reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2004 - Sales to Nonprofit Arts or Cultural Organizations

Current through Register Vol. 48, No. 28, July 12, 2024
a) Between August 6, 1999 and June 30, 2001,
				notwithstanding the fact that sales may be at retail, the Retailers' Occupation
				Tax does not apply to sales of tangible personal property to a not-for-profit
				arts or cultural organization that establishes that it has received an
				exemption under Section 501(c)(3) of the Internal Revenue Code and that is
				organized and operated for the presentation or support of arts orcultural
				programming, activities, or services. (Section 2-5(9) of the Act)
b) On and after July 1, 2001, the Retailers'
				Occupation Tax does not apply to sales of tangible personal property to a
				not-for-profit arts or cultural organization that establishes that it has
				received an exemption under Section 501(c)(3) of the Internal Revenue Code and
				that is organized and operated primarily for the presentation or support of
				arts or cultural programming, activities, or services. An entity otherwise
				eligible for this exemption shall not make tax-free purchases unless it has an
				active identification number issued by the Department. (Section 2-5(9) of the
				Act)
1) Only nonprofit organizations that are
				organized and operated primarily for the presentation or support of arts or
				cultural programming, activities, or services can qualify for this exemption
				from sales tax. To demonstrate qualification, an organization must be operated
				so that its proceeds and activities in their totality are primarily devoted to
				the presentation or support of arts or cultural programming, activities, or
				services. The fact that an organization is organized and operated primarily for
				the presentation or support of arts or cultural programming, activities, or
				services must also be reflected in its organizational documents. Organizations
				are required to apply for and obtain a tax exemption identification number. To
				establish eligibility for this exemption, an organization should submit the
				following documents to the Illinois Department of Revenue:
A) Copy of the Internal Revenue Service
				letter under which it received an exemption under Section 501(c)(3) of the
				Internal Revenue Code.
B) If
				incorporated, copy of Articles of Incorporation.
C) If unincorporated, copy of organization's
				Charter or Constitution.
D) Copy of
				By-laws.
E) A narrative explaining
				purposes, functions and activities of the organization.
F) Copy of brochures or other printed
				material explaining the purposes, functions and activities of the
				organization.
G) Copy of most
				recent financial statement.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2005 - Persons Engaged in Nonprofit Service Enterprises and in Similar Enterprises Operated As Businesses, and Suppliers of Such Persons

Current through Register Vol. 48, No. 28, July 12, 2024
a) Sales by Nonprofit Service Organizations
Effective August 1, 1961, nonprofit country clubs, boat
				  clubs, employees' clubs or organizations and other nonprofit social, athletic
				  or recreational organizations, lodges, patriotic organizations, fraternities,
				  sororities, professional and trade associations, civic organizations, labor
				  unions and other nonprofit persons who are not exclusively charitable,
				  religious or educational organizations are liable for Retailers' Occupation Tax
				  when selling tangible personal property at retail to members, guests or others.
				  The same is true of exclusively charitable, religious or educational
				  organizations and institutions with certain limited exceptions.
1) Scope of the Exemption
A) There still are some very limited
				exemptions from the Retailers' Occupation Tax for sales by exclusively
				charitable, religious and educational organizations and institutions. However,
				the exemption is not available unless the selling organization or institution
				does qualify as an "exclusively" charitable, religious or educational
				organization or institution.
B) It
				is not enough simply to be a nonprofit organization or institution. In case of
				doubt concerning any such seller's Retailers' Occupation Tax status, apply to
				the Department of Revenue for a letter ruling, submitting copies of the Charter
				or Constitution and By-laws and other relevant information for this
				purpose.
C) The exemption that is
				available under some circumstances for sales by exclusively charitable,
				religious or educational organizations or institutions is not available in any
				situation, for example, to sales by such other kinds of nonprofit organizations
				as civic clubs, nonprofit social and recreational organizations, patriotic
				organizations, lodges and their auxiliaries, trade associations, etc. Even
				though the latter types of organizations do much good charitable work, they are
				not "exclusively" charitable organizations under Illinois Supreme Court
				decisions, so any retail selling which they do would be subject to the
				Retailers' Occupation Tax.
D) Some
				of the kinds of organizations which qualify as exclusively charitable
				organizations are Parent-Teacher organizations, the American National Red
				Cross, Community Fund or United Fund organizations, the Y.M.C.A., the Y.W.C.A.,
				Boy Scout organizations and Girl Scout organizations.
E) Exclusively charitable, religious and
				educational organizations incur Retailers' Occupation Tax liability when they
				engage in selling tangible personal property at retail except in three
				situations.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2006 - Sales by Teacher-Sponsored Student Organizations

