Ill. Admin. Code tit. 86 § 140.110
An auto mechanic contracts to repair a customer's automobile. In this example, the serviceman's entire bill to the customer is $500. Labor costs account for $300 of the total, and the serviceman's cost price of parts transferred totals $100. The selling price of the parts, if separately stated, would be $200. The following chart represents the manner in which this serviceman might incur tax under the different methods discussed in Sections 140.106, 140.108 and 140.109.
Cost Price | Selling Price | Gross Receipts | Service Occupation Tax Base | |
Separately Stated | $100 | $200 | $500 | $200 (Selling price) |
Not Separately Stated | $100 | -0- | $500 | $250 (1/2 of gross receipts) |
De Minimis (paying SOT on cost price) | $100 | $200 | $500 | $100 (Cost price) |
Cost Price | Selling Price | Gross Receipts | Service Occupation Tax Base |
$100 | $200 | $500 | ** |
** (Not subject to Service Occupation Tax if not required to be registered as a retailer under Section 2a of the Retailers' Occupation Tax Act. Subject instead to Use Tax on $100, see Section 140.108.)
Ill. Admin. Code tit. 86, § 140.110
Added at 25 Ill. Reg. 4971, effective March 23, 2001