USE/OCC TAX-DELIVERY SALES

Illinois General Assembly - Full Text of HB5392

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of HB5392

Home

Legislation

Full Text

HB5392 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Printer Friendly Version

Introduced

Open PDF

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,
3
represented in the General Assembly:

4

Section 5.
The Use Tax Act is amended by changing Section
5
2d 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
10
person: (i) has a direct or indirect ownership interest of
11
more than 5 percent in the other person; or (ii) is related to
12
the other person because a third person, or a group of third
13
persons who are affiliated with each other as defined in this
14
subsection, holds a direct or indirect ownership interest of
15
more than 5% in the related person.
16

"Marketplace" means a physical or electronic place, forum,
17
platform, application, or other method by which a marketplace
18
seller sells or offers to sell items.
19

"Marketplace facilitator" means a person who, pursuant to
20
an agreement with an unrelated third-party marketplace seller,
21
directly or indirectly through one or more affiliates
22
facilitates a retail sale by an unrelated third party
23
marketplace 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
11
to sell tangible personal property through a marketplace
12
operated by an unrelated third-party marketplace facilitator.
13

(b) Beginning on January 1, 2020 and through December 31,
14
2025, a marketplace facilitator who meets either of the
15
following thresholds is considered the retailer for each sale
16
of 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
26
basis, ending on the last day of March, June, September, and

HB5392
- 3 -
LRB104 18823 HLH 32268 b
1
December, whether the marketplace facilitator meets the
2
threshold of either paragraph (1) or (2) of this subsection
3
(b) for the preceding 12-month period. If the marketplace
4
facilitator meets the threshold of either paragraph (1) or (2)
5
for a 12-month period, the marketplace facilitator is
6
considered a retailer maintaining a place of business in this
7
State and is required to collect and remit the tax imposed
8
under this Act and file returns for one year. At the end of
9
that one-year period, the marketplace facilitator shall
10
determine whether the marketplace facilitator met the
11
threshold of either paragraph (1) or (2) during the preceding
12
12-month period. If the marketplace facilitator met the
13
threshold in either paragraph (1) or (2) for the preceding
14
12-month period, the marketplace facilitator is considered a
15
retailer maintaining a place of business in this State and is
16
required to collect and remit the tax imposed under this Act
17
and file returns for the subsequent year. If at the end of a
18
one-year period a marketplace facilitator that was required to
19
collect and remit the tax imposed under this Act determines
20
that the marketplace facilitator did not meet the threshold in
21
either paragraph (1) or (2) during the preceding 12-month
22
period, the marketplace facilitator shall subsequently
23
determine on a quarterly basis, ending on the last day of
24
March, June, September, and December, whether the marketplace
25
facilitator meets the threshold of either paragraph (1) or (2)
26
for the preceding 12-month period.

HB5392
- 4 -
LRB104 18823 HLH 32268 b
1

(b-5) Beginning on January 1, 2026, a marketplace
2
facilitator whose cumulative gross receipts from sales of
3
tangible personal property to purchasers in Illinois by the
4
marketplace facilitator and by marketplace sellers selling
5
through the marketplace are $100,000 or more is considered the
6
retailer for each sale of tangible personal property made
7
through its marketplace.
8

A marketplace facilitator shall determine on a quarterly
9
basis, ending on the last day of March, June, September, and
10
December, whether the marketplace facilitator meets the
11
threshold in this subsection (b-5) for the preceding 12-month
12
period. If the marketplace facilitator meets the threshold for
13
a 12-month period, the marketplace facilitator is considered a
14
retailer maintaining a place of business in this State and is
15
required to collect and remit the tax imposed under this Act
16
and file returns for one year. At the end of the one-year
17
period, the marketplace facilitator shall determine whether
18
the marketplace facilitator met the threshold during the
19
preceding 12-month period. If the marketplace facilitator met
20
the threshold for the preceding 12-month period, the
21
marketplace facilitator is considered a retailer maintaining a
22
place of business in this State and is required to collect and
23
remit the tax imposed under this Act and file returns for the
24
subsequent year. If at the end of a one-year period a
25
marketplace facilitator that was required to collect and remit
26
the tax imposed under this Act determines that the marketplace

HB5392
- 5 -
LRB104 18823 HLH 32268 b
1
facilitator did not meet the threshold during the preceding
2
12-month period, the marketplace facilitator shall
3
subsequently determine on a quarterly basis, ending on the
4
last day of March, June, September, and December, whether the
5
marketplace facilitator meets the threshold for the preceding
6
12-month period.
7

(c) Beginning on January 1, 2020 a marketplace facilitator
8
considered to be the retailer pursuant to subsection (b) or
9
(b-5) of this Section is considered the retailer with respect
10
to each sale made through its marketplace and is liable for
11
collecting and remitting the tax under this Act on all such
12
sales. The marketplace facilitator who is considered to be the
13
retailer under subsection (b) or (b-5) for sales made through
14
its marketplace has all the rights and duties, and is required
15
to comply with the same requirements and procedures, as all
16
other retailers maintaining a place of business in this State
17
who are registered or who are required to be registered to
18
collect and remit the tax imposed by this Act with respect to
19
such 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
3
for all sales made through a marketplace in accordance with
4
the requirements of Section 11.
5

(f) A marketplace seller shall furnish to the marketplace
6
facilitator information that is necessary for the marketplace
7
facilitator to correctly collect and remit taxes for a retail
8
sale. The information may include a certification that an item
9
being sold is taxable, not taxable, exempt from taxation, or
10
taxable at a specified rate. A marketplace seller shall be
11
held harmless for liability for the tax imposed under this Act
12
when a marketplace facilitator fails to correctly collect and
13
remit tax after having been provided with information by a
14
marketplace seller to correctly collect and remit taxes
15
imposed under this Act.
16

(g) If the marketplace facilitator demonstrates to the
17
satisfaction of the Department that its failure to correctly
18
collect and remit tax on a retail sale resulted from the
19
marketplace facilitator's good faith reliance on incorrect or
20
insufficient information provided by a marketplace seller, it
21
shall be relieved of liability for the tax on that retail sale.
22
In this case, a marketplace seller is liable for any resulting
23
tax due.
24

(h) (Blank).
25

(i) This Section does not affect the tax liability of a
26
purchaser under this Act.