Current through Register Vol. 48, No. 28, July 12, 2024
a) Sales by teacher-sponsored student
				organizations affiliated with an elementary or secondary school located in
				Illinois are exempt from Retailers' Occupation Tax. (Ill. Rev. Stat. 1983, ch.
				120, par. 441)
b) "A
				teacher-sponsored student organization affiliated with a public elementary or
				secondary school" means an organization which collects and disburses monies as
				approved by the local Board of Education pursuant to the provisions of 23 Ill.
				Adm. Code 125. Such organizations would include student councils, student
				clubs, choral and band groups, etc. This particular exemption does not extend
				to sales by the school itself, a school bookstore, a faculty lounge, PTA, or
				any other entity which does not meet the requirements described above.
				Teacher-sponsored student organizations of private elementary or secondary
				schools not under the jurisdiction of the State Board of Education are similar
				organizations which must comply with procedures set by the school when
				expending funds.
c) In order for
				student organizations to be allowed to purchase items for resale without paying
				tax to their suppliers, the school, school district or treasurer appointed by
				the local Board of Education must apply to the Department of Revenue for a
				reseller's certificate to be issued in the name of the school, school district
				or student activity fund. Suppliers selling to teacher-sponsored student
				organizations for resale must obtain a Certificate of Resale.
d) Student organizations selling tangible
				personal property obtained under a Certificate of Resale need not file sales
				tax returns with respect to such sales. Also, there is no limitation on the
				amount of nor frequency of such sales.
e) Purchases by teacher-sponsored student
				organizations of items for use or consumption by the organization or activity
				are subject to sales tax. Only items which are resold may be acquired without
				payment of tax. For example, if a qualified organization buys modeling clay for
				a purpose other than resale, it must pay sales tax on its purchase of the
				clay.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2007 - Exemption Identification Numbers

Current through Register Vol. 48, No. 28, July 12, 2024
a) Tax-exempt Purchases
On and after July 1, 1987, an entity which would otherwise
				  qualify for tax-exempt status on its purchases of tangible personal property
				  for use or consumption (refer to Section
				  130.2005
				  and Section
				  130.2080
				  ) cannot make tax-free purchases unless it has an active exemption
				  identification number issued by the Department.
b) Application for Exemption Identification
				Numbers - Requirements
An entity seeking exemption from sales tax should furnish the
				  Department with the following:
1) If
				incorporated, copy of Articles of Incorporation.
2) If unincorporated, copy of organization's
				Constitution.
3) Copy of
				By-laws.
4) A narrative explaining
				purposes, functions and activities of the organization.
5) Copy of Internal Revenue Service (I.R.S.)
				letter, respecting federal tax-exempt status, if organization has
				one.
6) Copy of brochures or other
				printed material explaining the purposes, functions and activities of the
				organization.
7) Copy of most
				recent financial statement (religious organizations need not submit a financial
				statement with the initial application).
8) Any other information which reflects the
				purposes, functions and activities of the organization.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2008 - Sales by Nonprofit Service Enterprises

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Retailers' Occupation Tax does not
				apply to some sales of merchandise by nonprofit organizations whose main
				purpose is to benefit persons who are 65 years of age or older. These
				organizations are called "service enterprises".
b) An organization will be viewed as a
				service enterprise if it is organized and operated on a not-for-profit basis
				and if it provides services which are primarily designed to benefit persons 65
				years of age or older. The types of services offered can include, but are not
				limited to, the following:
Counseling services;
employment services;
facilities improvement services;
health services;
nutritional services;
transportation services;
volunteer program services.
c) Qualifying not-for-profit service
				enterprises are not required to remit tax to the Department on their sales of
				merchandise at retail if such organizations did not originally purchase the
				merchandise free from tax. The term "merchandise" includes raw materials which
				are fabricated into such merchandise.
d) If a qualifying not-for-profit enterprise
				sells merchandise which was purchased tax-free under either a Certificate of
				Resale or an exemption identification number, it must collect and remit tax to
				the Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2009 - Personal Property Purchased Through Certain Fundraising Events for the Benefit of Certain Schools

