[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB2288
30 ILCS 105/5.449 new
30 ILCS 115/1b new
30 ILCS 115/2a new
30 ILCS 115/3a new
35 ILCS 5/901 from Ch. 120, par. 9-901
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/3 from Ch. 120, par. 442
50 ILCS 705/5.1 new
50 ILCS 705/5.2 new
Amends the Illinois Income Tax Act, the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and the State Revenue Sharing
Act to provide that 1.75% of income tax proceeds and 2.01% of
use and occupation tax proceeds shall be deposited into the
Community Policing Fund. Provides that moneys in the Fund
shall be allocated to municipalities and counties in this
State for the purposes of hiring new police officers. Amends
the State Finance Act to add the Fund to the list of funds in
the State treasury. Amends the Illinois Police Training Act
to require the Illinois Law Enforcement Training Standards
Board to conduct random audits of units of local government
that receive distributions from the Community Policing Fund.
Provides that if the Board determines that a unit of local
government did not use its distribution for hiring new police
officers, then that unit of local government shall not be
eligible for a distribution for one year. Effective June 1,
1997.
LRB9004910KDsb
LRB9004910KDsb
1 AN ACT concerning criminal law.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Section 5.449 as follows:
6 (30 ILCS 105/5.449 new)
7 Sec. 5.449. The Community Policing Fund.
8 Section 10. The State Revenue Sharing Act is amended by
9 adding Sections 1b, 2a, and 3a as follows:
10 (30 ILCS 115/1b new)
11 Sec. 1b. Community Policing Fund. Beginning July 1, 1997,
12 of the amounts collected under subsections (a) and (b) of
13 Section 201 of the Illinois Income Tax Act, minus deposits
14 into the Income Tax Refund Fund, the Education Assistance
15 Fund, and the Local Government Distributive Fund, the
16 Department shall deposit 1.75% into the Community Policing
17 Fund, a special fund created in the State treasury. Beginning
18 July 1, 1997, each month the Department shall pay into the
19 Community Policing Fund 2.01% of the net revenue realized for
20 the preceding month from the State 5% general rate on the
21 transfer or selling price of tangible personal property under
22 the Use Tax Act, the Service Use Tax Act, the Service
23 Occupation Tax Act, and the Retailers' Occupation Tax Act.
24 Amounts deposited into the Community Policing Fund shall be
25 allocated and paid to the municipalities and counties in this
26 State in accordance with Section 2a of this Act.
27 (30 ILCS 115/2a new)
28 Sec. 2a. Allocation and disbursement of Community
-2- LRB9004910KDsb
1 Policing Fund. Beginning January 1, 1998 and on the first day
2 of each month thereafter, the Department of Revenue shall
3 allocate among the several municipalities and counties of
4 this State, except those municipalities or counties
5 determined to be ineligible or not participating by the
6 Illinois Law Enforcement Training Standards Board under
7 Section 5.2 of the Illinois Police Training Act, the amount
8 available in the Community Policing Fund. The Department
9 shall then certify these allocations to the State
10 Comptroller, who shall pay over to the several municipalities
11 and counties the respective amounts allocated to them. The
12 amount of the Fund allocable to each municipality and county
13 shall be in proportion to the number of individual residents
14 of that municipality or county to the total population of the
15 State, less the population of counties and municipalities
16 that are ineligible for or choose not to receive
17 distributions from the Fund as provided in Section 5.2 of the
18 Illinois Police Training Act, determined in each case on the
19 basis of the latest census of the State, municipality, or
20 county conducted by the federal government and certified by
21 the Secretary of State and for annexations to municipalities,
22 the latest federal, State, or municipal census of the annexed
23 area which has been certified by the Department of Revenue.
24 For the purpose of this Section, the number of individual
25 residents of a county shall be reduced by the number of
26 individuals in the county residing in municipalities, but the
27 number of individual residents of the State, county, and
28 municipality shall reflect the latest census of any of them.
29 Subject to appropriation, in January of each year, before
30 the Department of Revenue determines the amount to be
31 allocated to each county and municipality, the Comptroller
32 shall distribute $100,000 from the Fund to the Illinois Law
33 Enforcement Training Standards Board for expenses related to
34 audits and certifications required under Sections 5.1 and 5.2
-3- LRB9004910KDsb
1 of the Illinois Police Training Act.
2 (30 ILCS 115/3a new)
3 Sec. 3a. Use of Community Policing Fund.
4 (a) Except as provided in subsection (b), the amount
5 allocated and paid to the municipalities and counties of this
6 State under Section 2a of this Act shall be deposited in a
7 segregated fund by each municipality and county and shall be
8 used solely for the purpose of paying compensation to new
9 permanent and probationary police officers, as defined by
10 Section 2 of the Illinois Police Training Act. For purposes
11 of this Section, "compensation" means all wages, salaries,
12 benefits, and any other form of remuneration payable to a
13 permanent or probationary police officer. In the event a
14 municipality or county is allocated and paid amounts under
15 Section 2a that are not sufficient to hire additional
16 permanent police officers, or in the event the municipality
17 has excess funds after hiring the maximum possible number of
18 permanent police officers, the municipality or county shall
19 use those funds to pay current permanent and probationary
20 police officers overtime wages, to pay for the costs
21 associated with training police officers, or to pay for the
22 personnel costs associated with a regional law enforcement
23 group.
24 (b) Notwithstanding subsection (a), any non-home rule
25 municipality may use funds received under Section 2a for
26 purposes of qualifying for a federal grant under the federal
27 Violent Crime Control and Law Enforcement Act of 1994.
28 Section 15. The Illinois Income Tax Act is amended by
29 changing Section 901 as follows:
30 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
31 (This Section may contain text from a Public Act with a
-4- LRB9004910KDsb
1 delayed effective date)
2 Sec. 901. Collection Authority.
3 (a) In general.
4 The Department shall collect the taxes imposed by this
5 Act. The Department shall collect certified past due child
6 support amounts under Section 39b52 of the Civil
7 Administrative Code of Illinois. Except as provided in
8 subsections (c) and (e) of this Section, money collected
9 pursuant to subsections (a) and (b) of Section 201 of this
10 Act shall be paid into the General Revenue Fund in the State
11 treasury; money collected pursuant to subsections (c) and (d)
12 of Section 201 of this Act shall be paid into the Personal
13 Property Tax Replacement Fund, a special fund in the State
14 Treasury; and money collected under Section 39b52 of the
15 Civil Administrative Code of Illinois shall be paid into the
16 Child Support Enforcement Trust Fund, a special fund outside
17 the State Treasury.
18 (b) Local Governmental Distributive Fund.
19 Beginning August 1, 1969, and continuing through June 30,
20 1994, the Treasurer shall transfer each month from the
21 General Revenue Fund to a special fund in the State treasury,
22 to be known as the "Local Government Distributive Fund", an
23 amount equal to 1/12 of the net revenue realized from the tax
24 imposed by subsections (a) and (b) of Section 201 of this Act
25 during the preceding month. Beginning July 1, 1994, and
26 continuing through June 30, 1995, the Treasurer shall
27 transfer each month from the General Revenue Fund to the
28 Local Government Distributive Fund an amount equal to 1/11 of
29 the net revenue realized from the tax imposed by subsections
30 (a) and (b) of Section 201 of this Act during the preceding
31 month. Beginning July 1, 1995, the Treasurer shall transfer
32 each month from the General Revenue Fund to the Local
33 Government Distributive Fund an amount equal to 1/10 of the
34 net revenue realized from the tax imposed by subsections (a)
-5- LRB9004910KDsb
1 and (b) of Section 201 of the Illinois Income Tax Act during
2 the preceding month. Net revenue realized for a month shall
3 be defined as the revenue from the tax imposed by subsections
4 (a) and (b) of Section 201 of this Act which is deposited in
5 the General Revenue Fund, the Educational Assistance Fund and
6 the Income Tax Surcharge Local Government Distributive Fund
7 during the month minus the amount paid out of the General
8 Revenue Fund in State warrants during that same month as
9 refunds to taxpayers for overpayment of liability under the
10 tax imposed by subsections (a) and (b) of Section 201 of this
11 Act.
12 (c) Deposits Into Income Tax Refund Fund.
13 (1) Beginning on January 1, 1989 and thereafter,
14 the Department shall deposit a percentage of the amounts
15 collected pursuant to subsections (a) and (b)(1), (2),
16 and (3), of Section 201 of this Act into a fund in the
17 State treasury known as the Income Tax Refund Fund. The
18 Department shall deposit 6% of such amounts during the
19 period beginning January 1, 1989 and ending on June 30,
20 1989. Beginning with State fiscal year 1990 and for each
21 fiscal year thereafter, the percentage deposited into the
22 Income Tax Refund Fund during a fiscal year shall be the
23 Annual Percentage. The Annual Percentage shall be
24 calculated as a fraction, the numerator of which shall be
25 the amount of refunds approved for payment by the
26 Department during the preceding fiscal year as a result
27 of overpayment of tax liability under subsections (a) and
28 (b)(1), (2), and (3) of Section 201 of this Act plus the
29 amount of such refunds remaining approved but unpaid at
30 the end of the preceding fiscal year minus any surplus
31 which remains on deposit in the Income Tax Refund Fund at
32 the end of the preceding year, the denominator of which
33 shall be the amounts which will be collected pursuant to
34 subsections (a) and (b)(1), (2), and (3) of Section 201
-6- LRB9004910KDsb
1 of this Act during the preceding fiscal year. The
2 Director of Revenue shall certify the Annual Percentage
3 to the Comptroller on the last business day of the fiscal
4 year immediately preceding the fiscal year for which is
5 it to be effective.
6 (2) Beginning on January 1, 1989 and thereafter,
7 the Department shall deposit a percentage of the amounts
8 collected pursuant to subsections (a) and (b)(6), (7),
9 and (8), (c) and (d) of Section 201 of this Act into a
10 fund in the State treasury known as the Income Tax Refund
11 Fund. The Department shall deposit 18% of such amounts
12 during the period beginning January 1, 1989 and ending on
13 June 30, 1989. Beginning with State fiscal year 1990 and
14 for each fiscal year thereafter, the percentage deposited
15 into the Income Tax Refund Fund during a fiscal year
16 shall be the Annual Percentage. The Annual Percentage
17 shall be calculated as a fraction, the numerator of which
18 shall be the amount of refunds approved for payment by
19 the Department during the preceding fiscal year as a
20 result of overpayment of tax liability under subsections
21 (a) and (b)(6), (7), and (8), (c) and (d) of Section 201
22 of this Act plus the amount of such refunds remaining
23 approved but unpaid at the end of the preceding fiscal
24 year, the denominator of which shall be the amounts which
25 will be collected pursuant to subsections (a) and (b)(6),
26 (7), and (8), (c) and (d) of Section 201 of this Act
27 during the preceding fiscal year. The Director of
28 Revenue shall certify the Annual Percentage to the
29 Comptroller on the last business day of the fiscal year
30 immediately preceding the fiscal year for which it is to
31 be effective.
32 (d) Expenditures from Income Tax Refund Fund.
33 (1) Beginning January 1, 1989, money in the Income
34 Tax Refund Fund shall be expended exclusively for the
-7- LRB9004910KDsb
1 purpose of paying refunds resulting from overpayment of
2 tax liability under Section 201 of this Act and for
3 making transfers pursuant to this subsection (d).
4 (2) The Director shall order payment of refunds
5 resulting from overpayment of tax liability under Section
6 201 of this Act from the Income Tax Refund Fund only to
7 the extent that amounts collected pursuant to Section 201
8 of this Act and transfers pursuant to this subsection (d)
9 have been deposited and retained in the Fund.
10 (3) On the last business day of each fiscal year,
11 the Director shall order transferred and the State
12 Treasurer and State Comptroller shall transfer from the
13 Income Tax Refund Fund to the Personal Property Tax
14 Replacement Fund an amount, certified by the Director to
15 the Comptroller, equal to the excess of the amount
16 collected pursuant to subsections (c) and (d) of Section
17 201 of this Act deposited into the Income Tax Refund Fund
18 during the fiscal year over the amount of refunds
19 resulting from overpayment of tax liability under
20 subsections (c) and (d) of Section 201 of this Act paid
21 from the Income Tax Refund Fund during the fiscal year.
22 (4) On the last business day of each fiscal year,
23 the Director shall order transferred and the State
24 Treasurer and State Comptroller shall transfer from the
25 Personal Property Tax Replacement Fund to the Income Tax
26 Refund Fund an amount, certified by the Director to the
27 Comptroller, equal to the excess of the amount of refunds
28 resulting from overpayment of tax liability under
29 subsections (c) and (d) of Section 201 of this Act paid
30 from the Income Tax Refund Fund during the fiscal year
31 over the amount collected pursuant to subsections (c) and
32 (d) of Section 201 of this Act deposited into the Income
33 Tax Refund Fund during the fiscal year.
34 (5) This Act shall constitute an irrevocable and
-8- LRB9004910KDsb
1 continuing appropriation from the Income Tax Refund Fund
2 for the purpose of paying refunds upon the order of the
3 Director in accordance with the provisions of this
4 Section.
5 (e) Deposits into the Education Assistance Fund and the
6 Income Tax Surcharge Local Government Distributive Fund.
7 On July 1, 1991, and thereafter, of the amounts collected
8 pursuant to subsections (a) and (b) of Section 201 of this
9 Act, minus deposits into the Income Tax Refund Fund, the
10 Department shall deposit 7.3% into the Education Assistance
11 Fund in the State Treasury. Beginning July 1, 1991, and
12 continuing through January 31, 1993, of the amounts collected
13 pursuant to subsections (a) and (b) of Section 201 of the
14 Illinois Income Tax Act, minus deposits into the Income Tax
15 Refund Fund, the Department shall deposit 3.0% into the
16 Income Tax Surcharge Local Government Distributive Fund in
17 the State Treasury. Beginning February 1, 1993 and
18 continuing through June 30, 1993, of the amounts collected
19 pursuant to subsections (a) and (b) of Section 201 of the
20 Illinois Income Tax Act, minus deposits into the Income Tax
21 Refund Fund, the Department shall deposit 4.4% into the
22 Income Tax Surcharge Local Government Distributive Fund in
23 the State Treasury. Beginning July 1, 1993, and continuing
24 through June 30, 1994, of the amounts collected under
25 subsections (a) and (b) of Section 201 of this Act, minus
26 deposits into the Income Tax Refund Fund, the Department
27 shall deposit 1.475% into the Income Tax Surcharge Local
28 Government Distributive Fund in the State Treasury.
29 (f) Deposits into the Community Policing Fund. Beginning
30 July 1, 1997 and thereafter, of the amounts collected under
31 subsections (a) and (b) of Section 201 of this Act, minus
32 deposits into the Income Tax Refund Fund, the Department
33 shall deposit 1.75% into the Community Policing Fund in the
34 State treasury.
-9- LRB9004910KDsb
1 (Source: P.A. 88-89; 89-6, eff. 12-31-95.)
