98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2243

 

Introduced 2/15/2013, by Sen. Linda Holmes

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2a  from Ch. 120, par. 441a

    Amends the Retailers' Occupation Tax Act. In a Section concerning certificates of registration, removes a requirement that an application must contain the social security number of each corporate officer of a corporation and each manager and member of a limited liability company. Effective immediately.


LRB098 09659 HLH 39805 b

 

 

A BILL FOR

 

SB2243LRB098 09659 HLH 39805 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 Retailers' Occupation Tax Act is amended by
5changing Section 2a as follows:
 
6    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
7    Sec. 2a. It is unlawful for any person to engage in the
8business of selling tangible personal property at retail in
9this State without a certificate of registration from the
10Department. Application for a certificate of registration
11shall be made to the Department upon forms furnished by it.
12Each such application shall be signed and verified and shall
13state: (1) the name and social security number of the
14applicant; (2) the address of his principal place of business;
15(3) the address of the principal place of business from which
16he engages in the business of selling tangible personal
17property at retail in this State and the addresses of all other
18places of business, if any (enumerating such addresses, if any,
19in a separate list attached to and made a part of the
20application), from which he engages in the business of selling
21tangible personal property at retail in this State; (4) the
22name and address of the person or persons who will be
23responsible for filing returns and payment of taxes due under

 

 

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1this Act; (5) in the case of a corporation, the name and ,
2title, and social security number of each corporate officer;
3(6) in the case of a limited liability company, the name,
4social security number, and FEIN number of each manager and
5member; and (7) such other information as the Department may
6reasonably require. The application shall contain an
7acceptance of responsibility signed by the person or persons
8who will be responsible for filing returns and payment of the
9taxes due under this Act. If the applicant will sell tangible
10personal property at retail through vending machines, his
11application to register shall indicate the number of vending
12machines to be so operated. If requested by the Department at
13any time, that person shall verify the total number of vending
14machines he or she uses in his or her business of selling
15tangible personal property at retail.
16    The Department may deny a certificate of registration to
17any applicant if the owner, any partner, any manager or member
18of a limited liability company, or a corporate officer of the
19applicant, is or has been the owner, a partner, a manager or
20member of a limited liability company, or a corporate officer,
21of another retailer that is in default for moneys due under
22this Act.
23    The Department may require an applicant for a certificate
24of registration hereunder to, at the time of filing such
25application, furnish a bond from a surety company authorized to
26do business in the State of Illinois, or an irrevocable bank

 

 

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1letter of credit or a bond signed by 2 personal sureties who
2have filed, with the Department, sworn statements disclosing
3net assets equal to at least 3 times the amount of the bond to
4be required of such applicant, or a bond secured by an
5assignment of a bank account or certificate of deposit, stocks
6or bonds, conditioned upon the applicant paying to the State of
7Illinois all moneys becoming due under this Act and under any
8other State tax law or municipal or county tax ordinance or
9resolution under which the certificate of registration that is
10issued to the applicant under this Act will permit the
11applicant to engage in business without registering separately
12under such other law, ordinance or resolution. In making a
13determination as to whether to require a bond or other
14security, the Department shall take into consideration whether
15the owner, any partner, any manager or member of a limited
16liability company, or a corporate officer of the applicant is
17or has been the owner, a partner, a manager or member of a
18limited liability company, or a corporate officer of another
19retailer that is in default for moneys due under this Act or
20any other tax or fee Act administered by the Department; and
21whether the owner, any partner, any manager or member of a
22limited liability company, or a corporate officer of the
23applicant is or has been the owner, a partner, a manager or
24member of a limited liability company, or a corporate officer
25of another retailer whose certificate of registration has been
26revoked within the previous 5 years under this Act or any other

 

 

