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91_SB1028enr SB1028 Enrolled LRB9106061PTpk 1 AN ACT in relation to transportation financing, amending 2 named Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The State Finance Act is amended by adding 6 Sections 5.491 and 6z-48 and changing Section 8.3 as follows: 7 (30 ILCS 105/5.491 new) 8 Sec. 5.491. The Motor Vehicle License Plate Fund. 9 (30 ILCS 105/6z-48 new) 10 Sec. 6z-48. Motor Vehicle License Plate Fund. 11 (a) The Motor Vehicle License Plate Fund is hereby 12 created as a special fund in the State Treasury. The Fund 13 shall consist of the deposits provided for in Section 2-119 14 of the Illinois Vehicle Code and any moneys appropriated to 15 the Fund. 16 (b) The Motor Vehicle License Plate Fund shall be used, 17 subject to appropriation, for the costs incident to providing 18 new or replacement license plates for motor vehicles. 19 (c) Any balance remaining in the Motor Vehicle License 20 Plate Fund at the close of business on December 31, 2004 21 shall be transferred into the Road Fund, and the Motor 22 Vehicle License Plate Fund is abolished when that transfer 23 has been made. 24 (30 ILCS 105/8.3) (from Ch. 127, par. 144.3) 25 Sec. 8.3. Money in the Road Fund shall, if and when the 26 State of Illinois incurs any bonded indebtedness for the 27 construction of permanent highways, be set aside and used for 28 the purpose of paying and discharging annually the principal 29 and interest on that bonded indebtedness then due and SB1028 Enrolled -2- LRB9106061PTpk 1 payable, and for no other purpose. The surplus, if any, in 2 the Road Fund after the payment of principal and interest on 3 that bonded indebtedness then annually due shall be used as 4 follows: 5 first -- to pay the cost of administration of 6 Chapters 2 through 10 of the Illinois Vehicle Code, 7 except the cost of administration of Articles I and II of 8 Chapter 3 of that Code; and 9 secondly -- for expenses of the Department of 10 Transportation for construction, reconstruction, 11 improvement, repair, maintenance, operation, and 12 administration of highways in accordance with the 13 provisions of laws relating thereto, or for any purpose 14 related or incident to and connected therewith, including 15 the separation of grades of those highways with railroads 16 and with highways and including the payment of awards 17 made by the Industrial Commission under the terms of the 18 Workers' Compensation Act or Workers' Occupational 19 Diseases Act for injury or death of an employee of the 20 Division of Highways in the Department of Transportation; 21 or for the acquisition of land and the erection of 22 buildings for highway purposes, including the acquisition 23 of highway right-of-way or for investigations to 24 determine the reasonably anticipated future highway 25 needs; or for making of surveys, plans, specifications 26 and estimates for and in the construction and maintenance 27 of flight strips and of highways necessary to provide 28 access to military and naval reservations, to defense 29 industries and defense-industry sites, and to the sources 30 of raw materials and for replacing existing highways and 31 highway connections shut off from general public use at 32 military and naval reservations and defense-industry 33 sites, or for the purchase of right-of-way, except that 34 the State shall be reimbursed in full for any expense SB1028 Enrolled -3- LRB9106061PTpk 1 incurred in building the flight strips; or for the 2 operating and maintaining of highway garages; or for 3 patrolling and policing the public highways and 4 conserving the peace; or for any of those purposes or any 5 other purpose that may be provided by law. 6 Appropriations for any of those purposes are payable from 7 the Road Fund. Appropriations may also be made from the Road 8 Fund for the administrative expenses of any State agency that 9 are related to motor vehicles or arise from the use of motor 10 vehicles. 11 Beginning with fiscal year 1980 and thereafter, no Road 12 Fund monies shall be appropriated to the following 13 Departments or agencies of State government for 14 administration, grants, or operations; but this limitation is 15 not a restriction upon appropriating for those purposes any 16 Road Fund monies that are eligible for federal reimbursement; 17 1. Department of Public Health; 18 2. Department of Transportation, only with respect 19 to subsidies for one-half fare Student Transportation and 20 Reduced Fare for Elderly; 21 3. Department of Central Management Services, 22 except for expenditures incurred for group insurance 23 premiums of appropriate personnel; 24 4. Judicial Systems and Agencies. 25 Beginning with fiscal year 1981 and thereafter, no Road 26 Fund monies shall be appropriated to the following 27 Departments or agencies of State government for 28 administration, grants, or operations; but this limitation is 29 not a restriction upon appropriating for those purposes any 30 Road Fund monies that are eligible for federal reimbursement: 31 1. Department of State Police, except for 32 expenditures with respect to the Division of State 33 Troopers; 34 2. Department of Transportation, only with respect SB1028 Enrolled -4- LRB9106061PTpk 1 to Intercity Rail Subsidies and Rail Freight Services. 2 Beginning with fiscal year 1982 and thereafter, no Road 3 Fund monies shall be appropriated to the following 4 Departments or agencies of State government for 5 administration, grants, or operations; but this limitation is 6 not a restriction upon appropriating for those purposes any 7 Road Fund monies that are eligible for federal reimbursement: 8 Department of Central Management Services, except for awards 9 made by the Industrial Commission under the terms of the 10 Workers' Compensation Act or Workers' Occupational Diseases 11 Act for injury or death of an employee of the Division of 12 Highways in the Department of Transportation. 13 Beginning with fiscal year 1984 and thereafter, no Road 14 Fund monies shall be appropriated to the following 15 Departments or agencies of State government for 16 administration, grants, or operations; but this limitation is 17 not a restriction upon appropriating for those purposes any 18 Road Fund monies that are eligible for federal reimbursement: 19 1. Department of State Police, except not more than 20 40% of the funds appropriated for the Division of State 21 Troopers; 22 2. State Officers. 23 Beginning with fiscal year 1984 and thereafter, no Road 24 Fund monies shall be appropriated to any Department or agency 25 of State government for administration, grants, or operations 26 except as provided hereafter; but this limitation is not a 27 restriction upon appropriating for those purposes any Road 28 Fund monies that are eligible for federal reimbursement. It 29 shall not be lawful to circumvent the above appropriation 30 limitations by governmental reorganization or other methods. 31 Appropriations shall be made from the Road Fund only in 32 accordance with the provisions of this Section. 33 Money in the Road Fund shall, if and when the State of 34 Illinois incurs any bonded indebtedness for the construction SB1028 Enrolled -5- LRB9106061PTpk 1 of permanent highways, be set aside and used for the purpose 2 of paying and discharging during each fiscal year the 3 principal and interest on that bonded indebtedness as it 4 becomes due and payable as provided in the Transportation 5 Bond Act, and for no other purpose. The surplus, if any, in 6 the Road Fund after the payment of principal and interest on 7 that bonded indebtedness then annually due shall be used as 8 follows: 9 first -- to pay the cost of administration of 10 Chapters 2 through 10 of the Illinois Vehicle Code; and 11 secondly -- no Road Fund monies derived from fees, 12 excises, or license taxes relating to registration, 13 operation and use of vehicles on public highways or to 14 fuels used for the propulsion of those vehicles, shall be 15 appropriated or expended other than for costs of 16 administering the laws imposing those fees, excises, and 17 license taxes, statutory refunds and adjustments allowed 18 thereunder, administrative costs of the Department of 19 Transportation, payment of debts and liabilities incurred 20 in construction and reconstruction of public highways and 21 bridges, acquisition of rights-of-way for and the cost of 22 construction, reconstruction, maintenance, repair, and 23 operation of public highways and bridges under the 24 direction and supervision of the State, political 25 subdivision, or municipality collecting those monies, and 26 the costs for patrolling and policing the public highways 27 (by State, political subdivision, or municipality 28 collecting that money) for enforcement of traffic laws. 29 The separation of grades of such highways with railroads 30 and costs associated with protection of at-grade highway 31 and railroad crossing shall also be permissible. 32 Appropriations for any of such purposes are payable from 33 the Road Fund or the Grade Crossing Protection Fund as 34 provided in Section 8 of the Motor Fuel Tax Law. SB1028 Enrolled -6- LRB9106061PTpk 1 Beginning with fiscal year 1991 and thereafter, no Road 2 Fund monies shall be appropriated to the Department of State 3 Police for the purposes of this Section in excess of its 4 total fiscal year 1990 Road Fund appropriations for those 5 purposes unless otherwise provided in Section 5g of this Act. 6 It shall not be lawful to circumvent this limitation on 7 appropriations by governmental reorganization or other 8 methods unless otherwise provided in Section 5g of this Act. 9 In fiscal year 1994, no Road Fund monies shall be 10 appropriated to the Secretary of State for the purposes of 11 this Section in excess of the total fiscal year 1991 Road 12 Fund appropriations to the Secretary of State for those 13 purposes, plus $9,800,000. It shall not be lawful to 14 circumvent this limitation on appropriations by governmental 15 reorganization or other method. 16 Beginning with fiscal year 1995 and thereafter, no Road 17 Fund monies shall be appropriated to the Secretary of State 18 for the purposes of this Section in excess of the total 19 fiscal year 1994 Road Fund appropriations to the Secretary of 20 State for those purposes. It shall not be lawful to 21 circumvent this limitation on appropriations by governmental 22 reorganization or other methods. 23 Beginning with fiscal year 2000, total Road Fund 24 appropriations to the Secretary of State for the purposes of 25 this Section shall not exceed the amounts specified for the 26 following fiscal years: 27 Fiscal Year 2000 $80,500,000; 28 Fiscal Year 2001 $80,500,000; 29 Fiscal Year 2002 $80,500,000; 30 Fiscal Year 2003 $80,500,000; 31 Fiscal Year 2004 and 32 each year thereafter $30,500,000. 33 It shall not be lawful to circumvent this limitation on 34 appropriations by governmental reorganization or other SB1028 Enrolled -7- LRB9106061PTpk 1 methods. 2 No new program may be initiated in fiscal year 1991 and 3 thereafter that is not consistent with the limitations 4 imposed by this Section for fiscal year 1984 and thereafter, 5 insofar as appropriation of Road Fund monies is concerned. 6 Nothing in this Section prohibits transfers from the Road 7 Fund to the State Construction Account Fund under Section 5e 8 of this Act. 9 (Source: P.A. 87-774; 87-1228; 88-78.) 