Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 130.101 - Character and Rate of Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) Character
				of Tax
The Retailers' Occupation Tax Act (the Act) [35 ILCS
				  120 ] imposes a tax upon persons engaged in this State
				  in the business of selling tangible personal property to purchasers for use or
				  consumption. The tax is measured by the seller's gross receipts from such sales
				  made in the course of such business. (For further information concerning gross
				  receipts, see Subpart D of this Part.)
1) On and after January 1, 2021, a remote
				retailer that meets either of the tax remittance thresholds in 86 Ill. Adm.
				Code 131.115(a) is
				considered a retailer engaged in the occupation of selling at retail in
				Illinois and is liable for all applicable State and local retailers' occupation
				taxes administered by the Illinois Department of Revenue. (For further
				information on the application of the Act to remote retailers, see 86 Ill. Adm.
				Code 131.110, 131.115, 131.120, and
				131.125).
2) On and after January
				1, 2021, a marketplace facilitator that meets either of the tax remittance
				thresholds in 86 Ill. Adm. Code
				131.135(a) is
				considered a retailer engaged in the occupation of selling at retail in
				Illinois and is liable for all applicable State and local retailers' occupation
				taxes administered by the Illinois Department of Revenue on all sales to
				Illinois purchasers made over the marketplace, including its own sales and
				sales made over the marketplace on behalf of marketplace sellers. (For further
				information on the application of the Act to marketplace facilitators, see 86
				Ill. Adm. Code 131.130, 131.135, 131.140, and
				131.145.)
3)
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 2 of the Act).
For purposes of this subsection (a)(3), the following
				  definitions apply:
"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. "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.
"Recharge" means the purchase of additional prepaid
				  telephone or telecommunications services whether or not the purchaser acquires
				  a different access number or authorization code.
"Telecommunications" means that term as defined in
				  Section 2 of the Telecommunications Excise Tax Act
[35 ILCS
				  630 ]. (Section 2-27 of the Act).