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Beginning January 1, 2000, the Retailers' Occupation Tax does not apply to the
				sale of personal property, including food, purchased through fundraising events
				for the benefit of a public or private elementary or secondary school, a group
				of those schools, or one or more school districts if the events are sponsored
				by an entity recognized by the school district that consists primarily of
				volunteers and includes parents and teachers of the school children. This
				subsection (a) does not apply to fundraising events:
1) for the benefit of private home
				instruction; or
2) for which the
				fundraising entity purchases the personal property sold at the events from
				another individual or entity that sold the property for the purpose of resale
				by the fundraising entity and that profits from the sale to the fundraising
				entity (Section 2-5 of the Act). The following requirements must be met for the
				exemption to apply:
A) The fundraising event
				must be for the benefit of the school. If the event benefits others, the
				exemption does not apply. For example, if a parent-teacher association sells
				clothes donated to it by parents and gives a portion of the sales proceeds back
				to the donors, the exemption does not apply because the sale benefits the
				donors. However, if the parent-teacher association sells donated clothes and
				the entire proceeds benefit the school, the exemption applies; and
B) The fundraising event must be sponsored by
				an entity "recognized" by the school district or districts. A school district
				must grant approval to the entity, in the form of a written certification, to
				sell tangible personal property for the purpose of benefiting the school,
				schools, school district, or school districts. In the case of fundraising
				events benefiting a private school that is not part of a school district, the
				private school must grant approval to the entity, in the form of a written
				certification, to sell tangible personal property for the purpose of benefiting
				the school; and
C) The entity
				sponsoring the fundraising event must be comprised primarily of volunteers,
				including parents and teachers of the school children.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2010 - Persons Who Rent or Lease the Use of Tangible Personal Property to Others

Current through Register Vol. 48, No. 28, July 12, 2024
a) Persons Who Rent
				or Lease the Use of Tangible Personal Property to Others - When Liable For
				Retailers' Occupation Tax
If persons who are engaged in the business of selling
				  tangible personal property to purchasers for use or consumption purport to rent
				  or lease the use of any such property to a nominal lessee or bailee, but in
				  fact sell such tangible personal property to the nominal lessee or bailee for
				  use or consumption, such persons are liable for payment of the Retailers'
				  Occupation Tax. This is the case, for example, when the transaction involves a
				  lease with a dollar or other nominal option to purchase. Such a transaction is
				  considered to be a conditional sale from the outset, and all of the receipts
				  from the transaction are subject to Retailers' Occupation Tax.
b) Persons Who Rent or Lease the
				Use of Tangible Personal Property to Others - When Not Liable For Retailers'
				Occupation Tax
Persons who, under bona fide agreements, rent or lease the
				  use of automobiles under lease terms of more than one year, furniture, bus
				  tires, costumes, towels, linens or other tangible personal property to others
				  are, to this extent, not engaged in the business of selling tangible personal
				  property to purchasers for use or consumption within the meaning of the
				  Retailers' Occupation Tax Act and are not required to remit Retailers'
				  Occupation Tax measured by their gross receipts from such transactions.
				  However, such lessors (not being resellers) are users of the property and are
				  subject to the Use Tax when purchasing tangible personal property which they
				  rent or lease to others (see Sections
				  150.201 and
				  150.305(e)
				  of the Use Tax (86 Ill. Adm. Code 150) and Section
				  130.220
				  of this Part). Except as provided in Sections
				  130.2011
				  and
				  130.2012
				  of this Part, such lessors incur Use Tax even if the tangible personal property
				  is leased to an exempt entity that has been issued an exemption identification
				  number under Section
				  130.2007
				  of this Part.
c) Rentors of
				automobiles under lease terms of one year or less incur neither Use Tax
				liability on the cost price of the vehicle(s), nor Retailers' Occupation Tax
				liability on rental receipts. Persons engaged in this State in the business of
				renting automobiles in Illinois under lease terms of one year or less incur
				liability under the Automobile Renting Occupation and Use Tax Act [35 ILCS 155
				]. The Automobile Renting Occupation Tax rules are found at 86 Ill. Adm. Code
				180.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2011 - Sales to Persons Who Lease Tangible Personal Property to Exempt Hospitals

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Effective January 1, 1996 through December 31, 2000, and on and after August 2,
				2001, sales of computers and communications equipment utilized for any hospital
				purpose that are sold to persons who lease those items to exempt hospitals are
				not subject to Retailers' Occupation Tax. As noted in this subsection, the
				exemption is not available during the period January 1, 2001 through August 1,
				2001 because it expired under the provisions of Section 2-70 of the Retailers'
				Occupation Tax Act [35 ILCS
				120/2-70 ] and was not reinstated until August 2,
				2001. The exemption is otherwise available, provided that:
1) the computers and communications equipment
				described above must all be purchased for lease to a tax exempt hospital under
				a lease that has been executed or is in effect at the time of
				purchase;
2) the lease must be for
				a period of one year or longer; and
3) the lease must be to a hospital that has
				an active tax exemption identification number issued by the Department under
				Section 1g of the Retailers' Occupation Tax Act (see Section
				130.2007
				of this Part).
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2012 - Sales to Persons Who Lease Tangible Personal Property to Governmental Bodies

