HB 5392

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Full Text of HB5392
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	HB5392 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5392
Introduced 2/10/2026, by Rep. Dagmara Avelar
SYNOPSIS AS INTRODUCED:
35 ILCS 105/2d
35 ILCS 110/2d
35 ILCS 115/3	  from Ch. 120, par. 439.103
35 ILCS 120/2
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the Department of Revenue may audit both the marketplace seller and the delivery network company for a qualified delivery network sale. Provides that, with respect to a qualified delivery network sale made on or after the effective date of the amendatory Act, a delivery network company may deduct or exclude from its tax liability the amount of tax that the delivery network company paid to the marketplace seller in connection with the qualified delivery network sale.
LRB104 18823 HLH 32268 b
A BILL FOR
		HB5392		LRB104 18823 HLH 32268 b
1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Use Tax Act is amended by changing Section
52d as follows:
6    (35 ILCS 105/2d)
7    Sec. 2d. Marketplace facilitators and marketplace sellers.
8    (a) As used in this Section:
9    "Affiliate" means a person that, with respect to another
10person: (i) has a direct or indirect ownership interest of
11more than 5 percent in the other person; or (ii) is related to
12the other person because a third person, or a group of third
13persons who are affiliated with each other as defined in this
14subsection, holds a direct or indirect ownership interest of
15more than 5% in the related person.
16    "Marketplace" means a physical or electronic place, forum,
17platform, application, or other method by which a marketplace
18seller sells or offers to sell items.
19    "Marketplace facilitator" means a person who, pursuant to
20an agreement with an unrelated third-party marketplace seller,
21directly or indirectly through one or more affiliates
22facilitates a retail sale by an unrelated third party
23marketplace seller by:
		HB5392	- 2 -	LRB104 18823 HLH 32268 b
1        (1) listing or advertising for sale by the marketplace
2    seller in a marketplace, tangible personal property that
3    is subject to tax under this Act; and
4        (2) either directly or indirectly, through agreements
5    or arrangements with third parties, collecting payment
6    from the customer and transmitting that payment to the
7    marketplace seller regardless of whether the marketplace
8    facilitator receives compensation or other consideration
9    in exchange for its services.
10    "Marketplace seller" means a person that sells or offers
11to sell tangible personal property through a marketplace
12operated by an unrelated third-party marketplace facilitator.
13    (b) Beginning on January 1, 2020 and through December 31,
142025, a marketplace facilitator who meets either of the
15following thresholds is considered the retailer for each sale
16of tangible personal property made through its marketplace:
17        (1) the cumulative gross receipts from sales of
18    tangible personal property to purchasers in Illinois by
19    the marketplace facilitator and by marketplace sellers
20    selling through the marketplace are $100,000 or more; or
21        (2) the marketplace facilitator and marketplace
22    sellers selling through the marketplace cumulatively enter
23    into 200 or more separate transactions for the sale of
24    tangible personal property to purchasers in Illinois.
25    A marketplace facilitator shall determine on a quarterly
26basis, ending on the last day of March, June, September, and
		HB5392	- 3 -	LRB104 18823 HLH 32268 b
1December, whether the marketplace facilitator meets the
2threshold of either paragraph (1) or (2) of this subsection
3(b) for the preceding 12-month period. If the marketplace
4facilitator meets the threshold of either paragraph (1) or (2)
5for a 12-month period, the marketplace facilitator is
6considered a retailer maintaining a place of business in this
7State and is required to collect and remit the tax imposed
8under this Act and file returns for one year. At the end of
9that one-year period, the marketplace facilitator shall
10determine whether the marketplace facilitator met the
11threshold of either paragraph (1) or (2) during the preceding
1212-month period. If the marketplace facilitator met the
13threshold in either paragraph (1) or (2) for the preceding
1412-month period, the marketplace facilitator is considered a
15retailer maintaining a place of business in this State and is
16required to collect and remit the tax imposed under this Act
17and file returns for the subsequent year. If at the end of a
18one-year period a marketplace facilitator that was required to
19collect and remit the tax imposed under this Act determines
20that the marketplace facilitator did not meet the threshold in
21either paragraph (1) or (2) during the preceding 12-month
22period, the marketplace facilitator shall subsequently
23determine on a quarterly basis, ending on the last day of
24March, June, September, and December, whether the marketplace
25facilitator meets the threshold of either paragraph (1) or (2)
26for the preceding 12-month period.
		HB5392	- 4 -	LRB104 18823 HLH 32268 b
1    (b-5) Beginning on January 1, 2026, a marketplace
2facilitator whose cumulative gross receipts from sales of
3tangible personal property to purchasers in Illinois by the
4marketplace facilitator and by marketplace sellers selling
5through the marketplace are $100,000 or more is considered the
6retailer for each sale of tangible personal property made
7through its marketplace.
8    A marketplace facilitator shall determine on a quarterly
9basis, ending on the last day of March, June, September, and
10December, whether the marketplace facilitator meets the
11threshold in this subsection (b-5) for the preceding 12-month
12period. If the marketplace facilitator meets the threshold for
13a 12-month period, the marketplace facilitator is considered a
14retailer maintaining a place of business in this State and is
15required to collect and remit the tax imposed under this Act
16and file returns for one year. At the end of the one-year
17period, the marketplace facilitator shall determine whether
18the marketplace facilitator met the threshold during the
19preceding 12-month period. If the marketplace facilitator met
20the threshold for the preceding 12-month period, the
21marketplace facilitator is considered a retailer maintaining a
22place of business in this State and is required to collect and
23remit the tax imposed under this Act and file returns for the
24subsequent year. If at the end of a one-year period a
25marketplace facilitator that was required to collect and remit
26the tax imposed under this Act determines that the marketplace
		HB5392	- 5 -	LRB104 18823 HLH 32268 b
1facilitator did not meet the threshold during the preceding
212-month period, the marketplace facilitator shall
3subsequently determine on a quarterly basis, ending on the
4last day of March, June, September, and December, whether the
5marketplace facilitator meets the threshold for the preceding
612-month period.
7    (c) Beginning on January 1, 2020 a marketplace facilitator
8considered to be the retailer pursuant to subsection (b) or
9(b-5) of this Section is considered the retailer with respect
10to each sale made through its marketplace and is liable for
11collecting and remitting the tax under this Act on all such
12sales. The marketplace facilitator who is considered to be the
13retailer under subsection (b) or (b-5) for sales made through
14its marketplace has all the rights and duties, and is required
15to comply with the same requirements and procedures, as all
16other retailers maintaining a place of business in this State
17who are registered or who are required to be registered to
18collect and remit the tax imposed by this Act with respect to
19such sales.
20    (d) A marketplace facilitator shall:
21        (1) certify to each marketplace seller that the
22    marketplace facilitator assumes the rights and duties of a
23    retailer under this Act with respect to sales made by the
24    marketplace seller through the marketplace; and
25        (2) collect taxes imposed by this Act as required by
26    Section 3-45 of this Act for sales made through the
		HB5392	- 6 -	LRB104 18823 HLH 32268 b
1    marketplace.
