reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2095 - Sellers of Gasohol, Coal, Coke, Fuel Oil and Other Combustibles

Current through Register Vol. 48, No. 28, July 12, 2024
a) All persons who
				are engaged in the business of selling, or selling and delivering, coal, coke,
				fuel oil, briquettes, wood or other combustibles, whether in carload lots or in
				smaller quantities, to purchasers for use or consumption, are required to remit
				Retailers' Occupation Tax to the Department on their gross receipts from such
				sales.
b) This Section includes
				operators of mines, dealers, haulers and all other persons who engage in the
				business of selling combustibles to purchasers for use or
				consumption.
c) Persons who are
				merely employed by a seller or by a purchaser to haul or deliver combustibles
				to the purchaser, but who do not purchase and then sell the combustibles which
				they so haul or deliver, are engaged in rendering a service and not in the
				business of selling tangible personal property to purchasers for use or
				consumption. Consequently, such persons are not required to remit Retailers'
				Occupation Tax measured by their receipts from their rendering of such service,
				the tax being payable by the person who actually makes the sale for use or
				consumption. (For information concerning the deductibility or nondeductibility
				of transportation or delivery charges, see Section
				130.415
				of this Part.)
d) For information
				on fuel sold for use in vessels on rivers bordering Illinois, see Section
				130.315
				of this Part.
e) For information on
				sales of gasohol, see Section
				130.320
				of this Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2100 - Sellers of Feeds and Breeding Livestock

Current through Register Vol. 48, No. 28, July 12, 2024
a) Illustrations
The term "feed" includes salt, grains, tankage, oyster
				  shells, mineral supplements, vitamins, limestone and other generally recognized
				  animal feeds.
b) Sellers of
				Feeds - When Liable For Tax
The sale of feeds to a purchaser for use in feeding horses,
				  livestock or poultry that are used, employed or consumed, and the products (if
				  any) of which are used, employed or consumed, for purposes other than sale at
				  market, constitutes a "sale at retail" within the meaning of the Retailers'
				  Occupation Tax Act. In such case, gross receipts of the seller from this source
				  must be included in computing tax liability.
c) Sellers of Feeds - When Not Liable For Tax
Persons selling feeds to purchasers for feeding livestock or
				  poultry for marketing, or for producing dairy products or eggs for marketing,
				  are not making sales for use or consumption. Such sales of feeds are deemed to
				  be sales, for purposes of resale, of the property which, "as an ingredient or
				  constituent goes into and forms a part of tangible personal property
				  subsequently the subject of a 'sale at retail'".
d) Sellers of Breeding Livestock - When Not
				Liable For Tax
Farmers or producers of breeding livestock are not liable for
				  Retailers' Occupation Tax with respect to gross receipts realized from the sale
				  of bulls, stallions or other servicing animals for breeding purposes. In
				  addition, sellers of semen used for artificial insemination of livestock for
				  direct agricultural production are not liable for Retailers' Occupation Tax
				  with respect to gross receipts realized from such sales.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2110 - Sellers of Seeds and Fertilizer

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Sellers of Seeds - When Liable For Tax
When persons who are engaged in the business of selling seeds
				  sell seeds to purchasers who use the seeds in raising lawn grass, vegetables,
				  crops or other plants which they will use or consume and not resell, such
				  vendors are engaged in the business of selling tangible personal property to
				  purchasers for use or consumption and are required to remit Retailers'
				  Occupation Tax to the Department on their gross receipts from such
				  sales.
b) Sellers of Seeds
				- When Not Liable For Tax
Persons who sell seeds to purchasers who employ such seeds in
				  raising vegetables, crops or other plants for sale are selling seeds to
				  purchasers for purposes of resale and are not required to remit Retailers'
				  Occupation Tax measured by their gross receipts from such sales.
c) Definition of Fertilizer
The word "fertilizer", as used in this Section, means a
				  commodity which contains one or more substances to increase the available plant
				  food content of the soil and which becomes a part of the products grown
				  therein.
d) Sellers of
				Fertilizer - When Liable For Tax
When persons who are engaged in the business of selling
				  fertilizer sell fertilizer to purchasers who use such fertilizer on lawns, home
				  or private gardens, parks, boulevards and the like, such vendors are engaged in
				  the business of selling tangible personal property to purchasers for use or
				  consumption and are required to remit Retailers' Occupation Tax to the
				  Department on their gross receipts from such sales.
e) Sellers of Fertilizer - When Not Liable
				For Tax
Persons who sell fertilizer to purchasers who are regularly
				  engaged in the business of producing agricultural products for sale are
				  considered to be making sales for purposes of resale because, in such cases,
				  the fertilizer becomes a part of products which are subsequently sold. Such
				  sellers of fertilizer, therefore, are not required to remit Retailers'
				  Occupation Tax measured by their gross receipts from such
				  sales.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2120 - Suppliers of Persons Engaged in Service Occupations and Professions

