Part 130: RETAILERS' OCCUPATION TAX

Section 130.425 Traded-In Property a) "Gross receipts" means the "selling price" or "amount of sale". "Selling price" or the "amount of sale" means the consideration for a sale valued in money, whether received in money or otherwise, including cash, credits, property other than a…

Section 130.430 Deposit or Prepayment on Purchase Price a) If a buyer in a sale at retail makes a binding commitment to purchase, and the tangible personal property which is the subject of the binding commitment has been identified to the contract, any payment on the purchase pri…

Section 130.435 State and Local Taxes Other Than Retailers' Occupation Tax a) Illinois Motor Fuel Tax and Cigarette Tax 1) In calculating taxable receipts, sellers of motor fuel for use or consumption may deduct the Illinois Motor Fuel Tax collected by such sellers with respect t…

Section 130.440 Penalties The retailer should not collect tax on amounts as to which he is acting merely as a tax collector, such as the Cook County Liquor Gallonage Tax, the Illinois Motor Fuel Tax Act (Ill. Rev. Stat. 1989, ch. 120, par. 417 et seq.) and 86 Ill. Adm. Code 500. …

Section 130.445 Federal Taxes a) When Deductible 1) In computing retailers' occupation tax liability, a person making such computation may deduct an amount equivalent to taxes which the person pays to the Federal Government if the person is required by the Federal law to collect …

Section 130.450 Installation, Alteration and Special Service Charges a) When Taxable Where the seller engages in the business of selling tangible personal property at retail, and such tangible personal property is installed or altered for the purchaser by the seller (or some othe…

Section 130.454 Determination of "Selling Price" or "Amount of Sale" when Certain Motor Vehicles are Sold for Lease a) The provisions of this Section, which provides only for an alternative meaning of "selling price" with respect to the sale of certain motor vehicles incident to …

Section 130.455 Motor Vehicle Leasing and Trade-In Allowances a) Definitions "Advance Trade Credit" means a trade-in credit earned as the result of the trade-in of a vehicle on the future purchase of a vehicle where the purchaser is contractually obligated to make a purchase with…

Section 130.501 Monthly Tax Returns – When Due – Contents a) Except as provided in Section 130.502, 130.510 and 130.2045, on or before the twentieth day of each calendar month, every person engaged in the business of selling tangible personal property at retail in this State duri…

Section 130.502 Quarterly Tax Returns a) If a retailer's average monthly tax liability to the Department does not exceed $200, the Department may authorize returns to be filed on a quarter-annual basis, with the return for January, February and March of a given year being due by …

Section 130.505 Returns and How to Prepare a) Returns shall be filed on forms prescribed and furnished by the Department. It is the duty of the taxpayer to obtain forms, and failure to obtain them will not be an excuse for failure to file returns when and as required by law. b) I…

Section 130.510 Annual Tax Returns a) If a retailer's average monthly tax liability to the Department does not exceed $50, the Department may authorize returns to be filed on an annual basis, with the return for a given year being due by January 20 of the following year. The deci…

Section 130.515 First Return In addition, if the business is not a corporation, the first return filed shall show the names and residence addresses of all owners of the business (i.e., persons who share in the profit or loss of such business). (Source: Amended at 3 Ill. Reg. 46, …

Section 130.520 Final Returns When Business is Discontinued Notwithstanding any other provision in this Regulation concerning the time within which a retailer may file his return, in the case of any retailer who ceases to engage in a kind of business which makes him responsible f…

Section 130.525 Who May Sign Returns a) Returns must be signed by the president, vice president, secretary or treasurer, or by the properly accredited agent whose power of attorney is on file with the Department, if the seller is a corporation. b) The official title of the person…

Section 130.530 Returns Covering More Than One Location Under Same Registration − Separate Returns for Separately Registered Locations a) Where any taxpayer under the Retailers' Occupation Tax Act conducts, at more than one location within the State, a business which comes within…

Section 130.535 Payment of the Tax, Including Quarter Monthly Payments in Certain Instances a) Except as noted hereinafter, at the same time that a tax return required by the provisions of the Act is filed with the Department, the taxpayer shall pay the tax that is due with such …

Section 130.540 Returns on a Transaction by Transaction Basis a) Who Must File Transaction Reporting Returns In addition, with respect to motor vehicles, watercraft, trailers, and aircraft (and implements of husbandry or special mobile equipment for which the purchaser intends to…

Section 130.541 Returns for Aviation Fuel a) Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by Section 3 of the Retailers' Occupation Tax Ac…

Section 130.545 Registrants Must File a Return for Every Return Period Every taxpayer under the Retailers' Occupation Tax Act shall file a return for each reporting period (month, quarter or year, as the case may be) in which he is engaged in the business of selling tangible pers…

Section 130.550 Filing of Returns for Retailers by Suppliers Under Certain Circumstances For greater simplicity of administration, it shall be permissible for manufacturers, importers and wholesalers whose products are sold at retail in Illinois by numerous retailers, and who wis…

Section 130.551 Prepayment of Retailers' Occupation Tax on Motor Fuel a) Any person engaged in the business of selling motor fuel at retail, as defined in the Motor Fuel Tax Law, and who is not a licensed distributor or supplier, as defined in Section 1.2 or 1.14, respectively, o…

Section 130.552 Alcoholic Liquor Reporting a) Retailer Liquor Report. Beginning on October 1, 2003, any person that is engaged in the business of selling alcoholic liquor at retail through a liquor store, tavern, or restaurant shall file a monthly statement with the Department li…

Section 130.555 Vending Machine Information Returns Through December 31, 2011 any person who engages in the business of selling tangible personal property at retail through a vending machine or through vending machines shall file an information report or return with the Departmen…

Section 130.560 Verification of Returns Each return or notice required to be filed under this Act shall contain or be verified by a written declaration that it is made under the penalties of perjury. (Source: Amended at 3 Ill. Reg. 46, p. 52, effective November 2, 1979)

Section 130.565 Vendor's Discount Cap a) Periodic returns. Except as provided in Section 3 of the Retailers' Occupation Tax Act, the retailer filing the return under that Section shall, at the time of filing such return, pay to the Department the amount of tax imposed by the Act …

Section 130.601 Preliminary Comments (Repealed) (Source: Repealed at 38 Ill. Reg. 19998, effective October 1, 2014)

Section 130.605 Sales of Property Originating in Illinois; Questions of Interstate Commerce a) Where tangible personal property is located in this State at the time of its sale (or is subsequently produced in Illinois), and then delivered in Illinois to the purchaser, the seller …

Section 130.610 Sales of Property Originating in Other States (Repealed) (Source: Repealed at 38 Ill. Reg. 19998, effective October 1, 2014) SUBPART G: CERTIFICATE OF REGISTRATION

Section 130.701 General Information on Obtaining a Certificate of Registration a) It shall be unlawful for any person to engage in the business of selling tangible personal property at retail in this State without a certificate of registration from the Department. b) Every person…

Section 130.705 Procedure in Disputed Cases Involving Certificates of Registration a) No certificate of registration shall be issued to any person who is in default to the State of Illinois for moneys due under the Retailers' Occupation Tax Act or under any other State tax law or…

Section 130.710 Procedure When Security Must be Forfeited a) With respect to security other than bonds (upon which the Department may sue in the event of a forfeiture), if the taxpayer fails to pay, when due, any amount whose payment such security guarantees, the Department shall…

Section 130.715 Sub-Certificates of Registration a) When a registered taxpayer, such as a company operating chain stores, engages in the business of selling tangible personal property at retail in this State from more than one location, the Department shall furnish to that regist…

Section 130.720 Separate Registrations for Different Places of Business of Same Taxpayer Under Some Circumstances When the same person engages in 2 or more businesses of selling tangible personal property at retail in this State, which businesses are substantially different in ch…

Section 130.725 Display The taxpayer must conspicuously display their certificate or sub-certificate of registration, in the manner and form as provided in this Section, in the place of business to which it applies. a) Retailers with physical presence in this State must display c…

Section 130.730 Replacement of Certificate If any certificate or sub-certificate is destroyed or defaced as a result of natural wear and tear, upon application to the Department, certifying to this fact, a duplicate copy thereof will be issued to the taxpayer concerned. (Source: …

Section 130.735 Certificate Not Transferable a) A certificate or sub-certificate of registration is not transferable, and should be destroyed in case the taxpayer's place of business to which such certificate or sub-certificate applies is discontinued by him. Where any place of b…

Section 130.740 Certificate Required For Mobile Vending Units a) Where a taxpayer, holding a certificate of registration by reason of being engaged in the business of selling tangible personal property at retail in this State from a place of business, also operates a truck, wagon…

Section 130.745 Revocation of Certificate a) The Department, after notice and hearing as provided under Section 2505-380 of the Civil Administrative Code [20 ILCS 2505/2505-380] and Section 2b of the Act, shall revoke the certificate of registration (including all sub-certificate…

Section 130.801 Books and Records − General Requirements a) Every person engaged in the business of selling tangible personal property at retail in this State shall keep records and books of all sales and purchases of tangible personal property, including all sales and purchase i…

Section 130.805 Minimum Requirements for Recordkeeping a) In General. A taxpayer shall maintain all records that are necessary to determine the correct tax liability under the Retailers' Occupation Tax Act ("Act") [35 ILCS 120]. All required records must be made available upon re…

Section 130.810 Records Required to Support Deductions a) Where the nature of a business is such that charge and time sales are made, or where the nature of the business is such that a portion of its sales: are for resale; are within the protection of the Commerce Clause of the C…

Section 130.815 Preservation and Retention of Records a) Books and records and other papers reflecting gross receipts received during any period with respect to which the Department is authorized to issue notices of tax liability as provided by Sections 4 and 5 of the Act shall b…

Section 130.820 Preservation of Books During Pendency of Assessment Proceedings If a notice of tax liability has been issued, and if the questions raised by such notice have not been completely disposed of, books and records reflecting receipts received during the period covered …

Section 130.825 Department Authorization to Destroy Records Sooner than Would Otherwise be Permissible a) In all cases, the Department may, in writing, authorize the destruction of books and records and other papers prior to the expiration of the periods of time during which the …

Section 130.901 Civil Penalties a) Filing an Incorrect Return If the tax computed upon the basis of the gross receipts as fixed by the Department is greater than the amount of tax due under the return or returns as filed, the Department shall (or if the tax or any part thereof th…

Section 130.905 Interest a) In addition to any penalty provided for in this Act, any amount of tax which is not paid when due shall bear interest at the rate of 1% prior to September 17, 1981, and at the rate of 2% on and after September 17, 1981 and prior to January 1, 1987, and…