2    (e) A marketplace seller shall retain books and records
3for all sales made through a marketplace in accordance with
4the requirements of Section 11.
5    (f) A marketplace seller shall furnish to the marketplace
6facilitator information that is necessary for the marketplace
7facilitator to correctly collect and remit taxes for a retail
8sale. The information may include a certification that an item
9being sold is taxable, not taxable, exempt from taxation, or
10taxable at a specified rate. A marketplace seller shall be
11held harmless for liability for the tax imposed under this Act
12when a marketplace facilitator fails to correctly collect and
13remit tax after having been provided with information by a
14marketplace seller to correctly collect and remit taxes
15imposed under this Act.
16    (g) If the marketplace facilitator demonstrates to the
17satisfaction of the Department that its failure to correctly
18collect and remit tax on a retail sale resulted from the
19marketplace facilitator's good faith reliance on incorrect or
20insufficient information provided by a marketplace seller, it
21shall be relieved of liability for the tax on that retail sale.
22In this case, a marketplace seller is liable for any resulting
23tax due.
24    (h) (Blank).
25    (i) This Section does not affect the tax liability of a
26purchaser under this Act.
		HB5392	- 7 -	LRB104 18823 HLH 32268 b
1    (j) (Blank).
2    (k) A marketplace facilitator required to collect taxes
3imposed under this Section and this Act on retail sales made
4through its marketplace shall be liable to the Department for
5such taxes, except when the marketplace facilitator is
6relieved of the duty to remit such taxes by virtue of having
7paid to the Department taxes imposed by the Retailers'
8Occupation Tax Act upon his or her gross receipts from the same
9transactions.
10    (l) If, for any reason, the Department is prohibited from
11enforcing the marketplace facilitator's duty under this Act to
12collect and remit taxes pursuant to this Section, the duty to
13collect and remit such taxes reverts to the marketplace seller
14that is a retailer maintaining a place of business in this
15State pursuant to Section 2.
16    (m) Nothing in this Section affects the obligation of any
17consumer to remit use tax for any taxable transaction for
18which a certified service provider acting on behalf of a
19remote retailer or a marketplace facilitator does not collect
20and remit the appropriate tax.
21    (n) Notwithstanding any provision of law, the following 
22provisions apply regarding a qualified delivery network sale:
23        (1) the Department may audit both the marketplace 
24    seller and the delivery network company for the qualified 
25    delivery network sale; and
26        (2) for qualified delivery network sales made on or 
		HB5392	- 8 -	LRB104 18823 HLH 32268 b
1    after the effective date of this amendatory act of the 
2    104th General Assembly, a delivery network company may, in 
3    the form and manner prescribed by the Department, deduct 
4    or exclude from its tax liability under this Section the 
5    amount of tax under this Act that the delivery network 
6    company paid to the marketplace seller in connection with 
7    the qualified delivery network sale.
8    The delivery network company may not claim a deduction or 
9exclusion under this subsection if the marketplace seller did 
10not charge the delivery network company for the tax imposed 
11under this Act on the qualified network sale. The amount of the 
12deduction or exclusion under this subsection may not exceed 
13the amount of tax under this Act that was charged by the 
14marketplace seller to the delivery network company in 
15connection with the qualified delivery network sale.
16    As used in this subsection, the following terms have the 
17following meanings:
18    "Bicycle" has the meaning given to that term in the 
19Illinois Vehicle Code.
20    "Delivery network company" means a marketplace facilitator 
21that maintains a website, mobile application, or nondigital 
22platform used to facilitate delivery services that are 
23performed or otherwise conducted by a delivery network 
24courier.
25    "Delivery network courier" means an individual who 
26provides delivery services through a delivery network company 
		HB5392	- 9 -	LRB104 18823 HLH 32268 b
1by using a personal means of transportation, such as a motor 
2vehicle, bicycle, scooter, or other similar mode of 
3transportation, or walking. "Delivery network courier" does 
4not include a common carrier or a motor carrier.
5    "Delivery services" means the pickup and delivery of 
6tangible personal property by a delivery network courier from 
7a marketplace seller located in this State to a customer 
8located in this State, which may include the selection, 
9collection, and purchase of the tangible personal property in 
10connection with the delivery. "Delivery services" does not 
11include a delivery requiring more than 75 miles of travel from 
12the marketplace seller to the customer.
13    "Motor vehicle" has the meaning given to that term in the 
14Illinois Vehicle Code.
15    "Qualified delivery network sale" means a sale that meets 
16all of the following requirements: (i) the sale is made as part 
17of delivery services facilitated by a delivery network 
18company, (ii) the sale is sourced to this State under this Act, 
19and (iii) the tax imposed by this Act on the sale is paid by 
20the delivery network company to the marketplace seller in 
21connection with the delivery services.
22(Source: P.A. 104-6, eff. 6-16-25.)
23    Section 10. The Service Use Tax Act is amended by changing
24Section 2d as follows:
		HB5392	- 10 -	LRB104 18823 HLH 32268 b
1    (35 ILCS 110/2d)
2    Sec. 2d. Marketplace facilitators and marketplace
3servicemen.
4    (a) Definitions. For purposes of this Section:
5    "Affiliate" means a person that, with respect to another
6person: (i) has a direct or indirect ownership interest of
7more than 5% in the other person; or (ii) is related to the
8other person because a third person, or group of third persons
9who are affiliated with each other as defined in this
10subsection, holds a direct or indirect ownership interest of
11more than 5% in the related person.
12    "Marketplace" means a physical or electronic place, forum,
13platform, application, or other method by which a marketplace
14serviceman makes or offers to make sales of service.
15    "Marketplace facilitator" means a person who, pursuant to
16an agreement with an unrelated third-party marketplace
17serviceman, directly or indirectly through one or more
18affiliates facilitates sales of service by that unrelated
19third-party marketplace serviceman through:
20        (1) listing or advertising for sale by the marketplace
21    serviceman in a marketplace, sales of service that are
22    subject to tax under this Act; and
23        (2) either directly or indirectly, through agreements
24    or arrangements with third parties, collecting payment
25    from the customer and transmitting that payment to the
26    marketplace serviceman regardless of whether the
		HB5392	- 11 -	LRB104 18823 HLH 32268 b
1    marketplace facilitator receives compensation or other
2    consideration in exchange for its services.
3    "Marketplace serviceman" means a person that makes or
4offers to make a sale of service through a marketplace
5operated by an unrelated third-party marketplace facilitator.
6    (b) Beginning January 1, 2020 and through December 31,
72025, a marketplace facilitator who meets either of the
8following thresholds is considered the serviceman for each
9sale of service made through its marketplace:
10        (1) the cumulative gross receipts from sales of
11    service to purchasers in Illinois by the marketplace
12    facilitator and by marketplace servicemen selling through
13    the marketplace are $100,000 or more; or
14        (2) the marketplace facilitator and marketplace
15    servicemen selling through the marketplace cumulatively
16    enter into 200 or more separate transactions for the sale
17    of service to purchasers in Illinois.
