reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart M - USE OF EXEMPTION CERTIFICATES › Section 140.1305 - When Purpose of Serviceman's Purchase is Unknown

Current through Register Vol. 48, No. 28, July 12, 2024
a) If a serviceman registered to remit
				Service Occupation Tax is unable to determine, at the time he purchases
				tangible personal property, how he will ultimately dispose of such property, he
				may certify to his supplier that he is buying all of such tangible personal
				property for resale and will thereafter account to the Department for the tax
				on disposing of such property. However, no such certificate shall be valid
				unless the serviceman who signs it has an active registration or resale number
				from the Department and includes such number in such certificate.
b) Upon the ultimate disposition of such
				tangible personal property by the serviceman, described in subsection (a) of
				this Section, he shall remit to the Department either Service Occupation Tax,
				including any applicable local taxes, on the selling or cost price of the
				tangible personal property transferred to service customers, or Use Tax for
				items consumed by him in conducting his business. Any tangible personal
				property that the serviceman sells "over-the-counter" is subject to Retailers'
				Occupation Tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart N - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 140.1405 - Disposition of Credit Memoranda by Holders Thereof

Current through Register Vol. 48, No. 28, July 12, 2024
a) Assignment of Credit Memoranda
1) Credit memoranda issued in accordance with
				the provisions of the Act may be assigned or transferred only after a request
				for that purpose is filed with the Department upon forms prescribed and
				furnished by it, and subject to the following conditions:
A) That the assignment is made to a person
				who is subject to the Retailers' Occupation Tax Act, Use Tax Act, Service
				Occupation Tax Act or Service Use Tax Act, the Municipal Retailers' Occupation
				Tax Act, the Municipal Use Tax Act, the Municipal Service Occupation Tax Act,
				the County Retailers' Occupation Tax Act, the County Supplementary Retailers'
				Occupation Tax Act, the County Service Occupation Tax Act, the County
				Supplementary Service Occupation Tax Act, the County Use Tax Act, the County
				Supplementary Use Tax Act, Section 4 of the Water Commission Act of 1985,
				subsections (b), (c), and (d) of Section 5.01 of the Local Mass Transit
				District Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional
				Transportation Authority Act;
B)
				that there is no proceeding pending to establish an unpaid liability against
				the assignor pursuant to notice given of the Department's proposal to assess an
				amount against him under said Acts, and
C) that there is no established assessment or
				admitted liability or interest or penalty unpaid by the assignor, under said
				Acts.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart N - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 140.1410 - Refunds

Current through Register Vol. 48, No. 28, July 12, 2024
In case the Department determines that the claimant is
				  entitled to a refund, such refund shall be made only from such appropriation as
				  may be available for that purpose. If it appears unlikely that the amount
				  appropriated would permit everyone having a claim allowed during the period
				  covered by such appropriation to elect to receive a cash refund, the Department
				  will make such refunds only in hardship cases (i.e., in cases in which the
				  claimant cannot use a credit memorandum). The two most likely situations where
				  this would be the case are the situation in which the claimant has discontinued
				  business and the situation in which the claimant will have a small volume of
				  liability to the Department in the foreseeable future, but receives a large
				  credit memorandum which it therefore might take the claimant a long time to
				  liquidate by using it to pay current taxes. In these instances, the claimant
				  probably would have to sell the credit memorandum at a loss in order to realize
				  anything from it within any reasonable period of time.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart N - CLAIMS TO RECOVER ERRONEOUSLY PAID TAX › Section 140.1415 - Interest