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For
				Retailers' Occupation Tax
Suppliers of persons engaged in service occupations and
				  professions incur Retailers' Occupation Tax liability when, apart from engaging
				  in a service occupation or profession themselves, they sell tangible personal
				  property, such as tools, office equipment, fixtures, supplies, soap and other
				  tangible personal property to such persons, who retain and use or consume such
				  tangible personal property, or who give such property away apart from their
				  sale of other tangible personal property or service.
b) When Not Liable For Retailers' Occupation
				Tax
1) Persons who sell tangible personal
				property to purchasers who resell the property to others, either as an incident
				to engaging in a service occupation or profession, or apart from engaging in
				any such activity, are selling tangible personal property to purchasers for
				purposes of resale and do not incur Retailers' Occupation Tax liability when
				making such sales.
2) However,
				suppliers are required to collect the Service Occupation Tax from servicemen
				when selling them tangible personal property which they will retransfer as an
				incident to rendering services for users (see Subpart A of the Service
				Occupation Tax Regulations).
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2125 - Discount Coupons, Gift Situations, Trading Stamps, Automobile Rebates and Dealer Incentives

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Application of Tax
1) Application of
				Retailers' Occupation Tax
A retailer incurs Retailers' Occupation Tax on its
gross receipts
from sales, which is defined as the
total selling price of a sale
. Under Section 1 of the
				  Retailers' Occupation Tax,
selling price
means
the
				  consideration for a sale valued in money, whether received in money or
				  otherwise, including cash, credits, property, other than as provided
in the statutory definition,
and services.
[35 ILCS 120/1 ] The
				  source of the consideration received by a retailer is immaterial in determining
				  the gross receipts subject to tax. (See Ogden Chrysler Plymouth, Inc. v.
				  Bower
,
348 Ill.App.3d 944 (2004).) In holding that the
				  payments made by Daimler Chrysler Motor Corporation to an auto dealer as part
				  of a purchase of an automobile by an employee under an employee vehicle
				  purchase program were includable in gross receipts, the court stated that the
				  definitions of gross receipts and selling price "do not limit gross receipts or
				  consideration to that received only from the purchaser". See also
Keystone Chevrolet Co. v. Kirk,
69 Ill.2d 483 (1978).)
				  Consequently, if a retailer allows a purchaser a discount from the selling
				  price on the basis of a discount coupon, the retailer's gross receipts subject
				  to tax depends upon whether the retailer receives any reimbursement for the
				  amount of the discount. (See subsection (b).)
2) Application of Complementary Use Tax
Use Tax is generally imposed on the selling price of tangible
				  personal property purchased at retail. Since the Retailers' Occupation Tax Act
				  and the Use Tax work together in a complementary manner (see 86 Ill. Adm. Code
				  150.130 ), Section 2
				  of the Use Tax Act contains the same definition of "selling price" as that
				  found in Section 1 of the Retailers' Occupation Tax Act (i.e.,
selling
				  price means the consideration for a sale valued in money, whether received in
				  money or otherwise, including cash, credits, property, other than as
				  provided
in Section 2 of the Use Tax Act,
and
				  services
[35 ILCS 105/2 ]).
				  Whether discount coupons utilized by a purchaser for the purchase of tangible
				  personal property constitute consideration for a sale depends upon whether the
				  retailer receives any reimbursement for the amount of the discount. (See
				  subsection (b).) If the retailer receives full or partial reimbursement for the
				  amount of the discount, as explained in subsection (b), the amount of the
				  discount that is reimbursed is considered to be part of the selling price of
				  the sale. The purchaser incurs tax on the entire selling price, including the
				  amount of the discount paid to the retailer by the issuer of the
				  coupon.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2130 - Undertakers and Funeral Directors

Current through Register Vol. 48, No. 28, July 12, 2024
a) Funeral Directors - When Liable For Tax
1) A funeral director is engaged in the
				business of selling tangible personal property to purchasers for use or
				consumption when he sells such items of tangible personal property as caskets,
				grave vaults, grave clothing and flowers to purchasers for use or consumption,
				and he is required to remit Retailers' Occupation Tax to the Department on his
				gross receipts from such sales. This is true even though he makes such sales as
				a part of a funeral.
2) In the
				absence of invoices and other books and records disclosing a different retail
				price, the Department will presume that the funeral director's retail selling
				price of a casket is not less than double the price at which the casket was
				purchased by such funeral director.
3) In the absence of invoices and other books
				and records disclosing a different retail price, the Department will presume
				that a funeral director's retail selling price of grave clothing, vaults,
				flowers and other tangible personal property is not less than the retail price
				of similar property when it is sold "over-the-counter" apart from the rendering
				of undertaking services.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2135 - Vending Machines

