Illinois 96th Regular Session Status: Enacted

HB 3659 — PROP TAX-PUBLICATION FEES

Last action — Public Act . . . . . . . . . 96-1544

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 24, 2009. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    0 primary, 1 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Amends the Property Tax Code. Provides that publication fees are not to exceed stated amounts (instead of are stated amounts). Effective immediately.

Bill Text

What changed in the latest version

653 added · 73 removed

Plain-language change summary

The recent changes to HB 3659 involve amendments to definitions within the Use Tax Act, clarifying how "use" is defined regarding tangible personal property. Notably, it emphasizes that if property is bought for resale and then used as part of production, it is still considered purchased for resale. This change is important because it provides clearer guidelines for businesses on how tax applies to their purchases, potentially impacting their tax liabilities and compliance processes. Additionally, the bill has removed certain provisions related to publication fees under the Property Tax Code, which streamlines the focus on the Use Tax Act.

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HB3659 Engrossed LRB096 09388 RCE 19545 b AN ACT concerning revenue.
HB3659 Enrolled LRB096 09388 RCE 19545 b AN ACT concerning revenue.
The Property Tax Code is amended by changing Sections 12-15 and 12-20 as follows:
The Use Tax Act is amended by changing Section 2 as follows:
(35 ILCS 200/12-15) Sec.
(35 ILCS 105/2) (from Ch.
12-15.
120, par.
Publication fee - Counties of less than 3,000,000.
439.2) Sec.
The newspaper shall be paid a fee for publishing the assessment list according to the following schedule:
2.
(a) For a parcel listing including the name of the property owner, a property index number and the total assessment, not to exceed 80¢ per parcel;
"Use" means the exercise by any person of any right or power over tangible personal property incident to the ownership of that property, except that it does not include the sale of such property in any form as tangible personal property in the regular course of business to the extent that such property is not first subjected to a use for which it was purchased, and does not include the use of such property by its owner for demonstration purposes:
(b) For a parcel listing including the name of the property owner, a property index number, the assessed value of improvements and the total assessment, not to exceed $1.20 per parcel;
Provided that the property purchased is deemed to be purchased for the purpose of resale, despite first being used, to the extent to which it is resold as an ingredient of an intentionally produced product or by-product of manufacturing.
(c) For a parcel listing including the name of the property owner, a legal description of the property and the total assessment, not to exceed $1.20 per parcel;
"Use" does not mean the demonstration use or interim use of tangible personal property by a retailer before he sells that tangible personal property.
(d) For a parcel listing including the name of the property owner, a property index number, a legal description and the total assessment, not to exceed $1.60 per parcel;
For watercraft or aircraft, if the period of demonstration use or interim use by the retailer exceeds 18 months, the retailer shall pay on the retailers' original cost price the tax imposed HB3659 Enrolled - 2 - LRB096 09388 RCE 19545 b by this Act, and no credit for that tax is permitted if the watercraft or aircraft is subsequently sold by the retailer.
(e) For a parcel listing including the name of the property HB3659 Engrossed - 2 - LRB096 09388 RCE 19545 b owner, a legal description, the assessed value of improvements and the total assessment, not to exceed $1.60 per parcel;
"Use" does not mean the physical incorporation of tangible personal property, to the extent not first subjected to a use for which it was purchased, as an ingredient or constituent, into other tangible personal property (a) which is sold in the regular course of business or (b) which the person incorporating such ingredient or constituent therein has undertaken at the time of such purchase to cause to be transported in interstate commerce to destinations outside the State of Illinois:
(f) For a parcel listing including the name of the property owner, a property index number, a legal description, the assessed value of improvements and the total assessment, not to exceed $2.00 per parcel;
Provided that the property purchased is deemed to be purchased for the purpose of resale, despite first being used, to the extent to which it is resold as an ingredient of an intentionally produced product or by-product of manufacturing.
and (g) For the preamble, headings, and any other explanatory matter either required by law, or requested by the supervisor of assessments, to be published, the newspaper's published rate for such advertising.
"Watercraft" means a Class 2, Class 3, or Class 4 watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a personal watercraft, or any boat equipped with an inboard motor.
"Purchase at retail" means the acquisition of the ownership of or title to tangible personal property through a sale at retail.
"Purchaser" means anyone who, through a sale at retail, acquires the ownership of tangible personal property for a valuable consideration.
"Sale at retail" means any transfer of the ownership of or HB3659 Enrolled - 3 - LRB096 09388 RCE 19545 b title to tangible personal property to a purchaser, for the purpose of use, and not for the purpose of resale in any form as tangible personal property to the extent not first subjected to a use for which it was purchased, for a valuable consideration:
Provided that the property purchased is deemed to be purchased for the purpose of resale, despite first being used, to the extent to which it is resold as an ingredient of an intentionally produced product or by-product of manufacturing.
For this purpose, slag produced as an incident to manufacturing pig iron or steel and sold is considered to be an intentionally produced by-product of manufacturing.
"Sale at retail" includes any such transfer made for resale unless made in compliance with Section 2c of the Retailers' Occupation Tax Act, as incorporated by reference into Section 12 of this Act.
Transactions whereby the possession of the property is transferred but the seller retains the title as security for payment of the selling price are sales.
"Sale at retail" shall also be construed to include any Illinois florist's sales transaction in which the purchase order is received in Illinois by a florist and the sale is for use or consumption, but the Illinois florist has a florist in another state deliver the property to the purchaser or the purchaser's donee in such other state.
Nonreusable tangible personal property that is used by persons engaged in the business of operating a restaurant, cafeteria, or drive-in is a sale for resale when it is HB3659 Enrolled - 4 - LRB096 09388 RCE 19545 b transferred to customers in the ordinary course of business as part of the sale of food or beverages and is used to deliver, package, or consume food or beverages, regardless of where consumption of the food or beverages occurs.
Examples of those items include, but are not limited to nonreusable, paper and plastic cups, plates, baskets, boxes, sleeves, buckets or other containers, utensils, straws, placemats, napkins, doggie bags, and wrapping or packaging materials that are transferred to customers as part of the sale of food or beverages in the ordinary course of business.
