# 86 Ill. Adm. Code 150.201: Section 150.201 General Definitions

> Illinois · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T86_P150_S150_201

## Section

- **Citation:** 86 Ill. Adm. Code 150.201
- **Heading:** Section 150.201 General Definitions
- **Jurisdiction:** Illinois
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Illinois Administrative Code / Title 86 REVENUE / CHAPTER I: DEPARTMENT OF REVENUE / Part 150 USE TAX / Section 150.201 General Definitions

## Text

Section 150
Section 150.201  General
Definitions
"Act"
means the Use Tax Act [35 ILCS 105]
"Department" means
the Department of Revenue.
"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.
"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.
For purposes of this Part,
"remote retailer" has the same meaning as defined in 86 Ill. Adm.
Code 131.105.
"Retailer" means and
includes every person engaged in the business of
selling tangible personal
property for use and not for resale.
Effective October 1, 1974,
a
person who is the recipient of a grant or contract under Title VII of the Older
Americans Act of 1965
[42 U.S.C. 3001 et seq.]
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
the Act
with respect to such transactions.
[35 ILCS 105/2]
Nonprofit Sellers
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:
to the extent of sales by such
person to its members, students, patients or inmates of tangible personal property
to be used primarily for the purposes of such person, or
to the extent of sales by such
person of tangi
eir guests) is a retailer with respect to
such transactions, excepting only a person organized and operated exclusively
for charitable, religious or educational purposes either:
to the extent of sales by such
person to its members, students, patients or inmates of tangible personal property
to be used primarily for the purposes of such person, or
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
schoolbooks
and school
supplies by schools at retail to students is not "primarily for the
purposes of" the school which does such selling.
This definition
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.
Special Order Sales
A person who holds
oneself
out
as being engaged (or who habitually engages) in selling tangible personal
property at retail is a retailer
under the Act
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
ion) 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.
When Construction Contractor or
Real Estate Developer is a Retailer
A construction contractor or real
estate developer
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 nontaxable
business, is a retailer to the extent of the value of the tangible personal
property so transferred.
[35 ILCS 105/2]  See also 86 Ill. Adm. Code
130.1940.
Isolated or Occasional Sales
The isolated or occasional sale
of tangible personal property at retail by a person who does not hold
oneself
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
under the Act.  [35 ILCS
105/2]
Leasing or Renting Motor Vehicles
A person who is engaged in the
business of leasing or renting motor vehicles to others and who, in connection
with such business sells any used motor vehicle to a purchaser for
the
purchaser's
use and not for the purpose of resale, is a retailer engaged in the
business of selling tangible personal property at retail under
the Act
to
the extent of the value of the vehicle sold.  For the purpose of
this
paragraph,
"motor vehicle" has the meaning prescribed in Section
1-157 of the Illinois Vehicle Code
[625 ILCS 5]
, as now or hereafter
amended
icle to a purchaser for
the
purchaser's
use and not for the purpose of resale, is a retailer engaged in the
business of selling tangible personal property at retail under
the Act
to
the extent of the value of the vehicle sold.  For the purpose of
this
paragraph,
"motor vehicle" has the meaning prescribed in Section
1-157 of the Illinois Vehicle Code
[625 ILCS 5]
, as now or hereafter
amended.  (Nothing provided herein shall affect liability incurred under
the Act
because of the use of such motor vehicles as a lessor.)
[35
ILCS 105/1a]
"Retailer maintaining a
place of business in this State", or any like term, means and includes any
of the following retailers:
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 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.
[35 ILCS 105/2(1)]
It does not matter that an agent
may engage in business on the agent's own account in other transactions, nor
that the agent may act as an agent for other persons in other transactions, nor
that the agent is not an employee but is an independent contractor acting as an
agent.  The term "agent" is broader than the term
"employee"
r other place of business within
this State.
[35 ILCS 105/2(1)]
It does not matter that an agent
may engage in business on the agent's own account in other transactions, nor
that the agent may act as an agent for other persons in other transactions, nor
that the agent is not an employee but is an independent contractor acting as an
agent.  The term "agent" is broader than the term
"employee".  "Agent" includes anyone acting under the
principal's authority in an agency capacity.
Beginning July 1, 2011, a
retailer having a contract with a person located in this State under which:
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
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
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.
[35 ILCS 105/2(1.2)]
Beginning January 1, 2015,
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 providing to the potential customers a promotional
code or other mechanism that allows the retailer to track purchases referred by
such persons
ving 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 providing to the potential customers a promotional
code or other mechanism that allows the retailer to track purchases referred by
such persons.  Examples of mechanisms that allow the retailer to track
purchases referred by such persons include but are not limited to the use of a
link on the person's Internet website, promotional codes distributed through
the person's hand-delivered or mailed material, and promotional codes
distributed by the person through radio or other broadcast media.  The
provisions of this paragraph 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.  A retailer meeting the requirements
of this paragraph shall be presumed to be maintaining a place of business in
this State but may rebut this presumption by submitting proof that the
referrals or other activities pursued within this State by such persons were
not sufficient to meet the nexus standards of the United States Constitution
during the preceding 4 quarterly periods.
[35 ILCS 105/2(1.1)]
The following documentation is
required in order to rebut this presumption:
Retailer Agreement.  The retailer
must have an agreement that prohibits persons operating under the agreement
from engaging in any solicitation activities in Illinois that refer potential
customers to the retailer, including, but not limited to, distributing flyers,
coupons, newsletters, and other printed promotional materials or electronic
equivalents, verbal soliciting, initiating telephone calls, and sending e-mails
or text messages
an agreement that prohibits persons operating under the agreement
from engaging in any solicitation activities in Illinois that refer potential
customers to the retailer, including, but not limited to, distributing flyers,
coupons, newsletters, and other printed promotional materials or electronic
equivalents, verbal soliciting, initiating telephone calls, and sending e-mails
or text messages.  If the person in Illinois with whom the retailer has an
agreement is an organization or corporation, such as a club or nonprofit group,
the agreement must provide that the organization will maintain on its website
information alerting its members to the prohibition against each of the
solicitation activities described in this paragraph.  The agreement must be
maintained in the retailer's records and shall be made available to the Department
for inspection or audit.
Annual Certification.  The person
or persons operating under the agreement in Illinois shall certify by January 1
of each year, under penalty of perjury, that they have not engaged in any
prohibited solicitation activities in Illinois at any time during the previous
year.  If the person in Illinois with whom the retailer has an agreement is an
organization or corporation, the annual certification shall also include a
statement from the organization or corporation, signed by an officer of the
organization or corporation, certifying that its website includes information
directed at its members alerting them to the prohibition against the
solicitation activities described in this paragraph.  The certification should
be made on forms prescribed by the Department, must be completed and provided
to the retailer, must be maintained in the retailer's records, and shall be
made available to the Department for inspection or audit
hat its website includes information
directed at its members alerting them to the prohibition against the
solicitation activities described in this paragraph.  The certification should
be made on forms prescribed by the Department, must be completed and provided
to the retailer, must be maintained in the retailer's records, and shall be
made available to the Department for inspection or audit.  If the retailer
accepts a properly and timely completed certification in good faith and the
retailer does not know or have reason to know that the certification is false
or fraudulent, that certification will be conclusive proof that the person that
provided the certification was in compliance with the agreement for the year
covered by the certification.  If the retailer fails to obtain the
certifications from all persons operating under the agreements and fails to
make those records available upon the Department's request, the presumption
that the retailer is maintaining a place of business in Illinois will not be
rebutted.
Beginning October 1, 2018, a
retailer making sales of tangible personal property to purchasers in Illinois
from outside of Illinois if:
the cumulative gross receipts
from sales of tangible personal property to purchasers in Illinois are $100,000
or more; or
the retailer enters into 200 or
more separate transactions for the sale of tangible personal property to
purchasers in Illinois.
Beginning January 1, 2020,
neither the gross receipts from nor the number of separate transactions for
sales of tangible personal property to purchasers in Illinois that a retailer
makes through a marketplace facilitator and for which the retailer has received
a certification from the marketplace facilitator pursuant to Section 2d of
the
Act
shall be included for purposes of determining whether the retailer has
met the thresholds of this paragraph
om nor the number of separate transactions for
sales of tangible personal property to purchasers in Illinois that a retailer
makes through a marketplace facilitator and for which the retailer has received
a certification from the marketplace facilitator pursuant to Section 2d of
the
Act
shall be included for purposes of determining whether the retailer has
met the thresholds of this paragraph.
[35 ILCS 105/2(9)]
Beginning January 1, 2020, a
marketplace facilitator who meets either of the following thresholds is
considered the retailer for each sale of tangible personal property made
through its marketplace:
the cumulative gross receipts
from sales of tangible personal property to purchasers in Illinois by the
marketplace facilitator and by marketplace sellers selling through the
marketplace are $100,000 or more; or
the marketplace facilitator and
marketplace sellers selling through the marketplace cumulatively enter into 200
or more separate transactions for the sale of tangible personal property to
purchasers in Illinois.
[35 ILCS 105/2(10) and 35 ILCS 105/2d]
For purposes of this definition, a
retailer
