reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.120 - Factors Used by Remote Retailers in Determining if the Thresholds in Section 131.115 (a) of this Part are Met

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 "Gross Receipts" and "Separate Transactions" Defined. The following definitions
			 must be applied by a remote retailer when determining if it meets either of the
			 thresholds establishing tax remittance obligations:
1) "Gross Receipts" means
all the
			 consideration actually received for a sale.
(See 86 Ill. Adm. Code
			 130.401
			 for additional information regarding gross receipts.)
Subsection (b) of
			 this Section describes what kinds of transactions must be included or excluded
			 when determining whether the threshold based on gross receipts is
			 met.
2) "Illinois
			 Purchaser" means
a person in Illinois who, through a sale at retail,
			 acquires the ownership of tangible personal property for a valuable
			 consideration.
3)
			 "Entering into a Sale" occurs when a remote retailer has taken action that
			 binds it to a sale. This may occur even though the tangible personal property
			 that has been sold has not yet shipped to the purchaser.
EXAMPLE: On December 15, 2020, a remote retailer takes actions
				binding it to a sale that is scheduled for shipment on January 15, 2021. This
				sale must be included in the calculation used to determine the remote
				retailer's sales transactions for its initial lookback period under Section
				131.115(b)
				(i.e., the lookback period of January 1, 2020 through December 31,
				2020).
4) "Separate
			 Transactions" means sales transactions which are documented on separate
			 invoices, regardless of the manner in which the tangible personal property is
			 delivered to the purchaser.
EXAMPLE 1: A purchaser orders 12 items of clothing from a
				remote retailer. He receives an invoice confirming his order of 12 items.
				However, due to a back order, 3 of the clothing items are shipped separately
				from the other 9 items. Shipment of the 3 back-ordered items, even with a
				separate shipping invoice, is not considered a separate transaction because the
				original transaction was invoiced as one sale.
EXAMPLE 2: A purchaser places an order of home repair tools at
				8:00 a.m. from a remote retailer. She receives an invoice confirming her order
				at 8:15 a.m. At 2:00 p.m., the purchaser realizes she needs 5 other tools to
				complete the job, and orders these tools from the same remote retailer. The
				remote retailer confirms this order with a separate invoice. In this example,
				two different transactions have occurred. This is the case, even if the remote
				retailer sends all the ordered tools to the purchaser in one package.
EXAMPLE 3: A parent places an order with a remote retailer for
				care packages to be delivered to his or her son's dormitory at 8 scheduled
				intervals during the school year. Each delivery is separately invoiced. These
				are counted as 8 separate transactions.
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.130 - Marketplace Facilitators - General Provisions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Activities of Marketplace Facilitators
1)
Beginning January 1, 2021, a
			 marketplace facilitator means a person who, pursuant to an agreement with an
			 unrelated third-party marketplace seller, directly or indirectly through one or
			 more affiliates facilitates a retail sale by an unrelated third-party
			 marketplace seller by:
A)
Listing or advertising for sale by the marketplace seller in a
			 marketplace, tangible personal property that is subject to tax under ROTA;
			 and
B)
Either
			 directly or indirectly, through agreements or arrangements with third parties,
			 collecting payment from the customer and transmitting that payment to the
			 marketplace seller regardless of whether the marketplace facilitator receives
			 compensation or other consideration in exchange for its services.
Provision on a marketplace of functionality for connection to a payment
			 mechanism meets the requirements of this subsection
			 (a)(1)(B).
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.135 - Marketplace Facilitators - Determination of Obligation to Remit Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a)
Beginning January 1, 2021, a marketplace facilitator, as defined in
			 Section
			 131.101,
			 is considered a retailer engaged in the occupation of selling at retail in
			 Illinois for purposes of ROTA if
either of following thresholds is
			 met:
1)
The cumulative gross receipts
			 from sales of tangible personal property to purchasers in Illinois made through
			 the marketplace by the marketplace facilitator and by marketplace sellers are
			 $100,000 or more; or
2)
The marketplace facilitator and marketplace sellers selling through the
			 marketplace cumulatively enter into 200 or more separate transactions for the
			 sale of tangible personal property to purchasers in
			 Illinois.
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.140 - Factors Used by Marketplace Facilitators in Determining if Thresholds in Section 131.135 of this Part are Met