The purchase, employment and transfer of such tangible personal property as newsprint and ink for the primary purpose of conveying news (with or without other information) is not a purchase, use or sale of tangible personal property.
"Selling price" means the consideration for a sale valued in money whether received in money or otherwise, including cash, credits, property other than as hereinafter provided, and services, but not including the value of or credit given for traded-in tangible personal property where the item that is traded-in is of like kind and character as that which is being sold, and shall be determined without any deduction on account of the cost of the property sold, the cost of materials used, labor or service cost or any other expense whatsoever, but does not include interest or finance charges which appear as separate items on the bill of sale or sales contract nor charges that are added to prices by sellers on account of the HB3659 Enrolled - 5 - LRB096 09388 RCE 19545 b seller's tax liability under the "Retailers' Occupation Tax Act", or on account of the seller's duty to collect, from the purchaser, the tax that is imposed by this Act, or, except as otherwise provided with respect to any cigarette tax imposed by a home rule unit, on account of the seller's tax liability under any local occupation tax administered by the Department, or, except as otherwise provided with respect to any cigarette tax imposed by a home rule unit on account of the seller's duty to collect, from the purchasers, the tax that is imposed under any local use tax administered by the Department.
Effective December 1, 1985, "selling price" shall include charges that are added to prices by sellers on account of the seller's tax liability under the Cigarette Tax Act, on account of the seller's duty to collect, from the purchaser, the tax imposed under the Cigarette Use Tax Act, and on account of the seller's duty to collect, from the purchaser, any cigarette tax imposed by a home rule unit.
The phrase "like kind and character" shall be liberally construed (including but not limited to any form of motor vehicle for any form of motor vehicle, or any kind of farm or agricultural implement for any other kind of farm or agricultural implement), while not including a kind of item which, if sold at retail by that retailer, would be exempt from retailers' occupation tax and use tax as an isolated or occasional sale.
"Department" means the Department of Revenue.
HB3659 Enrolled - 6 - LRB096 09388 RCE 19545 b "Person" means any natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian or other representative appointed by order of any court.
"Retailer" means and includes every person engaged in the business of making sales at retail as defined in this Section.
A person who holds himself or herself out as being engaged (or who habitually engages) in selling tangible personal property at retail is a retailer hereunder with respect to such sales (and not primarily in a service occupation) notwithstanding the fact that such person designs and produces such tangible personal property on special order for the purchaser and in such a way as to render the property of value only to such purchaser, if such tangible personal property so produced on special order serves substantially the same function as stock or standard items of tangible personal property that are sold at retail.
A person whose activities are organized and conducted primarily as a not-for-profit service enterprise, and who engages in selling tangible personal property at retail (whether to the public or merely to members and their guests) is a retailer with respect to such transactions, excepting only a person organized and operated exclusively for charitable, religious or educational purposes either (1), to the extent of sales by such person to its members, students, patients or HB3659 Enrolled - 7 - LRB096 09388 RCE 19545 b inmates of tangible personal property to be used primarily for the purposes of such person, or (2), to the extent of sales by such person of tangible personal property which is not sold or offered for sale by persons organized for profit.
The selling of school books and school supplies by schools at retail to students is not "primarily for the purposes of" the school which does such selling.
This paragraph does not apply to nor subject to taxation occasional dinners, social or similar activities of a person organized and operated exclusively for charitable, religious or educational purposes, whether or not such activities are open to the public.
A person who is the recipient of a grant or contract under Title VII of the Older Americans Act of 1965 (P.L.
92-258) and serves meals to participants in the federal Nutrition Program for the Elderly in return for contributions established in amount by the individual participant pursuant to a schedule of suggested fees as provided for in the federal Act is not a retailer under this Act with respect to such transactions.
Persons who engage in the business of transferring tangible personal property upon the redemption of trading stamps are retailers hereunder when engaged in such business.
The isolated or occasional sale of tangible personal property at retail by a person who does not hold himself out as being engaged (or who does not habitually engage) in selling such tangible personal property at retail or a sale through a bulk vending machine does not make such person a retailer HB3659 Enrolled - 8 - LRB096 09388 RCE 19545 b hereunder.
However, any person who is engaged in a business which is not subject to the tax imposed by the "Retailers' Occupation Tax Act" because of involving the sale of or a contract to sell real estate or a construction contract to improve real estate, but who, in the course of conducting such business, transfers tangible personal property to users or consumers in the finished form in which it was purchased, and which does not become real estate, under any provision of a construction contract or real estate sale or real estate sales agreement entered into with some other person arising out of or because of such nontaxable business, is a retailer to the extent of the value of the tangible personal property so transferred.
If, in such transaction, a separate charge is made for the tangible personal property so transferred, the value of such property, for the purposes of this Act, is the amount so separately charged, but not less than the cost of such property to the transferor;
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if no separate charge is made, the value of such property, for the purposes of this Act, is the cost to the transferor of such tangible personal property.
"Retailer maintaining a place of business in this State", or any like term, means and includes any of the following retailers:
1.
A retailer having or maintaining within this State, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within this State HB3659 Enrolled - 9 - LRB096 09388 RCE 19545 b under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether such retailer or subsidiary is licensed to do business in this State.
However, the ownership of property that is located at the premises of a printer with which the retailer has contracted for printing and that consists of the final printed product, property that becomes a part of the final printed product, or copy from which the printed product is produced shall not result in the retailer being deemed to have or maintain an office, distribution house, sales house, warehouse, or other place of business within this State.
1.1.
