Illinois Compiled Statutes

35 ILCS 120/2-40 (2026)

Purchaser refunds

✓ current as of May 2026
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(35 ILCS 120/2-40) (from Ch. 120, par. 441-40)
    Sec. 2-40. Purchaser refunds. If a seller collects an amount (however designated) that purports to reimburse the seller for retailers' occupation tax liability measured by receipts that are not subject to retailers' occupation tax, or if a seller, in collecting an amount (however designated) that purports to reimburse the seller for retailers' occupation tax liability measured by receipts that are subject to tax under this Act, collects more from the purchaser than the seller's retailers' occupation tax liability on the transaction, the purchaser shall have a legal right to claim a refund of that amount from the seller. If, however, that amount is not refunded to the purchaser for any reason, the seller is liable to pay that amount to the Department. This paragraph does not apply to an amount collected by the seller as reimbursement for the seller's retailers' occupation tax liability on receipts that are subject to tax under this Act as long as the collection is made in compliance with the tax collection brackets prescribed by the Department in its rules and regulations.
(Source: P.A. 91-51, eff. 6-30-99.)

    
Notes of Decisions
Cited in 2 cases, 1993–2013 · leading case: Illinois, Dep't of Revenue v. Steege (In Re Markos Gurnee P'ship), 163 B.R. 124 (Bankr. N.D. Ill. 1993).
Illinois, Dep't of Revenue v. Steege (In Re Markos Gurnee P'ship), 163 B.R. 124 (Bankr. N.D. Ill. 1993). “The tax operates in a manner parallel to the Hotel Operators’ Occupation tax: it is calculated by applying a prescribed statutory rate to the gross receipts from sales of tangible personal property made in the course of a retailer’s business, 35 ILCS 120/2-10 (1992), and may be…”
Nava v. Sears, Roebuck & Co., 2013 IL App (1st) 122063 (Ill. App. Ct. 2013). “35 ILCS 120/2-40 (West 2010). Accordingly, “[i]n the usual case, the use tax is collected from the purchaser by the retailer, who must remit the tax to the [Department].”
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