10 Section 10. The Use Tax Act is amended by changing 11 Section 9 as follows: 12 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 13 Sec. 9. Except as to motor vehicles, watercraft, 14 aircraft, and trailers that are required to be registered 15 with an agency of this State, each retailer required or 16 authorized to collect the tax imposed by this Act shall pay 17 to the Department the amount of such tax (except as otherwise 18 provided) at the time when he is required to file his return 19 for the period during which such tax was collected, less a 20 discount of 2.1% prior to January 1, 1990, and 1.75% on and 21 after January 1, 1990, or $5 per calendar year, whichever is 22 greater, which is allowed to reimburse the retailer for 23 expenses incurred in collecting the tax, keeping records, 24 preparing and filing returns, remitting the tax and supplying 25 data to the Department on request. In the case of retailers 26 who report and pay the tax on a transaction by transaction 27 basis, as provided in this Section, such discount shall be 28 taken with each such tax remittance instead of when such 29 retailer files his periodic return. A retailer need not 30 remit that part of any tax collected by him to the extent 31 that he is required to remit and does remit the tax imposed 32 by the Retailers' Occupation Tax Act, with respect to the SB1028 Enrolled -8- LRB9106061PTpk 1 sale of the same property. 2 Where such tangible personal property is sold under a 3 conditional sales contract, or under any other form of sale 4 wherein the payment of the principal sum, or a part thereof, 5 is extended beyond the close of the period for which the 6 return is filed, the retailer, in collecting the tax (except 7 as to motor vehicles, watercraft, aircraft, and trailers that 8 are required to be registered with an agency of this State), 9 may collect for each tax return period, only the tax 10 applicable to that part of the selling price actually 11 received during such tax return period. 12 Except as provided in this Section, on or before the 13 twentieth day of each calendar month, such retailer shall 14 file a return for the preceding calendar month. Such return 15 shall be filed on forms prescribed by the Department and 16 shall furnish such information as the Department may 17 reasonably require. 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; SB1028 Enrolled -9- LRB9106061PTpk 1 4. The amount of credit provided in Section 2d of 2 this Act; 3 5. The amount of tax due; 4 5-5. The signature of the taxpayer; and 5 6. 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 Beginning October 1, 1993, a taxpayer who has an average 12 monthly tax liability of $150,000 or more shall make all 13 payments required by rules of the Department by electronic 14 funds transfer. Beginning October 1, 1994, a taxpayer who has 15 an average monthly tax liability of $100,000 or more shall 16 make all payments required by rules of the Department by 17 electronic funds transfer. Beginning October 1, 1995, a 18 taxpayer who has an average monthly tax liability of $50,000 19 or more shall make all payments required by rules of the 20 Department by electronic funds transfer. The term "average 21 monthly tax liability" means the sum of the taxpayer's 22 liabilities under this Act, and under all other State and 23 local occupation and use tax laws administered by the 24 Department, for the immediately preceding calendar year 25 divided by 12. 26 Before August 1 of each year beginning in 1993, the 27 Department shall notify all taxpayers required to make 28 payments by electronic funds transfer. All taxpayers required 29 to make payments by electronic funds transfer shall make 30 those payments for a minimum of one year beginning on October 31 1. 32 Any taxpayer not required to make payments by electronic 33 funds transfer may make payments by electronic funds transfer 34 with the permission of the Department. SB1028 Enrolled -10- LRB9106061PTpk 1 All taxpayers required to make payment by electronic 2 funds transfer and any taxpayers authorized to voluntarily 3 make payments by electronic funds transfer shall make those 4 payments in the manner authorized by the Department. 5 The Department shall adopt such rules as are necessary to 6 effectuate a program of electronic funds transfer and the 7 requirements of this Section. 8 If the taxpayer's average monthly tax liability to the 9 Department under this Act, the Retailers' Occupation Tax Act, 10 the Service Occupation Tax Act, the Service Use Tax Act was 11 $10,000 or more during the preceding 4 complete calendar 12 quarters, he shall file a return with the Department each 13 month by the 20th day of the month next following the month 14 during which such tax liability is incurred and shall make 15 payments to the Department on or before the 7th, 15th, 22nd 16 and last day of the month during which such liability is 17 incurred. If the month during which such tax liability is 18 incurred began prior to January 1, 1985, each payment shall 19 be in an amount equal to 1/4 of the taxpayer's actual 20 liability for the month or an amount set by the Department 21 not to exceed 1/4 of the average monthly liability of the 22 taxpayer to the Department for the preceding 4 complete 23 calendar quarters (excluding the month of highest liability 24 and the month of lowest liability in such 4 quarter period). 25 If the month during which such tax liability is incurred 26 begins on or after January 1, 1985, and prior to January 1, 27 1987, each payment shall be in an amount equal to 22.5% of 28 the taxpayer's actual liability for the month or 27.5% of the 29 taxpayer's liability for the same calendar month of the 30 preceding year. If the month during which such tax liability 31 is incurred begins on or after January 1, 1987, and prior to 32 January 1, 1988, each payment shall be in an amount equal to 33 22.5% of the taxpayer's actual liability for the month or 34 26.25% of the taxpayer's liability for the same calendar SB1028 Enrolled -11- LRB9106061PTpk 1 month of the preceding year. If the month during which such 2 tax liability is incurred begins on or after January 1, 1988, 3 and prior to January 1, 1989, or begins on or after January 4 1, 1996, each payment shall be in an amount equal to 22.5% of 5 the taxpayer's actual liability for the month or 25% of the 6 taxpayer's liability for the same calendar month of the 7 preceding year. If the month during which such tax liability 8 is incurred begins on or after January 1, 1989, and prior to 9 January 1, 1996, each payment shall be in an amount equal to 10 22.5% of the taxpayer's actual liability for the month or 25% 11 of the taxpayer's liability for the same calendar month of 12 the preceding year or 100% of the taxpayer's actual liability 13 for the quarter monthly reporting period. The amount of such 14 quarter monthly payments shall be credited against the final 15 tax liability of the taxpayer's return for that month. Once 16 applicable, the requirement of the making of quarter monthly 17 payments to the Department shall continue until such 18 taxpayer's average monthly liability to the Department during 19 the preceding 4 complete calendar quarters (excluding the 20 month of highest liability and the month of lowest liability) 21 is less than $9,000, or until such taxpayer's average monthly 22 liability to the Department as computed for each calendar 23 quarter of the 4 preceding complete calendar quarter period 24 is less than $10,000. However, if a taxpayer can show the 25 Department that a substantial change in the taxpayer's 26 business has occurred which causes the taxpayer to anticipate 27 that his average monthly tax liability for the reasonably 28 foreseeable future will fall below $10,000, then such 29 taxpayer may petition the Department for change in such 30 taxpayer's reporting status. The Department shall change 31 such taxpayer's reporting status unless it finds that such 32 change is seasonal in nature and not likely to be long term. 33 If any such quarter monthly payment is not paid at the time 34 or in the amount required by this Section, then the taxpayer SB1028 Enrolled -12- LRB9106061PTpk 1 shall be liable for penalties and interest on the difference 2 between the minimum amount due and the amount of such quarter 3 monthly payment actually and timely paid, except insofar as 4 the taxpayer has previously made payments for that month to 5 the Department in excess of the minimum payments previously 6 due as provided in this Section. The Department shall make 7 reasonable rules and regulations to govern the quarter 8 monthly payment amount and quarter monthly payment dates for 9 taxpayers who file on other than a calendar monthly basis. 10 If any such payment provided for in this Section exceeds 11 the taxpayer's liabilities under this Act, the Retailers' 12 Occupation Tax Act, the Service Occupation Tax Act and the 13 Service Use Tax Act, as shown by an original monthly return, 14 the Department shall issue to the taxpayer a credit 15 memorandum no later than 30 days after the date of payment, 16 which memorandum may be submitted by the taxpayer to the 17 Department in payment of tax liability subsequently to be 18 remitted by the taxpayer to the Department or be assigned by 19 the taxpayer to a similar taxpayer under this Act, the 20 Retailers' Occupation Tax Act, the Service Occupation Tax Act 21 or the Service Use Tax Act, in accordance with reasonable 22 rules and regulations to be prescribed by the Department, 23 except that if such excess payment is shown on an original 24 monthly return and is made after December 31, 1986, no credit 25 memorandum shall be issued, unless requested by the taxpayer. 26 If no such request is made, the taxpayer may credit such 27 excess payment against tax liability subsequently to be 28 remitted by the taxpayer to the Department under this Act, 29 the Retailers' Occupation Tax Act, the Service Occupation Tax 30 Act or the Service Use Tax Act, in accordance with reasonable 31 rules and regulations prescribed by the Department. If the 32 Department subsequently determines that all or any part of 33 the credit taken was not actually due to the taxpayer, the 34 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced SB1028 Enrolled -13- LRB9106061PTpk 1 by 2.1% or 1.75% of the difference between the credit taken 2 and that actually due, and the taxpayer shall be liable for 3 penalties and interest on such difference. 4 If the retailer is otherwise required to file a monthly 5 return and if the retailer's average monthly tax liability to 6 the Department does not exceed $200, the Department may 7 authorize his returns to be filed on a quarter annual basis, 8 with the return for January, February, and March of a given 9 year being due by April 20 of such year; with the return for 10 April, May and June of a given year being due by July 20 of 11 such year; with the return for July, August and September of 12 a given year being due by October 20 of such year, and with 13 the return for October, November and December of a given year 14 being due by January 20 of the following year. 15 If the retailer is otherwise required to file a monthly 16 or quarterly return and if the retailer's average monthly tax 17 liability to the Department does not exceed $50, the 18 Department may authorize his returns to be filed on an annual 19 basis, with the return for a given year being due by January 20 20 of the following year. 21 Such quarter annual and annual returns, as to form and 22 substance, shall be subject to the same requirements as 23 monthly returns. 