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1tax or fee Act administered by the Department. If a bond or
2other security is required, the Department shall fix the amount
3of the bond or other security, taking into consideration the
4amount of money expected to become due from the applicant under
5this Act and under any other State tax law or municipal or
6county tax ordinance or resolution under which the certificate
7of registration that is issued to the applicant under this Act
8will permit the applicant to engage in business without
9registering separately under such other law, ordinance, or
10resolution. The amount of security required by the Department
11shall be such as, in its opinion, will protect the State of
12Illinois against failure to pay the amount which may become due
13from the applicant under this Act and under any other State tax
14law or municipal or county tax ordinance or resolution under
15which the certificate of registration that is issued to the
16applicant under this Act will permit the applicant to engage in
17business without registering separately under such other law,
18ordinance or resolution, but the amount of the security
19required by the Department shall not exceed three times the
20amount of the applicant's average monthly tax liability, or
21$50,000.00, whichever amount is lower.
22    No certificate of registration under this Act shall be
23issued by the Department until the applicant provides the
24Department with satisfactory security, if required, as herein
25provided for.
26    Upon receipt of the application for certificate of

 

 

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1registration in proper form, and upon approval by the
2Department of the security furnished by the applicant, if
3required, the Department shall issue to such applicant a
4certificate of registration which shall permit the person to
5whom it is issued to engage in the business of selling tangible
6personal property at retail in this State. The certificate of
7registration shall be conspicuously displayed at the place of
8business which the person so registered states in his
9application to be the principal place of business from which he
10engages in the business of selling tangible personal property
11at retail in this State.
12    No certificate of registration issued to a taxpayer who
13files returns required by this Act on a monthly basis shall be
14valid after the expiration of 5 years from the date of its
15issuance or last renewal. The expiration date of a
16sub-certificate of registration shall be that of the
17certificate of registration to which the sub-certificate
18relates. A certificate of registration shall automatically be
19renewed, subject to revocation as provided by this Act, for an
20additional 5 years from the date of its expiration unless
21otherwise notified by the Department as provided by this
22paragraph. Where a taxpayer to whom a certificate of
23registration is issued under this Act is in default to the
24State of Illinois for delinquent returns or for moneys due
25under this Act or any other State tax law or municipal or
26county ordinance administered or enforced by the Department,

 

 

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1the Department shall, not less than 120 days before the
2expiration date of such certificate of registration, give
3notice to the taxpayer to whom the certificate was issued of
4the account period of the delinquent returns, the amount of
5tax, penalty and interest due and owing from the taxpayer, and
6that the certificate of registration shall not be automatically
7renewed upon its expiration date unless the taxpayer, on or
8before the date of expiration, has filed and paid the
9delinquent returns or paid the defaulted amount in full. A
10taxpayer to whom such a notice is issued shall be deemed an
11applicant for renewal. The Department shall promulgate
12regulations establishing procedures for taxpayers who file
13returns on a monthly basis but desire and qualify to change to
14a quarterly or yearly filing basis and will no longer be
15subject to renewal under this Section, and for taxpayers who
16file returns on a yearly or quarterly basis but who desire or
17are required to change to a monthly filing basis and will be
18subject to renewal under this Section.
19    The Department may in its discretion approve renewal by an
20applicant who is in default if, at the time of application for
21renewal, the applicant files all of the delinquent returns or
22pays to the Department such percentage of the defaulted amount
23as may be determined by the Department and agrees in writing to
24waive all limitations upon the Department for collection of the
25remaining defaulted amount to the Department over a period not
26to exceed 5 years from the date of renewal of the certificate;

 

 

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1however, no renewal application submitted by an applicant who
2is in default shall be approved if the immediately preceding
3renewal by the applicant was conditioned upon the installment
4payment agreement described in this Section. The payment
5agreement herein provided for shall be in addition to and not
6in lieu of the security that may be required by this Section of
7a taxpayer who is no longer considered a prior continuous
8compliance taxpayer. The execution of the payment agreement as
9provided in this Act shall not toll the accrual of interest at
10the statutory rate.
11    The Department may suspend a certificate of registration if
12the Department finds that the person to whom the certificate of
13registration has been issued knowingly sold contraband
14cigarettes.
15    A certificate of registration issued under this Act more
16than 5 years before the effective date of this amendatory Act
17of 1989 shall expire and be subject to the renewal provisions
18of this Section on the next anniversary of the date of issuance
19of such certificate which occurs more than 6 months after the
20effective date of this amendatory Act of 1989. A certificate of
21registration issued less than 5 years before the effective date
22of this amendatory Act of 1989 shall expire and be subject to
23the renewal provisions of this Section on the 5th anniversary
24of the issuance of the certificate.
25    If the person so registered states that he operates other
26places of business from which he engages in the business of

