Part 130: RETAILERS' OCCUPATION TAX

Section 130.103 Leases or Rentals of Trailers other than Semitrailers and Items that are Titled but not Registered a) The provisions of Article 75 of Public Act 103-592 that apply the Retailers' Occupation Tax to persons engaged in the business of leasing tangible personal proper…

Section 130.105 Responsibility of Trustees, Receivers, Executors or Administrators Where trustees, receivers, executors or administrators (whether appointed by a Federal or a State court), by virtue of their appointment, continue to operate, manage or control the business and eng…

Section 130.110 Occasional Sales a) Since the Act does not impose a tax upon persons who are not engaged in the business of selling tangible personal property, persons who make isolated or occasional sales thereof do not incur tax liability. b) For example, if a retailer sells ta…

Section 130.1101 Definition of Federal Area As used in this Regulation, the term "Federal area" means any lands or premises held or acquired by or for the use of the United States or any department, establishment or agency of the United States. Any Federal area, or any part there…

Section 130.1105 When Deliveries on Federal Areas Are Taxable Provided the tax would otherwise apply, persons engaged in the business of selling tangible personal property for use or consumption are required to remit Retailers' Occupation Tax to the Department notwithstanding the…

Section 130.111 Sale of Used Motor Vehicles, Aircraft, or Watercraft by Leasing or Rental Business a) Any person engaged in the business of leasing or renting motor vehicles, aircraft or watercraft, to others and who, in connection therewith, sells any used motor vehicle, aircraf…

Section 130.1110 No Distinction Between Deliveries on Federal Areas and Illinois Deliveries Outside Federal Areas The Retailers' Occupation Tax applies and will be collected in the same manner and to the same extent with respect to gross receipts within the purview of this Regula…

Section 130.115 Habitual Sales Any person who habitually engages in selling, and, on and after January 1, 2025, leasing tangible personal property for use or consumption, or who, in any manner or at any time, advertises, solicits, offers for sale or lease or holds himself out to …

Section 130.120 Nontaxable Transactions The tax does not apply to gross receipts from sales, which, on and after January 1, 2025, includes leases: a) of intangible personal property, such as shares of stocks, bonds, evidences of interest in property, corporate, or other franchise…

Section 130.1201 General Information a) Any report, claim, tax return, statement or other document required or authorized to be filed with or any payment made to the Department of Revenue, which document or payment is transmitted through the United States mail, will be deemed to …

Section 130.1205 Due Date that Falls on Saturday, Sunday or a Holiday If the due date for any return or other report or payment falls on Saturday, Sunday or a Holiday, such due date shall be considered to be the next business date either for the purpose of submitting such return …

Section 130.1301 When Lessee of Premises Must File Return for Leased Department Where a person engaging in the business of selling tangible personal property at retail leases to other persons, for use by them in engaging in the business of selling tangible personal property at re…

Section 130.1305 When Lessor of Premises Should File Return for Business Operated on Leased Premises If a lessee operates a business on the lessor's premises under the identity of the lessor, then the lessor must report and remit the lessee's tax on the lessor's Retailers' Occupa…

Section 130.1310 Meaning of "Lessor" and "Lessee" in this Regulation The word "lessor" shall include lessors, concessioners and licensors. The word "lessee" shall include lessees, concessionaires and licensees. (Source: Amended and effective January 6, 1969) SUBPART N: SALES FOR …

Section 130.1401 Seller's Responsibility to Determine the Character of the Sale at the Time of the Sale a) A person who sells tangible personal property to a purchaser who may use or consume such property within the meaning of the Act, but who also may resell such property, must …

Section 130.1405 Seller's Responsibility to Obtain Certificates of Resale and Requirements for Certificates of Resale a) Except in the case of sales to totally exempt purchasers, when sales for resale are made, sellers should, for their protection, take a Certificate of Resale fr…

Section 130.1410 Requirements for Certificates of Resale (Repealed) (Source: Repealed at 15 Ill. Reg. 6621, effective April 17, 1991)

Section 130.1415 Resale Number – When Required and How Obtained a) If the purchaser is not registered with the Department as a taxpayer, but claims to be a reseller of the tangible personal property in such a way that such resales are not taxable under the Retailers' Occupation T…

Section 130.1420 Blanket Certificate of Resale (Repealed) (Source: Repealed at 15 Ill. Reg. 6621, effective April 17, 1991) SUBPART O: CLAIMS TO RECOVER ERRONEOUSLY PAID TAX

Section 130.1501 Claims for Credit – Limitations – Procedure a) Limitations Upon Claims 1) Where a taxpayer under the Retailers' Occupation Tax Act pays to the Department an amount of tax or penalty or interest not due under the provisions of the Act, either as the result of a mi…

Section 130.1505 Disposition of Credit Memoranda by Holders Thereof a) Assignment of Credit Memoranda 1) Credit memoranda issued in accordance with the provisions of Section 6 of the Act may be assigned or transferred only after a request for that purpose is filed with the Depart…

Section 130.1510 Refunds 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 cl…

Section 130.1515 Interest a) Interest paid by the Department to taxpayers and interest charged to taxpayers by the Department shall be at the rate set forth in Section 3-2 of the Uniform Penalty and Interest Act [35 ILCS 735/3-2]. b) No interest will be allowed if the overpayment…

Section 130.1520 Verified Credit a) Verified credit. A verified credit is a specific type of credit arising under Section 3 of the Retailers' Occupation Tax Act, which states: If any payment provided for in this Section exceeds the taxpayer's liabilities under this Act, the Use T…