18    A marketplace facilitator shall determine on a quarterly
19basis, ending on the last day of March, June, September, and
20December, whether the marketplace facilitator meets the
21threshold of either paragraph (1) or (2) of this subsection
22(b) for the preceding 12-month period. If the marketplace
23facilitator meets the threshold of either paragraph (1) or (2)
24for a 12-month period, it is considered a serviceman
25maintaining a place of business in this State and is required
26to collect and remit the tax imposed under this Act and file
		HB5392	- 12 -	LRB104 18823 HLH 32268 b
1returns for one year. At the end of that one-year period, the
2marketplace facilitator shall determine whether the
3marketplace facilitator met the threshold of either paragraph
4(1) or (2) during the preceding 12-month period. If the
5marketplace facilitator met the threshold in either paragraph
6(1) or (2) for the preceding 12-month period, it is considered
7a serviceman maintaining a place of business in this State and
8is required to collect and remit the tax imposed under this Act
9and file returns for the subsequent year. If, at the end of a
10one-year period, a marketplace facilitator that was required
11to collect and remit the tax imposed under this Act determines
12that it did not meet the threshold in either paragraph (1) or
13(2) during the preceding 12-month period, the marketplace
14facilitator shall subsequently determine on a quarterly basis,
15ending on the last day of March, June, September, and
16December, whether it meets the threshold of either paragraph
17(1) or (2) for the preceding 12-month period.
18    (b-5) Beginning on January 1, 2026, a marketplace
19facilitator whose cumulative gross receipts from sales of
20service to purchasers in Illinois by the marketplace
21facilitator and by marketplace servicemen selling through the
22marketplace are $100,000 or more is engaged in the business of
23making sales of service in Illinois for purposes of this Act
24for each sale of service made through the marketplace.
25    A marketplace facilitator shall determine on a quarterly
26basis, ending on the last day of March, June, September, and
		HB5392	- 13 -	LRB104 18823 HLH 32268 b
1December, whether the marketplace facilitator meets the
2threshold in this subsection (b-5) for the preceding 12-month
3period. If the marketplace facilitator meets the threshold for
4a 12-month period, the marketplace facilitator is considered a
5serviceman maintaining a place of business in this State and
6is required to collect and remit the tax imposed under this Act
7and file returns for one year. At the end of the one-year
8period, the marketplace facilitator shall determine whether
9the marketplace facilitator met the threshold during the
10preceding 12-month period. If the marketplace facilitator met
11the threshold for the preceding 12-month period, the
12marketplace facilitator is considered a serviceman maintaining
13a place of business in this State and is required to collect
14and remit the tax imposed under this Act and file returns for
15the subsequent year. If at the end of a one-year period a
16marketplace facilitator that was required to collect and remit
17the tax imposed under this Act determines that the marketplace
18facilitator did not meet the threshold during the preceding
1912-month period, the marketplace facilitator shall
20subsequently determine on a quarterly basis, ending on the
21last day of March, June, September, and December, whether it
22meets the threshold for the preceding 12-month period.
23    (c) A marketplace facilitator considered to be the
24serviceman pursuant to subsection (b) or, beginning January 1,
252026, subsection (b-5) of this Section is considered the
26serviceman for each sale of service made through its
		HB5392	- 14 -	LRB104 18823 HLH 32268 b
1marketplace and is liable for collecting and remitting the tax
2under this Act on all such sales. The marketplace facilitator
3has all the rights and duties, and is required to comply with
4the same requirements and procedures, as all other servicemen
5maintaining a place of business in this State who are
6registered or who are required to be registered to collect and
7remit the tax imposed by this Act with respect to such sales.
8    (d) A marketplace facilitator shall:
9        (1) certify to each marketplace serviceman that the
10    marketplace facilitator assumes the rights and duties of a
11    serviceman under this Act with respect to sales of service
12    made by the marketplace serviceman through the
13    marketplace; and
14        (2) collect taxes imposed by this Act as required by
15    Section 3-40 of this Act for sales of service made through
16    the marketplace.
17    (e) A marketplace serviceman shall retain books and
18records for all sales of service made through a marketplace in
19accordance with the requirements of Section 11.
20    (f) A marketplace serviceman shall furnish to the
21marketplace facilitator information that is necessary for the
22marketplace facilitator to correctly collect and remit taxes
23for a sale of service. Such information includes the cost
24price of any item transferred incident to a sale of service
25under this Act when the cost price of an item exceeds 50% of
26the entire billing to the service customer of a sale of service
		HB5392	- 15 -	LRB104 18823 HLH 32268 b
1made through the marketplace. The information may include a
2certification that an item transferred incident to a sale of
3service under this Act is taxable, not taxable, exempt from
4taxation, or taxable at a specified rate. A marketplace
5serviceman shall be held harmless for liability for the tax
6imposed under this Act when a marketplace facilitator fails to
7correctly collect and remit tax after having been provided
8with information by a marketplace serviceman to correctly
9collect and remit taxes imposed under this Act.
10    (g) If the marketplace facilitator demonstrates to the
11satisfaction of the Department that its failure to correctly
12collect and remit tax on a sale of service resulted from the
13marketplace facilitator's good faith reliance on incorrect or
14insufficient information provided by a marketplace serviceman,
15it shall be relieved of liability for the tax on that sale of
16service. In this case, a marketplace serviceman is liable for
17any resulting tax due.
18    (h) (Blank).
19    (i) This Section does not affect the tax liability of a
20purchaser under this Act.
21    (j) (Blank).
22    (k) A marketplace facilitator required to collect taxes
23imposed under this Section and this Act on sales of service
24made through its marketplace shall be liable to the Department
25for such taxes, except when the marketplace facilitator is
26relieved of the duty to remit such taxes by virtue of having
		HB5392	- 16 -	LRB104 18823 HLH 32268 b
1paid to the Department taxes imposed by the Service Occupation
2Tax Act from the same transactions.
3    (l) If, for any reason, the Department is prohibited from
4enforcing the marketplace facilitator's duty under this Act to
5collect and remit taxes pursuant to this Section, the duty to
6collect and remit such taxes reverts to the marketplace
7serviceman that is a serviceman maintaining a place of
8business in this State pursuant to Section 2.
9    (m) Nothing in this Section affects the obligation of any
10consumer to remit service use tax for any taxable transaction
11for which a certified service provider acting on behalf of a
12serviceman maintaining a place of business in this State or a
13marketplace facilitator does not collect and remit the
14appropriate tax.