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective
				January 1, 1996 through December 31, 2000, and on and after August 2, 2001,
				sales of tangible personal property to a lessor who leases that property to a
				governmental body are not subject to Retailers' Occupation Tax. As noted in
				this subsection, the exemption is not available during the period January 1,
				2001 through August 1, 2001 because it expired under the provisions of Section
				2-70 of the Retailers' Occupation Tax Act [35 ILCS
				120/2-70 ] and was not reinstated until August 2,
				2001. The exemption is otherwise available, provided that:
1) the tangible personal property must be
				purchased for lease to a governmental body under a lease that has been executed
				or is in effect at the time of purchase;
2) the lease must be for a period of one year
				or longer; and
3) the lease must be
				to a governmental body that has an active tax exemption identification number
				issued by the Department under Section 1g of the Retailers' Occupation Tax Act
				(see Section
				130.2007
				of this Part).
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2015 - Persons Who Repair or Otherwise Service Tangible Personal Property

Current through Register Vol. 48, No. 28, July 12, 2024
a) Persons Who
				Service or Repair Tangible Personal Property - When Liable For Retailers'
				Occupation Tax
1) When persons who service or
				repair tangible personal property sell tangible personal property to purchasers
				for use or consumption apart from their rendering of service, they incur
				Retailers' Occupation Tax liability. This is the case, for example:
A) Where a repairman sells repair parts
				"over-the-counter" to a purchaser for use or consumption without any obligation
				on the part of the repairman to install such parts for the purchaser;
B) where a repairman repairs, rebuilds or
				reconditions property which belongs to himself and then sells such property to
				a purchaser for use or consumption apart from his rendering of service as a
				repairman;
C) where a repairman
				sells accessories (with or without installation), to purchasers for use or
				consumption;
D) where a repairman
				or other person engaged in a service occupation sells, "over-the-counter", to
				purchasers for use or consumption, apart from the rendering of service, such
				items as lubricants, grease, paint, wax, polish, lacquer, solder, materials for
				patching or repairing tires, and other tangible personal property;
				and
E) where a repairman
				manufactures and sells retread tires, whether or not the tire casing is
				provided by the purchaser. (But, see subsection (d)(2) of this Section
				regarding the patching of tires. Also see Section
				130.330(d)(3)(G)
				 of this Part for information regarding the
				Manufacturing Machinery and Equipment Exemption on retreading machinery and
				equipment.)
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2020 - Physicians and Surgeons

Current through Register Vol. 48, No. 28, July 12, 2024
a) When
				Liable For Tax
When physicians or surgeons sell items of tangible personal
				  property such as medical bracelets, crutches, wheelchairs, first-aid kits, and
				  the like, to purchasers for use or consumption apart from their rendering of
				  service as physicians or surgeons, they incur Retailers' Occupation Tax
				  liability. For information about whether these items qualify as medical
				  appliances, see Food, Drugs, Medicines and Medical Appliances, 86 Ill. Adm.
				  Code
				  130.310.
b) When Not Liable For Tax
Physicians and surgeons are engaged in professions and
				  primarily render service. To the extent to which they engage in such
				  professions, they are not engaged in the business of selling tangible personal
				  property to purchasers for use or consumption within the meaning of the Act.
				  Consequently, they are not required to remit Retailers' Occupation Tax measured
				  by their receipts from engaging in such professions, including receipts from
				  both services and tangible personal property transferred incident to those
				  services.
c) Liability
				Under the Service Occupation Tax Act
For information concerning the application of the Service
				  Occupation Tax to sales by physicians and surgeons of tangible personal
				  property that they transfer as an incident to rendering service, see the
				  Service Occupation Tax regulations at 86 Ill. Adm. Code 140.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2025 - Picture-Framers

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For
				Tax
Picture-framers incur Retailers' Occupation Tax liability
				  when they sell frames at retail, even though they make such picture frames only
				  upon receipt of orders therefor. This is true even though the picture-framer
				  installs, in such frame, a picture belonging to his customer.
b) When Not Liable For Tax
A picture-framer does not incur liability for tax with
				  respect to his gross receipts from his service of installing a picture owned by
				  a customer in a frame owned by that customer.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2030 - Public Amusement Places