Current through Register Vol. 48, No. 28, July 12, 2024
a) Effective
				February 1, 1985 until January 1, 1994, any credit or refund that is allowed
				under the Act shall bear interest at the rate of 1% per month or fraction
				thereof from the date when the erroneous payment for which the credit or refund
				is being allowed was made to the Department until the credit memorandum is
				issued or the refund is paid. Interest shall not be paid on claims filed after
				the effective date of the Uniform Penalty and Interest Act and 86 Ill. Adm.
				Code 700 except such interest which is paid in accordance with the Act.
				(Section 3-9 of the Uniform Penalty and Interest Act) [35 ILCS
				735/3-9 ]
EXAMPLE: A taxpayer files a claim for credit with the
				  Department on January 15, 1994 for an overpayment of Service Occupation Tax.
				  The overpayment occurred in October 1992 when the taxpayer, an Illinois
				  serviceman, made a sale of service to an Illinois service customer, collected
				  service use tax and remitted service occupation tax to the Department. The sale
				  of service involved the repair of a piece of graphic arts machinery and
				  equipment. The serviceman determined that the repair should have been made
				  tax-free, refunded the tax to the service customer and filed a claim for credit
				  with the Department. The credit memorandum is issued on June 15, 1994. Interest
				  shall be paid at the rate of 1% per month for the period from October 1992
				  through December 31, 1993; and at the semiannually adjusted interest rate
				  imposed pursuant to the Uniform Penalty and Interest Act from January 1, 1994
				  through June 15, 1994, the date on which the credit memorandum was issued by
				  the Department.
b) No
				interest will be allowed if the overpayment is found by the Department to have
				been made deliberately for the purpose of drawing interest, or if the
				overpayment is ascertained not to have been bona fide for some other
				reason.
c) When a claim that is
				allowed is paid by means of a credit memorandum instead of by means of a cash
				refund, the claim will be considered to have been paid when the credit
				memorandum is issued by the Department to the claimant, and no interest will be
				allowed or paid by the Department for any period subsequent to that, even if
				the claimant does not use or assign the credit memorandum immediately after it
				is issued.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart O - DISCONTINUATION OF A BUSINESS › Section 140.1501 - Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) Where a
				serviceman under the Service Occupation Tax Act sells out or discontinues his
				business, such serviceman shall continue to file returns and pay tax with
				respect to selling prices received by the serviceman thereafter on account of
				taxable transactions which occurred up to the date upon which he sells out or
				discontinues his business. Such tax should be paid notwithstanding the fact
				that the serviceman is no longer engaged in business. For the purposes of
				filing a final return under Section
				140.410 of this
				Part, the taxpayer is not considered to have discontinued business as long as
				he continues to collect receipts on which he is required to remit tax to the
				Department.
b) For information
				concerning the requirements for complying with the Bulk Sales Law when a
				business is sold by one person to another, see Subpart P of this
				Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart P - NOTICE OF SALES OF GOODS IN BULK › Section 140.1601 - Requirements and Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a)
If any taxpayer, outside the usual course of
the taxpayer's
business, sells or transfers the major part of any one or more
				of:
1)
the stock of goods
				which
the taxpayer
is engaged in the business of selling,
				or
2)
the
				furniture or fixtures, the machinery and equipment, or the real property of any
				business that is subject to the provisions of the Act,
the purchaser or transferee of such assets shall, no
				  later than 10 business days prior to the sale or transfer, file a notice of
				  sale or transfer of business assets with the Department disclosing the name and
				  address of the seller or transferor, the name and address of the purchaser or
				  transferee, the date of the sale or transfer, a copy of the sales contract and
				  financing agreements, which shall include a description of the property sold,
				  the amount of the purchase price or a statement of other consideration for the
				  sale or transfer, the terms for payment of the purchase price and such other
				  information as the Department may reasonably require. If the purchaser or
				  transferee fails to file the above-described notice of sale with the Department
				  within the prescribed time, the purchaser or transferee shall be personally
				  liable for the amount owed
under this Section
by the seller or
				  transferor to the Department up to the amount of the reasonable value of the
				  property acquired by the purchaser or transferee. The seller or transferor
				  shall pay the Department the amount of tax, penalty and interest (if any) due
				  under the Act up to the date of the payment of tax. The seller or transferor,
				  or the purchaser or transferee, at least 10 business days before the date of
				  the sale or transfer, may notify the Department of the intended sale or
				  transfer and request the Department to audit the books and records of the
				  seller or transferor, or to do whatever else may be necessary to determine how
				  much the seller or transferor owes to the Department under the Act up to the
				  date of the sale or transfer. The Department shall take such steps as may be
				  appropriate to comply with such request under
this
				  Section
.
Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart Q - POWER OF ATTORNEY › Section 140.1701 - General Information

Current through Register Vol. 48, No. 28, July 12, 2024
Taxpayers under the Service Occupation Tax Act may appoint
				  other persons to act as their attorneys for the purpose of filing returns and
				  performing other acts under the Act in the same manner and to the same extent
				  as they may under Subpart R of the Retailers' Occupation Tax
				  Regulations.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.101 - Description of the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Use Tax is
				a privilege tax imposed on the privilege of using, in this State, any kind of
				tangible personal property that is purchased anywhere at retail from a
				retailer, as "retailer" is defined in the Use Tax Act.
b) The tax is not on the privilege of using
				any particular commodity, but on the privilege of using anything which happens
				to come within the general designation of "tangible personal
				property".
c) Tangible personal
				property includes the following:
1)
Computer software,
see also 86 Ill. Adm. Code
				130.1935;
2)
Photographs, negatives, and
				positives that are the product of photoprocessing, but not including products
				of photoprocessing produced for use in motion pictures for commercial
				exhibition
; and
3)
Beginning January 1, 2001, prepaid telephone calling arrangements shall
				be considered tangible personal property subject to the tax imposed under this
				Act regardless of the form in which those arrangements may be embodied,
				transmitted, or fixed by any method now known or hereafter developed
.
				[35 ILCS
				105/3 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.105 - Rate and Base of Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) The rate of
				the Use Tax after December 31, 1989, is
6.25 % of
				either the selling price or the fair market value, if any, of the tangible
				personal property involved
. [35 ILCS
				105/3-10 ]
1)
In all cases where property functionally used or consumed is the same
				as the property that was purchased at retail, then the tax is imposed on the
				selling price of the property.
[35 ILCS
				105/3-10 ]
2)
In all cases where property
				functionally used or consumed is a by-product or waste product that has been
				refined, manufactured, or produced from property purchased at retail, then the
				tax is imposed on the lower of the fair market value, if any, of the specific
				property so used in this State or on the selling price of the property
				purchased at retail.
[35 ILCS 105/3-10 ]
3)
For purposes of this Section "fair
				market value" means the price at which property would change hands between a
				willing buyer and a willing seller, neither being under any compulsion to buy
				or sell and both having reasonable knowledge of the relevant facts. The fair
				market value shall be established by Illinois sales by the taxpayer of the same
				property as that functionally used or consumed, or if there are no such sales
				by the taxpayer, then comparable sales or purchases of property of like kind
				and character in Illinois.
[35 ILCS
				105/3-10 ]
4)
If the property that is purchased
				at retail from a retailer is acquired outside Illinois and used outside
				Illinois before being brought to Illinois for use here and is nevertheless
				taxable under the Use Tax Act, the "selling price" on which the tax is computed
				shall be reduced by an amount which represents a reasonable allowance for
				depreciation for the period of such prior out-of-State use.
[35 ILCS
				105/3-10 ]
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.110 - How to Compute Depreciation

Current through Register Vol. 48, No. 28, July 12, 2024
a) For the
				purpose of determining the "reasonable allowance for depreciation" in the case
				of motor vehicles brought into the State before July 1, 2024, the Department
				will presume that the average life expectancy of a motor vehicle is 50 months
				and that the rate of depreciation that is therefore allowable is 2% of the
				selling price each month for such period of prior out-of-State use. A fraction
				of a month (including any period which is less than a month after the date of
				purchase) will be disregarded.
For motor vehicles brought into the State on or after July 1,
				  2024, for the purpose of determining the "reasonable allowance for
				  depreciation", the Department will presume that the average life expectancy of
				  a motor vehicle is 60 months and that the rate of depreciation that is
				  therefore allowable is 1.67% of the selling price each month for such period of
				  prior out-of-State use.
b)
				For purposes of this Section, a "month" does not mean a calendar month, but
				means a period of one month from the date of purchase. A fraction of a month
				(including any period which is less than a month after the date of purchase)
				will be disregarded. For example, if the motor vehicle was bought on the fifth
				day of one month, one month of depreciation will be considered to have accrued
				on the fifth day of the following month. In no case will depreciation be
				allowed for any period of time before the physical possession of the motor
				vehicle is delivered to the purchaser.
Example: A person purchases a car for $15,000 on July 2 and
				  does not bring the car into Illinois until September 1. The prior out-of-State
				  use is only 1 month since partial months are disregarded. The taxable base will
				  be reduced by $251 (1.67% of $15,000).
c) Effective January 1, 1968, as to tangible
				personal property other than motor vehicles brought into the State before July
				1, 2024, a "reasonable allowance for depreciation" is deemed by the Department
				to be the amount of depreciation determined by use of the straight line method
				of depreciation. For purposes of depreciation, the service life for tangible
				personal property other than motor vehicles brought into the State on or after
				July 1, 2024, shall be the useful life or recovery period allowed under federal
				law for like kind of property, or in the event of a settlement agreement, the
				useful life or recovery period agreed to in such settlement between the
				taxpayer and the Internal Revenue Service or the Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.115 - How To Determine Effective Rate