24 Notwithstanding any other provision in this Act 25 concerning the time within which a retailer may file his 26 return, in the case of any retailer who ceases to engage in a 27 kind of business which makes him responsible for filing 28 returns under this Act, such retailer shall file a final 29 return under this Act with the Department not more than one 30 month after discontinuing such business. 31 In addition, with respect to motor vehicles, watercraft, 32 aircraft, and trailers that are required to be registered 33 with an agency of this State, every retailer selling this 34 kind of tangible personal property shall file, with the SB1028 Enrolled -14- LRB9106061PTpk 1 Department, upon a form to be prescribed and supplied by the 2 Department, a separate return for each such item of tangible 3 personal property which the retailer sells, except that 4 where, in the same transaction, a retailer of aircraft, 5 watercraft, motor vehicles or trailers transfers more than 6 one aircraft, watercraft, motor vehicle or trailer to another 7 aircraft, watercraft, motor vehicle or trailer retailer for 8 the purpose of resale, that seller for resale may report the 9 transfer of all the aircraft, watercraft, motor vehicles or 10 trailers involved in that transaction to the Department on 11 the same uniform invoice-transaction reporting return form. 12 For purposes of this Section, "watercraft" means a Class 2, 13 Class 3, or Class 4 watercraft as defined in Section 3-2 of 14 the Boat Registration and Safety Act, a personal watercraft, 15 or any boat equipped with an inboard motor. 16 The transaction reporting return in the case of motor 17 vehicles or trailers that are required to be registered with 18 an agency of this State, shall be the same document as the 19 Uniform Invoice referred to in Section 5-402 of the Illinois 20 Vehicle Code and must show the name and address of the 21 seller; the name and address of the purchaser; the amount of 22 the selling price including the amount allowed by the 23 retailer for traded-in property, if any; the amount allowed 24 by the retailer for the traded-in tangible personal property, 25 if any, to the extent to which Section 2 of this Act allows 26 an exemption for the value of traded-in property; the balance 27 payable after deducting such trade-in allowance from the 28 total selling price; the amount of tax due from the retailer 29 with respect to such transaction; the amount of tax collected 30 from the purchaser by the retailer on such transaction (or 31 satisfactory evidence that such tax is not due in that 32 particular instance, if that is claimed to be the fact); the 33 place and date of the sale; a sufficient identification of 34 the property sold; such other information as is required in SB1028 Enrolled -15- LRB9106061PTpk 1 Section 5-402 of the Illinois Vehicle Code, and such other 2 information as the Department may reasonably require. 3 The transaction reporting return in the case of 4 watercraft and aircraft must show the name and address of the 5 seller; the name and address of the purchaser; the amount of 6 the selling price including the amount allowed by the 7 retailer for traded-in property, if any; the amount allowed 8 by the retailer for the traded-in tangible personal property, 9 if any, to the extent to which Section 2 of this Act allows 10 an exemption for the value of traded-in property; the balance 11 payable after deducting such trade-in allowance from the 12 total selling price; the amount of tax due from the retailer 13 with respect to such transaction; the amount of tax collected 14 from the purchaser by the retailer on such transaction (or 15 satisfactory evidence that such tax is not due in that 16 particular instance, if that is claimed to be the fact); the 17 place and date of the sale, a sufficient identification of 18 the property sold, and such other information as the 19 Department may reasonably require. 20 Such transaction reporting return shall be filed not 21 later than 20 days after the date of delivery of the item 22 that is being sold, but may be filed by the retailer at any 23 time sooner than that if he chooses to do so. The 24 transaction reporting return and tax remittance or proof of 25 exemption from the tax that is imposed by this Act may be 26 transmitted to the Department by way of the State agency with 27 which, or State officer with whom, the tangible personal 28 property must be titled or registered (if titling or 29 registration is required) if the Department and such agency 30 or State officer determine that this procedure will expedite 31 the processing of applications for title or registration. 32 With each such transaction reporting return, the retailer 33 shall remit the proper amount of tax due (or shall submit 34 satisfactory evidence that the sale is not taxable if that is SB1028 Enrolled -16- LRB9106061PTpk 1 the case), to the Department or its agents, whereupon the 2 Department shall issue, in the purchaser's name, a tax 3 receipt (or a certificate of exemption if the Department is 4 satisfied that the particular sale is tax exempt) which such 5 purchaser may submit to the agency with which, or State 6 officer with whom, he must title or register the tangible 7 personal property that is involved (if titling or 8 registration is required) in support of such purchaser's 9 application for an Illinois certificate or other evidence of 10 title or registration to such tangible personal property. 11 No retailer's failure or refusal to remit tax under this 12 Act precludes a user, who has paid the proper tax to the 13 retailer, from obtaining his certificate of title or other 14 evidence of title or registration (if titling or registration 15 is required) upon satisfying the Department that such user 16 has paid the proper tax (if tax is due) to the retailer. The 17 Department shall adopt appropriate rules to carry out the 18 mandate of this paragraph. 19 If the user who would otherwise pay tax to the retailer 20 wants the transaction reporting return filed and the payment 21 of tax or proof of exemption made to the Department before 22 the retailer is willing to take these actions and such user 23 has not paid the tax to the retailer, such user may certify 24 to the fact of such delay by the retailer, and may (upon the 25 Department being satisfied of the truth of such 26 certification) transmit the information required by the 27 transaction reporting return and the remittance for tax or 28 proof of exemption directly to the Department and obtain his 29 tax receipt or exemption determination, in which event the 30 transaction reporting return and tax remittance (if a tax 31 payment was required) shall be credited by the Department to 32 the proper retailer's account with the Department, but 33 without the 2.1% or 1.75% discount provided for in this 34 Section being allowed. When the user pays the tax directly SB1028 Enrolled -17- LRB9106061PTpk 1 to the Department, he shall pay the tax in the same amount 2 and in the same form in which it would be remitted if the tax 3 had been remitted to the Department by the retailer. 4 Where a retailer collects the tax with respect to the 5 selling price of tangible personal property which he sells 6 and the purchaser thereafter returns such tangible personal 7 property and the retailer refunds the selling price thereof 8 to the purchaser, such retailer shall also refund, to the 9 purchaser, the tax so collected from the purchaser. When 10 filing his return for the period in which he refunds such tax 11 to the purchaser, the retailer may deduct the amount of the 12 tax so refunded by him to the purchaser from any other use 13 tax which such retailer may be required to pay or remit to 14 the Department, as shown by such return, if the amount of the 15 tax to be deducted was previously remitted to the Department 16 by such retailer. If the retailer has not previously 17 remitted the amount of such tax to the Department, he is 18 entitled to no deduction under this Act upon refunding such 19 tax to the purchaser. 20 Any retailer filing a return under this Section shall 21 also include (for the purpose of paying tax thereon) the 22 total tax covered by such return upon the selling price of 23 tangible personal property purchased by him at retail from a 24 retailer, but as to which the tax imposed by this Act was not 25 collected from the retailer filing such return, and such 26 retailer shall remit the amount of such tax to the Department 27 when filing such return. 28 If experience indicates such action to be practicable, 29 the Department may prescribe and furnish a combination or 30 joint return which will enable retailers, who are required to 31 file returns hereunder and also under the Retailers' 32 Occupation Tax Act, to furnish all the return information 33 required by both Acts on the one form. 34 Where the retailer has more than one business registered SB1028 Enrolled -18- LRB9106061PTpk 1 with the Department under separate registration under this 2 Act, such retailer may not file each return that is due as a 3 single return covering all such registered businesses, but 4 shall file separate returns for each such registered 5 business. 6 Beginning January 1, 1990, each month the Department 7 shall pay into the State and Local Sales Tax Reform Fund, a 8 special fund in the State Treasury which is hereby created, 9 the net revenue realized for the preceding month from the 1% 10 tax on sales of food for human consumption which is to be 11 consumed off the premises where it is sold (other than 12 alcoholic beverages, soft drinks and food which has been 13 prepared for immediate consumption) and prescription and 14 nonprescription medicines, drugs, medical appliances and 15 insulin, urine testing materials, syringes and needles used 16 by diabetics. 17 Beginning January 1, 1990, each month the Department 18 shall pay into the County and Mass Transit District Fund 4% 19 of the net revenue realized for the preceding month from the 20 6.25% general rate on the selling price of tangible personal 21 property which is purchased outside Illinois at retail from a 22 retailer and which is titled or registered by an agency of 23 this State's government. 24 Beginning January 1, 1990, each month the Department 25 shall pay into the State and Local Sales Tax Reform Fund, a 26 special fund in the State Treasury, 20% of the net revenue 27 realized for the preceding month from the 6.25% general rate 28 on the selling price of tangible personal property, other 29 than tangible personal property which is purchased outside 30 Illinois at retail from a retailer and which is titled or 31 registered by an agency of this State's government. 32 Beginning January 1, 1990, each month the Department 33 shall pay into the Local Government Tax Fund 16% of the net 34 revenue realized for the preceding month from the 6.25% SB1028 Enrolled -19- LRB9106061PTpk 1 general rate on the selling price of tangible personal 2 property which is purchased outside Illinois at retail from a 3 retailer and which is titled or registered by an agency of 4 this State's government. 