Current through Register Vol. 48, No. 28, July 12, 2024
a) Vending
				Machine Sales - To Whom Taxable
Except as provided in subsection (e) of this Section, where
				  tangible personal property is sold to users or consumers by means of vending
				  machines, the person owning the property contained in such vending machines
				  makes final sales of such property for use or consumption and becomes liable
				  for Retailers' Occupation Tax.
b) When Owner of Establishment is Taxable
When vending machines are placed in an establishment, the
				  person operating such establishment sometimes owns the articles sold through
				  the vending machines and makes collection of the coins deposited in the
				  machines in payment for articles so sold. Under such conditions, such person
				  must report and pay the tax measured by his gross receipts from sales made
				  through such vending machines.
c) When Owner of Establishment is Not Taxable
However, if the person operating such establishment has no
				  control over or right of access to the articles in vending machines located on
				  his premises, and if he has no access to the gross receipts in such machines
				  and no right to remove such receipts without the consent of the owner of such
				  machines, he will not be considered to be the owner of the articles sold
				  through such vending machines and so will not be the person who incurs
				  Retailers' Occupation Tax liability with respect to such vending machine
				  sales.
d) When Person Other
				Than Owner of Establishment is Taxable
When someone other than the owner of the establishment owns
				  the property that is sold through the vending machines, such owner of such
				  property is liable for tax measured by his gross receipts from such sales,
				  without deducting from such receipts any amounts paid as commission.
e) Exemption for Bulk Sales of
				Merchandise From Vending Machine
Effective July 27, 1971 through December 31, 2001, the sale
				  of merchandise from a bulk vending machine for 1 is exempt from the Retailers'
				  Occupation Tax. On and after January 1, 2002, the sale of merchandise from a
				  bulk vending machine for 50 or less is exempt from the Retailers' Occupation
				  Tax. Prior to January 1, 2002, "bulk vending machine" means a nonelectrically
				  operated vending machine, containing unsorted confections, nuts or other
				  merchandise which, when a coin of a denomination not larger than 1 is inserted,
				  are dispensed in equal portions, at random and without selection by the
				  customer. On and after January 1, 2002, "bulk vending machine" means a vending
				  machine, containing unsorted confections, nuts, toys, or other items designed
				  primarily to be used or played with by children which, when a coin or coins of
				  a denomination not larger than $0.50 are inserted, are dispensed in equal
				  portions, at random and without selection by the customer. (Section 1 of the
				  Act)
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2140 - Vendors of Curtains, Slip Covers and Other Similar Items Made to Order

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For
				Tax
1) Persons who engage in the business of
				selling portieres, drapes, curtains, marquee curtains, slip covers, tents,
				tarpaulins and other similar items incur Retailers' Occupation Tax liability
				when selling the items (with or without installation by the seller) to
				purchasers for use or consumption and not for resale whether the items are sold
				as stock or standard items or whether the seller produces the items on special
				order for the purchaser.
2) The
				same is true when custom-made Venetian blinds, window shades, awnings, screen
				doors, window screens, storm doors and storm windows are sold at retail
				"over-the-counter" without installation by the seller as a construction
				contractor under Section
				130.1940(c)
				of this Part. This is true because the items, when produced on special order,
				serve substantially the same function as stock or standard items of tangible
				personal property that is sold at retail.
3) When sellers permanently affix tangible
				personal property to real estate, they act as construction contractors and
				incur Use Tax rather than Retailers' Occupation Tax. (For further information
				regarding the sales tax liabilities of construction contractors, see the
				Department's regulations on Construction Contractors and Real Estate Developers
				at 86 Ill. Adm. Code
				130.1940
				and Sales to Construction Contractors, Real Estate Developers and Speculative
				Builders at 86 Ill. Adm. Code
				130.2075.)
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2145 - Vendors of Meals