Current through Register Vol. 48, No. 28, July 12, 2024
a) When
				Liable For Tax
If, auxiliary to the operation of places of public amusement,
				  persons sell refreshments, beverages or other tangible personal property to
				  purchasers for use or consumption, they are, to this extent, engaged in the
				  business of selling tangible personal property to purchasers for use or
				  consumption within the meaning of the Retailers' Occupation Tax Act and are
				  required to remit Retailers' Occupation Tax to the Department on their gross
				  receipts from such sales.
b) When Not Liable For Tax
1) Persons engaged in the business of
				operating such public amusement places as motion picture theaters, operas,
				baseball parks, golf courses, tennis courts, swimming pools, billiard and pool
				parlors, bowling alleys, dance halls, amusement parks, miniature golf courses,
				circuses, carnivals, Chautauqua, lectures and all other places of public
				entertainment or amusement are engaged primarily in a service occupation within
				the meaning of the Act.
2) To the
				extent to which they engage in such service occupation, they are not engaged in
				the business of selling tangible personal property to purchasers for use or
				consumption within the meaning of the Act. Consequently, they are not required
				to remit Retailers' Occupation Tax measured by any of their receipts from
				engaging in such service occupation, including those receipts which represent
				the price of tangible personal property, such as tickets and programs, which
				they transfer to others as a necessary incident to their rendering of
				service.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2035 - Registered Pharmacists and Druggists

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For Tax
When registered pharmacists or druggists sell drugs or
				  medicines "over-the-counter" to purchasers for use or consumption apart from
				  their filling of the prescription of a licensed physician or other person
				  qualified to issue prescriptions, or when registered pharmacists or druggists
				  sell other tangible personal property to purchasers for use or consumption,
				  such registered pharmacists or druggists incur retailers' occupation tax
				  liability.
b) When Not
				Liable For Tax
1) When registered pharmacists
				and druggists, who, themselves, are engaged in the practice of a licensed
				profession, sell medicines or drugs on the prescription of a licensed physician
				or other person qualified to issue prescriptions, such registered pharmacists
				and druggists are engaged primarily in a service occupation or profession and
				are not required to remit retailers' occupation tax measured by their receipts
				from such transactions, including receipts from both labor and tangible
				personal property. These transactions are governed by the Service Occupation
				Tax Act. For information concerning the Service Occupation Tax, see 86 Ill.
				Adm. Code 140. For information on Sales of Drugs and Related Items, to or by
				Pharmacists, see 86 Ill. Adm. Code
				140.135.
2) For information concerning newspapers,
				magazines, books, sheet music, and phonograph records, see Section
				130.2105 of this Part.
3) For information concerning photofinishing,
				see Section 130.2000 of this Part.
4) For information concerning sales of
				medicines, see Section
				130.311 of this
				Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2040 - Retailers of Clothing

Current through Register Vol. 48, No. 28, July 12, 2024
a) When
				Liable For Tax
Persons who engage in the business of selling clothing to
				  purchasers for use or consumption and not for resale incur Retailers'
				  Occupation Tax liability when making such sales whether such clothing is sold
				  as a stock or standard item or whether it is produced on special order for the
				  purchaser. Suits, hats and other forms of clothing, when made on special order,
				  serve substantially the same function as stock or standard clothing items that
				  are sold at retail.
b)
				Production Labor Cost Not Deductible
In computing Retailers' Occupation Tax liability on the
				  retail sale of custom-made clothing, no deduction may be taken for the cost of
				  labor involved in producing the finished item for sale. This is true whether
				  such production labor is included in a lump sum price with the tangible
				  personal property or whether such production labor is priced separately from
				  the tangible personal property. The thing that is being sold is the finished
				  item of clothing, and the cost of labor involved in making such item is no more
				  deductible than is the cost of labor that is involved in producing a stock or
				  standard item for sale.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2045 - Retailers on Premises of the Illinois State Fair, County Fairs, Art Shows, Flea Markets and the Like