5 Of the remainder of the moneys received by the Department 6 pursuant to this Act, (a) 1.75% thereof shall be paid into 7 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 8 and on and after July 1, 1989, 3.8% thereof shall be paid 9 into the Build Illinois Fund; provided, however, that if in 10 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 11 as the case may be, of the moneys received by the Department 12 and required to be paid into the Build Illinois Fund pursuant 13 to Section 3 of the Retailers' Occupation Tax Act, Section 9 14 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 15 Section 9 of the Service Occupation Tax Act, such Acts being 16 hereinafter called the "Tax Acts" and such aggregate of 2.2% 17 or 3.8%, as the case may be, of moneys being hereinafter 18 called the "Tax Act Amount", and (2) the amount transferred 19 to the Build Illinois Fund from the State and Local Sales Tax 20 Reform Fund shall be less than the Annual Specified Amount 21 (as defined in Section 3 of the Retailers' Occupation Tax 22 Act), an amount equal to the difference shall be immediately 23 paid into the Build Illinois Fund from other moneys received 24 by the Department pursuant to the Tax Acts; and further 25 provided, that if on the last business day of any month the 26 sum of (1) the Tax Act Amount required to be deposited into 27 the Build Illinois Bond Account in the Build Illinois Fund 28 during such month and (2) the amount transferred during such 29 month to the Build Illinois Fund from the State and Local 30 Sales Tax Reform Fund shall have been less than 1/12 of the 31 Annual Specified Amount, an amount equal to the difference 32 shall be immediately paid into the Build Illinois Fund from 33 other moneys received by the Department pursuant to the Tax 34 Acts; and, further provided, that in no event shall the SB1028 Enrolled -20- LRB9106061PTpk 1 payments required under the preceding proviso result in 2 aggregate payments into the Build Illinois Fund pursuant to 3 this clause (b) for any fiscal year in excess of the greater 4 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 5 for such fiscal year; and, further provided, that the amounts 6 payable into the Build Illinois Fund under this clause (b) 7 shall be payable only until such time as the aggregate amount 8 on deposit under each trust indenture securing Bonds issued 9 and outstanding pursuant to the Build Illinois Bond Act is 10 sufficient, taking into account any future investment income, 11 to fully provide, in accordance with such indenture, for the 12 defeasance of or the payment of the principal of, premium, if 13 any, and interest on the Bonds secured by such indenture and 14 on any Bonds expected to be issued thereafter and all fees 15 and costs payable with respect thereto, all as certified by 16 the Director of the Bureau of the Budget. If on the last 17 business day of any month in which Bonds are outstanding 18 pursuant to the Build Illinois Bond Act, the aggregate of the 19 moneys deposited in the Build Illinois Bond Account in the 20 Build Illinois Fund in such month shall be less than the 21 amount required to be transferred in such month from the 22 Build Illinois Bond Account to the Build Illinois Bond 23 Retirement and Interest Fund pursuant to Section 13 of the 24 Build Illinois Bond Act, an amount equal to such deficiency 25 shall be immediately paid from other moneys received by the 26 Department pursuant to the Tax Acts to the Build Illinois 27 Fund; provided, however, that any amounts paid to the Build 28 Illinois Fund in any fiscal year pursuant to this sentence 29 shall be deemed to constitute payments pursuant to clause (b) 30 of the preceding sentence and shall reduce the amount 31 otherwise payable for such fiscal year pursuant to clause (b) 32 of the preceding sentence. The moneys received by the 33 Department pursuant to this Act and required to be deposited 34 into the Build Illinois Fund are subject to the pledge, claim SB1028 Enrolled -21- LRB9106061PTpk 1 and charge set forth in Section 12 of the Build Illinois Bond 2 Act. 3 Subject to payment of amounts into the Build Illinois 4 Fund as provided in the preceding paragraph or in any 5 amendment thereto hereafter enacted, the following specified 6 monthly installment of the amount requested in the 7 certificate of the Chairman of the Metropolitan Pier and 8 Exposition Authority provided under Section 8.25f of the 9 State Finance Act, but not in excess of the sums designated 10 as "Total Deposit", shall be deposited in the aggregate from 11 collections under Section 9 of the Use Tax Act, Section 9 of 12 the Service Use Tax Act, Section 9 of the Service Occupation 13 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 14 into the McCormick Place Expansion Project Fund in the 15 specified fiscal years. 16 Fiscal Year Total Deposit 17 1993 $0 18 1994 53,000,000 19 1995 58,000,000 20 1996 61,000,000 21 1997 64,000,000 22 1998 68,000,000 23 1999 71,000,000 24 2000 75,000,000 25 2001 80,000,000 26 2002 84,000,000 27 2003 89,000,000 28 2004 93,000,000 29 2005 97,000,000 30 2006 102,000,000 31 2007 and 106,000,000 32 each fiscal year 33 thereafter that bonds 34 are outstanding under SB1028 Enrolled -22- LRB9106061PTpk 1 Section 13.2 of the 2 Metropolitan Pier and 3 Exposition Authority 4 Act, but not after fiscal year 2029. 5 Beginning July 20, 1993 and in each month of each fiscal 6 year thereafter, one-eighth of the amount requested in the 7 certificate of the Chairman of the Metropolitan Pier and 8 Exposition Authority for that fiscal year, less the amount 9 deposited into the McCormick Place Expansion Project Fund by 10 the State Treasurer in the respective month under subsection 11 (g) of Section 13 of the Metropolitan Pier and Exposition 12 Authority Act, plus cumulative deficiencies in the deposits 13 required under this Section for previous months and years, 14 shall be deposited into the McCormick Place Expansion Project 15 Fund, until the full amount requested for the fiscal year, 16 but not in excess of the amount specified above as "Total 17 Deposit", has been deposited. 18 Subject to payment of amounts into the Build Illinois 19 Fund and the McCormick Place Expansion Project Fund pursuant 20 to the preceding paragraphs or in any amendment thereto 21 hereafter enacted, each month the Department shall pay into 22 the Local Government Distributive Fund .4% of the net revenue 23 realized for the preceding month from the 5% general rate, or 24 .4% of 80% of the net revenue realized for the preceding 25 month from the 6.25% general rate, as the case may be, on the 26 selling price of tangible personal property which amount 27 shall, subject to appropriation, be distributed as provided 28 in Section 2 of the State Revenue Sharing Act. No payments or 29 distributions pursuant to this paragraph shall be made if the 30 tax imposed by this Act on photoprocessing products is 31 declared unconstitutional, or if the proceeds from such tax 32 are unavailable for distribution because of litigation. 33 Subject to payment of amounts into the Build Illinois 34 Fund, the McCormick Place Expansion Project Fund, and the SB1028 Enrolled -23- LRB9106061PTpk 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 Of the remainder of the moneys received by the Department 9 pursuant to this Act, 75% thereof shall be paid into the 10 State Treasury and 25% shall be reserved in a special account 11 and used only for the transfer to the Common School Fund as 12 part of the monthly transfer from the General Revenue Fund in 13 accordance with Section 8a of the State Finance Act. 14 As soon as possible after the first day of each month, 15 upon certification of the Department of Revenue, the 16 Comptroller shall order transferred and the Treasurer shall 17 transfer from the General Revenue Fund to the Motor Fuel Tax 18 Fund an amount equal to 1.7% of 80% of the net revenue 19 realized under this Act for the second preceding month;20except that this transfer shall not be made for the months21February through June of 1992. Beginning April 1, 2000, this 22 transfer is no longer required and shall not be made. 23 Net revenue realized for a month shall be the revenue 24 collected by the State pursuant to this Act, less the amount 25 paid out during that month as refunds to taxpayers for 26 overpayment of liability. 27 For greater simplicity of administration, manufacturers, 28 importers and wholesalers whose products are sold at retail 29 in Illinois by numerous retailers, and who wish to do so, may 30 assume the responsibility for accounting and paying to the 31 Department all tax accruing under this Act with respect to 32 such sales, if the retailers who are affected do not make 33 written objection to the Department to this arrangement. 34 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; SB1028 Enrolled -24- LRB9106061PTpk 1 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.) 2 Section 15. The Service Use Tax Act is amended by 3 changing Section 9 as follows: 4 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 5 Sec. 9. Each serviceman required or authorized to 6 collect the tax herein imposed shall pay to the Department 7 the amount of such tax (except as otherwise provided) at the 8 time when he is required to file his return for the period 9 during which such tax was collected, less a discount of 2.1% 10 prior to January 1, 1990 and 1.75% on and after January 1, 11 1990, or $5 per calendar year, whichever is greater, which is 12 allowed to reimburse the serviceman for expenses incurred in 13 collecting the tax, keeping records, preparing and filing 14 returns, remitting the tax and supplying data to the 15 Department on request. A serviceman need not remit that part 16 of any tax collected by him to the extent that he is required 17 to pay and does pay the tax imposed by the Service Occupation 18 Tax Act with respect to his sale of service involving the 19 incidental transfer by him of the same property. 20 Except as provided hereinafter in this Section, on or 21 before the twentieth day of each calendar month, such 22 serviceman shall file a return for the preceding calendar 23 month in accordance with reasonable Rules and Regulations to 24 be promulgated by the Department. Such return shall be filed 25 on a form prescribed by the Department and shall contain such 26 information as the Department may reasonably require. 27 The Department may require returns to be filed on a 28 quarterly basis. If so required, a return for each calendar 29 quarter shall be filed on or before the twentieth day of the 30 calendar month following the end of such calendar quarter. 31 The taxpayer shall also file a return with the Department for 32 each of the first two months of each calendar quarter, on or SB1028 Enrolled -25- LRB9106061PTpk 1 before the twentieth day of the following calendar month, 2 stating: 3 1. The name of the seller; 4 2. The address of the principal place of business 5 from which he engages in business as a serviceman in this 6 State; 7 3. The total amount of taxable receipts received by 8 him during the preceding calendar month, including 9 receipts from charge and time sales, but less all 10 deductions allowed by law; 11 4. The amount of credit provided in Section 2d of 12 this Act; 13 5. The amount of tax due; 14 5-5. The signature of the taxpayer; and 15 6. Such other reasonable information as the 16 Department may require. 