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90_HB2333eng
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
35 ILCS 105/1a from Ch. 120, par. 439.1a
35 ILCS 105/3-10 from Ch. 120, par. 439.3-10
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 120/1c from Ch. 120, par. 440c
35 ILCS 120/2-10 from Ch. 120, par. 441-10
35 ILCS 120/3 from Ch. 120, par. 442
Creates the Automobile Leasing Occupation and Use Tax
Act. Imposes a tax at the rate of 5% of the gross receipts
of persons engaged in the business of leasing automobiles and
a tax at the rate of 5% of the leasing price upon the
privilege of using in this State an automobile that is leased
from a lessor. Amends the State Finance Act, the Use Tax
Act, and the Retailers' Occupation Tax Act. Imposes a use
tax and a retailers' occupation tax at the rate of 1.25% on
any motor vehicle that is sold to a lessor for the purpose of
leasing under a lease subject to the Automobile Leasing
Occupation and Use Tax Act. Imposes a tax at the rate of 5%
on a motor vehicle that has been leased by a lessor to a
lessee under a lease that is subject to the Automobile
Leasing Occupation and Use Tax Act and is subsequently sold
to the lessee of the vehicle. Provides for the distribution
of proceeds of the tax. Effective July 1, 1998.
LRB9007346KDpc
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1 AN ACT concerning taxes.
2 Section 1. Short title. This Act may be cited as the
3 Automobile Leasing Occupation and Use Tax Act.
4 Section 5. Definitions. As used in this Act:
5 "Automobile" means any motor vehicle of the first
6 division, a motor vehicle of the second division which is a
7 self-contained motor vehicle designed or permanently
8 converted to provide living quarters for recreational,
9 camping or travel use, with direct walk through access to the
10 living quarters from the driver's seat, or a motor vehicle of
11 the second division which is of the van configuration
12 designed for the transportation of not less than 7 nor more
13 than 16 passengers, as defined in Section 1-146 of the
14 Illinois Vehicle Code.
15 "Department" means the Department of Revenue.
16 "Person" means any natural individual, firm, partnership,
17 association, joint stock company, joint venture, public or
18 private corporation, or a receiver, executor, trustee,
19 conservator, or other representatives appointed by order of
20 any court.
21 "Leasing" means any transfer of the possession or right
22 to possession of an automobile to a user for a valuable
23 consideration for a period of more than 1 year.
24 "Lessor" means any person, firm, corporation, or
25 association engaged in the business of leasing automobiles to
26 users. For this purpose, the objective of making a profit is
27 not necessary to make the leasing activity a business.
28 "Lessee" means any user to whom the possession, or the
29 right to possession, of an automobile is transferred for a
30 valuable consideration for a period more than one year which
31 is paid by such lessee or by someone else.
32 "Gross receipts" means the total leasing price for the
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1 lease of an automobile. In the case of lease transactions in
2 which the consideration is paid to the lessor on an
3 installment basis, the amounts of such payments shall be
4 included by the lessor in gross receipts only as and when
5 payments are received by the lessor.
6 "Leasing price" means the consideration for leasing an
7 automobile valued in money, whether received in money or
8 otherwise, including cash, credits, property and services,
9 and shall be determined without any deduction on account of
10 the cost of the property leased, the cost of materials used,
11 labor or service cost or any other expense whatsoever, but
12 does not include charges that are added by lessors on account
13 of the lessor's tax liability under this Act, or on account
14 of the lessor's duty to collect, from the lessee, the tax
15 that is imposed by Section 20 of this Act. The phrase
16 "leasing price" does not include the residual value of the
17 automobile or any separately stated charge on the lessee's
18 bill for insurance.
19 "Maintaining a place of business in this State" means
20 having or maintaining within this State, directly or by a
21 subsidiary, an office, repair facilities, distribution house,
22 sales house, warehouse, or other place of business, or any
23 agent, or other representative, operating within this State,
24 irrespective of whether the place of business or agent or
25 other representative is located here permanently or
26 temporarily.
27 "Residual value" means the estimated value of the vehicle
28 at the end of the scheduled lease term, used by the lessor in
29 determining the base lease payment, as established by the
30 lessor at the time the lessor and lessee enter into the
31 lease.
32 Section 10. Imposition of occupation tax. A tax is
33 imposed upon persons engaged in this State in the business of
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1 leasing automobiles in Illinois at the rate of 5% of the
2 gross receipts received from such business. The tax herein
3 imposed does not apply to the leasing of automobiles to any
4 governmental body, nor to any corporation, society,
5 association, foundation or institution organized and operated
6 exclusively for charitable, religious or educational
7 purposes, nor to any not for profit corporation, society,
8 association, foundation, institution or organization which
9 has no compensated officers or employees and which is
10 organized and operated primarily for the recreation of
11 persons 55 years of age or older. Beginning July 1, 1998
12 through June 30, 1999, each month the Department shall pay
13 into the Tax Compliance and Administration Fund 3% of the
14 revenue realized from the tax imposed by this Section, and
15 the remaining such revenue shall be paid as provided for in
16 Section 3 of the Retailers' Occupation Tax Act. Beginning
17 July 1, 1999 and each month thereafter, the Department shall
18 pay into the Tax Compliance and Administration Fund 1% of the
19 revenue realized from the tax imposed by this Section, and
20 the remaining such revenue shall be paid as provided for in
21 Section 3 of the Retailers' Occupation Tax Act.
22 The Department shall have full power to administer and
23 enforce this Section, to collect all taxes and penalties due
24 hereunder, to dispose of taxes and penalties so collected in
25 the manner hereinafter provided, and to determine all rights
26 to credit memoranda, arising on account of the erroneous
27 payment of tax or penalty hereunder. In the administration
28 of, and compliance with, this Section, the Department and
29 persons who are subject to this Section shall have the same
30 rights, remedies, privileges, immunities, powers and duties,
31 and be subject to the same conditions, restrictions,
32 limitation, penalties and definitions of terms, and employ
33 the same modes of procedure, as are prescribed in Sections 1,
34 1a, 2 through 2-65 (in respect to all provisions therein
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1 other than the State rate of tax), 2a, 2b, 2c, 3 (except
2 provisions relating to transaction returns and quarter
3 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
4 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
5 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
6 Penalty and Interest Act as fully as if those provisions were
7 set forth herein. For purposes of this Section, references
8 in such incorporated Sections of the Retailers' Occupation
9 Tax Act to retailers, sellers or persons engaged in the
10 business of selling tangible personal property means persons
11 engaged in the leasing of automobiles under leases subject to
12 this Act.
13 Section 15. Registration. Every person engaged in this
14 State in the business of leasing automobiles shall apply to
15 the Department (upon a form prescribed and furnished by the
16 Department) for a certificate of registration under this Act.
17 The certificate of registration that is issued by the
18 Department to a retailer under the Retailers' Occupation Tax
19 Act shall permit such lessor to engage in a business that is
20 taxable under this Section without registering separately
21 with the Department.
22 Section 20. Imposition of use tax. A tax is imposed upon
23 the privilege of using in this State, an automobile which is
24 leased from a lessor. Such tax is at the rate of 5% of the
25 leasing price of such automobile paid to the lessor under any
26 lease agreement. The tax herein imposed shall not apply to
27 any governmental body, nor to any corporation, society,
28 association, foundation or institution, organized and
29 operated exclusively for charitable, religious or educational
30 purposes, nor to any not for profit corporation, society,
31 association, foundation, institution or organization which
32 has no compensated officers or employees and which is
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1 organized and operated primarily for the recreation of
2 persons 55 years of age or older, when using tangible
3 personal property as a lessee. Beginning July 1, 1998
4 through June 30, 1999, each month the Department shall pay
5 into the Tax Compliance and Administration Fund 3% of the
6 revenue realized from the tax imposed by this Section, and
7 the remaining such revenue shall be paid as provided for in
8 Section 9 of the Use Tax Act. Beginning July 1, 1999 and
9 each month thereafter, the Department shall pay into the Tax
10 Compliance and Administration Fund 1% of the revenue realized
11 from the tax imposed by this Section, and the remaining such
12 revenue shall be paid as provided for in Section 9 of the Use
13 Tax Act.
14 The Department shall have full power to administer and
15 enforce this Section; to collect all taxes, penalties and
16 interest due hereunder; to dispose of taxes, penalties and
17 interest so collected in the manner hereinafter provided, and
18 to determine all rights to credit memoranda or refunds
19 arising on account of the erroneous payment of tax, penalty
20 or interest hereunder. In the administration of, and
21 compliance with, this Section, the Department and persons who
22 are subject to this Section shall have the same rights,
23 remedies, privileges, immunities, powers and duties, and be
24 subject to the same conditions, restrictions, limitations,
25 penalties and definitions of terms, and employ the same modes
26 of procedure, as are prescribed in Sections 2, 3 through
27 3-80, 4, 6, 7, 8, 9 (except provisions relating to
28 transaction returns and quarter monthly payments), 10, 11,
29 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
30 Act, and are not inconsistent with this Section, as fully as
31 if those provisions were set forth herein. For purposes of
32 this Section, references in such incorporated Sections of the
33 Use Tax Act to users or purchasers means lessees of
34 automobiles under leases subject to this Act.
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1 Section 25. Use tax collected. The use tax imposed by
2 Section 20 shall be collected from the lessee and remitted to
3 the Department by a lessor maintaining a place of business in
4 this State or who titles or registers an automobile with an
5 agency of this State's government that is used for leasing in
6 this State.
7 The use tax imposed by Section 20 and not paid to a
8 lessor pursuant to the preceding paragraph of this Section
9 shall be paid to the Department directly by any person using
10 such automobile within this State.
11 Lessors shall collect the tax from lessees by adding the
12 tax to the leasing price of the automobile, when leased for
13 use, in the manner prescribed by the Department. The
14 Department shall have the power to adopt and promulgate
15 reasonable rules and regulations for the adding of such tax
16 by lessors to leasing prices by prescribing bracket systems
17 for the purpose of enabling such lessors to add and collect,
18 as far as practicable, the amount of such tax.
19 The tax imposed by this Section shall, when collected, be
20 stated as a distinct item on the customer's bill, separate
21 and apart from the leasing price of the automobile.
22 Section 30. Severability clause. If any clause,
23 sentence, Section, provision or part thereof of this Act or
24 the application thereof to any person or circumstance shall
25 be adjudged to be unconstitutional, the remainder of this Act
26 or its application to persons or circumstances other than
27 those to which it is held invalid, shall not be affected
28 thereby. In particular, if any provision which exempts or
29 has the effect of exempting some class of users or some kind
30 of use from the tax imposed by this Act should be held to
31 constitute or to result in an invalid classification or to be
32 unconstitutional for some other reason, such provision shall
33 be deemed to be severable with the remainder of this Act
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1 without said provision being held constitutional.