Current through Register Vol. 48, No. 28, July 12, 2024
a) Vendors of
				Meals - When Liable For Tax
1) Persons engaged
				in the business of selling meals to purchasers for use or consumption incur
				Retailers' Occupation Tax liability on their receipts from those sales. It is
				immaterial that no profit is realized from the operation of this type of
				business if the seller is engaged in a commercial enterprise, or if the seller
				engages in activities that make him/her taxable under the terms of Section
				130.2005
				of this Part. It is also immaterial that the class of purchasers may be a
				limited one, such as the employees of a particular employer who operates a
				cafeteria or other dining facilities for the benefit of his/her
				employees.
2) Subsection (a)(1)
				includes, but is not limited to, the following types of vendors:
A) hotels;
B) restaurants;
C) caterers;
D) boarding houses;
E) concessionaires;
F) nonprofit service organizations and
				institutions to the extent indicated in Section
				130.2005(a),
				(b) and (c) of this Part, and similar
				enterprises when conducted with a view to profit to the extent indicated in
				Section
				130.2005(o)
				of this Part;
G) employers who
				operate dining facilities for the benefit of their employees, except to the
				extent noted in Section
				130.2005(b)
				of this Part; and
H) sellers of
				food and beverages, delivered in Illinois to airlines, for use in serving
				passengers on aircraft without a separate charge for the food or beverages
				being made by the airline, regardless of whether the airline may serve the food
				and beverages in Illinois or outside Illinois; sales of meals to airlines for
				use on their aircraft in serving crews, where the cost is deducted from a food
				allowance, are nontaxable sales for resale, but if the meals are delivered to
				the airline in Illinois, the airline incurs Retailers' Occupation Tax liability
				on its receipts (consideration in the form of compensation for service
				rendered) from reselling the meals to crews, regardless of whether the aircraft
				is in Illinois or outside Illinois when it serves the meals to its
				crew.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2150 - Vendors of Memorial Stones and Monuments

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For Tax
1) Persons who engage in the business of
				selling monuments, grave markers and the like to purchasers for use or
				consumption and not for resale incur Retailers' Occupation Tax liability on
				their receipts from such sales whether such items are sold as stock or standard
				items, or whether such items are produced on special order by the seller for
				the purchaser. Such items, when produced on special order, serve substantially
				the same function as stock or standard items that are sold at retail.
2) For information concerning the taxability
				or exemption of the seller's receipts from additional special service charges,
				such as lettering or installing the item for the purchaser, see Section
				130.450
				of this Part.
3) Vendors of
				memorial stones and monuments also incur Retailers' Occupation Tax liability
				when they sell wreaths, flowers, floral or other grave blankets or other
				tangible personal property at retail. This is true even though such vendors
				make such things as wreaths, bouquets, floral and other grave blankets on
				special order because such items have commercial value.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2155 - Tax Liability of Sign Vendors

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Persons who sell signs may incur a Retailers' Occupation Tax, Service
				Occupation Tax or Use Tax liability, depending upon the circumstances of the
				sale.
b) When Liable for Retailers'
				Occupation Tax
1) Persons who engage in
				selling signs at retail incur Retailers' Occupation Tax liability
				notwithstanding the fact that the signs have use or value (other than salvage
				value) only to the purchaser, if such signs are not produced on special order
				for the purchaser. Persons who engage in selling, at retail, signs which have
				commercial value (i.e., value to persons other than the purchasers thereof)
				incur Retailers' Occupation Tax liability when making such sales, even if such
				signs are produced on special order for the purchaser.
2) Examples
A) Signs that spell out "parking",
				"conference room", "real estate", and the like, but do not spell out the name
				of the purchaser nor the brand name of the purchaser's product and that are not
				otherwise similarly individualized have commercial value within the meaning of
				this Section. Signs that spell out "conference room" that also have the room
				number specific to a particular building do not have commercial value within
				the meaning of this Section.
B)
				Computerized signs that can be programmed to spell out anything that the
				purchaser inputs have commercial value unless the casing of the sign has been
				individualized with the name of the purchaser, the brand name of the
				purchaser's product, or otherwise individualized in a similar manner. For
				example, computerized banner signs that can be programmed to spell out messages
				and that also permanently spell out a store's name on the casing surrounding
				the computerized portion of the sign have no commercial value.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2156 - Vendors of Steam

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable
				for Retailers' Occupation Tax
Persons who engage in the business of selling steam to
				  purchasers for use or consumption and not for resale, incur Retailers'
				  Occupation Tax liability on their receipts from such sales. For example, when
				  steam heat energy is transferred to the purchaser and the condensate, which
				  results when the steam loses its heat, is not returned to the seller of the
				  steam heat energy, then Retailers' Occupation Tax liability is incurred.
b) When Not Liable for Retailers'
				Occupation Tax
Persons who are engaged in the business of transferring heat
				  energy to purchasers using steam as the vehicle for that transfer, do not incur
				  Retailers' Occupation Tax liability so long as no tangible personal property is
				  transferred to the purchaser. This would be the case, for example, where the
				  condensate, which results when the steam loses its heat, is returned to the
				  seller.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2160 - Vendors of Tangible Personal Property Employed for Premiums, Advertising, Prizes, Etc

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For
				Retailers' Occupation Tax
1) Persons engaged
				in the business of selling tangible personal property to purchasers who give
				such property away for premiums, advertising, prizes or for any other reason,
				apart from their sale of other tangible personal property or service, are
				engaged in the business of selling tangible personal property at retail and are
				liable for Retailers' Occupation Tax when making such sales.
2) For example, the sale of blotters or
				calendars to a dealer who gives such items to others as part of a general
				goodwill, sales promotion or advertising campaign, apart from his sale of other
				tangible personal property or service, is a sale of the blotters or calendars
				at retail to such dealer. Other examples include posters, coffee mugs, pens,
				bumper stickers, and pins.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.2170 - Warehousemen

Current through Register Vol. 48, No. 28, July 12, 2024
a) When Liable For
				Tax
In cases in which warehousemen hold themselves out to the
				  public as being engaged in the business of selling, to purchasers for use or
				  consumption, secondhand furniture or other tangible personal property to which
				  they have acquired title, such warehousemen, when they sell any such tangible
				  personal property to purchasers for use or consumption, incur Retailers'
				  Occupation Tax liability.
b) When Not Liable For Tax
1) Warehousemen are engaged primarily in the
				business of moving, storing, packing and shipping tangible personal property
				belonging to other persons, and such activities constitute engaging in a
				service occupation. To the extent to which warehousemen engage in such service
				occupation, they are not engaged in the business of selling tangible personal
				property to purchasers for use or consumption within the meaning of the Act and
				are not required to remit Retailers' Occupation Tax measured by any of their
				receipts from such activities.
2)
				When warehousemen, in order to satisfy warehousemen's liens for claims on
				account of moving, storage, or other service charges which have accrued, sell
				at auction tangible personal property belonging to other persons who are known
				or disclosed to the purchaser, such warehousemen are acting merely as agents
				for the owners of such property and are not themselves making sales within the
				meaning of the Act.
3) In case any
				person whose property is being sold by a warehouseman to a purchaser for use or
				consumption in order to satisfy a warehouseman's lien as described in
				subsection (b)(2) of this Section is engaged in the business of selling that
				type of tangible personal property to purchasers for use or consumption, the
				tax must be paid by the person whose property is thus sold.
4) For the status, under the Act, of agents
				who act for unknown or undisclosed principals, see Section
				130.1915
				of this Part.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2500 - Direct Payment Program

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Effective July 1, 2001, a Direct Payment Program is established. Applicants who
				have been approved to participate in the Direct Payment Program will be issued
				a Direct Pay Permit (permit) by the Department, which participants may provide
				to retailers. Use of the permit relieves the permit holder from paying Use Tax
				(including any local occupation tax reimbursements of taxes administered by the
				Department) to the retailer at the time of purchase of qualifying tangible
				personal property. By using the permit, the permit holder voluntarily agrees to
				assume the liabilities of the retailer to report and remit Retailers'
				Occupation Tax (including any local occupation taxes administered by the
				Department) directly to the Department as set forth in
				130.2510(d)
				of this Part on those sales.
b)
				Beginning July 1, 2001, retailers who are provided with a permit from a permit
				holder purchasing qualifying tangible personal property are relieved of their
				obligation to remit the Retailers' Occupation Tax (including any local
				occupation taxes administered by the Department) incurred on the sale of that
				qualifying tangible personal property. Retailers who are presented with permits
				are also relieved of the obligation to collect Use Tax (including any local
				occupation tax reimbursements of taxes administered by the Department) from the
				permit holder. Retailers who make sales to permit holders who present their
				permits must report those sales on their sales and use tax return (Form ST-1).
				The retailer must show these transactions as exempt sales on Line 16 (Other) of
				his Form ST-1 Worksheet for Line 2. The exemption must be identified as "direct
				pay".
c) Proper use of Direct Pay
				Permit
1) In order to be relieved of his
				obligation to pay tax at the time of purchase of qualifying tangible personal
				property, the permit holder must provide the retailer with a copy of the
				permit, unless the retailer already has a copy of that permit on
				file.
2) Once the permit holder
				uses his permit to be relieved of paying tax to a particular retailer, he must
				use that permit for all of his purchases of qualifying tangible personal
				property from that retailer as long as the permit is valid.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2505 - Qualifying Transactions, Non-transferability of Permit