Current through Register Vol. 48, No. 28, July 12, 2024
a) For the purposes of the Use Tax Act, any
				tax liability incurred with respect to a sale of tangible personal property
				made in the regular course of business shall be computed by applying, to the
				selling price of such sale, the tax rate in effect as of the date of delivery
				of such property: Provided that if delivery occurs after the tax rate changes,
				in a transaction in which payments on the selling price were made by the
				purchaser before the date of the rate change and tax was paid by the purchaser
				to the seller or to the Department on such payments when they were made by the
				purchaser in accordance with 86 Ill. Adm. Code
				130.430
				at the rate which was in effect when such payments were made to the seller, no
				additional tax will be due or credit allowed because of delivery of the
				property occurring after the rate change.
b) Furthermore, in the case of sales of
				building materials to real estate improvement construction contractors for use
				in performing construction contracts for third persons, if such property is
				delivered to the contractor after the effective date of a rate increase but
				will be used in performing a binding construction contract which was entered
				into before the effective date of the increase and under which the contractor
				is legally unable to shift the burden of the tax rate increase to his customer,
				the applicable tax rate will be the rate which was in effect before the
				effective date of the rate increase. Before a supplier may deliver materials to
				a construction contractor after the effective date of a tax rate increase at
				the rate which was in effect prior thereto, the purchasing contractor must give
				such supplier a written, signed certification stating that specifically
				described materials are being purchased for use in performing a binding
				contract which was entered into before the effective date of the rate increase
				(specifying such date) and under which the contractor is legally unable to
				shift the burden of the tax rate increase to his customer, identifying the
				construction contract in question by its date and by naming the contractor's
				customer under the contract and by describing the nature of the construction
				work involved, and by giving the location of the job site where the
				construction contract is being performed or is to be performed.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.120 - Effective Date of New Taxes

Current through Register Vol. 48, No. 28, July 12, 2024
When something that has been exempted becomes liable as to
				  purchases that are made on and after some particular date, the date of purchase
				  for this purpose shall be deemed to be the date of the delivery of the
				  property. This is true even if such delivery is made under a contract that was
				  entered into before the effective date of the new tax.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.125 - Relation of Use Tax to Retailers' Occupation Tax

Current through Register Vol. 48, No. 28, July 12, 2024
The Use Tax Act complements the Retailers' Occupation Tax
				  Act. That is why the Use Tax is restricted to cases in which the property is
				  purchased at retail from a retailer.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.130 - Accounting for the Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the
				retailer is required or authorized to collect the Use Tax, then the purchaser
				must pay the tax to the retailer. However, the retailer's failure to collect
				the tax from the purchaser does not prevent the Department from collecting the
				tax directly from the purchaser whether the retailer's liability to remit the
				tax is to remit it in the form of Retailers' Occupation Tax or in the form of
				Use Tax. If the user purchases the tangible personal property at retail from a
				retailer, but does not pay the Use Tax to such retailer, the purchaser shall
				pay the Use Tax directly to the Department.
b) The retailer must remit the Use Tax which
				he collects to the Department. However, since the Retailers' Occupation Tax and
				Use Tax work together in a complementary manner, the retailer may first reduce
				the amount of Use Tax he must remit by the amount of Retailers' Occupation Tax
				(if any) which he is required to and does pay to the Department with respect to
				the same sale.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart A - NATURE OF THE TAX › Section 150.135 - How to Avoid Paying Tax on Use Tax Collected From the Purchaser

Current through Register Vol. 48, No. 28, July 12, 2024
a) Taxable
				receipts, on the basis of which Use Tax must be collected and remitted to the
				Department in transactions that are subject to the Use Tax despite being exempt
				from the Retailers' Occupation Tax because of interstate commerce, do not
				include charges which are added to prices on account of the seller's duty to
				collect the Use Tax.
b) If a
				retailer does not keep a detailed record for the return period of the Use Tax
				which he collects so as clearly to segregate these added charges from other
				receipts, it will at least in general be assumed that the Use Tax collected
				equals 6.25 % of the receipts received in such return period from taxable sales
				if the retailer collects the Use Tax in accordance with the bracket schedule
				prescribed by the Department in Section 150.Table A and states such tax
				separately from the selling price of the tangible personal property, as the
				retailer is required to do.
c) The
				retailer may eliminate the amount of Use Tax which he collects from the total
				receipts which he receives from taxable sales in arriving at his taxable
				receipts from such sales by subtracting the amount so collected from the
				purchaser as Use Tax, as shown by such retailer's books and records, or he may
				accomplish this result by subtracting, from the total receipts which he
				receives from taxable sales, the figure obtained by dividing such receipts by
				106.25 and
				multiplying the result by 6.25.
d)
				The seller will not be entitled to any deduction from total receipts because of
				having collected Use Tax from the purchaser if the seller, in collecting such
				tax, does not state it to the purchaser as a separate item from the selling
				price, unless the Department finds that it is not possible, under the facts of
				the case, for the retailer to collect the tax from the purchaser as a separate
				item from the selling price and that the retailer is therefore permitted to
				collect the tax by including it in the selling price of the tangible personal
				property. See Section
				150.1310
				of this Part for additional information regarding the circumstances under which
				tax need not be stated as a separate item.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.301 - Cross References

Current through Register Vol. 48, No. 28, July 12, 2024
a) For
				information concerning the definition of "use", see Section
				150.201 of
				this Part.
b) As was mentioned in
				Section
				150.101 of
				this Part, the user of tangible personal property is not subject to the Use Tax
				when the seller of such tangible personal property would not incur Retailers'
				Occupation Tax liability even though all elements of the sale occurred in
				Illinois.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.305 - Effect of Limitation that Purchase Must be at Retail from a Retailer to be Taxable

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				limitation in the Use Tax Act ("Act") to the effect that the tangible personal
				property must be purchased at retail from a retailer excludes, from the use
				tax, the use of tangible personal property produced by the user or acquired by
				the user by way of a gift or in some manner other than by means of a
				purchase.
b) However, although the
				user is not taxable on the value of the finished product which the user
				produces, such user is taxable on the purchase price of the tangible personal
				property that the user purchases and incorporates into such finished product
				which the user uses in this State, such purchase being a purchase at retail or
				a purchase for use.
c) Although the
				donee in a gift situation is not a taxable user, the donor who purchases the
				property and gives it away makes a taxable use of the property when making such
				gift. For example, if a cellular phone company gives cellular phones to its
				customers as part of a sales promotion, it owes use tax on its cost price of
				the phones that are given away. In this situation, the cellular company, as
				donor, is considered to have used items by giving them away.
d) The limitation that the purchase must be
				made at retail from a retailer for the Use Tax Act to apply also excludes, from
				the tax, the use of tangible personal property purchased from an isolated or
				occasional seller who is not engaged in the business of selling such tangible
				personal property. The exclusions discussed in this paragraph are necessary to
				make the Use Tax Act complementary to the Retailers' Occupation Tax
				Act.
e) The Use Tax Act does not
				apply to the rental payments made by a lessee to a lessor. However, except as
				is noted in Section 150.306 of this Part, the lessor
				is legally the user of the property and is taxable on the purchase price
				thereof.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.306 - Interim Use and Demonstration Exemptions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Interim Use Exemption
1) Except as otherwise provided in this
				subsection (a) and in subsection (c) of this Section, tangible personal
				property purchased by a retailer for resale, and used by the retailer or his or
				her agents prior to its ultimate sale at retail, is exempt from Use Tax,
				provided that the tangible personal property is of the same general type of
				property sold by that retailer and is carried as inventory on the books of the
				retailer or is otherwise available for sale during the interim use period.
				Beginning July 1, 2008, the following provisions apply to persons claiming the
				interim use exemption:
A) The interim use
				exemption may not be claimed for any item if any of the following circumstances
				exist:
i) title to the item is held by any
				party other than the retailer, except that title may be held by the retailer,
				the manufacturer of the item, or a captive finance company;
ii) the retailer elects to claim an Internal
				Revenue Code section 179 deduction on the item as a depreciable business asset;
				or
iii) if the item is leased by
				the retailer, the aggregate gross receipts received from all leasing of the
				item by the retailer exceeds the retailer's selling price of the
				item.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.315 - Non-resident Exemptions