2 Section 80. The State Finance Act is amended by changing
3 Sections 6z-18 and 6z-20 as follows:
4 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
5 Sec. 6z-18. A portion of the money paid into the Local
6 Government Tax Fund from sales of food for human consumption
7 which is to be consumed off the premises where it is sold
8 (other than alcoholic beverages, soft drinks and food which
9 has been prepared for immediate consumption) and prescription
10 and nonprescription medicines, drugs, medical appliances and
11 insulin, urine testing materials, syringes and needles used
12 by diabetics, which occurred in municipalities, shall be
13 distributed to each municipality based upon the sales which
14 occurred in that municipality. The remainder shall be
15 distributed to each county based upon the sales which
16 occurred in the unincorporated area of that county.
17 A portion of the money paid into the Local Government Tax
18 Fund from the 6.25% general use tax rate on the selling price
19 of tangible personal property which is purchased outside
20 Illinois at retail from a retailer and which is titled or
21 registered by any agency of this State's government shall be
22 distributed to municipalities as provided in this paragraph.
23 Each municipality shall receive the amount attributable to
24 sales for which Illinois addresses for titling or
25 registration purposes are given as being in such
26 municipality. The remainder of the money paid into the Local
27 Government Tax Fund from such sales shall be distributed to
28 counties. Each county shall receive the amount attributable
29 to sales for which Illinois addresses for titling or
30 registration purposes are given as being located in the
31 unincorporated area of such county.
32 A portion of the money paid into the Local Government Tax
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1 Fund from the 1.25% rate imposed under the Use Tax Act upon
2 the selling price of any motor vehicle that is purchased
3 outside of Illinois at retail by a lessor for purposes of
4 leasing under a lease subject to the Automobile Leasing
5 Occupation and Use Tax Act which is titled or registered by
6 any agency of this State's government shall be distributed as
7 provided in this paragraph, less 3% for the first 12 monthly
8 distributions and 1% for each monthly distribution
9 thereafter, which sum shall be paid into the Tax Compliance
10 and Administration Fund. Each municipality shall receive the
11 amount attributable to sales for which Illinois addresses for
12 titling or registration purposes are given as being in such
13 municipality. The remainder of the money paid into the Local
14 Government Tax Fund from such sales shall be distributed to
15 counties. Each county shall receive the amount attributable
16 to sales for which Illinois addresses for titling or
17 registration purposes are given as being located in the
18 unincorporated area of such county.
19 A portion of the money paid into the Local Government Tax
20 Fund from the 6.25% general rate on sales subject to taxation
21 under the Retailers' Occupation Tax Act and the Service
22 Occupation Tax Act, which occurred in municipalities, shall
23 be distributed to each municipality, based upon the sales
24 which occurred in that municipality. The remainder shall be
25 distributed to each county, based upon the sales which
26 occurred in the unincorporated area of such county.
27 A portion of the money paid into the Local Government Tax
28 Fund from the 1.25% rate imposed by the Retailers' Occupation
29 Tax Act upon the sale of any motor vehicle that is sold at
30 retail to a lessor for purposes of leasing under a lease
31 subject to the Automobile Leasing Occupation and Use Tax Act
32 shall be distributed as provided in this paragraph, less 3%
33 for the first 12 monthly distributions and 1% for each
34 monthly distribution thereafter, which sum shall be paid into
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1 the Tax Compliance and Administration Fund. The funds shall
2 be distributed to each municipality, based upon the sales
3 which occurred in that municipality. The remainder shall be
4 distributed to each county, based upon the sales which
5 occurred in the unincorporated area of such county.
6 For the purpose of determining allocation to the local
7 government unit, a retail sale by a producer of coal or other
8 mineral mined in Illinois is a sale at retail at the place
9 where the coal or other mineral mined in Illinois is
10 extracted from the earth. This paragraph does not apply to
11 coal or other mineral when it is delivered or shipped by the
12 seller to the purchaser at a point outside Illinois so that
13 the sale is exempt under the United States Constitution as a
14 sale in interstate or foreign commerce.
15 Whenever the Department determines that a refund of money
16 paid into the Local Government Tax Fund should be made to a
17 claimant instead of issuing a credit memorandum, the
18 Department shall notify the State Comptroller, who shall
19 cause the order to be drawn for the amount specified, and to
20 the person named, in such notification from the Department.
21 Such refund shall be paid by the State Treasurer out of the
22 Local Government Tax Fund.
23 On or before the 25th day of each calendar month, the
24 Department shall prepare and certify to the Comptroller the
25 disbursement of stated sums of money to named municipalities
26 and counties, the municipalities and counties to be those
27 entitled to distribution of taxes or penalties paid to the
28 Department during the second preceding calendar month. The
29 amount to be paid to each municipality or county shall be the
30 amount (not including credit memoranda) collected during the
31 second preceding calendar month by the Department and paid
32 into the Local Government Tax Fund, plus an amount the
33 Department determines is necessary to offset any amounts
34 which were erroneously paid to a different taxing body, and
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1 not including an amount equal to the amount of refunds made
2 during the second preceding calendar month by the Department,
3 and not including any amount which the Department determines
4 is necessary to offset any amounts which are payable to a
5 different taxing body but were erroneously paid to the
6 municipality or county. Within 10 days after receipt, by the
7 Comptroller, of the disbursement certification to the
8 municipalities and counties, provided for in this Section to
9 be given to the Comptroller by the Department, the
10 Comptroller shall cause the orders to be drawn for the
11 respective amounts in accordance with the directions
12 contained in such certification.
13 When certifying the amount of monthly disbursement to a
14 municipality or county under this Section, the Department
15 shall increase or decrease that amount by an amount necessary
16 to offset any misallocation of previous disbursements. The
17 offset amount shall be the amount erroneously disbursed
18 within the 6 months preceding the time a misallocation is
19 discovered.
20 The provisions directing the distributions from the
21 special fund in the State Treasury provided for in this
22 Section shall constitute an irrevocable and continuing
23 appropriation of all amounts as provided herein. The State
24 Treasurer and State Comptroller are hereby authorized to make
25 distributions as provided in this Section.
26 In construing any development, redevelopment, annexation,
27 preannexation or other lawful agreement in effect prior to
28 September 1, 1990, which describes or refers to receipts from
29 a county or municipal retailers' occupation tax, use tax or
30 service occupation tax which now cannot be imposed, such
31 description or reference shall be deemed to include the
32 replacement revenue for such abolished taxes, distributed
33 from the Local Government Tax Fund.
34 (Source: P.A. 90-491, eff. 1-1-98.)
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1 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
2 Sec. 6z-20. Of the money received from the 6.25% general
3 rate on sales subject to taxation under the Retailers'
4 Occupation Tax Act and Service Occupation Tax Act and paid
5 into the County and Mass Transit District Fund, distribution
6 to the Regional Transportation Authority tax fund, created
7 pursuant to Section 4.03 of the Regional Transportation
8 Authority Act, for deposit therein shall be made based upon
9 the retail sales occurring in a county having more than
10 3,000,000 inhabitants. The remainder shall be distributed to
11 each county having 3,000,000 or fewer inhabitants based upon
12 the retail sales occurring in each such county.
13 Of the money received from the 1.25% rate imposed by the
14 Retailers' Occupation Tax Act upon the sale of any motor
15 vehicle that is sold at retail to a lessor for purposes of
16 leasing under a lease subject to the Automobile Leasing
17 Occupation and Use Tax Act, and paid into the County and Mass
18 Transit District Fund shall be distributed as provided in
19 this paragraph, less 3% for the first 12 monthly
20 distributions and 1% for each monthly distribution
21 thereafter, which sum shall be paid into the Tax Compliance
22 and Administration Fund. Distribution to the Regional
23 Transportation Authority Tax Fund, created pursuant to
24 Section 4.03 of the Regional Transportation Authority Act,
25 for deposit therein shall be made based upon the retail sales
26 occurring in a county having more than 3,000,000 inhabitants.
27 The remainder shall be distributed to each county having
28 3,000,000 or fewer inhabitants based upon the retail sales
29 occurring in each such county.
30 For the purpose of determining allocation to the local
31 government unit, a retail sale by a producer of coal or other
32 mineral mined in Illinois is a sale at retail at the place
33 where the coal or other mineral mined in Illinois is
34 extracted from the earth. This paragraph does not apply to
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1 coal or other mineral when it is delivered or shipped by the
2 seller to the purchaser at a point outside Illinois so that
3 the sale is exempt under the United States Constitution as a
4 sale in interstate or foreign commerce.
5 Of the money received from the 6.25% general use tax rate
6 on tangible personal property which is purchased outside
7 Illinois at retail from a retailer and which is titled or
8 registered by any agency of this State's government and paid
9 into the County and Mass Transit District Fund, the amount
10 for which Illinois addresses for titling or registration
11 purposes are given as being in each county having more than
12 3,000,000 inhabitants shall be distributed into the Regional
13 Transportation Authority tax fund, created pursuant to
14 Section 4.03 of the Regional Transportation Authority Act.
15 The remainder of the money paid from such sales shall be
16 distributed to each county based on sales for which Illinois
17 addresses for titling or registration purposes are given as
18 being located in the county. Any money paid into the
19 Regional Transportation Authority Occupation and Use Tax
20 Replacement Fund from the County and Mass Transit District
21 Fund prior to January 14, 1991, which has not been paid to
22 the Authority prior to that date, shall be transferred to the
23 Regional Transportation Authority tax fund.
24 Of the money received from the 1.25% rate imposed under
25 the Use Tax Act upon the selling price of any motor vehicle
26 that is purchased outside of Illinois at retail by a lessor
27 for purposes of leasing under a lease subject to the
28 Automobile Leasing Occupation and Use Tax Act which is titled
29 or registered by any agency of this State's government and is
30 paid into the County and Mass Transit District Fund, shall be
31 distributed as provided in this paragraph, less 3% for the
32 first 12 monthly distributions and 1% for each monthly
33 distribution thereafter, which sum shall be paid into the Tax
34 Compliance and Administration Fund. The amount for which
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1 Illinois addresses for titling or registration purposes are
2 given as being in each county having more than 3,000,000
3 inhabitants shall be distributed into the Regional
4 Transportation Authority Tax Fund, created pursuant to
5 Section 4.03 of the Regional Transportation Authority Act.
6 The remainder of the moneys paid from such sales shall be
7 distributed to each county based on sales for which Illinois
8 addresses for titling or registration purposes are given as
9 being located in that county.
10 Whenever the Department determines that a refund of money
11 paid into the County and Mass Transit District Fund should be
12 made to a claimant instead of issuing a credit memorandum,
13 the Department shall notify the State Comptroller, who shall
14 cause the order to be drawn for the amount specified, and to
15 the person named, in such notification from the Department.