2 Section 20. The Use Tax Act is amended by changing
3 Section 9 as follows:
4 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
5 Sec. 9. Except as to motor vehicles, watercraft,
6 aircraft, and trailers that are required to be registered
7 with an agency of this State, each retailer required or
8 authorized to collect the tax imposed by this Act shall pay
9 to the Department the amount of such tax (except as otherwise
10 provided) at the time when he is required to file his return
11 for the period during which such tax was collected, less a
12 discount of 2.1% prior to January 1, 1990, and 1.75% on and
13 after January 1, 1990, or $5 per calendar year, whichever is
14 greater, which is allowed to reimburse the retailer for
15 expenses incurred in collecting the tax, keeping records,
16 preparing and filing returns, remitting the tax and supplying
17 data to the Department on request. In the case of retailers
18 who report and pay the tax on a transaction by transaction
19 basis, as provided in this Section, such discount shall be
20 taken with each such tax remittance instead of when such
21 retailer files his periodic return. A retailer need not
22 remit that part of any tax collected by him to the extent
23 that he is required to remit and does remit the tax imposed
24 by the Retailers' Occupation Tax Act, with respect to the
25 sale of the same property.
26 Where such tangible personal property is sold under a
27 conditional sales contract, or under any other form of sale
28 wherein the payment of the principal sum, or a part thereof,
29 is extended beyond the close of the period for which the
30 return is filed, the retailer, in collecting the tax (except
31 as to motor vehicles, watercraft, aircraft, and trailers that
32 are required to be registered with an agency of this State),
-10- LRB9004910KDsb
1 may collect for each tax return period, only the tax
2 applicable to that part of the selling price actually
3 received during such tax return period.
4 Except as provided in this Section, on or before the
5 twentieth day of each calendar month, such retailer shall
6 file a return for the preceding calendar month. Such return
7 shall be filed on forms prescribed by the Department and
8 shall furnish such information as the Department may
9 reasonably require.
10 The Department may require returns to be filed on a
11 quarterly basis. If so required, a return for each calendar
12 quarter shall be filed on or before the twentieth day of the
13 calendar month following the end of such calendar quarter.
14 The taxpayer shall also file a return with the Department for
15 each of the first two months of each calendar quarter, on or
16 before the twentieth day of the following calendar month,
17 stating:
18 1. The name of the seller;
19 2. The address of the principal place of business
20 from which he engages in the business of selling tangible
21 personal property at retail in this State;
22 3. The total amount of taxable receipts received by
23 him during the preceding calendar month from sales of
24 tangible personal property by him during such preceding
25 calendar month, including receipts from charge and time
26 sales, but less all deductions allowed by law;
27 4. The amount of credit provided in Section 2d of
28 this Act;
29 5. The amount of tax due;
30 5-5. The signature of the taxpayer; and
31 6. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
-11- LRB9004910KDsb
1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 Beginning October 1, 1993, a taxpayer who has an average
4 monthly tax liability of $150,000 or more shall make all
5 payments required by rules of the Department by electronic
6 funds transfer. Beginning October 1, 1994, a taxpayer who has
7 an average monthly tax liability of $100,000 or more shall
8 make all payments required by rules of the Department by
9 electronic funds transfer. Beginning October 1, 1995, a
10 taxpayer who has an average monthly tax liability of $50,000
11 or more shall make all payments required by rules of the
12 Department by electronic funds transfer. The term "average
13 monthly tax liability" means the sum of the taxpayer's
14 liabilities under this Act, and under all other State and
15 local occupation and use tax laws administered by the
16 Department, for the immediately preceding calendar year
17 divided by 12.
18 Before August 1 of each year beginning in 1993, the
19 Department shall notify all taxpayers required to make
20 payments by electronic funds transfer. All taxpayers required
21 to make payments by electronic funds transfer shall make
22 those payments for a minimum of one year beginning on October
23 1.
24 Any taxpayer not required to make payments by electronic
25 funds transfer may make payments by electronic funds transfer
26 with the permission of the Department.
27 All taxpayers required to make payment by electronic
28 funds transfer and any taxpayers authorized to voluntarily
29 make payments by electronic funds transfer shall make those
30 payments in the manner authorized by the Department.
31 The Department shall adopt such rules as are necessary to
32 effectuate a program of electronic funds transfer and the
33 requirements of this Section.
34 If the taxpayer's average monthly tax liability to the
-12- LRB9004910KDsb
1 Department under this Act, the Retailers' Occupation Tax Act,
2 the Service Occupation Tax Act, the Service Use Tax Act was
3 $10,000 or more during the preceding 4 complete calendar
4 quarters, he shall file a return with the Department each
5 month by the 20th day of the month next following the month
6 during which such tax liability is incurred and shall make
7 payments to the Department on or before the 7th, 15th, 22nd
8 and last day of the month during which such liability is
9 incurred. If the month during which such tax liability is
10 incurred began prior to January 1, 1985, each payment shall
11 be in an amount equal to 1/4 of the taxpayer's actual
12 liability for the month or an amount set by the Department
13 not to exceed 1/4 of the average monthly liability of the
14 taxpayer to the Department for the preceding 4 complete
15 calendar quarters (excluding the month of highest liability
16 and the month of lowest liability in such 4 quarter period).
17 If the month during which such tax liability is incurred
18 begins on or after January 1, 1985, and prior to January 1,
19 1987, each payment shall be in an amount equal to 22.5% of
20 the taxpayer's actual liability for the month or 27.5% of the
21 taxpayer's liability for the same calendar month of the
22 preceding year. If the month during which such tax liability
23 is incurred begins on or after January 1, 1987, and prior to
24 January 1, 1988, each payment shall be in an amount equal to
25 22.5% of the taxpayer's actual liability for the month or
26 26.25% of the taxpayer's liability for the same calendar
27 month of the preceding year. If the month during which such
28 tax liability is incurred begins on or after January 1, 1988,
29 and prior to January 1, 1989, or begins on or after January
30 1, 1996, each payment shall be in an amount equal to 22.5% of
31 the taxpayer's actual liability for the month or 25% of the
32 taxpayer's liability for the same calendar month of the
33 preceding year. If the month during which such tax liability
34 is incurred begins on or after January 1, 1989, and prior to
-13- LRB9004910KDsb
1 January 1, 1996, each payment shall be in an amount equal to
2 22.5% of the taxpayer's actual liability for the month or 25%
3 of the taxpayer's liability for the same calendar month of
4 the preceding year or 100% of the taxpayer's actual liability
5 for the quarter monthly reporting period. The amount of such
6 quarter monthly payments shall be credited against the final
7 tax liability of the taxpayer's return for that month. Once
8 applicable, the requirement of the making of quarter monthly
9 payments to the Department shall continue until such
10 taxpayer's average monthly liability to the Department during
11 the preceding 4 complete calendar quarters (excluding the
12 month of highest liability and the month of lowest liability)
13 is less than $9,000, or until such taxpayer's average monthly
14 liability to the Department as computed for each calendar
15 quarter of the 4 preceding complete calendar quarter period
16 is less than $10,000. However, if a taxpayer can show the
17 Department that a substantial change in the taxpayer's
18 business has occurred which causes the taxpayer to anticipate
19 that his average monthly tax liability for the reasonably
20 foreseeable future will fall below $10,000, then such
21 taxpayer may petition the Department for change in such
22 taxpayer's reporting status. The Department shall change
23 such taxpayer's reporting status unless it finds that such
24 change is seasonal in nature and not likely to be long term.
25 If any such quarter monthly payment is not paid at the time
26 or in the amount required by this Section, then the
27 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
28 by 2.1% or 1.75%, as the case may be, of the difference
29 between the minimum amount due and the amount of such quarter
30 monthly payment actually and timely paid and the taxpayer
31 shall be liable for penalties and interest on such
32 difference, except insofar as the taxpayer has previously
33 made payments for that month to the Department in excess of
34 the minimum payments previously due as provided in this
-14- LRB9004910KDsb
1 Section. The Department shall make reasonable rules and
2 regulations to govern the quarter monthly payment amount and
3 quarter monthly payment dates for taxpayers who file on other
4 than a calendar monthly basis.
5 If any such payment provided for in this Section exceeds
6 the taxpayer's liabilities under this Act, the Retailers'
7 Occupation Tax Act, the Service Occupation Tax Act and the
8 Service Use Tax Act, as shown by an original monthly return,
9 the Department shall issue to the taxpayer a credit
10 memorandum no later than 30 days after the date of payment,
11 which memorandum may be submitted by the taxpayer to the
12 Department in payment of tax liability subsequently to be
13 remitted by the taxpayer to the Department or be assigned by
14 the taxpayer to a similar taxpayer under this Act, the
15 Retailers' Occupation Tax Act, the Service Occupation Tax Act
16 or the Service Use Tax Act, in accordance with reasonable
17 rules and regulations to be prescribed by the Department,
18 except that if such excess payment is shown on an original
19 monthly return and is made after December 31, 1986, no credit
20 memorandum shall be issued, unless requested by the taxpayer.
21 If no such request is made, the taxpayer may credit such
22 excess payment against tax liability subsequently to be
23 remitted by the taxpayer to the Department under this Act,
24 the Retailers' Occupation Tax Act, the Service Occupation Tax
25 Act or the Service Use Tax Act, in accordance with reasonable
26 rules and regulations prescribed by the Department. If the
27 Department subsequently determines that all or any part of
28 the credit taken was not actually due to the taxpayer, the
29 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
30 by 2.1% or 1.75% of the difference between the credit taken
31 and that actually due, and the taxpayer shall be liable for
32 penalties and interest on such difference.
33 If the retailer is otherwise required to file a monthly
34 return and if the retailer's average monthly tax liability to
-15- LRB9004910KDsb
1 the Department does not exceed $200, the Department may
2 authorize his returns to be filed on a quarter annual basis,
3 with the return for January, February, and March of a given
4 year being due by April 20 of such year; with the return for
5 April, May and June of a given year being due by July 20 of
6 such year; with the return for July, August and September of
7 a given year being due by October 20 of such year, and with
8 the return for October, November and December of a given year
9 being due by January 20 of the following year.
10 If the retailer is otherwise required to file a monthly
11 or quarterly return and if the retailer's average monthly tax
12 liability to the Department does not exceed $50, the
13 Department may authorize his returns to be filed on an annual
14 basis, with the return for a given year being due by January
15 20 of the following year.
16 Such quarter annual and annual returns, as to form and
17 substance, shall be subject to the same requirements as
18 monthly returns.
19 Notwithstanding any other provision in this Act
20 concerning the time within which a retailer may file his
21 return, in the case of any retailer who ceases to engage in a
22 kind of business which makes him responsible for filing
23 returns under this Act, such retailer shall file a final
24 return under this Act with the Department not more than one
25 month after discontinuing such business.
26 In addition, with respect to motor vehicles, watercraft,
27 aircraft, and trailers that are required to be registered
28 with an agency of this State, every retailer selling this
29 kind of tangible personal property shall file, with the
30 Department, upon a form to be prescribed and supplied by the
31 Department, a separate return for each such item of tangible
32 personal property which the retailer sells, except that
33 where, in the same transaction, a retailer of aircraft,
34 watercraft, motor vehicles or trailers transfers more than
-16- LRB9004910KDsb
1 one aircraft, watercraft, motor vehicle or trailer to another
2 aircraft, watercraft, motor vehicle or trailer retailer for
3 the purpose of resale, that seller for resale may report the
4 transfer of all the aircraft, watercraft, motor vehicles or
5 trailers involved in that transaction to the Department on
6 the same uniform invoice-transaction reporting return form.
7 For purposes of this Section, "watercraft" means a Class 2,
8 Class 3, or Class 4 watercraft as defined in Section 3-2 of
9 the Boat Registration and Safety Act, a personal watercraft,
10 or any boat equipped with an inboard motor.
11 The transaction reporting return in the case of motor
12 vehicles or trailers that are required to be registered with
13 an agency of this State, shall be the same document as the
14 Uniform Invoice referred to in Section 5-402 of the Illinois
15 Vehicle Code and must show the name and address of the
16 seller; the name and address of the purchaser; the amount of
17 the selling price including the amount allowed by the
18 retailer for traded-in property, if any; the amount allowed
19 by the retailer for the traded-in tangible personal property,
20 if any, to the extent to which Section 2 of this Act allows
21 an exemption for the value of traded-in property; the balance
22 payable after deducting such trade-in allowance from the
23 total selling price; the amount of tax due from the retailer
24 with respect to such transaction; the amount of tax collected
25 from the purchaser by the retailer on such transaction (or
26 satisfactory evidence that such tax is not due in that
27 particular instance, if that is claimed to be the fact); the
28 place and date of the sale; a sufficient identification of
29 the property sold; such other information as is required in
30 Section 5-402 of the Illinois Vehicle Code, and such other
31 information as the Department may reasonably require.