Current through Register Vol. 48, No. 28, July 12, 2024
a) When
				Liable For Tax
Every person (including nonprofit service organizations as
				  well as other persons) engaging in the sale of any tangible personal property
				  for use or consumption as a concessionaire at the Illinois State Fair, County
				  Fairs, art shows, flea markets and the like,may berequired to make a daily
				  report of the amount of such sales to the Department and to make a daily
				  payment of the full amount of tax due. Upon receiving such payment, the
				  Department will issue to the concessionaire an official receipt. The Department
				  shall impose this requirement when it finds that there is a significant risk of
				  loss of revenue to the State at such an exhibition or event. Such finding shall
				  be based on evidence that a substantial number of concessionaires or other
				  sellers who are not residents of Illinois will be engaging in the business of
				  selling tangible personal property at retail at the exhibition or event, or
				  other evidence of a significant risk of loss of revenue to the State. (Section
				  3 of the Act)
b) Contract
				With Illinois State Fair Management
It is a condition of the contract between each concessionaire
				  who is subject to the Retailers' Occupation Tax Act and the Illinois State Fair
				  Management that the concessionaire shall pay Retailers' Occupation Tax "upon
				  demand" by the Department. Any concessionaire who violates this provision of
				  his contract or who fails to make the daily report and payment of tax required
				  by this Regulation, will be certified by the Department to the Superintendent
				  of Concessions of the Illinois State Fair as not being in good standing,
				  together with the request that action be taken immediately to cancel all
				  privileges granted to such concessionaire under his concession.
c) Notification by Department
Concessionaires will be contacted by the Department during
				  the course of County Fairs, art shows, flea markets and the like, and informed
				  that Retailers' Occupation Tax shall be paid "upon demand" to the Department.
				  In the absence of notification by the Department, concessionaires shall file
				  their returns as otherwise provided in Subpart E of this Part entitled
				  "Returns".
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2050 - Sales and Gifts By Employers to Employees

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For Retailers' Occupation Tax
1) Where a manufacturer or other employer,
				who is engaged in a commercial enterprise, sells tangible personal property to
				its employees for use or consumption, such manufacturer or other employer is
				engaged in the business of selling tangible personal property at retail and
				incurs Retailers' Occupation Tax liability with respect to its gross receipts
				from such sales. It is immaterial that the receipts from such sales constitute
				only a small fraction of the manufacturer's or other employer's total receipts
				from its business, or that sales ordinarily are made at retail only to the
				employees of the manufacturer or other employer and not to the general
				public.
2) For example, where a
				manufacturer operates a restaurant or cafeteria at which it sells meals
				exclusively to its own employees, such manufacturer must remit to the
				Department the Retailers' Occupation Tax measured by its gross receipts from
				these sales; or where a clock and watch manufacturer makes sales of clocks and
				watches to its employees for their use or consumption, such manufacturer must
				remit to the Department the Retailers' Occupation Tax measured by its gross
				receipts from these sales.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2055 - Sales by Governmental Bodies

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Sales by the State of Illinois and by Local Governments in Illinois Effective
				August 1, 1961, the State of Illinois or any local governments in Illinois, or
				any agency or instrumentality of any such governmental body, incurs Retailers'
				Occupation Tax liability when it engages in the selling of tangible personal
				property at retail to the public other than in the performance of a
				governmental function. This includes the selling of fuel to users by airport
				authorities or other governmental bodies, except that, until June 30, 2013, it
				does not include the proceeds from the sale of fuel and petroleum products sold
				to or used by an air common carrier, certified by the carrier to be used for
				consumption, shipment or storage, in the conduct of its business or as an air
				common carrier, for a flight destined for or returning from a location or
				locations outside the United States without regard to previous or subsequent
				domestic stopovers.
Beginning July 1, 2013, it does not include fuel
				and petroleum products sold to or used by an air carrier, certified by the
				carrier to be used for consumption, shipment or storage in the conduct of its
				business as an air common carrier, for a flight that is engaged in foreign
				trade or is engaged in trade between the United States and any of its
				possessions and that transports at least one individual or package for hire
				from the city of origination to the city of final destination on the same
				aircraft, without regard to a change in the flight number of that
				aircraft
(see 86 Ill. Adm. Code
				130.321
				). [35 ILCS
				120/2-5(22) ] Also included is the
				operation of public stands by park districts or other governmental bodies,
				etc., but does not include the furnishing of utility services to the public,
				and does not include sales that may be made by such a governmental body to the
				public involving the performance of a governmental function (such as the sale
				of motor vehicle license plates by the State of Illinois).
b) Sales by the United States Government and
				by Foreign Governments Since a state may not place the legal incidence of its
				taxes directly on the United States Government or on a foreign government,
				sales by the United States Government and foreign governments, or any agency or
				instrumentality of any such government, are not subject to the Retailers'
				Occupation Tax even though such sales may be made in Illinois. For example,
				sales by the United States Postal Service are not subject to Retailers'
				Occupation Tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2075 - Sales To Construction Contractors, Real Estate Developers and Speculative Builders