16 Such refund shall be paid by the State Treasurer out of the
17 County and Mass Transit District Fund.
18 On or before the 25th day of each calendar month, the
19 Department shall prepare and certify to the Comptroller the
20 disbursement of stated sums of money to the Regional
21 Transportation Authority and to named counties, the counties
22 to be those entitled to distribution, as hereinabove
23 provided, of taxes or penalties paid to the Department during
24 the second preceding calendar month. The amount to be paid
25 to the Regional Transportation Authority and each county
26 having 3,000,000 or fewer inhabitants shall be the amount
27 (not including credit memoranda) collected during the second
28 preceding calendar month by the Department and paid into the
29 County and Mass Transit District Fund, plus an amount the
30 Department determines is necessary to offset any amounts
31 which were erroneously paid to a different taxing body, and
32 not including an amount equal to the amount of refunds made
33 during the second preceding calendar month by the Department,
34 and not including any amount which the Department determines
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1 is necessary to offset any amounts which were payable to a
2 different taxing body but were erroneously paid to the
3 Regional Transportation Authority or county. Within 10 days
4 after receipt, by the Comptroller, of the disbursement
5 certification to the Regional Transportation Authority and
6 counties, provided for in this Section to be given to the
7 Comptroller by the Department, the Comptroller shall cause
8 the orders to be drawn for the respective amounts in
9 accordance with the directions contained in such
10 certification.
11 When certifying the amount of a monthly disbursement to
12 the Regional Transportation Authority or to a county under
13 this Section, the Department shall increase or decrease that
14 amount by an amount necessary to offset any misallocation of
15 previous disbursements. The offset amount shall be the
16 amount erroneously disbursed within the 6 months preceding
17 the time a misallocation is discovered.
18 The provisions directing the distributions from the
19 special fund in the State Treasury provided for in this
20 Section and from the Regional Transportation Authority tax
21 fund created by Section 4.03 of the Regional Transportation
22 Authority Act shall constitute an irrevocable and continuing
23 appropriation of all amounts as provided herein. The State
24 Treasurer and State Comptroller are hereby authorized to make
25 distributions as provided in this Section.
26 In construing any development, redevelopment, annexation,
27 preannexation or other lawful agreement in effect prior to
28 September 1, 1990, which describes or refers to receipts from
29 a county or municipal retailers' occupation tax, use tax or
30 service occupation tax which now cannot be imposed, such
31 description or reference shall be deemed to include the
32 replacement revenue for such abolished taxes, distributed
33 from the County and Mass Transit District Fund or Local
34 Government Distributive Fund, as the case may be.
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1 (Source: P.A. 90-491, eff. 1-1-98.)
2 Section 85. The Use Tax Act is amended by changing
3 Sections 1a, 3-10, and 9 as follows:
4 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
5 Sec. 1a. A person who is engaged in the business of
6 leasing or renting motor vehicles to others and who, in
7 connection with such business sells any used motor vehicle to
8 a purchaser for his use and not for the purpose of resale, is
9 a retailer engaged in the business of selling tangible
10 personal property at retail under this Act to the extent of
11 the value of the vehicle sold. For the purpose of this
12 Section, "motor vehicle" means any motor vehicle of the first
13 division, a motor vehicle of the second division which is a
14 self-contained motor vehicle designed or permanently
15 converted to provide living quarters for recreational,
16 camping or travel use, with direct walk through access to the
17 living quarters from the driver's seat, or a motor vehicle of
18 a second division which is of the van configuration designed
19 for the transportation of not less than 7 nor more than 16
20 passengers, as defined in Section 1-146 of the Illinois
21 Vehicle Code. For the purpose of this Section, "motor
22 vehicle" has the meaning prescribed in Section 1-157 of The
23 Illinois Vehicle Code, as now or hereafter amended. (Nothing
24 provided herein shall affect liability incurred under this
25 Act because of the use of such motor vehicles as a lessor.)
26 (Source: P.A. 80-598.)
27 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
28 Sec. 3-10. Rate of tax. Unless otherwise provided in
29 this Section, the tax imposed by this Act is at the rate of
30 6.25% of either the selling price or the fair market value,
31 if any, of the tangible personal property. In all cases
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1 where property functionally used or consumed is the same as
2 the property that was purchased at retail, then the tax is
3 imposed on the selling price of the property. In all cases
4 where property functionally used or consumed is a by-product
5 or waste product that has been refined, manufactured, or
6 produced from property purchased at retail, then the tax is
7 imposed on the lower of the fair market value, if any, of the
8 specific property so used in this State or on the selling
9 price of the property purchased at retail. For purposes of
10 this Section "fair market value" means the price at which
11 property would change hands between a willing buyer and a
12 willing seller, neither being under any compulsion to buy or
13 sell and both having reasonable knowledge of the relevant
14 facts. The fair market value shall be established by Illinois
15 sales by the taxpayer of the same property as that
16 functionally used or consumed, or if there are no such sales
17 by the taxpayer, then comparable sales or purchases of
18 property of like kind and character in Illinois.
19 With respect to gasohol, the tax imposed by this Act
20 applies to 70% of the proceeds of sales made on or after
21 January 1, 1990, and before July 1, 1999, and to 100% of the
22 proceeds of sales made thereafter, except that from July 1,
23 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
24 in this State during the 12 months beginning July 1 following
25 any calendar year for which the Department has determined
26 that the percentages in Section 10 of the Gasohol Fuels Tax
27 Abatement Act have not been met.
28 With respect to food for human consumption that is to be
29 consumed off the premises where it is sold (other than
30 alcoholic beverages, soft drinks, and food that has been
31 prepared for immediate consumption) and prescription and
32 nonprescription medicines, drugs, medical appliances,
33 modifications to a motor vehicle for the purpose of rendering
34 it usable by a disabled person, and insulin, urine testing
HB2333 Engrossed -17- LRB9007347KDpc
1 materials, syringes, and needles used by diabetics, for human
2 use, the tax is imposed at the rate of 1%. For the purposes
3 of this Section, the term "soft drinks" means any complete,
4 finished, ready-to-use, non-alcoholic drink, whether
5 carbonated or not, including but not limited to soda water,
6 cola, fruit juice, vegetable juice, carbonated water, and all
7 other preparations commonly known as soft drinks of whatever
8 kind or description that are contained in any closed or
9 sealed bottle, can, carton, or container, regardless of size.
10 "Soft drinks" does not include coffee, tea, non-carbonated
11 water, infant formula, milk or milk products as defined in
12 the Grade A Pasteurized Milk and Milk Products Act, or drinks
13 containing 50% or more natural fruit or vegetable juice.
14 Notwithstanding any other provisions of this Act, "food
15 for human consumption that is to be consumed off the premises
16 where it is sold" includes all food sold through a vending
17 machine, except soft drinks and food products that are
18 dispensed hot from a vending machine, regardless of the
19 location of the vending machine.
20 With respect to any motor vehicle (as the term "motor
21 vehicle" is defined in Section 1a of this Act) that is
22 purchased by a lessor for purposes of leasing under a lease
23 subject to the Automobile Leasing Occupation and Use Tax Act,
24 the tax is imposed at the rate of 1.25%.
25 With respect to any motor vehicle (as the term "motor
26 vehicle" is defined in Section 1a of this Act) that has been
27 leased by a lessor to a lessee under a lease that is subject
28 to the Automobile Leasing Occupation and Use Tax Act, and is
29 subsequently purchased by the lessee of such vehicle, the tax
30 is imposed at the rate of 5%.
31 If the property that is purchased at retail from a
32 retailer is acquired outside Illinois and used outside
33 Illinois before being brought to Illinois for use here and is
34 taxable under this Act, the "selling price" on which the tax
HB2333 Engrossed -18- LRB9007347KDpc
1 is computed shall be reduced by an amount that represents a
2 reasonable allowance for depreciation for the period of prior
3 out-of-state use.
4 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
5 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
6 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
7 (Text of Section before amendment by P.A. 90-491)
8 Sec. 9. Except as to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, each retailer required or
11 authorized to collect the tax imposed by this Act shall pay
12 to the Department the amount of such tax (except as otherwise
13 provided) at the time when he is required to file his return
14 for the period during which such tax was collected, less a
15 discount of 2.1% prior to January 1, 1990, and 1.75% on and
16 after January 1, 1990, or $5 per calendar year, whichever is
17 greater, which is allowed to reimburse the retailer for
18 expenses incurred in collecting the tax, keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. In the case of retailers
21 who report and pay the tax on a transaction by transaction
22 basis, as provided in this Section, such discount shall be
23 taken with each such tax remittance instead of when such
24 retailer files his periodic return. A retailer need not
25 remit that part of any tax collected by him to the extent
26 that he is required to remit and does remit the tax imposed
27 by the Retailers' Occupation Tax Act, with respect to the
28 sale of the same property.
29 Where such tangible personal property is sold under a
30 conditional sales contract, or under any other form of sale
31 wherein the payment of the principal sum, or a part thereof,
32 is extended beyond the close of the period for which the
33 return is filed, the retailer, in collecting the tax (except
HB2333 Engrossed -19- LRB9007347KDpc
1 as to motor vehicles, watercraft, aircraft, and trailers that
2 are required to be registered with an agency of this State),
3 may collect for each tax return period, only the tax
4 applicable to that part of the selling price actually
5 received during such tax return period.
6 Except as provided in this Section, on or before the
7 twentieth day of each calendar month, such retailer shall
8 file a return for the preceding calendar month. Such return
9 shall be filed on forms prescribed by the Department and
10 shall furnish such information as the Department may
11 reasonably require.
12 The Department may require returns to be filed on a
13 quarterly basis. If so required, a return for each calendar
14 quarter shall be filed on or before the twentieth day of the
15 calendar month following the end of such calendar quarter.
16 The taxpayer shall also file a return with the Department for
17 each of the first two months of each calendar quarter, on or
18 before the twentieth day of the following calendar month,
19 stating:
20 1. The name of the seller;
21 2. The address of the principal place of business
22 from which he engages in the business of selling tangible
23 personal property at retail in this State;
24 3. The total amount of taxable receipts received by
25 him during the preceding calendar month from sales of
26 tangible personal property by him during such preceding
27 calendar month, including receipts from charge and time
28 sales, but less all deductions allowed by law;
29 4. The amount of credit provided in Section 2d of
30 this Act;
31 5. The amount of tax due;
32 5-5. The signature of the taxpayer; and
33 6. Such other reasonable information as the
34 Department may require.
HB2333 Engrossed -20- LRB9007347KDpc
1 If a taxpayer fails to sign a return within 30 days after
2 the proper notice and demand for signature by the Department,
3 the return shall be considered valid and any amount shown to
4 be due on the return shall be deemed assessed.
