(35 ILCS 185/Art. 5 heading)

(35 ILCS 185/5-1) Sec. 5-1. Short title. This Article may be cited as the Leveling the Playing Field for Illinois Retail Act. References in this Article to "this Act" means this Article. (Source: P.A. 101-31, eff. 6-28-19.)

(35 ILCS 185/5-5) Sec. 5-5. Findings. The General Assembly finds that certified service providers and certified automated systems simplify use and occupation tax compliance for out-of-state sellers, which fosters higher levels of accurate tax collection and remittance and generates administrative savings and new marginal tax revenue for both State and local taxing jurisdictions. By making the services of certified service providers and certified automated systems available to remote retailers without charge as provided in this Act, the State will substantially eliminate the burden on those remote retailers to collect and remit both State and local taxing jurisdiction use and occupation taxes. While providing a means for remote retailers to collect and remit tax on an even basis with Illinois retailers, this Act also protects existing local tax revenue streams by retaining origin sourcing for all transactions by retailers maintaining a physical presence in Illinois. (Source: P.A. 101-31, eff. 6-28-19.)

(35 ILCS 185/5-10) Sec. 5-10. Definitions. As used in this Act:"Certified service provider" means an agent certified by the Department to perform the remote retailer's use and occupation tax functions, as outlined in the contract between the State and the certified service provider."Certified automated system" means an automated software system that is certified by the State as meeting all performance and tax calculation standards required by Department rules."Department" means the Department of Revenue."Remote retailer" means a retailer as defined in Section 1 of the Retailers' Occupation Tax Act that has an obligation to collect State and local retailers' occupation tax under subsection (b) of Section 2 of the Retailers' Occupation Tax Act."Retailers' occupation tax" means the tax levied under the Retailers' Occupation Tax Act and all applicable local retailers' occupation taxes collected by the Department in conjunction with the State retailers' occupation tax. (Source: P.A. 101-31, eff. 6-28-19.)

(35 ILCS 185/5-15) Sec. 5-15. Certification of certified service providers. The Department shall, no later than December 31, 2019, establish standards for the certification of certified service providers and certified automated systems and may act jointly with other states to accomplish these ends.The Department may take other actions reasonably required to implement the provisions of this Act, including the adoption of rules and emergency rules and the procurement of goods and services, which also may be coordinated jointly with other states. (Source: P.A. 101-31, eff. 6-28-19.)

(35 ILCS 185/5-20) Sec. 5-20. Provision of databases. The Department shall, no later than July 1, 2020: (1) provide and maintain an electronic, downloadable

database of defined product categories that identifies the taxability of each category;

(2) provide and maintain an electronic, downloadable

database of all retailers' occupation tax rates for the jurisdictions in this State that levy a retailers' occupation tax; and

(3) provide and maintain an electronic, downloadable

database that assigns delivery addresses in this State to the applicable taxing jurisdictions.

(Source: P.A. 101-31, eff. 6-28-19.)

(35 ILCS 185/5-25) Sec. 5-25. Certification. The Department shall, no later than July 1, 2020:(1) provide uniform minimum standards that companies

wishing to be designated as a certified service provider in this State must meet; those minimum standards must include an expedited certification process for companies that have been certified in at least 5 other states;

(2) provide uniform minimum standards that certified

automated systems must meet; those minimum standards may include an expedited certification process for automated systems that have been certified in at least 5 other states;

(3) establish a certification process to review the

systems of companies wishing to be designated as a certified service provider in this State or of companies wishing to use a certified automated process; this certification process shall provide that companies that meet all required standards and whose systems have been tested and approved by the Department for properly determining the taxability of items to be sold, the correct tax rate to apply to a transaction, and the appropriate jurisdictions to which the tax shall be remitted, shall be certified;

(4) enter into a contractual relationship with each

company that qualifies as a certified service provider or that will be using a certified automated system; those contracts shall, at a minimum, provide:

(A) the responsibilities of the certified service

provider and the remote retailers that contract with the certified service provider or the user of a certified automated system related to liability for proper collection and remittance of use and occupation taxes;

(B) the responsibilities of the certified service

provider and the remote retailers that contract with the certified service provider or the user of a certified service provider related to record keeping and auditing;

(C) for the protection and confidentiality of tax

information; and

(D) compensation equal to 1.75% of the tax

dollars collected and remitted to the State by a certified service provider on a timely basis on behalf of remote retailers; remote retailers using a certified service provider may not claim the vendor's discount allowed under the Retailers' Occupation Tax Act or the Service Occupation Tax Act.

The provisions of this Section shall supersede the provisions of the Illinois Procurement Code. (Source: P.A. 101-31, eff. 6-28-19.)

(35 ILCS 185/5-30) Sec. 5-30. Relief from liability. Beginning January 1, 2020, remote retailers using certified service providers or certified automated systems and their certified service providers or certified automated systems providers are relieved from liability to the State for having charged and collected the incorrect amount of use or occupation tax resulting from a certified service provider or certified automated system relying, at the time of the sale, on: (1) erroneous data provided by the State in database files on tax rates, boundaries, or taxing jurisdictions; or (2) erroneous data provided by the State concerning the taxability of products and services.The Department shall, to the best of its ability, assign addresses to the proper local taxing jurisdiction using a 9-digit zip code identifier. On an annual basis, the Department shall make available to local taxing jurisdictions the taxing jurisdiction boundaries determined by the Department for their verification. If a jurisdiction fails to verify their taxing jurisdiction boundaries to the Department in any given year, the Department shall assign retailers' occupation tax revenue from remote retail sales based on its best information. In that case, tax revenues from remote retail sales remitted to a taxing jurisdiction based on erroneous local tax boundary information will be assigned to the correct taxing jurisdiction on a prospective basis upon notice of the boundary error from a local taxing jurisdiction. No certified service provider or remote retailer using a certified automated system shall be subject to a class action brought on behalf of customers and arising from, or in any way related to, an overpayment of retailers' occupation tax collected by the certified service provider if, at the time of the sale, they relied on information provided by the Department, regardless of whether that claim is characterized as a tax refund claim. Nothing in this Section affects a customer's right to seek a refund from the remote retailer as provided in this Act. (Source: P.A. 101-31, eff. 6-28-19.)

(35 ILCS 185/5-97) Sec. 5-97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes. (Source: P.A. 101-31, eff. 6-28-19.)