32 The transaction reporting return in the case of
33 watercraft and aircraft must show the name and address of the
34 seller; the name and address of the purchaser; the amount of
-17- LRB9004910KDsb
1 the selling price including the amount allowed by the
2 retailer for traded-in property, if any; the amount allowed
3 by the retailer for the traded-in tangible personal property,
4 if any, to the extent to which Section 2 of this Act allows
5 an exemption for the value of traded-in property; the balance
6 payable after deducting such trade-in allowance from the
7 total selling price; the amount of tax due from the retailer
8 with respect to such transaction; the amount of tax collected
9 from the purchaser by the retailer on such transaction (or
10 satisfactory evidence that such tax is not due in that
11 particular instance, if that is claimed to be the fact); the
12 place and date of the sale, a sufficient identification of
13 the property sold, and such other information as the
14 Department may reasonably require.
15 Such transaction reporting return shall be filed not
16 later than 20 days after the date of delivery of the item
17 that is being sold, but may be filed by the retailer at any
18 time sooner than that if he chooses to do so. The
19 transaction reporting return and tax remittance or proof of
20 exemption from the tax that is imposed by this Act may be
21 transmitted to the Department by way of the State agency with
22 which, or State officer with whom, the tangible personal
23 property must be titled or registered (if titling or
24 registration is required) if the Department and such agency
25 or State officer determine that this procedure will expedite
26 the processing of applications for title or registration.
27 With each such transaction reporting return, the retailer
28 shall remit the proper amount of tax due (or shall submit
29 satisfactory evidence that the sale is not taxable if that is
30 the case), to the Department or its agents, whereupon the
31 Department shall issue, in the purchaser's name, a tax
32 receipt (or a certificate of exemption if the Department is
33 satisfied that the particular sale is tax exempt) which such
34 purchaser may submit to the agency with which, or State
-18- LRB9004910KDsb
1 officer with whom, he must title or register the tangible
2 personal property that is involved (if titling or
3 registration is required) in support of such purchaser's
4 application for an Illinois certificate or other evidence of
5 title or registration to such tangible personal property.
6 No retailer's failure or refusal to remit tax under this
7 Act precludes a user, who has paid the proper tax to the
8 retailer, from obtaining his certificate of title or other
9 evidence of title or registration (if titling or registration
10 is required) upon satisfying the Department that such user
11 has paid the proper tax (if tax is due) to the retailer. The
12 Department shall adopt appropriate rules to carry out the
13 mandate of this paragraph.
14 If the user who would otherwise pay tax to the retailer
15 wants the transaction reporting return filed and the payment
16 of tax or proof of exemption made to the Department before
17 the retailer is willing to take these actions and such user
18 has not paid the tax to the retailer, such user may certify
19 to the fact of such delay by the retailer, and may (upon the
20 Department being satisfied of the truth of such
21 certification) transmit the information required by the
22 transaction reporting return and the remittance for tax or
23 proof of exemption directly to the Department and obtain his
24 tax receipt or exemption determination, in which event the
25 transaction reporting return and tax remittance (if a tax
26 payment was required) shall be credited by the Department to
27 the proper retailer's account with the Department, but
28 without the 2.1% or 1.75% discount provided for in this
29 Section being allowed. When the user pays the tax directly
30 to the Department, he shall pay the tax in the same amount
31 and in the same form in which it would be remitted if the tax
32 had been remitted to the Department by the retailer.
33 Where a retailer collects the tax with respect to the
34 selling price of tangible personal property which he sells
-19- LRB9004910KDsb
1 and the purchaser thereafter returns such tangible personal
2 property and the retailer refunds the selling price thereof
3 to the purchaser, such retailer shall also refund, to the
4 purchaser, the tax so collected from the purchaser. When
5 filing his return for the period in which he refunds such tax
6 to the purchaser, the retailer may deduct the amount of the
7 tax so refunded by him to the purchaser from any other use
8 tax which such retailer may be required to pay or remit to
9 the Department, as shown by such return, if the amount of the
10 tax to be deducted was previously remitted to the Department
11 by such retailer. If the retailer has not previously
12 remitted the amount of such tax to the Department, he is
13 entitled to no deduction under this Act upon refunding such
14 tax to the purchaser.
15 Any retailer filing a return under this Section shall
16 also include (for the purpose of paying tax thereon) the
17 total tax covered by such return upon the selling price of
18 tangible personal property purchased by him at retail from a
19 retailer, but as to which the tax imposed by this Act was not
20 collected from the retailer filing such return, and such
21 retailer shall remit the amount of such tax to the Department
22 when filing such return.
23 If experience indicates such action to be practicable,
24 the Department may prescribe and furnish a combination or
25 joint return which will enable retailers, who are required to
26 file returns hereunder and also under the Retailers'
27 Occupation Tax Act, to furnish all the return information
28 required by both Acts on the one form.
29 Where the retailer has more than one business registered
30 with the Department under separate registration under this
31 Act, such retailer may not file each return that is due as a
32 single return covering all such registered businesses, but
33 shall file separate returns for each such registered
34 business.
-20- LRB9004910KDsb
1 Beginning January 1, 1990, each month the Department
2 shall pay into the State and Local Sales Tax Reform Fund, a
3 special fund in the State Treasury which is hereby created,
4 the net revenue realized for the preceding month from the 1%
5 tax on sales of food for human consumption which is to be
6 consumed off the premises where it is sold (other than
7 alcoholic beverages, soft drinks and food which has been
8 prepared for immediate consumption) and prescription and
9 nonprescription medicines, drugs, medical appliances and
10 insulin, urine testing materials, syringes and needles used
11 by diabetics.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the County and Mass Transit District Fund 4%
14 of the net revenue realized for the preceding month from the
15 6.25% general rate on the selling price of tangible personal
16 property which is purchased outside Illinois at retail from a
17 retailer and which is titled or registered by an agency of
18 this State's government.
19 Beginning January 1, 1990, each month the Department
20 shall pay into the State and Local Sales Tax Reform Fund, a
21 special fund in the State Treasury, 20% of the net revenue
22 realized for the preceding month from the 6.25% general rate
23 on the selling price of tangible personal property, other
24 than tangible personal property which is purchased outside
25 Illinois at retail from a retailer and which is titled or
26 registered by an agency of this State's government.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the Local Government Tax Fund 16% of the net
29 revenue realized for the preceding month from the 6.25%
30 general rate on the selling price of tangible personal
31 property which is purchased outside Illinois at retail from a
32 retailer and which is titled or registered by an agency of
33 this State's government.
34 Beginning July 1, 1997, each month the Department shall
-21- LRB9004910KDsb
1 pay into the Community Policing Fund 2.01% of the net revenue
2 realized for the preceding month from the State 5% general
3 rate on the selling price of tangible personal property.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into
6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
7 and on and after July 1, 1989, 3.8% thereof shall be paid
8 into the Build Illinois Fund; provided, however, that if in
9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10 as the case may be, of the moneys received by the Department
11 and required to be paid into the Build Illinois Fund pursuant
12 to Section 3 of the Retailers' Occupation Tax Act, Section 9
13 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
14 Section 9 of the Service Occupation Tax Act, such Acts being
15 hereinafter called the "Tax Acts" and such aggregate of 2.2%
16 or 3.8%, as the case may be, of moneys being hereinafter
17 called the "Tax Act Amount", and (2) the amount transferred
18 to the Build Illinois Fund from the State and Local Sales Tax
19 Reform Fund shall be less than the Annual Specified Amount
20 (as defined in Section 3 of the Retailers' Occupation Tax
21 Act), an amount equal to the difference shall be immediately
22 paid into the Build Illinois Fund from other moneys received
23 by the Department pursuant to the Tax Acts; and further
24 provided, that if on the last business day of any month the
25 sum of (1) the Tax Act Amount required to be deposited into
26 the Build Illinois Bond Account in the Build Illinois Fund
27 during such month and (2) the amount transferred during such
28 month to the Build Illinois Fund from the State and Local
29 Sales Tax Reform Fund shall have been less than 1/12 of the
30 Annual Specified Amount, an amount equal to the difference
31 shall be immediately paid into the Build Illinois Fund from
32 other moneys received by the Department pursuant to the Tax
33 Acts; and, further provided, that in no event shall the
34 payments required under the preceding proviso result in
-22- LRB9004910KDsb
1 aggregate payments into the Build Illinois Fund pursuant to
2 this clause (b) for any fiscal year in excess of the greater
3 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
4 for such fiscal year; and, further provided, that the amounts
5 payable into the Build Illinois Fund under this clause (b)
6 shall be payable only until such time as the aggregate amount
7 on deposit under each trust indenture securing Bonds issued
8 and outstanding pursuant to the Build Illinois Bond Act is
9 sufficient, taking into account any future investment income,
10 to fully provide, in accordance with such indenture, for the
11 defeasance of or the payment of the principal of, premium, if
12 any, and interest on the Bonds secured by such indenture and
13 on any Bonds expected to be issued thereafter and all fees
14 and costs payable with respect thereto, all as certified by
15 the Director of the Bureau of the Budget. If on the last
16 business day of any month in which Bonds are outstanding
17 pursuant to the Build Illinois Bond Act, the aggregate of the
18 moneys deposited in the Build Illinois Bond Account in the
19 Build Illinois Fund in such month shall be less than the
20 amount required to be transferred in such month from the
21 Build Illinois Bond Account to the Build Illinois Bond
22 Retirement and Interest Fund pursuant to Section 13 of the
23 Build Illinois Bond Act, an amount equal to such deficiency
24 shall be immediately paid from other moneys received by the
25 Department pursuant to the Tax Acts to the Build Illinois
26 Fund; provided, however, that any amounts paid to the Build
27 Illinois Fund in any fiscal year pursuant to this sentence
28 shall be deemed to constitute payments pursuant to clause (b)
29 of the preceding sentence and shall reduce the amount
30 otherwise payable for such fiscal year pursuant to clause (b)
31 of the preceding sentence. The moneys received by the
32 Department pursuant to this Act and required to be deposited
33 into the Build Illinois Fund are subject to the pledge, claim
34 and charge set forth in Section 12 of the Build Illinois Bond
-23- LRB9004910KDsb
1 Act.
2 Subject to payment of amounts into the Build Illinois
3 Fund as provided in the preceding paragraph or in any
4 amendment thereto hereafter enacted, the following specified
5 monthly installment of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority provided under Section 8.25f of the
8 State Finance Act, but not in excess of the sums designated
9 as "Total Deposit", shall be deposited in the aggregate from
10 collections under Section 9 of the Use Tax Act, Section 9 of
11 the Service Use Tax Act, Section 9 of the Service Occupation
12 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
13 into the McCormick Place Expansion Project Fund in the
14 specified fiscal years.
15 Fiscal Year Total Deposit
16 1993 $0
17 1994 53,000,000
18 1995 58,000,000
19 1996 61,000,000
20 1997 64,000,000
21 1998 68,000,000
22 1999 71,000,000
23 2000 75,000,000
24 2001 80,000,000
25 2002 84,000,000
26 2003 89,000,000
27 2004 and 93,000,000
28 each fiscal year
29 thereafter that bonds
30 are outstanding under
31 Section 13.2 of the
32 Metropolitan Pier and
33 Exposition Authority
34 Act.
-24- LRB9004910KDsb
1 Beginning July 20, 1993 and in each month of each fiscal
2 year thereafter, one-eighth of the amount requested in the
3 certificate of the Chairman of the Metropolitan Pier and
4 Exposition Authority for that fiscal year, less the amount
5 deposited into the McCormick Place Expansion Project Fund by
6 the State Treasurer in the respective month under subsection
7 (g) of Section 13 of the Metropolitan Pier and Exposition
8 Authority Act, plus cumulative deficiencies in the deposits
9 required under this Section for previous months and years,
10 shall be deposited into the McCormick Place Expansion Project
11 Fund, until the full amount requested for the fiscal year,
12 but not in excess of the amount specified above as "Total
13 Deposit", has been deposited.
14 Subject to payment of amounts into the Build Illinois
15 Fund and the McCormick Place Expansion Project Fund pursuant
16 to the preceding paragraphs or in any amendment thereto
17 hereafter enacted, each month the Department shall pay into
18 the Local Government Distributive Fund .4% of the net revenue
19 realized for the preceding month from the 5% general rate, or
20 .4% of 80% of the net revenue realized for the preceding
21 month from the 6.25% general rate, as the case may be, on the
22 selling price of tangible personal property which amount
23 shall, subject to appropriation, be distributed as provided
24 in Section 2 of the State Revenue Sharing Act. No payments or
25 distributions pursuant to this paragraph shall be made if the
26 tax imposed by this Act on photoprocessing products is
27 declared unconstitutional, or if the proceeds from such tax
28 are unavailable for distribution because of litigation.
29 Subject to payment of amounts into the Build Illinois
30 Fund, the McCormick Place Expansion Project Fund, and the
31 Local Government Distributive Fund pursuant to the preceding
32 paragraphs or in any amendments thereto hereafter enacted,
33 beginning July 1, 1993, the Department shall each month pay
34 into the Illinois Tax Increment Fund 0.27% of 80% of the net
-25- LRB9004910KDsb
1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, 75% thereof shall be paid into the
6 State Treasury and 25% shall be reserved in a special account
7 and used only for the transfer to the Common School Fund as
8 part of the monthly transfer from the General Revenue Fund in
9 accordance with Section 8a of the State Finance Act.
10 As soon as possible after the first day of each month,
11 upon certification of the Department of Revenue, the
12 Comptroller shall order transferred and the Treasurer shall
13 transfer from the General Revenue Fund to the Motor Fuel Tax
14 Fund an amount equal to 1.7% of 80% of the net revenue
15 realized under this Act for the second preceding month;
16 except that this transfer shall not be made for the months
17 February through June of 1992.
18 Net revenue realized for a month shall be the revenue
19 collected by the State pursuant to this Act, less the amount
20 paid out during that month as refunds to taxpayers for
21 overpayment of liability.