5 Beginning October 1, 1993, a taxpayer who has an average
6 monthly tax liability of $150,000 or more shall make all
7 payments required by rules of the Department by electronic
8 funds transfer. Beginning October 1, 1994, a taxpayer who has
9 an average monthly tax liability of $100,000 or more shall
10 make all payments required by rules of the Department by
11 electronic funds transfer. Beginning October 1, 1995, a
12 taxpayer who has an average monthly tax liability of $50,000
13 or more shall make all payments required by rules of the
14 Department by electronic funds transfer. The term "average
15 monthly tax liability" means the sum of the taxpayer's
16 liabilities under this Act, and under all other State and
17 local occupation and use tax laws administered by the
18 Department, for the immediately preceding calendar year
19 divided by 12.
20 Before August 1 of each year beginning in 1993, the
21 Department shall notify all taxpayers required to make
22 payments by electronic funds transfer. All taxpayers required
23 to make payments by electronic funds transfer shall make
24 those payments for a minimum of one year beginning on October
25 1.
26 Any taxpayer not required to make payments by electronic
27 funds transfer may make payments by electronic funds transfer
28 with the permission of the Department.
29 All taxpayers required to make payment by electronic
30 funds transfer and any taxpayers authorized to voluntarily
31 make payments by electronic funds transfer shall make those
32 payments in the manner authorized by the Department.
33 The Department shall adopt such rules as are necessary to
34 effectuate a program of electronic funds transfer and the
HB2333 Engrossed -21- LRB9007347KDpc
1 requirements of this Section.
2 If the taxpayer's average monthly tax liability to the
3 Department under this Act, the Retailers' Occupation Tax Act,
4 the Service Occupation Tax Act, the Service Use Tax Act was
5 $10,000 or more during the preceding 4 complete calendar
6 quarters, he shall file a return with the Department each
7 month by the 20th day of the month next following the month
8 during which such tax liability is incurred and shall make
9 payments to the Department on or before the 7th, 15th, 22nd
10 and last day of the month during which such liability is
11 incurred. If the month during which such tax liability is
12 incurred began prior to January 1, 1985, each payment shall
13 be in an amount equal to 1/4 of the taxpayer's actual
14 liability for the month or an amount set by the Department
15 not to exceed 1/4 of the average monthly liability of the
16 taxpayer to the Department for the preceding 4 complete
17 calendar quarters (excluding the month of highest liability
18 and the month of lowest liability in such 4 quarter period).
19 If the month during which such tax liability is incurred
20 begins on or after January 1, 1985, and prior to January 1,
21 1987, each payment shall be in an amount equal to 22.5% of
22 the taxpayer's actual liability for the month or 27.5% of the
23 taxpayer's liability for the same calendar month of the
24 preceding year. If the month during which such tax liability
25 is incurred begins on or after January 1, 1987, and prior to
26 January 1, 1988, each payment shall be in an amount equal to
27 22.5% of the taxpayer's actual liability for the month or
28 26.25% of the taxpayer's liability for the same calendar
29 month of the preceding year. If the month during which such
30 tax liability is incurred begins on or after January 1, 1988,
31 and prior to January 1, 1989, or begins on or after January
32 1, 1996, each payment shall be in an amount equal to 22.5% of
33 the taxpayer's actual liability for the month or 25% of the
34 taxpayer's liability for the same calendar month of the
HB2333 Engrossed -22- LRB9007347KDpc
1 preceding year. If the month during which such tax liability
2 is incurred begins on or after January 1, 1989, and prior to
3 January 1, 1996, each payment shall be in an amount equal to
4 22.5% of the taxpayer's actual liability for the month or 25%
5 of the taxpayer's liability for the same calendar month of
6 the preceding year or 100% of the taxpayer's actual liability
7 for the quarter monthly reporting period. The amount of such
8 quarter monthly payments shall be credited against the final
9 tax liability of the taxpayer's return for that month. Once
10 applicable, the requirement of the making of quarter monthly
11 payments to the Department shall continue until such
12 taxpayer's average monthly liability to the Department during
13 the preceding 4 complete calendar quarters (excluding the
14 month of highest liability and the month of lowest liability)
15 is less than $9,000, or until such taxpayer's average monthly
16 liability to the Department as computed for each calendar
17 quarter of the 4 preceding complete calendar quarter period
18 is less than $10,000. However, if a taxpayer can show the
19 Department that a substantial change in the taxpayer's
20 business has occurred which causes the taxpayer to anticipate
21 that his average monthly tax liability for the reasonably
22 foreseeable future will fall below $10,000, then such
23 taxpayer may petition the Department for change in such
24 taxpayer's reporting status. The Department shall change
25 such taxpayer's reporting status unless it finds that such
26 change is seasonal in nature and not likely to be long term.
27 If any such quarter monthly payment is not paid at the time
28 or in the amount required by this Section, then the
29 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
30 by 2.1% or 1.75%, as the case may be, of the difference
31 between the minimum amount due and the amount of such quarter
32 monthly payment actually and timely paid and the taxpayer
33 shall be liable for penalties and interest on such
34 difference, except insofar as the taxpayer has previously
HB2333 Engrossed -23- LRB9007347KDpc
1 made payments for that month to the Department in excess of
2 the minimum payments previously due as provided in this
3 Section. The Department shall make reasonable rules and
4 regulations to govern the quarter monthly payment amount and
5 quarter monthly payment dates for taxpayers who file on other
6 than a calendar monthly basis.
7 If any such payment provided for in this Section exceeds
8 the taxpayer's liabilities under this Act, the Retailers'
9 Occupation Tax Act, the Service Occupation Tax Act and the
10 Service Use Tax Act, as shown by an original monthly return,
11 the Department shall issue to the taxpayer a credit
12 memorandum no later than 30 days after the date of payment,
13 which memorandum may be submitted by the taxpayer to the
14 Department in payment of tax liability subsequently to be
15 remitted by the taxpayer to the Department or be assigned by
16 the taxpayer to a similar taxpayer under this Act, the
17 Retailers' Occupation Tax Act, the Service Occupation Tax Act
18 or the Service Use Tax Act, in accordance with reasonable
19 rules and regulations to be prescribed by the Department,
20 except that if such excess payment is shown on an original
21 monthly return and is made after December 31, 1986, no credit
22 memorandum shall be issued, unless requested by the taxpayer.
23 If no such request is made, the taxpayer may credit such
24 excess payment against tax liability subsequently to be
25 remitted by the taxpayer to the Department under this Act,
26 the Retailers' Occupation Tax Act, the Service Occupation Tax
27 Act or the Service Use Tax Act, in accordance with reasonable
28 rules and regulations prescribed by the Department. If the
29 Department subsequently determines that all or any part of
30 the credit taken was not actually due to the taxpayer, the
31 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
32 by 2.1% or 1.75% of the difference between the credit taken
33 and that actually due, and the taxpayer shall be liable for
34 penalties and interest on such difference.
HB2333 Engrossed -24- LRB9007347KDpc
1 If the retailer is otherwise required to file a monthly
2 return and if the retailer's average monthly tax liability to
3 the Department does not exceed $200, the Department may
4 authorize his returns to be filed on a quarter annual basis,
5 with the return for January, February, and March of a given
6 year being due by April 20 of such year; with the return for
7 April, May and June of a given year being due by July 20 of
8 such year; with the return for July, August and September of
9 a given year being due by October 20 of such year, and with
10 the return for October, November and December of a given year
11 being due by January 20 of the following year.
12 If the retailer is otherwise required to file a monthly
13 or quarterly return and if the retailer's average monthly tax
14 liability to the Department does not exceed $50, the
15 Department may authorize his returns to be filed on an annual
16 basis, with the return for a given year being due by January
17 20 of the following year.
18 Such quarter annual and annual returns, as to form and
19 substance, shall be subject to the same requirements as
20 monthly returns.
21 Notwithstanding any other provision in this Act
22 concerning the time within which a retailer may file his
23 return, in the case of any retailer who ceases to engage in a
24 kind of business which makes him responsible for filing
25 returns under this Act, such retailer shall file a final
26 return under this Act with the Department not more than one
27 month after discontinuing such business.
28 In addition, with respect to motor vehicles, watercraft,
29 aircraft, and trailers that are required to be registered
30 with an agency of this State, every retailer selling this
31 kind of tangible personal property shall file, with the
32 Department, upon a form to be prescribed and supplied by the
33 Department, a separate return for each such item of tangible
34 personal property which the retailer sells, except that
HB2333 Engrossed -25- LRB9007347KDpc
1 where, in the same transaction, a retailer of aircraft,
2 watercraft, motor vehicles or trailers transfers more than
3 one aircraft, watercraft, motor vehicle or trailer to another
4 aircraft, watercraft, motor vehicle or trailer retailer for
5 the purpose of resale, that seller for resale may report the
6 transfer of all the aircraft, watercraft, motor vehicles or
7 trailers involved in that transaction to the Department on
8 the same uniform invoice-transaction reporting return form.
9 For purposes of this Section, "watercraft" means a Class 2,
10 Class 3, or Class 4 watercraft as defined in Section 3-2 of
11 the Boat Registration and Safety Act, a personal watercraft,
12 or any boat equipped with an inboard motor.
13 The transaction reporting return in the case of motor
14 vehicles or trailers that are required to be registered with
15 an agency of this State, shall be the same document as the
16 Uniform Invoice referred to in Section 5-402 of the Illinois
17 Vehicle Code and must show the name and address of the
18 seller; the name and address of the purchaser; the amount of
19 the selling price including the amount allowed by the
20 retailer for traded-in property, if any; the amount allowed
21 by the retailer for the traded-in tangible personal property,
22 if any, to the extent to which Section 2 of this Act allows
23 an exemption for the value of traded-in property; the balance
24 payable after deducting such trade-in allowance from the
25 total selling price; the amount of tax due from the retailer
26 with respect to such transaction; the amount of tax collected
27 from the purchaser by the retailer on such transaction (or
28 satisfactory evidence that such tax is not due in that
29 particular instance, if that is claimed to be the fact); the
30 place and date of the sale; a sufficient identification of
31 the property sold; such other information as is required in
32 Section 5-402 of the Illinois Vehicle Code, and such other
33 information as the Department may reasonably require.
34 The transaction reporting return in the case of
HB2333 Engrossed -26- LRB9007347KDpc
1 watercraft and aircraft 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 2 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, and such other information as the
16 Department may reasonably require.
17 Such transaction reporting return shall be filed not
18 later than 20 days after the date of delivery of the item
19 that is being sold, but may be filed by the retailer at any
20 time sooner than that if he chooses to do so. The
21 transaction reporting return and tax remittance or proof of
22 exemption from the tax that is imposed by this Act may be
23 transmitted to the Department by way of the State agency with
24 which, or State officer with whom, the tangible personal
25 property must be titled or registered (if titling or
26 registration is required) if the Department and such agency
27 or State officer determine that this procedure will expedite
28 the processing of applications for title or registration.