17 If a taxpayer fails to sign a return within 30 days after 18 the proper notice and demand for signature by the Department, 19 the return shall be considered valid and any amount shown to 20 be due on the return shall be deemed assessed. 21 Beginning October 1, 1993, a taxpayer who has an average 22 monthly tax liability of $150,000 or more shall make all 23 payments required by rules of the Department by electronic 24 funds transfer. Beginning October 1, 1994, a taxpayer who 25 has an average monthly tax liability of $100,000 or more 26 shall make all payments required by rules of the Department 27 by electronic funds transfer. Beginning October 1, 1995, a 28 taxpayer who has an average monthly tax liability of $50,000 29 or more shall make all payments required by rules of the 30 Department by electronic funds transfer. The term "average 31 monthly tax liability" means the sum of the taxpayer's 32 liabilities under this Act, and under all other State and 33 local occupation and use tax laws administered by the 34 Department, for the immediately preceding calendar year SB1028 Enrolled -26- LRB9106061PTpk 1 divided by 12. 2 Before August 1 of each year beginning in 1993, the 3 Department shall notify all taxpayers required to make 4 payments by electronic funds transfer. All taxpayers required 5 to make payments by electronic funds transfer shall make 6 those payments for a minimum of one year beginning on October 7 1. 8 Any taxpayer not required to make payments by electronic 9 funds transfer may make payments by electronic funds transfer 10 with the permission of the Department. 11 All taxpayers required to make payment by electronic 12 funds transfer and any taxpayers authorized to voluntarily 13 make payments by electronic funds transfer shall make those 14 payments in the manner authorized by the Department. 15 The Department shall adopt such rules as are necessary to 16 effectuate a program of electronic funds transfer and the 17 requirements of this Section. 18 If the serviceman is otherwise required to file a monthly 19 return and if the serviceman's average monthly tax liability 20 to the Department does not exceed $200, the Department may 21 authorize his returns to be filed on a quarter annual basis, 22 with the return for January, February and March of a given 23 year being due by April 20 of such year; with the return for 24 April, May and June of a given year being due by July 20 of 25 such year; with the return for July, August and September of 26 a given year being due by October 20 of such year, and with 27 the return for October, November and December of a given year 28 being due by January 20 of the following year. 29 If the serviceman is otherwise required to file a monthly 30 or quarterly return and if the serviceman's average monthly 31 tax liability to the Department does not exceed $50, the 32 Department may authorize his returns to be filed on an annual 33 basis, with the return for a given year being due by January 34 20 of the following year. SB1028 Enrolled -27- LRB9106061PTpk 1 Such quarter annual and annual returns, as to form and 2 substance, shall be subject to the same requirements as 3 monthly returns. 4 Notwithstanding any other provision in this Act 5 concerning the time within which a serviceman may file his 6 return, in the case of any serviceman who ceases to engage in 7 a kind of business which makes him responsible for filing 8 returns under this Act, such serviceman shall file a final 9 return under this Act with the Department not more than 1 10 month after discontinuing such business. 11 Where a serviceman collects the tax with respect to the 12 selling price of property which he sells and the purchaser 13 thereafter returns such property and the serviceman refunds 14 the selling price thereof to the purchaser, such serviceman 15 shall also refund, to the purchaser, the tax so collected 16 from the purchaser. When filing his return for the period in 17 which he refunds such tax to the purchaser, the serviceman 18 may deduct the amount of the tax so refunded by him to the 19 purchaser from any other Service Use Tax, Service Occupation 20 Tax, retailers' occupation tax or use tax which such 21 serviceman may be required to pay or remit to the Department, 22 as shown by such return, provided that the amount of the tax 23 to be deducted shall previously have been remitted to the 24 Department by such serviceman. If the serviceman shall not 25 previously have remitted the amount of such tax to the 26 Department, he shall be entitled to no deduction hereunder 27 upon refunding such tax to the purchaser. 28 Any serviceman filing a return hereunder shall also 29 include the total tax upon the selling price of tangible 30 personal property purchased for use by him as an incident to 31 a sale of service, and such serviceman shall remit the amount 32 of such tax to the Department when filing such return. 33 If experience indicates such action to be practicable, 34 the Department may prescribe and furnish a combination or SB1028 Enrolled -28- LRB9106061PTpk 1 joint return which will enable servicemen, who are required 2 to file returns hereunder and also under the Service 3 Occupation Tax Act, to furnish all the return information 4 required by both Acts on the one form. 5 Where the serviceman has more than one business 6 registered with the Department under separate registration 7 hereunder, such serviceman shall not file each return that is 8 due as a single return covering all such registered 9 businesses, but shall file separate returns for each such 10 registered business. 11 Beginning January 1, 1990, each month the Department 12 shall pay into the State and Local Tax Reform Fund, a special 13 fund in the State Treasury, the net revenue realized for the 14 preceding month from the 1% tax on sales of food for human 15 consumption which is to be consumed off the premises where it 16 is sold (other than alcoholic beverages, soft drinks and food 17 which has been prepared for immediate consumption) and 18 prescription and nonprescription medicines, drugs, medical 19 appliances and insulin, urine testing materials, syringes and 20 needles used by diabetics. 21 Beginning January 1, 1990, each month the Department 22 shall pay into the State and Local Sales Tax Reform Fund 20% 23 of the net revenue realized for the preceding month from the 24 6.25% general rate on transfers of tangible personal 25 property, other than tangible personal property which is 26 purchased outside Illinois at retail from a retailer and 27 which is titled or registered by an agency of this State's 28 government. 29 Of the remainder of the moneys received by the Department 30 pursuant to this Act, (a) 1.75% thereof shall be paid into 31 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 32 and on and after July 1, 1989, 3.8% thereof shall be paid 33 into the Build Illinois Fund; provided, however, that if in 34 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, SB1028 Enrolled -29- LRB9106061PTpk 1 as the case may be, of the moneys received by the Department 2 and required to be paid into the Build Illinois Fund pursuant 3 to Section 3 of the Retailers' Occupation Tax Act, Section 9 4 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 5 Section 9 of the Service Occupation Tax Act, such Acts being 6 hereinafter called the "Tax Acts" and such aggregate of 2.2% 7 or 3.8%, as the case may be, of moneys being hereinafter 8 called the "Tax Act Amount", and (2) the amount transferred 9 to the Build Illinois Fund from the State and Local Sales Tax 10 Reform Fund shall be less than the Annual Specified Amount 11 (as defined in Section 3 of the Retailers' Occupation Tax 12 Act), an amount equal to the difference shall be immediately 13 paid into the Build Illinois Fund from other moneys received 14 by the Department pursuant to the Tax Acts; and further 15 provided, that if on the last business day of any month the 16 sum of (1) the Tax Act Amount required to be deposited into 17 the Build Illinois Bond Account in the Build Illinois Fund 18 during such month and (2) the amount transferred during such 19 month to the Build Illinois Fund from the State and Local 20 Sales Tax Reform Fund shall have been less than 1/12 of the 21 Annual Specified Amount, an amount equal to the difference 22 shall be immediately paid into the Build Illinois Fund from 23 other moneys received by the Department pursuant to the Tax 24 Acts; and, further provided, that in no event shall the 25 payments required under the preceding proviso result in 26 aggregate payments into the Build Illinois Fund pursuant to 27 this clause (b) for any fiscal year in excess of the greater 28 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 29 for such fiscal year; and, further provided, that the amounts 30 payable into the Build Illinois Fund under this clause (b) 31 shall be payable only until such time as the aggregate amount 32 on deposit under each trust indenture securing Bonds issued 33 and outstanding pursuant to the Build Illinois Bond Act is 34 sufficient, taking into account any future investment income, SB1028 Enrolled -30- LRB9106061PTpk 1 to fully provide, in accordance with such indenture, for the 2 defeasance of or the payment of the principal of, premium, if 3 any, and interest on the Bonds secured by such indenture and 4 on any Bonds expected to be issued thereafter and all fees 5 and costs payable with respect thereto, all as certified by 6 the Director of the Bureau of the Budget. If on the last 7 business day of any month in which Bonds are outstanding 8 pursuant to the Build Illinois Bond Act, the aggregate of the 9 moneys deposited in the Build Illinois Bond Account in the 10 Build Illinois Fund in such month shall be less than the 11 amount required to be transferred in such month from the 12 Build Illinois Bond Account to the Build Illinois Bond 13 Retirement and Interest Fund pursuant to Section 13 of the 14 Build Illinois Bond Act, an amount equal to such deficiency 15 shall be immediately paid from other moneys received by the 16 Department pursuant to the Tax Acts to the Build Illinois 17 Fund; provided, however, that any amounts paid to the Build 18 Illinois Fund in any fiscal year pursuant to this sentence 19 shall be deemed to constitute payments pursuant to clause (b) 20 of the preceding sentence and shall reduce the amount 21 otherwise payable for such fiscal year pursuant to clause (b) 22 of the preceding sentence. The moneys received by the 23 Department pursuant to this Act and required to be deposited 24 into the Build Illinois Fund are subject to the pledge, claim 25 and charge set forth in Section 12 of the Build Illinois Bond 26 Act. 27 Subject to payment of amounts into the Build Illinois 28 Fund as provided in the preceding paragraph or in any 29 amendment thereto hereafter enacted, the following specified 30 monthly installment of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority provided under Section 8.25f of the 33 State Finance Act, but not in excess of the sums designated 34 as "Total Deposit", shall be deposited in the aggregate from SB1028 Enrolled -31- LRB9106061PTpk 1 collections under Section 9 of the Use Tax Act, Section 9 of 2 the Service Use Tax Act, Section 9 of the Service Occupation 3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 4 into the McCormick Place Expansion Project Fund in the 5 specified fiscal years. 