Current through Register Vol. 48, No. 28, July 12, 2024
a) Sales to
				Construction Contractors, Real Estate Developers and Speculative Builders -
				When Taxable and When Not Taxable
1) Persons
				who engage in selling tools, equipment, fuel, supplies and other tangible
				personal property to construction contractors, real estate developers or
				speculative builders for use or consumption incur Retailers' Occupation Tax
				liability when making such sales. Also, persons who (apart from acting as
				construction contractors themselves) engage in selling building materials,
				fixtures, plants and other tangible personal property to construction
				contractors, speculative builders or real estate developers, who convert such
				items into real estate so as to take such items off the market as tangible
				personal property, incur Retailers' Occupation Tax liability when making such
				sales.
2) When the purchasing
				construction contractor (whether he is the prime contractor or the
				subcontractor) buys the item that he will convert into real estate in finished
				form, the tax base is what such construction contractor pays for the item. When
				the construction contractor-installer (whether he is the prime contractor or a
				subcontractor) is also the manufacturer of the finished item that he will
				incorporate into real estate for his customer, the tax base is what such
				construction contractor pays for the materials that he incorporates into such
				finished item, plus whatever such construction contractor may pay for nails,
				screws or other items of tangible personal property that he buys and
				incorporates into real estate for his customer in the course of making the
				installation of the finished item.
3) For information as to who qualifies as a
				construction contractor, see Section
				130.1940(a)
				and (c) of this Part.
4) Sales of tangible personal property to
				construction contractors, real estate developers or speculative builders who
				resell such property in the form of tangible personal property would not be
				taxable sales, but the construction contractor, real estate developer or
				speculative builder would be making taxable resales in this situation (see
				Section
				130.1940(b)
				and (c) of this Part).
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2076 - Sales to Purchasers Performing Contracts with Governmental Bodies

Current through Register Vol. 48, No. 28, July 12, 2024
a) Generally, a
				government contractor who purchases items to fulfill his obligations under a
				contract with a governmental unit purchases those items for use. See, U.S. v.
				New Mexico, 455 U.S. 720, 102 S.Ct. 1373 (1982). However, if the contract with
				the governmental unit explicitly requires the contractor to sell those items to
				the governmental unit, the purchase of those items by the contractor can be
				structured as purchases for the purpose of resale to the governmental unit.
				Sales of tangible personal property to the contractor in this situation are
				exempt from Retailers' Occupation Tax as sales for resale if the following
				conditions are met:
1) There is a contract
				between the purchaser and the governmental body that requires the purchaser to
				provide tangible personal property to the governmental body.
2) The contract is specific in documenting a
				sale of tangible personal property from the purchaser to the governmental body.
				The contract must specify that the tangible personal property is transferred to
				the governmental body. However, the contract does not have to be item specific.
				For example, a statement that title to all of the tangible personal property
				that is purchased shall pass to the governmental body is sufficient. The
				transfer may be immediate or subsequent to the completion of the
				contract.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2080 - Sales to Governmental Bodies, Foreign Diplomats and Consular Personnel

Current through Register Vol. 48, No. 28, July 12, 2024
a) Exemption
				Identification Number. On and after January 1, 2015, except as provided in
				subsections (b) and (c), sales of tangible personal property made to a
				governmental body (federal, State, local or foreign) are exempt from the
				Retailers' Occupation Tax only if the governmental body has an active exemption
				identification number ("E-number") issued by the Department and it provides
				this active E-number to the retailer, who records that number instead of
				collecting the tax. In addition, only sales of tangible personal property
				invoiced directly to and paid by governmental bodies that possess active
				E-numbers are exempt. If an individual government employee provides a credit
				card to the retailer containing the name of the employee along with the name of
				the governmental body, tax will be due even if the employee provides an active
				E-number. However, until December 31, 2014, retailers may accept U.S.
				Government Bank Cards in sales to the U.S. Government and its agencies without
				requiring an Illinois active exemption identification number.
1) For the foregoing purposes, the date of
				sale is considered to be the date of delivery to the purchaser.
2) The purchase of meals, fuel and other
				tangible personal property by corporations in Illinois are taxable sales at
				retail, unless otherwise exempt, notwithstanding the fact that the stock of
				such corporations may be owned exclusively or in part by foreign
				governments.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2081 - Tax-Free Purchases By Exempt Entities, Their Employees and Representatives, and Documenting Sales to Exempt Entities, Their Employees and Representatives