29 With each such transaction reporting return, the retailer
30 shall remit the proper amount of tax due (or shall submit
31 satisfactory evidence that the sale is not taxable if that is
32 the case), to the Department or its agents, whereupon the
33 Department shall issue, in the purchaser's name, a tax
34 receipt (or a certificate of exemption if the Department is
HB2333 Engrossed -27- LRB9007347KDpc
1 satisfied that the particular sale is tax exempt) which such
2 purchaser may submit to the agency with which, or State
3 officer with whom, he must title or register the tangible
4 personal property that is involved (if titling or
5 registration is required) in support of such purchaser's
6 application for an Illinois certificate or other evidence of
7 title or registration to such tangible personal property.
8 No retailer's failure or refusal to remit tax under this
9 Act precludes a user, who has paid the proper tax to the
10 retailer, from obtaining his certificate of title or other
11 evidence of title or registration (if titling or registration
12 is required) upon satisfying the Department that such user
13 has paid the proper tax (if tax is due) to the retailer. The
14 Department shall adopt appropriate rules to carry out the
15 mandate of this paragraph.
16 If the user who would otherwise pay tax to the retailer
17 wants the transaction reporting return filed and the payment
18 of tax or proof of exemption made to the Department before
19 the retailer is willing to take these actions and such user
20 has not paid the tax to the retailer, such user may certify
21 to the fact of such delay by the retailer, and may (upon the
22 Department being satisfied of the truth of such
23 certification) transmit the information required by the
24 transaction reporting return and the remittance for tax or
25 proof of exemption directly to the Department and obtain his
26 tax receipt or exemption determination, in which event the
27 transaction reporting return and tax remittance (if a tax
28 payment was required) shall be credited by the Department to
29 the proper retailer's account with the Department, but
30 without the 2.1% or 1.75% discount provided for in this
31 Section being allowed. When the user pays the tax directly
32 to the Department, he shall pay the tax in the same amount
33 and in the same form in which it would be remitted if the tax
34 had been remitted to the Department by the retailer.
HB2333 Engrossed -28- LRB9007347KDpc
1 Where a retailer collects the tax with respect to the
2 selling price of tangible personal property which he sells
3 and the purchaser thereafter returns such tangible personal
4 property and the retailer refunds the selling price thereof
5 to the purchaser, such retailer shall also refund, to the
6 purchaser, the tax so collected from the purchaser. When
7 filing his return for the period in which he refunds such tax
8 to the purchaser, the retailer may deduct the amount of the
9 tax so refunded by him to the purchaser from any other use
10 tax which such retailer may be required to pay or remit to
11 the Department, as shown by such return, if the amount of the
12 tax to be deducted was previously remitted to the Department
13 by such retailer. If the retailer has not previously
14 remitted the amount of such tax to the Department, he is
15 entitled to no deduction under this Act upon refunding such
16 tax to the purchaser.
17 Any retailer filing a return under this Section shall
18 also include (for the purpose of paying tax thereon) the
19 total tax covered by such return upon the selling price of
20 tangible personal property purchased by him at retail from a
21 retailer, but as to which the tax imposed by this Act was not
22 collected from the retailer filing such return, and such
23 retailer shall remit the amount of such tax to the Department
24 when filing such return.
25 If experience indicates such action to be practicable,
26 the Department may prescribe and furnish a combination or
27 joint return which will enable retailers, who are required to
28 file returns hereunder and also under the Retailers'
29 Occupation Tax Act, to furnish all the return information
30 required by both Acts on the one form.
31 Where the retailer has more than one business registered
32 with the Department under separate registration under this
33 Act, such retailer may not file each return that is due as a
34 single return covering all such registered businesses, but
HB2333 Engrossed -29- LRB9007347KDpc
1 shall file separate returns for each such registered
2 business.
3 Beginning January 1, 1990, each month the Department
4 shall pay into the State and Local Sales Tax Reform Fund, a
5 special fund in the State Treasury which is hereby created,
6 the net revenue realized for the preceding month from the 1%
7 tax on sales of food for human consumption which is to be
8 consumed off the premises where it is sold (other than
9 alcoholic beverages, soft drinks and food which has been
10 prepared for immediate consumption) and prescription and
11 nonprescription medicines, drugs, medical appliances and
12 insulin, urine testing materials, syringes and needles used
13 by diabetics.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the County and Mass Transit District Fund 4%
16 of the net revenue realized for the preceding month from the
17 6.25% general rate on the selling price of tangible personal
18 property which is purchased outside Illinois at retail from a
19 retailer and which is titled or registered by an agency of
20 this State's government.
21 Each month the Department shall pay into the County and
22 Mass Transit District Fund 20% the net revenue realized for
23 the preceding month from the 1.25% rate imposed upon the
24 selling price of any motor vehicle that is purchased outside
25 Illinois at retail by a lessor for purposes of leasing under
26 a lease subject to the Automobile Leasing Occupation and Use
27 Tax Act and which is titled or registered by an agency of
28 this State's government.
29 Beginning January 1, 1990, each month the Department
30 shall pay into the State and Local Sales Tax Reform Fund, a
31 special fund in the State Treasury, 20% of the net revenue
32 realized for the preceding month from the 6.25% general rate
33 on the selling price of tangible personal property, other
34 than tangible personal property which is purchased outside
HB2333 Engrossed -30- LRB9007347KDpc
1 Illinois at retail from a retailer and which is titled or
2 registered by an agency of this State's government.
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 which is purchased outside Illinois at retail from a
8 retailer and which is titled or registered by an agency of
9 this State's government.
10 Each month the Department shall pay into the Local
11 Government Tax Fund 80% of the net revenue realized for the
12 preceding month from the 1.25% rate imposed upon the selling
13 price of any motor vehicle that is purchased outside Illinois
14 at retail by a lessor for purposes of leasing under a lease
15 subject to the Automobile Leasing Occupation and Use Tax Act
16 and which is titled or registered by an agency of this
17 State's government.
18 Of the remainder of the moneys received by the Department
19 pursuant to this Act, and including all moneys received by
20 the Department under Section 20 of the Automobile Leasing
21 Occupation and Use Tax Act and including all of the moneys
22 received pursuant to the 5% rate imposed upon the selling
23 price of any motor vehicle that is purchased from lessors by
24 lessees of such vehicles in connection with a lease that was
25 subject to the Automobile Leasing Occupation and Use Tax Act
26 Of the remainder of the moneys received by the Department
27 pursuant to this Act, (a) 1.75% thereof shall be paid into
28 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
29 and on and after July 1, 1989, 3.8% thereof shall be paid
30 into the Build Illinois Fund; provided, however, that if in
31 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
32 as the case may be, of the moneys received by the Department
33 and required to be paid into the Build Illinois Fund pursuant
34 to Section 3 of the Retailers' Occupation Tax Act, Section 9
HB2333 Engrossed -31- LRB9007347KDpc
1 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
2 Section 9 of the Service Occupation Tax Act, such Acts being
3 hereinafter called the "Tax Acts" and such aggregate of 2.2%
4 or 3.8%, as the case may be, of moneys being hereinafter
5 called the "Tax Act Amount", and (2) the amount transferred
6 to the Build Illinois Fund from the State and Local Sales Tax
7 Reform Fund shall be less than the Annual Specified Amount
8 (as defined in Section 3 of the Retailers' Occupation Tax
9 Act), an amount equal to the difference shall be immediately
10 paid into the Build Illinois Fund from other moneys received
11 by the Department pursuant to the Tax Acts; and further
12 provided, that if on the last business day of any month the
13 sum of (1) the Tax Act Amount required to be deposited into
14 the Build Illinois Bond Account in the Build Illinois Fund
15 during such month and (2) the amount transferred during such
16 month to the Build Illinois Fund from the State and Local
17 Sales Tax Reform Fund shall have been less than 1/12 of the
18 Annual Specified Amount, an amount equal to the difference
19 shall be immediately paid into the Build Illinois Fund from
20 other moneys received by the Department pursuant to the Tax
21 Acts; and, further provided, that in no event shall the
22 payments required under the preceding proviso result in
23 aggregate payments into the Build Illinois Fund pursuant to
24 this clause (b) for any fiscal year in excess of the greater
25 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
26 for such fiscal year; and, further provided, that the amounts
27 payable into the Build Illinois Fund under this clause (b)
28 shall be payable only until such time as the aggregate amount
29 on deposit under each trust indenture securing Bonds issued
30 and outstanding pursuant to the Build Illinois Bond Act is
31 sufficient, taking into account any future investment income,
32 to fully provide, in accordance with such indenture, for the
33 defeasance of or the payment of the principal of, premium, if
34 any, and interest on the Bonds secured by such indenture and
HB2333 Engrossed -32- LRB9007347KDpc
1 on any Bonds expected to be issued thereafter and all fees
2 and costs payable with respect thereto, all as certified by
3 the 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 the
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 preceding sentence and shall reduce the amount
18 otherwise payable for such fiscal year pursuant to clause (b)
19 of the preceding sentence. The moneys received by the
20 Department pursuant to this Act and required to be deposited
21 into the Build Illinois Fund are subject to the pledge, claim
22 and 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 the sums designated
31 as "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
HB2333 Engrossed -33- LRB9007347KDpc
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
HB2333 Engrossed -34- LRB9007347KDpc
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 .4% of the net revenue
7 realized for the preceding month from the 5% general rate, or
8 .4% of 80% of the net revenue realized for the preceding
9 month from the 6.25% general rate, as the case may be, on the
10 selling price of tangible personal property which amount
11 shall, subject to appropriation, be distributed as provided
12 in Section 2 of the State Revenue Sharing Act. No payments or
13 distributions pursuant to this paragraph shall be made if the
14 tax imposed by this Act on photoprocessing products is
15 declared unconstitutional, or if the proceeds from such tax
16 are unavailable for distribution because of litigation.
17 Subject to payment of amounts into the Build Illinois
18 Fund, the McCormick Place Expansion Project Fund, and the
19 Local Government Distributive Fund pursuant 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 As soon as possible after the first day of each month,
33 upon certification of the Department of Revenue, the
34 Comptroller shall order transferred and the Treasurer shall
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1 transfer from the General Revenue Fund to the Motor Fuel Tax
2 Fund an amount equal to 1.7% of 80% of the net revenue
3 realized under this Act for the second preceding month;
4 except that this transfer shall not be made for the months
5 February through June of 1992.
6 Net revenue realized for a month shall be the revenue
7 collected by the State pursuant to this Act, less the amount
8 paid out during that month as refunds to taxpayers for
9 overpayment of liability.
10 For greater simplicity of administration, manufacturers,
11 importers and wholesalers whose products are sold at retail
12 in Illinois by numerous retailers, and who wish to do so, may
13 assume the responsibility for accounting and paying to the
14 Department all tax accruing under this Act with respect to
15 such sales, if the retailers who are affected do not make
16 written objection to the Department to this arrangement.