22 For greater simplicity of administration, manufacturers,
23 importers and wholesalers whose products are sold at retail
24 in Illinois by numerous retailers, and who wish to do so, may
25 assume the responsibility for accounting and paying to the
26 Department all tax accruing under this Act with respect to
27 such sales, if the retailers who are affected do not make
28 written objection to the Department to this arrangement.
29 (Source: P.A. 88-45; 88-116; 88-194; 88-660, eff. 9-16-94;
30 88-669, eff. 11-29-94; 88-670, eff. 12-2-94; 89-379, eff.
31 1-1-96; 89-626, eff. 8-9-96.)
32 Section 25. The Service Use Tax Act is amended by
33 changing Section 9 as follows:
-26- LRB9004910KDsb
1 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
2 Sec. 9. Each serviceman required or authorized to
3 collect the tax herein imposed shall pay to the Department
4 the amount of such tax (except as otherwise provided) at the
5 time when he is required to file his return for the period
6 during which such tax was collected, less a discount of 2.1%
7 prior to January 1, 1990 and 1.75% on and after January 1,
8 1990, or $5 per calendar year, whichever is greater, which is
9 allowed to reimburse the serviceman for expenses incurred in
10 collecting the tax, keeping records, preparing and filing
11 returns, remitting the tax and supplying data to the
12 Department on request. A serviceman need not remit that part
13 of any tax collected by him to the extent that he is required
14 to pay and does pay the tax imposed by the Service Occupation
15 Tax Act with respect to his sale of service involving the
16 incidental transfer by him of the same property.
17 Except as provided hereinafter in this Section, on or
18 before the twentieth day of each calendar month, such
19 serviceman shall file a return for the preceding calendar
20 month in accordance with reasonable Rules and Regulations to
21 be promulgated by the Department. Such return shall be filed
22 on a form prescribed by the Department and shall contain such
23 information as the Department may reasonably require.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in business as a serviceman in this
-27- LRB9004910KDsb
1 State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month, including
4 receipts from charge and time sales, but less all
5 deductions allowed by law;
6 4. The amount of credit provided in Section 2d of
7 this Act;
8 5. The amount of tax due;
9 5-5. The signature of the taxpayer; and
10 6. Such other reasonable information as the
11 Department may require.
12 If a taxpayer fails to sign a return within 30 days after
13 the proper notice and demand for signature by the Department,
14 the return shall be considered valid and any amount shown to
15 be due on the return shall be deemed assessed.
16 Beginning October 1, 1993, a taxpayer who has an average
17 monthly tax liability of $150,000 or more shall make all
18 payments required by rules of the Department by electronic
19 funds transfer. Beginning October 1, 1994, a taxpayer who
20 has an average monthly tax liability of $100,000 or more
21 shall make all payments required by rules of the Department
22 by electronic funds transfer. Beginning October 1, 1995, a
23 taxpayer who has an average monthly tax liability of $50,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. The term "average
26 monthly tax liability" means the sum of the taxpayer's
27 liabilities under this Act, and under all other State and
28 local occupation and use tax laws administered by the
29 Department, for the immediately preceding calendar year
30 divided by 12.
31 Before August 1 of each year beginning in 1993, the
32 Department shall notify all taxpayers required to make
33 payments by electronic funds transfer. All taxpayers required
34 to make payments by electronic funds transfer shall make
-28- LRB9004910KDsb
1 those payments for a minimum of one year beginning on October
2 1.
3 Any taxpayer not required to make payments by electronic
4 funds transfer may make payments by electronic funds transfer
5 with the permission of the Department.
6 All taxpayers required to make payment by electronic
7 funds transfer and any taxpayers authorized to voluntarily
8 make payments by electronic funds transfer shall make those
9 payments in the manner authorized by the Department.
10 The Department shall adopt such rules as are necessary to
11 effectuate a program of electronic funds transfer and the
12 requirements of this Section.
13 If the serviceman is otherwise required to file a monthly
14 return and if the serviceman's average monthly tax liability
15 to the Department does not exceed $200, the Department may
16 authorize his returns to be filed on a quarter annual basis,
17 with the return for January, February and March of a given
18 year being due by April 20 of such year; with the return for
19 April, May and June of a given year being due by July 20 of
20 such year; with the return for July, August and September of
21 a given year being due by October 20 of such year, and with
22 the return for October, November and December of a given year
23 being due by January 20 of the following year.
24 If the serviceman is otherwise required to file a monthly
25 or quarterly return and if the serviceman's average monthly
26 tax liability to the Department does not exceed $50, the
27 Department may authorize his returns to be filed on an annual
28 basis, with the return for a given year being due by January
29 20 of the following year.
30 Such quarter annual and annual returns, as to form and
31 substance, shall be subject to the same requirements as
32 monthly returns.
33 Notwithstanding any other provision in this Act
34 concerning the time within which a serviceman may file his
-29- LRB9004910KDsb
1 return, in the case of any serviceman who ceases to engage in
2 a kind of business which makes him responsible for filing
3 returns under this Act, such serviceman shall file a final
4 return under this Act with the Department not more than 1
5 month after discontinuing such business.
6 Where a serviceman collects the tax with respect to the
7 selling price of property which he sells and the purchaser
8 thereafter returns such property and the serviceman refunds
9 the selling price thereof to the purchaser, such serviceman
10 shall also refund, to the purchaser, the tax so collected
11 from the purchaser. When filing his return for the period in
12 which he refunds such tax to the purchaser, the serviceman
13 may deduct the amount of the tax so refunded by him to the
14 purchaser from any other Service Use Tax, Service Occupation
15 Tax, retailers' occupation tax or use tax which such
16 serviceman may be required to pay or remit to the Department,
17 as shown by such return, provided that the amount of the tax
18 to be deducted shall previously have been remitted to the
19 Department by such serviceman. If the serviceman shall not
20 previously have remitted the amount of such tax to the
21 Department, he shall be entitled to no deduction hereunder
22 upon refunding such tax to the purchaser.
23 Any serviceman filing a return hereunder shall also
24 include the total tax upon the selling price of tangible
25 personal property purchased for use by him as an incident to
26 a sale of service, and such serviceman shall remit the amount
27 of such tax to the Department when filing such return.
28 If experience indicates such action to be practicable,
29 the Department may prescribe and furnish a combination or
30 joint return which will enable servicemen, who are required
31 to file returns hereunder and also under the Service
32 Occupation Tax Act, to furnish all the return information
33 required by both Acts on the one form.
34 Where the serviceman has more than one business
-30- LRB9004910KDsb
1 registered with the Department under separate registration
2 hereunder, such serviceman shall not file each return that is
3 due as a single return covering all such registered
4 businesses, but shall file separate returns for each such
5 registered business.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the State and Local Tax Reform Fund, a special
8 fund in the State Treasury, the net revenue realized for the
9 preceding month from the 1% tax on sales of food for human
10 consumption which is to be consumed off the premises where it
11 is sold (other than alcoholic beverages, soft drinks and food
12 which has been prepared for immediate consumption) and
13 prescription and nonprescription medicines, drugs, medical
14 appliances and insulin, urine testing materials, syringes and
15 needles used by diabetics.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the State and Local Sales Tax Reform Fund 20%
18 of the net revenue realized for the preceding month from the
19 6.25% general rate on transfers of tangible personal
20 property, other than tangible personal property which is
21 purchased outside Illinois at retail from a retailer and
22 which is titled or registered by an agency of this State's
23 government.
24 Beginning July 1, 1997, each month the Department shall
25 pay into the Community Policing Fund 2.01% of the net revenue
26 realized for the preceding month from the State 5% general
27 rate on the transfer of tangible personal property.
28 Of the remainder of the moneys received by the Department
29 pursuant to this Act, (a) 1.75% thereof shall be paid into
30 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
31 and on and after July 1, 1989, 3.8% thereof shall be paid
32 into the Build Illinois Fund; provided, however, that if in
33 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
34 as the case may be, of the moneys received by the Department
-31- LRB9004910KDsb
1 and required to be paid into the Build Illinois Fund pursuant
2 to Section 3 of the Retailers' Occupation Tax Act, Section 9
3 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
4 Section 9 of the Service Occupation Tax Act, such Acts being
5 hereinafter called the "Tax Acts" and such aggregate of 2.2%
6 or 3.8%, as the case may be, of moneys being hereinafter
7 called the "Tax Act Amount", and (2) the amount transferred
8 to the Build Illinois Fund from the State and Local Sales Tax
9 Reform Fund shall be less than the Annual Specified Amount
10 (as defined in Section 3 of the Retailers' Occupation Tax
11 Act), an amount equal to the difference shall be immediately
12 paid into the Build Illinois Fund from other moneys received
13 by the Department pursuant to the Tax Acts; and further
14 provided, that if on the last business day of any month the
15 sum of (1) the Tax Act Amount required to be deposited into
16 the Build Illinois Bond Account in the Build Illinois Fund
17 during such month and (2) the amount transferred during such
18 month to the Build Illinois Fund from the State and Local
19 Sales Tax Reform Fund shall have been less than 1/12 of the
20 Annual Specified Amount, an amount equal to the difference
21 shall be immediately paid into the Build Illinois Fund from
22 other moneys received by the Department pursuant to the Tax
23 Acts; and, further provided, that in no event shall the
24 payments required under the preceding proviso result in
25 aggregate payments into the Build Illinois Fund pursuant to
26 this clause (b) for any fiscal year in excess of the greater
27 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
28 for such fiscal year; and, further provided, that the amounts
29 payable into the Build Illinois Fund under this clause (b)
30 shall be payable only until such time as the aggregate amount
31 on deposit under each trust indenture securing Bonds issued
32 and outstanding pursuant to the Build Illinois Bond Act is
33 sufficient, taking into account any future investment income,
34 to fully provide, in accordance with such indenture, for the
-32- LRB9004910KDsb
1 defeasance of or the payment of the principal of, premium, if
2 any, and interest on the Bonds secured by such indenture and
3 on any Bonds expected to be issued thereafter and all fees
4 and costs payable with respect thereto, all as certified by
5 the Director of the Bureau of the Budget. If on the last
6 business day of any month in which Bonds are outstanding
7 pursuant to the Build Illinois Bond Act, the aggregate of the
8 moneys deposited in the Build Illinois Bond Account in the
9 Build Illinois Fund in such month shall be less than the
10 amount required to be transferred in such month from the
11 Build Illinois Bond Account to the Build Illinois Bond
12 Retirement and Interest Fund pursuant to Section 13 of the
13 Build Illinois Bond Act, an amount equal to such deficiency
14 shall be immediately paid from other moneys received by the
15 Department pursuant to the Tax Acts to the Build Illinois
16 Fund; provided, however, that any amounts paid to the Build
17 Illinois Fund in any fiscal year pursuant to this sentence
18 shall be deemed to constitute payments pursuant to clause (b)
19 of the preceding sentence and shall reduce the amount
20 otherwise payable for such fiscal year pursuant to clause (b)
21 of the preceding sentence. The moneys received by the
22 Department pursuant to this Act and required to be deposited
23 into the Build Illinois Fund are subject to the pledge, claim
24 and charge set forth in Section 12 of the Build Illinois Bond
25 Act.
26 Subject to payment of amounts into the Build Illinois
27 Fund as provided in the preceding paragraph or in any
28 amendment thereto hereafter enacted, the following specified
29 monthly installment of the amount requested in the
30 certificate of the Chairman of the Metropolitan Pier and
31 Exposition Authority provided under Section 8.25f of the
32 State Finance Act, but not in excess of the sums designated
33 as "Total Deposit", shall be deposited in the aggregate from
34 collections under Section 9 of the Use Tax Act, Section 9 of
-33- LRB9004910KDsb
1 the Service Use Tax Act, Section 9 of the Service Occupation
2 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
3 into the McCormick Place Expansion Project Fund in the
4 specified fiscal years.
5 Fiscal Year Total Deposit
6 1993 $0
7 1994 53,000,000
8 1995 58,000,000
9 1996 61,000,000
10 1997 64,000,000
11 1998 68,000,000
12 1999 71,000,000
13 2000 75,000,000
14 2001 80,000,000
15 2002 84,000,000
16 2003 89,000,000
17 2004 and 93,000,000
18 each fiscal year
19 thereafter that bonds
20 are outstanding under
21 Section 13.2 of the
22 Metropolitan Pier and
23 Exposition Authority Act.
24 Beginning July 20, 1993 and in each month of each fiscal
25 year thereafter, one-eighth of the amount requested in the
26 certificate of the Chairman of the Metropolitan Pier and
27 Exposition Authority for that fiscal year, less the amount
28 deposited into the McCormick Place Expansion Project Fund by
29 the State Treasurer in the respective month under subsection
30 (g) of Section 13 of the Metropolitan Pier and Exposition
31 Authority Act, plus cumulative deficiencies in the deposits
32 required under this Section for previous months and years,
33 shall be deposited into the McCormick Place Expansion Project
34 Fund, until the full amount requested for the fiscal year,
-34- LRB9004910KDsb
1 but not in excess of the amount specified above as "Total
2 Deposit", has been deposited.
3 Subject to payment of amounts into the Build Illinois
4 Fund and the McCormick Place Expansion Project Fund pursuant
5 to the preceding paragraphs or in any amendment thereto
6 hereafter enacted, each month the Department shall pay into
7 the Local Government Distributive Fund 0.4% of the net
8 revenue realized for the preceding month from the 5% general
9 rate or 0.4% of 80% of the net revenue realized for the
10 preceding month from the 6.25% general rate, as the case may
11 be, on the selling price of tangible personal property which
12 amount shall, subject to appropriation, be distributed as
13 provided in Section 2 of the State Revenue Sharing Act. No
14 payments or distributions pursuant to this paragraph shall be
15 made if the tax imposed by this Act on photo processing
16 products is declared unconstitutional, or if the proceeds
17 from such tax are unavailable for distribution because of
18 litigation.
19 Subject to payment of amounts into the Build Illinois
20 Fund, the McCormick Place Expansion Project Fund, and the
21 Local Government Distributive Fund pursuant to the preceding
22 paragraphs or in any amendments thereto hereafter enacted,
23 beginning July 1, 1993, the Department shall each month pay
24 into the Illinois Tax Increment Fund 0.27% of 80% of the net
25 revenue realized for the preceding month from the 6.25%
26 general rate on the selling price of tangible personal
27 property.
28 All remaining moneys received by the Department pursuant
29 to this Act shall be paid into the General Revenue Fund of
30 the State Treasury.
31 As soon as possible after the first day of each month,
32 upon certification of the Department of Revenue, the
33 Comptroller shall order transferred and the Treasurer shall
34 transfer from the General Revenue Fund to the Motor Fuel Tax
-35- LRB9004910KDsb
1 Fund an amount equal to 1.7% of 80% of the net revenue
2 realized under this Act for the second preceding month;
3 except that this transfer shall not be made for the months
4 February through June, 1992.
5 Net revenue realized for a month shall be the revenue
6 collected by the State pursuant to this Act, less the amount
7 paid out during that month as refunds to taxpayers for
8 overpayment of liability.
9 (Source: P.A. 88-45; 88-116; 88-669, eff. 11-29-94; 89-379,
10 eff. 1-1-96.)
11 Section 30. The Service Occupation Tax Act is amended by
12 changing Section 9 as follows:
13 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
14 Sec. 9. Each serviceman required or authorized to
15 collect the tax herein imposed shall pay to the Department
16 the amount of such tax at the time when he is required to
17 file his return for the period during which such tax was
18 collectible, less a discount of 2.1% prior to January 1,
19 1990, and 1.75% on and after January 1, 1990, or $5 per
20 calendar year, whichever is greater, which is allowed to
21 reimburse the serviceman for expenses incurred in collecting
22 the tax, keeping records, preparing and filing returns,
23 remitting the tax and supplying data to the Department on
24 request.
25 Where such tangible personal property is sold under a
26 conditional sales contract, or under any other form of sale
27 wherein the payment of the principal sum, or a part thereof,
28 is extended beyond the close of the period for which the
29 return is filed, the serviceman, in collecting the tax may
30 collect, for each tax return period, only the tax applicable
31 to the part of the selling price actually received during
32 such tax return period.
-36- LRB9004910KDsb
1 Except as provided hereinafter in this Section, on or
2 before the twentieth day of each calendar month, such
3 serviceman shall file a return for the preceding calendar
4 month in accordance with reasonable rules and regulations to
5 be promulgated by the Department of Revenue. Such return
6 shall be filed on a form prescribed by the Department and
7 shall contain such information as the Department may
8 reasonably require.
9 The Department may require returns to be filed on a
10 quarterly basis. If so required, a return for each calendar
11 quarter shall be filed on or before the twentieth day of the
12 calendar month following the end of such calendar quarter.
13 The taxpayer shall also file a return with the Department for
14 each of the first two months of each calendar quarter, on or
15 before the twentieth day of the following calendar month,
16 stating:
17 1. The name of the seller;
18 2. The address of the principal place of business
19 from which he engages in business as a serviceman in this
20 State;
21 3. The total amount of taxable receipts received by
22 him during the preceding calendar month, including
23 receipts from charge and time sales, but less all
24 deductions allowed by law;
25 4. The amount of credit provided in Section 2d of
26 this Act;
27 5. The amount of tax due;
28 5-5. The signature of the taxpayer; and
29 6. Such other reasonable information as the
30 Department may require.
31 If a taxpayer fails to sign a return within 30 days after
32 the proper notice and demand for signature by the Department,
33 the return shall be considered valid and any amount shown to
34 be due on the return shall be deemed assessed.
-37- LRB9004910KDsb
1 A serviceman may accept a Manufacturer's Purchase Credit
2 certification from a purchaser in satisfaction of Service Use
3 Tax as provided in Section 3-70 of the Service Use Tax Act if
4 the purchaser provides the appropriate documentation as
5 required by Section 3-70 of the Service Use Tax Act. A
6 Manufacturer's Purchase Credit certification, accepted by a
7 serviceman as provided in Section 3-70 of the Service Use Tax
8 Act, may be used by that serviceman to satisfy Service
9 Occupation Tax liability in the amount claimed in the
10 certification, not to exceed 6.25% of the receipts subject to
11 tax from a qualifying purchase.
12 If the serviceman's average monthly tax liability to the
13 Department does not exceed $200, the Department may authorize
14 his returns to be filed on a quarter annual basis, with the
15 return for January, February and March of a given year being
16 due by April 20 of such year; with the return for April, May
17 and June of a given year being due by July 20 of such year;
18 with the return for July, August and September of a given
19 year being due by October 20 of such year, and with the
20 return for October, November and December of a given year
21 being due by January 20 of the following year.
22 If the serviceman's average monthly tax liability to the
23 Department does not exceed $50, the Department may authorize
24 his returns to be filed on an annual basis, with the return
25 for a given year being due by January 20 of the following
26 year.
27 Such quarter annual and annual returns, as to form and
28 substance, shall be subject to the same requirements as
29 monthly returns.
30 Notwithstanding any other provision in this Act
31 concerning the time within which a serviceman may file his
32 return, in the case of any serviceman who ceases to engage in
33 a kind of business which makes him responsible for filing
34 returns under this Act, such serviceman shall file a final
-38- LRB9004910KDsb
1 return under this Act with the Department not more than 1
2 month after discontinuing such business.
3 Beginning October 1, 1993, a taxpayer who has an average
4 monthly tax liability of $150,000 or more shall make all
5 payments required by rules of the Department by electronic
6 funds transfer. Beginning October 1, 1994, a taxpayer who
7 has an average monthly tax liability of $100,000 or more
8 shall make all payments required by rules of the Department
9 by electronic funds transfer. Beginning October 1, 1995, a
10 taxpayer who has an average monthly tax liability of $50,000
11 or more shall make all payments required by rules of the
12 Department by electronic funds transfer. The term "average
13 monthly tax liability" means the sum of the taxpayer's
14 liabilities under this Act, and under all other State and
15 local occupation and use tax laws administered by the
16 Department, for the immediately preceding calendar year
17 divided by 12.
18 Before August 1 of each year beginning in 1993, the
19 Department shall notify all taxpayers required to make
20 payments by electronic funds transfer. All taxpayers
21 required to make payments by electronic funds transfer shall
22 make those payments for a minimum of one year beginning on
23 October 1.
24 Any taxpayer not required to make payments by electronic
25 funds transfer may make payments by electronic funds transfer
26 with the permission of the Department.
27 All taxpayers required to make payment by electronic
28 funds transfer and any taxpayers authorized to voluntarily
29 make payments by electronic funds transfer shall make those
30 payments in the manner authorized by the Department.
31 The Department shall adopt such rules as are necessary to
32 effectuate a program of electronic funds transfer and the
33 requirements of this Section.
34 Where a serviceman collects the tax with respect to the
-39- LRB9004910KDsb
1 selling price of tangible personal property which he sells
2 and the purchaser thereafter returns such tangible personal
3 property and the serviceman refunds the selling price thereof
4 to the purchaser, such serviceman shall also refund, to the
5 purchaser, the tax so collected from the purchaser. When
6 filing his return for the period in which he refunds such tax
7 to the purchaser, the serviceman may deduct the amount of the
8 tax so refunded by him to the purchaser from any other
9 Service Occupation Tax, Service Use Tax, Retailers'
10 Occupation Tax or Use Tax which such serviceman may be
11 required to pay or remit to the Department, as shown by such
12 return, provided that the amount of the tax to be deducted
13 shall previously have been remitted to the Department by such
14 serviceman. If the serviceman shall not previously have
15 remitted the amount of such tax to the Department, he shall
16 be entitled to no deduction hereunder upon refunding such tax
17 to the purchaser.
18 If experience indicates such action to be practicable,
19 the Department may prescribe and furnish a combination or
20 joint return which will enable servicemen, who are required
21 to file returns hereunder and also under the Retailers'
22 Occupation Tax Act, the Use Tax Act or the Service Use Tax
23 Act, to furnish all the return information required by all
24 said Acts on the one form.
25 Where the serviceman has more than one business
26 registered with the Department under separate registrations
27 hereunder, such serviceman shall file separate returns for
28 each registered business.
29 Beginning January 1, 1990, each month the Department
30 shall pay into the Local Government Tax Fund the revenue
31 realized for the preceding month from the 1% tax on sales of
32 food for human consumption which is to be consumed off the
33 premises where it is sold (other than alcoholic beverages,
34 soft drinks and food which has been prepared for immediate
-40- LRB9004910KDsb
1 consumption) and prescription and nonprescription medicines,
2 drugs, medical appliances and insulin, urine testing
3 materials, syringes and needles used by diabetics.
4 Beginning January 1, 1990, each month the Department
5 shall pay into the County and Mass Transit District Fund 4%
6 of the revenue realized for the preceding month from the
7 6.25% general rate.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the Local Government Tax Fund 16% of the
10 revenue realized for the preceding month from the 6.25%
11 general rate on transfers of tangible personal property.
12 Beginning July 1, 1997, each month the Department shall
13 pay into the Community Policing Fund 2.01% of the net revenue
14 realized for the preceding month from the State 5% general
15 rate on the transfer of tangible personal property.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, (a) 1.75% thereof shall be paid into
18 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
19 and on and after July 1, 1989, 3.8% thereof shall be paid
20 into the Build Illinois Fund; provided, however, that if in
21 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
22 as the case may be, of the moneys received by the Department
23 and required to be paid into the Build Illinois Fund pursuant
24 to Section 3 of the Retailers' Occupation Tax Act, Section 9
25 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
26 Section 9 of the Service Occupation Tax Act, such Acts being
27 hereinafter called the "Tax Acts" and such aggregate of 2.2%
28 or 3.8%, as the case may be, of moneys being hereinafter
29 called the "Tax Act Amount", and (2) the amount transferred
30 to the Build Illinois Fund from the State and Local Sales Tax
31 Reform Fund shall be less than the Annual Specified Amount
32 (as defined in Section 3 of the Retailers' Occupation Tax
33 Act), an amount equal to the difference shall be immediately
34 paid into the Build Illinois Fund from other moneys received
-41- LRB9004910KDsb
1 by the Department pursuant to the Tax Acts; and further
2 provided, that if on the last business day of any month the
3 sum of (1) the Tax Act Amount required to be deposited into
4 the Build Illinois Account in the Build Illinois Fund during
5 such month and (2) the amount transferred during such month
6 to the Build Illinois Fund from the State and Local Sales Tax
7 Reform Fund shall have been less than 1/12 of the Annual
8 Specified Amount, an amount equal to the difference shall be
9 immediately paid into the Build Illinois Fund from other
10 moneys received by the Department pursuant to the Tax Acts;
11 and, further provided, that in no event shall the payments
12 required under the preceding proviso result in aggregate
13 payments into the Build Illinois Fund pursuant to this clause
14 (b) for any fiscal year in excess of the greater of (i) the
15 Tax Act Amount or (ii) the Annual Specified Amount for such
16 fiscal year; and, further provided, that the amounts payable
17 into the Build Illinois Fund under this clause (b) shall be
18 payable only until such time as the aggregate amount on
19 deposit under each trust indenture securing Bonds issued and
20 outstanding pursuant to the Build Illinois Bond Act is
21 sufficient, taking into account any future investment income,
22 to fully provide, in accordance with such indenture, for the
23 defeasance of or the payment of the principal of, premium, if
24 any, and interest on the Bonds secured by such indenture and
25 on any Bonds expected to be issued thereafter and all fees
26 and costs payable with respect thereto, all as certified by
27 the Director of the Bureau of the Budget. If on the last
28 business day of any month in which Bonds are outstanding
29 pursuant to the Build Illinois Bond Act, the aggregate of the
30 moneys deposited in the Build Illinois Bond Account in the
31 Build Illinois Fund in such month shall be less than the
32 amount required to be transferred in such month from the
33 Build Illinois Bond Account to the Build Illinois Bond
34 Retirement and Interest Fund pursuant to Section 13 of the
-42- LRB9004910KDsb
1 Build Illinois Bond Act, an amount equal to such deficiency
2 shall be immediately paid from other moneys received by the
3 Department pursuant to the Tax Acts to the Build Illinois
4 Fund; provided, however, that any amounts paid to the Build
5 Illinois Fund in any fiscal year pursuant to this sentence
6 shall be deemed to constitute payments pursuant to clause (b)
7 of the preceding sentence and shall reduce the amount
8 otherwise payable for such fiscal year pursuant to clause (b)
9 of the preceding sentence. The moneys received by the
10 Department pursuant to this Act and required to be deposited
11 into the Build Illinois Fund are subject to the pledge, claim
12 and charge set forth in Section 12 of the Build Illinois Bond
13 Act.
14 Subject to payment of amounts into the Build Illinois
15 Fund as provided in the preceding paragraph or in any
16 amendment thereto hereafter enacted, the following specified
17 monthly installment of the amount requested in the
18 certificate of the Chairman of the Metropolitan Pier and
19 Exposition Authority provided under Section 8.25f of the
20 State Finance Act, but not in excess of the sums designated
21 as "Total Deposit", shall be deposited in the aggregate from
22 collections under Section 9 of the Use Tax Act, Section 9 of
23 the Service Use Tax Act, Section 9 of the Service Occupation
24 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
25 into the McCormick Place Expansion Project Fund in the
26 specified fiscal years.