Beginning July 1, 2011, a retailer having a contract with a person located in this State under which the person, for a commission or other consideration based upon the sale of tangible personal property by the retailer, directly or indirectly refers potential customers to the retailer by a link on the person's Internet website.
The provisions of this paragraph 1.1 shall apply only if the cumulative gross receipts from sales of tangible personal property by the retailer to customers who are referred to the retailer by all persons in this State under such contracts exceed $10,000 during the preceding 4 quarterly periods ending on the last day of March, June, September, and December.
HB3659 Enrolled - 10 - LRB096 09388 RCE 19545 b 1.2.
Beginning July 1, 2011, a retailer having a contract with a person located in this State under which:
A.
the retailer sells the same or substantially similar line of products as the person located in this State and does so using an identical or substantially similar name, trade name, or trademark as the person located in this State;
and B.
the retailer provides a commission or other consideration to the person located in this State based upon the sale of tangible personal property by the retailer.
The provisions of this paragraph 1.2 shall apply only if the cumulative gross receipts from sales of tangible personal property by the retailer to customers in this State under all such contracts exceed $10,000 during the preceding 4 quarterly periods ending on the last day of March, June, September, and December.
2.
A retailer soliciting orders for tangible personal property by means of a telecommunication or television shopping system (which utilizes toll free numbers) which is intended by the retailer to be broadcast by cable television or other means of broadcasting, to consumers located in this State.
3.
A retailer, pursuant to a contract with a broadcaster or publisher located in this State, soliciting orders for tangible personal property by means of HB3659 Enrolled - 11 - LRB096 09388 RCE 19545 b advertising which is disseminated primarily to consumers located in this State and only secondarily to bordering jurisdictions.
4.
A retailer soliciting orders for tangible personal property by mail if the solicitations are substantial and recurring and if the retailer benefits from any banking, financing, debt collection, telecommunication, or marketing activities occurring in this State or benefits from the location in this State of authorized installation, servicing, or repair facilities.
5.
A retailer that is owned or controlled by the same interests that own or control any retailer engaging in business in the same or similar line of business in this State.
6.
A retailer having a franchisee or licensee operating under its trade name if the franchisee or licensee is required to collect the tax under this Section.
7.
A retailer, pursuant to a contract with a cable television operator located in this State, soliciting orders for tangible personal property by means of advertising which is transmitted or distributed over a cable television system in this State.
8.
A retailer engaging in activities in Illinois, which activities in the state in which the retail business engaging in such activities is located would constitute maintaining a place of business in that state.
HB3659 Enrolled - 12 - LRB096 09388 RCE 19545 b "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.
86-415;
94-1074, eff.
86-1481;
12-26-06;
87-1189;
95-723, eff.
88-455.) (35 ILCS 200/12-20) Sec.
6-23-08.) Section 10.
12-20.
The Service Use Tax Act is amended by changing Section 2 as follows:
Publication of assessments;
(35 ILCS 110/2) (from Ch.
counties of 3,000,000 or more.
120, par.
In counties with 3,000,000 or more inhabitants, in each year of a general assessment, for each county or assessment district therein if the county is divided into assessment districts as provided in Section 9-220, the county assessor shall publish a complete assessment list as soon as the assessment is completed as required under this Section.
439.32) Sec.
If the county assessor revises the assessment after the complete assessment list is published, then the county assessor must publish a subsequent list of all the revised assessments for that year.
2.
In years other than years of a general assessment or reassessment, the county assessor shall cause to be published, within the time and in the manner HB3659 Engrossed - 3 - LRB096 09388 RCE 19545 b described here, a complete list of assessments in which changes are made together with the changes made in the valuation or assessment of property since the last preceding assessment.
"Use" means the exercise by any person of any right or power over tangible personal property incident to the ownership of that property, but does not include the sale or use for demonstration by him of that property in any form as tangible personal property in the regular course of business.
The publication shall contain a copy of the land value map for the township, if required by the Department.
"Use" does not mean the interim use of tangible personal property nor the physical incorporation of tangible personal property, as an ingredient or constituent, into other tangible personal property, (a) which is sold in the regular course of business or (b) which the person incorporating such ingredient or constituent therein has undertaken at the time of such purchase to cause to be transported in interstate commerce to destinations outside the State of Illinois.
The publication of the assessments or the changes shall be printed in some newspaper or newspapers of general circulation published in the county except that, in every township or incorporated town which has superseded a civil township, in which there is published one or more newspapers of general circulation, the assessment list of each township shall be published in one of the newspapers.
"Purchased from a serviceman" means the acquisition of the HB3659 Enrolled - 13 - LRB096 09388 RCE 19545 b ownership of, or title to, tangible personal property through a sale of service.
In cities of more than 2,000,000 inhabitants, the assessment list of the city shall be printed in one or more newspapers of general circulation published in the township assessment district within the city or, in the event a newspaper of general circulation is not published within the township assessment district, in one or more newspapers of general circulation published within the city.
"Purchaser" means any person who, through a sale of service, acquires the ownership of, or title to, any tangible personal property.
Any newspaper publishing an assessment list under this Section is entitled to a fee not to exceed $0.40 of 40¢ per column line for publishing the list.
"Cost price" means the consideration paid by the serviceman for a purchase valued in money, whether paid in money or otherwise, including cash, credits and services, and shall be determined without any deduction on account of the supplier's cost of the property sold or on account of any other expense incurred by the supplier.
When a serviceman contracts out part or all of the services required in his sale of service, it shall be presumed that the cost price to the serviceman of the property transferred to him or her by his or her subcontractor is equal to 50% of the subcontractor's charges to the serviceman in the absence of proof of the consideration paid by the subcontractor for the purchase of such property.