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Direct Payment Program shall be
				limited to taxes paid under the Retailers' Occupation Tax Act, the Use Tax Act,
				and any local occupation tax acts administered by the Department that would be
				incurred on a retail sale for which a Direct Pay Permit was provided. Any
				transaction subject to the Service Occupation Tax Act or Service Use Tax Act
				does not qualify under the direct pay provisions.
b) Permit holders who voluntarily assume the
				liability for Retailers' Occupation Tax, Use Tax, and any local occupation
				taxes administered by the Department incurred on the sales of qualifying
				tangible personal property for which they have provided a Direct Pay Permit are
				subject to the same rights, remedies, privileges, immunities, powers, and
				duties, and are subject to the same conditions, restrictions, limitations,
				penalties, and definitions of terms and employ the same modes of procedure as
				are prescribed for retailers under the Retailers' Occupation Tax Act. For
				example, if a permit holder fails to timely file the proper return or make the
				proper payment of tax, that permit holder is not entitled to the
				1.75 %
				vendor discount applicable to the sales reported on that return and is subject
				to penalties and interest under the Uniform Penalty and Interest Act [35 ILCS
				735 ].
c) Qualifying Tangible
				Personal Property. Tangible personal property means tangible personal property
				that, when purchased at retail, would be subject to tax under the Retailers'
				Occupation Tax, Use Tax, and any local occupation taxes administered by the
				Department. Qualifying tangible personal property does not include food or
				beverages, or tangible personal property required to be titled or registered
				with an agency of federal or state government.
d) Non-transferability of Permit. Direct Pay
				Permits cannot be assigned or transferred. Only the person to whom the Direct
				Pay Permit was issued by the Department may use that permit as described in
				this Subpart. For example, a construction contractor cannot use the Direct Pay
				Permit of the person contracting for his services in making purchases pursuant
				to the contract. When restructuring a business, the permit is not transferable
				to the new business. A new permit must be issued. See Section
				130.2515(c)
				of this Subpart regarding application for permit.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2510 - Permit Holder's Payment of Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) If a sale by the retailer of the
				qualifying tangible personal property would not be subject to tax, then the
				permit holder does not have to remit tax on that purchase to the Department.
				For example, a permit holder purchasing exempt manufacturing machinery and
				equipment does not have to remit tax on that purchase to the
				Department.
b) However, if the
				retailer of the qualifying tangible personal property is subject to tax
				(including any local occupation taxes administered by the Department), then the
				permit holder assumes the liability for the payment of that tax, regardless of
				whether the permit holder would have been liable for Use Tax (including any
				local occupation tax reimbursements administered by the Department).
1) For example, units of local government
				cannot impose local occupation taxes upon insurance companies. (See
				215 ILCS
				5/415.) However, if an insurance company uses its
				Direct Pay Permit, it voluntarily accepts the liability of the retailer and
				becomes liable for all local occupation taxes administered by the Department
				that are imposed on the retailer regarding that purchase.
2) Another example is a retailer making a
				sale to a federal credit union that presents a Direct Pay Permit for the
				purchase of qualified tangible personal property. In that instance, the
				retailer incurs Retailers' Occupation Tax (including any local occupation taxes
				administered by the Department) on that sale even though the federal credit
				union is not obligated to pay Use Tax on that purchase. (See
				12 USC
				1768.) If the federal credit union uses its
				Direct Pay Permit, it voluntarily accepts the liability of the retailer and
				becomes liable for all taxes administered by the Department that are imposed on
				the retailer regarding that purchase.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2515 - Application for Permit

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Applicants must apply on a form prescribed by the Department.
b) Applicants who are not already registered
				with the Department as a retailer under this Part must register with the
				Department prior to submitting an application for participation in the
				program.
c) The application must
				contain the following information:
1)
				Applicant's name;
2) Applicant's
				address;
3) The location of the
				places of business for which the applicant intends to make direct payment of
				tax;
4) The applicant's Illinois
				business tax account numbers;
5)
				Documentation describing the applicant's reason for seeking participation in
				the Direct Payment Program;
6) The
				description of the computer and accounting system used by the
				applicant;
7) Other information the
				Department may reasonably require.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2520 - Qualification Process and Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
Applicants must comply with the following requirements in
				  order to qualify for a Direct Pay Permit.
a) Applicants must demonstrate their ability
				to comply with the State's sales and use tax laws, including reporting and
				payment requirements. The applicant must provide a written description of the
				accounting systems that will be used by the applicant and demonstrate that the
				accounting systems will reflect the proper amount of tax due and will meet the
				requirements of Section
				130.805
				of this Part.
b) Applicants must
				have a valid business purpose for requesting a Direct Pay Permit and must
				demonstrate how direct payment will benefit tax compliance. For example, the
				following business purposes would be considered valid:
1) Provide for the reduction of
				administrative work in any or all of the following:
A) Collecting the tax;
B) Calculating the amount of tax;
C) Verifying the amount of tax;
D) Remitting the correct amount of tax;
				or
E) Determining
				taxability;
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2525 - Application Review