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 "Gross Receipts" and "Separate Transactions" Defined. The following definitions
			 must be applied by a marketplace facilitator when determining if it meets
			 either of the thresholds establishing tax remittance obligations:
1) "Gross Receipts" means all the
			 consideration actually received for a sale. (See 86 Ill. Adm. Code
			 130.401
			 for additional information regarding gross receipts.) Subsection (b) describes
			 what kinds of transactions must be included or excluded when determining
			 whether the threshold based on gross receipts is met.
2) "Illinois Purchaser" means
a
			 person in Illinois who, through a sale made over a marketplace, acquires the
			 ownership of tangible personal property for a valuable consideration.
[35
			 ILCS 120/1 ]
3) "Entering into a Sale" occurs when a
			 marketplace seller has taken action that binds it to a sale. This may occur,
			 even though the tangible personal property that has been sold has not yet
			 shipped to the purchaser.
EXAMPLE: On December 15, 2020, a marketplace seller takes
				actions binding it to a sale that is scheduled for shipment on January 15,
				2021. This sale must be included in the calculation used to determine the
				marketplace facilitator's sales transactions for its initial lookback period
				under Section
				131.135(b)
				(i.e., the lookback period of January 1, 2020 through December 31,
				2020).
4) "Separate
			 Transactions" means sales transactions that are documented on separate
			 invoices, regardless of the manner in which the tangible personal property is
			 delivered to the purchaser.
EXAMPLE 1: A purchaser orders 12 items of clothing from a
				marketplace seller. He receives an invoice confirming his order of 12 items.
				However, due to a back order, 3 of the clothing items are shipped separately
				from the other 9 items. Shipment of the 3 back-ordered items, even with a
				separate shipping invoice, is not considered a separate transaction because the
				original transaction was invoiced as one sale.
EXAMPLE 2: A purchaser places an order of home repair tools at
				8:00 a.m. from a marketplace seller. She receives an invoice confirming her
				order at 8:15 a.m. At 2:00 p.m., the purchaser realizes she needs 5 other tools
				to complete the job, and orders these tools from the same marketplace seller.
				The marketplace seller confirms this order with a separate invoice. In this
				example, two different transactions have occurred. This is the case, even if
				the marketplace seller sends all the ordered tools to the purchaser in one
				package.
EXAMPLE 3: A parent places an order with a marketplace seller
				for care packages to be delivered to his or her son's dormitory at 8 scheduled
				intervals during the school year. Each delivery is separately invoiced. These
				are counted as 8 separate transactions.
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.145 - Marketplace Facilitators - Obligations - Procedures - Hold Harmless Provisions

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Marketplace facilitators meeting either of the thresholds in Section
			 131.135(a)
			 are required to register with the Department, file returns and remit tax for
			 all sales made over the marketplace to Illinois purchasers, including their own
			 sales and sales made on behalf of marketplace sellers.
b)
A marketplace facilitator shall
			 certify to each marketplace seller:
1)
That the marketplace facilitator
			 assumes the rights and duties of a retailer under ROTA and all applicable local
			 retailers' occupation taxes administered by the Department with respect to
			 sales made by the marketplace seller through the marketplace;
			 and
2)
That the
			 marketplace facilitator will remit taxes imposed by the retailers' occupation
			 tax and all applicable local retailers' occupation taxes administered by the
			 Department for sales made through the marketplace.
[35 ILCS
			 120/2(d) ]
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.150 - Marketplace Sellers - Obligations - Procedures - Hold Harmless Provisions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as
			 otherwise provided in this Section, a marketplace seller is not liable for
			 State and local retailers' occupation taxes for sales of tangible personal
			 property sold to Illinois purchasers through a marketplace, provided that,
			 prior to its sales, it has obtained a certification from the marketplace
			 facilitator as established in Section
			 131.145(b).
b) A marketplace seller shall furnish to the
			 marketplace facilitator information that is necessary for the marketplace
			 facilitator to correctly remit tax on each sale made on its behalf over the
			 marketplace. The information may include a certification that an item being
			 sold is taxable, not taxable, exempt from taxation, or taxable at a specified
			 rate (for example, at either the general merchandise rate or the preferential
			 low rate of tax).
c) A marketplace
			 facilitator that relies in good faith on the information provided in subsection
			 (b) by a marketplace seller shall be relieved of liability for the tax on that
			 transaction. In this case, a marketplace seller is subject to audit on that
			 transaction and shall be liable for any resulting State and local retailers'
			 occupation taxes due.
d) Books and
			 Records.
A marketplace seller shall maintain books and records for all
			 sales made through a marketplace in accordance with Section 7 of ROTA.
[35 ILCS
			 120/2(e) ]
e) A marketplace seller that makes sales to
			 Illinois purchasers outside of a marketplace must examine its selling
			 activities to determine its tax liabilities (i.e., determine if it is a remote
			 retailer; an out-of-state seller with a physical presence required to collect
			 and remit Use Tax; or an Illinois retailer required to remit State and local
			 retailers' occupation tax). (See Section
			 131.115
			 and Illustration A.) It must separately register with the Department to report
			 and pay taxes incurred on these sales.
f) A marketplace seller that incurs tax
			 liability on sales made outside of a marketplace shall not include sales made
			 through a marketplace on the separate returns filed with the Department, and
			 shall not include any of its sales made through a marketplace when computing
			 any retailers' discount on its separately filed returns.
g)
If for any reason, the Department
			 is prohibited from enforcing the marketplace facilitator's duty to remit taxes,
			 the duty to remit those taxes remains with the marketplace seller, provided it
			 is otherwise required to remit taxes under ROTA or the Use Tax Act.
[35 ILCS
			 120/2(i) ]
h)
The Department is prohibited from
			 collecting State and local retailers' occupation taxes from both the
			 marketplace seller and the marketplace facilitator on the same
			 transaction
. [35 ILCS
			 120/2(h) ]
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.160 - Certified Service Providers - Obligations - Procedures - Hold Harmless Provisions