without physical presence in this State
or
a marketplace
facilitator
shall determine on a quarterly basis, ending on the last day of
March, June, September, and December, whether
it
meets either of
the
foregoing
criteria for the preceding 12-month period.  If the retailer
or
marketplace facilitator
meets the threshold of either
criteria
for a
12-month period,
it
is considered a retailer maintaining a place of
business in this State and is required to collect and remit
use tax
and
file returns for one year.
At the end of that one-year
period, the retailer
or marketplace facilitator
shall determine whether
it
met the threshold of either
criteria
during the preceding 12-month
period
itator
meets the threshold of either
criteria
for a
12-month period,
it
is considered a retailer maintaining a place of
business in this State and is required to collect and remit
use tax
and
file returns for one year.
At the end of that one-year
period, the retailer
or marketplace facilitator
shall determine whether
it
met the threshold of either
criteria
during the preceding 12-month
period.  If the retailer
or marketplace facilitator
met either of the
criteria for the preceding 12-month period,
it
is considered a retailer
maintaining a place of business in this State and is required to collect and
remit
use tax
and file returns for the subsequent year.
If, at the end of a one-year
period, a retailer
or marketplace facilitator
that was required to
collect and remit the
use tax
determines that
it
did not meet the
threshold in either
criteria
during the preceding 12-month period, the
retailer
or marketplace facilitator
shall subsequently determine on a
quarterly basis, ending on the last day of March, June, September, and
December, whether
it
meets the threshold of either
criteria
for
the preceding 12-month period.
[35 ILCS 105/2(9) and 35 ILCS 105/2d]
NOTE:  Beginning January 1, 2021,
retailers without physical presence in this State and marketplace facilitators
meeting either tax remittance threshold as set out in 86 Ill. Adm. Code
131.115(a) and 131.135(a), respectively, are liable for all applicable State
and locally imposed retailers' occupation taxes administered by the Department
of Revenue on all sales made to Illinois purchasers and are no longer only
mandatory Use Tax collectors.  (See 86 Ill. Adm. Code 131.115 and 131.135)
lace facilitators
meeting either tax remittance threshold as set out in 86 Ill. Adm. Code
131.115(a) and 131.135(a), respectively, are liable for all applicable State
and locally imposed retailers' occupation taxes administered by the Department
of Revenue on all sales made to Illinois purchasers and are no longer only
mandatory Use Tax collectors.  (See 86 Ill. Adm. Code 131.115 and 131.135).
"Sale at retail"
means any transfer of the ownership of or 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
[35 ILCS 120]
, as
incorporated by reference into Section 12 of
the 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
le 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 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 provided
in this
definition,
and services, but, prior to January 1, 2020 and beginning again
on January 1, 2022, 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; beginning January 1, 2020 and until
January 1, 2022, "selling price" includes the portion of the value of
or credit given for traded-in motor vehicles of the First Division as defined
in Section
in
on January 1, 2022, 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; beginning January 1, 2020 and until
January 1, 2022, "selling price" includes the portion of the value of
or credit given for traded-in motor vehicles of the First Division as defined
in Section 1-146 of the Illinois Vehicle Code
[625 ILCS 5]
of like kind
and character as that which is being sold that exceeds $10,000.  "Selling
price" 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 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
the 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.  "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 Tax Act, and on account of the seller's duty to collect, from the
purchaser, any cigarette tax imposed by a home rule unit
nistered by the Department.  "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 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 sale.
"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:  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.  "Use" does not mean
demonstration use or interim use of tangible personal property by a retailer
before
the retailer
sells that tangible personal property.  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
retailer's
original cost price the tax imposed by
the Act
, and no credit for that
tax is permitted if the watercraft or aircraft is subsequently sold by the retailer
nal property by a retailer
before
the retailer
sells that tangible personal property.  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
retailer's
original cost price the tax imposed by
the Act
, and no credit for that
tax is permitted if the watercraft or aircraft is subsequently sold by the retailer.
"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
which is sold in the regular
course of business or
which the person incorporating
such ingredient or constituent therein has undertaken at the time of purchase
to cause to be transported in interstate commerce to destinations outside the
State of Illinois:  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.
"Watercraft" means a
Class 2, Class 3, or Class 4 watercraft as defined in Section 3-2 of the Boat
Registration and Safety Act
[625 ILCS 45]
, a personal watercraft, or any
boat equipped with an inboard motor.
[35 ILCS 105/2]

## Nearby sections

- [86 Ill. Adm. Code 150.201 Section 150.201  General Definitions](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T86_P150_S150_201.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T86_P150_S150_201. Check the current official text before relying on it. Not legal advice.