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Use
				Tax does not apply to the use, in this State, of tangible personal property
				which is acquired outside this State by a nonresident individual who then
				brings the property to this State for use here, and who shall have used the
				property outside this State for at least 3 months before bringing the property
				to this State.
b) Where a business
				that is not operated in Illinois, but which does operate in another state, is
				moved to Illinois or opens up an office, plant or other business facility in
				Illinois, such business shall not be taxed on its use, in Illinois, of used
				tangible personal property, other than items of tangible personal property that
				must be titled or registered with the State of Illinois or whose registration
				with the United States Government must be filed with the State of Illinois,
				that the business bought outside Illinois and used outside Illinois in the
				operation of such business for at least 3 months before moving such used
				property to Illinois for use here.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.320 - Meaning of "Acquired Outside This State"

Current through Register Vol. 48, No. 28, July 12, 2024
"Acquired outside this State", as used in the various tax
				  exemption and tax credit provisions in the Use Tax Act, in addition to its
				  usual and popular meaning, shall include the delivery, outside Illinois, of
				  tangible personal property that is purchased in this State and delivered from a
				  point in this State to the point of delivery outside this
				  State.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.325 - Charitable, Religious, Educational, and Senior Citizens Recreational Organizations as Buyers

Current through Register Vol. 48, No. 28, July 12, 2024
a) The use tax
				shall not apply to the use of tangible
personal property purchased by a
				governmental body, corporation, society, association, foundation, or
				institution organized and operated exclusively for charitable, religious, or
				educational purposes, or by 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 paragraph only if the limited liability company is
				organized and operated exclusively for educational purposes.
[35 ILCS
				105/3-5(4) ]
b)
On and after July 1,
				1987,
none of the entities noted in subsection (a) shall be entitled
				to
make tax-free purchases
at retail
unless it has an
				active exemption identification number issued by the Department
.
				[35 ILCS
				105/3-5(4) ]
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.330 - Governmental Bodies as Buyers

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				Use Tax does not apply to purchases by governmental bodies. Effective March 17,
				1965, purchases by State-chartered banks and by Federal and State savings and
				loan associations for use are subject to the Use Tax. Effective February 1,
				1970, purchases by national banks for use are also subject to Use Tax, provided
				that such tax does not apply to property which is the subject matter of a
				written contract of purchase entered into by a national bank prior to September
				1, 1969.
b) On and after July 1,
				1987, no governmental bodies who would otherwise be able to make tax-free
				purchases at retail may make tax-free purchases at retail unless such
				governmental bodies have an active exemption identification number issued by
				the Department.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.331 - 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 purchased by persons who lease those items to exempt hospitals are not
				subject to Use 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 3-90 of the Use Tax Act [35 ILCS
				105/3-90 ] 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 86 Ill. Adm. Code
				130.2007
				).
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.332 - 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 Use 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 3-90 of the Use Tax Act
				[35 ILCS
				105/3-90 ] 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 86 Ill. Adm. Code
				130.2007
				).
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.335 - Game or Game Birds Purchased at Game Breeding and Hunting Areas or Exotic Game Hunting Areas

Current through Register Vol. 48, No. 28, July 12, 2024
Beginning July 20, 1999, Use Tax shall not apply to game or
				  game birds purchased at:
a) a game
				breeding and hunting preserve area licensed by the Department of Natural
				Resources (see Section 3.27 of the Wildlife Code [520 ILCS
				5/3.27 ]);
b) an exotic game hunting area licensed by
				the Department of Natural Resources (see Section 3.34 of the Wildlife Code
				[520 ILCS 5/3.34 ]);
				or
c) a hunting enclosure approved
				through rules adopted by the Department of Natural Resources.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.336 - Fuel Brought into Illinois in Locomotives

Current through Register Vol. 48, No. 28, July 12, 2024
Beginning July 29, 1999, Use Tax shall not apply to fuel
				  acquired outside this State and brought into this State in the fuel supply
				  tanks of locomotives engaged in freight hauling and passenger service for
				  interstate commerce.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart C - KINDS OF USES AND USERS NOT TAXED › Section 150.337 - Food, Drugs, Medicines and Medical Appliances When Purchased for Use by a Person Receiving Medical Assistance under the Illinois Public Aid Code (Repealed)