HB5392
- 7 -
LRB104 18823 HLH 32268 b
1

(j) (Blank).
2

(k) A marketplace facilitator required to collect taxes
3
imposed under this Section and this Act on retail sales made
4
through its marketplace shall be liable to the Department for
5
such taxes, except when the marketplace facilitator is
6
relieved of the duty to remit such taxes by virtue of having
7
paid to the Department taxes imposed by the Retailers'
8
Occupation Tax Act upon his or her gross receipts from the same
9
transactions.
10

(l) If, for any reason, the Department is prohibited from
11
enforcing the marketplace facilitator's duty under this Act to
12
collect and remit taxes pursuant to this Section, the duty to
13
collect and remit such taxes reverts to the marketplace seller
14
that is a retailer maintaining a place of business in this
15
State pursuant to Section 2.
16

(m) Nothing in this Section affects the obligation of any
17
consumer to remit use tax for any taxable transaction for
18
which a certified service provider acting on behalf of a
19
remote retailer or a marketplace facilitator does not collect
20
and remit the appropriate tax.
21

(n) Notwithstanding any provision of law, the following
22
provisions 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
9
exclusion under this subsection if the marketplace seller did
10
not charge the delivery network company for the tax imposed
11
under this Act on the qualified network sale. The amount of the
12
deduction or exclusion under this subsection may not exceed
13
the amount of tax under this Act that was charged by the
14
marketplace seller to the delivery network company in
15
connection with the qualified delivery network sale.

16

As used in this subsection, the following terms have the
17
following meanings:

18

"Bicycle" has the meaning given to that term in the
19
Illinois Vehicle Code.

20

"Delivery network company" means a marketplace facilitator
21
that maintains a website, mobile application, or nondigital
22
platform used to facilitate delivery services that are
23
performed or otherwise conducted by a delivery network
24
courier.

25

"Delivery network courier" means an individual who
26
provides delivery services through a delivery network company

HB5392
- 9 -
LRB104 18823 HLH 32268 b
1
by using a personal means of transportation, such as a motor
2
vehicle, bicycle, scooter, or other similar mode of
3
transportation, or walking. "Delivery network courier" does
4
not include a common carrier or a motor carrier.

5

"Delivery services" means the pickup and delivery of
6
tangible personal property by a delivery network courier from
7
a marketplace seller located in this State to a customer
8
located in this State, which may include the selection,
9
collection, and purchase of the tangible personal property in
10
connection with the delivery. "Delivery services" does not
11
include a delivery requiring more than 75 miles of travel from
12
the marketplace seller to the customer.

13

"Motor vehicle" has the meaning given to that term in the
14
Illinois Vehicle Code.

15

"Qualified delivery network sale" means a sale that meets
16
all of the following requirements: (i) the sale is made as part
17
of delivery services facilitated by a delivery network
18
company, (ii) the sale is sourced to this State under this Act,
19
and (iii) the tax imposed by this Act on the sale is paid by
20
the delivery network company to the marketplace seller in
21
connection 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
24
Section 2d as follows:

HB5392
- 10 -
LRB104 18823 HLH 32268 b
1

(35 ILCS 110/2d)
2

Sec. 2d.
Marketplace facilitators and marketplace
3
servicemen.
4

(a) Definitions. For purposes of this Section:
5

"Affiliate" means a person that, with respect to another
6
person: (i) has a direct or indirect ownership interest of
7
more than 5% in the other person; or (ii) is related to the
8
other person because a third person, or group of third persons
9
who are affiliated with each other as defined in this
10
subsection, holds a direct or indirect ownership interest of
11
more than 5% in the related person.
12

"Marketplace" means a physical or electronic place, forum,
13
platform, application, or other method by which a marketplace
14
serviceman makes or offers to make sales of service.
15

"Marketplace facilitator" means a person who, pursuant to
16
an agreement with an unrelated third-party marketplace
17
serviceman, directly or indirectly through one or more
18
affiliates facilitates sales of service by that unrelated
19
third-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
4
offers to make a sale of service through a marketplace
5
operated by an unrelated third-party marketplace facilitator.
6

(b) Beginning January 1, 2020 and through December 31,
7
2025, a marketplace facilitator who meets either of the
8
following thresholds is considered the serviceman for each
9
sale 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
19
basis, ending on the last day of March, June, September, and
20
December, whether the marketplace facilitator meets the
21
threshold of either paragraph (1) or (2) of this subsection
22
(b) for the preceding 12-month period. If the marketplace
23
facilitator meets the threshold of either paragraph (1) or (2)
24
for a 12-month period, it is considered a serviceman
25
maintaining a place of business in this State and is required
26
to collect and remit the tax imposed under this Act and file

HB5392
- 12 -
LRB104 18823 HLH 32268 b
1
returns for one year. At the end of that one-year period, the
2
marketplace facilitator shall determine whether the
3
marketplace facilitator met the threshold of either paragraph
4
(1) or (2) during the preceding 12-month period. If the
5
marketplace facilitator met the threshold in either paragraph
6
(1) or (2) for the preceding 12-month period, it is considered
7
a serviceman maintaining a place of business in this State and
8
is required to collect and remit the tax imposed under this Act
9
and file returns for the subsequent year. If, at the end of a
10
one-year period, a marketplace facilitator that was required
11
to collect and remit the tax imposed under this Act determines
12
that it did not meet the threshold in either paragraph (1) or
13
(2) during the preceding 12-month period, the marketplace
14
facilitator shall subsequently determine on a quarterly basis,
15
ending on the last day of March, June, September, and
16
December, 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
19
facilitator whose cumulative gross receipts from sales of
20
service to purchasers in Illinois by the marketplace
21
facilitator and by marketplace servicemen selling through the
22
marketplace are $100,000 or more is engaged in the business of
23
making sales of service in Illinois for purposes of this Act
24
for each sale of service made through the marketplace.
25

A marketplace facilitator shall determine on a quarterly
26
basis, ending on the last day of March, June, September, and

HB5392
- 13 -
LRB104 18823 HLH 32268 b
1
December, whether the marketplace facilitator meets the
2
threshold in this subsection (b-5) for the preceding 12-month
3
period. If the marketplace facilitator meets the threshold for
4
a 12-month period, the marketplace facilitator is considered a
5
serviceman maintaining a place of business in this State and
6
is required to collect and remit the tax imposed under this Act
7
and file returns for one year. At the end of the one-year
8
period, the marketplace facilitator shall determine whether
9
the marketplace facilitator met the threshold during the
10
preceding 12-month period. If the marketplace facilitator met
11
the threshold for the preceding 12-month period, the
12
marketplace facilitator is considered a serviceman maintaining
13
a place of business in this State and is required to collect
14
and remit the tax imposed under this Act and file returns for
15
the subsequent year. If at the end of a one-year period a
16
marketplace facilitator that was required to collect and remit
17
the tax imposed under this Act determines that the marketplace
18
facilitator did not meet the threshold during the preceding
19
12-month period, the marketplace facilitator shall
20
subsequently determine on a quarterly basis, ending on the
21
last day of March, June, September, and December, whether it
22
meets the threshold for the preceding 12-month period.
23

(c) A marketplace facilitator considered to be the
24
serviceman pursuant to subsection (b) or, beginning January 1,
25
2026, subsection (b-5) of this Section is considered the
26
serviceman for each sale of service made through its

HB5392
- 14 -
LRB104 18823 HLH 32268 b
1
marketplace and is liable for collecting and remitting the tax
2
under this Act on all such sales. The marketplace facilitator
3
has all the rights and duties, and is required to comply with
4
the same requirements and procedures, as all other servicemen
5
maintaining a place of business in this State who are
6
registered or who are required to be registered to collect and
7
remit 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
18
records for all sales of service made through a marketplace in
19
accordance with the requirements of Section 11.
20

(f) A marketplace serviceman shall furnish to the
21
marketplace facilitator information that is necessary for the
22
marketplace facilitator to correctly collect and remit taxes
23
for a sale of service. Such information includes the cost
24
price of any item transferred incident to a sale of service
25
under this Act when the cost price of an item exceeds 50% of
26
the entire billing to the service customer of a sale of service

HB5392
- 15 -
LRB104 18823 HLH 32268 b
1
made through the marketplace. The information may include a
2
certification that an item transferred incident to a sale of
3
service under this Act is taxable, not taxable, exempt from
4
taxation, or taxable at a specified rate. A marketplace
5
serviceman shall be held harmless for liability for the tax
6
imposed under this Act when a marketplace facilitator fails to
7
correctly collect and remit tax after having been provided
8
with information by a marketplace serviceman to correctly
9
collect and remit taxes imposed under this Act.
10

(g) If the marketplace facilitator demonstrates to the
11
satisfaction of the Department that its failure to correctly
12
collect and remit tax on a sale of service resulted from the
13
marketplace facilitator's good faith reliance on incorrect or
14
insufficient information provided by a marketplace serviceman,
15
it shall be relieved of liability for the tax on that sale of
16
service. In this case, a marketplace serviceman is liable for
17
any resulting tax due.
18

(h) (Blank).
19

(i) This Section does not affect the tax liability of a
20
purchaser under this Act.
21

(j) (Blank).
22

(k) A marketplace facilitator required to collect taxes
23
imposed under this Section and this Act on sales of service
24
made through its marketplace shall be liable to the Department
25
for such taxes, except when the marketplace facilitator is
26
relieved of the duty to remit such taxes by virtue of having

HB5392
- 16 -
LRB104 18823 HLH 32268 b
1
paid to the Department taxes imposed by the Service Occupation
2
Tax Act from the same transactions.
3

(l) If, for any reason, the Department is prohibited from
4
enforcing the marketplace facilitator's duty under this Act to
5
collect and remit taxes pursuant to this Section, the duty to
6
collect and remit such taxes reverts to the marketplace
7
serviceman that is a serviceman maintaining a place of
8
business in this State pursuant to Section 2.
9

(m) Nothing in this Section affects the obligation of any
10
consumer to remit service use tax for any taxable transaction
11
for which a certified service provider acting on behalf of a
12
serviceman maintaining a place of business in this State or a
13
marketplace facilitator does not collect and remit the
14
appropriate tax.
15

(n) Notwithstanding any provision of law, the following
16
provisions 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
3
exclusion under this subsection if the marketplace seller did
4
not charge the delivery network company for the tax imposed
5
under this Act on the qualified network sale. The amount of the
6
deduction or exclusion under this subsection may not exceed
7
the amount of tax under this Act that was charged by the
8
marketplace seller to the delivery network company in
9
connection with the qualified delivery network sale.

10

As used in this subsection, the following terms have the
11
following meanings:

12

"Bicycle" has the meaning given to that term in the
13
Illinois Vehicle Code.

14

"Delivery network company" means a marketplace facilitator
15
that maintains a website, mobile application, or nondigital
16
platform used to facilitate delivery services that are
17
performed or otherwise conducted by a delivery network
18
courier.

19

"Delivery network courier" means an individual who
20
provides delivery services through a delivery network company
21
by using a personal means of transportation, such as a motor
22
vehicle, bicycle, scooter, or other similar mode of
23
transportation, or walking. "Delivery network courier" does
24
not include a common carrier or a motor carrier.

25

"Delivery services" means the pickup and delivery of
26
tangible personal property by a delivery network courier from

HB5392
- 18 -
LRB104 18823 HLH 32268 b
1
a marketplace seller located in this State to a customer
2
located in this State, which may include the selection,
3
collection, and purchase of the tangible personal property in
4
connection with the delivery. "Delivery services" does not
5
include a delivery requiring more than 75 miles of travel from
6
the marketplace seller to the customer.

