
				tangible personal property sold to a serviceman for retransfer as an incident
				to service because of a Home Rule Municipal Service Occupation Tax, or because
				of the Service Occupation Tax and collected from the purchasing serviceman,
				shall not be regarded as a part of the selling prices which are subject to such
				Home Rule Municipal Service Occupation Tax.