15    (n) Notwithstanding any provision of law, the following 
16provisions apply regarding a qualified delivery network sale:
17        (1) the Department may audit both the marketplace 
18    seller and the delivery network company for the qualified 
19    delivery network sale; and
20        (2) for qualified delivery network sales made on or 
21    after the effective date of this amendatory act of the 
22    104th General Assembly, a delivery network company may, in 
23    the form and manner prescribed by the Department, deduct 
24    or exclude from its tax liability under this Section the 
25    amount of tax under this Act that the delivery network 
26    company paid to the marketplace seller in connection with 
		HB5392	- 17 -	LRB104 18823 HLH 32268 b
1    the qualified delivery network sale.
2    The delivery network company may not claim a deduction or 
3exclusion under this subsection if the marketplace seller did 
4not charge the delivery network company for the tax imposed 
5under this Act on the qualified network sale. The amount of the 
6deduction or exclusion under this subsection may not exceed 
7the amount of tax under this Act that was charged by the 
8marketplace seller to the delivery network company in 
9connection with the qualified delivery network sale.
10    As used in this subsection, the following terms have the 
11following meanings:
12    "Bicycle" has the meaning given to that term in the 
13Illinois Vehicle Code.
14    "Delivery network company" means a marketplace facilitator 
15that maintains a website, mobile application, or nondigital 
16platform used to facilitate delivery services that are 
17performed or otherwise conducted by a delivery network 
18courier.
19    "Delivery network courier" means an individual who 
20provides delivery services through a delivery network company 
21by using a personal means of transportation, such as a motor 
22vehicle, bicycle, scooter, or other similar mode of 
23transportation, or walking. "Delivery network courier" does 
24not include a common carrier or a motor carrier.
25    "Delivery services" means the pickup and delivery of 
26tangible personal property by a delivery network courier from 
		HB5392	- 18 -	LRB104 18823 HLH 32268 b
1a marketplace seller located in this State to a customer 
2located in this State, which may include the selection, 
3collection, and purchase of the tangible personal property in 
4connection with the delivery. "Delivery services" does not 
5include a delivery requiring more than 75 miles of travel from 
6the marketplace seller to the customer.
7    "Motor vehicle" has the meaning given to that term in the 
8Illinois Vehicle Code.
9    "Qualified delivery network sale" means a sale that meets 
10all of the following requirements: (i) the sale is made as part 
11of delivery services facilitated by a delivery network 
12company, (ii) the sale is sourced to this State under this Act, 
13and (iii) the tax imposed by this Act on the sale is paid by 
14the delivery network company to the marketplace seller in 
15connection with the delivery services.
16(Source: P.A. 104-6, eff. 6-16-25.)
17    Section 15. The Service Occupation Tax Act is amended by
18changing Section 3 as follows:
19    (35 ILCS 115/3)  (from Ch. 120, par. 439.103)
20    Sec. 3. Tax imposed.
21    (a) A tax is imposed upon all persons engaged in the
22business of making sales of service (referred to as
23"servicemen") on all tangible personal property transferred,
24including, on and after January 1, 2025, transferred by lease,
		HB5392	- 19 -	LRB104 18823 HLH 32268 b
1as an incident of a sale of service, including computer
2software, and including photographs, negatives, and positives
3that are the product of photoprocessing, but not including
4products of photoprocessing produced for use in motion
5pictures for public commercial exhibition. Beginning January
61, 2001, prepaid telephone calling arrangements shall be
7considered tangible personal property subject to the tax
8imposed under this Act regardless of the form in which those
9arrangements may be embodied, transmitted, or fixed by any
10method now known or hereafter developed. Sales of (1)
11electricity delivered to customers by wire; (2) natural or
12artificial gas that is delivered to customers through pipes,
13pipelines, or mains; and (3) water that is delivered to
14customers through pipes, pipelines, or mains are not subject
15to tax under this Act. The provisions of this amendatory Act of
16the 98th General Assembly are declaratory of existing law as
17to the meaning and scope of this Act.
18    (b) Beginning on January 1, 2026, a serviceman maintaining
19a place of business in this State that makes sales of service
20to Illinois customers from a location or locations outside of
21Illinois is engaged in the business of making sales of service
22in Illinois for the purposes of this Act. A qualifying
23serviceman under this subsection (b) is liable for all
24applicable State and locally imposed service occupation taxes
25administered by the Department on all tangible personal
26property transferred as an incident of a sale of service made
		HB5392	- 20 -	LRB104 18823 HLH 32268 b
1by the serviceman to Illinois customers from locations outside
2of Illinois.
3    (c) A serviceman maintaining a place of business in this
4State that is required to collect taxes imposed under the
5Service Use Tax Act on sales of service made to Illinois
6purchasers shall be liable to the Department for such taxes,
7except when the serviceman maintaining a place of business in
8this State is relieved of the duty to remit such taxes by
9virtue of having paid to the Department taxes imposed by this
10Act in accordance with this Section upon such sales.
11    (d) Beginning January 1, 2026, a marketplace facilitator
12whose cumulative gross receipts from sales of service to
13purchasers in Illinois by the marketplace facilitator and by
14marketplace servicemen selling through the marketplace are
15$100,000 or more is engaged in the business of making sales of
16service in Illinois for purposes of this Act for each sale of
17service made through its marketplace.
18    A marketplace facilitator who meets the threshold of this
19subsection (d) is required to remit the applicable State
20service occupation taxes under this Act and local service
21occupation taxes administered by the Department on all taxable
22transfers of tangible personal property made incident to sales
23of service by the marketplace facilitator or facilitated for
24marketplace servicemen to customers in this State. A
25marketplace facilitator transferring or facilitating the
26transfer of tangible personal property incident to a sale of
		HB5392	- 21 -	LRB104 18823 HLH 32268 b
1service to customers in this State is subject to all
2applicable procedures and requirements of this Act.
3    The marketplace facilitator shall determine on a quarterly
4basis, ending on the last day of March, June, September, and
5December, whether the marketplace facilitator meets the
6threshold of this subsection (d) for the preceding 12-month
7period. If the marketplace facilitator meets the threshold for
8a 12-month period, the marketplace facilitator is considered a
9serviceman maintaining a place of business in this State and
10is required to remit the tax imposed under this Act and all
11service occupation tax imposed by local taxing jurisdictions
12in Illinois, provided such local taxes are administered by the
13Department, and to file all applicable returns for one year.
14At the end of the one-year period, the marketplace facilitator
15shall determine whether the marketplace facilitator met the
16threshold for the preceding 12-month period. If the
17marketplace facilitator met the threshold for the preceding
1812-month period, the marketplace facilitator is considered a
19serviceman maintaining a place of business in this State and
20is required to remit all applicable State and local service
21occupation taxes and file returns for the subsequent year. If
22at the end of a one-year period a marketplace facilitator that
23was required to remit the tax imposed under this Act
24determines that the marketplace facilitator did not meet the
25threshold during the preceding 12-month period, the
26marketplace facilitator shall subsequently determine on a
		HB5392	- 22 -	LRB104 18823 HLH 32268 b
1quarterly basis, ending on the last day of March, June,
2September, and December, whether he or she meets the threshold
3for the preceding 12-month period.