7

"Motor vehicle" has the meaning given to that term in the
8
Illinois Vehicle Code.

9

"Qualified delivery network sale" means a sale that meets
10
all of the following requirements: (i) the sale is made as part
11
of delivery services facilitated by a delivery network
12
company, (ii) the sale is sourced to this State under this Act,
13
and (iii) the tax imposed by this Act on the sale is paid by
14
the delivery network company to the marketplace seller in
15
connection 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
18
changing 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
22
business of making sales of service (referred to as
23
"servicemen") on all tangible personal property transferred,
24
including, on and after January 1, 2025, transferred by lease,

HB5392
- 19 -
LRB104 18823 HLH 32268 b
1
as an incident of a sale of service, including computer
2
software, and including photographs, negatives, and positives
3
that are the product of photoprocessing, but not including
4
products of photoprocessing produced for use in motion
5
pictures for public commercial exhibition. Beginning January
6
1, 2001, prepaid telephone calling arrangements shall be
7
considered tangible personal property subject to the tax
8
imposed under this Act regardless of the form in which those
9
arrangements may be embodied, transmitted, or fixed by any
10
method now known or hereafter developed. Sales of (1)
11
electricity delivered to customers by wire; (2) natural or
12
artificial gas that is delivered to customers through pipes,
13
pipelines, or mains; and (3) water that is delivered to
14
customers through pipes, pipelines, or mains are not subject
15
to tax under this Act. The provisions of this amendatory Act of
16
the 98th General Assembly are declaratory of existing law as
17
to the meaning and scope of this Act.
18

(b) Beginning on January 1, 2026, a serviceman maintaining
19
a place of business in this State that makes sales of service
20
to Illinois customers from a location or locations outside of
21
Illinois is engaged in the business of making sales of service
22
in Illinois for the purposes of this Act. A qualifying
23
serviceman under this subsection (b) is liable for all
24
applicable State and locally imposed service occupation taxes
25
administered by the Department on all tangible personal
26
property transferred as an incident of a sale of service made

HB5392
- 20 -
LRB104 18823 HLH 32268 b
1
by the serviceman to Illinois customers from locations outside
2
of Illinois.
3

(c) A serviceman maintaining a place of business in this
4
State that is required to collect taxes imposed under the
5
Service Use Tax Act on sales of service made to Illinois
6
purchasers shall be liable to the Department for such taxes,
7
except when the serviceman maintaining a place of business in
8
this State is relieved of the duty to remit such taxes by
9
virtue of having paid to the Department taxes imposed by this
10
Act in accordance with this Section upon such sales.
11

(d) Beginning January 1, 2026, a marketplace facilitator
12
whose cumulative gross receipts from sales of service to
13
purchasers in Illinois by the marketplace facilitator and by
14
marketplace servicemen selling through the marketplace are
15
$100,000 or more is engaged in the business of making sales of
16
service in Illinois for purposes of this Act for each sale of
17
service made through its marketplace.
18

A marketplace facilitator who meets the threshold of this
19
subsection (d) is required to remit the applicable State
20
service occupation taxes under this Act and local service
21
occupation taxes administered by the Department on all taxable
22
transfers of tangible personal property made incident to sales
23
of service by the marketplace facilitator or facilitated for
24
marketplace servicemen to customers in this State. A
25
marketplace facilitator transferring or facilitating the
26
transfer of tangible personal property incident to a sale of

HB5392
- 21 -
LRB104 18823 HLH 32268 b
1
service to customers in this State is subject to all
2
applicable procedures and requirements of this Act.
3

The marketplace facilitator shall determine on a quarterly
4
basis, ending on the last day of March, June, September, and
5
December, whether the marketplace facilitator meets the
6
threshold of this subsection (d) for the preceding 12-month
7
period. If the marketplace facilitator meets the threshold for
8
a 12-month period, the marketplace facilitator is considered a
9
serviceman maintaining a place of business in this State and
10
is required to remit the tax imposed under this Act and all
11
service occupation tax imposed by local taxing jurisdictions
12
in Illinois, provided such local taxes are administered by the
13
Department, and to file all applicable returns for one year.
14
At the end of the one-year period, the marketplace facilitator
15
shall determine whether the marketplace facilitator met the
16
threshold for the preceding 12-month period. If the
17
marketplace facilitator met the threshold for the preceding
18
12-month period, the marketplace facilitator is considered a
19
serviceman maintaining a place of business in this State and
20
is required to remit all applicable State and local service
21
occupation taxes and file returns for the subsequent year. If
22
at the end of a one-year period a marketplace facilitator that
23
was required to remit the tax imposed under this Act
24
determines that the marketplace facilitator did not meet the
25
threshold during the preceding 12-month period, the
26
marketplace facilitator shall subsequently determine on a

HB5392
- 22 -
LRB104 18823 HLH 32268 b
1
quarterly basis, ending on the last day of March, June,
2
September, and December, whether he or she meets the threshold
3
for the preceding 12-month period.
4

(e) A marketplace facilitator shall be entitled to any
5
credits, deductions, or adjustments to the sales price
6
otherwise provided to the marketplace serviceman, in addition
7
to any such adjustments provided directly to the marketplace
8
facilitator. This Section pertains to, but is not limited to,
9
adjustments such as discounts, coupons, and rebates. In
10
addition, a marketplace facilitator shall be entitled to the
11
vendors' discount provided in Section 9 of the Service
12
Occupation Tax Act on all marketplace sales of service, and
13
the marketplace serviceman shall not include sales of service
14
made through a marketplace facilitator when computing any
15
vendors' discount on remaining sales of service. Marketplace
16
facilitators shall report and remit the applicable State and
17
local service occupation taxes on sales of service facilitated
18
for marketplace servicemen separately from any service
19
occupation or service use tax collected on taxable sales of
20
service made directly by the marketplace facilitator or its
21
affiliates.
22

The marketplace facilitator is liable for the remittance
23
of all applicable State service occupation taxes under this
24
Act and local service occupation taxes administered by the
25
Department on sales of service through the marketplace and is
26
subject to audit on all such sales of service. The Department

