Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart L - BOOKS AND RECORDS › Section 150.1310 - Use of Signs to Prove Collection of Tax as a Separate Item

Current through Register Vol. 48, No. 28, July 12, 2024
a)
The tax imposed by the Act shall
				when collected be stated as a distinct item separate and apart from the selling
				price of the tangible personal property. However, where it is not possible to
				state the sales tax separately in situations such as sales from vending
				machines or sales of liquor by the drink the Department may by rule exempt such
				sales from this requirement so long as purchasers are notified by a sign that
				the tax is included in the selling price.
[35 ILCS
				105/3a ] If the retailer who is entitled to use the
				posted sign procedure wishes to comply with the requirement in question without
				raising prices, the retailer may do this by publicly displaying a sign stating
				that all tangible personal property for which a given charge is made is being
				sold for a specified amount, with the use tax and home rule or other local
				retailers' occupation tax being a specified amount based on the applicable tax
				collection schedule that is set out in TABLE A of this Part, and with the total
				equaling the entire charge which the seller makes for such tangible personal
				property.
b) Another acceptable
				form of sign (assuming a 6.25% use tax and 1% local retailers' occupation tax
				rate to be applicable) may read: charges from 08 cents to 22 cents, inclusive,
				represent 1 cent use tax and local retailers' occupation tax, and the balance
				is the price of the merchandise being sold; charges from 23 cents to 36 cents,
				inclusive, represent 2 cents use tax and local retailers' occupation tax, and
				the balance is the price of the merchandise being sold; charges from 37 cents
				to 51 cents, inclusive, represent 3 cents use tax and local retailers'
				occupation tax, and the balance is the price of the merchandise being sold;
				charges from 52 cents to 66 cents, inclusive, represent 4 cents use tax and
				local retailers' occupation tax, and the balance is the price of the
				merchandise being sold; charges from 67 cents to 81 cents, inclusive, represent
				5 cents use tax and local retailers' occupation tax, and the balance is the
				price of the merchandise being sold; charges from 82 cents to 96 cents,
				inclusive, represent 6 cents use tax and local retailers' occupation tax, and
				the balance is the price of the merchandise being sold; charges from 97 cents
				to $1.10, inclusive, represent 7
				cents use tax and local retailers' occupation tax, and the balance is the price
				of the merchandise being sold; each additional charge of 13 or 14 cents,
				depending upon rounding, or any part thereof shall represent 1 cent use tax and
				local retailers' occupation tax, and the balance shall represent the price of
				the merchandise being sold.
c) In
				the case of the first 2 types of signs referred to hereinabove, appropriate
				adjustments would have to be made if the rate of the local retailers'
				occupation tax is not 1%.
d) The
				requirements in question will be met if the sign (when the sign procedure is
				authorized under the terms of this Section) states that the selling price of
				the tangible personal property includes the use tax and home rule or other
				local retailers' occupation tax or some equivalent expression. The sign need
				not mention the local retailers' occupation tax if the retailer is located in
				an area in which no local retailers' occupation tax is in effect.
e) If a sign is relied on to lay the basis
				for saying that the use tax is being stated separately to the purchaser from
				the selling price of the property, the sign should be dated to indicate for
				what period it was in effect and should be retained by the seller among the
				seller's books and records in the event of a subsequent audit by the
				Department. Except in the case of fraud or the willful failure to file returns,
				the maximum period for keeping records for use tax purposes is 31/2
				years.