27 Fiscal Year Total Deposit
28 1993 $0
29 1994 53,000,000
30 1995 58,000,000
31 1996 61,000,000
32 1997 64,000,000
33 1998 68,000,000
34 1999 71,000,000
-43- LRB9004910KDsb
1 2000 75,000,000
2 2001 80,000,000
3 2002 84,000,000
4 2003 89,000,000
5 2004 and 93,000,000
6 each fiscal year
7 thereafter that bonds
8 are outstanding under
9 Section 13.2 of the
10 Metropolitan Pier and
11 Exposition Authority
12 Act.
13 Beginning July 20, 1993 and in each month of each fiscal
14 year thereafter, one-eighth of the amount requested in the
15 certificate of the Chairman of the Metropolitan Pier and
16 Exposition Authority for that fiscal year, less the amount
17 deposited into the McCormick Place Expansion Project Fund by
18 the State Treasurer in the respective month under subsection
19 (g) of Section 13 of the Metropolitan Pier and Exposition
20 Authority Act, plus cumulative deficiencies in the deposits
21 required under this Section for previous months and years,
22 shall be deposited into the McCormick Place Expansion Project
23 Fund, until the full amount requested for the fiscal year,
24 but not in excess of the amount specified above as "Total
25 Deposit", has been deposited.
26 Subject to payment of amounts into the Build Illinois
27 Fund and the McCormick Place Expansion Project Fund pursuant
28 to the preceding paragraphs or in any amendment thereto
29 hereafter enacted, each month the Department shall pay into
30 the Local Government Distributive Fund 0.4% of the net
31 revenue realized for the preceding month from the 5% general
32 rate or 0.4% of 80% of the net revenue realized for the
33 preceding month from the 6.25% general rate, as the case may
34 be, on the selling price of tangible personal property which
-44- LRB9004910KDsb
1 amount shall, subject to appropriation, be distributed as
2 provided in Section 2 of the State Revenue Sharing Act. No
3 payments or distributions pursuant to this paragraph shall be
4 made if the tax imposed by this Act on photoprocessing
5 products is declared unconstitutional, or if the proceeds
6 from such tax are unavailable for distribution because of
7 litigation.
8 Subject to payment of amounts into the Build Illinois
9 Fund, the McCormick Place Expansion Project Fund, and the
10 Local Government Distributive Fund pursuant to the preceding
11 paragraphs or in any amendments thereto hereafter enacted,
12 beginning July 1, 1993, the Department shall each month pay
13 into the Illinois Tax Increment Fund 0.27% of 80% of the net
14 revenue realized for the preceding month from the 6.25%
15 general rate on the selling price of tangible personal
16 property.
17 Remaining moneys received by the Department pursuant to
18 this Act shall be paid into the General Revenue Fund of the
19 State Treasury.
20 The Department may, upon separate written notice to a
21 taxpayer, require the taxpayer to prepare and file with the
22 Department on a form prescribed by the Department within not
23 less than 60 days after receipt of the notice an annual
24 information return for the tax year specified in the notice.
25 Such annual return to the Department shall include a
26 statement of gross receipts as shown by the taxpayer's last
27 Federal income tax return. If the total receipts of the
28 business as reported in the Federal income tax return do not
29 agree with the gross receipts reported to the Department of
30 Revenue for the same period, the taxpayer shall attach to his
31 annual return a schedule showing a reconciliation of the 2
32 amounts and the reasons for the difference. The taxpayer's
33 annual return to the Department shall also disclose the cost
34 of goods sold by the taxpayer during the year covered by such
-45- LRB9004910KDsb
1 return, opening and closing inventories of such goods for
2 such year, cost of goods used from stock or taken from stock
3 and given away by the taxpayer during such year, pay roll
4 information of the taxpayer's business during such year and
5 any additional reasonable information which the Department
6 deems would be helpful in determining the accuracy of the
7 monthly, quarterly or annual returns filed by such taxpayer
8 as hereinbefore provided for in this Section.
9 If the annual information return required by this Section
10 is not filed when and as required, the taxpayer shall be
11 liable as follows:
12 (i) Until January 1, 1994, the taxpayer shall be
13 liable for a penalty equal to 1/6 of 1% of the tax due
14 from such taxpayer under this Act during the period to be
15 covered by the annual return for each month or fraction
16 of a month until such return is filed as required, the
17 penalty to be assessed and collected in the same manner
18 as any other penalty provided for in this Act.
19 (ii) On and after January 1, 1994, the taxpayer
20 shall be liable for a penalty as described in Section 3-4
21 of the Uniform Penalty and Interest Act.
22 The chief executive officer, proprietor, owner or highest
23 ranking manager shall sign the annual return to certify the
24 accuracy of the information contained therein. Any person
25 who willfully signs the annual return containing false or
26 inaccurate information shall be guilty of perjury and
27 punished accordingly. The annual return form prescribed by
28 the Department shall include a warning that the person
29 signing the return may be liable for perjury.
30 The foregoing portion of this Section concerning the
31 filing of an annual information return shall not apply to a
32 serviceman who is not required to file an income tax return
33 with the United States Government.
34 As soon as possible after the first day of each month,
-46- LRB9004910KDsb
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under this Act for the second preceding month;
6 except that this transfer shall not be made for the months
7 February through June, 1992.
8 Net revenue realized for a month shall be the revenue
9 collected by the State pursuant to this Act, less the amount
10 paid out during that month as refunds to taxpayers for
11 overpayment of liability.
12 For greater simplicity of administration, it shall be
13 permissible for manufacturers, importers and wholesalers
14 whose products are sold by numerous servicemen in Illinois,
15 and who wish to do so, to assume the responsibility for
16 accounting and paying to the Department all tax accruing
17 under this Act with respect to such sales, if the servicemen
18 who are affected do not make written objection to the
19 Department to this arrangement.
20 (Source: P.A. 88-45; 88-116; 88-547, eff. 6-30-94; 88-669,
21 eff. 11-29-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
22 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
23 Section 35. The Retailers' Occupation Tax Act is amended
24 by changing Section 3 as follows:
25 (35 ILCS 120/3) (from Ch. 120, par. 442)
26 Sec. 3. Except as provided in this Section, on or before
27 the twentieth day of each calendar month, every person
28 engaged in the business of selling tangible personal property
29 at retail in this State during the preceding calendar month
30 shall file a return with the Department, stating:
31 1. The name of the seller;
32 2. His residence address and the address of his
-47- LRB9004910KDsb
1 principal place of business and the address of the
2 principal place of business (if that is a different
3 address) from which he engages in the business of selling
4 tangible personal property at retail in this State;
5 3. Total amount of receipts received by him during
6 the preceding calendar month or quarter, as the case may
7 be, from sales of tangible personal property, and from
8 services furnished, by him during such preceding calendar
9 month or quarter;
10 4. Total amount received by him during the
11 preceding calendar month or quarter on charge and time
12 sales of tangible personal property, and from services
13 furnished, by him prior to the month or quarter for which
14 the return is filed;
15 5. Deductions allowed by law;
16 6. Gross receipts which were received by him during
17 the preceding calendar month or quarter and upon the
18 basis of which the tax is imposed;
19 7. The amount of credit provided in Section 2d of
20 this Act;
21 8. The amount of tax due;
22 9. The signature of the taxpayer; and
23 10. Such other reasonable information as the
24 Department may require.
25 If a taxpayer fails to sign a return within 30 days after
26 the proper notice and demand for signature by the Department,
27 the return shall be considered valid and any amount shown to
28 be due on the return shall be deemed assessed.
29 Each return shall be accompanied by the statement of
30 prepaid tax issued pursuant to Section 2e for which credit is
31 claimed.
32 A retailer may accept a Manufacturer's Purchase Credit
33 certification from a purchaser in satisfaction of Use Tax as
34 provided in Section 3-85 of the Use Tax Act if the purchaser
-48- LRB9004910KDsb
1 provides the appropriate documentation as required by Section
2 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
3 certification, accepted by a retailer as provided in Section
4 3-85 of the Use Tax Act, may be used by that retailer to
5 satisfy Retailers' Occupation Tax liability in the amount
6 claimed in the certification, not to exceed 6.25% of the
7 receipts subject to tax from a qualifying purchase.
8 The Department may require returns to be filed on a
9 quarterly basis. If so required, a return for each calendar
10 quarter shall be filed on or before the twentieth day of the
11 calendar month following the end of such calendar quarter.
12 The taxpayer shall also file a return with the Department for
13 each of the first two months of each calendar quarter, on or
14 before the twentieth day of the following calendar month,
15 stating:
16 1. The name of the seller;
17 2. The address of the principal place of business
18 from which he engages in the business of selling tangible
19 personal property at retail in this State;
20 3. The total amount of taxable receipts received by
21 him during the preceding calendar month from sales of
22 tangible personal property by him during such preceding
23 calendar month, including receipts from charge and time
24 sales, but less all deductions allowed by law;
25 4. The amount of credit provided in Section 2d of
26 this Act;
27 5. The amount of tax due; and
28 6. Such other reasonable information as the
29 Department may require.
30 If a total amount of less than $1 is payable, refundable
31 or creditable, such amount shall be disregarded if it is less
32 than 50 cents and shall be increased to $1 if it is 50 cents
33 or more.
34 Beginning October 1, 1993, a taxpayer who has an average
-49- LRB9004910KDsb
1 monthly tax liability of $150,000 or more shall make all
2 payments required by rules of the Department by electronic
3 funds transfer. Beginning October 1, 1994, a taxpayer who
4 has an average monthly tax liability of $100,000 or more
5 shall make all payments required by rules of the Department
6 by electronic funds transfer. Beginning October 1, 1995, a
7 taxpayer who has an average monthly tax liability of $50,000
8 or more shall make all payments required by rules of the
9 Department by electronic funds transfer. The term "average
10 monthly tax liability" shall be the sum of the taxpayer's
11 liabilities under this Act, and under all other State and
12 local occupation and use tax laws administered by the
13 Department, for the immediately preceding calendar year
14 divided by 12.
15 Before August 1 of each year beginning in 1993, the
16 Department shall notify all taxpayers required to make
17 payments by electronic funds transfer. All taxpayers
18 required to make payments by electronic funds transfer shall
19 make those payments for a minimum of one year beginning on
20 October 1.
21 Any taxpayer not required to make payments by electronic
22 funds transfer may make payments by electronic funds transfer
23 with the permission of the Department.
24 All taxpayers required to make payment by electronic
25 funds transfer and any taxpayers authorized to voluntarily
26 make payments by electronic funds transfer shall make those
27 payments in the manner authorized by the Department.
28 The Department shall adopt such rules as are necessary to
29 effectuate a program of electronic funds transfer and the
30 requirements of this Section.
31 Any amount which is required to be shown or reported on
32 any return or other document under this Act shall, if such
33 amount is not a whole-dollar amount, be increased to the
34 nearest whole-dollar amount in any case where the fractional
-50- LRB9004910KDsb
1 part of a dollar is 50 cents or more, and decreased to the
2 nearest whole-dollar amount where the fractional part of a
3 dollar is less than 50 cents.
4 If the retailer is otherwise required to file a monthly
5 return and if the retailer's average monthly tax liability to
6 the Department does not exceed $200, the Department may
7 authorize his returns to be filed on a quarter annual basis,
8 with the return for January, February and March of a given
9 year being due by April 20 of such year; with the return for
10 April, May and June of a given year being due by July 20 of
11 such year; with the return for July, August and September of
12 a given year being due by October 20 of such year, and with
13 the return for October, November and December of a given year
14 being due by January 20 of the following year.
15 If the retailer is otherwise required to file a monthly
16 or quarterly return and if the retailer's average monthly tax
17 liability with the Department does not exceed $50, the
18 Department may authorize his returns to be filed on an annual
19 basis, with the return for a given year being due by January
20 20 of the following year.
21 Such quarter annual and annual returns, as to form and
22 substance, shall be subject to the same requirements as
23 monthly returns.
24 Notwithstanding any other provision in this Act
25 concerning the time within which a retailer may file his
26 return, in the case of any retailer who ceases to engage in a
27 kind of business which makes him responsible for filing
28 returns under this Act, such retailer shall file a final
29 return under this Act with the Department not more than one
30 month after discontinuing such business.
31 Where the same person has more than one business
32 registered with the Department under separate registrations
33 under this Act, such person may not file each return that is
34 due as a single return covering all such registered
-51- LRB9004910KDsb
1 businesses, but shall file separate returns for each such
2 registered business.
3 In addition, with respect to motor vehicles, watercraft,
4 aircraft, and trailers that are required to be registered
5 with an agency of this State, every retailer selling this
6 kind of tangible personal property shall file, with the
7 Department, upon a form to be prescribed and supplied by the
8 Department, a separate return for each such item of tangible
9 personal property which the retailer sells, except that
10 where, in the same transaction, a retailer of aircraft,
11 watercraft, motor vehicles or trailers transfers more than
12 one aircraft, watercraft, motor vehicle or trailer to another
13 aircraft, watercraft, motor vehicle retailer or trailer
14 retailer for the purpose of resale, that seller for resale
15 may report the transfer of all aircraft, watercraft, motor
16 vehicles or trailers involved in that transaction to the
17 Department on the same uniform invoice-transaction reporting
18 return form. For purposes of this Section, "watercraft"
19 means a Class 2, Class 3, or Class 4 watercraft as defined in
20 Section 3-2 of the Boat Registration and Safety Act, a
21 personal watercraft, or any boat equipped with an inboard
22 motor.
23 Any retailer who sells only motor vehicles, watercraft,
24 aircraft, or trailers that are required to be registered with
25 an agency of this State, so that all retailers' occupation
26 tax liability is required to be reported, and is reported, on
27 such transaction reporting returns and who is not otherwise
28 required to file monthly or quarterly returns, need not file
29 monthly or quarterly returns. However, those retailers shall
30 be required to file returns on an annual basis.
31 The transaction reporting return, in the case of motor
32 vehicles or trailers that are required to be registered with
33 an agency of this State, shall be the same document as the
34 Uniform Invoice referred to in Section 5-402 of The Illinois
-52- LRB9004910KDsb
1 Vehicle Code and must show the name and address of the
2 seller; the name and address of the purchaser; the amount of
3 the selling price including the amount allowed by the
4 retailer for traded-in property, if any; the amount allowed
5 by the retailer for the traded-in tangible personal property,
6 if any, to the extent to which Section 1 of this Act allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the retailer
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance, if that is claimed to be the fact); the
14 place and date of the sale; a sufficient identification of
15 the property sold; such other information as is required in
16 Section 5-402 of The Illinois Vehicle Code, and such other
17 information as the Department may reasonably require.