6 Fiscal Year Total Deposit 7 1993 $0 8 1994 53,000,000 9 1995 58,000,000 10 1996 61,000,000 11 1997 64,000,000 12 1998 68,000,000 13 1999 71,000,000 14 2000 75,000,000 15 2001 80,000,000 16 2002 84,000,000 17 2003 89,000,000 18 2004 93,000,000 19 2005 97,000,000 20 2006 102,000,000 21 2007 and 106,000,000 22 each fiscal year 23 thereafter that bonds 24 are outstanding under 25 Section 13.2 of the 26 Metropolitan Pier and 27 Exposition Authority Act, 28 but not after fiscal year 2029. 29 Beginning July 20, 1993 and in each month of each fiscal 30 year thereafter, one-eighth of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority for that fiscal year, less the amount 33 deposited into the McCormick Place Expansion Project Fund by 34 the State Treasurer in the respective month under subsection SB1028 Enrolled -32- LRB9106061PTpk 1 (g) of Section 13 of the Metropolitan Pier and Exposition 2 Authority Act, plus cumulative deficiencies in the deposits 3 required under this Section for previous months and years, 4 shall be deposited into the McCormick Place Expansion Project 5 Fund, until the full amount requested for the fiscal year, 6 but not in excess of the amount specified above as "Total 7 Deposit", has been deposited. 8 Subject to payment of amounts into the Build Illinois 9 Fund and the McCormick Place Expansion Project Fund pursuant 10 to the preceding paragraphs or in any amendment thereto 11 hereafter enacted, each month the Department shall pay into 12 the Local Government Distributive Fund 0.4% of the net 13 revenue realized for the preceding month from the 5% general 14 rate or 0.4% of 80% of the net revenue realized for the 15 preceding month from the 6.25% general rate, as the case may 16 be, on the selling price of tangible personal property which 17 amount shall, subject to appropriation, be distributed as 18 provided in Section 2 of the State Revenue Sharing Act. No 19 payments or distributions pursuant to this paragraph shall be 20 made if the tax imposed by this Act on photo processing 21 products is declared unconstitutional, or if the proceeds 22 from such tax are unavailable for distribution because of 23 litigation. 24 Subject to payment of amounts into the Build Illinois 25 Fund, the McCormick Place Expansion Project Fund, and the 26 Local Government Distributive Fund pursuant to the preceding 27 paragraphs or in any amendments thereto hereafter enacted, 28 beginning July 1, 1993, the Department shall each month pay 29 into the Illinois Tax Increment Fund 0.27% of 80% of the net 30 revenue realized for the preceding month from the 6.25% 31 general rate on the selling price of tangible personal 32 property. 33 All remaining moneys received by the Department pursuant 34 to this Act shall be paid into the General Revenue Fund of SB1028 Enrolled -33- LRB9106061PTpk 1 the State Treasury. 2 As soon as possible after the first day of each month, 3 upon certification of the Department of Revenue, the 4 Comptroller shall order transferred and the Treasurer shall 5 transfer from the General Revenue Fund to the Motor Fuel Tax 6 Fund an amount equal to 1.7% of 80% of the net revenue 7 realized under this Act for the second preceding month;8except that this transfer shall not be made for the months9February through June, 1992. Beginning April 1, 2000, this 10 transfer is no longer required and shall not be made. 11 Net revenue realized for a month shall be the revenue 12 collected by the State pursuant to this Act, less the amount 13 paid out during that month as refunds to taxpayers for 14 overpayment of liability. 15 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.) 16 Section 20. The Service Occupation Tax Act is amended by 17 changing Section 9 as follows: 18 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 19 Sec. 9. Each serviceman required or authorized to 20 collect the tax herein imposed shall pay to the Department 21 the amount of such tax at the time when he is required to 22 file his return for the period during which such tax was 23 collectible, less a discount of 2.1% prior to January 1, 24 1990, and 1.75% on and after January 1, 1990, or $5 per 25 calendar year, whichever is greater, which is allowed to 26 reimburse the serviceman for expenses incurred in collecting 27 the tax, keeping records, preparing and filing returns, 28 remitting the tax and supplying data to the Department on 29 request. 30 Where such tangible personal property is sold under a 31 conditional sales contract, or under any other form of sale 32 wherein the payment of the principal sum, or a part thereof, SB1028 Enrolled -34- LRB9106061PTpk 1 is extended beyond the close of the period for which the 2 return is filed, the serviceman, in collecting the tax may 3 collect, for each tax return period, only the tax applicable 4 to the part of the selling price actually received during 5 such tax return period. 6 Except as provided hereinafter in this Section, on or 7 before the twentieth day of each calendar month, such 8 serviceman shall file a return for the preceding calendar 9 month in accordance with reasonable rules and regulations to 10 be promulgated by the Department of Revenue. Such return 11 shall be filed on a form prescribed by the Department and 12 shall contain such information as the Department may 13 reasonably require. 14 The Department may require returns to be filed on a 15 quarterly basis. If so required, a return for each calendar 16 quarter shall be filed on or before the twentieth day of the 17 calendar month following the end of such calendar quarter. 18 The taxpayer shall also file a return with the Department for 19 each of the first two months of each calendar quarter, on or 20 before the twentieth day of the following calendar month, 21 stating: 22 1. The name of the seller; 23 2. The address of the principal place of business 24 from which he engages in business as a serviceman in this 25 State; 26 3. The total amount of taxable receipts received by 27 him during the preceding calendar month, including 28 receipts from charge and time sales, but less all 29 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 SB1028 Enrolled -35- LRB9106061PTpk 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 A serviceman may accept a Manufacturer's Purchase Credit 7 certification from a purchaser in satisfaction of Service Use 8 Tax as provided in Section 3-70 of the Service Use Tax Act if 9 the purchaser provides the appropriate documentation as 10 required by Section 3-70 of the Service Use Tax Act. A 11 Manufacturer's Purchase Credit certification, accepted by a 12 serviceman as provided in Section 3-70 of the Service Use Tax 13 Act, may be used by that serviceman to satisfy Service 14 Occupation Tax liability in the amount claimed in the 15 certification, not to exceed 6.25% of the receipts subject to 16 tax from a qualifying purchase. 17 If the serviceman's average monthly tax liability to the 18 Department does not exceed $200, the Department may authorize 19 his returns to be filed on a quarter annual basis, with the 20 return for January, February and March of a given year being 21 due by April 20 of such year; with the return for April, May 22 and June of a given year being due by July 20 of such year; 23 with the return for July, August and September of a given 24 year being due by October 20 of such year, and with the 25 return for October, November and December of a given year 26 being due by January 20 of the following year. 27 If the serviceman's average monthly tax liability to the 28 Department does not exceed $50, the Department may authorize 29 his returns to be filed on an annual basis, with the return 30 for a given year being due by January 20 of the following 31 year. 32 Such quarter annual and annual returns, as to form and 33 substance, shall be subject to the same requirements as 34 monthly returns. SB1028 Enrolled -36- LRB9106061PTpk 1 Notwithstanding any other provision in this Act 2 concerning the time within which a serviceman may file his 3 return, in the case of any serviceman who ceases to engage in 4 a kind of business which makes him responsible for filing 5 returns under this Act, such serviceman shall file a final 6 return under this Act with the Department not more than 1 7 month after discontinuing such business. 8 Beginning October 1, 1993, a taxpayer who has an average 9 monthly tax liability of $150,000 or more shall make all 10 payments required by rules of the Department by electronic 11 funds transfer. Beginning October 1, 1994, a taxpayer who 12 has an average monthly tax liability of $100,000 or more 13 shall make all payments required by rules of the Department 14 by electronic funds transfer. Beginning October 1, 1995, a 15 taxpayer who has an average monthly tax liability of $50,000 16 or more shall make all payments required by rules of the 17 Department by electronic funds transfer. The term "average 18 monthly tax liability" means the sum of the taxpayer's 19 liabilities under this Act, and under all other State and 20 local occupation and use tax laws administered by the 21 Department, for the immediately preceding calendar year 22 divided by 12. 23 Before August 1 of each year beginning in 1993, the 24 Department shall notify all taxpayers required to make 25 payments by electronic funds transfer. All taxpayers 26 required to make payments by electronic funds transfer shall 27 make those payments for a minimum of one year beginning on 28 October 1. 29 Any taxpayer not required to make payments by electronic 30 funds transfer may make payments by electronic funds transfer 31 with the permission of the Department. 32 All taxpayers required to make payment by electronic 33 funds transfer and any taxpayers authorized to voluntarily 34 make payments by electronic funds transfer shall make those SB1028 Enrolled -37- LRB9106061PTpk 1 payments in the manner authorized by the Department. 2 The Department shall adopt such rules as are necessary to 3 effectuate a program of electronic funds transfer and the 4 requirements of this Section. 5 Where a serviceman collects the tax with respect to the 6 selling price of tangible personal property which he sells 7 and the purchaser thereafter returns such tangible personal 8 property and the serviceman refunds the selling price thereof 9 to the purchaser, such serviceman shall also refund, to the 10 purchaser, the tax so collected from the purchaser. When 11 filing his return for the period in which he refunds such tax 12 to the purchaser, the serviceman may deduct the amount of the 13 tax so refunded by him to the purchaser from any other 14 Service Occupation Tax, Service Use Tax, Retailers' 15 Occupation Tax or Use Tax which such serviceman may be 16 required to pay or remit to the Department, as shown by such 17 return, provided that the amount of the tax to be deducted 18 shall previously have been remitted to the Department by such 19 serviceman. If the serviceman shall not previously have 20 remitted the amount of such tax to the Department, he shall 21 be entitled to no deduction hereunder upon refunding such tax 22 to the purchaser. 