4    (e) A marketplace facilitator shall be entitled to any
5credits, deductions, or adjustments to the sales price
6otherwise provided to the marketplace serviceman, in addition
7to any such adjustments provided directly to the marketplace
8facilitator. This Section pertains to, but is not limited to,
9adjustments such as discounts, coupons, and rebates. In
10addition, a marketplace facilitator shall be entitled to the
11vendors' discount provided in Section 9 of the Service
12Occupation Tax Act on all marketplace sales of service, and
13the marketplace serviceman shall not include sales of service
14made through a marketplace facilitator when computing any
15vendors' discount on remaining sales of service. Marketplace
16facilitators shall report and remit the applicable State and
17local service occupation taxes on sales of service facilitated
18for marketplace servicemen separately from any service
19occupation or service use tax collected on taxable sales of
20service made directly by the marketplace facilitator or its
21affiliates.
22    The marketplace facilitator is liable for the remittance
23of all applicable State service occupation taxes under this
24Act and local service occupation taxes administered by the
25Department on sales of service through the marketplace and is
26subject to audit on all such sales of service. The Department
		HB5392	- 23 -	LRB104 18823 HLH 32268 b
1shall not audit marketplace servicemen for their marketplace
2sales of service where a marketplace facilitator remitted the
3applicable State and local service occupation taxes unless the
4marketplace facilitator seeks relief as a result of incorrect
5information provided to the marketplace facilitator by a
6marketplace serviceman as set forth in this Section. The
7marketplace facilitator shall not be held liable for tax on
8any sales of service made by a marketplace serviceman that
9take place outside of the marketplace and which are not a part
10of any agreement between a marketplace facilitator and a
11marketplace serviceman. In addition, marketplace facilitators
12shall not be held liable to State and local governments of
13Illinois for having charged and remitted an incorrect amount
14of State and local service occupation tax if, at the time of
15the sale of service, the tax is computed based on erroneous
16data provided by the State in database files on tax rates,
17boundaries, or taxing jurisdictions or incorrect information
18provided to the marketplace facilitator by the marketplace
19serviceman, including the marketplace serviceman's cost ratio
20and registration status.
21    (f) A marketplace facilitator shall:
22        (1) certify to each marketplace serviceman that the
23    marketplace facilitator assumes the rights and duties of a
24    serviceman under this Act with respect to sales of service
25    made by the marketplace serviceman through the
26    marketplace; and
		HB5392	- 24 -	LRB104 18823 HLH 32268 b
1        (2) remit taxes imposed by this Act as required by
2    this Act for sales of service made through the
3    marketplace.
4    (g) A marketplace serviceman shall retain books and
5records for all sales of service made through a marketplace in
6accordance with the requirements of Section 11 of this Act.
7    (h) A marketplace serviceman shall furnish to the
8marketplace facilitator information that is necessary for the
9marketplace facilitator to correctly remit taxes for a sale of
10service. Such information includes the cost price of any item
11transferred incident to a sale of service under this Act when
12the cost price of an item exceeds 50% of the total invoice
13price of a sale of service made through the marketplace. The
14information may include a certification that an item
15transferred incident to a sale of service under this Act is
16taxable, not taxable, exempt from taxation, or taxable at a
17specified rate. A marketplace serviceman shall be held
18harmless for liability for the tax imposed under this Act when
19a marketplace facilitator fails to correctly collect and remit
20tax after having been provided with information by a
21marketplace serviceman to correctly collect and remit taxes
22imposed under this Act.
23    (i) If the marketplace facilitator demonstrates to the
24satisfaction of the Department that its failure to correctly
25collect and remit tax on a sale of service resulted from the
26marketplace facilitator's good faith reliance on incorrect or
		HB5392	- 25 -	LRB104 18823 HLH 32268 b
1insufficient information provided by a marketplace serviceman,
2it shall be relieved of liability for the tax on that sale of
3service and the marketplace serviceman shall be liable for any
4resulting tax due.
5    (j) A marketplace facilitator is subject to audit on all
6marketplace sales of service for which it is considered to be
7the serviceman, but shall not be liable for tax or subject to
8audit on sales of service made by marketplace servicemen
9outside of the marketplace.
10    (k) A marketplace facilitator required to collect taxes
11imposed under the Service Use Tax Act on marketplace sales of
12service made to Illinois purchasers shall be liable to the
13Department for such taxes, except when the marketplace
14facilitator is relieved of the duty to remit such taxes by
15virtue of having paid to the Department taxes imposed by this
16Act in accordance with this Section from such sales of
17service.
18    (l) Nothing in this Section shall allow the Department to
19collect service occupation taxes from both the marketplace
20facilitator and marketplace serviceman on the same
21transaction.
22    (m) If, for any reason, the Department is prohibited from
23enforcing the marketplace facilitator's duty under this Act to
24remit taxes pursuant to this Section, the duty to remit such
25taxes remains with the marketplace serviceman.
26    (n) Notwithstanding any provision of law, the following 
		HB5392	- 26 -	LRB104 18823 HLH 32268 b
1provisions apply regarding a qualified delivery network sale:
2        (1) the Department may audit both the marketplace 
3    seller and the delivery network company for the qualified 
4    delivery network sale; and
5        (2) for qualified delivery network sales made on or 
6    after the effective date of this amendatory act of the 
7    104th General Assembly, a delivery network company may, in 
8    the form and manner prescribed by the Department, deduct 
9    or exclude from its tax liability under this Section the 
10    amount of tax under this Act that the delivery network 
11    company paid to the marketplace seller in connection with 
12    the qualified delivery network sale.
13    The delivery network company may not claim a deduction or 
14exclusion under this subsection if the marketplace seller did 
15not charge the delivery network company for the tax imposed 
16under this Act on the qualified network sale. The amount of the 
17deduction or exclusion under this subsection may not exceed 
18the amount of tax under this Act that was charged by the 
19marketplace seller to the delivery network company in 
20connection with the qualified delivery network sale.
21    As used in this subsection, the following terms have the 
22following meanings:
23    "Bicycle" has the meaning given to that term in the 
24Illinois Vehicle Code.
25    "Delivery network company" means a marketplace facilitator 
26that maintains a website, mobile application, or nondigital 
		HB5392	- 27 -	LRB104 18823 HLH 32268 b
1platform used to facilitate delivery services that are 
2performed or otherwise conducted by a delivery network 
3courier.
4    "Delivery network courier" means an individual who 
5provides delivery services through a delivery network company 
6by using a personal means of transportation, such as a motor 
7vehicle, bicycle, scooter, or other similar mode of 
8transportation, or walking. "Delivery network courier" does 
9not include a common carrier or a motor carrier.
10    "Delivery services" means the pickup and delivery of 
11tangible personal property by a delivery network courier from 
12a marketplace seller located in this State to a customer 
13located in this State, which may include the selection, 
14collection, and purchase of the tangible personal property in 
15connection with the delivery. "Delivery services" does not 
16include a delivery requiring more than 75 miles of travel from 
17the marketplace seller to the customer.
