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91_HB0197
LRB9100968PTpk
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Sections 3-10 and 9 as follows:
6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in
8 this Section, the tax imposed by this Act is at the rate of
9 6.25% of either the selling price or the fair market value,
10 if any, of the tangible personal property. In all cases
11 where property functionally used or consumed is the same as
12 the property that was purchased at retail, then the tax is
13 imposed on the selling price of the property. In all cases
14 where property functionally used or consumed is a by-product
15 or waste product that has been refined, manufactured, or
16 produced from property purchased at retail, then the tax is
17 imposed on the lower of the fair market value, if any, of the
18 specific property so used in this State or on the selling
19 price of the property purchased at retail. For purposes of
20 this Section "fair market value" means the price at which
21 property would change hands between a willing buyer and a
22 willing seller, neither being under any compulsion to buy or
23 sell and both having reasonable knowledge of the relevant
24 facts. The fair market value shall be established by Illinois
25 sales by the taxpayer of the same property as that
26 functionally used or consumed, or if there are no such sales
27 by the taxpayer, then comparable sales or purchases of
28 property of like kind and character in Illinois.
29 With respect to motor fuel, as defined in Section 1.1 of
30 the Motor Fuel Tax Law, and gasohol, as defined in Section
31 3-40 of the Use Tax Act, the tax is imposed at the rate of
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1 1.25%. If, however, the aggregate tax revenues from motor
2 fuel and gasohol under the Use Tax Act, the Service Use Tax
3 Act, the Service Occupation Tax Act, and the Retailers'
4 Occupation Tax Act during the period from January 1, 2000
5 through December 31, 2000 are not at least 15% more than the
6 aggregate tax revenues from motor fuel and gasohol under
7 those Acts during the period from January 1, 1999 through
8 December 31, 1999, then beginning January 1, 2003 the tax is
9 imposed on motor fuel and gasohol at the 6.25% general rate.
10 With respect to gasohol, the tax imposed by this Act
11 applies to 70% of the proceeds of sales made on or after
12 January 1, 1990, and before July 1, 2003, and to 100% of the
13 proceeds of sales made thereafter.
14 With respect to food for human consumption that is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks, and food that has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances,
19 modifications to a motor vehicle for the purpose of rendering
20 it usable by a disabled person, and insulin, urine testing
21 materials, syringes, and needles used by diabetics, for human
22 use, the tax is imposed at the rate of 1%. For the purposes
23 of this Section, the term "soft drinks" means any complete,
24 finished, ready-to-use, non-alcoholic drink, whether
25 carbonated or not, including but not limited to soda water,
26 cola, fruit juice, vegetable juice, carbonated water, and all
27 other preparations commonly known as soft drinks of whatever
28 kind or description that are contained in any closed or
29 sealed bottle, can, carton, or container, regardless of size.
30 "Soft drinks" does not include coffee, tea, non-carbonated
31 water, infant formula, milk or milk products as defined in
32 the Grade A Pasteurized Milk and Milk Products Act, or drinks
33 containing 50% or more natural fruit or vegetable juice.
34 Notwithstanding any other provisions of this Act, "food
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1 for human consumption that is to be consumed off the premises
2 where it is sold" includes all food sold through a vending
3 machine, except soft drinks and food products that are
4 dispensed hot from a vending machine, regardless of the
5 location of the vending machine.
6 If the property that is purchased at retail from a
7 retailer is acquired outside Illinois and used outside
8 Illinois before being brought to Illinois for use here and is
9 taxable under this Act, the "selling price" on which the tax
10 is computed shall be reduced by an amount that represents a
11 reasonable allowance for depreciation for the period of prior
12 out-of-state use.
13 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
14 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
15 6-30-98; 90-606, eff. 6-30-98.)
16 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
17 Sec. 9. Except as to motor vehicles, watercraft,
18 aircraft, and trailers that are required to be registered
19 with an agency of this State, each retailer required or
20 authorized to collect the tax imposed by this Act shall pay
21 to the Department the amount of such tax (except as otherwise
22 provided) at the time when he is required to file his return
23 for the period during which such tax was collected, less a
24 discount of 2.1% prior to January 1, 1990, and 1.75% on and
25 after January 1, 1990, or $5 per calendar year, whichever is
26 greater, which is allowed to reimburse the retailer for
27 expenses incurred in collecting the tax, keeping records,
28 preparing and filing returns, remitting the tax and supplying
29 data to the Department on request. In the case of retailers
30 who report and pay the tax on a transaction by transaction
31 basis, as provided in this Section, such discount shall be
32 taken with each such tax remittance instead of when such
33 retailer files his periodic return. A retailer need not
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1 remit that part of any tax collected by him to the extent
2 that he is required to remit and does remit the tax imposed
3 by the Retailers' Occupation Tax Act, with respect to the
4 sale of the same property.
5 Where such tangible personal property is sold under a
6 conditional sales contract, or under any other form of sale
7 wherein the payment of the principal sum, or a part thereof,
8 is extended beyond the close of the period for which the
9 return is filed, the retailer, in collecting the tax (except
10 as to motor vehicles, watercraft, aircraft, and trailers that
11 are required to be registered with an agency of this State),
12 may collect for each tax return period, only the tax
13 applicable to that part of the selling price actually
14 received during such tax return period.
15 Except as provided in this Section, on or before the
16 twentieth day of each calendar month, such retailer shall
17 file a return for the preceding calendar month. Such return
18 shall be filed on forms prescribed by the Department and
19 shall furnish such information as the Department may
20 reasonably require.
21 The Department may require returns to be filed on a
22 quarterly basis. If so required, a return for each calendar
23 quarter shall be filed on or before the twentieth day of the
24 calendar month following the end of such calendar quarter.
25 The taxpayer shall also file a return with the Department for
26 each of the first two months of each calendar quarter, on or
27 before the twentieth day of the following calendar month,
28 stating:
29 1. The name of the seller;
30 2. The address of the principal place of business
31 from which he engages in the business of selling tangible
32 personal property at retail in this State;
33 3. The total amount of taxable receipts received by
34 him during the preceding calendar month from sales of
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1 tangible personal property by him during such preceding
2 calendar month, including receipts from charge and time
3 sales, but less all deductions allowed by law;
4 4. The amount of credit provided in Section 2d of
5 this Act;
6 5. The amount of tax due;
7 5-5. The signature of the taxpayer; and
8 6. Such other reasonable information as the
9 Department may require.
10 If a taxpayer fails to sign a return within 30 days after
11 the proper notice and demand for signature by the Department,
12 the return shall be considered valid and any amount shown to
13 be due on the return shall be deemed assessed.
14 Beginning October 1, 1993, a taxpayer who has an average
15 monthly tax liability of $150,000 or more shall make all
16 payments required by rules of the Department by electronic
17 funds transfer. Beginning October 1, 1994, a taxpayer who has
18 an average monthly tax liability of $100,000 or more shall
19 make all payments required by rules of the Department by
20 electronic funds transfer. Beginning October 1, 1995, a
21 taxpayer who has an average monthly tax liability of $50,000
22 or more shall make all payments required by rules of the
23 Department by electronic funds transfer. The term "average
24 monthly tax liability" means the sum of the taxpayer's
25 liabilities under this Act, and under all other State and
26 local occupation and use tax laws administered by the
27 Department, for the immediately preceding calendar year
28 divided by 12.
29 Before August 1 of each year beginning in 1993, the
30 Department shall notify all taxpayers required to make
31 payments by electronic funds transfer. All taxpayers required
32 to make payments by electronic funds transfer shall make
33 those payments for a minimum of one year beginning on October
34 1.
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1 Any taxpayer not required to make payments by electronic
2 funds transfer may make payments by electronic funds transfer
3 with the permission of the Department.
4 All taxpayers required to make payment by electronic
5 funds transfer and any taxpayers authorized to voluntarily
6 make payments by electronic funds transfer shall make those
7 payments in the manner authorized by the Department.
8 The Department shall adopt such rules as are necessary to
9 effectuate a program of electronic funds transfer and the
10 requirements of this Section.
11 If the taxpayer's average monthly tax liability to the
12 Department under this Act, the Retailers' Occupation Tax Act,
13 the Service Occupation Tax Act, the Service Use Tax Act was
14 $10,000 or more during the preceding 4 complete calendar
15 quarters, he shall file a return with the Department each
16 month by the 20th day of the month next following the month
17 during which such tax liability is incurred and shall make
18 payments to the Department on or before the 7th, 15th, 22nd
19 and last day of the month during which such liability is
20 incurred. If the month during which such tax liability is
21 incurred began prior to January 1, 1985, each payment shall
22 be in an amount equal to 1/4 of the taxpayer's actual
23 liability for the month or an amount set by the Department
24 not to exceed 1/4 of the average monthly liability of the
25 taxpayer to the Department for the preceding 4 complete
26 calendar quarters (excluding the month of highest liability
27 and the month of lowest liability in such 4 quarter period).
28 If the month during which such tax liability is incurred
29 begins on or after January 1, 1985, and prior to January 1,
30 1987, each payment shall be in an amount equal to 22.5% of
31 the taxpayer's actual liability for the month or 27.5% of the
32 taxpayer's liability for the same calendar month of the
33 preceding year. If the month during which such tax liability
34 is incurred begins on or after January 1, 1987, and prior to
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1 January 1, 1988, each payment shall be in an amount equal to
2 22.5% of the taxpayer's actual liability for the month or
3 26.25% of the taxpayer's liability for the same calendar
4 month of the preceding year. If the month during which such
5 tax liability is incurred begins on or after January 1, 1988,
6 and prior to January 1, 1989, or begins on or after January
7 1, 1996, each payment shall be in an amount equal to 22.5% of
8 the taxpayer's actual liability for the month or 25% of the
9 taxpayer's liability for the same calendar month of the
10 preceding year. If the month during which such tax liability
11 is incurred begins on or after January 1, 1989, and prior to
12 January 1, 1996, each payment shall be in an amount equal to
13 22.5% of the taxpayer's actual liability for the month or 25%
14 of the taxpayer's liability for the same calendar month of
15 the preceding year or 100% of the taxpayer's actual liability
16 for the quarter monthly reporting period. The amount of such
17 quarter monthly payments shall be credited against the final
18 tax liability of the taxpayer's return for that month. Once
19 applicable, the requirement of the making of quarter monthly
20 payments to the Department shall continue until such
21 taxpayer's average monthly liability to the Department during
22 the preceding 4 complete calendar quarters (excluding the
23 month of highest liability and the month of lowest liability)
24 is less than $9,000, or until such taxpayer's average monthly
25 liability to the Department as computed for each calendar
26 quarter of the 4 preceding complete calendar quarter period
27 is less than $10,000. However, if a taxpayer can show the
28 Department that a substantial change in the taxpayer's
29 business has occurred which causes the taxpayer to anticipate
30 that his average monthly tax liability for the reasonably
31 foreseeable future will fall below $10,000, then such
32 taxpayer may petition the Department for change in such
33 taxpayer's reporting status. The Department shall change
34 such taxpayer's reporting status unless it finds that such
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1 change is seasonal in nature and not likely to be long term.
2 If any such quarter monthly payment is not paid at the time
3 or in the amount required by this Section, then the taxpayer
4 shall be liable for penalties and interest on the difference
5 between the minimum amount due and the amount of such quarter
6 monthly payment actually and timely paid, except insofar as
7 the taxpayer has previously made payments for that month to
8 the Department in excess of the minimum payments previously
9 due as provided in this Section. The Department shall make
10 reasonable rules and regulations to govern the quarter
11 monthly payment amount and quarter monthly payment dates for
12 taxpayers who file on other than a calendar monthly basis.
13 If any such payment provided for in this Section exceeds
14 the taxpayer's liabilities under this Act, the Retailers'
15 Occupation Tax Act, the Service Occupation Tax Act and the
16 Service Use Tax Act, as shown by an original monthly return,
17 the Department shall issue to the taxpayer a credit
18 memorandum no later than 30 days after the date of payment,
19 which memorandum may be submitted by the taxpayer to the
20 Department in payment of tax liability subsequently to be
21 remitted by the taxpayer to the Department or be assigned by
22 the taxpayer to a similar taxpayer under this Act, the
23 Retailers' Occupation Tax Act, the Service Occupation Tax Act
24 or the Service Use Tax Act, in accordance with reasonable
25 rules and regulations to be prescribed by the Department,
26 except that if such excess payment is shown on an original
27 monthly return and is made after December 31, 1986, no credit
28 memorandum shall be issued, unless requested by the taxpayer.
29 If no such request is made, the taxpayer may credit such
30 excess payment against tax liability subsequently to be
31 remitted by the taxpayer to the Department under this Act,
32 the Retailers' Occupation Tax Act, the Service Occupation Tax
33 Act or the Service Use Tax Act, in accordance with reasonable
34 rules and regulations prescribed by the Department. If the
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1 Department subsequently determines that all or any part of
2 the credit taken was not actually due to the taxpayer, the
3 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
4 by 2.1% or 1.75% of the difference between the credit taken
5 and that actually due, and the taxpayer shall be liable for
6 penalties and interest on such difference.
7 If the retailer is otherwise required to file a monthly
8 return and if the retailer's average monthly tax liability to
9 the Department does not exceed $200, the Department may
10 authorize his returns to be filed on a quarter annual basis,
11 with the return for January, February, and March of a given
12 year being due by April 20 of such year; with the return for
13 April, May and June of a given year being due by July 20 of
14 such year; with the return for July, August and September of
15 a given year being due by October 20 of such year, and with
16 the return for October, November and December of a given year
17 being due by January 20 of the following year.
18 If the retailer is otherwise required to file a monthly
19 or quarterly return and if the retailer's average monthly tax
20 liability to the Department does not exceed $50, the
21 Department may authorize his returns to be filed on an annual
22 basis, with the return for a given year being due by January
23 20 of the following year.
24 Such quarter annual and annual returns, as to form and
25 substance, shall be subject to the same requirements as
26 monthly returns.
27 Notwithstanding any other provision in this Act
28 concerning the time within which a retailer may file his
29 return, in the case of any retailer who ceases to engage in a
30 kind of business which makes him responsible for filing
31 returns under this Act, such retailer shall file a final
32 return under this Act with the Department not more than one
33 month after discontinuing such business.
34 In addition, with respect to motor vehicles, watercraft,
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1 aircraft, and trailers that are required to be registered
2 with an agency of this State, every retailer selling this
3 kind of tangible personal property shall file, with the
4 Department, upon a form to be prescribed and supplied by the
5 Department, a separate return for each such item of tangible
6 personal property which the retailer sells, except that
7 where, in the same transaction, a retailer of aircraft,
8 watercraft, motor vehicles or trailers transfers more than
9 one aircraft, watercraft, motor vehicle or trailer to another
10 aircraft, watercraft, motor vehicle or trailer retailer for
11 the purpose of resale, that seller for resale may report the
12 transfer of all the aircraft, watercraft, motor vehicles or
13 trailers involved in that transaction to the Department on
14 the same uniform invoice-transaction reporting return form.
15 For purposes of this Section, "watercraft" means a Class 2,
16 Class 3, or Class 4 watercraft as defined in Section 3-2 of
17 the Boat Registration and Safety Act, a personal watercraft,
18 or any boat equipped with an inboard motor.
19 The transaction reporting return in the case of motor
20 vehicles or trailers that are required to be registered with
21 an agency of this State, shall be the same document as the
22 Uniform Invoice referred to in Section 5-402 of the Illinois
23 Vehicle Code and must show the name and address of the
24 seller; the name and address of the purchaser; the amount of
25 the selling price including the amount allowed by the
26 retailer for traded-in property, if any; the amount allowed
27 by the retailer for the traded-in tangible personal property,
28 if any, to the extent to which Section 2 of this Act allows
29 an exemption for the value of traded-in property; the balance
30 payable after deducting such trade-in allowance from the
31 total selling price; the amount of tax due from the retailer
32 with respect to such transaction; the amount of tax collected
33 from the purchaser by the retailer on such transaction (or
34 satisfactory evidence that such tax is not due in that
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1 particular instance, if that is claimed to be the fact); the
2 place and date of the sale; a sufficient identification of
3 the property sold; such other information as is required in
4 Section 5-402 of the Illinois Vehicle Code, and such other
5 information as the Department may reasonably require.
6 The transaction reporting return in the case of
7 watercraft and aircraft must show the name and address of the
8 seller; the name and address of the purchaser; the amount of
9 the selling price including the amount allowed by the
10 retailer for traded-in property, if any; the amount allowed
11 by the retailer for the traded-in tangible personal property,
12 if any, to the extent to which Section 2 of this Act allows
13 an exemption for the value of traded-in property; the balance
14 payable after deducting such trade-in allowance from the
15 total selling price; the amount of tax due from the retailer
16 with respect to such transaction; the amount of tax collected
17 from the purchaser by the retailer on such transaction (or
18 satisfactory evidence that such tax is not due in that
19 particular instance, if that is claimed to be the fact); the
20 place and date of the sale, a sufficient identification of
21 the property sold, and such other information as the
22 Department may reasonably require.
23 Such transaction reporting return shall be filed not
24 later than 20 days after the date of delivery of the item
25 that is being sold, but may be filed by the retailer at any
26 time sooner than that if he chooses to do so. The
27 transaction reporting return and tax remittance or proof of
28 exemption from the tax that is imposed by this Act may be
29 transmitted to the Department by way of the State agency with
30 which, or State officer with whom, the tangible personal
31 property must be titled or registered (if titling or
32 registration is required) if the Department and such agency
33 or State officer determine that this procedure will expedite
34 the processing of applications for title or registration.
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1 With each such transaction reporting return, the retailer
2 shall remit the proper amount of tax due (or shall submit
3 satisfactory evidence that the sale is not taxable if that is
4 the case), to the Department or its agents, whereupon the
5 Department shall issue, in the purchaser's name, a tax
6 receipt (or a certificate of exemption if the Department is
7 satisfied that the particular sale is tax exempt) which such
8 purchaser may submit to the agency with which, or State
9 officer with whom, he must title or register the tangible
10 personal property that is involved (if titling or
11 registration is required) in support of such purchaser's
12 application for an Illinois certificate or other evidence of
13 title or registration to such tangible personal property.
14 No retailer's failure or refusal to remit tax under this
15 Act precludes a user, who has paid the proper tax to the
16 retailer, from obtaining his certificate of title or other
17 evidence of title or registration (if titling or registration
18 is required) upon satisfying the Department that such user
19 has paid the proper tax (if tax is due) to the retailer. The
20 Department shall adopt appropriate rules to carry out the
21 mandate of this paragraph.
22 If the user who would otherwise pay tax to the retailer
23 wants the transaction reporting return filed and the payment
24 of tax or proof of exemption made to the Department before
25 the retailer is willing to take these actions and such user
26 has not paid the tax to the retailer, such user may certify
27 to the fact of such delay by the retailer, and may (upon the
28 Department being satisfied of the truth of such
29 certification) transmit the information required by the
30 transaction reporting return and the remittance for tax or
31 proof of exemption directly to the Department and obtain his
32 tax receipt or exemption determination, in which event the
33 transaction reporting return and tax remittance (if a tax
34 payment was required) shall be credited by the Department to
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1 the proper retailer's account with the Department, but
2 without the 2.1% or 1.75% discount provided for in this
3 Section being allowed. When the user pays the tax directly
4 to the Department, he shall pay the tax in the same amount
5 and in the same form in which it would be remitted if the tax
6 had been remitted to the Department by the retailer.
7 Where a retailer collects the tax with respect to the
8 selling price of tangible personal property which he sells
9 and the purchaser thereafter returns such tangible personal
10 property and the retailer refunds the selling price thereof
11 to the purchaser, such retailer shall also refund, to the
12 purchaser, the tax so collected from the purchaser. When
13 filing his return for the period in which he refunds such tax
14 to the purchaser, the retailer may deduct the amount of the
15 tax so refunded by him to the purchaser from any other use
16 tax which such retailer may be required to pay or remit to
17 the Department, as shown by such return, if the amount of the
18 tax to be deducted was previously remitted to the Department
19 by such retailer. If the retailer has not previously
20 remitted the amount of such tax to the Department, he is
21 entitled to no deduction under this Act upon refunding such
22 tax to the purchaser.
23 Any retailer filing a return under this Section shall
24 also include (for the purpose of paying tax thereon) the
25 total tax covered by such return upon the selling price of
26 tangible personal property purchased by him at retail from a
27 retailer, but as to which the tax imposed by this Act was not
28 collected from the retailer filing such return, and such
29 retailer shall remit the amount of such tax to the Department
30 when filing such return.
31 If experience indicates such action to be practicable,
32 the Department may prescribe and furnish a combination or
33 joint return which will enable retailers, who are required to
34 file returns hereunder and also under the Retailers'
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1 Occupation Tax Act, to furnish all the return information
2 required by both Acts on the one form.
3 Where the retailer has more than one business registered
4 with the Department under separate registration under this
5 Act, such retailer may not file each return that is due as a
6 single return covering all such registered businesses, but
7 shall file separate returns for each such registered
8 business.
9 Beginning January 1, 1990, each month the Department
10 shall pay into the State and Local Sales Tax Reform Fund, a
11 special fund in the State Treasury which is hereby created,
12 the net revenue realized for the preceding month from the 1%
13 tax on sales of food for human consumption which is to be
14 consumed off the premises where it is sold (other than
15 alcoholic beverages, soft drinks and food which has been
16 prepared for immediate consumption) and prescription and
17 nonprescription medicines, drugs, medical appliances and
18 insulin, urine testing materials, syringes and needles used
19 by diabetics.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the County and Mass Transit District Fund 4%
22 of the net revenue realized for the preceding month from the
23 6.25% general rate on the selling price of tangible personal
24 property which is purchased outside Illinois at retail from a
25 retailer and which is titled or registered by an agency of
26 this State's government.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the State and Local Sales Tax Reform Fund, a
29 special fund in the State Treasury, 20% of the net revenue
30 realized for the preceding month from the 6.25% general rate
31 on the selling price of tangible personal property, other
32 than tangible personal property which is purchased outside
33 Illinois at retail from a retailer and which is titled or
34 registered by an agency of this State's government.
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1 Beginning January 1, 2000, and so long as the rate
2 remains at 1.25%, each month the Department shall pay into
3 the County and Mass Transit District Fund 20% of the net
4 revenue realized for the preceding month from the 1.25% rate
5 on the proceeds of sales of motor fuel and gasohol.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the Local Government Tax Fund 16% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property which is purchased outside Illinois at retail from a
11 retailer and which is titled or registered by an agency of
12 this State's government.
13 Beginning January 1, 2000, and so long as the rate
14 remains at 1.25%, each month the Department shall pay into
15 the Local Government Tax Fund 80% of the net revenue realized
16 for the preceding month from the 1.25% rate on the proceeds
17 of sales of motor fuel and gasohol.
18 Of the remainder of the moneys received by the Department
19 pursuant to this Act, (a) 1.75% thereof shall be paid into
20 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
21 and on and after July 1, 1989, 3.8% thereof shall be paid
22 into the Build Illinois Fund; provided, however, that if in
23 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
24 as the case may be, of the moneys received by the Department
25 and required to be paid into the Build Illinois Fund pursuant
26 to Section 3 of the Retailers' Occupation Tax Act, Section 9
27 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
28 Section 9 of the Service Occupation Tax Act, such Acts being
29 hereinafter called the "Tax Acts" and such aggregate of 2.2%
30 or 3.8%, as the case may be, of moneys being hereinafter
31 called the "Tax Act Amount", and (2) the amount transferred
32 to the Build Illinois Fund from the State and Local Sales Tax
33 Reform Fund shall be less than the Annual Specified Amount
34 (as defined in Section 3 of the Retailers' Occupation Tax
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1 Act), an amount equal to the difference shall be immediately
2 paid into the Build Illinois Fund from other moneys received
3 by the Department pursuant to the Tax Acts; and further
4 provided, that if on the last business day of any month the
5 sum of (1) the Tax Act Amount required to be deposited into
6 the Build Illinois Bond Account in the Build Illinois Fund
7 during such month and (2) the amount transferred during such
8 month to the Build Illinois Fund from the State and Local
9 Sales Tax Reform Fund shall have been less than 1/12 of the
10 Annual Specified Amount, an amount equal to the difference
11 shall be immediately paid into the Build Illinois Fund from
12 other moneys received by the Department pursuant to the Tax
13 Acts; and, further provided, that in no event shall the
14 payments required under the preceding proviso result in
15 aggregate payments into the Build Illinois Fund pursuant to
16 this clause (b) for any fiscal year in excess of the greater
17 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
18 for such fiscal year; and, further provided, that the amounts
19 payable into the Build Illinois Fund under this clause (b)
20 shall be payable only until such time as the aggregate amount
21 on deposit under each trust indenture securing Bonds issued
22 and outstanding pursuant to the Build Illinois Bond Act is
23 sufficient, taking into account any future investment income,
24 to fully provide, in accordance with such indenture, for the
25 defeasance of or the payment of the principal of, premium, if
26 any, and interest on the Bonds secured by such indenture and
27 on any Bonds expected to be issued thereafter and all fees
28 and costs payable with respect thereto, all as certified by
29 the Director of the Bureau of the Budget. If on the last
30 business day of any month in which Bonds are outstanding
31 pursuant to the Build Illinois Bond Act, the aggregate of the
32 moneys deposited in the Build Illinois Bond Account in the
33 Build Illinois Fund in such month shall be less than the
34 amount required to be transferred in such month from the
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1 Build Illinois Bond Account to the Build Illinois Bond
2 Retirement and Interest Fund pursuant to Section 13 of the
3 Build Illinois Bond Act, an amount equal to such deficiency
4 shall be immediately paid from other moneys received by the
5 Department pursuant to the Tax Acts to the Build Illinois
6 Fund; provided, however, that any amounts paid to the Build
7 Illinois Fund in any fiscal year pursuant to this sentence
8 shall be deemed to constitute payments pursuant to clause (b)
9 of the preceding sentence and shall reduce the amount
10 otherwise payable for such fiscal year pursuant to clause (b)
11 of the preceding sentence. The moneys received by the
12 Department pursuant to this Act and required to be deposited
13 into the Build Illinois Fund are subject to the pledge, claim
14 and charge set forth in Section 12 of the Build Illinois Bond
15 Act.
16 Subject to payment of amounts into the Build Illinois
17 Fund as provided in the preceding paragraph or in any
18 amendment thereto hereafter enacted, the following specified
19 monthly installment of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority provided under Section 8.25f of the
22 State Finance Act, but not in excess of the sums designated
23 as "Total Deposit", shall be deposited in the aggregate from
24 collections under Section 9 of the Use Tax Act, Section 9 of
25 the Service Use Tax Act, Section 9 of the Service Occupation
26 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
27 into the McCormick Place Expansion Project Fund in the
28 specified fiscal years.
29 Fiscal Year Total Deposit
30 1993 $0
31 1994 53,000,000
32 1995 58,000,000
33 1996 61,000,000
34 1997 64,000,000
-18- LRB9100968PTpk
1 1998 68,000,000
2 1999 71,000,000
3 2000 75,000,000
4 2001 80,000,000
5 2002 84,000,000
6 2003 89,000,000
7 2004 93,000,000
8 2005 97,000,000
9 2006 102,000,000
10 2007 and 106,000,000
11 each fiscal year
12 thereafter that bonds
13 are outstanding under
14 Section 13.2 of the
15 Metropolitan Pier and
16 Exposition Authority
17 Act, but not after fiscal year 2029.
18 Beginning July 20, 1993 and in each month of each fiscal
19 year thereafter, one-eighth of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority for that fiscal year, less the amount
22 deposited into the McCormick Place Expansion Project Fund by
23 the State Treasurer in the respective month under subsection
24 (g) of Section 13 of the Metropolitan Pier and Exposition
25 Authority Act, plus cumulative deficiencies in the deposits
26 required under this Section for previous months and years,
27 shall be deposited into the McCormick Place Expansion Project
28 Fund, until the full amount requested for the fiscal year,
29 but not in excess of the amount specified above as "Total
30 Deposit", has been deposited.
31 Subject to payment of amounts into the Build Illinois
32 Fund and the McCormick Place Expansion Project Fund pursuant
33 to the preceding paragraphs or in any amendment thereto
34 hereafter enacted, each month the Department shall pay into
-19- LRB9100968PTpk
1 the Local Government Distributive Fund .4% of the net revenue
2 realized for the preceding month from the 5% general rate, or
3 .4% of 80% of the net revenue realized for the preceding
4 month from the 6.25% general rate, as the case may be, on the
5 selling price of tangible personal property which amount
6 shall, subject to appropriation, be distributed as provided
7 in Section 2 of the State Revenue Sharing Act. No payments or
8 distributions pursuant to this paragraph shall be made if the
9 tax imposed by this Act on photoprocessing products is
10 declared unconstitutional, or if the proceeds from such tax
11 are unavailable for distribution because of litigation.
12 Subject to payment of amounts into the Build Illinois
13 Fund, the McCormick Place Expansion Project Fund, and the
14 Local Government Distributive Fund pursuant to the preceding
15 paragraphs or in any amendments thereto hereafter enacted,
16 beginning July 1, 1993, the Department shall each month pay
17 into the Illinois Tax Increment Fund 0.27% of 80% of the net
18 revenue realized for the preceding month from the 6.25%
19 general rate on the selling price of tangible personal
20 property.
21 Of the remainder of the moneys received by the Department
22 pursuant to this Act, 75% thereof shall be paid into the
23 State Treasury and 25% shall be reserved in a special account
24 and used only for the transfer to the Common School Fund as
25 part of the monthly transfer from the General Revenue Fund in
26 accordance with Section 8a of the State Finance Act.
27 As soon as possible after the first day of each month,
28 upon certification of the Department of Revenue, the
29 Comptroller shall order transferred and the Treasurer shall
30 transfer from the General Revenue Fund to the Motor Fuel Tax
31 Fund an amount equal to 1.7% of 80% of the net revenue
32 realized under this Act for the second preceding month;
33 except that this transfer shall not be made for the months
34 February through June of 1992.
-20- LRB9100968PTpk
1 Net revenue realized for a month shall be the revenue
2 collected by the State pursuant to this Act, less the amount
3 paid out during that month as refunds to taxpayers for
4 overpayment of liability.
5 For greater simplicity of administration, manufacturers,
6 importers and wholesalers whose products are sold at retail
7 in Illinois by numerous retailers, and who wish to do so, may
8 assume the responsibility for accounting and paying to the
9 Department all tax accruing under this Act with respect to
10 such sales, if the retailers who are affected do not make
11 written objection to the Department to this arrangement.
12 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
13 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
14 Section 10. The Service Use Tax Act is amended by
15 changing Sections 3-10 and 9 as follows:
16 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
17 Sec. 3-10. Rate of tax. Unless otherwise provided in
18 this Section, the tax imposed by this Act is at the rate of
19 6.25% of the selling price of tangible personal property
20 transferred as an incident to the sale of service, but, for
21 the purpose of computing this tax, in no event shall the
22 selling price be less than the cost price of the property to
23 the serviceman.
24 With respect to motor fuel, as defined in Section 1.1 of
25 the Motor Fuel Tax Law, and gasohol, as defined in Section
26 3-40 of the Use Tax Act, the tax is imposed at the rate of
27 1.25%. If, however, the aggregate tax revenues from motor
28 fuel and gasohol under the Use Tax Act, the Service Use Tax
29 Act, the Service Occupation Tax Act, and the Retailers'
30 Occupation Tax Act during the period from January 1, 2000
31 through December 31, 2000 are not at least 15% more than the
32 aggregate tax revenues from motor fuel and gasohol under
-21- LRB9100968PTpk
1 those Acts during the period from January 1, 1999 through
2 December 31, 1999, then beginning January 1, 2003 the tax is
3 imposed on motor fuel and gasohol at the 6.25% general rate.
4 With respect to gasohol, as defined in the Use Tax Act,
5 the tax imposed by this Act applies to 70% of the selling
6 price of property transferred as an incident to the sale of
7 service on or after January 1, 1990, and before July 1, 2003,
8 and to 100% of the selling price thereafter.
9 At the election of any registered serviceman made for
10 each fiscal year, sales of service in which the aggregate
11 annual cost price of tangible personal property transferred
12 as an incident to the sales of service is less than 35%, or
13 75% in the case of servicemen transferring prescription drugs
14 or servicemen engaged in graphic arts production, of the
15 aggregate annual total gross receipts from all sales of
16 service, the tax imposed by this Act shall be based on the
17 serviceman's cost price of the tangible personal property
18 transferred as an incident to the sale of those services.
19 The tax shall be imposed at the rate of 1% on food
20 prepared for immediate consumption and transferred incident
21 to a sale of service subject to this Act or the Service
22 Occupation Tax Act by an entity licensed under the Hospital
23 Licensing Act or the Nursing Home Care Act. The tax shall
24 also be imposed at the rate of 1% on food for human
25 consumption that is to be consumed off the premises where it
26 is sold (other than alcoholic beverages, soft drinks, and
27 food that has been prepared for immediate consumption and is
28 not otherwise included in this paragraph) and prescription
29 and nonprescription medicines, drugs, medical appliances,
30 modifications to a motor vehicle for the purpose of rendering
31 it usable by a disabled person, and insulin, urine testing
32 materials, syringes, and needles used by diabetics, for human
33 use. For the purposes of this Section, the term "soft drinks"
34 means any complete, finished, ready-to-use, non-alcoholic
-22- LRB9100968PTpk
1 drink, whether carbonated or not, including but not limited
2 to soda water, cola, fruit juice, vegetable juice, carbonated
3 water, and all other preparations commonly known as soft
4 drinks of whatever kind or description that are contained in
5 any closed or sealed bottle, can, carton, or container,
6 regardless of size. "Soft drinks" does not include coffee,
7 tea, non-carbonated water, infant formula, milk or milk
8 products as defined in the Grade A Pasteurized Milk and Milk
9 Products Act, or drinks containing 50% or more natural fruit
10 or vegetable juice.
11 Notwithstanding any other provisions of this Act, "food
12 for human consumption that is to be consumed off the premises
13 where it is sold" includes all food sold through a vending
14 machine, except soft drinks and food products that are
15 dispensed hot from a vending machine, regardless of the
16 location of the vending machine.
17 If the property that is acquired from a serviceman is
18 acquired outside Illinois and used outside Illinois before
19 being brought to Illinois for use here and is taxable under
20 this Act, the "selling price" on which the tax is computed
21 shall be reduced by an amount that represents a reasonable
22 allowance for depreciation for the period of prior
23 out-of-state use.
24 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
25 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
26 6-30-98; 90-606, eff. 6-30-98.)
27 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
28 Sec. 9. Each serviceman required or authorized to
29 collect the tax herein imposed shall pay to the Department
30 the amount of such tax (except as otherwise provided) at the
31 time when he is required to file his return for the period
32 during which such tax was collected, less a discount of 2.1%
33 prior to January 1, 1990 and 1.75% on and after January 1,
-23- LRB9100968PTpk
1 1990, or $5 per calendar year, whichever is greater, which is
2 allowed to reimburse the serviceman for expenses incurred in
3 collecting the tax, keeping records, preparing and filing
4 returns, remitting the tax and supplying data to the
5 Department on request. A serviceman need not remit that part
6 of any tax collected by him to the extent that he is required
7 to pay and does pay the tax imposed by the Service Occupation
8 Tax Act with respect to his sale of service involving the
9 incidental transfer by him of the same property.
10 Except as provided hereinafter in this Section, on or
11 before the twentieth day of each calendar month, such
12 serviceman shall file a return for the preceding calendar
13 month in accordance with reasonable Rules and Regulations to
14 be promulgated by the Department. Such return shall be filed
15 on a form prescribed by the Department and shall contain such
16 information as the Department may reasonably require.
17 The Department may require returns to be filed on a
18 quarterly basis. If so required, a return for each calendar
19 quarter shall be filed on or before the twentieth day of the
20 calendar month following the end of such calendar quarter.
21 The taxpayer shall also file a return with the Department for
22 each of the first two months of each calendar quarter, on or
23 before the twentieth day of the following calendar month,
24 stating:
25 1. The name of the seller;
26 2. The address of the principal place of business
27 from which he engages in business as a serviceman in this
28 State;
29 3. The total amount of taxable receipts received by
30 him during the preceding calendar month, including
31 receipts from charge and time sales, but less all
32 deductions allowed by law;
33 4. The amount of credit provided in Section 2d of
34 this Act;
-24- LRB9100968PTpk
1 5. The amount of tax due;
2 5-5. The signature of the taxpayer; and
3 6. 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 Beginning October 1, 1993, a taxpayer who has an average
10 monthly tax liability of $150,000 or more shall make all
11 payments required by rules of the Department by electronic
12 funds transfer. Beginning October 1, 1994, a taxpayer who
13 has an average monthly tax liability of $100,000 or more
14 shall make all payments required by rules of the Department
15 by electronic funds transfer. Beginning October 1, 1995, a
16 taxpayer who has an average monthly tax liability of $50,000
17 or more shall make all payments required by rules of the
18 Department by electronic funds transfer. The term "average
19 monthly tax liability" means the sum of the taxpayer's
20 liabilities under this Act, and under all other State and
21 local occupation and use tax laws administered by the
22 Department, for the immediately preceding calendar year
23 divided by 12.
24 Before August 1 of each year beginning in 1993, the
25 Department shall notify all taxpayers required to make
26 payments by electronic funds transfer. All taxpayers required
27 to make payments by electronic funds transfer shall make
28 those payments for a minimum of one year beginning on October
29 1.
30 Any taxpayer not required to make payments by electronic
31 funds transfer may make payments by electronic funds transfer
32 with the permission of the Department.
33 All taxpayers required to make payment by electronic
34 funds transfer and any taxpayers authorized to voluntarily
-25- LRB9100968PTpk
1 make payments by electronic funds transfer shall make those
2 payments in the manner authorized by the Department.
3 The Department shall adopt such rules as are necessary to
4 effectuate a program of electronic funds transfer and the
5 requirements of this Section.
6 If the serviceman is otherwise required to file a monthly
7 return and if the serviceman's average monthly tax liability
8 to the Department does not exceed $200, the Department may
9 authorize his returns to be filed on a quarter annual basis,
10 with the return for January, February and March of a given
11 year being due by April 20 of such year; with the return for
12 April, May and June of a given year being due by July 20 of
13 such year; with the return for July, August and September of
14 a given year being due by October 20 of such year, and with
15 the return for October, November and December of a given year
16 being due by January 20 of the following year.
17 If the serviceman is otherwise required to file a monthly
18 or quarterly return and if the serviceman's average monthly
19 tax liability to the Department does not exceed $50, the
20 Department may authorize his returns to be filed on an annual
21 basis, with the return for a given year being due by January
22 20 of the following year.
23 Such quarter annual and annual returns, as to form and
24 substance, shall be subject to the same requirements as
25 monthly returns.
26 Notwithstanding any other provision in this Act
27 concerning the time within which a serviceman may file his
28 return, in the case of any serviceman who ceases to engage in
29 a kind of business which makes him responsible for filing
30 returns under this Act, such serviceman shall file a final
31 return under this Act with the Department not more than 1
32 month after discontinuing such business.
33 Where a serviceman collects the tax with respect to the
34 selling price of property which he sells and the purchaser
-26- LRB9100968PTpk
1 thereafter returns such property and the serviceman refunds
2 the selling price thereof to the purchaser, such serviceman
3 shall also refund, to the purchaser, the tax so collected
4 from the purchaser. When filing his return for the period in
5 which he refunds such tax to the purchaser, the serviceman
6 may deduct the amount of the tax so refunded by him to the
7 purchaser from any other Service Use Tax, Service Occupation
8 Tax, retailers' occupation tax or use tax which such
9 serviceman may be required to pay or remit to the Department,
10 as shown by such return, provided that the amount of the tax
11 to be deducted shall previously have been remitted to the
12 Department by such serviceman. If the serviceman shall not
13 previously have remitted the amount of such tax to the
14 Department, he shall be entitled to no deduction hereunder
15 upon refunding such tax to the purchaser.
16 Any serviceman filing a return hereunder shall also
17 include the total tax upon the selling price of tangible
18 personal property purchased for use by him as an incident to
19 a sale of service, and such serviceman shall remit the amount
20 of such tax to the Department when filing such return.
21 If experience indicates such action to be practicable,
22 the Department may prescribe and furnish a combination or
23 joint return which will enable servicemen, who are required
24 to file returns hereunder and also under the Service
25 Occupation Tax Act, to furnish all the return information
26 required by both Acts on the one form.
27 Where the serviceman has more than one business
28 registered with the Department under separate registration
29 hereunder, such serviceman shall not file each return that is
30 due as a single return covering all such registered
31 businesses, but shall file separate returns for each such
32 registered business.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the State and Local Tax Reform Fund, a special
-27- LRB9100968PTpk
1 fund in the State Treasury, the net revenue realized for the
2 preceding month from the 1% tax on sales of food for human
3 consumption which is to be consumed off the premises where it
4 is sold (other than alcoholic beverages, soft drinks and food
5 which has been prepared for immediate consumption) and
6 prescription and nonprescription medicines, drugs, medical
7 appliances and insulin, urine testing materials, syringes and
8 needles used by diabetics.
9 Beginning January 1, 2000, and so long as the rate
10 remains at 1.25%, each month the Department shall pay into
11 the County and Mass Transit District Fund 20% of the net
12 revenue realized for the preceding month from the 1.25% rate
13 on the selling price of motor fuel and gasohol.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the State and Local Sales Tax Reform Fund 20%
16 of the net revenue realized for the preceding month from the
17 6.25% general rate on transfers of tangible personal
18 property, other than tangible personal property which is
19 purchased outside Illinois at retail from a retailer and
20 which is titled or registered by an agency of this State's
21 government.
22 Beginning January 1, 2000, and so long as the rate
23 remains at 1.25%, each month the Department shall pay into
24 the Local Government Tax Fund 80% of the net revenue realized
25 for the preceding month from the 1.25% rate on the selling
26 price of motor fuel and gasohol.
27 Of the remainder of the moneys received by the Department
28 pursuant to this Act, (a) 1.75% thereof shall be paid into
29 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
30 and on and after July 1, 1989, 3.8% thereof shall be paid
31 into the Build Illinois Fund; provided, however, that if in
32 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
33 as the case may be, of the moneys received by the Department
34 and required to be paid into the Build Illinois Fund pursuant
-28- LRB9100968PTpk
1 to Section 3 of the Retailers' Occupation Tax Act, Section 9
2 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
3 Section 9 of the Service Occupation Tax Act, such Acts being
4 hereinafter called the "Tax Acts" and such aggregate of 2.2%
5 or 3.8%, as the case may be, of moneys being hereinafter
6 called the "Tax Act Amount", and (2) the amount transferred
7 to the Build Illinois Fund from the State and Local Sales Tax
8 Reform Fund shall be less than the Annual Specified Amount
9 (as defined in Section 3 of the Retailers' Occupation Tax
10 Act), an amount equal to the difference shall be immediately
11 paid into the Build Illinois Fund from other moneys received
12 by the Department pursuant to the Tax Acts; and further
13 provided, that if on the last business day of any month the
14 sum of (1) the Tax Act Amount required to be deposited into
15 the Build Illinois Bond Account in the Build Illinois Fund
16 during such month and (2) the amount transferred during such
17 month to the Build Illinois Fund from the State and Local
18 Sales Tax Reform Fund shall have been less than 1/12 of the
19 Annual Specified Amount, an amount equal to the difference
20 shall be immediately paid into the Build Illinois Fund from
21 other moneys received by the Department pursuant to the Tax
22 Acts; and, further provided, that in no event shall the
23 payments required under the preceding proviso result in
24 aggregate payments into the Build Illinois Fund pursuant to
25 this clause (b) for any fiscal year in excess of the greater
26 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
27 for such fiscal year; and, further provided, that the amounts
28 payable into the Build Illinois Fund under this clause (b)
29 shall be payable only until such time as the aggregate amount
30 on deposit under each trust indenture securing Bonds issued
31 and outstanding pursuant to the Build Illinois Bond Act is
32 sufficient, taking into account any future investment income,
33 to fully provide, in accordance with such indenture, for the
34 defeasance of or the payment of the principal of, premium, if
-29- LRB9100968PTpk
1 any, and interest on the Bonds secured by such indenture and
2 on any Bonds expected to be issued thereafter and all fees
3 and costs payable with respect thereto, all as certified by
4 the Director of the Bureau of the Budget. If on the last
5 business day of any month in which Bonds are outstanding
6 pursuant to the Build Illinois Bond Act, the aggregate of the
7 moneys deposited in the Build Illinois Bond Account in the
8 Build Illinois Fund in such month shall be less than the
9 amount required to be transferred in such month from the
10 Build Illinois Bond Account to the Build Illinois Bond
11 Retirement and Interest Fund pursuant to Section 13 of the
12 Build Illinois Bond Act, an amount equal to such deficiency
13 shall be immediately paid from other moneys received by the
14 Department pursuant to the Tax Acts to the Build Illinois
15 Fund; provided, however, that any amounts paid to the Build
16 Illinois Fund in any fiscal year pursuant to this sentence
17 shall be deemed to constitute payments pursuant to clause (b)
18 of the preceding sentence and shall reduce the amount
19 otherwise payable for such fiscal year pursuant to clause (b)
20 of the preceding sentence. The moneys received by the
21 Department pursuant to this Act and required to be deposited
22 into the Build Illinois Fund are subject to the pledge, claim
23 and charge set forth in Section 12 of the Build Illinois Bond
24 Act.
25 Subject to payment of amounts into the Build Illinois
26 Fund as provided in the preceding paragraph or in any
27 amendment thereto hereafter enacted, the following specified
28 monthly installment of the amount requested in the
29 certificate of the Chairman of the Metropolitan Pier and
30 Exposition Authority provided under Section 8.25f of the
31 State Finance Act, but not in excess of the sums designated
32 as "Total Deposit", shall be deposited in the aggregate from
33 collections under Section 9 of the Use Tax Act, Section 9 of
34 the Service Use Tax Act, Section 9 of the Service Occupation
-30- LRB9100968PTpk
1 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
2 into the McCormick Place Expansion Project Fund in the
3 specified fiscal years.
4 Fiscal Year Total Deposit
5 1993 $0
6 1994 53,000,000
7 1995 58,000,000
8 1996 61,000,000
9 1997 64,000,000
10 1998 68,000,000
11 1999 71,000,000
12 2000 75,000,000
13 2001 80,000,000
14 2002 84,000,000
15 2003 89,000,000
16 2004 93,000,000
17 2005 97,000,000
18 2006 102,000,000
19 2007 and 106,000,000
20 each fiscal year
21 thereafter that bonds
22 are outstanding under
23 Section 13.2 of the
24 Metropolitan Pier and
25 Exposition Authority Act,
26 but not after fiscal year 2029.
27 Beginning July 20, 1993 and in each month of each fiscal
28 year thereafter, one-eighth of the amount requested in the
29 certificate of the Chairman of the Metropolitan Pier and
30 Exposition Authority for that fiscal year, less the amount
31 deposited into the McCormick Place Expansion Project Fund by
32 the State Treasurer in the respective month under subsection
33 (g) of Section 13 of the Metropolitan Pier and Exposition
34 Authority Act, plus cumulative deficiencies in the deposits
-31- LRB9100968PTpk
1 required under this Section for previous months and years,
2 shall be deposited into the McCormick Place Expansion Project
3 Fund, until the full amount requested for the fiscal year,
4 but not in excess of the amount specified above as "Total
5 Deposit", has been deposited.
6 Subject to payment of amounts into the Build Illinois
7 Fund and the McCormick Place Expansion Project Fund pursuant
8 to the preceding paragraphs or in any amendment thereto
9 hereafter enacted, each month the Department shall pay into
10 the Local Government Distributive Fund 0.4% of the net
11 revenue realized for the preceding month from the 5% general
12 rate or 0.4% of 80% of the net revenue realized for the
13 preceding month from the 6.25% general rate, as the case may
14 be, on the selling price of tangible personal property which
15 amount shall, subject to appropriation, be distributed as
16 provided in Section 2 of the State Revenue Sharing Act. No
17 payments or distributions pursuant to this paragraph shall be
18 made if the tax imposed by this Act on photo processing
19 products is declared unconstitutional, or if the proceeds
20 from such tax are unavailable for distribution because of
21 litigation.
22 Subject to payment of amounts into the Build Illinois
23 Fund, the McCormick Place Expansion Project Fund, and the
24 Local Government Distributive Fund pursuant to the preceding
25 paragraphs or in any amendments thereto hereafter enacted,
26 beginning July 1, 1993, the Department shall each month pay
27 into the Illinois Tax Increment Fund 0.27% of 80% of the net
28 revenue realized for the preceding month from the 6.25%
29 general rate on the selling price of tangible personal
30 property.
31 All remaining moneys received by the Department pursuant
32 to this Act shall be paid into the General Revenue Fund of
33 the State Treasury.
34 As soon as possible after the first day of each month,
-32- LRB9100968PTpk
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under this Act for the second preceding month;
6 except that this transfer shall not be made for the months
7 February through June, 1992.
8 Net revenue realized for a month shall be the revenue
9 collected by the State pursuant to this Act, less the amount
10 paid out during that month as refunds to taxpayers for
11 overpayment of liability.
12 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
13 Section 15. The Service Occupation Tax Act is amended by
14 changing Sections 3-10 and 9 as follows:
15 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
16 Sec. 3-10. Rate of tax. Unless otherwise provided in
17 this Section, the tax imposed by this Act is at the rate of
18 6.25% of the "selling price", as defined in Section 2 of the
19 Service Use Tax Act, of the tangible personal property. For
20 the purpose of computing this tax, in no event shall the
21 "selling price" be less than the cost price to the serviceman
22 of the tangible personal property transferred. The selling
23 price of each item of tangible personal property transferred
24 as an incident of a sale of service may be shown as a
25 distinct and separate item on the serviceman's billing to the
26 service customer. If the selling price is not so shown, the
27 selling price of the tangible personal property is deemed to
28 be 50% of the serviceman's entire billing to the service
29 customer. When, however, a serviceman contracts to design,
30 develop, and produce special order machinery or equipment,
31 the tax imposed by this Act shall be based on the
32 serviceman's cost price of the tangible personal property
-33- LRB9100968PTpk
1 transferred incident to the completion of the contract.
2 With respect to motor fuel, as defined in Section 1.1 of
3 the Motor Fuel Tax Law, and gasohol, as defined in Section
4 3-40 of the Use Tax Act, the tax is imposed at the rate of
5 1.25%. If, however, the aggregate tax revenues from motor
6 fuel and gasohol under the Use Tax Act, the Service Use Tax
7 Act, the Service Occupation Tax Act, and the Retailers'
8 Occupation Tax Act during the period from January 1, 2000
9 through December 31, 2000 are not at least 15% more than the
10 aggregate tax revenues from motor fuel and gasohol under
11 those Acts during the period from January 1, 1999 through
12 December 31, 1999, then beginning January 1, 2003 the tax is
13 imposed on motor fuel and gasohol at the 6.25% general rate.
14 With respect to gasohol, as defined in the Use Tax Act,
15 the tax imposed by this Act shall apply to 70% of the cost
16 price of property transferred as an incident to the sale of
17 service on or after January 1, 1990, and before July 1, 2003,
18 and to 100% of the cost price thereafter.
19 At the election of any registered serviceman made for
20 each fiscal year, sales of service in which the aggregate
21 annual cost price of tangible personal property transferred
22 as an incident to the sales of service is less than 35%, or
23 75% in the case of servicemen transferring prescription drugs
24 or servicemen engaged in graphic arts production, of the
25 aggregate annual total gross receipts from all sales of
26 service, the tax imposed by this Act shall be based on the
27 serviceman's cost price of the tangible personal property
28 transferred incident to the sale of those services.
29 The tax shall be imposed at the rate of 1% on food
30 prepared for immediate consumption and transferred incident
31 to a sale of service subject to this Act or the Service
32 Occupation Tax Act by an entity licensed under the Hospital
33 Licensing Act or the Nursing Home Care Act. The tax shall
34 also be imposed at the rate of 1% on food for human
-34- LRB9100968PTpk
1 consumption that is to be consumed off the premises where it
2 is sold (other than alcoholic beverages, soft drinks, and
3 food that has been prepared for immediate consumption and is
4 not otherwise included in this paragraph) and prescription
5 and nonprescription medicines, drugs, medical appliances,
6 modifications to a motor vehicle for the purpose of rendering
7 it usable by a disabled person, and insulin, urine testing
8 materials, syringes, and needles used by diabetics, for human
9 use. For the purposes of this Section, the term "soft
10 drinks" means any complete, finished, ready-to-use,
11 non-alcoholic drink, whether carbonated or not, including but
12 not limited to soda water, cola, fruit juice, vegetable
13 juice, carbonated water, and all other preparations commonly
14 known as soft drinks of whatever kind or description that are
15 contained in any closed or sealed can, carton, or container,
16 regardless of size. "Soft drinks" does not include coffee,
17 tea, non-carbonated water, infant formula, milk or milk
18 products as defined in the Grade A Pasteurized Milk and Milk
19 Products Act, or drinks containing 50% or more natural fruit
20 or vegetable juice.
21 Notwithstanding any other provisions of this Act, "food
22 for human consumption that is to be consumed off the premises
23 where it is sold" includes all food sold through a vending
24 machine, except soft drinks and food products that are
25 dispensed hot from a vending machine, regardless of the
26 location of the vending machine.
27 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
28 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
29 6-30-98; 90-606, eff. 6-30-98.)
30 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
31 Sec. 9. Each serviceman required or authorized to
32 collect the tax herein imposed shall pay to the Department
33 the amount of such tax at the time when he is required to
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1 file his return for the period during which such tax was
2 collectible, less a discount of 2.1% prior to January 1,
3 1990, and 1.75% on and after January 1, 1990, or $5 per
4 calendar year, whichever is greater, which is allowed to
5 reimburse the serviceman for expenses incurred in collecting
6 the tax, keeping records, preparing and filing returns,
7 remitting the tax and supplying data to the Department on
8 request.
9 Where such tangible personal property is sold under a
10 conditional sales contract, or under any other form of sale
11 wherein the payment of the principal sum, or a part thereof,
12 is extended beyond the close of the period for which the
13 return is filed, the serviceman, in collecting the tax may
14 collect, for each tax return period, only the tax applicable
15 to the part of the selling price actually received during
16 such tax return period.
17 Except as provided hereinafter in this Section, on or
18 before the twentieth day of each calendar month, such
19 serviceman shall file a return for the preceding calendar
20 month in accordance with reasonable rules and regulations to
21 be promulgated by the Department of Revenue. Such return
22 shall be filed on a form prescribed by the Department and
23 shall contain such information as the Department may
24 reasonably require.
25 The Department may require returns to be filed on a
26 quarterly basis. If so required, a return for each calendar
27 quarter shall be filed on or before the twentieth day of the
28 calendar month following the end of such calendar quarter.
29 The taxpayer shall also file a return with the Department for
30 each of the first two months of each calendar quarter, on or
31 before the twentieth day of the following calendar month,
32 stating:
33 1. The name of the seller;
34 2. The address of the principal place of business
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1 from which he engages in business as a serviceman in this
2 State;
3 3. The total amount of taxable receipts received by
4 him during the preceding calendar month, including
5 receipts from charge and time sales, but less all
6 deductions allowed by law;
7 4. The amount of credit provided in Section 2d of
8 this Act;
9 5. The amount of tax due;
10 5-5. The signature of the taxpayer; and
11 6. Such other reasonable information as the
12 Department may require.
13 If a taxpayer fails to sign a return within 30 days after
14 the proper notice and demand for signature by the Department,
15 the return shall be considered valid and any amount shown to
16 be due on the return shall be deemed assessed.
17 A serviceman may accept a Manufacturer's Purchase Credit
18 certification from a purchaser in satisfaction of Service Use
19 Tax as provided in Section 3-70 of the Service Use Tax Act if
20 the purchaser provides the appropriate documentation as
21 required by Section 3-70 of the Service Use Tax Act. A
22 Manufacturer's Purchase Credit certification, accepted by a
23 serviceman as provided in Section 3-70 of the Service Use Tax
24 Act, may be used by that serviceman to satisfy Service
25 Occupation Tax liability in the amount claimed in the
26 certification, not to exceed 6.25% of the receipts subject to
27 tax from a qualifying purchase.
28 If the serviceman's average monthly tax liability to the
29 Department does not exceed $200, the Department may authorize
30 his returns to be filed on a quarter annual basis, with the
31 return for January, February and March of a given year being
32 due by April 20 of such year; with the return for April, May
33 and June of a given year being due by July 20 of such year;
34 with the return for July, August and September of a given
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1 year being due by October 20 of such year, and with the
2 return for October, November and December of a given year
3 being due by January 20 of the following year.
4 If the serviceman's average monthly tax liability to the
5 Department does not exceed $50, the Department may authorize
6 his returns to be filed on an annual basis, with the return
7 for a given year being due by January 20 of the following
8 year.
9 Such quarter annual and annual returns, as to form and
10 substance, shall be subject to the same requirements as
11 monthly returns.
12 Notwithstanding any other provision in this Act
13 concerning the time within which a serviceman may file his
14 return, in the case of any serviceman who ceases to engage in
15 a kind of business which makes him responsible for filing
16 returns under this Act, such serviceman shall file a final
17 return under this Act with the Department not more than 1
18 month after discontinuing such business.
19 Beginning October 1, 1993, a taxpayer who has an average
20 monthly tax liability of $150,000 or more shall make all
21 payments required by rules of the Department by electronic
22 funds transfer. Beginning October 1, 1994, a taxpayer who
23 has an average monthly tax liability of $100,000 or more
24 shall make all payments required by rules of the Department
25 by electronic funds transfer. Beginning October 1, 1995, a
26 taxpayer who has an average monthly tax liability of $50,000
27 or more shall make all payments required by rules of the
28 Department by electronic funds transfer. The term "average
29 monthly tax liability" means the sum of the taxpayer's
30 liabilities under this Act, and under all other State and
31 local occupation and use tax laws administered by the
32 Department, for the immediately preceding calendar year
33 divided by 12.
34 Before August 1 of each year beginning in 1993, the
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1 Department shall notify all taxpayers required to make
2 payments by electronic funds transfer. All taxpayers
3 required to make payments by electronic funds transfer shall
4 make those payments for a minimum of one year beginning on
5 October 1.
6 Any taxpayer not required to make payments by electronic
7 funds transfer may make payments by electronic funds transfer
8 with the permission of the Department.
9 All taxpayers required to make payment by electronic
10 funds transfer and any taxpayers authorized to voluntarily
11 make payments by electronic funds transfer shall make those
12 payments in the manner authorized by the Department.
13 The Department shall adopt such rules as are necessary to
14 effectuate a program of electronic funds transfer and the
15 requirements of this Section.
16 Where a serviceman collects the tax with respect to the
17 selling price of tangible personal property which he sells
18 and the purchaser thereafter returns such tangible personal
19 property and the serviceman refunds the selling price thereof
20 to the purchaser, such serviceman shall also refund, to the
21 purchaser, the tax so collected from the purchaser. When
22 filing his return for the period in which he refunds such tax
23 to the purchaser, the serviceman may deduct the amount of the
24 tax so refunded by him to the purchaser from any other
25 Service Occupation Tax, Service Use Tax, Retailers'
26 Occupation Tax or Use Tax which such serviceman may be
27 required to pay or remit to the Department, as shown by such
28 return, provided that the amount of the tax to be deducted
29 shall previously have been remitted to the Department by such
30 serviceman. If the serviceman shall not previously have
31 remitted the amount of such tax to the Department, he shall
32 be entitled to no deduction hereunder upon refunding such tax
33 to the purchaser.
34 If experience indicates such action to be practicable,
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1 the Department may prescribe and furnish a combination or
2 joint return which will enable servicemen, who are required
3 to file returns hereunder and also under the Retailers'
4 Occupation Tax Act, the Use Tax Act or the Service Use Tax
5 Act, to furnish all the return information required by all
6 said Acts on the one form.
7 Where the serviceman has more than one business
8 registered with the Department under separate registrations
9 hereunder, such serviceman shall file separate returns for
10 each registered business.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the Local Government Tax Fund the revenue
13 realized for the preceding month from the 1% tax on sales of
14 food for human consumption which is to be consumed off the
15 premises where it is sold (other than alcoholic beverages,
16 soft drinks and food which has been prepared for immediate
17 consumption) and prescription and nonprescription medicines,
18 drugs, medical appliances and insulin, urine testing
19 materials, syringes and needles used by diabetics.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the County and Mass Transit District Fund 4%
22 of the revenue realized for the preceding month from the
23 6.25% general rate.
24 Beginning January 1, 2000, and so long as the rate
25 remains at 1.25%, each month the Department shall pay into
26 the County and Mass Transit District Fund 20% of the net
27 revenue realized for the preceding month from the 1.25% rate
28 on the cost price of motor fuel and gasohol.
29 Beginning January 1, 1990, each month the Department
30 shall pay into the Local Government Tax Fund 16% of the
31 revenue realized for the preceding month from the 6.25%
32 general rate on transfers of tangible personal property.
33 Beginning January 1, 2000, and so long as the rate
34 remains at 1.25%, each month the Department shall pay into
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1 the Local Government Tax Fund 80% of the net revenue realized
2 for the preceding month from the 1.25% rate on the cost price
3 of motor fuel and gasohol.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into
6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
7 and on and after July 1, 1989, 3.8% thereof shall be paid
8 into the Build Illinois Fund; provided, however, that if in
9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10 as the case may be, of the moneys received by the Department
11 and required to be paid into the Build Illinois Fund pursuant
12 to Section 3 of the Retailers' Occupation Tax Act, Section 9
13 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
14 Section 9 of the Service Occupation Tax Act, such Acts being
15 hereinafter called the "Tax Acts" and such aggregate of 2.2%
16 or 3.8%, as the case may be, of moneys being hereinafter
17 called the "Tax Act Amount", and (2) the amount transferred
18 to the Build Illinois Fund from the State and Local Sales Tax
19 Reform Fund shall be less than the Annual Specified Amount
20 (as defined in Section 3 of the Retailers' Occupation Tax
21 Act), an amount equal to the difference shall be immediately
22 paid into the Build Illinois Fund from other moneys received
23 by the Department pursuant to the Tax Acts; and further
24 provided, that if on the last business day of any month the
25 sum of (1) the Tax Act Amount required to be deposited into
26 the Build Illinois Account in the Build Illinois Fund during
27 such month and (2) the amount transferred during such month
28 to the Build Illinois Fund from the State and Local Sales Tax
29 Reform Fund shall have been less than 1/12 of the Annual
30 Specified Amount, an amount equal to the difference shall be
31 immediately paid into the Build Illinois Fund from other
32 moneys received by the Department pursuant to the Tax Acts;
33 and, further provided, that in no event shall the payments
34 required under the preceding proviso result in aggregate
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1 payments into the Build Illinois Fund pursuant to this clause
2 (b) for any fiscal year in excess of the greater of (i) the
3 Tax Act Amount or (ii) the Annual Specified Amount for such
4 fiscal year; and, further provided, that the amounts payable
5 into the Build Illinois Fund under this clause (b) shall be
6 payable only until such time as the aggregate amount on
7 deposit under each trust indenture securing Bonds issued and
8 outstanding pursuant to the Build Illinois Bond Act is
9 sufficient, taking into account any future investment income,
10 to fully provide, in accordance with such indenture, for the
11 defeasance of or the payment of the principal of, premium, if
12 any, and interest on the Bonds secured by such indenture and
13 on any Bonds expected to be issued thereafter and all fees
14 and costs payable with respect thereto, all as certified by
15 the Director of the Bureau of the Budget. If on the last
16 business day of any month in which Bonds are outstanding
17 pursuant to the Build Illinois Bond Act, the aggregate of the
18 moneys deposited in the Build Illinois Bond Account in the
19 Build Illinois Fund in such month shall be less than the
20 amount required to be transferred in such month from the
21 Build Illinois Bond Account to the Build Illinois Bond
22 Retirement and Interest Fund pursuant to Section 13 of the
23 Build Illinois Bond Act, an amount equal to such deficiency
24 shall be immediately paid from other moneys received by the
25 Department pursuant to the Tax Acts to the Build Illinois
26 Fund; provided, however, that any amounts paid to the Build
27 Illinois Fund in any fiscal year pursuant to this sentence
28 shall be deemed to constitute payments pursuant to clause (b)
29 of the preceding sentence and shall reduce the amount
30 otherwise payable for such fiscal year pursuant to clause (b)
31 of the preceding sentence. The moneys received by the
32 Department pursuant to this Act and required to be deposited
33 into the Build Illinois Fund are subject to the pledge, claim
34 and charge set forth in Section 12 of the Build Illinois Bond
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1 Act.
2 Subject to payment of amounts into the Build Illinois
3 Fund as provided in the preceding paragraph or in any
4 amendment thereto hereafter enacted, the following specified
5 monthly installment of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority provided under Section 8.25f of the
8 State Finance Act, but not in excess of the sums designated
9 as "Total Deposit", shall be deposited in the aggregate from
10 collections under Section 9 of the Use Tax Act, Section 9 of
11 the Service Use Tax Act, Section 9 of the Service Occupation
12 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
13 into the McCormick Place Expansion Project Fund in the
14 specified fiscal years.
15 Fiscal Year Total Deposit
16 1993 $0
17 1994 53,000,000
18 1995 58,000,000
19 1996 61,000,000
20 1997 64,000,000
21 1998 68,000,000
22 1999 71,000,000
23 2000 75,000,000
24 2001 80,000,000
25 2002 84,000,000
26 2003 89,000,000
27 2004 93,000,000
28 2005 97,000,000
29 2006 102,000,000
30 2007 and 106,000,000
31 each fiscal year
32 thereafter that bonds
33 are outstanding under
34 Section 13.2 of the
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1 Metropolitan Pier and
2 Exposition Authority
3 Act, but not after fiscal year 2029.
4 Beginning July 20, 1993 and in each month of each fiscal
5 year thereafter, one-eighth of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority for that fiscal year, less the amount
8 deposited into the McCormick Place Expansion Project Fund by
9 the State Treasurer in the respective month under subsection
10 (g) of Section 13 of the Metropolitan Pier and Exposition
11 Authority Act, plus cumulative deficiencies in the deposits
12 required under this Section for previous months and years,
13 shall be deposited into the McCormick Place Expansion Project
14 Fund, until the full amount requested for the fiscal year,
15 but not in excess of the amount specified above as "Total
16 Deposit", has been deposited.
17 Subject to payment of amounts into the Build Illinois
18 Fund and the McCormick Place Expansion Project Fund pursuant
19 to the preceding paragraphs or in any amendment thereto
20 hereafter enacted, each month the Department shall pay into
21 the Local Government Distributive Fund 0.4% of the net
22 revenue realized for the preceding month from the 5% general
23 rate or 0.4% of 80% of the net revenue realized for the
24 preceding month from the 6.25% general rate, as the case may
25 be, on the selling price of tangible personal property which
26 amount shall, subject to appropriation, be distributed as
27 provided in Section 2 of the State Revenue Sharing Act. No
28 payments or distributions pursuant to this paragraph shall be
29 made if the tax imposed by this Act on photoprocessing
30 products is declared unconstitutional, or if the proceeds
31 from such tax are unavailable for distribution because of
32 litigation.
33 Subject to payment of amounts into the Build Illinois
34 Fund, the McCormick Place Expansion Project Fund, and the
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1 Local Government Distributive Fund pursuant to the preceding
2 paragraphs or in any amendments thereto hereafter enacted,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% 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.
8 Remaining moneys received by the Department pursuant to
9 this Act shall be paid into the General Revenue Fund of the
10 State Treasury.
11 The Department may, upon separate written notice to a
12 taxpayer, require the taxpayer to prepare and file with the
13 Department on a form prescribed by the Department within not
14 less than 60 days after receipt of the notice an annual
15 information return for the tax year specified in the notice.
16 Such annual return to the Department shall include a
17 statement of gross receipts as shown by the taxpayer's last
18 Federal income tax return. If the total receipts of the
19 business as reported in the Federal income tax return do not
20 agree with the gross receipts reported to the Department of
21 Revenue for the same period, the taxpayer shall attach to his
22 annual return a schedule showing a reconciliation of the 2
23 amounts and the reasons for the difference. The taxpayer's
24 annual return to the Department shall also disclose the cost
25 of goods sold by the taxpayer during the year covered by such
26 return, opening and closing inventories of such goods for
27 such year, cost of goods used from stock or taken from stock
28 and given away by the taxpayer during such year, pay roll
29 information of the taxpayer's business during such year and
30 any additional reasonable information which the Department
31 deems would be helpful in determining the accuracy of the
32 monthly, quarterly or annual returns filed by such taxpayer
33 as hereinbefore provided for in this Section.
34 If the annual information return required by this Section
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1 is not filed when and as required, the taxpayer shall be
2 liable as follows:
3 (i) Until January 1, 1994, the taxpayer shall be
4 liable for a penalty equal to 1/6 of 1% of the tax due
5 from such taxpayer under this Act during the period to be
6 covered by the annual return for each month or fraction
7 of a month until such return is filed as required, the
8 penalty to be assessed and collected in the same manner
9 as any other penalty provided for in this Act.
10 (ii) On and after January 1, 1994, the taxpayer
11 shall be liable for a penalty as described in Section 3-4
12 of the Uniform Penalty and Interest Act.
13 The chief executive officer, proprietor, owner or highest
14 ranking manager shall sign the annual return to certify the
15 accuracy of the information contained therein. Any person
16 who willfully signs the annual return containing false or
17 inaccurate information shall be guilty of perjury and
18 punished accordingly. The annual return form prescribed by
19 the Department shall include a warning that the person
20 signing the return may be liable for perjury.
21 The foregoing portion of this Section concerning the
22 filing of an annual information return shall not apply to a
23 serviceman who is not required to file an income tax return
24 with the United States Government.
25 As soon as possible after the first day of each month,
26 upon certification of the Department of Revenue, the
27 Comptroller shall order transferred and the Treasurer shall
28 transfer from the General Revenue Fund to the Motor Fuel Tax
29 Fund an amount equal to 1.7% of 80% of the net revenue
30 realized under this Act for the second preceding month;
31 except that this transfer shall not be made for the months
32 February through June, 1992.
33 Net revenue realized for a month shall be the revenue
34 collected by the State pursuant to this Act, less the amount
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1 paid out during that month as refunds to taxpayers for
2 overpayment of liability.
3 For greater simplicity of administration, it shall be
4 permissible for manufacturers, importers and wholesalers
5 whose products are sold by numerous servicemen in Illinois,
6 and who wish to do so, to assume the responsibility for
7 accounting and paying to the Department all tax accruing
8 under this Act with respect to such sales, if the servicemen
9 who are affected do not make written objection to the
10 Department to this arrangement.
11 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
12 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
13 7-8-98.)
14 Section 20. The Retailers' Occupation Tax Act is amended
15 by changing Sections 2-10, 2d, and 3 as follows:
16 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
17 Sec. 2-10. Rate of tax. Unless otherwise provided in
18 this Section, the tax imposed by this Act is at the rate of
19 6.25% of gross receipts from sales of tangible personal
20 property made in the course of business.
21 With respect to motor fuel, as defined in Section 1.1 of
22 the Motor Fuel Tax Law, and gasohol, as defined in Section
23 3-40 of the Use Tax Act, the tax is imposed at the rate of
24 1.25%. If, however, the aggregate tax revenues from motor
25 fuel and gasohol under the Use Tax Act, the Service Use Tax
26 Act, the Service Occupation Tax Act, and the Retailers'
27 Occupation Tax Act during the period from January 1, 2000
28 through December 31, 2000 are not at least 15% more than the
29 aggregate tax revenues from motor fuel and gasohol under
30 those Acts during the period from January 1, 1999 through
31 December 31, 1999, then beginning January 1, 2003 the tax is
32 imposed on motor fuel and gasohol at the 6.25% general rate.
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1 With respect to gasohol, as defined in the Use Tax Act,
2 the tax imposed by this Act applies to 70% of the proceeds of
3 sales made on or after January 1, 1990, and before July 1,
4 2003, and to 100% of the proceeds of sales made thereafter.
5 With respect to food for human consumption that is to be
6 consumed off the premises where it is sold (other than
7 alcoholic beverages, soft drinks, and food that has been
8 prepared for immediate consumption) and prescription and
9 nonprescription medicines, drugs, medical appliances,
10 modifications to a motor vehicle for the purpose of rendering
11 it usable by a disabled person, and insulin, urine testing
12 materials, syringes, and needles used by diabetics, for human
13 use, the tax is imposed at the rate of 1%. For the purposes
14 of this Section, the term "soft drinks" means any complete,
15 finished, ready-to-use, non-alcoholic drink, whether
16 carbonated or not, including but not limited to soda water,
17 cola, fruit juice, vegetable juice, carbonated water, and all
18 other preparations commonly known as soft drinks of whatever
19 kind or description that are contained in any closed or
20 sealed bottle, can, carton, or container, regardless of size.
21 "Soft drinks" does not include coffee, tea, non-carbonated
22 water, infant formula, milk or milk products as defined in
23 the Grade A Pasteurized Milk and Milk Products Act, or drinks
24 containing 50% or more natural fruit or vegetable juice.
25 Notwithstanding any other provisions of this Act, "food
26 for human consumption that is to be consumed off the premises
27 where it is sold" includes all food sold through a vending
28 machine, except soft drinks and food products that are
29 dispensed hot from a vending machine, regardless of the
30 location of the vending machine.
31 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
32 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
33 6-30-98; 90-606, eff. 6-30-98.)
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1 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
2 Sec. 2d. Tax prepayment by motor fuel retailer. Any
3 person engaged in the business of selling motor fuel at
4 retail, as defined in the Motor Fuel Tax Law, and who is not
5 a licensed distributor or supplier, as defined in the Motor
6 Fuel Tax Law, shall prepay to his or her distributor,
7 supplier, or other reseller of motor fuel a portion of the
8 tax imposed by this Act if the distributor, supplier, or
9 other reseller of motor fuel is registered under Section 2a
10 or Section 2c of this Act. The prepayment requirement
11 provided for in this Section does not apply to liquid propane
12 gas.
13 The Retailers' Occupation Tax paid to the distributor,
14 supplier, or other reseller shall be an amount equal to 0.8
15 cents $0.04 per gallon of the motor fuel, except gasohol as
16 defined in Section 2-10 of this Act which shall be an amount
17 equal to 0.6 cents $0.03 per gallon, purchased from the
18 distributor, supplier, or other reseller.
19 Any person engaged in the business of selling motor fuel
20 at retail shall be entitled to a credit against tax due under
21 this Act in an amount equal to the tax paid to the
22 distributor, supplier, or other reseller.
23 Every distributor, supplier, or other reseller registered
24 as provided in Section 2a or Section 2c of this Act shall
25 remit the prepaid tax on all motor fuel that is due from any
26 person engaged in the business of selling at retail motor
27 fuel with the returns filed under Section 2f or Section 3 of
28 this Act, but the vendors discount provided in Section 3
29 shall not apply to the amount of prepaid tax that is
30 remitted. Any distributor or supplier who fails to properly
31 collect and remit the tax shall be liable for the tax. For
32 purposes of this Section, the prepaid tax is due on invoiced
33 gallons sold during a month by the 20th day of the following
34 month.
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1 (Source: P.A. 86-1475; 87-14.)
2 (35 ILCS 120/3) (from Ch. 120, par. 442)
3 Sec. 3. Except as provided in this Section, on or before
4 the twentieth day of each calendar month, every person
5 engaged in the business of selling tangible personal property
6 at retail in this State during the preceding calendar month
7 shall file a return with the Department, stating:
8 1. The name of the seller;
9 2. His residence address and the address of his
10 principal place of business and the address of the
11 principal place of business (if that is a different
12 address) from which he engages in the business of selling
13 tangible personal property at retail in this State;
14 3. Total amount of receipts received by him during
15 the preceding calendar month or quarter, as the case may
16 be, from sales of tangible personal property, and from
17 services furnished, by him during such preceding calendar
18 month or quarter;
19 4. Total amount received by him during the
20 preceding calendar month or quarter on charge and time
21 sales of tangible personal property, and from services
22 furnished, by him prior to the month or quarter for which
23 the return is filed;
24 5. Deductions allowed by law;
25 6. Gross receipts which were received by him during
26 the preceding calendar month or quarter and upon the
27 basis of which the tax is imposed;
28 7. The amount of credit provided in Section 2d of
29 this Act;
30 8. The amount of tax due;
31 9. The signature of the taxpayer; and
32 10. Such other reasonable information as the
33 Department may require.
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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 Each return shall be accompanied by the statement of
6 prepaid tax issued pursuant to Section 2e for which credit is
7 claimed.
8 A retailer may accept a Manufacturer's Purchase Credit
9 certification from a purchaser in satisfaction of Use Tax as
10 provided in Section 3-85 of the Use Tax Act if the purchaser
11 provides the appropriate documentation as required by Section
12 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
13 certification, accepted by a retailer as provided in Section
14 3-85 of the Use Tax Act, may be used by that retailer to
15 satisfy Retailers' Occupation Tax liability in the amount
16 claimed in the certification, not to exceed 6.25% of the
17 receipts subject to tax from a qualifying purchase.
18 The Department may require returns to be filed on a
19 quarterly basis. If so required, a return for each calendar
20 quarter shall be filed on or before the twentieth day of the
21 calendar month following the end of such calendar quarter.
22 The taxpayer shall also file a return with the Department for
23 each of the first two months of each calendar quarter, on or
24 before the twentieth day of the following calendar month,
25 stating:
26 1. The name of the seller;
27 2. The address of the principal place of business
28 from which he engages in the business of selling tangible
29 personal property at retail in this State;
30 3. The total amount of taxable receipts received by
31 him during the preceding calendar month from sales of
32 tangible personal property by him during such preceding
33 calendar month, including receipts from charge and time
34 sales, but less all deductions allowed by law;
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1 4. The amount of credit provided in Section 2d of
2 this Act;
3 5. The amount of tax due; and
4 6. Such other reasonable information as the
5 Department may require.
6 If a total amount of less than $1 is payable, refundable
7 or creditable, such amount shall be disregarded if it is less
8 than 50 cents and shall be increased to $1 if it is 50 cents
9 or more.
10 Beginning October 1, 1993, a taxpayer who has an average
11 monthly tax liability of $150,000 or more shall make all
12 payments required by rules of the Department by electronic
13 funds transfer. Beginning October 1, 1994, a taxpayer who
14 has an average monthly tax liability of $100,000 or more
15 shall make all payments required by rules of the Department
16 by electronic funds transfer. Beginning October 1, 1995, a
17 taxpayer who has an average monthly tax liability of $50,000
18 or more shall make all payments required by rules of the
19 Department by electronic funds transfer. The term "average
20 monthly tax liability" shall be the sum of the taxpayer's
21 liabilities under this Act, and under all other State and
22 local occupation and use tax laws administered by the
23 Department, for the immediately preceding calendar year
24 divided by 12.
25 Before August 1 of each year beginning in 1993, the
26 Department shall notify all taxpayers required to make
27 payments by electronic funds transfer. All taxpayers
28 required to make payments by electronic funds transfer shall
29 make those payments for a minimum of one year beginning on
30 October 1.
31 Any taxpayer not required to make payments by electronic
32 funds transfer may make payments by electronic funds transfer
33 with the permission of the Department.
34 All taxpayers required to make payment by electronic
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1 funds transfer and any taxpayers authorized to voluntarily
2 make payments by electronic funds transfer shall make those
3 payments in the manner authorized by the Department.
4 The Department shall adopt such rules as are necessary to
5 effectuate a program of electronic funds transfer and the
6 requirements of this Section.
7 Any amount which is required to be shown or reported on
8 any return or other document under this Act shall, if such
9 amount is not a whole-dollar amount, be increased to the
10 nearest whole-dollar amount in any case where the fractional
11 part of a dollar is 50 cents or more, and decreased to the
12 nearest whole-dollar amount where the fractional part of a
13 dollar is less than 50 cents.
14 If the retailer is otherwise required to file a monthly
15 return and if the retailer's average monthly tax liability to
16 the Department does not exceed $200, the Department may
17 authorize his returns to be filed on a quarter annual basis,
18 with the return for January, February and March of a given
19 year being due by April 20 of such year; with the return for
20 April, May and June of a given year being due by July 20 of
21 such year; with the return for July, August and September of
22 a given year being due by October 20 of such year, and with
23 the return for October, November and December of a given year
24 being due by January 20 of the following year.
25 If the retailer is otherwise required to file a monthly
26 or quarterly return and if the retailer's average monthly tax
27 liability with the Department does not exceed $50, the
28 Department may authorize his returns to be filed on an annual
29 basis, with the return for a given year being due by January
30 20 of the following year.
31 Such quarter annual and annual returns, as to form and
32 substance, shall be subject to the same requirements as
33 monthly returns.
34 Notwithstanding any other provision in this Act
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1 concerning the time within which a retailer may file his
2 return, in the case of any retailer who ceases to engage in a
3 kind of business which makes him responsible for filing
4 returns under this Act, such retailer shall file a final
5 return under this Act with the Department not more than one
6 month after discontinuing such business.
7 Where the same person has more than one business
8 registered with the Department under separate registrations
9 under this Act, such person may not file each return that is
10 due as a single return covering all such registered
11 businesses, but shall file separate returns for each such
12 registered business.
13 In addition, with respect to motor vehicles, watercraft,
14 aircraft, and trailers that are required to be registered
15 with an agency of this State, every retailer selling this
16 kind of tangible personal property shall file, with the
17 Department, upon a form to be prescribed and supplied by the
18 Department, a separate return for each such item of tangible
19 personal property which the retailer sells, except that
20 where, in the same transaction, a retailer of aircraft,
21 watercraft, motor vehicles or trailers transfers more than
22 one aircraft, watercraft, motor vehicle or trailer to another
23 aircraft, watercraft, motor vehicle retailer or trailer
24 retailer for the purpose of resale, that seller for resale
25 may report the transfer of all aircraft, watercraft, motor
26 vehicles or trailers involved in that transaction to the
27 Department on the same uniform invoice-transaction reporting
28 return form. For purposes of this Section, "watercraft"
29 means a Class 2, Class 3, or Class 4 watercraft as defined in
30 Section 3-2 of the Boat Registration and Safety Act, a
31 personal watercraft, or any boat equipped with an inboard
32 motor.
33 Any retailer who sells only motor vehicles, watercraft,
34 aircraft, or trailers that are required to be registered with
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1 an agency of this State, so that all retailers' occupation
2 tax liability is required to be reported, and is reported, on
3 such transaction reporting returns and who is not otherwise
4 required to file monthly or quarterly returns, need not file
5 monthly or quarterly returns. However, those retailers shall
6 be required to file returns on an annual basis.
7 The transaction reporting return, in the case of motor
8 vehicles or trailers that are required to be registered with
9 an agency of this State, shall be the same document as the
10 Uniform Invoice referred to in Section 5-402 of The Illinois
11 Vehicle Code and must show the name and address of the
12 seller; the name and address of the purchaser; the amount of
13 the selling price including the amount allowed by the
14 retailer for traded-in property, if any; the amount allowed
15 by the retailer for the traded-in tangible personal property,
16 if any, to the extent to which Section 1 of this Act allows
17 an exemption for the value of traded-in property; the balance
18 payable after deducting such trade-in allowance from the
19 total selling price; the amount of tax due from the retailer
20 with respect to such transaction; the amount of tax collected
21 from the purchaser by the retailer on such transaction (or
22 satisfactory evidence that such tax is not due in that
23 particular instance, if that is claimed to be the fact); the
24 place and date of the sale; a sufficient identification of
25 the property sold; such other information as is required in
26 Section 5-402 of The Illinois Vehicle Code, and such other
27 information as the Department may reasonably require.
28 The transaction reporting return in the case of
29 watercraft or aircraft must show the name and address of the
30 seller; the name and address of the purchaser; the amount of
31 the selling price including the amount allowed by the
32 retailer for traded-in property, if any; the amount allowed
33 by the retailer for the traded-in tangible personal property,
34 if any, to the extent to which Section 1 of this Act allows
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1 an exemption for the value of traded-in property; the balance
2 payable after deducting such trade-in allowance from the
3 total selling price; the amount of tax due from the retailer
4 with respect to such transaction; the amount of tax collected
5 from the purchaser by the retailer on such transaction (or
6 satisfactory evidence that such tax is not due in that
7 particular instance, if that is claimed to be the fact); the
8 place and date of the sale, a sufficient identification of
9 the property sold, and such other information as the
10 Department may reasonably require.
11 Such transaction reporting return shall be filed not
12 later than 20 days after the day of delivery of the item that
13 is being sold, but may be filed by the retailer at any time
14 sooner than that if he chooses to do so. The transaction
15 reporting return and tax remittance or proof of exemption
16 from the Illinois use tax may be transmitted to the
17 Department by way of the State agency with which, or State
18 officer with whom the tangible personal property must be
19 titled or registered (if titling or registration is required)
20 if the Department and such agency or State officer determine
21 that this procedure will expedite the processing of
22 applications for title or registration.
23 With each such transaction reporting return, the retailer
24 shall remit the proper amount of tax due (or shall submit
25 satisfactory evidence that the sale is not taxable if that is
26 the case), to the Department or its agents, whereupon the
27 Department shall issue, in the purchaser's name, a use tax
28 receipt (or a certificate of exemption if the Department is
29 satisfied that the particular sale is tax exempt) which such
30 purchaser may submit to the agency with which, or State
31 officer with whom, he must title or register the tangible
32 personal property that is involved (if titling or
33 registration is required) in support of such purchaser's
34 application for an Illinois certificate or other evidence of
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1 title or registration to such tangible personal property.
2 No retailer's failure or refusal to remit tax under this
3 Act precludes a user, who has paid the proper tax to the
4 retailer, from obtaining his certificate of title or other
5 evidence of title or registration (if titling or registration
6 is required) upon satisfying the Department that such user
7 has paid the proper tax (if tax is due) to the retailer. The
8 Department shall adopt appropriate rules to carry out the
9 mandate of this paragraph.
10 If the user who would otherwise pay tax to the retailer
11 wants the transaction reporting return filed and the payment
12 of the tax or proof of exemption made to the Department
13 before the retailer is willing to take these actions and such
14 user has not paid the tax to the retailer, such user may
15 certify to the fact of such delay by the retailer and may
16 (upon the Department being satisfied of the truth of such
17 certification) transmit the information required by the
18 transaction reporting return and the remittance for tax or
19 proof of exemption directly to the Department and obtain his
20 tax receipt or exemption determination, in which event the
21 transaction reporting return and tax remittance (if a tax
22 payment was required) shall be credited by the Department to
23 the proper retailer's account with the Department, but
24 without the 2.1% or 1.75% discount provided for in this
25 Section being allowed. When the user pays the tax directly
26 to the Department, he shall pay the tax in the same amount
27 and in the same form in which it would be remitted if the tax
28 had been remitted to the Department by the retailer.
29 Refunds made by the seller during the preceding return
30 period to purchasers, on account of tangible personal
31 property returned to the seller, shall be allowed as a
32 deduction under subdivision 5 of his monthly or quarterly
33 return, as the case may be, in case the seller had
34 theretofore included the receipts from the sale of such
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1 tangible personal property in a return filed by him and had
2 paid the tax imposed by this Act with respect to such
3 receipts.
4 Where the seller is a corporation, the return filed on
5 behalf of such corporation shall be signed by the president,
6 vice-president, secretary or treasurer or by the properly
7 accredited agent of such corporation.
8 Where the seller is a limited liability company, the
9 return filed on behalf of the limited liability company shall
10 be signed by a manager, member, or properly accredited agent
11 of the limited liability company.
12 Except as provided in this Section, the retailer filing
13 the return under this Section shall, at the time of filing
14 such return, pay to the Department the amount of tax imposed
15 by this Act less a discount of 2.1% prior to January 1, 1990
16 and 1.75% on and after January 1, 1990, or $5 per calendar
17 year, whichever is greater, which is allowed to reimburse the
18 retailer for the expenses incurred in keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. Any prepayment made
21 pursuant to Section 2d of this Act shall be included in the
22 amount on which such 2.1% or 1.75% discount is computed. In
23 the case of retailers who report and pay the tax on a
24 transaction by transaction basis, as provided in this
25 Section, such discount shall be taken with each such tax
26 remittance instead of when such retailer files his periodic
27 return.
28 If the taxpayer's average monthly tax liability to the
29 Department under this Act, the Use Tax Act, the Service
30 Occupation Tax Act, and the Service Use Tax Act, excluding
31 any liability for prepaid sales tax to be remitted in
32 accordance with Section 2d of this Act, was $10,000 or more
33 during the preceding 4 complete calendar quarters, he shall
34 file a return with the Department each month by the 20th day
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1 of the month next following the month during which such tax
2 liability is incurred and shall make payments to the
3 Department on or before the 7th, 15th, 22nd and last day of
4 the month during which such liability is incurred. If the
5 month during which such tax liability is incurred began prior
6 to January 1, 1985, each payment shall be in an amount equal
7 to 1/4 of the taxpayer's actual liability for the month or an
8 amount set by the Department not to exceed 1/4 of the average
9 monthly liability of the taxpayer to the Department for the
10 preceding 4 comple