HB5392
- 23 -
LRB104 18823 HLH 32268 b
1
shall not audit marketplace servicemen for their marketplace
2
sales of service where a marketplace facilitator remitted the
3
applicable State and local service occupation taxes unless the
4
marketplace facilitator seeks relief as a result of incorrect
5
information provided to the marketplace facilitator by a
6
marketplace serviceman as set forth in this Section. The
7
marketplace facilitator shall not be held liable for tax on
8
any sales of service made by a marketplace serviceman that
9
take place outside of the marketplace and which are not a part
10
of any agreement between a marketplace facilitator and a
11
marketplace serviceman. In addition, marketplace facilitators
12
shall not be held liable to State and local governments of
13
Illinois for having charged and remitted an incorrect amount
14
of State and local service occupation tax if, at the time of
15
the sale of service, the tax is computed based on erroneous
16
data provided by the State in database files on tax rates,
17
boundaries, or taxing jurisdictions or incorrect information
18
provided to the marketplace facilitator by the marketplace
19
serviceman, including the marketplace serviceman's cost ratio
20
and 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
5
records for all sales of service made through a marketplace in
6
accordance with the requirements of Section 11 of this Act.
7

(h) A marketplace serviceman shall furnish to the
8
marketplace facilitator information that is necessary for the
9
marketplace facilitator to correctly remit taxes for a sale of
10
service. Such information includes the cost price of any item
11
transferred incident to a sale of service under this Act when
12
the cost price of an item exceeds 50% of the total invoice
13
price of a sale of service made through the marketplace. The
14
information may include a certification that an item
15
transferred incident to a sale of service under this Act is
16
taxable, not taxable, exempt from taxation, or taxable at a
17
specified rate. A marketplace serviceman shall be held
18
harmless for liability for the tax imposed under this Act when
19
a marketplace facilitator fails to correctly collect and remit
20
tax after having been provided with information by a
21
marketplace serviceman to correctly collect and remit taxes
22
imposed under this Act.
23

(i) If the marketplace facilitator demonstrates to the
24
satisfaction of the Department that its failure to correctly
25
collect and remit tax on a sale of service resulted from the
26
marketplace facilitator's good faith reliance on incorrect or

HB5392
- 25 -
LRB104 18823 HLH 32268 b
1
insufficient information provided by a marketplace serviceman,
2
it shall be relieved of liability for the tax on that sale of
3
service and the marketplace serviceman shall be liable for any
4
resulting tax due.
5

(j) A marketplace facilitator is subject to audit on all
6
marketplace sales of service for which it is considered to be
7
the serviceman, but shall not be liable for tax or subject to
8
audit on sales of service made by marketplace servicemen
9
outside of the marketplace.
10

(k) A marketplace facilitator required to collect taxes
11
imposed under the Service Use Tax Act on marketplace sales of
12
service made to Illinois purchasers shall be liable to the
13
Department for such taxes, except when the marketplace
14
facilitator is relieved of the duty to remit such taxes by
15
virtue of having paid to the Department taxes imposed by this
16
Act in accordance with this Section from such sales of
17
service.
18

(l) Nothing in this Section shall allow the Department to
19
collect service occupation taxes from both the marketplace
20
facilitator and marketplace serviceman on the same
21
transaction.
22

(m) If, for any reason, the Department is prohibited from
23
enforcing the marketplace facilitator's duty under this Act to
24
remit taxes pursuant to this Section, the duty to remit such
25
taxes remains with the marketplace serviceman.
26

(n) Notwithstanding any provision of law, the following

HB5392
- 26 -
LRB104 18823 HLH 32268 b
1
provisions 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
14
exclusion under this subsection if the marketplace seller did
15
not charge the delivery network company for the tax imposed
16
under this Act on the qualified network sale. The amount of the
17
deduction or exclusion under this subsection may not exceed
18
the amount of tax under this Act that was charged by the
19
marketplace seller to the delivery network company in
20
connection with the qualified delivery network sale.

21

As used in this subsection, the following terms have the
22
following meanings:

23

"Bicycle" has the meaning given to that term in the
24
Illinois Vehicle Code.

25

"Delivery network company" means a marketplace facilitator
26
that maintains a website, mobile application, or nondigital

HB5392
- 27 -
LRB104 18823 HLH 32268 b
1
platform used to facilitate delivery services that are
2
performed or otherwise conducted by a delivery network
3
courier.

4

"Delivery network courier" means an individual who
5
provides delivery services through a delivery network company
6
by using a personal means of transportation, such as a motor
7
vehicle, bicycle, scooter, or other similar mode of
8
transportation, or walking. "Delivery network courier" does
9
not include a common carrier or a motor carrier.

10

"Delivery services" means the pickup and delivery of
11
tangible personal property by a delivery network courier from
12
a marketplace seller located in this State to a customer
13
located in this State, which may include the selection,
14
collection, and purchase of the tangible personal property in
15
connection with the delivery. "Delivery services" does not
16
include a delivery requiring more than 75 miles of travel from
17
the marketplace seller to the customer.

18

"Motor vehicle" has the meaning given to that term in the
19
Illinois Vehicle Code.

20

"Qualified delivery network sale" means a sale that meets
21
all of the following requirements: (i) the sale is made as part
22
of delivery services facilitated by a delivery network
23
company, (ii) the sale is sourced to this State under this Act,
24
and (iii) the tax imposed by this Act on the sale is paid by
25
the delivery network company to the marketplace seller in
26
connection with the delivery services.

HB5392
- 28 -
LRB104 18823 HLH 32268 b
1

(o)
The imposition of the tax under this Act on tangible
2
personal property transferred by lease by persons engaged in
3
the business of making sales of service applies to leases in
4
effect, entered into, or renewed on or after January 1, 2025.
5
In the case of leases, except as otherwise provided in this
6
Act, the serviceman who is a lessor must remit for each tax
7
return period only the tax applicable to that part of the
8
selling 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
11
by 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
15
of selling at retail, which, on and after January 1, 2025,
16
includes leasing, tangible personal property, including
17
computer software, and including photographs, negatives, and
18
positives that are the product of photoprocessing, but not
19
including products of photoprocessing produced for use in
20
motion pictures for public commercial exhibition. Beginning
21
January 1, 2001, prepaid telephone calling arrangements shall
22
be considered tangible personal property subject to the tax
23
imposed under this Act regardless of the form in which those
24
arrangements may be embodied, transmitted, or fixed by any

HB5392
- 29 -
LRB104 18823 HLH 32268 b
1
method now known or hereafter developed.
2

The imposition of the tax under this Act on persons
3
engaged in the business of leasing tangible personal property
4
applies to leases in effect, entered into, or renewed on or
5
after January 1, 2025. In the case of leases, except as
6
otherwise provided in this Act, the lessor must remit, for
7
each tax return period, only the tax applicable to that part of
8
the selling price actually received during such tax return
9
period.
10

The inclusion of leases in the tax imposed under this Act
11
by Public Act 103-592 does not, however, extend to motor
12
vehicles, watercraft, aircraft, and semitrailers, as defined
13
in Section 1-187 of the Illinois Vehicle Code, that are
14
required to be registered with an agency of this State. The
15
taxation of these items shall continue in effect as prior to
16
the effective date of the changes made to this Section by
17
Public Act 103-592 (i.e., dealers owe retailers' occupation
18
tax, lessors owe use tax, and lessees are not subject to
19
retailers' 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
22
through pipes, pipelines, or mains; and (3) water that is
23
delivered to customers through pipes, pipelines, or mains are
24
not subject to tax under this Act. The provisions of Public Act
25
98-583 are declaratory of existing law as to the meaning and
26
scope of this Act.

HB5392
- 30 -
LRB104 18823 HLH 32268 b
1

(b) Beginning on January 1, 2021 and through December 31,
2
2025, a remote retailer is engaged in the occupation of
3
selling 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
11
either paragraph (1) or (2) above shall be liable for all
12
applicable State retailers' and locally imposed retailers'
13
occupation taxes administered by the Department on all retail
14
sales to Illinois purchasers.
15

The remote retailer shall determine on a quarterly basis,
16
ending on the last day of March, June, September, and
17
December, whether it meets the threshold of either paragraph
18
(1) or (2) of this subsection for the preceding 12-month
19
period. If the retailer meets the threshold of either
20
paragraph (1) or (2) for a 12-month period, he or she is
21
considered a retailer maintaining a place of business in this
22
State and is required to collect and remit the tax imposed
23
under this Act and all retailers' occupation tax imposed by
24
local taxing jurisdictions in Illinois, provided such local
25
taxes are administered by the Department, and to file all
26
applicable returns for one year. At the end of that one-year

HB5392
- 31 -
LRB104 18823 HLH 32268 b
1
period, the retailer shall determine whether the retailer met
2
the threshold of either paragraph (1) or (2) for the preceding
3
12-month period. If the retailer met the threshold in either
4
paragraph (1) or (2) for the preceding 12-month period, it is
5
considered a retailer maintaining a place of business in this
6
State and is required to collect and remit all applicable
7
State and local retailers' occupation taxes and file returns
8
for the subsequent year. If, at the end of a one-year period, a
9
retailer that was required to collect and remit the tax
10
imposed under this Act determines that it did not meet the
11
threshold in either paragraph (1) or (2) during the preceding
12
12-month period, then the retailer shall subsequently
13
determine on a quarterly basis, ending on the last day of
14
March, June, September, and December, whether the retailer met
15
the threshold of either paragraph (1) or (2) for the preceding
16
12-month period.
17

(b-1) Beginning on January 1, 2026, a remote retailer is
18
engaged in the occupation of selling at retail in Illinois for
19
purposes of this Act if the remote retailer's cumulative gross
20
receipts from sales of tangible personal property to
21
purchasers in Illinois are $100,000 or more.
22

Remote retailers that meet or exceed the threshold in this
23
subsection (b-1) shall be liable for all applicable State and
24
locally imposed retailers' occupation taxes administered by
25
the 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
1
ending on the last day of March, June, September, and
2
December, whether the remote retailer meets the threshold of
3
this subsection (b-1) for the preceding 12-month period. If
4
the remote retailer meets the threshold for a 12-month period,
5
the remote retailer is considered to be engaged in the
6
occupation of selling at retail in Illinois and is required to
7
remit the tax imposed under this Act and all retailers'
8
occupation tax imposed by local taxing jurisdictions in
9
Illinois, provided such local taxes are administered by the
10
Department, and to file all applicable returns for one year.
11
At the end of the one-year period, the remote retailer shall
12
determine whether the remote retailer met the threshold for
13
the preceding 12-month period. If the retailer met the
14
threshold for the preceding 12-month period, the remote
15
retailer is considered to be engaged in the occupation of
16
selling at retail in Illinois and is required to remit all
17
applicable State and local retailers' occupation taxes and
18
file returns for the subsequent year. If, at the end of a
19
one-year period, a remote retailer that was required to remit
20
the tax imposed under this Act determines that the remote
21
retailer did not meet the threshold during the preceding
22
12-month period, then the remote retailer shall subsequently
23
determine on a quarterly basis, ending on the last day of
24
March, June, September, and December, whether the remote
25
retailer 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
1
a place of business in this State that makes retail sales of
2
tangible personal property to Illinois customers from a
3
location or locations outside of Illinois is engaged in the
4
occupation of selling at retail in Illinois for the purposes
5
of this Act. Those retailers are liable for all applicable
6
State and locally imposed retailers' occupation taxes
7
administered by the Department on retail sales made by those
8
retailers to Illinois customers from locations outside of
9
Illinois.
10

(b-5) For the purposes of this Section, neither the gross
11
receipts from nor, until January 1, 2026, the number of
12
separate transactions for sales of tangible personal property
13
to purchasers in Illinois that a remote retailer makes through
14
a marketplace facilitator shall be included for the purposes
15
of determining whether he or she has met the thresholds of
16
subsection (b) or (b-1) of this Section so long as the remote
17
retailer has received certification from the marketplace
18
facilitator that the marketplace facilitator is legally
19
responsible for payment of tax on such sales.
20