18    "Motor vehicle" has the meaning given to that term in the 
19Illinois Vehicle Code.
20    "Qualified delivery network sale" means a sale that meets 
21all of the following requirements: (i) the sale is made as part 
22of delivery services facilitated by a delivery network 
23company, (ii) the sale is sourced to this State under this Act, 
24and (iii) the tax imposed by this Act on the sale is paid by 
25the delivery network company to the marketplace seller in 
26connection with the delivery services.
		HB5392	- 28 -	LRB104 18823 HLH 32268 b
1    (o) The imposition of the tax under this Act on tangible
2personal property transferred by lease by persons engaged in
3the business of making sales of service applies to leases in
4effect, entered into, or renewed on or after January 1, 2025.
5In the case of leases, except as otherwise provided in this
6Act, the serviceman who is a lessor must remit for each tax
7return period only the tax applicable to that part of the
8selling price actually received during such tax return period.
9(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 6-16-25.)
10    Section 20. The Retailers' Occupation Tax Act is amended
11by changing Section 2 as follows:
12    (35 ILCS 120/2)
13    Sec. 2. Tax imposed.
14    (a) A tax is imposed upon persons engaged in the business
15of selling at retail, which, on and after January 1, 2025,
16includes leasing, tangible personal property, including
17computer software, and including photographs, negatives, and
18positives that are the product of photoprocessing, but not
19including products of photoprocessing produced for use in
20motion pictures for public commercial exhibition. Beginning
21January 1, 2001, prepaid telephone calling arrangements shall
22be considered tangible personal property subject to the tax
23imposed under this Act regardless of the form in which those
24arrangements may be embodied, transmitted, or fixed by any
		HB5392	- 29 -	LRB104 18823 HLH 32268 b
1method now known or hereafter developed.
2    The imposition of the tax under this Act on persons
3engaged in the business of leasing tangible personal property
4applies to leases in effect, entered into, or renewed on or
5after January 1, 2025. In the case of leases, except as
6otherwise provided in this Act, the lessor must remit, for
7each tax return period, only the tax applicable to that part of
8the selling price actually received during such tax return
9period.
10    The inclusion of leases in the tax imposed under this Act
11by Public Act 103-592 does not, however, extend to motor
12vehicles, watercraft, aircraft, and semitrailers, as defined
13in Section 1-187 of the Illinois Vehicle Code, that are
14required to be registered with an agency of this State. The
15taxation of these items shall continue in effect as prior to
16the effective date of the changes made to this Section by
17Public Act 103-592 (i.e., dealers owe retailers' occupation
18tax, lessors owe use tax, and lessees are not subject to
19retailers' occupation or use tax).
20    Sales of (1) electricity delivered to customers by wire;
21(2) natural or artificial gas that is delivered to customers
22through pipes, pipelines, or mains; and (3) water that is
23delivered to customers through pipes, pipelines, or mains are
24not subject to tax under this Act. The provisions of Public Act
2598-583 are declaratory of existing law as to the meaning and
26scope of this Act.
		HB5392	- 30 -	LRB104 18823 HLH 32268 b
1    (b) Beginning on January 1, 2021 and through December 31,
22025, a remote retailer is engaged in the occupation of
3selling at retail in Illinois for purposes of this Act, if:
4        (1) the cumulative gross receipts from sales of
5    tangible personal property to purchasers in Illinois are
6    $100,000 or more; or
7        (2) the retailer enters into 200 or more separate
8    transactions for the sale of tangible personal property to
9    purchasers in Illinois.
10    Remote retailers that meet or exceed the threshold in
11either paragraph (1) or (2) above shall be liable for all
12applicable State retailers' and locally imposed retailers'
13occupation taxes administered by the Department on all retail
14sales to Illinois purchasers.
15    The remote retailer shall determine on a quarterly basis,
16ending on the last day of March, June, September, and
17December, whether it meets the threshold of either paragraph
18(1) or (2) of this subsection for the preceding 12-month
19period. If the retailer meets the threshold of either
20paragraph (1) or (2) for a 12-month period, he or she is
21considered a retailer maintaining a place of business in this
22State and is required to collect and remit the tax imposed
23under this Act and all retailers' occupation tax imposed by
24local taxing jurisdictions in Illinois, provided such local
25taxes are administered by the Department, and to file all
26applicable returns for one year. At the end of that one-year
		HB5392	- 31 -	LRB104 18823 HLH 32268 b
1period, the retailer shall determine whether the retailer met
2the threshold of either paragraph (1) or (2) for the preceding
312-month period. If the retailer met the threshold in either
4paragraph (1) or (2) for the preceding 12-month period, it is
5considered a retailer maintaining a place of business in this
6State and is required to collect and remit all applicable
7State and local retailers' occupation taxes and file returns
8for the subsequent year. If, at the end of a one-year period, a
9retailer that was required to collect and remit the tax
10imposed under this Act determines that it did not meet the
11threshold in either paragraph (1) or (2) during the preceding
1212-month period, then the retailer shall subsequently
13determine on a quarterly basis, ending on the last day of
14March, June, September, and December, whether the retailer met
15the threshold of either paragraph (1) or (2) for the preceding
1612-month period.
17    (b-1) Beginning on January 1, 2026, a remote retailer is
18engaged in the occupation of selling at retail in Illinois for
19purposes of this Act if the remote retailer's cumulative gross
20receipts from sales of tangible personal property to
21purchasers in Illinois are $100,000 or more.
22    Remote retailers that meet or exceed the threshold in this
23subsection (b-1) shall be liable for all applicable State and
24locally imposed retailers' occupation taxes administered by
25the Department on all retail sales to Illinois purchasers.
26    The remote retailer shall determine on a quarterly basis,
		HB5392	- 32 -	LRB104 18823 HLH 32268 b
1ending on the last day of March, June, September, and
2December, whether the remote retailer meets the threshold of
3this subsection (b-1) for the preceding 12-month period. If
4the remote retailer meets the threshold for a 12-month period,
5the remote retailer is considered to be engaged in the
6occupation of selling at retail in Illinois and is required to
7remit the tax imposed under this Act and all retailers'
8occupation tax imposed by local taxing jurisdictions in
9Illinois, provided such local taxes are administered by the
10Department, and to file all applicable returns for one year.
11At the end of the one-year period, the remote retailer shall
12determine whether the remote retailer met the threshold for
13the preceding 12-month period. If the retailer met the
14threshold for the preceding 12-month period, the remote
15retailer is considered to be engaged in the occupation of
16selling at retail in Illinois and is required to remit all
17applicable State and local retailers' occupation taxes and
18file returns for the subsequent year. If, at the end of a
19one-year period, a remote retailer that was required to remit
20the tax imposed under this Act determines that the remote
21retailer did not meet the threshold during the preceding
2212-month period, then the remote retailer shall subsequently
23determine on a quarterly basis, ending on the last day of
24March, June, September, and December, whether the remote
25retailer met the threshold for the preceding 12-month period.