 

 

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1selling tangible personal property at retail in this State, the
2Department shall furnish him with a sub-certificate of
3registration for each such place of business, and the applicant
4shall display the appropriate sub-certificate of registration
5at each such place of business. All sub-certificates of
6registration shall bear the same registration number as that
7appearing upon the certificate of registration to which such
8sub-certificates relate.
9    If the applicant will sell tangible personal property at
10retail through vending machines, the Department shall furnish
11him with a sub-certificate of registration for each such
12vending machine, and the applicant shall display the
13appropriate sub-certificate of registration on each such
14vending machine by attaching the sub-certificate of
15registration to a conspicuous part of such vending machine. If
16a person who is registered to sell tangible personal property
17at retail through vending machines adds an additional vending
18machine or additional vending machines to the number of vending
19machines he or she uses in his or her business of selling
20tangible personal property at retail, he or she shall notify
21the Department, on a form prescribed by the Department, to
22request an additional sub-certificate or additional
23sub-certificates of registration, as applicable. With each
24such request, the applicant shall report the number of
25sub-certificates of registration he or she is requesting as
26well as the total number of vending machines from which he or

 

 

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1she makes retail sales.
2    Where the same person engages in 2 or more businesses of
3selling tangible personal property at retail in this State,
4which businesses are substantially different in character or
5engaged in under different trade names or engaged in under
6other substantially dissimilar circumstances (so that it is
7more practicable, from an accounting, auditing or bookkeeping
8standpoint, for such businesses to be separately registered),
9the Department may require or permit such person (subject to
10the same requirements concerning the furnishing of security as
11those that are provided for hereinbefore in this Section as to
12each application for a certificate of registration) to apply
13for and obtain a separate certificate of registration for each
14such business or for any of such businesses, under a single
15certificate of registration supplemented by related
16sub-certificates of registration.
17    Any person who is registered under the "Retailers'
18Occupation Tax Act" as of March 8, 1963, and who, during the
193-year period immediately prior to March 8, 1963, or during a
20continuous 3-year period part of which passed immediately
21before and the remainder of which passes immediately after
22March 8, 1963, has been so registered continuously and who is
23determined by the Department not to have been either delinquent
24or deficient in the payment of tax liability during that period
25under this Act or under any other State tax law or municipal or
26county tax ordinance or resolution under which the certificate

 

 

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1of registration that is issued to the registrant under this Act
2will permit the registrant to engage in business without
3registering separately under such other law, ordinance or
4resolution, shall be considered to be a Prior Continuous
5Compliance taxpayer. Also any taxpayer who has, as verified by
6the Department, faithfully and continuously complied with the
7condition of his bond or other security under the provisions of
8this Act for a period of 3 consecutive years shall be
9considered to be a Prior Continuous Compliance taxpayer.
10    Every Prior Continuous Compliance taxpayer shall be exempt
11from all requirements under this Act concerning the furnishing
12of a bond or other security as a condition precedent to his
13being authorized to engage in the business of selling tangible
14personal property at retail in this State. This exemption shall
15continue for each such taxpayer until such time as he may be
16determined by the Department to be delinquent in the filing of
17any returns, or is determined by the Department (either through
18the Department's issuance of a final assessment which has
19become final under the Act, or by the taxpayer's filing of a
20return which admits tax that is not paid to be due) to be
21delinquent or deficient in the paying of any tax under this Act
22or under any other State tax law or municipal or county tax
23ordinance or resolution under which the certificate of
24registration that is issued to the registrant under this Act
25will permit the registrant to engage in business without
26registering separately under such other law, ordinance or