23 If experience indicates such action to be practicable, 24 the Department may prescribe and furnish a combination or 25 joint return which will enable servicemen, who are required 26 to file returns hereunder and also under the Retailers' 27 Occupation Tax Act, the Use Tax Act or the Service Use Tax 28 Act, to furnish all the return information required by all 29 said Acts on the one form. 30 Where the serviceman has more than one business 31 registered with the Department under separate registrations 32 hereunder, such serviceman shall file separate returns for 33 each registered business. 34 Beginning January 1, 1990, each month the Department SB1028 Enrolled -38- LRB9106061PTpk 1 shall pay into the Local Government Tax Fund the revenue 2 realized for the preceding month from the 1% tax on sales of 3 food for human consumption which is to be consumed off the 4 premises where it is sold (other than alcoholic beverages, 5 soft drinks and food which has been prepared for immediate 6 consumption) and prescription and nonprescription medicines, 7 drugs, medical appliances and insulin, urine testing 8 materials, syringes and needles used by diabetics. 9 Beginning January 1, 1990, each month the Department 10 shall pay into the County and Mass Transit District Fund 4% 11 of the revenue realized for the preceding month from the 12 6.25% general rate. 13 Beginning January 1, 1990, each month the Department 14 shall pay into the Local Government Tax Fund 16% of the 15 revenue realized for the preceding month from the 6.25% 16 general rate on transfers of tangible personal property. 17 Of the remainder of the moneys received by the Department 18 pursuant to this Act, (a) 1.75% thereof shall be paid into 19 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 20 and on and after July 1, 1989, 3.8% thereof shall be paid 21 into the Build Illinois Fund; provided, however, that if in 22 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 23 as the case may be, of the moneys received by the Department 24 and required to be paid into the Build Illinois Fund pursuant 25 to Section 3 of the Retailers' Occupation Tax Act, Section 9 26 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 27 Section 9 of the Service Occupation Tax Act, such Acts being 28 hereinafter called the "Tax Acts" and such aggregate of 2.2% 29 or 3.8%, as the case may be, of moneys being hereinafter 30 called the "Tax Act Amount", and (2) the amount transferred 31 to the Build Illinois Fund from the State and Local Sales Tax 32 Reform Fund shall be less than the Annual Specified Amount 33 (as defined in Section 3 of the Retailers' Occupation Tax 34 Act), an amount equal to the difference shall be immediately SB1028 Enrolled -39- LRB9106061PTpk 1 paid into the Build Illinois Fund from other moneys received 2 by the Department pursuant to the Tax Acts; and further 3 provided, that if on the last business day of any month the 4 sum of (1) the Tax Act Amount required to be deposited into 5 the Build Illinois Account in the Build Illinois Fund during 6 such month and (2) the amount transferred during such month 7 to the Build Illinois Fund from the State and Local Sales Tax 8 Reform Fund shall have been less than 1/12 of the Annual 9 Specified Amount, an amount equal to the difference shall be 10 immediately paid into the Build Illinois Fund from other 11 moneys received by the Department pursuant to the Tax Acts; 12 and, further provided, that in no event shall the payments 13 required under the preceding proviso result in aggregate 14 payments into the Build Illinois Fund pursuant to this clause 15 (b) for any fiscal year in excess of the greater of (i) the 16 Tax Act Amount or (ii) the Annual Specified Amount for such 17 fiscal year; and, further provided, that the amounts payable 18 into the Build Illinois Fund under this clause (b) shall be 19 payable only until such time as the aggregate amount on 20 deposit under each trust indenture securing Bonds issued and 21 outstanding pursuant to the Build Illinois Bond Act is 22 sufficient, taking into account any future investment income, 23 to fully provide, in accordance with such indenture, for the 24 defeasance of or the payment of the principal of, premium, if 25 any, and interest on the Bonds secured by such indenture and 26 on any Bonds expected to be issued thereafter and all fees 27 and costs payable with respect thereto, all as certified by 28 the Director of the Bureau of the Budget. If on the last 29 business day of any month in which Bonds are outstanding 30 pursuant to the Build Illinois Bond Act, the aggregate of the 31 moneys deposited in the Build Illinois Bond Account in the 32 Build Illinois Fund in such month shall be less than the 33 amount required to be transferred in such month from the 34 Build Illinois Bond Account to the Build Illinois Bond SB1028 Enrolled -40- LRB9106061PTpk 1 Retirement and Interest Fund pursuant to Section 13 of the 2 Build Illinois Bond Act, an amount equal to such deficiency 3 shall be immediately paid from other moneys received by the 4 Department pursuant to the Tax Acts to the Build Illinois 5 Fund; provided, however, that any amounts paid to the Build 6 Illinois Fund in any fiscal year pursuant to this sentence 7 shall be deemed to constitute payments pursuant to clause (b) 8 of the preceding sentence and shall reduce the amount 9 otherwise payable for such fiscal year pursuant to clause (b) 10 of the preceding sentence. The moneys received by the 11 Department pursuant to this Act and required to be deposited 12 into the Build Illinois Fund are subject to the pledge, claim 13 and charge set forth in Section 12 of the Build Illinois Bond 14 Act. 15 Subject to payment of amounts into the Build Illinois 16 Fund as provided in the preceding paragraph or in any 17 amendment thereto hereafter enacted, the following specified 18 monthly installment of the amount requested in the 19 certificate of the Chairman of the Metropolitan Pier and 20 Exposition Authority provided under Section 8.25f of the 21 State Finance Act, but not in excess of the sums designated 22 as "Total Deposit", shall be deposited in the aggregate from 23 collections under Section 9 of the Use Tax Act, Section 9 of 24 the Service Use Tax Act, Section 9 of the Service Occupation 25 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 26 into the McCormick Place Expansion Project Fund in the 27 specified fiscal years. 28 Fiscal Year Total Deposit 29 1993 $0 30 1994 53,000,000 31 1995 58,000,000 32 1996 61,000,000 33 1997 64,000,000 34 1998 68,000,000 SB1028 Enrolled -41- LRB9106061PTpk 1 1999 71,000,000 2 2000 75,000,000 3 2001 80,000,000 4 2002 84,000,000 5 2003 89,000,000 6 2004 93,000,000 7 2005 97,000,000 8 2006 102,000,000 9 2007 and 106,000,000 10 each fiscal year 11 thereafter that bonds 12 are outstanding under 13 Section 13.2 of the 14 Metropolitan Pier and 15 Exposition Authority 16 Act, but not after fiscal year 2029. 17 Beginning July 20, 1993 and in each month of each fiscal 18 year thereafter, one-eighth of the amount requested in the 19 certificate of the Chairman of the Metropolitan Pier and 20 Exposition Authority for that fiscal year, less the amount 21 deposited into the McCormick Place Expansion Project Fund by 22 the State Treasurer in the respective month under subsection 23 (g) of Section 13 of the Metropolitan Pier and Exposition 24 Authority Act, plus cumulative deficiencies in the deposits 25 required under this Section for previous months and years, 26 shall be deposited into the McCormick Place Expansion Project 27 Fund, until the full amount requested for the fiscal year, 28 but not in excess of the amount specified above as "Total 29 Deposit", has been deposited. 30 Subject to payment of amounts into the Build Illinois 31 Fund and the McCormick Place Expansion Project Fund pursuant 32 to the preceding paragraphs or in any amendment thereto 33 hereafter enacted, each month the Department shall pay into 34 the Local Government Distributive Fund 0.4% of the net SB1028 Enrolled -42- LRB9106061PTpk 1 revenue realized for the preceding month from the 5% general 2 rate or 0.4% of 80% of the net revenue realized for the 3 preceding month from the 6.25% general rate, as the case may 4 be, on the selling price of tangible personal property which 5 amount shall, subject to appropriation, be distributed as 6 provided in Section 2 of the State Revenue Sharing Act. No 7 payments or distributions pursuant to this paragraph shall be 8 made if the tax imposed by this Act on photoprocessing 9 products is declared unconstitutional, or if the proceeds 10 from such tax are unavailable for distribution because of 11 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 Remaining moneys received by the Department pursuant to 22 this Act shall be paid into the General Revenue Fund of the 23 State Treasury. 24 The Department may, upon separate written notice to a 25 taxpayer, require the taxpayer to prepare and file with the 26 Department on a form prescribed by the Department within not 27 less than 60 days after receipt of the notice an annual 28 information return for the tax year specified in the notice. 29 Such annual return to the Department shall include a 30 statement of gross receipts as shown by the taxpayer's last 31 Federal income tax return. If the total receipts of the 32 business as reported in the Federal income tax return do not 33 agree with the gross receipts reported to the Department of 34 Revenue for the same period, the taxpayer shall attach to his SB1028 Enrolled -43- LRB9106061PTpk 1 annual return a schedule showing a reconciliation of the 2 2 amounts and the reasons for the difference. The taxpayer's 3 annual return to the Department shall also disclose the cost 4 of goods sold by the taxpayer during the year covered by such 5 return, opening and closing inventories of such goods for 6 such year, cost of goods used from stock or taken from stock 7 and given away by the taxpayer during such year, pay roll 8 information of the taxpayer's business during such year and 9 any additional reasonable information which the Department 10 deems would be helpful in determining the accuracy of the 11 monthly, quarterly or annual returns filed by such taxpayer 12 as hereinbefore provided for in this Section. 13 If the annual information return required by this Section 14 is not filed when and as required, the taxpayer shall be 15 liable as follows: 16 (i) Until January 1, 1994, the taxpayer shall be 17 liable for a penalty equal to 1/6 of 1% of the tax due 18 from such taxpayer under this Act during the period to be 19 covered by the annual return for each month or fraction 20 of a month until such return is filed as required, the 21 penalty to be assessed and collected in the same manner 22 as any other penalty provided for in this Act. 23 (ii) On and after January 1, 1994, the taxpayer 24 shall be liable for a penalty as described in Section 3-4 25 of the Uniform Penalty and Interest Act. 26 The chief executive officer, proprietor, owner or highest 27 ranking manager shall sign the annual return to certify the 28 accuracy of the information contained therein. Any person 29 who willfully signs the annual return containing false or 30 inaccurate information shall be guilty of perjury and 31 punished accordingly. The annual return form prescribed by 32 the Department shall include a warning that the person 33 signing the return may be liable for perjury. 