Section 130.1601 When Returns are Required After a Business is Discontinued Where a taxpayer under the Retailers' Occupation Tax Act sells out or discontinues his business, such taxpayer shall continue to file returns regularly and pay tax with such returns with respect to gross …

Section 130.1605 When Returns Are Not Required After Discontinuation of a Business However, if such taxpayer has been duly granted permission by the Department, and has consistently used gross amount of sales as the method of computing his liability for tax under the Act, he will…

Section 130.1610 Cross Reference to Bulk Sales Regulation For information concerning Bulk Sales of businesses under the Retailers' Occupation Tax (Ill. Rev. Stat. 1979, ch. 120, par. 444j), see Subpart Q of this Part. (Source: Amended and effective April 8, 1963) SUBPART Q: NOTIC…

Section 130.1701 Bulk Sales: Notices of Sales of Business Assets a) If any taxpayer, outside the usual course of his or her 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…

Section 130.1801 When Powers of Attorney May be Given In certain instances, persons liable for tax under the Retailers' Occupation Tax Act desire, for convenience, to have other persons make the returns, pay the tax, request Private Letter Rulings, and perform any and all other d…

Section 130.1805 Filing of Power of Attorney With Department In all instances, an original, a duplicate original or photostatic copy of such power of attorney, with signature of the principal duly acknowledged before a person authorized to take acknowledgments, must be filed with…

Section 130.1810 Filing of Papers by Agent Under Power of Attorney Returns, claims or other papers filed by an agent for a principal must be filed in the name of the principal by the agent as Agent or as Attorney in Fact. If an agent files returns for more than one principal, he …

Section 130.1901 Addition Agents to Plating Baths a) Various chemical compounds and addition agents are added to plating baths in order to improve the finished product, make the process more economical, make the process faster, improve anode corrosion, lower the surface tension, …

Section 130.1905 Agricultural Producers a) Agricultural Producers − When Liable For Tax 1) Persons who engage in the business of selling agricultural products, such as milk and other dairy products, livestock, meats, hay, grain, vegetables, fruit, plants, flowers, eggs, young tre…

Section 130.1910 Antiques, Curios, Art Work, Collectors' Coins, Collectors' Postage Stamps and Like Articles a) When Tax Applies Sales of antiques, curios, art work, collectors' coins, collectors' postage stamps and like articles to art collectors, philatelists, numismatists or o…

Section 130.1915 Auctioneers and Agents a) When Persons Act As Agents 1) Every auctioneer or agent, acting for an unknown or undisclosed principal, or entrusted with the possession of any bill of lading, custom house permit or warehouseman's receipt for delivery of any tangible p…

Section 130.1920 Barbers and Beauty Shop Operators a) When Liable For Tax When barbers or beauty shop operators sell tangible personal property to purchasers for use or consumption apart from their rendering of service as barbers or beauty shop operators, they incur Retailers' Oc…

Section 130.1925 Blacksmiths a) When Liable for Retailers' Occupation Tax When blacksmiths engage in the business of selling or of fabricating and selling horseshoes or other items of tangible personal property to purchasers for use or consumption, they incur Retailers' Occupatio…

Section 130.1930 Chiropodists, Osteopaths, and Chiropractors a) When Liable for Tax When chiropodists, osteopaths, or chiropractors sell such items as shoes, arch supports, trusses, braces, appliances, or other tangible personal property to purchasers for use or consumption apart…

Section 130.1934 Community Water Supply a) Tangible Personal Property Used in the Construction and Maintenance of a Community Water Supply – In General Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as de…

Section 130.1935 Computer Software a) Computer software means all types of software including operational, applicational, utilities, compliers, templates, shells, and all other forms. Canned software is considered to be tangible personal property regardless of the form in which i…

Section 130.1940 Construction Contractors and Real Estate Developers a) Definitions 1) "Construction Contractor." The word "construction contractor" when used in this Subpart includes general contractor, subcontractor and specialized contractor such as a landscape contractor. "Co…

Section 130.1945 Co-operative Associations a) In General 1) A co-operative association consists of a group of persons, whether incorporated or not, organized for the purpose of purchasing or producing, and selling to shareholders, members or others, such items as groceries, provi…

Section 130.1946 Tangible Personal Property Used or Consumed in Graphic Arts Production within Enterprise Zones Located in a County of more than 4,000 Persons and less than 45,000 Persons a) Section 1d of the Retailers' Occupation Tax Act provides an exemption for tangible person…

Section 130.1947 Tangible Personal Property Used or Consumed in the Process of Manufacturing and Assembly within Enterprise Zones or by High Impact Businesses a) Section 1d of the Retailers' Occupation Tax Act provides an exemption for tangible personal property to be used or con…

Section 130.1948 Tangible Personal Property Used or Consumed in the Operation of Pollution Control Facilities Located within Enterprise Zones a) The Retailers' Occupation Tax Act provides an exemption for tangible personal property used or consumed in the operation of pollution c…

Section 130.1949 Sales of Building Materials Incorporated into the South Suburban Airport a) Section 1s of the Retailers' Occupation Tax Act creates an exemption for the sale of building materials to be incorporated into the South Suburban Airport as defined in the Public Private…

Section 130.1950 Sales of Building Materials Incorporated into the Illiana Expressway a) Section 1q of the Retailers' Occupation Tax Act creates an exemption for the sale of qualified building materials to be incorporated into the Illiana Expressway as defined in the Public Priva…