17 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
18 (Text of Section after amendment by P.A. 90-491)
19 Sec. 9. Except as to motor vehicles, watercraft,
20 aircraft, and trailers that are required to be registered
21 with an agency of this State, each retailer required or
22 authorized to collect the tax imposed by this Act shall pay
23 to the Department the amount of such tax (except as otherwise
24 provided) at the time when he is required to file his return
25 for the period during which such tax was collected, less a
26 discount of 2.1% prior to January 1, 1990, and 1.75% on and
27 after January 1, 1990, or $5 per calendar year, whichever is
28 greater, which is allowed to reimburse the retailer for
29 expenses incurred in collecting the tax, keeping records,
30 preparing and filing returns, remitting the tax and supplying
31 data to the Department on request. In the case of retailers
32 who report and pay the tax on a transaction by transaction
33 basis, as provided in this Section, such discount shall be
34 taken with each such tax remittance instead of when such
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1 retailer files his periodic return. A retailer need not
2 remit that part of any tax collected by him to the extent
3 that he is required to remit and does remit the tax imposed
4 by the Retailers' Occupation Tax Act, with respect to the
5 sale of the same property.
6 Where such tangible personal property is sold under a
7 conditional sales contract, or under any other form of sale
8 wherein the payment of the principal sum, or a part thereof,
9 is extended beyond the close of the period for which the
10 return is filed, the retailer, in collecting the tax (except
11 as to motor vehicles, watercraft, aircraft, and trailers that
12 are required to be registered with an agency of this State),
13 may collect for each tax return period, only the tax
14 applicable to that part of the selling price actually
15 received during such tax return period.
16 Except as provided in this Section, on or before the
17 twentieth day of each calendar month, such retailer shall
18 file a return for the preceding calendar month. Such return
19 shall be filed on forms prescribed by the Department and
20 shall furnish such information as the Department may
21 reasonably require.
22 The Department may require returns to be filed on a
23 quarterly basis. If so required, a return for each calendar
24 quarter shall be filed on or before the twentieth day of the
25 calendar month following the end of such calendar quarter.
26 The taxpayer shall also file a return with the Department for
27 each of the first two months of each calendar quarter, on or
28 before the twentieth day of the following calendar month,
29 stating:
30 1. The name of the seller;
31 2. The address of the principal place of business
32 from which he engages in the business of selling tangible
33 personal property at retail in this State;
34 3. The total amount of taxable receipts received by
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1 him during the preceding calendar month from sales of
2 tangible personal property by him during such preceding
3 calendar month, including receipts from charge and time
4 sales, but less all deductions allowed by law;
5 4. The amount of credit provided in Section 2d of
6 this Act;
7 5. The amount of tax due;
8 5-5. The signature of the taxpayer; and
9 6. Such other reasonable information as the
10 Department may require.
11 If a taxpayer fails to sign a return within 30 days after
12 the proper notice and demand for signature by the Department,
13 the return shall be considered valid and any amount shown to
14 be due on the return shall be deemed assessed.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who has
19 an average monthly tax liability of $100,000 or more shall
20 make all payments required by rules of the Department by
21 electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. The term "average
25 monthly tax liability" means the sum of the taxpayer's
26 liabilities under this Act, and under all other State and
27 local occupation and use tax laws administered by the
28 Department, for the immediately preceding calendar year
29 divided by 12.
30 Before August 1 of each year beginning in 1993, the
31 Department shall notify all taxpayers required to make
32 payments by electronic funds transfer. All taxpayers required
33 to make payments by electronic funds transfer shall make
34 those payments for a minimum of one year beginning on October
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1 1.
2 Any taxpayer not required to make payments by electronic
3 funds transfer may make payments by electronic funds transfer
4 with the permission of the Department.
5 All taxpayers required to make payment by electronic
6 funds transfer and any taxpayers authorized to voluntarily
7 make payments by electronic funds transfer shall make those
8 payments in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10 effectuate a program of electronic funds transfer and the
11 requirements of this Section.
12 If the taxpayer's average monthly tax liability to the
13 Department under this Act, the Retailers' Occupation Tax Act,
14 the Service Occupation Tax Act, the Service Use Tax Act was
15 $10,000 or more during the preceding 4 complete calendar
16 quarters, he shall file a return with the Department each
17 month by the 20th day of the month next following the month
18 during which such tax liability is incurred and shall make
19 payments to the Department on or before the 7th, 15th, 22nd
20 and last day of the month during which such liability is
21 incurred. If the month during which such tax liability is
22 incurred began prior to January 1, 1985, each payment shall
23 be in an amount equal to 1/4 of the taxpayer's actual
24 liability for the month or an amount set by the Department
25 not to exceed 1/4 of the average monthly liability of the
26 taxpayer to the Department for the preceding 4 complete
27 calendar quarters (excluding the month of highest liability
28 and the month of lowest liability in such 4 quarter period).
29 If the month during which such tax liability is incurred
30 begins on or after January 1, 1985, and prior to January 1,
31 1987, each payment shall be in an amount equal to 22.5% of
32 the taxpayer's actual liability for the month or 27.5% of the
33 taxpayer's liability for the same calendar month of the
34 preceding year. If the month during which such tax liability
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1 is incurred begins on or after January 1, 1987, and prior to
2 January 1, 1988, each payment shall be in an amount equal to
3 22.5% of the taxpayer's actual liability for the month or
4 26.25% of the taxpayer's liability for the same calendar
5 month of the preceding year. If the month during which such
6 tax liability is incurred begins on or after January 1, 1988,
7 and prior to January 1, 1989, or begins on or after January
8 1, 1996, each payment shall be in an amount equal to 22.5% of
9 the taxpayer's actual liability for the month or 25% of the
10 taxpayer's liability for the same calendar month of the
11 preceding year. If the month during which such tax liability
12 is incurred begins on or after January 1, 1989, and prior to
13 January 1, 1996, each payment shall be in an amount equal to
14 22.5% of the taxpayer's actual liability for the month or 25%
15 of the taxpayer's liability for the same calendar month of
16 the preceding year or 100% of the taxpayer's actual liability
17 for the quarter monthly reporting period. The amount of such
18 quarter monthly payments shall be credited against the final
19 tax liability of the taxpayer's return for that month. Once
20 applicable, the requirement of the making of quarter monthly
21 payments to the Department shall continue until such
22 taxpayer's average monthly liability to the Department during
23 the preceding 4 complete calendar quarters (excluding the
24 month of highest liability and the month of lowest liability)
25 is less than $9,000, or until such taxpayer's average monthly
26 liability to the Department as computed for each calendar
27 quarter of the 4 preceding complete calendar quarter period
28 is less than $10,000. However, if a taxpayer can show the
29 Department that a substantial change in the taxpayer's
30 business has occurred which causes the taxpayer to anticipate
31 that his average monthly tax liability for the reasonably
32 foreseeable future will fall below $10,000, then such
33 taxpayer may petition the Department for change in such
34 taxpayer's reporting status. The Department shall change
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1 such taxpayer's reporting status unless it finds that such
2 change is seasonal in nature and not likely to be long term.
3 If any such quarter monthly payment is not paid at the time
4 or in the amount required by this Section, then the taxpayer
5 shall be liable for penalties and interest on the difference
6 between the minimum amount due and the amount of such quarter
7 monthly payment actually and timely paid, except insofar as
8 the taxpayer has previously made payments for that month to
9 the Department in excess of the minimum payments previously
10 due as provided in this Section. The Department shall make
11 reasonable rules and regulations to govern the quarter
12 monthly payment amount and quarter monthly payment dates for
13 taxpayers who file on other than a calendar monthly basis.
14 If any such payment provided for in this Section exceeds
15 the taxpayer's liabilities under this Act, the Retailers'
16 Occupation Tax Act, the Service Occupation Tax Act and the
17 Service Use Tax Act, as shown by an original monthly return,
18 the Department shall issue to the taxpayer a credit
19 memorandum no later than 30 days after the date of payment,
20 which memorandum may be submitted by the taxpayer to the
21 Department in payment of tax liability subsequently to be
22 remitted by the taxpayer to the Department or be assigned by
23 the taxpayer to a similar taxpayer under this Act, the
24 Retailers' Occupation Tax Act, the Service Occupation Tax Act
25 or the Service Use Tax Act, in accordance with reasonable
26 rules and regulations to be prescribed by the Department,
27 except that if such excess payment is shown on an original
28 monthly return and is made after December 31, 1986, no credit
29 memorandum shall be issued, unless requested by the taxpayer.
30 If no such request is made, the taxpayer may credit such
31 excess payment against tax liability subsequently to be
32 remitted by the taxpayer to the Department under this Act,
33 the Retailers' Occupation Tax Act, the Service Occupation Tax
34 Act or the Service Use Tax Act, in accordance with reasonable
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1 rules and regulations prescribed by the Department. If the
2 Department subsequently determines that all or any part of
3 the credit taken was not actually due to the taxpayer, the
4 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
5 by 2.1% or 1.75% of the difference between the credit taken
6 and that actually due, and the taxpayer shall be liable for
7 penalties and interest on such difference.
8 If the retailer is otherwise required to file a monthly
9 return and if the retailer's average monthly tax liability to
10 the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February, and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the retailer is otherwise required to file a monthly
20 or quarterly return and if the retailer's average monthly tax
21 liability to the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a retailer may file his
30 return, in the case of any retailer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such retailer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
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1 In addition, with respect to motor vehicles, watercraft,
2 aircraft, and trailers that are required to be registered
3 with an agency of this State, every retailer selling this
4 kind of tangible personal property shall file, with the
5 Department, upon a form to be prescribed and supplied by the
6 Department, a separate return for each such item of tangible
7 personal property which the retailer sells, except that
8 where, in the same transaction, a retailer of aircraft,
9 watercraft, motor vehicles or trailers transfers more than
10 one aircraft, watercraft, motor vehicle or trailer to another
11 aircraft, watercraft, motor vehicle or trailer retailer for
12 the purpose of resale, that seller for resale may report the
13 transfer of all the aircraft, watercraft, motor vehicles or
14 trailers involved in that transaction to the Department on
15 the same uniform invoice-transaction reporting return form.
16 For purposes of this Section, "watercraft" means a Class 2,
17 Class 3, or Class 4 watercraft as defined in Section 3-2 of
18 the Boat Registration and Safety Act, a personal watercraft,
19 or any boat equipped with an inboard motor.
20 The transaction reporting return in the case of motor
21 vehicles or trailers that are required to be registered with
22 an agency of this State, shall be the same document as the
23 Uniform Invoice referred to in Section 5-402 of the Illinois
24 Vehicle Code and must show the name and address of the
25 seller; the name and address of the purchaser; the amount of
26 the selling price including the amount allowed by the
27 retailer for traded-in property, if any; the amount allowed
28 by the retailer for the traded-in tangible personal property,
29 if any, to the extent to which Section 2 of this Act allows
30 an exemption for the value of traded-in property; the balance
31 payable after deducting such trade-in allowance from the
32 total selling price; the amount of tax due from the retailer
33 with respect to such transaction; the amount of tax collected
34 from the purchaser by the retailer on such transaction (or
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1 satisfactory evidence that such tax is not due in that
2 particular instance, if that is claimed to be the fact); the
3 place and date of the sale; a sufficient identification of
4 the property sold; such other information as is required in
5 Section 5-402 of the Illinois Vehicle Code, and such other
6 information as the Department may reasonably require.