26    (b-2) Beginning on January 1, 2025, a retailer maintaining
		HB5392	- 33 -	LRB104 18823 HLH 32268 b
1a place of business in this State that makes retail sales of
2tangible personal property to Illinois customers from a
3location or locations outside of Illinois is engaged in the
4occupation of selling at retail in Illinois for the purposes
5of this Act. Those retailers are liable for all applicable
6State and locally imposed retailers' occupation taxes
7administered by the Department on retail sales made by those
8retailers to Illinois customers from locations outside of
9Illinois.
10    (b-5) For the purposes of this Section, neither the gross
11receipts from nor, until January 1, 2026, the number of
12separate transactions for sales of tangible personal property
13to purchasers in Illinois that a remote retailer makes through
14a marketplace facilitator shall be included for the purposes
15of determining whether he or she has met the thresholds of
16subsection (b) or (b-1) of this Section so long as the remote
17retailer has received certification from the marketplace
18facilitator that the marketplace facilitator is legally
19responsible for payment of tax on such sales.
20    (b-10) A remote retailer that is required to collect taxes
21imposed under the Use Tax Act on retail sales made to Illinois
22purchasers or a retailer maintaining a place of business in
23this State that is required to collect taxes imposed under the
24Use Tax Act on retail sales made to Illinois purchasers shall
25be liable to the Department for such taxes, except when the
26remote retailer or retailer maintaining a place of business in
		HB5392	- 34 -	LRB104 18823 HLH 32268 b
1this State is relieved of the duty to remit such taxes by
2virtue of having paid to the Department taxes imposed by this
3Act in accordance with this Section upon his or her gross
4receipts from such sales.
5    (c) Marketplace facilitators engaged in the business of
6selling at retail tangible personal property in Illinois.
7Beginning January 1, 2021 and through December 31, 2025, a
8marketplace facilitator is engaged in the occupation of
9selling at retail tangible personal property in Illinois for
10purposes of this Act if, during the previous 12-month period:
11        (1) the cumulative gross receipts from sales of
12    tangible personal property on its own behalf or on behalf
13    of marketplace sellers to purchasers in Illinois equals
14    $100,000 or more; or
15        (2) the marketplace facilitator enters into 200 or
16    more separate transactions on its own behalf or on behalf
17    of marketplace sellers for the sale of tangible personal
18    property to purchasers in Illinois, regardless of whether
19    the marketplace facilitator or marketplace sellers for
20    whom such sales are facilitated are registered as
21    retailers in this State.
22    A marketplace facilitator who meets either paragraph (1)
23or (2) of this subsection is required to remit the applicable
24State retailers' occupation taxes under this Act and local
25retailers' occupation taxes administered by the Department on
26all taxable sales of tangible personal property made by the
		HB5392	- 35 -	LRB104 18823 HLH 32268 b
1marketplace facilitator or facilitated for marketplace sellers
2to customers in this State. A marketplace facilitator selling
3or facilitating the sale of tangible personal property to
4customers in this State is subject to all applicable
5procedures and requirements of this Act.
6    The marketplace facilitator shall determine on a quarterly
7basis, ending on the last day of March, June, September, and
8December, whether it meets the threshold of either paragraph
9(1) or (2) of this subsection for the preceding 12-month
10period. If the marketplace facilitator meets the threshold of
11either paragraph (1) or (2) for a 12-month period, the
12marketplace facilitator is considered a retailer maintaining a
13place of business in this State and is required to remit the
14tax imposed under this Act and all retailers' occupation tax
15imposed by local taxing jurisdictions in Illinois, provided
16such local taxes are administered by the Department, and to
17file all applicable returns for one year. At the end of that
18one-year period, the marketplace facilitator shall determine
19whether it met the threshold of either paragraph (1) or (2) for
20the preceding 12-month period. If the marketplace facilitator
21met the threshold in either paragraph (1) or (2) for the
22preceding 12-month period, it is considered a retailer
23maintaining a place of business in this State and is required
24to collect and remit all applicable State and local retailers'
25occupation taxes and file returns for the subsequent year. If
26at the end of a one-year period a marketplace facilitator that
		HB5392	- 36 -	LRB104 18823 HLH 32268 b
1was required to collect and remit the tax imposed under this
2Act determines that it did not meet the threshold in either
3paragraph (1) or (2) during the preceding 12-month period, the
4marketplace facilitator shall subsequently determine on a
5quarterly basis, ending on the last day of March, June,
6September, and December, whether it met the threshold of
7either paragraph (1) or (2) for the preceding 12-month period.
8    (c-5) Beginning January 1, 2026, a marketplace facilitator
9is engaged in the occupation of selling at retail tangible
10personal property in Illinois for purposes of this Act if,
11during the previous 12-month period the cumulative gross
12receipts from sales of tangible personal property on its own
13behalf or on behalf of marketplace sellers to purchasers in
14Illinois equals $100,000 or more.
15    A marketplace facilitator who meets the threshold of this
16subsection is required to remit the applicable State
17retailers' occupation taxes under this Act and local
18retailers' occupation taxes administered by the Department on
19all taxable sales of tangible personal property made by the
20marketplace facilitator or facilitated for marketplace sellers
21to customers in this State. A marketplace facilitator selling
22or facilitating the sale of tangible personal property to
23customers in this State is subject to all applicable
24procedures and requirements of this Act.
25    The marketplace facilitator shall determine on a quarterly
26basis, ending on the last day of March, June, September, and
		HB5392	- 37 -	LRB104 18823 HLH 32268 b
1December, whether the marketplace facilitator meets the
2threshold of this subsection (c-5) for the preceding 12-month
3period. If the marketplace facilitator meets the threshold for
4a 12-month period, the marketplace facilitator is considered
5to be engaged in the occupation of selling at retail in
6Illinois and is required to remit the tax imposed under this
7Act and all retailers' occupation tax imposed by local taxing
8jurisdictions in Illinois, provided such local taxes are
9administered by the Department, and to file all applicable
10returns for one year. At the end of the one-year period, the
11marketplace facilitator shall determine whether the
12marketplace facilitator met the threshold for the preceding
1312-month period. If the marketplace facilitator met the
14threshold for the preceding 12-month period, the marketplace
15facilitator is considered to be engaged in the occupation of
16selling at retail in Illinois and is required to collect and
17remit all applicable State and local retailers' occupation
18taxes and file returns for the subsequent year. If at the end
19of a one-year period a marketplace facilitator that was
20required to collect and remit the tax imposed under this Act
21determines that the marketplace facilitator did not meet the
22threshold during the preceding 12-month period, the
23marketplace facilitator shall subsequently determine on a
24quarterly basis, ending on the last day of March, June,
25September, and December, whether it met the threshold for the
26preceding 12-month period.