Current through Register Vol. 48, No. 28, July 12, 2024
a) A
			 certified service provider (CSP) is an agent of a remote retailer that performs
			 all of a remote retailer's sales tax functions, as outlined in the contract
			 between the Department and the CSP. These functions include the preparation and
			 filing of all required tax returns or amended returns, payment of tax, and
			 resolution of any notices or audits of the remote retailer. These functions do
			 not include remittance of Use Tax by the remote retailer on its own
			 purchases.
b) The software of a CSP
			 interfaces with a remote retailer's accounting system to:
1) Identify which products are
			 taxable;
2) Apply the appropriate
			 tax rate; and
3) Maintain a record
			 of the transaction
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.165 - Certified Automated Systems - Obligations - Procedures - Hold Harmless Provisions

Current through Register Vol. 48, No. 28, July 12, 2024
a) A
			 certified automated system (CAS) is software that is designed for or by a
			 remote retailer that wants to use certified tax calculation software but keep
			 the responsibility for filing returns and remitting tax in-house.
b) The software system of a CAS interfaces
			 with a remote retailer's accounting system to:
1) Identify which products are
			 taxable;
2) Apply the appropriate
			 tax rate;
3) Maintain a record of
			 the transaction; and
4) Determine
			 the amount of tax the remote retailer must report and pay to the
			 Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.180 - Application of Other Rules

Current through Register Vol. 48, No. 28, July 12, 2024
To avoid needless repetition, the substance and provisions of
				all Retailers' Occupation Tax Regulations (86 Ill. Adm. Code 130) shall apply
				to entities regulated by this Part, to the extent not in conflict with the
				provisions of this Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › ILLUSTRATION A - Leveling the Playing Field Retailer Flowchart

Current through Register Vol. 48, No. 28, July 12, 2024
Click here to view
				image
*If you are an Illinois retailer engaged in the occupation of
				making sales of tangible personal property in Illinois and you make sales over
				a marketplace, see the "YES" box for the treatment of those sales. If you are
				an Illinois retailer and do not make any sales over a marketplace, the
				provisions of this chart do not apply to you and you should handle your
				liability as you did prior to January 1, 2021.
Click here to view
				image
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.105 - Calculation of Tax Incurred by Servicemen - Threshold Determination of Cost Ratio

Current through Register Vol. 48, No. 28, July 12, 2024
a) On and after
				January 1, 1990, a serviceman may incur either Service Occupation Tax or Use
				Tax liability when transferring tangible personal property incident to retail
				sale of service. The type of tax liability incurred depends upon several
				factors. The single most important factor is determining the cost ratio between
				the annual aggregate cost of tangible personal property transferred incident to
				sales of service and the annual gross receipts from all sales of service.
If this cost ratio is 35% or greater (75% or greater in the
				  case of servicemen transferring prescription drugs or engaged in graphic arts
				  production), the serviceman is required to register and remit Service
				  Occupation Tax on his selling price, as explained in Section
				  140.106.
b) When the cost ratio is below
				35% (75% in the case of servicemen transferring prescription drugs or engaged
				in graphic arts production), the serviceman, in lieu of paying Service
				Occupation Tax on the selling price, has the following options:
1) From January 1, 1990 until December 31,
				1992, if the cost ratio is below 35% (or less than 75% in the case of
				servicemen transferring prescription drugs or engaged in graphic arts
				production), the serviceman may pay Use Tax on his cost price, if the
				conditions set out in Section
				140.108
				are met. However, on and after January 1, 1993, this option is not available if
				the serviceman is otherwise required to be registered as a retailer under
				Section 2a of the Retailers' Occupation Tax Act.
2) On and after January 1, 1993, if the cost
				ratio is below 35% (or 75% in the case of servicemen transferring prescription
				drugs or engaged in graphic arts production) and if the serviceman is otherwise
				required to be registered under Section 2a of the Retailers' Occupation Tax
				Act, the serviceman may pay Service Occupation Tax on his cost price, as
				explained in Section
				140.109.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.106 - When Cost Ratio is 35% or Greater, Service Occupation Tax Liability Is Incurred by Servicemen on Their Selling Price