Current through Register Vol. 48, No. 28, July 12, 2024
a)
Gross receipts from proceeds from the sale of the following tangible
				personal property are exempt from the tax imposed by this Retailers' Occupation
				Tax Act:
1)
Personal
				property sold to a governmental body, to a corporation, society, association,
				foundation, or institution organized and operated exclusively for charitable,
				religious, or educational purposes, or to a not-for-profit corporation,
				society, association, foundation, institution, or organization that has no
				compensated officers or employees and that is organized and operated primarily
				for the recreation of persons 55 years of age or older. A limited liability
				company may qualify for the exemption under this
subsection
only if the limited liability company is organized and operated
				exclusively for educational purposes. On and after July 1, 1987, however, no
				entity otherwise eligible for this exemption shall make tax-free purchases
				unless it has an active identification number issued by the Department
[35 ILCS
				120/2-5(11)]. See 86 Ill. Adm. Code
				130.120(h)
				and 86 Ill. Adm. Code
				130.2007.
2)
Computers and communications
				equipment utilized for any hospital purpose and equipment used in the
				diagnosis, analysis, or treatment of hospital patients sold to a lessor who
				leases the equipment, under a lease of one year or longer executed or in effect
				at the time of the purchase, to a hospital that has been issued an active tax
				exemption identification number by the Department
[35
				ILCS 120/2-5(36)]. See 86 Ill. Adm.
				Code
				130.120(mm)
				and 86 Ill. Adm. Code
				130.2011.
3)
Personal property sold to a lessor
				who leases the property, under a lease of one year or longer executed or in
				effect at the time of the purchase, to a governmental body that has been issued
				an active tax exemption identification number by the Department
[35 ILCS
				120/2-5(29)]. See 86 Ill. Adm. Code
				130.120(nn)
				 and 86 Ill. Adm. Code
				130.2012.
4) Sales of materials to construction
				contractors for incorporation into real estate owned by exclusively charitable,
				religious or educational institutions or organizations, or any not-for-profit
				corporation, society, association, foundation, institution or organization that
				has no compensated officers or employees and that is organized and operated
				primarily for the recreation of persons 55 years of age or older, or for
				incorporation into real estate owned by governmental bodies. See 86 Ill. Adm.
				Code
				130.2075.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2085 - Sales to or by Banks, Savings and Loan Associations and Credit Unions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Sales to Banks,
				Etc.
1) Retail sales to national banks,
				State-chartered banks, Federally-chartered savings and loan associations, and
				other privately-owned financial institutions are subject to the Retailers'
				Occupation Tax. This conclusion also applies to sales of building materials and
				fixtures to construction contractors for incorporation into real estate owned
				by banks and savings and loan associations even if such real estate is used for
				bank or savings and loan association purposes. For the foregoing purposes, the
				date of sale is considered to be the date of delivery to the purchaser.
				Beginning January 4, 2019, sales of tangible personal property are exempt from
				the Retailers' Occupation Tax if the purchaser is exempt from use tax by
				operation of federal law. [35 ILCS
				120/2-5(16)]
2) Federally-chartered credit unions, the
				Federal National Mortgage Association (Fannie Mae), Farm Credit Banks, and
				Federal Home Loan Banks do not incur Use Tax liability when making purchases of
				tangible personal property for use or consumption. (See respectively
				12 U.S.C.
				1768,
				12 U.S.C.
				1723(a)(C)(2),
				12 U.S.C.
				2023 and
				12 U.S.C.
				1433.) Retailers making sales of tangible
				personal property to Federal credit unions, the Federal National Mortgage
				Association (Fannie Mae), Farm Credit Banks, and Federal Home Loan Banks are
				not able to reimburse themselves for the retailers' occupation tax they incur
				as a result of making such sales by collecting the reimbursing use tax.
				Nonetheless, retailers making sales of tangible personal property to Federal
				credit unions, the Federal National Mortgage Association (Fannie Mae), Farm
				Credit Banks, and Federal Home Loan Banks do incur retailers' occupation tax
				liability on their gross receipts from such sales. Beginning January 4, 2019,
				purchases of tangible personal property are exempt from the Use Tax if the
				purchaser is exempt by operation of federal law. [35 ILCS
				120/2-5(16)]
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2090 - Sales to Railroad Companies

Current through Register Vol. 48, No. 28, July 12, 2024
When persons who are engaged in the business of selling
				  equipment, supplies or other tangible personal property sell any such tangible
				  personal property to railroad companies for use or consumption, such persons
				  are required to remit Retailers' Occupation Tax to the Department on their
				  gross receipts from such sales except when the sale qualifies for the rolling
				  stock exemption described in Section
				  130.340 of this
				  Part and in Section
				  150.310(a)(2)
				  of the Use Tax Regulations; or the sale is the tangible personal property to a
				  common carrier by rail which receives the physical possession of such property
				  in Illinois, and which transports such property, or shares with another common
				  carrier in the transportation of such property, out of Illinois on a standard
				  uniform bill of lading showing the seller of the property as the shipper or
				  consignor of such property to a destination outside Illinois for use outside
				  Illinois.