(b-10) A remote retailer that is required to collect taxes
21
imposed under the Use Tax Act on retail sales made to Illinois
22
purchasers or a retailer maintaining a place of business in
23
this State that is required to collect taxes imposed under the
24
Use Tax Act on retail sales made to Illinois purchasers shall
25
be liable to the Department for such taxes, except when the
26
remote retailer or retailer maintaining a place of business in

HB5392
- 34 -
LRB104 18823 HLH 32268 b
1
this State is relieved of the duty to remit such taxes by
2
virtue of having paid to the Department taxes imposed by this
3
Act in accordance with this Section upon his or her gross
4
receipts from such sales.
5

(c) Marketplace facilitators engaged in the business of
6
selling at retail tangible personal property in Illinois.
7
Beginning January 1, 2021 and through December 31, 2025, a
8
marketplace facilitator is engaged in the occupation of
9
selling at retail tangible personal property in Illinois for
10
purposes 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)
23
or (2) of this subsection is required to remit the applicable
24
State retailers' occupation taxes under this Act and local
25
retailers' occupation taxes administered by the Department on
26
all taxable sales of tangible personal property made by the

HB5392
- 35 -
LRB104 18823 HLH 32268 b
1
marketplace facilitator or facilitated for marketplace sellers
2
to customers in this State. A marketplace facilitator selling
3
or facilitating the sale of tangible personal property to
4
customers in this State is subject to all applicable
5
procedures and requirements of this Act.
6

The marketplace facilitator shall determine on a quarterly
7
basis, ending on the last day of March, June, September, and
8
December, whether it meets the threshold of either paragraph
9
(1) or (2) of this subsection for the preceding 12-month
10
period. If the marketplace facilitator meets the threshold of
11
either paragraph (1) or (2) for a 12-month period, the
12
marketplace facilitator is considered a retailer maintaining a
13
place of business in this State and is required to remit the
14
tax imposed under this Act and all retailers' occupation tax
15
imposed by local taxing jurisdictions in Illinois, provided
16
such local taxes are administered by the Department, and to
17
file all applicable returns for one year. At the end of that
18
one-year period, the marketplace facilitator shall determine
19
whether it met the threshold of either paragraph (1) or (2) for
20
the preceding 12-month period. If the marketplace facilitator
21
met the threshold in either paragraph (1) or (2) for the
22
preceding 12-month period, it is considered a retailer
23
maintaining a place of business in this State and is required
24
to collect and remit all applicable State and local retailers'
25
occupation taxes and file returns for the subsequent year. If
26
at the end of a one-year period a marketplace facilitator that

HB5392
- 36 -
LRB104 18823 HLH 32268 b
1
was required to collect and remit the tax imposed under this
2
Act determines that it did not meet the threshold in either
3
paragraph (1) or (2) during the preceding 12-month period, the
4
marketplace facilitator shall subsequently determine on a
5
quarterly basis, ending on the last day of March, June,
6
September, and December, whether it met the threshold of
7
either paragraph (1) or (2) for the preceding 12-month period.
8

(c-5) Beginning January 1, 2026, a marketplace facilitator
9
is engaged in the occupation of selling at retail tangible
10
personal property in Illinois for purposes of this Act if,
11
during the previous 12-month period the cumulative gross
12
receipts from sales of tangible personal property on its own
13
behalf or on behalf of marketplace sellers to purchasers in
14
Illinois equals $100,000 or more.
15

A marketplace facilitator who meets the threshold of this
16
subsection is required to remit the applicable State
17
retailers' occupation taxes under this Act and local
18
retailers' occupation taxes administered by the Department on
19
all taxable sales of tangible personal property made by the
20
marketplace facilitator or facilitated for marketplace sellers
21
to customers in this State. A marketplace facilitator selling
22
or facilitating the sale of tangible personal property to
23
customers in this State is subject to all applicable
24
procedures and requirements of this Act.
25

The marketplace facilitator shall determine on a quarterly
26
basis, ending on the last day of March, June, September, and

HB5392
- 37 -
LRB104 18823 HLH 32268 b
1
December, whether the marketplace facilitator meets the
2
threshold of this subsection (c-5) for the preceding 12-month
3
period. If the marketplace facilitator meets the threshold for
4
a 12-month period, the marketplace facilitator is considered
5
to be engaged in the occupation of selling at retail in
6
Illinois and is required to remit the tax imposed under this
7
Act and all retailers' occupation tax imposed by local taxing
8
jurisdictions in Illinois, provided such local taxes are
9
administered by the Department, and to file all applicable
10
returns for one year. At the end of the one-year period, the
11
marketplace facilitator shall determine whether the
12
marketplace facilitator met the threshold for the preceding
13
12-month period. If the marketplace facilitator met the
14
threshold for the preceding 12-month period, the marketplace
15
facilitator is considered to be engaged in the occupation of
16
selling at retail in Illinois and is required to collect and
17
remit all applicable State and local retailers' occupation
18
taxes and file returns for the subsequent year. If at the end
19
of a one-year period a marketplace facilitator that was
20
required to collect and remit the tax imposed under this Act
21
determines that the marketplace facilitator did not meet the
22
threshold during the preceding 12-month period, the
23
marketplace facilitator shall subsequently determine on a
24
quarterly basis, ending on the last day of March, June,
25
September, and December, whether it met the threshold for the
26
preceding 12-month period.