Current through Register Vol. 48, No. 28, July 12, 2024
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart D - COLLECTION OF THE USE TAX FROM USERS BY RETAILERS › Section 150.401 - Collection of the Tax by Retailers From Users

Current through Register Vol. 48, No. 28, July 12, 2024
a) Retailers who come within the definition
				of a "retailer maintaining a place of business in this State", as set out in
				Section
				150.201(i)
				of this Part and in Section 2 of the Use Tax Act, and other retailers who are
				authorized to collect the Use Tax, shall collect the tax from users by adding
				the tax to the selling price of tangible personal property, when sold for use,
				in the manner prescribed in this Regulation and in Section
				150.1305 of
				this Part.
b) Whenever possible and
				practicable, the Use Tax shall, when collected, be stated as a distinct item
				separate and apart from the selling price of the tangible personal property.
				However, for procedures for complying with this requirement under varying
				circumstances, see Section
				150.1305 of
				this Part.
c) It will be assumed
				that the seller is not collecting the tax if he does not state it as a separate
				item from the selling price of the tangible personal property, unless the
				circumstances are such, as described in Section
				150.1305 of
				this Part, as to warrant the public displaying of a sign stating that the
				selling price of the tangible personal property includes the Use Tax and the
				local Retailers' Occupation Tax when applicable.
d) In the case of sales of 13¢ or more
				through vending machines which do not provide for the collection of the tax as
				a separate item, it will be assumed that the retailer is collecting the tax by
				including it in the selling price of the tangible personal property if the
				retailer (through his advertising or other activities) does not do anything
				affirmatively to negative that assumption.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart D - COLLECTION OF THE USE TAX FROM USERS BY RETAILERS › Section 150.405 - Tax Collection Brackets

Current through Register Vol. 48, No. 28, July 12, 2024
Retailers subject to any of the local taxes administered by
				  the Department (e.g., Home Rule Municipal Retailers' Occupation Tax, Special
				  County Retailers' Occupation Tax for Public Safety, Non-Home Rule Municipal
				  Retailers' Occupation Tax, Home Rule County Retailers' Occupation Tax, Metro
				  East Mass Transit District Retailers' Occupation Tax, County Water Commission
				  Retailers' Occupation Tax, or Regional Transportation Authority Retailers'
				  Occupation Tax or a combination thereof) may use the charts in Table A to
				  determine tax for the appropriate combined rate of tax, or multiply the
				  transaction amount by the appropriate combined rate of tax, rounding up to the
				  nearest unit.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart D - COLLECTION OF THE USE TAX FROM USERS BY RETAILERS › Section 150.515 - Prohibition Against Retailer's Representing That He Will Absorb The Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) It is unlawful
				for any retailer to advertise or hold out or state to the public or to any
				purchaser, consumer or user, directly or indirectly, that the Use Tax or any
				part thereof will be assumed or absorbed by the retailer or that it will not be
				added to the selling price of the property sold, or if added that it or any
				part thereof will be refunded other than when the retailer refunds the selling
				price and tax because of the merchandise being returned to the retailer or
				other than when the retailer credits or refunds the tax to the purchaser to
				support a claim filed with the Department under the Retailers' Occupation Tax
				Act or under the Use Tax Act.
b)
				Any person violating any of the provisions of the law as explained in the
				preceding sentence is guilty of a misdemeanor and subject to the penalties
				provided in the Use Tax Act.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart E - RECEIPT FOR THE TAX › Section 150.601 - Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
When a retailer collects the Use Tax from the purchaser, the
				  retailer should give the purchaser a receipt for the tax so collected if the
				  purchaser demands such a receipt, except as to motor vehicles and other items
				  of tangible personal property which must be titled or registered under an
				  Illinois law, but which cannot be so titled or registered without a Use Tax
				  receipt or exemption determination from the Department. The receipt should show
				  the name and address of the retailer and the purchaser, the place and date of
				  the purchase, a brief description of the property involved, the amount of the
				  selling price (excluding the value of property taken in trade) on which the tax
				  is based, the amount of the tax and the date when the tax was
				  paid.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart F - SPECIAL INFORMATION FOR TAXABLE USERS › Section 150.710 - Procedure in Claiming Exemption from Use Tax