"Selling price" means the consideration for a sale valued in money whether received in money or otherwise, including cash, credits and service, and shall be determined without any deduction on account of the serviceman's cost of the property sold, the cost of materials used, labor or service cost or any other expense whatsoever, but does not include interest or finance charges which appear as separate items on the bill of sale or sales contract nor charges that are added to prices by sellers on account of the seller's duty to collect, from the HB3659 Enrolled - 14 - LRB096 09388 RCE 19545 b purchaser, the tax that is imposed by this Act.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership, association, joint stock company, joint venture, public or private corporation, limited liability company, and any receiver, executor, trustee, guardian or other representative appointed by order of any court.
"Sale of service" means any transaction except:
(1) a retail sale of tangible personal property taxable under the Retailers' Occupation Tax Act or under the Use Tax Act.
(2) a sale of tangible personal property for the purpose of resale made in compliance with Section 2c of the Retailers' Occupation Tax Act.
(3) except as hereinafter provided, a sale or transfer of tangible personal property as an incident to the rendering of service for or by any governmental body, or for or by any corporation, society, association, foundation or institution organized and operated exclusively for charitable, religious or educational purposes or any not-for-profit corporation, society, association, foundation, institution or organization which has no compensated officers or employees and which 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 HB3659 Enrolled - 15 - LRB096 09388 RCE 19545 b only if the limited liability company is organized and operated exclusively for educational purposes.
(4) a sale or transfer of tangible personal property as an incident to the rendering of service for interstate carriers for hire for use as rolling stock moving in interstate commerce or by lessors under a lease of one year or longer, executed or in effect at the time of purchase of personal property, to interstate carriers for hire for use as rolling stock moving in interstate commerce so long as so used by such interstate carriers for hire, and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
(4a) a sale or transfer of tangible personal property as an incident to the rendering of service for owners, lessors, or shippers of tangible personal property which is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce so long as so used by interstate carriers for hire, and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
(4a-5) on and after July 1, 2003 and through June 30, 2004, a sale or transfer of a motor vehicle of the second HB3659 Enrolled - 16 - LRB096 09388 RCE 19545 b division with a gross vehicle weight in excess of 8,000 pounds as an incident to the rendering of service if that motor vehicle is subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code.
Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division:
(i) with a gross vehicle weight rating in excess of 8,000 pounds;
(ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code;
and (iii) that are primarily used for commercial purposes.
Through June 30, 2005, this exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act.
For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
(5) a sale or transfer of machinery and equipment used primarily in the process of the manufacturing or assembling, either in an existing, an expanded or a new manufacturing facility, of tangible personal property for wholesale or retail sale or lease, whether such sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned HB3659 Enrolled - 17 - LRB096 09388 RCE 19545 b by the manufacturer or some other person, or whether such sale or lease is made apart from or as an incident to the seller's engaging in a service occupation and the applicable tax is a Service Use Tax or Service Occupation Tax, rather than Use Tax or Retailers' Occupation Tax.
(5a) the repairing, reconditioning or remodeling, for a common carrier by rail, of tangible personal property which belongs to such carrier for hire, and as to which such carrier receives the physical possession of the repaired, reconditioned or remodeled item of tangible personal property in Illinois, and which such carrier transports, or shares with another common carrier in the transportation of such property, out of Illinois on a standard uniform bill of lading showing the person who repaired, reconditioned or remodeled the property to a destination outside Illinois, for use outside Illinois.
(5b) a sale or transfer of tangible personal property which is produced by the seller thereof on special order in such a way as to have made the applicable tax the Service Occupation Tax or the Service Use Tax, rather than the Retailers' Occupation Tax or the Use Tax, for an interstate carrier by rail which receives the physical possession of such property in Illinois, and which transports such property, or shares with another common carrier in the transportation of such property, out of Illinois on a standard uniform bill of lading showing the seller of the HB3659 Enrolled - 18 - LRB096 09388 RCE 19545 b property as the shipper or consignor of such property to a destination outside Illinois, for use outside Illinois.
(6) until July 1, 2003, a sale or transfer of distillation machinery and equipment, sold as a unit or kit and assembled or installed by the retailer, which machinery and equipment is certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of such user and not subject to sale or resale.
(7) at the election of any serviceman not required to be otherwise registered as a retailer under Section 2a of the Retailers' Occupation Tax Act, made for each fiscal year sales of service in which the aggregate annual cost price of tangible personal property transferred as an incident to the sales of service is less than 35%, or 75% in the case of servicemen transferring prescription drugs or servicemen engaged in graphic arts production, of the aggregate annual total gross receipts from all sales of service.
The purchase of such tangible personal property by the serviceman shall be subject to tax under the Retailers' Occupation Tax Act and the Use Tax Act.
However, if a primary serviceman who has made the election described in this paragraph subcontracts service work to a secondary serviceman who has also made the election described in this paragraph, the primary serviceman does not incur a Use Tax HB3659 Enrolled - 19 - LRB096 09388 RCE 19545 b liability if the secondary serviceman (i) has paid or will pay Use Tax on his or her cost price of any tangible personal property transferred to the primary serviceman and (ii) certifies that fact in writing to the primary serviceman.
Tangible personal property transferred incident to the completion of a maintenance agreement is exempt from the tax imposed pursuant to this Act.
Exemption (5) also includes machinery and equipment used in the general maintenance or repair of such exempt machinery and equipment or for in-house manufacture of exempt machinery and equipment.
For the purposes of exemption (5), each of these terms shall have the following meanings:
(1) "manufacturing process" shall mean the production of any article of tangible personal property, whether such article is a finished product or an article for use in the process of manufacturing or assembling a different article of tangible personal property, by procedures commonly regarded as manufacturing, processing, fabricating, or refining which changes some existing material or materials into a material with a different form, use or name.
In relation to a recognized integrated business composed of a series of operations which collectively constitute manufacturing, or individually constitute manufacturing operations, the manufacturing process shall be deemed to commence with the first operation or stage of production in the series, and shall not be deemed to end until the completion of HB3659 Enrolled - 20 - LRB096 09388 RCE 19545 b the final product in the last operation or stage of production in the series;