18 The transaction reporting return in the case of
19 watercraft or aircraft must show the name and address of the
20 seller; the name and address of the purchaser; the amount of
21 the selling price including the amount allowed by the
22 retailer for traded-in property, if any; the amount allowed
23 by the retailer for the traded-in tangible personal property,
24 if any, to the extent to which Section 1 of this Act allows
25 an exemption for the value of traded-in property; the balance
26 payable after deducting such trade-in allowance from the
27 total selling price; the amount of tax due from the retailer
28 with respect to such transaction; the amount of tax collected
29 from the purchaser by the retailer on such transaction (or
30 satisfactory evidence that such tax is not due in that
31 particular instance, if that is claimed to be the fact); the
32 place and date of the sale, a sufficient identification of
33 the property sold, and such other information as the
34 Department may reasonably require.
-53- LRB9004910KDsb
1 Such transaction reporting return shall be filed not
2 later than 20 days after the day of delivery of the item that
3 is being sold, but may be filed by the retailer at any time
4 sooner than that if he chooses to do so. The transaction
5 reporting return and tax remittance or proof of exemption
6 from the Illinois use tax may be transmitted to the
7 Department by way of the State agency with which, or State
8 officer with whom the tangible personal property must be
9 titled or registered (if titling or registration is required)
10 if the Department and such agency or State officer determine
11 that this procedure will expedite the processing of
12 applications for title or registration.
13 With each such transaction reporting return, the retailer
14 shall remit the proper amount of tax due (or shall submit
15 satisfactory evidence that the sale is not taxable if that is
16 the case), to the Department or its agents, whereupon the
17 Department shall issue, in the purchaser's name, a use tax
18 receipt (or a certificate of exemption if the Department is
19 satisfied that the particular sale is tax exempt) which such
20 purchaser may submit to the agency with which, or State
21 officer with whom, he must title or register the tangible
22 personal property that is involved (if titling or
23 registration is required) in support of such purchaser's
24 application for an Illinois certificate or other evidence of
25 title or registration to such tangible personal property.
26 No retailer's failure or refusal to remit tax under this
27 Act precludes a user, who has paid the proper tax to the
28 retailer, from obtaining his certificate of title or other
29 evidence of title or registration (if titling or registration
30 is required) upon satisfying the Department that such user
31 has paid the proper tax (if tax is due) to the retailer. The
32 Department shall adopt appropriate rules to carry out the
33 mandate of this paragraph.
34 If the user who would otherwise pay tax to the retailer
-54- LRB9004910KDsb
1 wants the transaction reporting return filed and the payment
2 of the tax or proof of exemption made to the Department
3 before the retailer is willing to take these actions and such
4 user has not paid the tax to the retailer, such user may
5 certify to the fact of such delay by the retailer and may
6 (upon the Department being satisfied of the truth of such
7 certification) transmit the information required by the
8 transaction reporting return and the remittance for tax or
9 proof of exemption directly to the Department and obtain his
10 tax receipt or exemption determination, in which event the
11 transaction reporting return and tax remittance (if a tax
12 payment was required) shall be credited by the Department to
13 the proper retailer's account with the Department, but
14 without the 2.1% or 1.75% discount provided for in this
15 Section being allowed. When the user pays the tax directly
16 to the Department, he shall pay the tax in the same amount
17 and in the same form in which it would be remitted if the tax
18 had been remitted to the Department by the retailer.
19 Refunds made by the seller during the preceding return
20 period to purchasers, on account of tangible personal
21 property returned to the seller, shall be allowed as a
22 deduction under subdivision 5 of his monthly or quarterly
23 return, as the case may be, in case the seller had
24 theretofore included the receipts from the sale of such
25 tangible personal property in a return filed by him and had
26 paid the tax imposed by this Act with respect to such
27 receipts.
28 Where the seller is a corporation, the return filed on
29 behalf of such corporation shall be signed by the president,
30 vice-president, secretary or treasurer or by the properly
31 accredited agent of such corporation.
32 Where the seller is a limited liability company, the
33 return filed on behalf of the limited liability company shall
34 be signed by a manager, member, or properly accredited agent
-55- LRB9004910KDsb
1 of the limited liability company.
2 Except as provided in this Section, the retailer filing
3 the return under this Section shall, at the time of filing
4 such return, pay to the Department the amount of tax imposed
5 by this Act less a discount of 2.1% prior to January 1, 1990
6 and 1.75% on and after January 1, 1990, or $5 per calendar
7 year, whichever is greater, which is allowed to reimburse the
8 retailer for the expenses incurred in keeping records,
9 preparing and filing returns, remitting the tax and supplying
10 data to the Department on request. Any prepayment made
11 pursuant to Section 2d of this Act shall be included in the
12 amount on which such 2.1% or 1.75% discount is computed. In
13 the case of retailers who report and pay the tax on a
14 transaction by transaction basis, as provided in this
15 Section, such discount shall be taken with each such tax
16 remittance instead of when such retailer files his periodic
17 return.
18 If the taxpayer's average monthly tax liability to the
19 Department under this Act, the Use Tax Act, the Service
20 Occupation Tax Act, and the Service Use Tax Act, excluding
21 any liability for prepaid sales tax to be remitted in
22 accordance with Section 2d of this Act, was $10,000 or more
23 during the preceding 4 complete calendar quarters, he shall
24 file a return with the Department each month by the 20th day
25 of the month next following the month during which such tax
26 liability is incurred and shall make payments to the
27 Department on or before the 7th, 15th, 22nd and last day of
28 the month during which such liability is incurred. If the
29 month during which such tax liability is incurred began prior
30 to January 1, 1985, each payment shall be in an amount equal
31 to 1/4 of the taxpayer's actual liability for the month or an
32 amount set by the Department not to exceed 1/4 of the average
33 monthly liability of the taxpayer to the Department for the
34 preceding 4 complete calendar quarters (excluding the month
-56- LRB9004910KDsb
1 of highest liability and the month of lowest liability in
2 such 4 quarter period). If the month during which such tax
3 liability is incurred begins on or after January 1, 1985 and
4 prior to January 1, 1987, each payment shall be in an amount
5 equal to 22.5% of the taxpayer's actual liability for the
6 month or 27.5% of the taxpayer's liability for the same
7 calendar month of the preceding year. If the month during
8 which such tax liability is incurred begins on or after
9 January 1, 1987 and prior to January 1, 1988, each payment
10 shall be in an amount equal to 22.5% of the taxpayer's actual
11 liability for the month or 26.25% of the taxpayer's liability
12 for the same calendar month of the preceding year. If the
13 month during which such tax liability is incurred begins on
14 or after January 1, 1988, and prior to January 1, 1989, or
15 begins on or after January 1, 1996, each payment shall be in
16 an amount equal to 22.5% of the taxpayer's actual liability
17 for the month or 25% of the taxpayer's liability for the same
18 calendar month of the preceding year. If the month during
19 which such tax liability is incurred begins on or after
20 January 1, 1989, and prior to January 1, 1996, each payment
21 shall be in an amount equal to 22.5% of the taxpayer's actual
22 liability for the month or 25% of the taxpayer's liability
23 for the same calendar month of the preceding year or 100% of
24 the taxpayer's actual liability for the quarter monthly
25 reporting period. The amount of such quarter monthly
26 payments shall be credited against the final tax liability of
27 the taxpayer's return for that month. Once applicable, the
28 requirement of the making of quarter monthly payments to the
29 Department by taxpayers having an average monthly tax
30 liability of $10,000 or more as determined in the manner
31 provided above shall continue until such taxpayer's average
32 monthly liability to the Department during the preceding 4
33 complete calendar quarters (excluding the month of highest
34 liability and the month of lowest liability) is less than
-57- LRB9004910KDsb
1 $9,000, or until such taxpayer's average monthly liability to
2 the Department as computed for each calendar quarter of the 4
3 preceding complete calendar quarter period is less than
4 $10,000. However, if a taxpayer can show the Department that
5 a substantial change in the taxpayer's business has occurred
6 which causes the taxpayer to anticipate that his average
7 monthly tax liability for the reasonably foreseeable future
8 will fall below $10,000, then such taxpayer may petition the
9 Department for a change in such taxpayer's reporting status.
10 The Department shall change such taxpayer's reporting status
11 unless it finds that such change is seasonal in nature and
12 not likely to be long term. If any such quarter monthly
13 payment is not paid at the time or in the amount required by
14 this Section, then the taxpayer's 2.1% or 1.75% vendors'
15 discount shall be reduced by 2.1% or 1.75% of the difference
16 between the minimum amount due as a payment and the amount of
17 such quarter monthly payment actually and timely paid, and
18 the taxpayer shall be liable for penalties and interest on
19 such difference, except insofar as the taxpayer has
20 previously made payments for that month to the Department in
21 excess of the minimum payments previously due as provided in
22 this Section. The Department shall make reasonable rules and
23 regulations to govern the quarter monthly payment amount and
24 quarter monthly payment dates for taxpayers who file on other
25 than a calendar monthly basis.
26 Without regard to whether a taxpayer is required to make
27 quarter monthly payments as specified above, any taxpayer who
28 is required by Section 2d of this Act to collect and remit
29 prepaid taxes and has collected prepaid taxes which average
30 in excess of $25,000 per month during the preceding 2
31 complete calendar quarters, shall file a return with the
32 Department as required by Section 2f and shall make payments
33 to the Department on or before the 7th, 15th, 22nd and last
34 day of the month during which such liability is incurred. If
-58- LRB9004910KDsb
1 the month during which such tax liability is incurred began
2 prior to the effective date of this amendatory Act of 1985,
3 each payment shall be in an amount not less than 22.5% of the
4 taxpayer's actual liability under Section 2d. If the month
5 during which such tax liability is incurred begins on or
6 after January 1, 1986, each payment shall be in an amount
7 equal to 22.5% of the taxpayer's actual liability for the
8 month or 27.5% of the taxpayer's liability for the same
9 calendar month of the preceding calendar year. If the month
10 during which such tax liability is incurred begins on or
11 after January 1, 1987, each payment shall be in an amount
12 equal to 22.5% of the taxpayer's actual liability for the
13 month or 26.25% of the taxpayer's liability for the same
14 calendar month of the preceding year. The amount of such
15 quarter monthly payments shall be credited against the final
16 tax liability of the taxpayer's return for that month filed
17 under this Section or Section 2f, as the case may be. Once
18 applicable, the requirement of the making of quarter monthly
19 payments to the Department pursuant to this paragraph shall
20 continue until such taxpayer's average monthly prepaid tax
21 collections during the preceding 2 complete calendar quarters
22 is $25,000 or less. If any such quarter monthly payment is
23 not paid at the time or in the amount required, the taxpayer
24 shall be liable for penalties and interest on such
25 difference, except insofar as the taxpayer has previously
26 made payments for that month in excess of the minimum
27 payments previously due.
28 If any payment provided for in this Section exceeds the
29 taxpayer's liabilities under this Act, the Use Tax Act, the
30 Service Occupation Tax Act and the Service Use Tax Act, as
31 shown on an original monthly return, the Department shall, if
32 requested by the taxpayer, issue to the taxpayer a credit
33 memorandum no later than 30 days after the date of payment.
34 The credit evidenced by such credit memorandum may be
-59- LRB9004910KDsb
1 assigned by the taxpayer to a similar taxpayer under this
2 Act, the Use Tax Act, the Service Occupation Tax Act or the
3 Service Use Tax Act, in accordance with reasonable rules and
4 regulations to be prescribed by the Department. If no such
5 request is made, the taxpayer may credit such excess payment
6 against tax liability subsequently to be remitted to the
7 Department under this Act, the Use Tax Act, the Service
8 Occupation Tax Act or the Service Use Tax Act, in accordance
9 with reasonable rules and regulations prescribed by the
10 Department. If the Department subsequently determined that
11 all or any part of the credit taken was not actually due to
12 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
13 shall be reduced by 2.1% or 1.75% of the difference between
14 the credit taken and that actually due, and that taxpayer
15 shall be liable for penalties and interest on such
16 difference.
17 If a retailer of motor fuel is entitled to a credit under
18 Section 2d of this Act which exceeds the taxpayer's liability
19 to the Department under this Act for the month which the
20 taxpayer is filing a return, the Department shall issue the
21 taxpayer a credit memorandum for the excess.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund, a special fund
24 in the State treasury which is hereby created, the net
25 revenue realized for the preceding month from the 1% tax on
26 sales of food for human consumption which is to be consumed
27 off the premises where it is sold (other than alcoholic
28 beverages, soft drinks and food which has been prepared for
29 immediate consumption) and prescription and nonprescription
30 medicines, drugs, medical appliances and insulin, urine
31 testing materials, syringes and needles used by diabetics.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the County and Mass Transit District Fund, a
34 special fund in the State treasury which is hereby created,
-60- LRB9004910KDsb
1 4% of the net revenue realized for the preceding month from
2 the 6.25% general rate.