 

 

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1resolution, at which time that taxpayer shall become subject to
2all the financial responsibility requirements of this Act and,
3as a condition of being allowed to continue to engage in the
4business of selling tangible personal property at retail, may
5be required to post bond or other acceptable security with the
6Department covering liability which such taxpayer may
7thereafter incur. Any taxpayer who fails to pay an admitted or
8established liability under this Act may also be required to
9post bond or other acceptable security with this Department
10guaranteeing the payment of such admitted or established
11liability.
12    No certificate of registration shall be issued to any
13person who is in default to the State of Illinois for moneys
14due under this Act or under any other State tax law or
15municipal or county tax ordinance or resolution under which the
16certificate of registration that is issued to the applicant
17under this Act will permit the applicant to engage in business
18without registering separately under such other law, ordinance
19or resolution.
20    Any person aggrieved by any decision of the Department
21under this Section may, within 20 days after notice of such
22decision, protest and request a hearing, whereupon the
23Department shall give notice to such person of the time and
24place fixed for such hearing and shall hold a hearing in
25conformity with the provisions of this Act and then issue its
26final administrative decision in the matter to such person. In

 

 

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1the absence of such a protest within 20 days, the Department's
2decision shall become final without any further determination
3being made or notice given.
4    With respect to security other than bonds (upon which the
5Department may sue in the event of a forfeiture), if the
6taxpayer fails to pay, when due, any amount whose payment such
7security guarantees, the Department shall, after such
8liability is admitted by the taxpayer or established by the
9Department through the issuance of a final assessment that has
10become final under the law, convert the security which that
11taxpayer has furnished into money for the State, after first
12giving the taxpayer at least 10 days' written notice, by
13registered or certified mail, to pay the liability or forfeit
14such security to the Department. If the security consists of
15stocks or bonds or other securities which are listed on a
16public exchange, the Department shall sell such securities
17through such public exchange. If the security consists of an
18irrevocable bank letter of credit, the Department shall convert
19the security in the manner provided for in the Uniform
20Commercial Code. If the security consists of a bank certificate
21of deposit, the Department shall convert the security into
22money by demanding and collecting the amount of such bank
23certificate of deposit from the bank which issued such
24certificate. If the security consists of a type of stocks or
25other securities which are not listed on a public exchange, the
26Department shall sell such security to the highest and best

 

 

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1bidder after giving at least 10 days' notice of the date, time
2and place of the intended sale by publication in the "State
3Official Newspaper". If the Department realizes more than the
4amount of such liability from the security, plus the expenses
5incurred by the Department in converting the security into
6money, the Department shall pay such excess to the taxpayer who
7furnished such security, and the balance shall be paid into the
8State Treasury.
9    The Department shall discharge any surety and shall release
10and return any security deposited, assigned, pledged or
11otherwise provided to it by a taxpayer under this Section
12within 30 days after:
13        (1) such taxpayer becomes a Prior Continuous
14    Compliance taxpayer; or
15        (2) such taxpayer has ceased to collect receipts on
16    which he is required to remit tax to the Department, has
17    filed a final tax return, and has paid to the Department an
18    amount sufficient to discharge his remaining tax
19    liability, as determined by the Department, under this Act
20    and under every other State tax law or municipal or county
21    tax ordinance or resolution under which the certificate of
22    registration issued under this Act permits the registrant
23    to engage in business without registering separately under
24    such other law, ordinance or resolution. The Department
25    shall make a final determination of the taxpayer's
26    outstanding tax liability as expeditiously as possible

 

 

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1    after his final tax return has been filed; if the
2    Department cannot make such final determination within 45
3    days after receiving the final tax return, within such
4    period it shall so notify the taxpayer, stating its reasons
5    therefor.
6(Source: P.A. 96-1355, eff. 7-28-10; 97-335, eff. 1-1-12.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.