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				Department shall review all applications to determine compliance with
				qualification requirements. The review of applications shall be conducted in a
				timely manner so that applicants receive notification of authorization, denial
				or request for additional information within 90 days after the date the
				Department receives the application.
b) If additional documentation is required,
				the Department shall make a written request to the applicant prior to the end
				of the 90-day period.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2530 - Recordkeeping Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
In accordance with Sections
				  130.801 and
				  130.805
				  of this Part, holders of Direct Pay Permits shall maintain all records
				  necessary to determine the correct liability for all applicable taxes.
				  Retailers who are presented with copies of Direct Pay Permits must maintain
				  those copies in their books and records. All required records must be made
				  available on the request of the Department or its authorized
				  representatives.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › Section 130.2535 - Revocation and Withdrawal

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				Department may revoke a Direct Pay Permit for a violation of any of the
				provisions of the Retailers' Occupation Tax, the Use Tax, or any local
				occupation taxes administered by the Department. If the Department seeks
				revocation of a Direct Pay Permit, it shall notify the permit holder of the
				basis for its determination to revoke the permit, as well as the time and date
				of the revocation hearing. Revocation proceedings shall be held in a manner
				consistent with Section 2b of the Retailers' Occupation Tax Act [35 ILCS
				120/2b ].
b) Direct Pay Permit holders may withdraw
				from the program at any time by providing written notice to the Department.
				Withdrawal will be effective as of the end of the permit holder's normal
				reporting period following the date of the written notice of
				withdrawal.
c) Any person whose
				Direct Pay Permit status is either voluntarily withdrawn or whose permit has
				been revoked by action of the Department must immediately notify all vendors
				from whom purchases are made, advising them that the Direct Pay Permit issued
				to them is no longer valid.
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › ILLUSTRATION B - Example of a Notice of Revocation of Certificate of Registration

Current through Register Vol. 48, No. 28, July 12, 2024
The notice to be posted pursuant to Section 130.745(b) will
				  be supplied by the Department. The notice is 11x 8½ inch, is black print
				  on a lime green background, and contains the following text:
Click here to
				  view image
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › ILLUSTRATION C - Food Flow Chart

Current through Register Vol. 48, No. 28, July 12, 2024
TEST TO DETERMINE TAX RATE FOR FOOD ITEMS SOLD BY A
				  RETAILER (EXCLUDING RESTAURANTS AND CAFETERIAS)
Click here to
				  view image
Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart T - DIRECT PAYMENT PROGRAM › ILLUSTRATION D - Example of a Notice of Expiration of Certificate of Registration

Current through Register Vol. 48, No. 28, July 12, 2024
The notice to be posted pursuant to Section
				  130.701(h)
				  and (i) will be supplied by the Department.
				  The notice is 11 x 81/2 inches, is black print on a red background, and
				  contains the following text:
WARNING
THIS BUSINESS' CERTIFICATE OF
				  REGISTRATION HAS
EXPIRED
ENGAGING IN THE BUSINESS OF SELLING TANGIBLE PERSONAL
				  PROPERTY AT RETAIL AFTER THE EXPIRATION OF A CERTIFICATE OF REGISTRATION IS A
				  CLASS A MISDEMEANOR AND WILL BE SUBJECT TO CRIMINAL PROSECUTION AND
				  PENALTY.
TO REPORT ILLEGAL SALES, PLEASE
				  CALL
1-800-CHEAT11
(1-800-243-2811)
ISSUED BY THE STATE OF
				  ILLINOIS
DEPARTMENT OF
				  REVENUE
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.101 - Purpose and Scope of Regulations