		HB5392	- 38 -	LRB104 18823 HLH 32268 b
1    (c-10) A marketplace facilitator shall be entitled to any
2credits, deductions, or adjustments to the sales price
3otherwise provided to the marketplace seller, in addition to
4any such adjustments provided directly to the marketplace
5facilitator. This Section pertains to, but is not limited to,
6adjustments such as discounts, coupons, and rebates. In
7addition, a marketplace facilitator shall be entitled to the
8retailers' discount provided in Section 3 of the Retailers'
9Occupation Tax Act on all marketplace sales, and the
10marketplace seller shall not include sales made through a
11marketplace facilitator when computing any retailers' discount
12on remaining sales. Marketplace facilitators shall report and
13remit the applicable State and local retailers' occupation
14taxes on sales facilitated for marketplace sellers separately
15from any sales or use tax collected on taxable retail sales
16made directly by the marketplace facilitator or its
17affiliates.
18    The marketplace facilitator is liable for the remittance
19of all applicable State retailers' occupation taxes under this
20Act and local retailers' occupation taxes administered by the
21Department on sales through the marketplace and is subject to
22audit on all such sales. The Department shall not audit
23marketplace sellers for their marketplace sales where a
24marketplace facilitator remitted the applicable State and
25local retailers' occupation taxes unless the marketplace
26facilitator seeks relief as a result of incorrect information
		HB5392	- 39 -	LRB104 18823 HLH 32268 b
1provided to the marketplace facilitator by a marketplace
2seller as set forth in this Section. The marketplace
3facilitator shall not be held liable for tax on any sales made
4by a marketplace seller that take place outside of the
5marketplace and which are not a part of any agreement between a
6marketplace facilitator and a marketplace seller. In addition,
7marketplace facilitators shall not be held liable to State and
8local governments of Illinois for having charged and remitted
9an incorrect amount of State and local retailers' occupation
10tax if, at the time of the sale, the tax is computed based on
11erroneous data provided by the State in database files on tax
12rates, boundaries, or taxing jurisdictions or incorrect
13information provided to the marketplace facilitator by the
14marketplace seller.
15    (d) A marketplace facilitator shall:
16        (1) certify to each marketplace seller that the
17    marketplace facilitator assumes the rights and duties of a
18    retailer under this Act with respect to sales made by the
19    marketplace seller through the marketplace; and
20        (2) remit taxes imposed by this Act as required by
21    this Act for sales made through the marketplace.
22    (e) A marketplace seller shall retain books and records
23for all sales made through a marketplace in accordance with
24the requirements of this Act.
25    (f) A marketplace facilitator is subject to audit on all
26marketplace sales for which it is considered to be the
		HB5392	- 40 -	LRB104 18823 HLH 32268 b
1retailer, but shall not be liable for tax or subject to audit
2on sales made by marketplace sellers outside of the
3marketplace.
4    (g) A marketplace facilitator required to collect taxes
5imposed under the Use Tax Act on marketplace sales made to
6Illinois purchasers shall be liable to the Department for such
7taxes, except when the marketplace facilitator is relieved of
8the duty to remit such taxes by virtue of having paid to the
9Department taxes imposed by this Act in accordance with this
10Section upon his or her gross receipts from such sales.
11    (h) Nothing in this Section shall allow the Department to
12collect retailers' occupation taxes from both the marketplace
13facilitator and marketplace seller on the same transaction.
14    (i) If, for any reason, the Department is prohibited from
15enforcing the marketplace facilitator's duty under this Act to
16remit taxes pursuant to this Section, the duty to remit such
17taxes remains with the marketplace seller.
18    (j) (Blank).
19    (k) (Blank).
20    (l) A marketplace seller shall furnish to the marketplace
21facilitator information that is necessary for the marketplace
22facilitator to correctly remit taxes for a retail sale. The
23information may include a certification that an item being
24sold is taxable, not taxable, exempt from taxation, or taxable
25at a specified rate. A marketplace seller shall be held
26harmless for liability for the tax imposed under this Act when
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1a marketplace facilitator fails to correctly remit tax after
2having been provided with information by a marketplace seller
3to correctly remit taxes imposed under this Act.
4    (m) If the marketplace facilitator demonstrates to the
5satisfaction of the Department that its failure to correctly
6remit tax on a retail sale resulted from the marketplace
7facilitator's good faith reliance on incorrect or insufficient
8information provided by a marketplace seller, it shall be
9relieved of liability for the tax on that retail sale and the
10marketplace seller shall be liable for any resulting tax due.
11    (n) Notwithstanding any provision of law, the following 
12provisions apply regarding a qualified delivery network sale:
13        (1) the Department may audit both the marketplace 
14    seller and the delivery network company for the qualified 
15    delivery network sale; and
16        (2) for qualified delivery network sales made on or 
17    after the effective date of this amendatory act of the 
18    104th General Assembly, a delivery network company may, in 
19    the form and manner prescribed by the Department, deduct 
20    or exclude from its tax liability under this Section the 
21    amount of tax under this Act that the delivery network 
22    company paid to the marketplace seller in connection with 
23    the qualified delivery network sale.
24    The delivery network company may not claim a deduction or 
25exclusion under this subsection if the marketplace seller did 
26not charge the delivery network company for the tax imposed 
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1under this Act on the qualified network sale. The amount of the 
2deduction or exclusion under this subsection may not exceed 
3the amount of tax under this Act that was charged by the 
4marketplace seller to the delivery network company in 
5connection with the qualified delivery network sale.
6    As used in this subsection, the following terms have the 
7following meanings:
8    "Bicycle" has the meaning given to that term in the 
9Illinois Vehicle Code.
10    "Delivery network company" means a marketplace facilitator 
11that maintains a website, mobile application, or nondigital 
12platform used to facilitate delivery services that are 
13performed or otherwise conducted by a delivery network 
14courier.
15    "Delivery network courier" means an individual who 
16provides delivery services through a delivery network company 
17by using a personal means of transportation, such as a motor 
18vehicle, bicycle, scooter, or other similar mode of 
19transportation, or walking. "Delivery network courier" does 
20not include a common carrier or a motor carrier.
21    "Delivery services" means the pickup and delivery of 
22tangible personal property by a delivery network courier from 
23a marketplace seller located in this State to a customer 
24located in this State, which may include the selection, 
25collection, and purchase of the tangible personal property in 
26connection with the delivery. "Delivery services" does not 
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1include a delivery requiring more than 75 miles of travel from 
2the marketplace seller to the customer.
3    "Motor vehicle" has the meaning given to that term in the 
4Illinois Vehicle Code.
5    "Qualified delivery network sale" means a sale that meets 
6all of the following requirements: (i) the sale is made as part 
7of delivery services facilitated by a delivery network 
8company, (ii) the sale is sourced to this State under this Act, 
9and (iii) the tax imposed by this Act on the sale is paid by 
10the delivery network company to the marketplace seller in 
11connection with the delivery services.
12(Source: P.A. 103-592, eff. 1-1-25; 103-983, eff. 1-1-25;
13104-6, eff. 6-16-25.)