3 Beginning January 1, 1990, each month the Department
4 shall pay into the Local Government Tax Fund 16% of the net
5 revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property. Beginning July 1, 1997, each month the Department
8 shall pay into the Community Policing Fund 2.01% of the net
9 revenue realized for the preceding month from the State 5%
10 general rate on the selling price of tangible personal
11 property.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act, (a) 1.75% thereof shall be paid into
14 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
15 and on and after July 1, 1989, 3.8% thereof shall be paid
16 into the Build Illinois Fund; provided, however, that if in
17 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
18 as the case may be, of the moneys received by the Department
19 and required to be paid into the Build Illinois Fund pursuant
20 to this Act, Section 9 of the Use Tax Act, Section 9 of the
21 Service Use Tax Act, and Section 9 of the Service Occupation
22 Tax Act, such Acts being hereinafter called the "Tax Acts"
23 and such aggregate of 2.2% or 3.8%, as the case may be, of
24 moneys being hereinafter called the "Tax Act Amount", and (2)
25 the amount transferred to the Build Illinois Fund from the
26 State and Local Sales Tax Reform Fund shall be less than the
27 Annual Specified Amount (as hereinafter defined), an amount
28 equal to the difference shall be immediately paid into the
29 Build Illinois Fund from other moneys received by the
30 Department pursuant to the Tax Acts; the "Annual Specified
31 Amount" means the amounts specified below for fiscal years
32 1986 through 1993:
33 Fiscal Year Annual Specified Amount
34 1986 $54,800,000
-61- LRB9004910KDsb
1 1987 $76,650,000
2 1988 $80,480,000
3 1989 $88,510,000
4 1990 $115,330,000
5 1991 $145,470,000
6 1992 $182,730,000
7 1993 $206,520,000;
8 and means the Certified Annual Debt Service Requirement (as
9 defined in Section 13 of the Build Illinois Bond Act) or the
10 Tax Act Amount, whichever is greater, for fiscal year 1994
11 and each fiscal year thereafter; and further provided, that
12 if on the last business day of any month the sum of (1) the
13 Tax Act Amount required to be deposited into the Build
14 Illinois Bond Account in the Build Illinois Fund during such
15 month and (2) the amount transferred to the Build Illinois
16 Fund from the State and Local Sales Tax Reform Fund shall
17 have been less than 1/12 of the Annual Specified Amount, an
18 amount equal to the difference shall be immediately paid into
19 the Build Illinois Fund from other moneys received by the
20 Department pursuant to the Tax Acts; and, further provided,
21 that in no event shall the payments required under the
22 preceding proviso result in aggregate payments into the Build
23 Illinois Fund pursuant to this clause (b) for any fiscal year
24 in excess of the greater of (i) the Tax Act Amount or (ii)
25 the Annual Specified Amount for such fiscal year. The
26 amounts payable into the Build Illinois Fund under clause (b)
27 of the first sentence in this paragraph shall be payable only
28 until such time as the aggregate amount on deposit under each
29 trust indenture securing Bonds issued and outstanding
30 pursuant to the Build Illinois Bond Act is sufficient, taking
31 into account any future investment income, to fully provide,
32 in accordance with such indenture, for the defeasance of or
33 the payment of the principal of, premium, if any, and
34 interest on the Bonds secured by such indenture and on any
-62- LRB9004910KDsb
1 Bonds expected to be issued thereafter and all fees and costs
2 payable with respect thereto, all as certified by the
3 Director of the Bureau of the Budget. If on the last
4 business day of any month in which Bonds are outstanding
5 pursuant to the Build Illinois Bond Act, the aggregate of
6 moneys deposited in the Build Illinois Bond Account in the
7 Build Illinois Fund in such month shall be less than the
8 amount required to be transferred in such month from the
9 Build Illinois Bond Account to the Build Illinois Bond
10 Retirement and Interest Fund pursuant to Section 13 of the
11 Build Illinois Bond Act, an amount equal to such deficiency
12 shall be immediately paid from other moneys received by the
13 Department pursuant to the Tax Acts to the Build Illinois
14 Fund; provided, however, that any amounts paid to the Build
15 Illinois Fund in any fiscal year pursuant to this sentence
16 shall be deemed to constitute payments pursuant to clause (b)
17 of the first sentence of this paragraph and shall reduce the
18 amount otherwise payable for such fiscal year pursuant to
19 that clause (b). The moneys received by the Department
20 pursuant to this Act and required to be deposited into the
21 Build Illinois Fund are subject to the pledge, claim and
22 charge set forth in Section 12 of the Build Illinois Bond
23 Act.
24 Subject to payment of amounts into the Build Illinois
25 Fund as provided in the preceding paragraph or in any
26 amendment thereto hereafter enacted, the following specified
27 monthly installment of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority provided under Section 8.25f of the
30 State Finance Act, but not in excess of sums designated as
31 "Total Deposit", shall be deposited in the aggregate from
32 collections under Section 9 of the Use Tax Act, Section 9 of
33 the Service Use Tax Act, Section 9 of the Service Occupation
34 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
-63- LRB9004910KDsb
1 into the McCormick Place Expansion Project Fund in the
2 specified fiscal years.
3 Fiscal Year Total Deposit
4 1993 $0
5 1994 53,000,000
6 1995 58,000,000
7 1996 61,000,000
8 1997 64,000,000
9 1998 68,000,000
10 1999 71,000,000
11 2000 75,000,000
12 2001 80,000,000
13 2002 84,000,000
14 2003 89,000,000
15 2004 and 93,000,000
16 each fiscal year
17 thereafter that bonds
18 are outstanding under
19 Section 13.2 of the
20 Metropolitan Pier and
21 Exposition Authority
22 Act.
23 Beginning July 20, 1993 and in each month of each fiscal
24 year thereafter, one-eighth of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority for that fiscal year, less the amount
27 deposited into the McCormick Place Expansion Project Fund by
28 the State Treasurer in the respective month under subsection
29 (g) of Section 13 of the Metropolitan Pier and Exposition
30 Authority Act, plus cumulative deficiencies in the deposits
31 required under this Section for previous months and years,
32 shall be deposited into the McCormick Place Expansion Project
33 Fund, until the full amount requested for the fiscal year,
34 but not in excess of the amount specified above as "Total
-64- LRB9004910KDsb
1 Deposit", has been deposited.
2 Subject to payment of amounts into the Build Illinois
3 Fund and the McCormick Place Expansion Project Fund pursuant
4 to the preceding paragraphs or in any amendment thereto
5 hereafter enacted, each month the Department shall pay into
6 the Local Government Distributive Fund 0.4% of the net
7 revenue realized for the preceding month from the 5% general
8 rate or 0.4% of 80% of the net revenue realized for the
9 preceding month from the 6.25% general rate, as the case may
10 be, on the selling price of tangible personal property which
11 amount shall, subject to appropriation, be distributed as
12 provided in Section 2 of the State Revenue Sharing Act. No
13 payments or distributions pursuant to this paragraph shall be
14 made if the tax imposed by this Act on photoprocessing
15 products is declared unconstitutional, or if the proceeds
16 from such tax are unavailable for distribution because of
17 litigation.
18 Subject to payment of amounts into the Build Illinois
19 Fund, the McCormick Place Expansion Project to the preceding
20 paragraphs or in any amendments thereto hereafter enacted,
21 beginning July 1, 1993, the Department shall each month pay
22 into the Illinois Tax Increment Fund 0.27% of 80% of the net
23 revenue realized for the preceding month from the 6.25%
24 general rate on the selling price of tangible personal
25 property.
26 Of the remainder of the moneys received by the Department
27 pursuant to this Act, 75% thereof shall be paid into the
28 State Treasury and 25% shall be reserved in a special account
29 and used only for the transfer to the Common School Fund as
30 part of the monthly transfer from the General Revenue Fund in
31 accordance with Section 8a of the State Finance Act.
32 The Department may, upon separate written notice to a
33 taxpayer, require the taxpayer to prepare and file with the
34 Department on a form prescribed by the Department within not
-65- LRB9004910KDsb
1 less than 60 days after receipt of the notice an annual
2 information return for the tax year specified in the notice.
3 Such annual return to the Department shall include a
4 statement of gross receipts as shown by the retailer's last
5 Federal income tax return. If the total receipts of the
6 business as reported in the Federal income tax return do not
7 agree with the gross receipts reported to the Department of
8 Revenue for the same period, the retailer shall attach to his
9 annual return a schedule showing a reconciliation of the 2
10 amounts and the reasons for the difference. The retailer's
11 annual return to the Department shall also disclose the cost
12 of goods sold by the retailer during the year covered by such
13 return, opening and closing inventories of such goods for
14 such year, costs of goods used from stock or taken from stock
15 and given away by the retailer during such year, payroll
16 information of the retailer's business during such year and
17 any additional reasonable information which the Department
18 deems would be helpful in determining the accuracy of the
19 monthly, quarterly or annual returns filed by such retailer
20 as provided for in this Section.
21 If the annual information return required by this Section
22 is not filed when and as required, the taxpayer shall be
23 liable as follows:
24 (i) Until January 1, 1994, the taxpayer shall be
25 liable for a penalty equal to 1/6 of 1% of the tax due
26 from such taxpayer under this Act during the period to be
27 covered by the annual return for each month or fraction
28 of a month until such return is filed as required, the
29 penalty to be assessed and collected in the same manner
30 as any other penalty provided for in this Act.
31 (ii) On and after January 1, 1994, the taxpayer
32 shall be liable for a penalty as described in Section 3-4
33 of the Uniform Penalty and Interest Act.
34 The chief executive officer, proprietor, owner or highest
-66- LRB9004910KDsb
1 ranking manager shall sign the annual return to certify the
2 accuracy of the information contained therein. Any person
3 who willfully signs the annual return containing false or
4 inaccurate information shall be guilty of perjury and
5 punished accordingly. The annual return form prescribed by
6 the Department shall include a warning that the person
7 signing the return may be liable for perjury.
8 The provisions of this Section concerning the filing of
9 an annual information return do not apply to a retailer who
10 is not required to file an income tax return with the United
11 States Government.
12 As soon as possible after the first day of each month,
13 upon certification of the Department of Revenue, the
14 Comptroller shall order transferred and the Treasurer shall
15 transfer from the General Revenue Fund to the Motor Fuel Tax
16 Fund an amount equal to 1.7% of 80% of the net revenue
17 realized under this Act for the second preceding month;
18 except that this transfer shall not be made for the months
19 February through June, 1992.
20 Net revenue realized for a month shall be the revenue
21 collected by the State pursuant to this Act, less the amount
22 paid out during that month as refunds to taxpayers for
23 overpayment of liability.
24 For greater simplicity of administration, manufacturers,
25 importers and wholesalers whose products are sold at retail
26 in Illinois by numerous retailers, and who wish to do so, may
27 assume the responsibility for accounting and paying to the
28 Department all tax accruing under this Act with respect to
29 such sales, if the retailers who are affected do not make
30 written objection to the Department to this arrangement.
31 Any person who promotes, organizes, provides retail
32 selling space for concessionaires or other types of sellers
33 at the Illinois State Fair, DuQuoin State Fair, county fairs,
34 local fairs, art shows, flea markets and similar exhibitions
-67- LRB9004910KDsb
1 or events, including any transient merchant as defined by
2 Section 2 of the Transient Merchant Act of 1987, is required
3 to file a report with the Department providing the name of
4 the merchant's business, the name of the person or persons
5 engaged in merchant's business, the permanent address and
6 Illinois Retailers Occupation Tax Registration Number of the
7 merchant, the dates and location of the event and other
8 reasonable information that the Department may require. The
9 report must be filed not later than the 20th day of the month
10 next following the month during which the event with retail
11 sales was held. Any person who fails to file a report
12 required by this Section commits a business offense and is
13 subject to a fine not to exceed $250.
14 Any person engaged in the business of selling tangible
15 personal property at retail as a concessionaire or other type
16 of seller at the Illinois State Fair, county fairs, art
17 shows, flea markets and similar exhibitions or events, or any
18 transient merchants, as defined by Section 2 of the Transient
19 Merchant Act of 1987, may be required to make a daily report
20 of the amount of such sales to the Department and to make a
21 daily payment of the full amount of tax due. The Department
22 shall impose this requirement when it finds that there is a
23 significant risk of loss of revenue to the State at such an
24 exhibition or event. Such a finding shall be based on
25 evidence that a substantial number of concessionaires or
26 other sellers who are not residents of Illinois will be
27 engaging in the business of selling tangible personal
28 property at retail at the exhibition or event, or other
29 evidence of a significant risk of loss of revenue to the
30 State. The Department shall notify concessionaires and other
31 sellers affected by the imposition of this requirement. In
32 the absence of notification by the Department, the
33 concessionaires and other sellers shall file their returns as
34 otherwise required in this Section.
-68- LRB9004910KDsb
1 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
2 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
3 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
4 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
5 Section 40. The Illinois Police Training Act is amended
6 by adding Sections 5.1 and 5.2 as follows:
7 (50 ILCS 705/5.1 new)
8 Sec. 5.1. Community Policing Fund audits. The Board shall
9 conduct random audits of municipalities and counties
10 receiving funds from the Community Policing Fund to ensure
11 that all proceeds from that Fund are being used solely for
12 the purposes set forth in Section 3a of the State Revenue
13 Sharing Act.
14 (50 ILCS 705/5.2 new)
15 Sec. 5.2. Certification to the Department of Revenue. In
16 the event that the Board determines that a municipality or
17 county has not used funds received from the Community
18 Policing Fund exclusively as required by Section 3a of the
19 State Revenue Sharing Act, the municipality or county is
20 ineligible to receive any funds from the Community Policing
21 Fund for a period of one year from the date the municipality
22 or county is certified to be ineligible. The Board shall
23 certify the name of each municipality or county determined to
24 be in violation of Section 3a of the State Revenue Sharing
25 Act to the Department of Revenue, which shall withhold
26 payments to that municipality for a period of one year from
27 the date the municipality or county is certified to be
28 ineligible.
29 A municipality or county may, at any time, notify the
30 Board that it does not wish to receive funds from the
31 Community Policing Fund. The Board shall certify the name of
-69- LRB9004910KDsb
1 each such municipality and county to the Department of
2 Revenue, which shall withhold all future payments from the
3 Fund to that municipality or county.
4 A municipality or county that has notified the Board that
5 it does not wish to receive funds from the Community Policing
6 Fund may subsequently notify the Board that it does wish to
7 receive funds from that Fund. The Board shall certify to the
8 Department of Revenue the name of each municipality and
9 county that so notifies the Board. Beginning with the month
10 following the month in which the Department of Revenue
11 receives the certification from the Board, the Department of
12 Revenue shall allocate a portion of the moneys in the Fund to
13 that county or municipality, as provided in Section 2a of the
14 State Revenue Sharing Act.
15 Section 9999. Effective date. This Act takes effect June
16 1, 1997.