Current through Register Vol. 48, No. 28, July 12, 2024
When a purchaser does not incur any Use Tax liability with
				  respect to a particular transaction due to its status as an exempt entity
				  (e.g., the purchaser is a church, charity, school or governmental body that has
				  applied for and obtained an exemption identification number, see Section
				  130.2007
				  ), it must provide its exemption identification number to the retailer at the
				  time of making the purchase in order to document the exempt nature of the
				  transaction.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart F - SPECIAL INFORMATION FOR TAXABLE USERS › Section 150.715 - Receipt for Tax or Proof of Exemption Must Accompany Application for Title or Registration

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				purchaser of a motor vehicle, watercraft, aircraft, implement of husbandry or
				special mobile equipment if an optional title is being sought, should pay the
				entire Use Tax at the time of purchasing the property, even if the purchaser
				pays the selling price in installments, thus enabling the purchaser to secure
				the receipt necessary to show that he has paid the Use Tax in full when
				applying to the Secretary of State or Department of Natural Resources for a
				title, or to the Division of Aeronautics for a certificate of
				registration.
b) An application for
				an Illinois certificate of title for any motor vehicle or watercraft (or
				implement of husbandry or special mobile equipment if an optional title is
				being applied for), or for an Illinois certificate of registration for any
				aircraft, whether purchased in Illinois or outside Illinois, and even if
				previously titled or registered in another state, must be accompanied by either
				an exemption determination from the Department of Revenue showing that no tax
				imposed pursuant to the Use Tax Act is owed by anyone with respect to such
				property, or a receipt from the Department of Revenue showing that any tax so
				imposed has been paid.
c) In the
				absence of such a receipt for payment or determination of exemption from the
				Department, no certificate of title or certificate of registration, as the case
				may be, will be issued to such applicant.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart F - SPECIAL INFORMATION FOR TAXABLE USERS › Section 150.720 - Issuance of Title or Registration Where Retailer Fails or Refuses to Remit Tax Collected by Retailer from User

Current through Register Vol. 48, No. 28, July 12, 2024
No retailer's failure or refusal to remit tax hereunder shall
				  preclude a user, who has paid the proper tax to the retailer, from obtaining
				  his certificate of title or registration upon satisfying the Department that
				  such user has paid the proper tax (if tax is due) to the
				  retailer.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart F - SPECIAL INFORMATION FOR TAXABLE USERS › Section 150.725 - Direct Payment of Tax by User to Department on Intrastate Purchase Under Certain Circumstances

Current through Register Vol. 48, No. 28, July 12, 2024
If the user who would otherwise pay tax to the retailer wants
				  the transaction reporting return filed and the payment of tax or proof of
				  exemption made to the Department before the retailer is willing to take these
				  actions and such user has not paid the tax to the retailer, such user may
				  certify to the fact of such delay by the retailer and may (upon the Department
				  being satisfied of the truth of such certification) transmit the information
				  required by the transaction reporting return and the remittance for tax or
				  proof of exemption directly to the Department and obtain his tax receipt or
				  exemption determination, in which event the transaction reporting return and
				  tax remittance (if a tax payment was required) shall be credited by the
				  Department to the proper retailer's account with the Department, but without
				  the
				  1.75 %
				  discount being allowed. When the user pays the tax directly to the Department
				  as aforesaid, he shall pay the tax in the same amount and in the same form in
				  which it would be remitted if the tax had been remitted to the Department by
				  the retailer.
Illinois Administrative Code › Title 86 - REVENUE › Part 150 - USE TAX › Subpart F - SPECIAL INFORMATION FOR TAXABLE USERS › Section 150.730 - Direct Reporting of Use Tax to Department by Registered Retailers

Current through Register Vol. 48, No. 28, July 12, 2024
If the user who must remit the Use Tax directly to the
				  Department is also a registered retailer either under the Retailers' Occupation
				  Tax Act or under the Use Tax Act, he shall (except in the case of motor
				  vehicles, watercraft, aircraft, or implements of husbandry or special mobile
				  equipment for which such user intends to apply for an optional title, which are
				  to be reported separately) report the Use Tax information in the space provided
				  for that purpose on the return which he files as a retailer.