7 The transaction reporting return in the case of
8 watercraft and aircraft must show the name and address of the
9 seller; the name and address of the purchaser; the amount of
10 the selling price including the amount allowed by the
11 retailer for traded-in property, if any; the amount allowed
12 by the retailer for the traded-in tangible personal property,
13 if any, to the extent to which Section 2 of this Act allows
14 an exemption for the value of traded-in property; the balance
15 payable after deducting such trade-in allowance from the
16 total selling price; the amount of tax due from the retailer
17 with respect to such transaction; the amount of tax collected
18 from the purchaser by the retailer on such transaction (or
19 satisfactory evidence that such tax is not due in that
20 particular instance, if that is claimed to be the fact); the
21 place and date of the sale, a sufficient identification of
22 the property sold, and such other information as the
23 Department may reasonably require.
24 Such transaction reporting return shall be filed not
25 later than 20 days after the date of delivery of the item
26 that is being sold, but may be filed by the retailer at any
27 time sooner than that if he chooses to do so. The
28 transaction reporting return and tax remittance or proof of
29 exemption from the tax that is imposed by this Act may be
30 transmitted to the Department by way of the State agency with
31 which, or State officer with whom, the tangible personal
32 property must be titled or registered (if titling or
33 registration is required) if the Department and such agency
34 or State officer determine that this procedure will expedite
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1 the processing of applications for title or registration.
2 With each such transaction reporting return, the retailer
3 shall remit the proper amount of tax due (or shall submit
4 satisfactory evidence that the sale is not taxable if that is
5 the case), to the Department or its agents, whereupon the
6 Department shall issue, in the purchaser's name, a tax
7 receipt (or a certificate of exemption if the Department is
8 satisfied that the particular sale is tax exempt) which such
9 purchaser may submit to the agency with which, or State
10 officer with whom, he must title or register the tangible
11 personal property that is involved (if titling or
12 registration is required) in support of such purchaser's
13 application for an Illinois certificate or other evidence of
14 title or registration to such tangible personal property.
15 No retailer's failure or refusal to remit tax under this
16 Act precludes a user, who has paid the proper tax to the
17 retailer, from obtaining his certificate of title or other
18 evidence of title or registration (if titling or registration
19 is required) upon satisfying the Department that such user
20 has paid the proper tax (if tax is due) to the retailer. The
21 Department shall adopt appropriate rules to carry out the
22 mandate of this paragraph.
23 If the user who would otherwise pay tax to the retailer
24 wants the transaction reporting return filed and the payment
25 of tax or proof of exemption made to the Department before
26 the retailer is willing to take these actions and such user
27 has not paid the tax to the retailer, such user may certify
28 to the fact of such delay by the retailer, and may (upon the
29 Department being satisfied of the truth of such
30 certification) transmit the information required by the
31 transaction reporting return and the remittance for tax or
32 proof of exemption directly to the Department and obtain his
33 tax receipt or exemption determination, in which event the
34 transaction reporting return and tax remittance (if a tax
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1 payment was required) shall be credited by the Department to
2 the proper retailer's account with the Department, but
3 without the 2.1% or 1.75% discount provided for in this
4 Section being allowed. When the user pays the tax directly
5 to the Department, he shall pay the tax in the same amount
6 and in the same form in which it would be remitted if the tax
7 had been remitted to the Department by the retailer.
8 Where a retailer collects the tax with respect to the
9 selling price of tangible personal property which he sells
10 and the purchaser thereafter returns such tangible personal
11 property and the retailer refunds the selling price thereof
12 to the purchaser, such retailer shall also refund, to the
13 purchaser, the tax so collected from the purchaser. When
14 filing his return for the period in which he refunds such tax
15 to the purchaser, the retailer may deduct the amount of the
16 tax so refunded by him to the purchaser from any other use
17 tax which such retailer may be required to pay or remit to
18 the Department, as shown by such return, if the amount of the
19 tax to be deducted was previously remitted to the Department
20 by such retailer. If the retailer has not previously
21 remitted the amount of such tax to the Department, he is
22 entitled to no deduction under this Act upon refunding such
23 tax to the purchaser.
24 Any retailer filing a return under this Section shall
25 also include (for the purpose of paying tax thereon) the
26 total tax covered by such return upon the selling price of
27 tangible personal property purchased by him at retail from a
28 retailer, but as to which the tax imposed by this Act was not
29 collected from the retailer filing such return, and such
30 retailer shall remit the amount of such tax to the Department
31 when filing such return.
32 If experience indicates such action to be practicable,
33 the Department may prescribe and furnish a combination or
34 joint return which will enable retailers, who are required to
HB2333 Engrossed -46- LRB9007347KDpc
1 file returns hereunder and also under the Retailers'
2 Occupation Tax Act, to furnish all the return information
3 required by both Acts on the one form.
4 Where the retailer has more than one business registered
5 with the Department under separate registration under this
6 Act, such retailer may not file each return that is due as a
7 single return covering all such registered businesses, but
8 shall file separate returns for each such registered
9 business.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the State and Local Sales Tax Reform Fund, a
12 special fund in the State Treasury which is hereby created,
13 the net revenue realized for the preceding month from the 1%
14 tax on sales of food for human consumption which is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks and food which has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances and
19 insulin, urine testing materials, syringes and needles used
20 by diabetics.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the County and Mass Transit District Fund 4%
23 of the net revenue realized for the preceding month from the
24 6.25% general rate on the selling price of tangible personal
25 property which is purchased outside Illinois at retail from a
26 retailer and which is titled or registered by an agency of
27 this State's government.
28 Each month the Department shall pay into the County and
29 Mass Transit District Fund 20% the net revenue realized for
30 the preceding month from the 1.25% rate imposed upon the
31 selling price of any motor vehicle that is purchased outside
32 Illinois at retail by a lessor for purposes of leasing under
33 a lease subject to the Automobile Leasing Occupation and Use
34 Tax Act and which is titled or registered by an agency of
HB2333 Engrossed -47- LRB9007347KDpc
1 this State's government.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the State and Local Sales Tax Reform Fund, a
4 special fund in the State Treasury, 20% of the net revenue
5 realized for the preceding month from the 6.25% general rate
6 on the selling price of tangible personal property, other
7 than tangible personal property which is purchased outside
8 Illinois at retail from a retailer and which is titled or
9 registered by an agency of this State's government.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the Local Government Tax Fund 16% of the net
12 revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property which is purchased outside Illinois at retail from a
15 retailer and which is titled or registered by an agency of
16 this State's government.
17 Each month the Department shall pay into the Local
18 Government Tax Fund 80% of the net revenue realized for the
19 preceding month from the 1.25% rate imposed upon the selling
20 price of any motor vehicle that is purchased outside Illinois
21 at retail by a lessor for purposes of leasing under a lease
22 subject to the Automobile Leasing Occupation and Use Tax Act
23 and which is titled or registered by an agency of this
24 State's government.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, and including all moneys received by
27 the Department under Section 20 of the Automobile Leasing
28 Occupation and Use Tax Act and including all of the moneys
29 received pursuant to the 5% rate imposed upon the selling
30 price of any motor vehicle that is purchased from lessors by
31 lessees of such vehicles in connection with a lease that was
32 subject to the Automobile Leasing Occupation and Use Tax Act
33 Of the remainder of the moneys received by the Department
34 pursuant to this Act, (a) 1.75% thereof shall be paid into
HB2333 Engrossed -48- LRB9007347KDpc
1 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
2 and on and after July 1, 1989, 3.8% thereof shall be paid
3 into the Build Illinois Fund; provided, however, that if in
4 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
5 as the case may be, of the moneys received by the Department
6 and required to be paid into the Build Illinois Fund pursuant
7 to Section 3 of the Retailers' Occupation Tax Act, Section 9
8 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
9 Section 9 of the Service Occupation Tax Act, such Acts being
10 hereinafter called the "Tax Acts" and such aggregate of 2.2%
11 or 3.8%, as the case may be, of moneys being hereinafter
12 called the "Tax Act Amount", and (2) the amount transferred
13 to the Build Illinois Fund from the State and Local Sales Tax
14 Reform Fund shall be less than the Annual Specified Amount
15 (as defined in Section 3 of the Retailers' Occupation Tax
16 Act), an amount equal to the difference shall be immediately
17 paid into the Build Illinois Fund from other moneys received
18 by the Department pursuant to the Tax Acts; and further
19 provided, that if on the last business day of any month the
20 sum of (1) the Tax Act Amount required to be deposited into
21 the Build Illinois Bond Account in the Build Illinois Fund
22 during such month and (2) the amount transferred during such
23 month to the Build Illinois Fund from the State and Local
24 Sales Tax Reform Fund shall have been less than 1/12 of the
25 Annual Specified Amount, an amount equal to the difference
26 shall be immediately paid into the Build Illinois Fund from
27 other moneys received by the Department pursuant to the Tax
28 Acts; and, further provided, that in no event shall the
29 payments required under the preceding proviso result in
30 aggregate payments into the Build Illinois Fund pursuant to
31 this clause (b) for any fiscal year in excess of the greater
32 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
33 for such fiscal year; and, further provided, that the amounts
34 payable into the Build Illinois Fund under this clause (b)
HB2333 Engrossed -49- LRB9007347KDpc
1 shall be payable only until such time as the aggregate amount
2 on deposit under each trust indenture securing Bonds issued
3 and outstanding pursuant to the Build Illinois Bond Act is
4 sufficient, taking into account any future investment income,
5 to fully provide, in accordance with such indenture, for the
6 defeasance of or the payment of the principal of, premium, if
7 any, and interest on the Bonds secured by such indenture and
8 on any Bonds expected to be issued thereafter and all fees
9 and costs payable with respect thereto, all as certified by
10 the Director of the Bureau of the Budget. If on the last
11 business day of any month in which Bonds are outstanding
12 pursuant to the Build Illinois Bond Act, the aggregate of the
13 moneys deposited in the Build Illinois Bond Account in the
14 Build Illinois Fund in such month shall be less than the
15 amount required to be transferred in such month from the
16 Build Illinois Bond Account to the Build Illinois Bond
17 Retirement and Interest Fund pursuant to Section 13 of the
18 Build Illinois Bond Act, an amount equal to such deficiency
19 shall be immediately paid from other moneys received by the
20 Department pursuant to the Tax Acts to the Build Illinois
21 Fund; provided, however, that any amounts paid to the Build
22 Illinois Fund in any fiscal year pursuant to this sentence
23 shall be deemed to constitute payments pursuant to clause (b)
24 of the preceding sentence and shall reduce the amount
25 otherwise payable for such fiscal year pursuant to clause (b)
26 of the preceding sentence. The moneys received by the
27 Department pursuant to this Act and required to be deposited
28 into the Build Illinois Fund are subject to the pledge, claim
29 and charge set forth in Section 12 of the Build Illinois Bond
30 Act.
31 Subject to payment of amounts into the Build Illinois
32 Fund as provided in the preceding paragraph or in any
33 amendment thereto hereafter enacted, the following specified
34 monthly installment of the amount requested in the
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1 certificate of the Chairman of the Metropolitan Pier and
2 Exposition Authority provided under Section 8.25f of the
3 State Finance Act, but not in excess of the sums designated
4 as "Total Deposit", shall be deposited in the aggregate from
5 collections under Section 9 of the Use Tax Act, Section 9 of
6 the Service Use Tax Act, Section 9 of the Service Occupation
7 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
8 into the McCormick Place Expansion Project Fund in the
9 specified fiscal years.
10 Fiscal Year Total Deposit
11 1993 $0
12 1994 53,000,000
13 1995 58,000,000
14 1996 61,000,000
15 1997 64,000,000
16 1998 68,000,000
17 1999 71,000,000
18 2000 75,000,000
19 2001 80,000,000
20 2002 84,000,000
21 2003 89,000,000
22 2004 and 93,000,000
23 each fiscal year
24 thereafter that bonds
25 are outstanding under
26 Section 13.2 of the
27 Metropolitan Pier and
28 Exposition Authority
29 Act.
30 Beginning July 20, 1993 and in each month of each fiscal
31 year thereafter, one-eighth of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority for that fiscal year, less the amount
34 deposited into the McCormick Place Expansion Project Fund by
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1 the State Treasurer in the respective month under subsection
2 (g) of Section 13 of the Metropolitan Pier and Exposition
3 Authority Act, plus cumulative deficiencies in the deposits
4 required under this Section for previous months and years,
5 shall be deposited into the McCormick Place Expansion Project
6 Fund, until the full amount requested for the fiscal year,
7 but not in excess of the amount specified above as "Total
8 Deposit", has been deposited.
9 Subject to payment of amounts into the Build Illinois
10 Fund and the McCormick Place Expansion Project Fund pursuant
11 to the preceding paragraphs or in any amendment thereto
12 hereafter enacted, each month the Department shall pay into
13 the Local Government Distributive Fund .4% of the net revenue
14 realized for the preceding month from the 5% general rate, or
15 .4% of 80% of the net revenue realized for the preceding
16 month from the 6.25% general rate, as the case may be, on the
17 selling price of tangible personal property which amount
18 shall, subject to appropriation, be distributed as provided
19 in Section 2 of the State Revenue Sharing Act. No payments or
20 distributions pursuant to this paragraph shall be made if the
21 tax imposed by this Act on photoprocessing products is
22 declared unconstitutional, or if the proceeds from such tax
23 are unavailable for distribution because of litigation.
24 Subject to payment of amounts into the Build Illinois
25 Fund, the McCormick Place Expansion Project Fund, and the
26 Local Government Distributive Fund pursuant to the preceding
27 paragraphs or in any amendments thereto hereafter enacted,
28 beginning July 1, 1993, the Department shall each month pay
29 into the Illinois Tax Increment Fund 0.27% of 80% of the net
30 revenue realized for the preceding month from the 6.25%
31 general rate on the selling price of tangible personal
32 property.
33 Of the remainder of the moneys received by the Department
34 pursuant to this Act, 75% thereof shall be paid into the
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1 State Treasury and 25% shall be reserved in a special account
2 and used only for the transfer to the Common School Fund as
3 part of the monthly transfer from the General Revenue Fund in
4 accordance with Section 8a of the State Finance Act.
5 As soon as possible after the first day of each month,
6 upon certification of the Department of Revenue, the
7 Comptroller shall order transferred and the Treasurer shall
8 transfer from the General Revenue Fund to the Motor Fuel Tax
9 Fund an amount equal to 1.7% of 80% of the net revenue
10 realized under this Act for the second preceding month;
11 except that this transfer shall not be made for the months
12 February through June of 1992.
13 Net revenue realized for a month shall be the revenue
14 collected by the State pursuant to this Act, less the amount
15 paid out during that month as refunds to taxpayers for
16 overpayment of liability.
17 For greater simplicity of administration, manufacturers,
18 importers and wholesalers whose products are sold at retail
19 in Illinois by numerous retailers, and who wish to do so, may
20 assume the responsibility for accounting and paying to the
21 Department all tax accruing under this Act with respect to
22 such sales, if the retailers who are affected do not make
23 written objection to the Department to this arrangement.
24 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
25 90-491, eff. 1-1-99.)
26 Section 90. The Retailers' Occupation Tax Act is amended
27 by changing Sections 1c, 2-10, and 3 as follows:
28 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
29 Sec. 1c. A person who is engaged in the business of
30 leasing or renting motor vehicles to others and who, in
31 connection with such business sells any used motor vehicle to
32 a purchaser for his use and not for the purpose of resale, is
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1 a retailer engaged in the business of selling tangible
2 personal property at retail under this Act to the extent of
3 the value of the vehicle sold. For the purpose of this
4 Section, "motor vehicle" means any motor vehicle of the first
5 division, a motor vehicle of the second division which is a
6 self-contained motor vehicle designed or permanently
7 converted to provide living quarters for recreational,
8 camping or travel use, with direct walk through access to the
9 living quarters from the driver's seat, or a motor vehicle of
10 a second division which is of the van configuration designed
11 for the transportation of not less than 7 nor more than 16
12 passengers, as defined in Section 1-146 of the Illinois
13 Vehicle Code. For the purpose of this Section "motor vehicle"
14 has the meaning prescribed in Section 1-157 of The Illinois
15 Vehicle Code, as now or hereafter amended. (Nothing provided
16 herein shall affect liability incurred under this Act because
17 of the sale at retail of such motor vehicles to a lessor.)
18 (Source: P.A. 80-598.)
19 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
20 Sec. 2-10. Rate of tax. Unless otherwise provided in
21 this Section, the tax imposed by this Act is at the rate of
22 6.25% of gross receipts from sales of tangible personal
23 property made in the course of business.
24 With respect to gasohol, as defined in the Use Tax Act,
25 the tax imposed by this Act applies to 70% of the proceeds of
26 sales made on or after January 1, 1990, and before July 1,
27 1999, and to 100% of the proceeds of sales made thereafter,
28 except that from July 1, 1997 to July 1, 1999, the rate shall
29 be 85% for gasohol sold in this State during the 12 months
30 beginning July 1 following any calendar year for which the
31 Department has determined that the percentages in Section 10
32 of the Gasohol Fuels Tax Abatement Act have not been met.
33 With respect to food for human consumption that is to be
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1 consumed off the premises where it is sold (other than
2 alcoholic beverages, soft drinks, and food that has been
3 prepared for immediate consumption) and prescription and
4 nonprescription medicines, drugs, medical appliances,
5 modifications to a motor vehicle for the purpose of rendering
6 it usable by a disabled person, and insulin, urine testing
7 materials, syringes, and needles used by diabetics, for human
8 use, the tax is imposed at the rate of 1%. For the purposes
9 of this Section, the term "soft drinks" means any complete,
10 finished, ready-to-use, non-alcoholic drink, whether
11 carbonated or not, including but not limited to soda water,
12 cola, fruit juice, vegetable juice, carbonated water, and all
13 other preparations commonly known as soft drinks of whatever
14 kind or description that are contained in any closed or
15 sealed bottle, can, carton, or container, regardless of size.
16 "Soft drinks" does not include coffee, tea, non-carbonated
17 water, infant formula, milk or milk products as defined in
18 the Grade A Pasteurized Milk and Milk Products Act, or drinks
19 containing 50% or more natural fruit or vegetable juice.
20 Notwithstanding any other provisions of this Act, "food
21 for human consumption that is to be consumed off the premises
22 where it is sold" includes all food sold through a vending
23 machine, except soft drinks and food products that are
24 dispensed hot from a vending machine, regardless of the
25 location of the vending machine.
26 With respect to any motor vehicle (as the term "motor
27 vehicle" is defined in Section 1c of this Act) that is sold
28 to a lessor for purposes of leasing under a lease subject to
29 the Automobile Leasing Occupation and Use Tax Act, the tax is
30 imposed at the rate of 1.25%.
31 With respect to any motor vehicle (as the term "motor
32 vehicle" is defined in Section 1c of this Act) that has been
33 leased by a lessor to a lessee under a lease that is subject
34 to the Automobile Leasing Occupation and Use Tax Act, and is
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1 subsequently sold to the lessee of such vehicle, the tax is
2 imposed at the rate of 5%.
3 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
4 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
5 (35 ILCS 120/3) (from Ch. 120, par. 442)
6 (Text of Section before amendment by P.A. 90-491)
7 Sec. 3. Except as provided in this Section, on or before
8 the twentieth day of each calendar month, every person
9 engaged in the business of selling tangible personal property
10 at retail in this State during the preceding calendar month
11 shall file a return with the Department, stating:
12 1. The name of the seller;
13 2. His residence address and the address of his
14 principal place of business and the address of the
15 principal place of business (if that is a different
16 address) from which he engages in the business of selling
17 tangible personal property at retail in this State;
18 3. Total amount of receipts received by him during
19 the preceding calendar month or quarter, as the case may
20 be, from sales of tangible personal property, and from
21 services furnished, by him during such preceding calendar
22 month or quarter;
23 4. Total amount received by him during the
24 preceding calendar month or quarter on charge and time
25 sales of tangible personal property, and from services
26 furnished, by him prior to the month or quarter for which
27 the return is filed;
28 5. Deductions allowed by law;
29 6. Gross receipts which were received by him during
30 the preceding calendar month or quarter and upon the
31 basis of which the tax is imposed;
32 7. The amount of credit provided in Section 2d of
33 this Act;
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1 8. The amount of tax due;
2 9. The signature of the taxpayer; and
3 10. Such other reasonable information as the
4 Department may require.
5 If a taxpayer fails to sign a return within 30 days after
6 the proper notice and demand for signature by the Department,
7 the return shall be considered valid and any amount shown to
8 be due on the return shall be deemed assessed.
9 Each return shall be accompanied by the statement of
10 prepaid tax issued pursuant to Section 2e for which credit is
11 claimed.
12 A retailer may accept a Manufacturer's Purchase Credit
13 certification from a purchaser in satisfaction of Use Tax as
14 provided in Section 3-85 of the Use Tax Act if the purchaser
15 provides the appropriate documentation as required by Section
16 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
17 certification, accepted by a retailer as provided in Section
18 3-85 of the Use Tax Act, may be used by that retailer to
19 satisfy Retailers' Occupa