Administrative Hearings

86 Illinois Administrative Code - Section 200.175

This Section 200.175 of the Department’s Administrative Hearings Rules is being amended to clarify that the Department has the authority to grant late discretionary hearings for Notices of Deficiency issued under the Income Tax Act in the same manner
as Notices of Tax Liability issued under the Retailers’ Occupation Tax Act. The authority to grant late discretionary hearings for Notices of Deficiency issued under the Income Tax Act was provided in Public Act 97-1129.

  • 1st Notice Begins: 6/25/2021
  • 1st Notice Ends: 8/27/2021
  • 2nd Notice Submitted: 9/14/2021
  • Formal JCAR Meeting: 10/19/2021
  • Final Rule:

Leveling the Playing Field for Illinois Retail Act

86 Illinois Administrative Code - Sections 131.105, 131.107, 131.110, 131.120, 131.130, 131.135, 131.140, 131.145, 131.150, 131.155, 131.160, 131.170, 131.175, 131. ILLUSTRATION A

These rules are being amended in Section 131.107 to clarify the different types of retailers subject to the provisions of the Leveling the Playing Field for IL Retail Act ("Act"). They specifically amend the current regulations to provide that the Metropolitan Pier and Exposition Authority Retailers' Occupation Tax ("MPEA") and the Chicago Home Rule Municipal Soft Drink Tax ("Soft Drink Tax") are required to be collected and remitted by food delivery services that are considered marketplace facilitators meeting a tax remittance threshold. The rules further provide information regarding the manner in which these taxes are imposed under these circumstances. This amendment reverses provisions of Compliance Alert 2021-01 issued by the Department with regard to collection of these taxes. In connection with this change, provisions are added to emphasize, as required elsewhere in the regulations, that food delivery services that are considered marketplace facilitators under the Act must provide food service establishments with a certification that the food delivery service assumes the rights and duties of a retailer under the Retailers' Occupation Tax Act and all applicable local taxes administered by the Department for sales made by the food service establishment on the marketplace, and that it will remit all such taxes for such sales. The rules specify additional requirements for this certification, and clarify that food service establishments that have received this certification are generally relieved of liability for tax on such sales (except as provided in Section 2 of the Retailers' Occupation Tax Act and Section 131.150 (b)-(c) of the rules, or as provided in Section 131.135 (f) of the rules). This section further clarifies those taxes which may be incurred by remote retailers, marketplace sellers and marketplace facilitators that are not subject to the Act, which include both taxes that are and are not administered by the Department. Section 131.110 is being amended to provide that remote retailers exclusively making tax exempt sales (i.e., 100% of their sales are nontaxable) are not subject to the provisions of the Act. In addition, Section 131.120 is being amended to specify that, for remote retailers, occasional sales are excluded from consideration when calculating tax remittance thresholds. However, Section 131.140, governing marketplace facilitators, is amended to provide that occasional sales must be included when calculating tax remittance thresholds. Throughout the regulations, provisions are being amended to specify that retailers incurring Retailers' Occupation Tax based on origin sourcing must consult the provisions of 86 Ill. Adm. Code 270.115 (c) and (d) to determine the location at which selling activities occur, and therefore, which local taxes will be incurred. Section 131.145 is being amended to clarify books and records requirements for marketplace facilitators, including the manner in which sales made by marketplace sellers that possess active exemption identification numbers ("E" numbers) must be documented. Numerous examples related to auctioneers are being removed, due to Public Act 102-0634 changing the applicability of the Act to these types of retailers. Illustration A is being amended to provide additional clarity.

  • 1st Notice Begins: 10/29/2021
  • 1st Notice Ends: 12/13/2021
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Retailers’ Occupation Tax

86 Illinois Administrative Code - Section 130.120

This amended regulation implements Public Act 101-0629 which retroactively reinstated the Aircraft Maintenance exemption. This rule retroactively allows the exemption from December 31, 2014, when this exemption originally sunset, through the new sunset date of December 31, 2024. This amended regulation disallows any credit or refund for taxes paid from the original sunset date through the effective date of Public Act 101-0629 (February 5, 2020).

  • 1st Notice Begins: 4/9/2021
  • 1st Notice Ends: 5/24/2021
  • 2nd Notice Submitted: 7/13/2021
  • Formal JCAR Meeting: 8/18/2021
  • Final Rule:

Retailers’ Occupation Tax

86 Illinois Administrative Code - Section 130.2050

This amended regulation increases the presumed average cost of free meals provided to employees for purposes of establishing employers’ Use Tax liability from $0.75 to $3.50 to more accurately reflect true costs. This amended regulation also specifies tax is to be paid at the rate that would have been imposed when the employer acquired the goods from the supplier (generally low rate for groceries as the food was not initially purchased as food for immediate consumption), as this would be the taxable moment for these transactions. The presumed average cost of free meals has not been increased since 1977. The new amount was determined by adjusting the old amount for inflation.

  • 1st Notice Begins: 7/2/2021
  • 1st Notice Ends: 9/3/2021
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Telecommunications Excise Tax

86 Illinois Administrative Code - Section 495.111, 495.112

The rulemaking amends 86 Ill. Adm. Code 495, Telecommunications Excise Tax, by adding two new sections: Section 495.111, Registration of Retailers, and Section 495.112, Revocation of Certificate of Registration. The Telecommunications Excise Tax Act and Part 495 do not contain provisions regarding registration of telecommunications retailers. Under the Act, telecommunications retailers are responsible for collecting and remitting the tax and filing returns. The rulemaking sets forth information to be included on an application for certificate of registration, circumstances under which the Department may decline to issue a certificate, and an opportunity for hearing after such a declination. Section 495.112 permits the Department to revoke a certificate of registration if a retailer is in violation of the Act or rules after notice and an opportunity for hearing.

  • 1st Notice Begins: 4/9/2021
  • 1st Notice Ends: 5/24/2021
  • 2nd Notice Submitted: 7/13/2021
  • Formal JCAR Meeting: 8/18/2021
  • Final Rule: