Illinois Administrative Code › Title 86 - REVENUE › Part 160 - SERVICE USE TAX › Section 160.105 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
For definitions of terms other than "Use", "Purchased from a
				Serviceman", "Purchaser", "Selling Price", and "Serviceman maintaining a place
				of business in this State", see Section
				140.201 of
				the Service Occupation Tax Regulations (86 Ill. Adm. Code 140.201).
"Act" means the Service Use Tax Act [35 ILCS 110 ].
"Purchased from a serviceman" means the acquisition of the
				ownership of, or title to, tangible personal property through a sale of
				service.
"Purchaser" means any person who, through a sale of service,
				acquires the ownership of, or title to, any tangible personal property.
"Selling price" means the consideration for a sale valued in
				money whether received in money or otherwise, including cash, credits and
				service, and shall be determined without any deduction on account of the
				serviceman's cost of the property sold, the cost of materials used, labor or
				service cost or any other expense whatsoever, but does not include interest or
				finance charges that appear as separate items on the bill of sale or sales
				contract nor charges that are added to prices by sellers on account of the
				seller's duty to collect, from the purchaser, the tax that is imposed by the
				Act. For purposes of calculating the serviceman's tax base, the selling price
				shall not be less than the cost price to the serviceman of the tangible
				personal property transferred to the service customer.
"Serviceman maintaining a place of business in this State", or
				any like term, means and includes any serviceman having or maintaining within
				this State, directly or by a subsidiary, an office, distribution house, sales
				house, warehouse or other place of business, or any agent or other
				representative operating within this State under the authority of the
				serviceman or its subsidiary, irrespective of whether such place of business or
				agent or other representative is located here permanently or temporarily, or
				whether such serviceman or subsidiary is licensed to do business in this State;
				soliciting orders for tangible personal property by means of a
				telecommunication or television shopping system (which utilizes toll free
				numbers) which is intended by the retailer to be broadcast by cable television
				or other means of broadcasting, to consumers located in this State; pursuant to
				a contract with a broadcaster or publisher located in this state, soliciting
				orders for tangible personal property by means of advertising which is
				disseminated primarily to consumers located in this State and only secondarily
				to bordering jurisdictions; soliciting orders for tangible personal property by
				mail if the solicitations are substantial and recurring and if the retailer
				benefits from any banking, financing, debtcollection, telecommunication, or
				marketing activities occurring in this state or benefits from the location in
				this State of authorized installation, servicing, or repair facilities; being
				owned or controlled by the same interests which own or control any retailer
				engaging in business in the same or similar line of business in this State;
				having a franchisee or licensee operating under its trade name if the
				franchisee or licensee is required to collect the tax under this Section;
				pursuant to a contract with a cable television operator located in this State,
				soliciting orders for tangible personal property by means of advertising which
				is transmitted or distributed over a cable television system in this State,or
				engaging in activities in Illinois that would, in the state in which the
				service business engaging in these activities is located, constitute
				maintaining a place of business in that state [35 ILCS
				110/2 ]. For the purpose of determining the state of
				location, the Department will look to the place at which the selling activity
				takes place.
"Use" means the exercise by any person of any right or power
				over tangible personal property incident to the ownership of that property, but
				does not include the sale or use for demonstration by him or her of that
				property in any form as tangible personal property in the regular course of
				business. "Use" does not mean the interim use of tangible personal property nor
				the physical incorporation of tangible personal property, as an ingredient or
				constituent, into other tangible personal property:
that is sold in the regular course of business; or
that the person incorporating the ingredient or constituent has
				undertaken at the time of purchase to cause to be transported in interstate
				commerce to destinations outside the State of Illinois.