HB5392
- 38 -
LRB104 18823 HLH 32268 b
1

(c-10) A marketplace facilitator shall be entitled to any
2
credits, deductions, or adjustments to the sales price
3
otherwise provided to the marketplace seller, in addition to
4
any such adjustments provided directly to the marketplace
5
facilitator. This Section pertains to, but is not limited to,
6
adjustments such as discounts, coupons, and rebates. In
7
addition, a marketplace facilitator shall be entitled to the
8
retailers' discount provided in Section 3 of the Retailers'
9
Occupation Tax Act on all marketplace sales, and the
10
marketplace seller shall not include sales made through a
11
marketplace facilitator when computing any retailers' discount
12
on remaining sales. Marketplace facilitators shall report and
13
remit the applicable State and local retailers' occupation
14
taxes on sales facilitated for marketplace sellers separately
15
from any sales or use tax collected on taxable retail sales
16
made directly by the marketplace facilitator or its
17
affiliates.
18

The marketplace facilitator is liable for the remittance
19
of all applicable State retailers' occupation taxes under this
20
Act and local retailers' occupation taxes administered by the
21
Department on sales through the marketplace and is subject to
22
audit on all such sales. The Department shall not audit
23
marketplace sellers for their marketplace sales where a
24
marketplace facilitator remitted the applicable State and
25
local retailers' occupation taxes unless the marketplace
26
facilitator seeks relief as a result of incorrect information

HB5392
- 39 -
LRB104 18823 HLH 32268 b
1
provided to the marketplace facilitator by a marketplace
2
seller as set forth in this Section. The marketplace
3
facilitator shall not be held liable for tax on any sales made
4
by a marketplace seller that take place outside of the
5
marketplace and which are not a part of any agreement between a
6
marketplace facilitator and a marketplace seller. In addition,
7
marketplace facilitators shall not be held liable to State and
8
local governments of Illinois for having charged and remitted
9
an incorrect amount of State and local retailers' occupation
10
tax if, at the time of the sale, the tax is computed based on
11
erroneous data provided by the State in database files on tax
12
rates, boundaries, or taxing jurisdictions or incorrect
13
information provided to the marketplace facilitator by the
14
marketplace 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
23
for all sales made through a marketplace in accordance with
24
the requirements of this Act.
25

(f) A marketplace facilitator is subject to audit on all
26
marketplace sales for which it is considered to be the

HB5392
- 40 -
LRB104 18823 HLH 32268 b
1
retailer, but shall not be liable for tax or subject to audit
2
on sales made by marketplace sellers outside of the
3
marketplace.
4

(g) A marketplace facilitator required to collect taxes
5
imposed under the Use Tax Act on marketplace sales made to
6
Illinois purchasers shall be liable to the Department for such
7
taxes, except when the marketplace facilitator is relieved of
8
the duty to remit such taxes by virtue of having paid to the
9
Department taxes imposed by this Act in accordance with this
10
Section upon his or her gross receipts from such sales.
11

(h) Nothing in this Section shall allow the Department to
12
collect retailers' occupation taxes from both the marketplace
13
facilitator and marketplace seller on the same transaction.
14

(i) If, for any reason, the Department is prohibited from
15
enforcing the marketplace facilitator's duty under this Act to
16
remit taxes pursuant to this Section, the duty to remit such
17
taxes remains with the marketplace seller.
18

(j) (Blank).
19

(k) (Blank).
20

(l) A marketplace seller shall furnish to the marketplace
21
facilitator information that is necessary for the marketplace
22
facilitator to correctly remit taxes for a retail sale. The
23
information may include a certification that an item being
24
sold is taxable, not taxable, exempt from taxation, or taxable
25
at a specified rate. A marketplace seller shall be held
26
harmless for liability for the tax imposed under this Act when

HB5392
- 41 -
LRB104 18823 HLH 32268 b
1
a marketplace facilitator fails to correctly remit tax after
2
having been provided with information by a marketplace seller
3
to correctly remit taxes imposed under this Act.
4

(m) If the marketplace facilitator demonstrates to the
5
satisfaction of the Department that its failure to correctly
6
remit tax on a retail sale resulted from the marketplace
7
facilitator's good faith reliance on incorrect or insufficient
8
information provided by a marketplace seller, it shall be
9
relieved of liability for the tax on that retail sale and the
10
marketplace seller shall be liable for any resulting tax due.
11

(n) Notwithstanding any provision of law, the following
12
provisions 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
25
exclusion under this subsection if the marketplace seller did
26
not charge the delivery network company for the tax imposed

HB5392
- 42 -
LRB104 18823 HLH 32268 b
1
under this Act on the qualified network sale. The amount of the
2
deduction or exclusion under this subsection may not exceed
3
the amount of tax under this Act that was charged by the
4
marketplace seller to the delivery network company in
5
connection with the qualified delivery network sale.

6

As used in this subsection, the following terms have the
7
following meanings:

8

"Bicycle" has the meaning given to that term in the
9
Illinois Vehicle Code.

10

"Delivery network company" means a marketplace facilitator
11
that maintains a website, mobile application, or nondigital
12
platform used to facilitate delivery services that are
13
performed or otherwise conducted by a delivery network
14
courier.

15

"Delivery network courier" means an individual who
16
provides delivery services through a delivery network company
17
by using a personal means of transportation, such as a motor
18
vehicle, bicycle, scooter, or other similar mode of
19
transportation, or walking. "Delivery network courier" does
20
not include a common carrier or a motor carrier.

21

"Delivery services" means the pickup and delivery of
22
tangible personal property by a delivery network courier from
23
a marketplace seller located in this State to a customer
24
located in this State, which may include the selection,
25
collection, and purchase of the tangible personal property in
26
connection with the delivery. "Delivery services" does not

HB5392
- 43 -
LRB104 18823 HLH 32268 b
1
include a delivery requiring more than 75 miles of travel from
2
the marketplace seller to the customer.

3

"Motor vehicle" has the meaning given to that term in the
4
Illinois Vehicle Code.

5

"Qualified delivery network sale" means a sale that meets
6
all of the following requirements: (i) the sale is made as part
7
of delivery services facilitated by a delivery network
8
company, (ii) the sale is sourced to this State under this Act,
9
and (iii) the tax imposed by this Act on the sale is paid by
10
the delivery network company to the marketplace seller in
11
connection with the delivery services.

12
(Source: P.A. 103-592, eff. 1-1-25; 103-983, eff. 1-1-25;
13
104-6, eff. 6-16-25.)

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn