[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB1475
LRB9102381PTpk
1 AN ACT concerning 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 Section 9 as follows:
6 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
7 Sec. 9. Except as to motor vehicles, watercraft,
8 aircraft, and trailers that are required to be registered
9 with an agency of this State, each retailer required or
10 authorized to collect the tax imposed by this Act shall pay
11 to the Department the amount of such tax (except as otherwise
12 provided) at the time when he is required to file his return
13 for the period during which such tax was collected, less a
14 discount of 2.1% prior to January 1, 1990, and 1.75% on and
15 after January 1, 1990, or $5 per calendar year, whichever is
16 greater, which is allowed to reimburse the retailer for
17 expenses incurred in collecting the tax, keeping records,
18 preparing and filing returns, remitting the tax and supplying
19 data to the Department on request. In the case of retailers
20 who report and pay the tax on a transaction by transaction
21 basis, as provided in this Section, such discount shall be
22 taken with each such tax remittance instead of when such
23 retailer files his periodic return. A retailer need not
24 remit that part of any tax collected by him to the extent
25 that he is required to remit and does remit the tax imposed
26 by the Retailers' Occupation Tax Act, with respect to the
27 sale of the same property.
28 Where such tangible personal property is sold under a
29 conditional sales contract, or under any other form of sale
30 wherein the payment of the principal sum, or a part thereof,
31 is extended beyond the close of the period for which the
-2- LRB9102381PTpk
1 return is filed, the retailer, in collecting the tax (except
2 as to motor vehicles, watercraft, aircraft, and trailers that
3 are required to be registered with an agency of this State),
4 may collect for each tax return period, only the tax
5 applicable to that part of the selling price actually
6 received during such tax return period.
7 Except as provided in this Section, on or before the
8 twentieth day of each calendar month, such retailer shall
9 file a return for the preceding calendar month. Such return
10 shall be filed on forms prescribed by the Department and
11 shall furnish such information as the Department may
12 reasonably require.
13 The Department may require returns to be filed on a
14 quarterly basis. If so required, a return for each calendar
15 quarter shall be filed on or before the twentieth day of the
16 calendar month following the end of such calendar quarter.
17 The taxpayer shall also file a return with the Department for
18 each of the first two months of each calendar quarter, on or
19 before the twentieth day of the following calendar month,
20 stating:
21 1. The name of the seller;
22 2. The address of the principal place of business
23 from which he engages in the business of selling tangible
24 personal property at retail in this State;
25 3. The total amount of taxable receipts received by
26 him during the preceding calendar month from sales of
27 tangible personal property by him during such preceding
28 calendar month, including receipts from charge and time
29 sales, but less all deductions allowed by law;
30 4. The amount of credit provided in Section 2d of
31 this Act;
32 5. The amount of tax due;
33 5-5. The signature of the taxpayer; and
34 6. Such other reasonable information as the
-3- LRB9102381PTpk
1 Department may require.
2 If a taxpayer fails to sign a return within 30 days after
3 the proper notice and demand for signature by the Department,
4 the return shall be considered valid and any amount shown to
5 be due on the return shall be deemed assessed.
6 Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who has
10 an average monthly tax liability of $100,000 or more shall
11 make all payments required by rules of the Department by
12 electronic funds transfer. Beginning October 1, 1995, a
13 taxpayer who has an average monthly tax liability of $50,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. The term "average
16 monthly tax liability" means the sum of the taxpayer's
17 liabilities under this Act, and under all other State and
18 local occupation and use tax laws administered by the
19 Department, for the immediately preceding calendar year
20 divided by 12.
21 Before August 1 of each year beginning in 1993, the
22 Department shall notify all taxpayers required to make
23 payments by electronic funds transfer. All taxpayers required
24 to make payments by electronic funds transfer shall make
25 those payments for a minimum of one year beginning on October
26 1.
27 Any taxpayer not required to make payments by electronic
28 funds transfer may make payments by electronic funds transfer
29 with the permission of the Department.
30 All taxpayers required to make payment by electronic
31 funds transfer and any taxpayers authorized to voluntarily
32 make payments by electronic funds transfer shall make those
33 payments in the manner authorized by the Department.
34 The Department shall adopt such rules as are necessary to
-4- LRB9102381PTpk
1 effectuate a program of electronic funds transfer and the
2 requirements of this Section.
3 If the taxpayer's average monthly tax liability to the
4 Department under this Act, the Retailers' Occupation Tax Act,
5 the Service Occupation Tax Act, the Service Use Tax Act was
6 $10,000 or more during the preceding 4 complete calendar
7 quarters, he shall file a return with the Department each
8 month by the 20th day of the month next following the month
9 during which such tax liability is incurred and shall make
10 payments to the Department on or before the 7th, 15th, 22nd
11 and last day of the month during which such liability is
12 incurred. If the month during which such tax liability is
13 incurred began prior to January 1, 1985, each payment shall
14 be in an amount equal to 1/4 of the taxpayer's actual
15 liability for the month or an amount set by the Department
16 not to exceed 1/4 of the average monthly liability of the
17 taxpayer to the Department for the preceding 4 complete
18 calendar quarters (excluding the month of highest liability
19 and the month of lowest liability in such 4 quarter period).
20 If the month during which such tax liability is incurred
21 begins on or after January 1, 1985, and prior to January 1,
22 1987, each payment shall be in an amount equal to 22.5% of
23 the taxpayer's actual liability for the month or 27.5% of the
24 taxpayer's liability for the same calendar month of the
25 preceding year. If the month during which such tax liability
26 is incurred begins on or after January 1, 1987, and prior to
27 January 1, 1988, each payment shall be in an amount equal to
28 22.5% of the taxpayer's actual liability for the month or
29 26.25% of the taxpayer's liability for the same calendar
30 month of the preceding year. If the month during which such
31 tax liability is incurred begins on or after January 1, 1988,
32 and prior to January 1, 1989, or begins on or after January
33 1, 1996 and before January 1, 2000, each payment shall be in
34 an amount equal to 22.5% of the taxpayer's actual liability
-5- LRB9102381PTpk
1 for the month or 25% of the taxpayer's liability for the same
2 calendar month of the preceding year. If the month during
3 which such tax liability is incurred begins on or after
4 January 1, 1989, and prior to January 1, 1996, each payment
5 shall be in an amount equal to 22.5% of the taxpayer's actual
6 liability for the month or 25% of the taxpayer's liability
7 for the same calendar month of the preceding year or 100% of
8 the taxpayer's actual liability for the quarter monthly
9 reporting period. If the month during which the tax liability
10 is incurred begins on or after January 1, 2000, each payment
11 must be in an amount equal to (i) 22.5% of the taxpayer's
12 actual liability for the month or (ii) 12.5% of the
13 taxpayer's liability for the same calendar month of the
14 preceding year with 80% of the taxpayer's actual liability
15 for the year due on or before December 15th and 100% of the
16 taxpayer's actual liability for the year due on or before the
17 immediately following January 15th. The amount of such
18 quarter monthly payments shall be credited against the final
19 tax liability of the taxpayer's return for that month. Once
20 applicable, the requirement of the making of quarter monthly
21 payments to the Department shall continue until such
22 taxpayer's average monthly liability to the Department during
23 the preceding 4 complete calendar quarters (excluding the
24 month of highest liability and the month of lowest liability)
25 is less than $9,000, or until such taxpayer's average monthly
26 liability to the Department as computed for each calendar
27 quarter of the 4 preceding complete calendar quarter period
28 is less than $10,000. However, if a taxpayer can show the
29 Department that a substantial change in the taxpayer's
30 business has occurred which causes the taxpayer to anticipate
31 that his average monthly tax liability for the reasonably
32 foreseeable future will fall below $10,000, then such
33 taxpayer may petition the Department for change in such
34 taxpayer's reporting status. The Department shall change
-6- LRB9102381PTpk
1 such taxpayer's reporting status unless it finds that such
2 change is seasonal in nature and not likely to be long term.
3 If any such quarter monthly payment is not paid at the time
4 or in the amount required by this Section, then the taxpayer
5 shall be liable for penalties and interest on the difference
6 between the minimum amount due and the amount of such quarter
7 monthly payment actually and timely paid, except insofar as
8 the taxpayer has previously made payments for that month to
9 the Department in excess of the minimum payments previously
10 due as provided in this Section. The Department shall make
11 reasonable rules and regulations to govern the quarter
12 monthly payment amount and quarter monthly payment dates for
13 taxpayers who file on other than a calendar monthly basis.
14 If any such payment provided for in this Section exceeds
15 the taxpayer's liabilities under this Act, the Retailers'
16 Occupation Tax Act, the Service Occupation Tax Act and the
17 Service Use Tax Act, as shown by an original monthly return,
18 the Department shall issue to the taxpayer a credit
19 memorandum no later than 30 days after the date of payment,
20 which memorandum may be submitted by the taxpayer to the
21 Department in payment of tax liability subsequently to be
22 remitted by the taxpayer to the Department or be assigned by
23 the taxpayer to a similar taxpayer under this Act, the
24 Retailers' Occupation Tax Act, the Service Occupation Tax Act
25 or the Service Use Tax Act, in accordance with reasonable
26 rules and regulations to be prescribed by the Department,
27 except that if such excess payment is shown on an original
28 monthly return and is made after December 31, 1986, no credit
29 memorandum shall be issued, unless requested by the taxpayer.
30 If no such request is made, the taxpayer may credit such
31 excess payment against tax liability subsequently to be
32 remitted by the taxpayer to the Department under this Act,
33 the Retailers' Occupation Tax Act, the Service Occupation Tax
34 Act or the Service Use Tax Act, in accordance with reasonable
-7- LRB9102381PTpk
1 rules and regulations prescribed by the Department. If the
2 Department subsequently determines that all or any part of
3 the credit taken was not actually due to the taxpayer, the
4 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
5 by 2.1% or 1.75% of the difference between the credit taken
6 and that actually due, and the taxpayer shall be liable for
7 penalties and interest on such difference.
8 If the retailer is otherwise required to file a monthly
9 return and if the retailer's average monthly tax liability to
10 the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February, and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the retailer is otherwise required to file a monthly
20 or quarterly return and if the retailer's average monthly tax
21 liability to the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a retailer may file his
30 return, in the case of any retailer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such retailer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
-8- LRB9102381PTpk
1 In addition, with respect to motor vehicles, watercraft,
2 aircraft, and trailers that are required to be registered
3 with an agency of this State, every retailer selling this
4 kind of tangible personal property shall file, with the
5 Department, upon a form to be prescribed and supplied by the
6 Department, a separate return for each such item of tangible
7 personal property which the retailer sells, except that
8 where, in the same transaction, a retailer of aircraft,
9 watercraft, motor vehicles or trailers transfers more than
10 one aircraft, watercraft, motor vehicle or trailer to another
11 aircraft, watercraft, motor vehicle or trailer retailer for
12 the purpose of resale, that seller for resale may report the
13 transfer of all the aircraft, watercraft, motor vehicles or
14 trailers involved in that transaction to the Department on
15 the same uniform invoice-transaction reporting return form.
16 For purposes of this Section, "watercraft" means a Class 2,
17 Class 3, or Class 4 watercraft as defined in Section 3-2 of
18 the Boat Registration and Safety Act, a personal watercraft,
19 or any boat equipped with an inboard motor.
20 The transaction reporting return in the case of motor
21 vehicles or trailers that are required to be registered with
22 an agency of this State, shall be the same document as the
23 Uniform Invoice referred to in Section 5-402 of the Illinois
24 Vehicle Code and must show the name and address of the
25 seller; the name and address of the purchaser; the amount of
26 the selling price including the amount allowed by the
27 retailer for traded-in property, if any; the amount allowed
28 by the retailer for the traded-in tangible personal property,
29 if any, to the extent to which Section 2 of this Act allows
30 an exemption for the value of traded-in property; the balance
31 payable after deducting such trade-in allowance from the
32 total selling price; the amount of tax due from the retailer
33 with respect to such transaction; the amount of tax collected
34 from the purchaser by the retailer on such transaction (or
-9- LRB9102381PTpk
1 satisfactory evidence that such tax is not due in that
2 particular instance, if that is claimed to be the fact); the
3 place and date of the sale; a sufficient identification of
4 the property sold; such other information as is required in
5 Section 5-402 of the Illinois Vehicle Code, and such other
6 information as the Department may reasonably require.
7 The transaction reporting return in the case of
8 watercraft and aircraft must show the name and address of the
9 seller; the name and address of the purchaser; the amount of
10 the selling price including the amount allowed by the
11 retailer for traded-in property, if any; the amount allowed
12 by the retailer for the traded-in tangible personal property,
13 if any, to the extent to which Section 2 of this Act allows
14 an exemption for the value of traded-in property; the balance
15 payable after deducting such trade-in allowance from the
16 total selling price; the amount of tax due from the retailer
17 with respect to such transaction; the amount of tax collected
18 from the purchaser by the retailer on such transaction (or
19 satisfactory evidence that such tax is not due in that
20 particular instance, if that is claimed to be the fact); the
21 place and date of the sale, a sufficient identification of
22 the property sold, and such other information as the
23 Department may reasonably require.
24 Such transaction reporting return shall be filed not
25 later than 20 days after the date of delivery of the item
26 that is being sold, but may be filed by the retailer at any
27 time sooner than that if he chooses to do so. The
28 transaction reporting return and tax remittance or proof of
29 exemption from the tax that is imposed by this Act may be
30 transmitted to the Department by way of the State agency with
31 which, or State officer with whom, the tangible personal
32 property must be titled or registered (if titling or
33 registration is required) if the Department and such agency
34 or State officer determine that this procedure will expedite
-10- LRB9102381PTpk
1 the processing of applications for title or registration.
2 With each such transaction reporting return, the retailer
3 shall remit the proper amount of tax due (or shall submit
4 satisfactory evidence that the sale is not taxable if that is
5 the case), to the Department or its agents, whereupon the
6 Department shall issue, in the purchaser's name, a tax
7 receipt (or a certificate of exemption if the Department is
8 satisfied that the particular sale is tax exempt) which such
9 purchaser may submit to the agency with which, or State
10 officer with whom, he must title or register the tangible
11 personal property that is involved (if titling or
12 registration is required) in support of such purchaser's
13 application for an Illinois certificate or other evidence of
14 title or registration to such tangible personal property.
15 No retailer's failure or refusal to remit tax under this
16 Act precludes a user, who has paid the proper tax to the
17 retailer, from obtaining his certificate of title or other
18 evidence of title or registration (if titling or registration
19 is required) upon satisfying the Department that such user
20 has paid the proper tax (if tax is due) to the retailer. The
21 Department shall adopt appropriate rules to carry out the
22 mandate of this paragraph.
23 If the user who would otherwise pay tax to the retailer
24 wants the transaction reporting return filed and the payment
25 of tax or proof of exemption made to the Department before
26 the retailer is willing to take these actions and such user
27 has not paid the tax to the retailer, such user may certify
28 to the fact of such delay by the retailer, and may (upon the
29 Department being satisfied of the truth of such
30 certification) transmit the information required by the
31 transaction reporting return and the remittance for tax or
32 proof of exemption directly to the Department and obtain his
33 tax receipt or exemption determination, in which event the
34 transaction reporting return and tax remittance (if a tax
-11- LRB9102381PTpk
1 payment was required) shall be credited by the Department to
2 the proper retailer's account with the Department, but
3 without the 2.1% or 1.75% discount provided for in this
4 Section being allowed. When the user pays the tax directly
5 to the Department, he shall pay the tax in the same amount
6 and in the same form in which it would be remitted if the tax
7 had been remitted to the Department by the retailer.
8 Where a retailer collects the tax with respect to the
9 selling price of tangible personal property which he sells
10 and the purchaser thereafter returns such tangible personal
11 property and the retailer refunds the selling price thereof
12 to the purchaser, such retailer shall also refund, to the
13 purchaser, the tax so collected from the purchaser. When
14 filing his return for the period in which he refunds such tax
15 to the purchaser, the retailer may deduct the amount of the
16 tax so refunded by him to the purchaser from any other use
17 tax which such retailer may be required to pay or remit to
18 the Department, as shown by such return, if the amount of the
19 tax to be deducted was previously remitted to the Department
20 by such retailer. If the retailer has not previously
21 remitted the amount of such tax to the Department, he is
22 entitled to no deduction under this Act upon refunding such
23 tax to the purchaser.
24 Any retailer filing a return under this Section shall
25 also include (for the purpose of paying tax thereon) the
26 total tax covered by such return upon the selling price of
27 tangible personal property purchased by him at retail from a
28 retailer, but as to which the tax imposed by this Act was not
29 collected from the retailer filing such return, and such
30 retailer shall remit the amount of such tax to the Department
31 when filing such return.
32 If experience indicates such action to be practicable,
33 the Department may prescribe and furnish a combination or
34 joint return which will enable retailers, who are required to
-12- LRB9102381PTpk
1 file returns hereunder and also under the Retailers'
2 Occupation Tax Act, to furnish all the return information
3 required by both Acts on the one form.
4 Where the retailer has more than one business registered
5 with the Department under separate registration under this
6 Act, such retailer may not file each return that is due as a
7 single return covering all such registered businesses, but
8 shall file separate returns for each such registered
9 business.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the State and Local Sales Tax Reform Fund, a
12 special fund in the State Treasury which is hereby created,
13 the net revenue realized for the preceding month from the 1%
14 tax on sales of food for human consumption which is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks and food which has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances and
19 insulin, urine testing materials, syringes and needles used
20 by diabetics.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the County and Mass Transit District Fund 4%
23 of the net revenue realized for the preceding month from the
24 6.25% general rate on the selling price of tangible personal
25 property which is purchased outside Illinois at retail from a
26 retailer and which is titled or registered by an agency of
27 this State's government.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the State and Local Sales Tax Reform Fund, a
30 special fund in the State Treasury, 20% of the net revenue
31 realized for the preceding month from the 6.25% general rate
32 on the selling price of tangible personal property, other
33 than tangible personal property which is purchased outside
34 Illinois at retail from a retailer and which is titled or
-13- LRB9102381PTpk
1 registered by an agency of this State's government.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the Local Government Tax Fund 16% of the net
4 revenue realized for the preceding month from the 6.25%
5 general rate on the selling price of tangible personal
6 property which is purchased outside Illinois at retail from a
7 retailer and which is titled or registered by an agency of
8 this State's government.
9 Of the remainder of the moneys received by the Department
10 pursuant to this Act, (a) 1.75% thereof shall be paid into
11 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
12 and on and after July 1, 1989, 3.8% thereof shall be paid
13 into the Build Illinois Fund; provided, however, that if in
14 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
15 as the case may be, of the moneys received by the Department
16 and required to be paid into the Build Illinois Fund pursuant
17 to Section 3 of the Retailers' Occupation Tax Act, Section 9
18 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
19 Section 9 of the Service Occupation Tax Act, such Acts being
20 hereinafter called the "Tax Acts" and such aggregate of 2.2%
21 or 3.8%, as the case may be, of moneys being hereinafter
22 called the "Tax Act Amount", and (2) the amount transferred
23 to the Build Illinois Fund from the State and Local Sales Tax
24 Reform Fund shall be less than the Annual Specified Amount
25 (as defined in Section 3 of the Retailers' Occupation Tax
26 Act), an amount equal to the difference shall be immediately
27 paid into the Build Illinois Fund from other moneys received
28 by the Department pursuant to the Tax Acts; and further
29 provided, that if on the last business day of any month the
30 sum of (1) the Tax Act Amount required to be deposited into
31 the Build Illinois Bond Account in the Build Illinois Fund
32 during such month and (2) the amount transferred during such
33 month to the Build Illinois Fund from the State and Local
34 Sales Tax Reform Fund shall have been less than 1/12 of the
-14- LRB9102381PTpk
1 Annual Specified Amount, an amount equal to the difference
2 shall be immediately paid into the Build Illinois Fund from
3 other moneys received by the Department pursuant to the Tax
4 Acts; and, further provided, that in no event shall the
5 payments required under the preceding proviso result in
6 aggregate payments into the Build Illinois Fund pursuant to
7 this clause (b) for any fiscal year in excess of the greater
8 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
9 for such fiscal year; and, further provided, that the amounts
10 payable into the Build Illinois Fund under this clause (b)
11 shall be payable only until such time as the aggregate amount
12 on deposit under each trust indenture securing Bonds issued
13 and outstanding pursuant to the Build Illinois Bond Act is
14 sufficient, taking into account any future investment income,
15 to fully provide, in accordance with such indenture, for the
16 defeasance of or the payment of the principal of, premium, if
17 any, and interest on the Bonds secured by such indenture and
18 on any Bonds expected to be issued thereafter and all fees
19 and costs payable with respect thereto, all as certified by
20 the Director of the Bureau of the Budget. If on the last
21 business day of any month in which Bonds are outstanding
22 pursuant to the Build Illinois Bond Act, the aggregate of the
23 moneys deposited in the Build Illinois Bond Account in the
24 Build Illinois Fund in such month shall be less than the
25 amount required to be transferred in such month from the
26 Build Illinois Bond Account to the Build Illinois Bond
27 Retirement and Interest Fund pursuant to Section 13 of the
28 Build Illinois Bond Act, an amount equal to such deficiency
29 shall be immediately paid from other moneys received by the
30 Department pursuant to the Tax Acts to the Build Illinois
31 Fund; provided, however, that any amounts paid to the Build
32 Illinois Fund in any fiscal year pursuant to this sentence
33 shall be deemed to constitute payments pursuant to clause (b)
34 of the preceding sentence and shall reduce the amount
-15- LRB9102381PTpk
1 otherwise payable for such fiscal year pursuant to clause (b)
2 of the preceding sentence. The moneys received by the
3 Department pursuant to this Act and required to be deposited
4 into the Build Illinois Fund are subject to the pledge, claim
5 and charge set forth in Section 12 of the Build Illinois Bond
6 Act.
7 Subject to payment of amounts into the Build Illinois
8 Fund as provided in the preceding paragraph or in any
9 amendment thereto hereafter enacted, the following specified
10 monthly installment of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority provided under Section 8.25f of the
13 State Finance Act, but not in excess of the sums designated
14 as "Total Deposit", shall be deposited in the aggregate from
15 collections under Section 9 of the Use Tax Act, Section 9 of
16 the Service Use Tax Act, Section 9 of the Service Occupation
17 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
18 into the McCormick Place Expansion Project Fund in the
19 specified fiscal years.
20 Fiscal Year Total Deposit
21 1993 $0
22 1994 53,000,000
23 1995 58,000,000
24 1996 61,000,000
25 1997 64,000,000
26 1998 68,000,000
27 1999 71,000,000
28 2000 75,000,000
29 2001 80,000,000
30 2002 84,000,000
31 2003 89,000,000
32 2004 93,000,000
33 2005 97,000,000
34 2006 102,000,000
-16- LRB9102381PTpk
1 2007 and 106,000,000
2 each fiscal year
3 thereafter that bonds
4 are outstanding under
5 Section 13.2 of the
6 Metropolitan Pier and
7 Exposition Authority
8 Act, but not after fiscal year 2029.
9 Beginning July 20, 1993 and in each month of each fiscal
10 year thereafter, one-eighth of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority for that fiscal year, less the amount
13 deposited into the McCormick Place Expansion Project Fund by
14 the State Treasurer in the respective month under subsection
15 (g) of Section 13 of the Metropolitan Pier and Exposition
16 Authority Act, plus cumulative deficiencies in the deposits
17 required under this Section for previous months and years,
18 shall be deposited into the McCormick Place Expansion Project
19 Fund, until the full amount requested for the fiscal year,
20 but not in excess of the amount specified above as "Total
21 Deposit", has been deposited.
22 Subject to payment of amounts into the Build Illinois
23 Fund and the McCormick Place Expansion Project Fund pursuant
24 to the preceding paragraphs or in any amendment thereto
25 hereafter enacted, each month the Department shall pay into
26 the Local Government Distributive Fund .4% of the net revenue
27 realized for the preceding month from the 5% general rate, or
28 .4% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate, as the case may be, on the
30 selling price of tangible personal property which amount
31 shall, subject to appropriation, be distributed as provided
32 in Section 2 of the State Revenue Sharing Act. No payments or
33 distributions pursuant to this paragraph shall be made if the
34 tax imposed by this Act on photoprocessing products is
-17- LRB9102381PTpk
1 declared unconstitutional, or if the proceeds from such tax
2 are unavailable for distribution because of litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, and the
5 Local Government Distributive Fund pursuant to the preceding
6 paragraphs or in any amendments thereto hereafter enacted,
7 beginning July 1, 1993, the Department shall each month pay
8 into the Illinois Tax Increment Fund 0.27% of 80% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act, 75% thereof shall be paid into the
14 State Treasury and 25% shall be reserved in a special account
15 and used only for the transfer to the Common School Fund as
16 part of the monthly transfer from the General Revenue Fund in
17 accordance with Section 8a of the State Finance Act.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June of 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 For greater simplicity of administration, manufacturers,
31 importers and wholesalers whose products are sold at retail
32 in Illinois by numerous retailers, and who wish to do so, may
33 assume the responsibility for accounting and paying to the
34 Department all tax accruing under this Act with respect to
-18- LRB9102381PTpk
1 such sales, if the retailers who are affected do not make
2 written objection to the Department to this arrangement.
3 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
4 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
5 Section 10. The Retailers' Occupation Tax Act is amended
6 by changing Section 3 as follows:
7 (35 ILCS 120/3) (from Ch. 120, par. 442)
8 Sec. 3. Except as provided in this Section, on or before
9 the twentieth day of each calendar month, every person
10 engaged in the business of selling tangible personal property
11 at retail in this State during the preceding calendar month
12 shall file a return with the Department, stating:
13 1. The name of the seller;
14 2. His residence address and the address of his
15 principal place of business and the address of the
16 principal place of business (if that is a different
17 address) from which he engages in the business of selling
18 tangible personal property at retail in this State;
19 3. Total amount of receipts received by him during
20 the preceding calendar month or quarter, as the case may
21 be, from sales of tangible personal property, and from
22 services furnished, by him during such preceding calendar
23 month or quarter;
24 4. Total amount received by him during the
25 preceding calendar month or quarter on charge and time
26 sales of tangible personal property, and from services
27 furnished, by him prior to the month or quarter for which
28 the return is filed;
29 5. Deductions allowed by law;
30 6. Gross receipts which were received by him during
31 the preceding calendar month or quarter and upon the
32 basis of which the tax is imposed;
-19- LRB9102381PTpk
1 7. The amount of credit provided in Section 2d of
2 this Act;
3 8. The amount of tax due;
4 9. The signature of the taxpayer; and
5 10. Such other reasonable information as the
6 Department may require.
7 If a taxpayer fails to sign a return within 30 days after
8 the proper notice and demand for signature by the Department,
9 the return shall be considered valid and any amount shown to
10 be due on the return shall be deemed assessed.
11 Each return shall be accompanied by the statement of
12 prepaid tax issued pursuant to Section 2e for which credit is
13 claimed.
14 A retailer may accept a Manufacturer's Purchase Credit
15 certification from a purchaser in satisfaction of Use Tax as
16 provided in Section 3-85 of the Use Tax Act if the purchaser
17 provides the appropriate documentation as required by Section
18 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
19 certification, accepted by a retailer as provided in Section
20 3-85 of the Use Tax Act, may be used by that retailer to
21 satisfy Retailers' Occupation Tax liability in the amount
22 claimed in the certification, not to exceed 6.25% of the
23 receipts subject to tax from a qualifying purchase.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in the business of selling tangible
-20- LRB9102381PTpk
1 personal property at retail in this State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month from sales of
4 tangible personal property by him during such preceding
5 calendar month, including receipts from charge and time
6 sales, but less all 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; and
10 6. Such other reasonable information as the
11 Department may require.
12 If a total amount of less than $1 is payable, refundable
13 or creditable, such amount shall be disregarded if it is less
14 than 50 cents and shall be increased to $1 if it is 50 cents
15 or more.
16 Beginning October 1, 1993, a taxpayer who has an average
17 monthly tax liability of $150,000 or more shall make all
18 payments required by rules of the Department by electronic
19 funds transfer. Beginning October 1, 1994, a taxpayer who
20 has an average monthly tax liability of $100,000 or more
21 shall make all payments required by rules of the Department
22 by electronic funds transfer. Beginning October 1, 1995, a
23 taxpayer who has an average monthly tax liability of $50,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. The term "average
26 monthly tax liability" shall be the sum of the taxpayer's
27 liabilities under this Act, and under all other State and
28 local occupation and use tax laws administered by the
29 Department, for the immediately preceding calendar year
30 divided by 12.
31 Before August 1 of each year beginning in 1993, the
32 Department shall notify all taxpayers required to make
33 payments by electronic funds transfer. All taxpayers
34 required to make payments by electronic funds transfer shall
-21- LRB9102381PTpk
1 make those payments for a minimum of one year beginning on
2 October 1.
3 Any taxpayer not required to make payments by electronic
4 funds transfer may make payments by electronic funds transfer
5 with the permission of the Department.
6 All taxpayers required to make payment by electronic
7 funds transfer and any taxpayers authorized to voluntarily
8 make payments by electronic funds transfer shall make those
9 payments in the manner authorized by the Department.
10 The Department shall adopt such rules as are necessary to
11 effectuate a program of electronic funds transfer and the
12 requirements of this Section.
13 Any amount which is required to be shown or reported on
14 any return or other document under this Act shall, if such
15 amount is not a whole-dollar amount, be increased to the
16 nearest whole-dollar amount in any case where the fractional
17 part of a dollar is 50 cents or more, and decreased to the
18 nearest whole-dollar amount where the fractional part of a
19 dollar is less than 50 cents.
20 If the retailer is otherwise required to file a monthly
21 return and if the retailer's average monthly tax liability to
22 the Department does not exceed $200, the Department may
23 authorize his returns to be filed on a quarter annual basis,
24 with the return for January, February and March of a given
25 year being due by April 20 of such year; with the return for
26 April, May and June of a given year being due by July 20 of
27 such year; with the return for July, August and September of
28 a given year being due by October 20 of such year, and with
29 the return for October, November and December of a given year
30 being due by January 20 of the following year.
31 If the retailer is otherwise required to file a monthly
32 or quarterly return and if the retailer's average monthly tax
33 liability with the Department does not exceed $50, the
34 Department may authorize his returns to be filed on an annual
-22- LRB9102381PTpk
1 basis, with the return for a given year being due by January
2 20 of the following year.
3 Such quarter annual and annual returns, as to form and
4 substance, shall be subject to the same requirements as
5 monthly returns.
6 Notwithstanding any other provision in this Act
7 concerning the time within which a retailer may file his
8 return, in the case of any retailer who ceases to engage in a
9 kind of business which makes him responsible for filing
10 returns under this Act, such retailer shall file a final
11 return under this Act with the Department not more than one
12 month after discontinuing such business.
13 Where the same person has more than one business
14 registered with the Department under separate registrations
15 under this Act, such person may not file each return that is
16 due as a single return covering all such registered
17 businesses, but shall file separate returns for each such
18 registered business.
19 In addition, with respect to motor vehicles, watercraft,
20 aircraft, and trailers that are required to be registered
21 with an agency of this State, every retailer selling this
22 kind of tangible personal property shall file, with the
23 Department, upon a form to be prescribed and supplied by the
24 Department, a separate return for each such item of tangible
25 personal property which the retailer sells, except that
26 where, in the same transaction, a retailer of aircraft,
27 watercraft, motor vehicles or trailers transfers more than
28 one aircraft, watercraft, motor vehicle or trailer to another
29 aircraft, watercraft, motor vehicle retailer or trailer
30 retailer for the purpose of resale, that seller for resale
31 may report the transfer of all aircraft, watercraft, motor
32 vehicles or trailers involved in that transaction to the
33 Department on the same uniform invoice-transaction reporting
34 return form. For purposes of this Section, "watercraft"
-23- LRB9102381PTpk
1 means a Class 2, Class 3, or Class 4 watercraft as defined in
2 Section 3-2 of the Boat Registration and Safety Act, a
3 personal watercraft, or any boat equipped with an inboard
4 motor.
5 Any retailer who sells only motor vehicles, watercraft,
6 aircraft, or trailers that are required to be registered with
7 an agency of this State, so that all retailers' occupation
8 tax liability is required to be reported, and is reported, on
9 such transaction reporting returns and who is not otherwise
10 required to file monthly or quarterly returns, need not file
11 monthly or quarterly returns. However, those retailers shall
12 be required to file returns on an annual basis.
13 The transaction reporting return, in the case of motor
14 vehicles or trailers that are required to be registered with
15 an agency of this State, shall be the same document as the
16 Uniform Invoice referred to in Section 5-402 of The Illinois
17 Vehicle Code and must show the name and address of the
18 seller; the name and address of the purchaser; the amount of
19 the selling price including the amount allowed by the
20 retailer for traded-in property, if any; the amount allowed
21 by the retailer for the traded-in tangible personal property,
22 if any, to the extent to which Section 1 of this Act allows
23 an exemption for the value of traded-in property; the balance
24 payable after deducting such trade-in allowance from the
25 total selling price; the amount of tax due from the retailer
26 with respect to such transaction; the amount of tax collected
27 from the purchaser by the retailer on such transaction (or
28 satisfactory evidence that such tax is not due in that
29 particular instance, if that is claimed to be the fact); the
30 place and date of the sale; a sufficient identification of
31 the property sold; such other information as is required in
32 Section 5-402 of The Illinois Vehicle Code, and such other
33 information as the Department may reasonably require.
34 The transaction reporting return in the case of
-24- LRB9102381PTpk
1 watercraft or aircraft must show the name and address of the
2 seller; the name and address of the purchaser; the amount of
3 the selling price including the amount allowed by the
4 retailer for traded-in property, if any; the amount allowed
5 by the retailer for the traded-in tangible personal property,
6 if any, to the extent to which Section 1 of this Act allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the retailer
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance, if that is claimed to be the fact); the
14 place and date of the sale, a sufficient identification of
15 the property sold, and such other information as the
16 Department may reasonably require.
17 Such transaction reporting return shall be filed not
18 later than 20 days after the day of delivery of the item that
19 is being sold, but may be filed by the retailer at any time
20 sooner than that if he chooses to do so. The transaction
21 reporting return and tax remittance or proof of exemption
22 from the Illinois use tax may be transmitted to the
23 Department by way of the State agency with which, or State
24 officer with whom the tangible personal property must be
25 titled or registered (if titling or registration is required)
26 if the Department and such agency or State officer determine
27 that this procedure will expedite the processing of
28 applications for title or registration.
29 With each such transaction reporting return, the retailer
30 shall remit the proper amount of tax due (or shall submit
31 satisfactory evidence that the sale is not taxable if that is
32 the case), to the Department or its agents, whereupon the
33 Department shall issue, in the purchaser's name, a use tax
34 receipt (or a certificate of exemption if the Department is
-25- LRB9102381PTpk
1 satisfied that the particular sale is tax exempt) which such
2 purchaser may submit to the agency with which, or State
3 officer with whom, he must title or register the tangible
4 personal property that is involved (if titling or
5 registration is required) in support of such purchaser's
6 application for an Illinois certificate or other evidence of
7 title or registration to such tangible personal property.
8 No retailer's failure or refusal to remit tax under this
9 Act precludes a user, who has paid the proper tax to the
10 retailer, from obtaining his certificate of title or other
11 evidence of title or registration (if titling or registration
12 is required) upon satisfying the Department that such user
13 has paid the proper tax (if tax is due) to the retailer. The
14 Department shall adopt appropriate rules to carry out the
15 mandate of this paragraph.
16 If the user who would otherwise pay tax to the retailer
17 wants the transaction reporting return filed and the payment
18 of the tax or proof of exemption made to the Department
19 before the retailer is willing to take these actions and such
20 user has not paid the tax to the retailer, such user may
21 certify to the fact of such delay by the retailer and may
22 (upon the Department being satisfied of the truth of such
23 certification) transmit the information required by the
24 transaction reporting return and the remittance for tax or
25 proof of exemption directly to the Department and obtain his
26 tax receipt or exemption determination, in which event the
27 transaction reporting return and tax remittance (if a tax
28 payment was required) shall be credited by the Department to
29 the proper retailer's account with the Department, but
30 without the 2.1% or 1.75% discount provided for in this
31 Section being allowed. When the user pays the tax directly
32 to the Department, he shall pay the tax in the same amount
33 and in the same form in which it would be remitted if the tax
34 had been remitted to the Department by the retailer.
-26- LRB9102381PTpk
1 Refunds made by the seller during the preceding return
2 period to purchasers, on account of tangible personal
3 property returned to the seller, shall be allowed as a
4 deduction under subdivision 5 of his monthly or quarterly
5 return, as the case may be, in case the seller had
6 theretofore included the receipts from the sale of such
7 tangible personal property in a return filed by him and had
8 paid the tax imposed by this Act with respect to such
9 receipts.
10 Where the seller is a corporation, the return filed on
11 behalf of such corporation shall be signed by the president,
12 vice-president, secretary or treasurer or by the properly
13 accredited agent of such corporation.
14 Where the seller is a limited liability company, the
15 return filed on behalf of the limited liability company shall
16 be signed by a manager, member, or properly accredited agent
17 of the limited liability company.
18 Except as provided in this Section, the retailer filing
19 the return under this Section shall, at the time of filing
20 such return, pay to the Department the amount of tax imposed
21 by this Act less a discount of 2.1% prior to January 1, 1990
22 and 1.75% on and after January 1, 1990, or $5 per calendar
23 year, whichever is greater, which is allowed to reimburse the
24 retailer for the expenses incurred in keeping records,
25 preparing and filing returns, remitting the tax and supplying
26 data to the Department on request. Any prepayment made
27 pursuant to Section 2d of this Act shall be included in the
28 amount on which such 2.1% or 1.75% discount is computed. In
29 the case of retailers who report and pay the tax on a
30 transaction by transaction basis, as provided in this
31 Section, such discount shall be taken with each such tax
32 remittance instead of when such retailer files his periodic
33 return.
34 If the taxpayer's average monthly tax liability to the
-27- LRB9102381PTpk
1 Department under this Act, the Use Tax Act, the Service
2 Occupation Tax Act, and the Service Use Tax Act, excluding
3 any liability for prepaid sales tax to be remitted in
4 accordance with Section 2d of this Act, was $10,000 or more
5 during the preceding 4 complete calendar quarters, he shall
6 file a return with the Department each month by the 20th day
7 of the month next following the month during which such tax
8 liability is incurred and shall make payments to the
9 Department on or before the 7th, 15th, 22nd and last day of
10 the month during which such liability is incurred. If the
11 month during which such tax liability is incurred began prior
12 to January 1, 1985, each payment shall be in an amount equal
13 to 1/4 of the taxpayer's actual liability for the month or an
14 amount set by the Department not to exceed 1/4 of the average
15 monthly liability of the taxpayer to the Department for the
16 preceding 4 complete calendar quarters (excluding the month
17 of highest liability and the month of lowest liability in
18 such 4 quarter period). If the month during which such tax
19 liability is incurred begins on or after January 1, 1985 and
20 prior to January 1, 1987, each payment shall be in an amount
21 equal to 22.5% of the taxpayer's actual liability for the
22 month or 27.5% of the taxpayer's liability for the same
23 calendar month of the preceding year. If the month during
24 which such tax liability is incurred begins on or after
25 January 1, 1987 and prior to January 1, 1988, each payment
26 shall be in an amount equal to 22.5% of the taxpayer's actual
27 liability for the month or 26.25% of the taxpayer's liability
28 for the same calendar month of the preceding year. If the
29 month during which such tax liability is incurred begins on
30 or after January 1, 1988, and prior to January 1, 1989, or
31 begins on or after January 1, 1996 and before January 1, 2000
32 , each payment shall be in an amount equal to 22.5% of the
33 taxpayer's actual liability for the month or 25% of the
34 taxpayer's liability for the same calendar month of the
-28- LRB9102381PTpk
1 preceding year. If the month during which such tax liability
2 is incurred begins on or after January 1, 1989, and prior to
3 January 1, 1996, each payment shall be in an amount equal to
4 22.5% of the taxpayer's actual liability for the month or 25%
5 of the taxpayer's liability for the same calendar month of
6 the preceding year or 100% of the taxpayer's actual liability
7 for the quarter monthly reporting period. If the month during
8 which the tax liability is incurred begins on or after
9 January 1, 2000, each payment must be in an amount equal to
10 (i) 22.5% of the taxpayer's actual liability for the month or
11 (ii) 12.5% of the taxpayer's liability for the same calendar
12 month of the preceding year with 80% of the taxpayer's actual
13 liability for the year due on or before December 15th and
14 100% of the taxpayer's actual liability for the year due on
15 or before the immediately following January 15th. The amount
16 of such quarter monthly payments shall be credited against
17 the final tax liability of the taxpayer's return for that
18 month. Once applicable, the requirement of the making of
19 quarter monthly payments to the Department by taxpayers
20 having an average monthly tax liability of $10,000 or more as
21 determined in the manner provided above shall continue until
22 such taxpayer's average monthly liability to the Department
23 during the preceding 4 complete calendar quarters (excluding
24 the month of highest liability and the month of lowest
25 liability) is less than $9,000, or until such taxpayer's
26 average monthly liability to the Department as computed for
27 each calendar quarter of the 4 preceding complete calendar
28 quarter period is less than $10,000. However, if a taxpayer
29 can show the Department that a substantial change in the
30 taxpayer's business has occurred which causes the taxpayer to
31 anticipate that his average monthly tax liability for the
32 reasonably foreseeable future will fall below $10,000, then
33 such taxpayer may petition the Department for a change in
34 such taxpayer's reporting status. The Department shall
-29- LRB9102381PTpk
1 change such taxpayer's reporting status unless it finds that
2 such change is seasonal in nature and not likely to be long
3 term. If any such quarter monthly payment is not paid at the
4 time or in the amount required by this Section, then the
5 taxpayer shall be liable for penalties and interest on the
6 difference between the minimum amount due as a payment and
7 the amount of such quarter monthly payment actually and
8 timely paid, except insofar as the taxpayer has previously
9 made payments for that month to the Department in excess of
10 the minimum payments previously due as provided in this
11 Section. The Department shall make reasonable rules and
12 regulations to govern the quarter monthly payment amount and
13 quarter monthly payment dates for taxpayers who file on other
14 than a calendar monthly basis.
15 Without regard to whether a taxpayer is required to make
16 quarter monthly payments as specified above, any taxpayer who
17 is required by Section 2d of this Act to collect and remit
18 prepaid taxes and has collected prepaid taxes which average
19 in excess of $25,000 per month during the preceding 2
20 complete calendar quarters, shall file a return with the
21 Department as required by Section 2f and shall make payments
22 to the Department on or before the 7th, 15th, 22nd and last
23 day of the month during which such liability is incurred. If
24 the month during which such tax liability is incurred began
25 prior to the effective date of this amendatory Act of 1985,
26 each payment shall be in an amount not less than 22.5% of the
27 taxpayer's actual liability under Section 2d. If the month
28 during which such tax liability is incurred begins on or
29 after January 1, 1986, each payment shall be in an amount
30 equal to 22.5% of the taxpayer's actual liability for the
31 month or 27.5% of the taxpayer's liability for the same
32 calendar month of the preceding calendar year. If the month
33 during which such tax liability is incurred begins on or
34 after January 1, 1987, each payment shall be in an amount
-30- LRB9102381PTpk
1 equal to 22.5% of the taxpayer's actual liability for the
2 month or 26.25% of the taxpayer's liability for the same
3 calendar month of the preceding year. The amount of such
4 quarter monthly payments shall be credited against the final
5 tax liability of the taxpayer's return for that month filed
6 under this Section or Section 2f, as the case may be. Once
7 applicable, the requirement of the making of quarter monthly
8 payments to the Department pursuant to this paragraph shall
9 continue until such taxpayer's average monthly prepaid tax
10 collections during the preceding 2 complete calendar quarters
11 is $25,000 or less. If any such quarter monthly payment is
12 not paid at the time or in the amount required, the taxpayer
13 shall be liable for penalties and interest on such
14 difference, except insofar as the taxpayer has previously
15 made payments for that month in excess of the minimum
16 payments previously due.
17 If any payment provided for in this Section exceeds the
18 taxpayer's liabilities under this Act, the Use Tax Act, the
19 Service Occupation Tax Act and the Service Use Tax Act, as
20 shown on an original monthly return, the Department shall, if
21 requested by the taxpayer, issue to the taxpayer a credit
22 memorandum no later than 30 days after the date of payment.
23 The credit evidenced by such credit memorandum may be
24 assigned by the taxpayer to a similar taxpayer under this
25 Act, the Use Tax Act, the Service Occupation Tax Act or the
26 Service Use Tax Act, in accordance with reasonable rules and
27 regulations to be prescribed by the Department. If no such
28 request is made, the taxpayer may credit such excess payment
29 against tax liability subsequently to be remitted to the
30 Department under this Act, the Use Tax Act, the Service
31 Occupation Tax Act or the Service Use Tax Act, in accordance
32 with reasonable rules and regulations prescribed by the
33 Department. If the Department subsequently determined that
34 all or any part of the credit taken was not actually due to
-31- LRB9102381PTpk
1 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
2 shall be reduced by 2.1% or 1.75% of the difference between
3 the credit taken and that actually due, and that taxpayer
4 shall be liable for penalties and interest on such
5 difference.
6 If a retailer of motor fuel is entitled to a credit under
7 Section 2d of this Act which exceeds the taxpayer's liability
8 to the Department under this Act for the month which the
9 taxpayer is filing a return, the Department shall issue the
10 taxpayer a credit memorandum for the excess.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the Local Government Tax Fund, a special fund
13 in the State treasury which is hereby created, the net
14 revenue realized for the preceding month from the 1% tax on
15 sales of food for human consumption which is to be consumed
16 off the premises where it is sold (other than alcoholic
17 beverages, soft drinks and food which has been prepared for
18 immediate consumption) and prescription and nonprescription
19 medicines, drugs, medical appliances and insulin, urine
20 testing materials, syringes and needles used by diabetics.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the County and Mass Transit District Fund, a
23 special fund in the State treasury which is hereby created,
24 4% of the net revenue realized for the preceding month from
25 the 6.25% general rate.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the Local Government Tax Fund 16% 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 Of the remainder of the moneys received by the Department
32 pursuant to this Act, (a) 1.75% thereof shall be paid into
33 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
34 and on and after July 1, 1989, 3.8% thereof shall be paid
-32- LRB9102381PTpk
1 into the Build Illinois Fund; provided, however, that if in
2 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
3 as the case may be, of the moneys received by the Department
4 and required to be paid into the Build Illinois Fund pursuant
5 to this Act, Section 9 of the Use Tax Act, Section 9 of the
6 Service Use Tax Act, and Section 9 of the Service Occupation
7 Tax Act, such Acts being hereinafter called the "Tax Acts"
8 and such aggregate of 2.2% or 3.8%, as the case may be, of
9 moneys being hereinafter called the "Tax Act Amount", and (2)
10 the amount transferred to the Build Illinois Fund from the
11 State and Local Sales Tax Reform Fund shall be less than the
12 Annual Specified Amount (as hereinafter defined), an amount
13 equal to the difference shall be immediately paid into the
14 Build Illinois Fund from other moneys received by the
15 Department pursuant to the Tax Acts; the "Annual Specified
16 Amount" means the amounts specified below for fiscal years
17 1986 through 1993:
18 Fiscal Year Annual Specified Amount
19 1986 $54,800,000
20 1987 $76,650,000
21 1988 $80,480,000
22 1989 $88,510,000
23 1990 $115,330,000
24 1991 $145,470,000
25 1992 $182,730,000
26 1993 $206,520,000;
27 and means the Certified Annual Debt Service Requirement (as
28 defined in Section 13 of the Build Illinois Bond Act) or the
29 Tax Act Amount, whichever is greater, for fiscal year 1994
30 and each fiscal year thereafter; and further provided, that
31 if on the last business day of any month the sum of (1) the
32 Tax Act Amount required to be deposited into the Build
33 Illinois Bond Account in the Build Illinois Fund during such
34 month and (2) the amount transferred to the Build Illinois
-33- LRB9102381PTpk
1 Fund from the State and Local Sales Tax Reform Fund shall
2 have been less than 1/12 of the Annual Specified Amount, an
3 amount equal to the difference shall be immediately paid into
4 the Build Illinois Fund from other moneys received by the
5 Department pursuant to the Tax Acts; and, further provided,
6 that in no event shall the payments required under the
7 preceding proviso result in aggregate payments into the Build
8 Illinois Fund pursuant to this clause (b) for any fiscal year
9 in excess of the greater of (i) the Tax Act Amount or (ii)
10 the Annual Specified Amount for such fiscal year. The
11 amounts payable into the Build Illinois Fund under clause (b)
12 of the first sentence in this paragraph shall be payable only
13 until such time as the aggregate amount on deposit under each
14 trust indenture securing Bonds issued and outstanding
15 pursuant to the Build Illinois Bond Act is sufficient, taking
16 into account any future investment income, to fully provide,
17 in accordance with such indenture, for the defeasance of or
18 the payment of the principal of, premium, if any, and
19 interest on the Bonds secured by such indenture and on any
20 Bonds expected to be issued thereafter and all fees and costs
21 payable with respect thereto, all as certified by the
22 Director of the Bureau of the Budget. If on the last
23 business day of any month in which Bonds are outstanding
24 pursuant to the Build Illinois Bond Act, the aggregate of
25 moneys deposited in the Build Illinois Bond Account in the
26 Build Illinois Fund in such month shall be less than the
27 amount required to be transferred in such month from the
28 Build Illinois Bond Account to the Build Illinois Bond
29 Retirement and Interest Fund pursuant to Section 13 of the
30 Build Illinois Bond Act, an amount equal to such deficiency
31 shall be immediately paid from other moneys received by the
32 Department pursuant to the Tax Acts to the Build Illinois
33 Fund; provided, however, that any amounts paid to the Build
34 Illinois Fund in any fiscal year pursuant to this sentence
-34- LRB9102381PTpk
1 shall be deemed to constitute payments pursuant to clause (b)
2 of the first sentence of this paragraph and shall reduce the
3 amount otherwise payable for such fiscal year pursuant to
4 that clause (b). The moneys received by the Department
5 pursuant to this Act and required to be deposited into the
6 Build Illinois Fund are subject to the pledge, claim and
7 charge set forth in Section 12 of the Build Illinois Bond
8 Act.
9 Subject to payment of amounts into the Build Illinois
10 Fund as provided in the preceding paragraph or in any
11 amendment thereto hereafter enacted, the following specified
12 monthly installment of the amount requested in the
13 certificate of the Chairman of the Metropolitan Pier and
14 Exposition Authority provided under Section 8.25f of the
15 State Finance Act, but not in excess of sums designated as
16 "Total Deposit", shall be deposited in the aggregate from
17 collections under Section 9 of the Use Tax Act, Section 9 of
18 the Service Use Tax Act, Section 9 of the Service Occupation
19 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
20 into the McCormick Place Expansion Project Fund in the
21 specified fiscal years.
22 Fiscal Year Total Deposit
23 1993 $0
24 1994 53,000,000
25 1995 58,000,000
26 1996 61,000,000
27 1997 64,000,000
28 1998 68,000,000
29 1999 71,000,000
30 2000 75,000,000
31 2001 80,000,000
32 2002 84,000,000
33 2003 89,000,000
34 2004 93,000,000
-35- LRB9102381PTpk
1 2005 97,000,000
2 2006 102,000,000
3 2007 and 106,000,000
4 each fiscal year
5 thereafter that bonds
6 are outstanding under
7 Section 13.2 of the
8 Metropolitan Pier and
9 Exposition Authority
10 Act, but not after fiscal year 2029.
11 Beginning July 20, 1993 and in each month of each fiscal
12 year thereafter, one-eighth of the amount requested in the
13 certificate of the Chairman of the Metropolitan Pier and
14 Exposition Authority for that fiscal year, less the amount
15 deposited into the McCormick Place Expansion Project Fund by
16 the State Treasurer in the respective month under subsection
17 (g) of Section 13 of the Metropolitan Pier and Exposition
18 Authority Act, plus cumulative deficiencies in the deposits
19 required under this Section for previous months and years,
20 shall be deposited into the McCormick Place Expansion Project
21 Fund, until the full amount requested for the fiscal year,
22 but not in excess of the amount specified above as "Total
23 Deposit", has been deposited.
24 Subject to payment of amounts into the Build Illinois
25 Fund and the McCormick Place Expansion Project Fund pursuant
26 to the preceding paragraphs or in any amendment thereto
27 hereafter enacted, each month the Department shall pay into
28 the Local Government Distributive Fund 0.4% of the net
29 revenue realized for the preceding month from the 5% general
30 rate or 0.4% of 80% of the net revenue realized for the
31 preceding month from the 6.25% general rate, as the case may
32 be, on the selling price of tangible personal property which
33 amount shall, subject to appropriation, be distributed as
34 provided in Section 2 of the State Revenue Sharing Act. No
-36- LRB9102381PTpk
1 payments or distributions pursuant to this paragraph shall be
2 made if the tax imposed by this Act on photoprocessing
3 products is declared unconstitutional, or if the proceeds
4 from such tax are unavailable for distribution because of
5 litigation.
6 Subject to payment of amounts into the Build Illinois
7 Fund, the McCormick Place Expansion Project to the preceding
8 paragraphs or in any amendments thereto hereafter enacted,
9 beginning July 1, 1993, the Department shall each month pay
10 into the Illinois Tax Increment Fund 0.27% of 80% of the net
11 revenue realized for the preceding month from the 6.25%
12 general rate on the selling price of tangible personal
13 property.
14 Of the remainder of the moneys received by the Department
15 pursuant to this Act, 75% thereof shall be paid into the
16 State Treasury and 25% shall be reserved in a special account
17 and used only for the transfer to the Common School Fund as
18 part of the monthly transfer from the General Revenue Fund in
19 accordance with Section 8a of the State Finance Act.
20 The Department may, upon separate written notice to a
21 taxpayer, require the taxpayer to prepare and file with the
22 Department on a form prescribed by the Department within not
23 less than 60 days after receipt of the notice an annual
24 information return for the tax year specified in the notice.
25 Such annual return to the Department shall include a
26 statement of gross receipts as shown by the retailer's last
27 Federal income tax return. If the total receipts of the
28 business as reported in the Federal income tax return do not
29 agree with the gross receipts reported to the Department of
30 Revenue for the same period, the retailer shall attach to his
31 annual return a schedule showing a reconciliation of the 2
32 amounts and the reasons for the difference. The retailer's
33 annual return to the Department shall also disclose the cost
34 of goods sold by the retailer during the year covered by such
-37- LRB9102381PTpk
1 return, opening and closing inventories of such goods for
2 such year, costs of goods used from stock or taken from stock
3 and given away by the retailer during such year, payroll
4 information of the retailer's business during such year and
5 any additional reasonable information which the Department
6 deems would be helpful in determining the accuracy of the
7 monthly, quarterly or annual returns filed by such retailer
8 as provided for in this Section.
9 If the annual information return required by this Section
10 is not filed when and as required, the taxpayer shall be
11 liable as follows:
12 (i) Until January 1, 1994, the taxpayer shall be
13 liable for a penalty equal to 1/6 of 1% of the tax due
14 from such taxpayer under this Act during the period to be
15 covered by the annual return for each month or fraction
16 of a month until such return is filed as required, the
17 penalty to be assessed and collected in the same manner
18 as any other penalty provided for in this Act.
19 (ii) On and after January 1, 1994, the taxpayer
20 shall be liable for a penalty as described in Section 3-4
21 of the Uniform Penalty and Interest Act.
22 The chief executive officer, proprietor, owner or highest
23 ranking manager shall sign the annual return to certify the
24 accuracy of the information contained therein. Any person
25 who willfully signs the annual return containing false or
26 inaccurate information shall be guilty of perjury and
27 punished accordingly. The annual return form prescribed by
28 the Department shall include a warning that the person
29 signing the return may be liable for perjury.
30 The provisions of this Section concerning the filing of
31 an annual information return do not apply to a retailer who
32 is not required to file an income tax return with the United
33 States Government.
34 As soon as possible after the first day of each month,
-38- LRB9102381PTpk
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under this Act for the second preceding month;
6 except that this transfer shall not be made for the months
7 February through June, 1992.
8 Net revenue realized for a month shall be the revenue
9 collected by the State pursuant to this Act, less the amount
10 paid out during that month as refunds to taxpayers for
11 overpayment of liability.
12 For greater simplicity of administration, manufacturers,
13 importers and wholesalers whose products are sold at retail
14 in Illinois by numerous retailers, and who wish to do so, may
15 assume the responsibility for accounting and paying to the
16 Department all tax accruing under this Act with respect to
17 such sales, if the retailers who are affected do not make
18 written objection to the Department to this arrangement.
19 Any person who promotes, organizes, provides retail
20 selling space for concessionaires or other types of sellers
21 at the Illinois State Fair, DuQuoin State Fair, county fairs,
22 local fairs, art shows, flea markets and similar exhibitions
23 or events, including any transient merchant as defined by
24 Section 2 of the Transient Merchant Act of 1987, is required
25 to file a report with the Department providing the name of
26 the merchant's business, the name of the person or persons
27 engaged in merchant's business, the permanent address and
28 Illinois Retailers Occupation Tax Registration Number of the
29 merchant, the dates and location of the event and other
30 reasonable information that the Department may require. The
31 report must be filed not later than the 20th day of the month
32 next following the month during which the event with retail
33 sales was held. Any person who fails to file a report
34 required by this Section commits a business offense and is
-39- LRB9102381PTpk
1 subject to a fine not to exceed $250.
2 Any person engaged in the business of selling tangible
3 personal property at retail as a concessionaire or other type
4 of seller at the Illinois State Fair, county fairs, art
5 shows, flea markets and similar exhibitions or events, or any
6 transient merchants, as defined by Section 2 of the Transient
7 Merchant Act of 1987, may be required to make a daily report
8 of the amount of such sales to the Department and to make a
9 daily payment of the full amount of tax due. The Department
10 shall impose this requirement when it finds that there is a
11 significant risk of loss of revenue to the State at such an
12 exhibition or event. Such a finding shall be based on
13 evidence that a substantial number of concessionaires or
14 other sellers who are not residents of Illinois will be
15 engaging in the business of selling tangible personal
16 property at retail at the exhibition or event, or other
17 evidence of a significant risk of loss of revenue to the
18 State. The Department shall notify concessionaires and other
19 sellers affected by the imposition of this requirement. In
20 the absence of notification by the Department, the
21 concessionaires and other sellers shall file their returns as
22 otherwise required in this Section.
23 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
24 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
25 1-1-99; 90-612, eff. 7-8-98.)
26 Section 99. Effective date. This Act takes effect
27 January 1, 2000.