Current through Register Vol. 48, No. 28, July 12, 2024
Public Acts 101-0031 and 101-0604 implemented a series of
				structural changes to the Illinois sales tax law that are intended to "level
				the playing field" between Illinois-based retailers and remote retailers by
				imposing State and local retailers' occupation taxes on Illinois retailers,
				remote retailers and marketplace facilitators alike. These regulations
				implement the new requirements for remote retailers and marketplace
				facilitators, and explain the requirements for certified service providers and
				for the certified automated systems used by remote retailers. Public Acts
				101-0031 and 101-0604 require "remote retailers" to collect and remit State and
				local retailers' occupation taxes. They also provide that remote retailers may
				contract with certified service providers to perform their tax remittance
				functions. Remote retailers may also use certified automated systems to
				calculate and remit their own taxes. In addition to these changes, the
				legislation also modified the liability and role of marketplace facilitators.
				Beginning January 1, 2021, marketplace facilitators are required to remit State
				and local retailers' occupation taxes on sales made over the marketplace on
				their own sales and sales made on behalf of marketplace sellers. The
				legislation provides that State and local retailers' occupation taxes on sales
				made by remote retailers and marketplace facilitators on behalf of marketplace
				sellers are incurred based on the rate in effect at the location to which the
				tangible personal property is shipped or delivered or at which possession is
				taken by the purchaser ("destination sourcing"). State and local retailers'
				occupation taxes for a marketplace facilitator's own marketplace sales are
				incurred, depending on the nature of the transaction, either at the rate in
				effect at the location of Illinois inventory from which a sale is fulfilled or
				the Illinois location where selling activities otherwise occur ("origin
				sourcing"), or by using destination sourcing. Section 131.155 explains the
				sourcing rules for different types of retailers.
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.107 - Description of Different Types of Retailers On and After January 1, 2021 - Scope of Regulations

Current through Register Vol. 48, No. 28, July 12, 2024
a) Different
			 Types of Retailers On and After January 1, 2021. Public Acts 101-0031 and
			 101-0604 added several new types of retailers with different tax liabilities to
			 the State's existing sales tax structure. As a result, retailers now include
			 the following:
1) Remote retailers incurring
			 State and local retailers' occupation tax using destination sourcing for sales
			 made to Illinois purchasers; a marketplace seller that makes sales over a
			 marketplace that meets either of the required tax remittance thresholds in
			 Section
			 131.115
			 of this Part and that also makes sales outside of that marketplace may also be
			 considered a remote retailer for sales outside of the marketplace;
2) Marketplace facilitators incurring State
			 and local retailers' occupation tax using destination sourcing for sales made
			 over the marketplace on behalf of marketplace sellers to Illinois
			 purchasers;
3) Marketplace
			 facilitators incurring State and local retailers' occupation tax using origin
			 sourcing for their own sales that are either fulfilled from inventory located
			 in Illinois or for which selling activities otherwise occur in Illinois (the
			 location at which the State and local retailers' occupation tax is incurred
			 must be determined by applying the provisions of 86 Ill. Adm. Code
			 270.115(c) and
			 (d)) ; and incurring State and local
			 retailers' occupation tax using destination sourcing for all other sales of its
			 own;
4) Out-of-State sellers with a
			 physical presence in Illinois incurring a Use Tax collection obligation for
			 sales they make outside Illinois and ship or deliver to Illinois purchasers;
			 such sellers however, incur State and local retailers' occupation taxes using
			 origin sourcing for sales for which their selling activities occur in Illinois
			 (see, e.g., 86 Ill. Adm. Code
			 270.115(c) and
			 (d)) ; if such sellers also make sales over a
			 marketplace, they are considered marketplace sellers and the marketplace
			 facilitator will incur State and local retailers' occupation tax liability
			 based on destination sourcing for these sales;
5) Illinois retailers, including brick and
			 mortar retailers, incurring no State or local retailers' occupation taxes for
			 sales made over a marketplace (the marketplace facilitator will now incur State
			 and local retailers' occupation tax liability based on destination sourcing for
			 these sales); and
6) Illinois
			 retailers, including brick and mortar retailers, incurring State and local
			 retailers' occupation taxes based on origin sourcing for sales made in
			 Illinois.
7) Illinois retailers,
			 including brick and mortar retailers, incurring a Use Tax collection obligation
			 for sales fulfilled from out-of-state inventory and for which selling
			 activities occur out of state.
Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.115 - Remote Retailers - Determination of Status as a Remote Retailer

Current through Register Vol. 48, No. 28, July 12, 2024
a) Application of ROTA
1)
Beginning January 1, 2021, a
			 remote retailer is a retailer engaged in the occupation of selling at retail in
			 Illinois for purposes of ROTA if
either of the following thresholds is
			 met:
A)
The cumulative gross receipts
			 from sales of tangible personal property to purchasers in Illinois are $100,000
			 or more; or
B)
The
			 remote retailer enters into 200 or more separate transactions for the sale of
			 tangible personal property to purchasers in Illinois.
[35 ILCS
			 120/2(b)]