and further, for purposes of exemption (5), photoprocessing is deemed to be a manufacturing process of tangible personal property for wholesale or retail sale;
(2) "assembling process" shall mean the production of any article of tangible personal property, whether such article is a finished product or an article for use in the process of manufacturing or assembling a different article of tangible personal property, by the combination of existing materials in a manner commonly regarded as assembling which results in a material of a different form, use or name;
(3) "machinery" shall mean major mechanical machines or major components of such machines contributing to a manufacturing or assembling process;
and (4) "equipment" shall include any independent device or tool separate from any machinery but essential to an integrated manufacturing or assembly process;
including computers used primarily in a manufacturer's computer assisted design, computer assisted manufacturing (CAD/CAM) system;
or any subunit or assembly comprising a component of any machinery or auxiliary, adjunct or attachment parts of machinery, such as tools, dies, jigs, fixtures, patterns and molds;
or any parts which require periodic replacement in the course of normal operation;
but shall not include hand tools.
Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a product being manufactured or assembled HB3659 Enrolled - 21 - LRB096 09388 RCE 19545 b for wholesale or retail sale or lease.
The purchaser of such machinery and equipment who has an active resale registration number shall furnish such number to the seller at the time of purchase.
The user of such machinery and equipment and tools without an active resale registration number shall prepare a certificate of exemption for each transaction stating facts establishing the exemption for that transaction, which certificate shall be available to the Department for inspection or audit.
The Department shall prescribe the form of the certificate.
Any informal rulings, opinions or letters issued by the Department in response to an inquiry or request for any opinion from any person regarding the coverage and applicability of exemption (5) to specific devices shall be published, maintained as a public record, and made available for public inspection and copying.
If the informal ruling, opinion or letter contains trade secrets or other confidential information, where possible the Department shall delete such information prior to publication.
Whenever such informal rulings, opinions, or letters contain any policy of general applicability, the Department shall formulate and adopt such policy as a rule in accordance with the provisions of the Illinois Administrative Procedure Act.
On and after July 1, 1987, no entity otherwise eligible under exemption (3) of this Section shall make tax free purchases unless it has an active exemption identification HB3659 Enrolled - 22 - LRB096 09388 RCE 19545 b number issued by the Department.
The purchase, employment and transfer of such tangible personal property as newsprint and ink for the primary purpose of conveying news (with or without other information) is not a purchase, use or sale of service or of tangible personal property within the meaning of this Act.
"Serviceman" means any person who is engaged in the occupation of making sales of service.
"Sale at retail" means "sale at retail" as defined in the Retailers' Occupation Tax Act.
"Supplier" means any person who makes sales of tangible personal property to servicemen for the purpose of resale as an incident to a sale of service.
"Serviceman maintaining a place of business in this State", or any like term, means and includes any serviceman:
1.
having or maintaining within this State, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within this State under the authority of the serviceman or its subsidiary, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether such serviceman or subsidiary is licensed to do business in this State;
1.1.
beginning July 1, 2011, having a contract with a person located in this State under which the person, for a HB3659 Enrolled - 23 - LRB096 09388 RCE 19545 b commission or other consideration based on the sale of service by the serviceman, directly or indirectly refers potential customers to the serviceman by a link on the person's Internet website.
The provisions of this paragraph 1.1 shall apply only if the cumulative gross receipts from sales of service by the serviceman to customers who are referred to the serviceman by all persons in this State under such contracts exceed $10,000 during the preceding 4 quarterly periods ending on the last day of March, June, September, and December;
1.2.
beginning July 1, 2011, having a contract with a person located in this State under which:
A.
the serviceman sells the same or substantially similar line of services as the person located in this State and does so using an identical or substantially similar name, trade name, or trademark as the person located in this State;
and B.
the serviceman provides a commission or other consideration to the person located in this State based upon the sale of services by the serviceman.
The provisions of this paragraph 1.2 shall apply only if the cumulative gross receipts from sales of service by the serviceman to customers in this State under all such contracts exceed $10,000 during the preceding 4 quarterly periods ending on the last day of March, June, September, and December;
HB3659 Enrolled - 24 - LRB096 09388 RCE 19545 b 2.
soliciting orders for tangible personal property by means of a telecommunication or television shopping system (which utilizes toll free numbers) which is intended by the retailer to be broadcast by cable television or other means of broadcasting, to consumers located in this State;
3.
pursuant to a contract with a broadcaster or publisher located in this State, soliciting orders for tangible personal property by means of advertising which is disseminated primarily to consumers located in this State and only secondarily to bordering jurisdictions;
4.
soliciting orders for tangible personal property by mail if the solicitations are substantial and recurring and if the retailer benefits from any banking, financing, debt collection, telecommunication, or marketing activities occurring in this State or benefits from the location in this State of authorized installation, servicing, or repair facilities;
5.
being owned or controlled by the same interests which own or control any retailer engaging in business in the same or similar line of business in this State;
6.
having a franchisee or licensee operating under its trade name if the franchisee or licensee is required to collect the tax under this Section;
7.
pursuant to a contract with a cable television operator located in this State, soliciting orders for tangible personal property by means of advertising which is HB3659 Enrolled - 25 - LRB096 09388 RCE 19545 b transmitted or distributed over a cable television system in this State;
or 8.
engaging in activities in Illinois, which activities in the state in which the supply business engaging in such activities is located would constitute maintaining a place of business in that state.
93-759, eff.
92-484, eff.
1-1-05.) Section 99.
8-23-01;
93-23, eff.
6-20-03;
93-24, eff.
6-20-03;
93-1033, eff.
9-3-04.) Section 97.
Severability.
The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.
Section 99.
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Action History

