1. a) Registered Serviceman

   	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 (½ of gross receipts)
   De Minimis (paying SOT on cost price)	$100	$200	$500	$100 (Cost price)

2. b) De minimis serviceman not required to be registered as a retailer under Section 2a of the Retailers' Occupation Tax Act.

   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.)

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.

(Source: Added at 25 Ill. Reg. 4971, effective March 23, 2001)