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the cost ratio between the tangible
				personal property transferred incident to sales of service and the serviceman's
				total annual gross receipts from all sales of service is 35% or greater (75% or
				greater in the case of servicemen transferring prescription drugs or engaged in
				graphic arts production), the serviceman must register and remit Service
				Occupation Tax. Unless a lower rate is applicable (see Section
				140.101(b)
				), the Service Occupation Tax incurred is based upon 6.25 % of the selling
				price of the tangible personal property transferred incident to sales of
				service. A serviceman may determine "selling price" in the following ways:
1) Separately stated selling price. If the
				serviceman separately states the selling price of the tangible personal
				property transferred incident to service on billings to service customers, then
				his Service Occupation Tax liability is based on that separately stated selling
				price. However, in no event can the Service Occupation Tax liability be based
				on an amount less than the serviceman's cost price of the tangible personal
				property being transferred. (Section 3-10 of the Act)
2) Fifty percent base. If the serviceman's
				bill to the service customer does not separately state the selling price of the
				tangible personal property transferred, the serviceman's Service Occupation Tax
				liability is based on 50% of the entire customer bill. However, in no event can
				the Service Occupation Tax be based on an amount less than the serviceman's
				cost price of the tangible personal property being transferred. (Section 3-10
				of the Act)
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.110 - Example of Methods Used by Servicemen to Determine Liability

Current through Register Vol. 48, No. 28, July 12, 2024
An auto mechanic contracts to repair a customer's automobile.
				  In this example, the serviceman's entire bill to the customer is $500. Labor
				  costs account for $300 of the total, and the serviceman's cost price of parts
				  transferred totals $100. The selling price of the parts, if separately stated,
				  would be $200. The following chart represents the manner in which this
				  serviceman might incur tax under the different methods discussed in Sections
				  140.106,
				  140.108
				  and
				  140.109.
a) Registered Serviceman
Cost
Price
Selling
Price
Gross
Receipts
Service
Occupation
Tax Base
Separately Stated
$100
$200
$500
$200
(Selling price)
Not Separately Stated
$100
-0-
$500
$250
(1/2 of gross receipts)
De Minimis (paying SOT on cost price)
$100
$200
$500
$100
(Cost price)
b)
				De minimis serviceman not required to be registered as a retailer under Section
				2a of the Retailers' Occupation Tax Act.
Cost
Price
Selling
Price
Gross
Receipts
Service Occupation
Tax Base
$100
$200
$500
**
** (Not subject to Service Occupation Tax if not required to
				  be registered as a retailer under Section 2a of the Retailers' Occupation Tax
				  Act. Subject instead to Use Tax on $100, see Section 140.108.)
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.120 - Meaning of Serviceman

Current through Register Vol. 48, No. 28, July 12, 2024
Any person who sells tangible personal property as an
				  incident to a sale of service is a serviceman who is engaged in the business of
				  making sales of service within the meaning of the Act and upon whom a tax is
				  imposed under the Act. Among other things, the term "serviceman" includes a
				  person who repairs tangible personal property for users, except that this is
				  not true when a railroad, on a nonprofit basis, repairs cars for another
				  railroad at an interchange point in connection with the interchange of traffic.
				  Such repair activities by one railroad for another at interchange points in
				  connection with the interchange of traffic do not constitute a business of
				  making sales of service within the meaning of the Service Occupation Tax Act.
				  For sales of service in which the cost price of tangible personal property
				  transferred is less than 35% of the gross selling price, see Section
				  140.101
				  of this Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.124 - Commercial Distribution Fee Sales Tax Exemption

Current through Register Vol. 48, No. 28, July 12, 2024
a) Qualifications for exemption through June
				30, 2004. Beginning on July 1, 2003 through June 30, 2004, sales of certain
				motor vehicles are not subject to the tax imposed under this Part if they meet
				all of the following tests:
1) The motor
				vehicle qualifies as a second division motor vehicle under Section 1-146 of the
				Illinois Vehicle Code. First division motor vehicles, such as those motor
				vehicles that are designed for the carrying of not more than 10 persons, do not
				qualify for the exemption (See
				625 ILCS
				5/1-146.);
2) The motor vehicle has a gross vehicle
				weight in excess of 8,000 pounds; and
3) The motor vehicle is subject to the
				Commercial Distribution Fee imposed under Section 3-815.1 of the Illinois
				Vehicle Code. [35 ILCS
				115/2 ] The motor vehicle must be registered and
				remain registered in such a manner whereby it is subject to payment of the
				Commercial Distribution Fee imposed under Section 3-815.1 of the Illinois
				Vehicle Code [625 ILCS
				5/3-815.1] and such fee is actually paid for any
				period in which the fee is in effect.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.127 - Service Provided 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, computers and communications equipment utilized for any hospital purpose
				that are transferred incident to a sale of service to persons who lease those
				items to exempt hospitals are not subject to Service 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
				3-55 of the Service Occupation Tax Act [35 ILCS
				115/3-55 ] and was not reinstated until August 2,
				2001. The exemption is otherwise available, provided that:
1) the computers and communications equipment
				described above must be leased 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 86
				Ill. Adm. Code
				130.2007
				).
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.128 - 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,
				tangible personal property transferred incident to a sale of service to a
				lessor who leases that property to a governmental body is not subject to
				Service 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 3-55 of the Service Occupation Tax Act
				[35 ILCS
				115/3-55 ]. The exemption is otherwise available,
				provided that:
1) the property must be leased
				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 86 Ill. Adm. Code
				130.2007
				).
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart C - BASE OF THE TAX › Section 140.305 - Refunds by Serviceman

Current through Register Vol. 48, No. 28, July 12, 2024
Where a serviceman has made a sale of service and has paid
				  the applicable Service Occupation Tax to the Department, and then subsequently
				  refunds to his customer the amount paid by the customer for the service and
				  where such refund is the result of the return of tangible personal property
				  previously transferred to the customer as an incident to that sale of service,
				  the serviceman may take a deduction for the returned merchandise on his monthly
				  return.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart D - TAX RETURNS › Section 140.401 - Monthly Returns When Due - Contents of Returns

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as provided in Section
				140.405 of
				this Subpart, on or before the twentieth day of each calendar month, every
				serviceman registered with the Department is required to file a return with the
				Department covering the preceding month, stating the name of the person filing
				the return, his residence address, the address of his or her principal place of
				business and the address of his or her principal place of business in this
				State (if that is a different address) and each address from which he or she
				engages in that taxable business as a serviceman. When the serviceman has more
				than one business registered with the Department under separate registrations,
				that serviceman shall file separate returns for each separately registered
				business.
On and after January 1, 2018, with respect to servicemen
				whose annual gross receipts average $20,000 or more, all returns required to be
				filed pursuant to the Act shall be filed electronically. Servicemen who
				demonstrate that they do not have access to the Internet or demonstrate
				hardship in filing electronically may petition the Department to waive the
				electronic filing requirement.
[
				35 ILCS 115/9
				]
b) Information Required in
				Taxpayer's Return. A taxpayer's return shall disclose the following:
1) total tax base for the return
				period;
2) the amount of tax
				due;
3) the total of the tax and
				penalty; and
4) other information
				the Department may require on the tax form.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart D - TAX RETURNS › Section 140.405 - Annual Tax Returns

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the
				serviceman's average monthly tax liability to the Department does not exceed
				$200.00, the Department may authorize his returns to be filed on a quarter
				annual basis, with the return for January, February and March of a given year
				being due by April 20 of such year; with the return for April, May and June of
				a given year being due by July 20 of such year; with the return for July,
				August and September of a given year being due by October 20 of such year, and
				with the return for October, November and December of a given year being due by
				January 20 of the following year.
b) If the serviceman's average monthly tax
				liability to the Department does not exceed $50.00, the Department may
				authorize his returns to be filed on an annual basis, with the return for a
				given year being due by January 20 of the following year.
c) Such quarter annual and annual returns, as
				to form and substance, shall be subject to the same requirements as monthly
				returns.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart D - TAX RETURNS › Section 140.410 - Final Return

Current through Register Vol. 48, No. 28, July 12, 2024
Notwithstanding any other provision in the Act concerning the
				  time within which a serviceman may file his return, in the case of any
				  serviceman who ceases to engage in a kind of business which makes him
				  responsible for filing returns under the Act, such serviceman shall file a
				  final return under the Act with the Department not more than one month after
				  discontinuing such business.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart D - TAX RETURNS › Section 140.415 - Taxpayer's Duty to Obtain Form

Current through Register Vol. 48, No. 28, July 12, 2024
Returns shall be filed on forms prescribed and furnished by
				  the Department. It is the duty of the taxpayer to obtain forms, and failure to
				  obtain them will not be an excuse for failure to file returns when and as
				  required by law.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart D - TAX RETURNS › Section 140.420 - Annual Information Returns by Servicemen

Current through Register Vol. 48, No. 28, July 12, 2024
a) In addition to any other return required
				by the Act, each serviceman shall annually file an information return covering
				the preceding calendar year (or fiscal year if the serviceman files his Federal
				income tax returns on the basis of a fiscal year). Such annual return shall be
				filed with the Department on a form prescribed by the Department not more than
				30 days after the date set for the filing of such serviceman's Federal income
				tax return. Such annual return to the Department shall include a statement of
				gross receipts as shown by the serviceman's last Federal income tax return. If
				the total receipts of the business as reported in the Federal income tax return
				do not agree with the gross receipts reported to the Department of Revenue for
				the same period, the serviceman shall attach to his annual return a schedule
				showing a reconciliation of the 2 amounts and the reasons for the difference.
				The serviceman's annual return to the Department shall also disclose the cost
				of goods sold by the serviceman during the year covered by such return, opening
				and closing inventories of such goods for such year, cost of goods used from
				stock or taken from stock and given away by the serviceman during such year,
				payroll information of the serviceman's business during such year and any
				additional reasonable information which the Department deems would be helpful
				in determining the accuracy of the monthly, quarterly or annual returns filed
				by such serviceman as hereinbefore provided for in this Section.
b) The foregoing portion of this Section
				concerning the filing of an annual information return also does not apply to a
				serviceman who is not required to file an income tax return with the United
				States Government.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart D - TAX RETURNS › Section 140.425 - Filing of Returns for Serviceman by their Suppliers Under Certain Circumstances

Current through Register Vol. 48, No. 28, July 12, 2024
For greater simplicity of administration, it shall be
				  permissible for manufacturers, importers and wholesalers whose products are
				  sold by numerous servicemen in Illinois, and who wish to do so, to assume the
				  responsibility for accounting and paying to the Department all tax accruing
				  under the Act with respect to such sales, if the servicemen who are affected do
				  not make written objection to the Department to this arrangement and provided
				  that such arrangement in any given case is acceptable to the
				  Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart D - TAX RETURNS › Section 140.430 - Incorporation by Reference

Current through Register Vol. 48, No. 28, July 12, 2024
86 Ill. Adm. Code
				  130.525,
				  130.530,
				  130.535,
				  130.545
				  and
				  130.560
				  are incorporated herein by reference and made a part hereof insofar as such
				  Sections can be applied, without conflict, to comparable Service Occupation Tax
				  situations.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart F - REGISTRATION UNDER THE SERVICE OCCUPATION TAX ACT › Section 140.601 - General Information

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any
				supplier or serviceman maintaining a place of business in this State, who is
				required to collect or to pay to the Department (or who voluntarily does so)
				the Retailers' Occupation Tax, the Use Tax, the Service Occupation Tax or the
				Service Use Tax, is required to obtain only one Certificate of Registration
				from the Department. Such certificate is valid for the purposes of all of said
				taxes.
b) Every supplier and every
				serviceman maintaining a place of business in this State who does not already
				have such a certificate is required to apply for one to the Department upon a
				form furnished by the Department. (For information on what constitutes
				"maintaining a place of business in this State", see Subpart E of this
				Part.)
c) Each supplier and each
				serviceman who is registered with the Department must file with the Department
				a list of the names and addresses of all of his agents operating in this State
				and the location of any and all of his distribution or sales houses.
d) A supplier who is not required to register
				under the Act may voluntarily register with the Department as a tax collector.
				Such a supplier who voluntarily registers will then have all of the rights and
				duties of a supplier who is required to register under the Act, including the
				duty to collect and remit the tax.
e) Subpart G of the Regulations promulgated
				under the Retailers' Occupation Tax Act (86 Ill. Adm. Code 130) is applicable,
				and is incorporated herein by reference, except for provisions concerning
				special requirements pertaining to vending machines.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart G - BOOKS AND RECORDS › Section 140.701 - Books and Records - Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Every supplier required or authorized to
				collect the tax imposed under the Act, and every serviceman making sales or
				transactions that are subject to the Act, shall keep all sales invoices,
				purchase orders, merchandise records and requisitions, inventory records,
				credit memos, debit memos, bills of lading, shipping records, and all other
				records pertaining to any and all purchases and sales of goods whether or not
				the supplier or serviceman believes them to be taxable under the Act; and the
				supplier or serviceman shall also keep summaries, recapitulations, totals,
				journal entries, ledger accounts, accounts receivable records, accounts payable
				records, statements, tax returns, and other documents listing, summarizing or
				pertaining to those sales, purchases, inventory changes, shipments or other
				transactions.
1) When the records are
				voluminous, the records must be kept in chronological order, or in some
				systematic order that is in accordance with the taxpayer's regular bookkeeping
				system.
2) Records kept on punched
				cards, magnetic tape, and other mechanical or electronic record keeping methods
				are permitted, provided that the taxpayer makes available all necessary codes
				and equipment to enable the Department to audit those records, or provides a
				written transcript of those parts of the records that the Department wishes to
				examine.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart H - PENALTIES, INTEREST AND PROCEDURES › Section 140.801 - General Information

Current through Register Vol. 48, No. 28, July 12, 2024
All civil penalties, provisions concerning interest and
				  procedures (such as the making of assessments, the venue and mode of conducting
				  hearings, subpoenas, matters pertaining to judicial review and other procedural
				  subjects), together with statutes of limitation (except that these apply from
				  the date when the tax is due rather than from the date when the gross receipts
				  are received), are the same under the Service Occupation Tax Act as under the
				  Retailers' Occupation Tax Act (see Retailers' Occupation Tax Regulations, 86
				  Ill. Adm. Code 130, Subpart I and Ill. Rev. Stat. 1991, ch. 120, pars. 440-453)
				  [35 ILCS 120 ]. For information concerning civil penalties and interest see the
				  Uniform Penalty and Interest Act [35 ILCS 735 ] and 86 Ill. Adm. Code 700. For
				  information concerning criminal penalties, see Section 15 of the Service
				  Occupation Tax Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart I - WHEN OPINIONS FROM THE DEPARTMENT ARE BINDING › Section 140.901 - Written Opinions

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Taxpayers must not rely on verbal opinions from Department employees, but will
				be protected only if the opinion from the Department is in writing. For
				Department rules concerning the binding effect of Private Letter Rulings and
				General Information Letters, see 2 Ill. Adm. Code 1200.
b) For Department rules concerning the
				rescission of Private Letter Rulings, see 2 Ill. Adm. Code 1200.
c) As used in this Part, "Regulation" means
				any Department rule or regulation of general application, whether called a
				"Rule", a "Regulation", an "Article", a "Section", a "Part" or something
				else.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart J - COLLECTION OF THE TAX › Section 140.1001 - Payment of Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) A de minimis
				serviceman who incurs Use Tax as described in Section
				140.108
				of this Part, should pay the tax to his Illinois-registered suppliers on the
				cost price of the tangible personal property transferred to his service
				customers. However, if for any reason the serviceman does not pay tax to his
				supplier (for example, his supplier is an out-of-State supplier not registered
				to collect the tax), the serviceman is required to register to remit Use Tax to
				the Department.
b) In contrast,
				however, all servicemen paying Service Occupation Tax to the Department, as
				provided in Sections
				140.106
				and
				140.109
				of this Part, should provide suppliers with Certificates of Resale (see Subpart
				M of this Part) for the tangible personal property transferred to service
				customers incident to sales of service. Failure of servicemen remitting Service
				Occupation Tax to provide a properly executed Certificate of Resale creates a
				presumption that the sale is not for resale, and is therefore
				taxable.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart J - COLLECTION OF THE TAX › Section 140.1005 - Receipt to be Obtained for Tax Payments

Current through Register Vol. 48, No. 28, July 12, 2024
A serviceman who pays tax to his supplier may request and
				  obtain from the supplier a receipt for the amount of tax paid. The receipt may
				  be in the form of a separate itemization of the tax on the supplier's sales
				  invoice or other document covering the sale. The receipt should always indicate
				  the amount, description and selling price of the tangible personal property to
				  which the tax applies. Suppliers must furnish such receipts on
				  request.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart J - COLLECTION OF THE TAX › Section 140.1020 - Use of Bracket Chart

Current through Register Vol. 48, No. 28, July 12, 2024
Suppliers who are required to collect the tax from servicemen
				  under the provisions of the Act shall use the applicable tax collection bracket
				  chart as prescribed in Subpart D of the Use Tax Regulations (86 Ill. Adm. Code
				  150) for the rate of tax or combined taxes which apply to the
				  transaction.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart J - COLLECTION OF THE TAX › Section 140.1025 - Advertising in Regard to the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
A serviceman incurring Service Occupation Tax as described in
				  Section
				  140.106
				  or
				  140.109
				  of this Part, when required to collect the Service Use Tax from his service
				  customer, may not advertise or state, in any manner, that he (the serviceman)
				  will assume or absorb the tax. Likewise, the serviceman may not state in any
				  manner that the Service Use Tax will be refunded (except when a bona fide
				  refund is made when goods are returned, or when a claim for credit is made
				  under the provisions of the Act).
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart K - TIMELY MAILING TREATED AS TIMELY FILING AND PAYING - MEANING OF DUE DATE WHICH FALLS ON SATURDAY, SUNDAY OR A HOLIDAY › Section 140.1101 - Filing of Documents with the Department

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any report, claim, tax return, statement
				or other document required or authorized to be filed with or any payment made
				to the Department of Revenue, which document or payment is transmitted through
				the United States mail, will be deemed to have been filed with and received by
				the Department on the date shown by the post office cancellation mark stamped
				upon the envelope or other appropriate wrapper containing it. If mailed but not
				received by the Department, or if received, but the cancellation mark is
				illegible, erroneous or omitted, the document or payment will be deemed to have
				been filed on the date it was mailed if the sender establishes by competent
				evidence that the document or payment was deposited in the United States mail
				on or before the date due for filing. If the envelope or other wrapper bears a
				postmark made by a private postage meter in addition to a legible postmark made
				by the United States Postal Service, the postmark not made by the United States
				Postal Service shall be disregarded. In the event of the Department's failure
				to receive a document or payment required by law to be filed, such document or
				payment will be deemed to have been received by the Department on time if the
				sender files with the Department a duplicate within 30 days after written
				notification is given to the sender by the Department of its failure to receive
				such document or payment, provided proof is furnished that the original of the
				document was deposited in the United States mail on or before the date due for
				filing.
b) If any report, claim,
				tax return, statement, remittance or other document is sent by United States
				registered mail, certified mail or certificate of mailing, a record
				authenticated by the United States Post Office of such registration,
				certification or certificate shall be considered competent evidence that the
				report, claim, tax return, statement, remittance or other document was mailed,
				and the date of registration, certification or certificate shall be deemed to
				be the postmarked date made by the United States Postal Service.
c) If the due date for any return or other
				report or payment falls on Saturday, Sunday or a Holiday, such due date shall
				be considered to be the next business day either for the purpose of submitting
				such return or other report or payment by mail or for the purpose of submitting
				such return or other report or payment in person.
d) Reports, claims, tax returns, statements,
				remittances or other documents delivered by means other than the United States
				mail are considered to be filed on the date they are received by the
				Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart L - LEASED PORTIONS OF LESSOR'S BUSINESS SPACE › Section 140.1201 - When Lessee of Premises May File Return for Leased Department

Current through Register Vol. 48, No. 28, July 12, 2024
Where a serviceman or supplier leases to other persons, for
				  use in engaging in the business of selling services or of selling tangible
				  personal property to servicemen for resale as an incident to sales of service,
				  certain parts of the premises in which the lessor conducts his business, each
				  such lessee may file his own tax returns with the Department if he operates
				  under his own trade name, and a separate identity from the lessor is made known
				  to the general public.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart L - LEASED PORTIONS OF LESSOR'S BUSINESS SPACE › Section 140.1205 - When Lessor of Premises Should File Return for Leased Department

Current through Register Vol. 48, No. 28, July 12, 2024
If the lessee operates under the identity of the lessor, then
				  the lessor should account to the State for the lessee's tax on his Service
				  Occupation Tax return. If the lessor is required to be responsible for the
				  Service Occupation Tax of a leased department, and the lessor permits the
				  lessee to file his own Service Occupation Tax return, the Department of Revenue
				  reserves the right to proceed against the lessor or the lessee or both in the
				  event that the Service Occupation Tax liability incurred by virtue of the
				  operation of such leased department is not properly
				  discharged.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart L - LEASED PORTIONS OF LESSOR'S BUSINESS SPACE › Section 140.1210 - Meaning of "Lessor" and "Lessee" in this Regulation

Current through Register Vol. 48, No. 28, July 12, 2024
The word "lessor" shall include lessors, concessionaires and
				  licensors. The word "lessee" shall include lessees, concessioners and
				  licensees.