  1. Public Act . . . . . . . . . 96-1544

  2. Effective Date March 10, 2011

  3. Governor Approved

  4. Sent to the Governor

  5. Passed Both Houses

  6. Senate Floor Amendment No. 3 House Concurs 088-029-000

  7. Senate Committee Amendment No. 1 House Concurs 088-029-000

  8. Added Co-Sponsor Rep. Naomi D. Jakobsson

  9. Added Co-Sponsor Rep. Lisa M. Dugan

  10. Added Co-Sponsor Rep. Sara Feigenholtz

  11. Added Co-Sponsor Rep. Greg Harris

  12. Added Co-Sponsor Rep. Mary E. Flowers

  13. Added Co-Sponsor Rep. Harry Osterman

  14. Added Co-Sponsor Rep. Daniel V. Beiser

  15. Added Co-Sponsor Rep. Michael K. Smith

  16. Added Co-Sponsor Rep. Mark H. Beaubien, Jr.

  17. Added Co-Sponsor Rep. Roger L. Eddy

  18. Added Chief Co-Sponsor Rep. Frank J. Mautino

  19. Added Chief Co-Sponsor Rep. Linda Chapa LaVia

  20. Added Chief Co-Sponsor Rep. Brandon W. Phelps

  21. Added Chief Co-Sponsor Rep. Dan Reitz

  22. Senate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Revenue & Finance Committee; 009-000-000

  23. Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Revenue & Finance Committee; 009-000-000

  24. Senate Floor Amendment No. 3 Motion to Concur Referred to Revenue & Finance Committee

  25. Senate Committee Amendment No. 1 Motion to Concur Referred to Revenue & Finance Committee

  26. Senate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee

  27. Senate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee

  28. Senate Floor Amendment No. 3 Motion Filed Concur Rep. Patrick J. Verschoore

  29. Senate Committee Amendment No. 1 Motion Filed Concur Rep. Patrick J. Verschoore

  30. Placed on Calendar Order of Concurrence Senate Amendment(s) 1, 3

  31. Arrived in House

  32. Senate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a)

  33. Third Reading - Passed; 049-006-003

  34. Placed on Calendar Order of 3rd Reading

  35. Senate Floor Amendment No. 3 Adopted; Cullerton

  36. Recalled to Second Reading

  37. Added as Alternate Chief Co-Sponsor Sen. Jeffrey M. Schoenberg

  38. Senate Floor Amendment No. 3 Recommend Do Adopt Executive; 012-000-001

  39. Added as Alternate Chief Co-Sponsor Sen. Christine Radogno

  40. Senate Floor Amendment No. 3 Assignments Refers to Executive

  41. Senate Floor Amendment No. 3 Referred to Assignments

  42. Senate Floor Amendment No. 3 Filed with Secretary by Sen. John J. Cullerton

  43. Rule 2-10 Committee/3rd Reading Deadline Established As January 11, 2011

  44. Placed on Calendar Order of 3rd Reading January 4, 2011

  45. Approved for Consideration Assignments

  46. Alternate Chief Sponsor Changed to Sen. John J. Cullerton

  47. Senate Floor Amendment No. 2 Re-referred to Assignments; Pursuant to Senate Rule 3-9(b).

  48. Pursuant to Senate Rule 3-9(b) / Referred to Assignments

  49. Senate Floor Amendment No. 2 Postponed - Executive

  50. Senate Floor Amendment No. 2 Assignments Refers to Executive

  51. Senate Floor Amendment No. 2 Referred to Assignments

  52. Senate Floor Amendment No. 2 Filed with Secretary by Sen. Dan Kotowski

  53. Alternate Chief Sponsor Changed to Sen. Dan Kotowski

  54. Placed on Calendar Order of 3rd Reading May 3, 2010

  55. Second Reading

  56. Placed on Calendar Order of 2nd Reading April 30, 2010

  57. Do Pass as Amended Revenue; 006-001-000

  58. Senate Committee Amendment No. 1 Adopted

  59. Senate Committee Amendment No. 1 Assignments Refers to Revenue

  60. Senate Committee Amendment No. 1 Referred to Assignments

  61. Senate Committee Amendment No. 1 Filed with Secretary by Sen. John J. Cullerton

  62. Alternate Chief Sponsor Changed to Sen. John J. Cullerton

  63. Rule 2-10 Committee Deadline Established As May 7, 2010

  64. Assigned to Revenue

  65. Alternate Chief Sponsor Changed to Sen. Louis S. Viverito

  66. Referred to Assignments

  67. First Reading

  68. Chief Senate Sponsor Sen. Michael Bond

  69. Placed on Calendar Order of First Reading February 10, 2010

  70. Arrive in Senate

  71. Third Reading - Short Debate - Passed 096-001-002

  72. Placed on Calendar Order of 3rd Reading - Short Debate

  73. Second Reading - Short Debate

  74. Placed on Calendar 2nd Reading - Short Debate

  75. Approved for Consideration Rules Committee; 003-002-000

  76. Rule 19(a) / Re-referred to Rules Committee

  77. Held on Calendar Order of Second Reading - Short Debate

  78. Second Reading - Short Debate

  79. Placed on Calendar 2nd Reading - Short Debate

  80. Do Pass / Short Debate Revenue & Finance Committee; 011-001-000

  81. Remains in Revenue & Finance Committee

  82. Recommends Do Pass Subcommittee/ Revenue & Finance Committee; 003-000-000

  83. Assigned to Revenue & Finance Committee

  84. Referred to Rules Committee

  85. First Reading

  86. Filed with the Clerk by Rep. Patrick J. Verschoore

Sponsors

  • Patrick J. Verschoore · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 1 co-sponsors · 182 not signed on · 8 voted No

Sponsors (0)

None.

Co-sponsors (1)

  • Patrick J. Verschoore

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Concurrence

Passed 88 Yea · 29 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 11200
Unaffiliated 742401
Republican 3300
Total 882901
% of votes cast 75%25%0%1%
How each member voted (118)
Member Party Vote
Jakobsson — Yea
Jefferson — Yea
Leitch — Nay
Madigan — Yea
Mendoza — Yea
Sullivan — Yea
Gordon, Careen — Yea
Mitchell, Jerry — Yea
Moffitt — Nay
Mulligan — Not Voting
Hannig — Yea
Harris — Yea
Nekritz — Yea
Osmond — Yea
Hernandez — Yea
Osterman — Yea
Watson — Yea
Pihos — Yea
Sente — Nay
Sommer — Nay
Howard — Yea
Thapedi — Yea
Tryon — Nay
Davis, Monique — Yea
Turner — Yea
Verschoore — Yea
Wait — Yea
Brady — Nay
Mitchell, Bill — Nay
Winters — Nay
Gordon, Jehan — Nay
Yarbrough — Yea
Zalewski — Yea
Hays, Chad — Nay
Cavaletto — Nay
Coladipietro — Yea
Cross — Yea
Cultra — Nay
Currie — Yea
D'Amico — Yea
Eddy — Nay
Farnham — Nay
Franks — Nay
Golar — Yea
Hatcher — Nay
Holbrook — Yea
Jackson — Yea
Kosel — Nay
Lang — Yea
May — Yea
McAuliffe — Yea
McCarthy — Yea
Mell — Yea
Senger — Yea
Soto — Yea
Reitz — Yea
Lyons — Yea
Bradley — Yea
McGuire — Yea
Burke — Yea
Dugan — Yea
Dunkin — Yea
Durkin — Yea
Flider — Yea
Flowers — Yea
Fortner — Yea
Froehlich — Yea
O'Sullivan — Yea
Phelps — Yea
Poe — Nay
Pritchard — Yea
Ramey — Yea
Reboletti — Yea
Reis — Nay
Riley — Yea
Sacia — Nay
Saviano — Yea
Schmitz — Nay
Acevedo — Yea
Arroyo — Yea
Bassi — Yea
Beaubien — Yea
Beiser — Yea
Bellock — Yea
Mathias — Yea
Berrios — Yea
Mautino — Yea
Biggins — Yea
Boland — Nay
Bost — Yea
Brauer — Yea
Burns — Yea
Carberry — Yea
Cole — Nay
Colvin — Yea
Connelly — Yea
McAsey — Nay
Coulson — Yea
Chapa LaVia — Yea
Anthony DeLuca Democrat Yea
Camille Y. Lilly Democrat Yea
Fred Crespo Democrat Nay
Jay Hoffman Democrat Yea
La Shawn K. Ford Democrat Yea
Lakesia Collins Democrat Yea
Mark L. Walker Democrat Yea
Nicholas K. Smith Democrat Yea
Rita Mayfield Democrat Nay
Robert "Bob" Rita Democrat Yea
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Nay
Chapin Rose Republican Nay
Chris Miller Republican Yea
Jil Tracy Republican Yea
Kyle Moore Republican Yea
Norine K. Hammond Republican Nay

Third Reading

Passed 49 Yea · 6 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 41304
Democrat 8100
Republican 0200
Total 49604
% of votes cast 83%10%0%7%
How each member voted (59)
Member Party Vote
Haine — Yea
Kotowski — Yea
Link — Yea
Meeks — Yea
Millner — Yea
Mulroe — Yea
Muñoz — Yea
Noland — Yea
Schoenberg — Yea
Silverstein — Yea
Steans — Yea
Trotter — Yea
Viverito — Yea
Wilhelmi — Yea
Brady — Yea
Jacobs — Yea
Sullivan — Yea
Johnson — Yea
Jones, J. — Yea
Demuzio — Yea
Cullerton — Yea
Clayborne — Yea
Crotty — Yea
Dillard — Yea
Garrett — Yea
Hendon — Yea
Hutchinson — Yea
McCarter — Nay
Duffy — Nay
Frerichs — Yea
Pankau — Yea
Radogno — Yea
Raoul — Yea
Righter — Not Voting
Risinger — Not Voting
Rutherford — Yea
Sandack — Yea
Sandoval — Not Voting
Lauzen — Yea
Luechtefeld — Yea
Maloney — Yea
Althoff — Not Voting
Martinez — Yea
Bivins — Nay
Bomke — Yea
Bond — Yea
Burzynski — Yea
Forby — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Nay
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Nay
Sue Rezin Republican Nay

Third Reading

Passed 96 Yea · 1 Nay · 21 Other
Party YeaNayPresentNot Voting
Unaffiliated 831019
Democrat 9002
Republican 4000
Total 961021
% of votes cast 81%1%0%18%
How each member voted (118)
Member Party Vote
Graham — Yea
Jakobsson — Yea
Jefferson — Not Voting
Nekritz — Yea
Lang — Yea
Leitch — Yea
May — Yea
McAuliffe — Yea
McCarthy — Yea
Senger — Yea
Sente — Yea
Reitz — Yea
Lyons — Yea
Dugan — Yea
Dunkin — Yea
Durkin — Yea
Eddy — Yea
Farnham — Yea
Flider — Yea
Kosel — Yea
Bradley — Yea
McGuire — Yea
Madigan — Not Voting
Brady — Yea
Mell — Yea
Mendoza — Yea
Mitchell, Bill — Yea
Mulligan — Not Voting
Mitchell, Jerry — Yea
Gordon, Careen — Yea
Myers — Yea
Gordon, Jehan — Yea
Osterman — Yea
Pihos — Yea
Sommer — Yea
Hannig — Yea
Harris — Yea
Soto — Yea
Thapedi — Yea
Watson — Yea
Hernandez — Yea
Tryon — Yea
Turner — Yea
Verschoore — Yea
Wait — Not Voting
Washington — Yea
Yarbrough — Yea
Sullivan — Nay
Zalewski — Yea
Davis, Monique — Not Voting
Burke — Not Voting
Cavaletto — Yea
Coladipietro — Not Voting
Cole — Yea
Connelly — Yea
Cross — Yea
Cultra — Yea
Currie — Yea
D'Amico — Yea
Flowers — Not Voting
Fortner — Yea
Franks — Not Voting
Fritchey — Not Voting
Froehlich — Yea
Hamos — Yea
Hatcher — Yea
Holbrook — Yea
Jackson — Yea
Howard — Not Voting
Colvin — Not Voting
Golar — Not Voting
Osmond — Yea
Phelps — Yea
Poe — Yea
Pritchard — Yea
Ramey — Yea
Reboletti — Not Voting
Reis — Yea
Riley — Yea
Sacia — Yea
Saviano — Yea
Schmitz — Yea
Winters — Yea
Acevedo — Yea
Arroyo — Not Voting
Bassi — Yea
Beaubien — Yea
Beiser — Yea
Bellock — Yea
Mathias — Yea
Berrios — Yea
Mautino — Yea
Biggins — Yea
Black — Not Voting
Boland — Not Voting
Bost — Yea
Brauer — Yea
Brosnahan — Not Voting
Burns — Yea
McAsey — Yea
Moffitt — Yea
Coulson — Not Voting
Chapa LaVia — Yea
Anthony DeLuca Democrat Yea
Fred Crespo Democrat Yea
Jay Hoffman Democrat Yea
La Shawn K. Ford Democrat Yea
Lakesia Collins Democrat Yea
Mark L. Walker Democrat Yea
Nicholas K. Smith Democrat Not Voting
Patrick J. Joyce Democrat Not Voting
Robert "Bob" Rita Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Yea
Chapin Rose Republican Yea
Chris Miller Republican Yea
Jil Tracy Republican Yea

Subjects

taxation
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Frequently asked questions

What does HB 3659 do?
Amends the Property Tax Code. Provides that publication fees are not to exceed stated amounts (instead of are stated amounts). Effective immediately.
Who sponsors HB 3659?
HB 3659 is sponsored by Patrick J. Verschoore.
What is the current status of HB 3659?
This bill has been enacted into law. Introduced February 24, 2009. Enacted.
Where can I track HB 3659?
Track HB 3659 free on One Click Politics — get push/email alerts when it moves.

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