34 The foregoing portion of this Section concerning the SB1028 Enrolled -44- LRB9106061PTpk 1 filing of an annual information return shall not apply to a 2 serviceman who is not required to file an income tax return 3 with the United States Government. 4 As soon as possible after the first day of each month, 5 upon certification of the Department of Revenue, the 6 Comptroller shall order transferred and the Treasurer shall 7 transfer from the General Revenue Fund to the Motor Fuel Tax 8 Fund an amount equal to 1.7% of 80% of the net revenue 9 realized under this Act for the second preceding month;10except that this transfer shall not be made for the months11February through June, 1992. Beginning April 1, 2000, this 12 transfer is no longer required and shall not be made. 13 Net revenue realized for a month shall be the revenue 14 collected by the State pursuant to this Act, less the amount 15 paid out during that month as refunds to taxpayers for 16 overpayment of liability. 17 For greater simplicity of administration, it shall be 18 permissible for manufacturers, importers and wholesalers 19 whose products are sold by numerous servicemen in Illinois, 20 and who wish to do so, to assume the responsibility for 21 accounting and paying to the Department all tax accruing 22 under this Act with respect to such sales, if the servicemen 23 who are affected do not make written objection to the 24 Department to this arrangement. 25 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95; 26 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff. 27 7-8-98.) 28 Section 25. The Retailers' Occupation Tax Act is amended 29 by changing Section 3 as follows: 30 (35 ILCS 120/3) (from Ch. 120, par. 442) 31 Sec. 3. Except as provided in this Section, on or before 32 the twentieth day of each calendar month, every person SB1028 Enrolled -45- LRB9106061PTpk 1 engaged in the business of selling tangible personal property 2 at retail in this State during the preceding calendar month 3 shall file a return with the Department, stating: 4 1. The name of the seller; 5 2. His residence address and the address of his 6 principal place of business and the address of the 7 principal place of business (if that is a different 8 address) from which he engages in the business of selling 9 tangible personal property at retail in this State; 10 3. Total amount of receipts received by him during 11 the preceding calendar month or quarter, as the case may 12 be, from sales of tangible personal property, and from 13 services furnished, by him during such preceding calendar 14 month or quarter; 15 4. Total amount received by him during the 16 preceding calendar month or quarter on charge and time 17 sales of tangible personal property, and from services 18 furnished, by him prior to the month or quarter for which 19 the return is filed; 20 5. Deductions allowed by law; 21 6. Gross receipts which were received by him during 22 the preceding calendar month or quarter and upon the 23 basis of which the tax is imposed; 24 7. The amount of credit provided in Section 2d of 25 this Act; 26 8. The amount of tax due; 27 9. The signature of the taxpayer; and 28 10. Such other reasonable information as the 29 Department may require. 30 If a taxpayer fails to sign a return within 30 days after 31 the proper notice and demand for signature by the Department, 32 the return shall be considered valid and any amount shown to 33 be due on the return shall be deemed assessed. 34 Each return shall be accompanied by the statement of SB1028 Enrolled -46- LRB9106061PTpk 1 prepaid tax issued pursuant to Section 2e for which credit is 2 claimed. 3 A retailer may accept a Manufacturer's Purchase Credit 4 certification from a purchaser in satisfaction of Use Tax as 5 provided in Section 3-85 of the Use Tax Act if the purchaser 6 provides the appropriate documentation as required by Section 7 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 8 certification, accepted by a retailer as provided in Section 9 3-85 of the Use Tax Act, may be used by that retailer to 10 satisfy Retailers' Occupation Tax liability in the amount 11 claimed in the certification, not to exceed 6.25% of the 12 receipts subject to tax from a qualifying purchase. 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; and 33 6. Such other reasonable information as the 34 Department may require. SB1028 Enrolled -47- LRB9106061PTpk 1 If a total amount of less than $1 is payable, refundable 2 or creditable, such amount shall be disregarded if it is less 3 than 50 cents and shall be increased to $1 if it is 50 cents 4 or more. 5 Beginning October 1, 1993, a taxpayer who has an average 6 monthly tax liability of $150,000 or more shall make all 7 payments required by rules of the Department by electronic 8 funds transfer. Beginning October 1, 1994, a taxpayer who 9 has an average monthly tax liability of $100,000 or more 10 shall make all payments required by rules of the Department 11 by electronic funds transfer. Beginning October 1, 1995, a 12 taxpayer who has an average monthly tax liability of $50,000 13 or more shall make all payments required by rules of the 14 Department by electronic funds transfer. The term "average 15 monthly tax liability" shall be the sum of the taxpayer's 16 liabilities under this Act, and under all other State and 17 local occupation and use tax laws administered by the 18 Department, for the immediately preceding calendar year 19 divided by 12. 20 Before August 1 of each year beginning in 1993, the 21 Department shall notify all taxpayers required to make 22 payments by electronic funds transfer. All taxpayers 23 required to make payments by electronic funds transfer shall 24 make those payments for a minimum of one year beginning on 25 October 1. 26 Any taxpayer not required to make payments by electronic 27 funds transfer may make payments by electronic funds transfer 28 with the permission of the Department. 29 All taxpayers required to make payment by electronic 30 funds transfer and any taxpayers authorized to voluntarily 31 make payments by electronic funds transfer shall make those 32 payments in the manner authorized by the Department. 33 The Department shall adopt such rules as are necessary to 34 effectuate a program of electronic funds transfer and the SB1028 Enrolled -48- LRB9106061PTpk 1 requirements of this Section. 2 Any amount which is required to be shown or reported on 3 any return or other document under this Act shall, if such 4 amount is not a whole-dollar amount, be increased to the 5 nearest whole-dollar amount in any case where the fractional 6 part of a dollar is 50 cents or more, and decreased to the 7 nearest whole-dollar amount where the fractional part of a 8 dollar is less than 50 cents. 9 If the retailer is otherwise required to file a monthly 10 return and if the retailer's average monthly tax liability to 11 the Department does not exceed $200, the Department may 12 authorize his returns to be filed on a quarter annual basis, 13 with the return for January, February and March of a given 14 year being due by April 20 of such year; with the return for 15 April, May and June of a given year being due by July 20 of 16 such year; with the return for July, August and September of 17 a given year being due by October 20 of such year, and with 18 the return for October, November and December of a given year 19 being due by January 20 of the following year. 20 If the retailer is otherwise required to file a monthly 21 or quarterly return and if the retailer's average monthly tax 22 liability with the Department does not exceed $50, the 23 Department may authorize his returns to be filed on an annual 24 basis, with the return for a given year being due by January 25 20 of the following year. 26 Such quarter annual and annual returns, as to form and 27 substance, shall be subject to the same requirements as 28 monthly returns. 29 Notwithstanding any other provision in this Act 30 concerning the time within which a retailer may file his 31 return, in the case of any retailer who ceases to engage in a 32 kind of business which makes him responsible for filing 33 returns under this Act, such retailer shall file a final 34 return under this Act with the Department not more than one SB1028 Enrolled -49- LRB9106061PTpk 1 month after discontinuing such business. 2 Where the same person has more than one business 3 registered with the Department under separate registrations 4 under this Act, such person may not file each return that is 5 due as a single return covering all such registered 6 businesses, but shall file separate returns for each such 7 registered business. 8 In addition, with respect to motor vehicles, watercraft, 9 aircraft, and trailers that are required to be registered 10 with an agency of this State, every retailer selling this 11 kind of tangible personal property shall file, with the 12 Department, upon a form to be prescribed and supplied by the 13 Department, a separate return for each such item of tangible 14 personal property which the retailer sells, except that 15 where, in the same transaction, a retailer of aircraft, 16 watercraft, motor vehicles or trailers transfers more than 17 one aircraft, watercraft, motor vehicle or trailer to another 18 aircraft, watercraft, motor vehicle retailer or trailer 19 retailer for the purpose of resale, that seller for resale 20 may report the transfer of all aircraft, watercraft, motor 21 vehicles or trailers involved in that transaction to the 22 Department on the same uniform invoice-transaction reporting 23 return form. For purposes of this Section, "watercraft" 24 means a Class 2, Class 3, or Class 4 watercraft as defined in 25 Section 3-2 of the Boat Registration and Safety Act, a 26 personal watercraft, or any boat equipped with an inboard 27 motor. 28 Any retailer who sells only motor vehicles, watercraft, 29 aircraft, or trailers that are required to be registered with 30 an agency of this State, so that all retailers' occupation 31 tax liability is required to be reported, and is reported, on 32 such transaction reporting returns and who is not otherwise 33 required to file monthly or quarterly returns, need not file 34 monthly or quarterly returns. However, those retailers shall SB1028 Enrolled -50- LRB9106061PTpk 1 be required to file returns on an annual basis. 2 The transaction reporting return, in the case of motor 3 vehicles or trailers that are required to be registered with 4 an agency of this State, shall be the same document as the 5 Uniform Invoice referred to in Section 5-402 of The Illinois 6 Vehicle Code and must show the name and address of the 7 seller; the name and address of the purchaser; the amount of 8 the selling price including the amount allowed by the 9 retailer for traded-in property, if any; the amount allowed 10 by the retailer for the traded-in tangible personal property, 11 if any, to the extent to which Section 1 of this Act allows 12 an exemption for the value of traded-in property; the balance 13 payable after deducting such trade-in allowance from the 14 total selling price; the amount of tax due from the retailer 15 with respect to such transaction; the amount of tax collected 16 from the purchaser by the retailer on such transaction (or 17 satisfactory evidence that such tax is not due in that 18 particular instance, if that is claimed to be the fact); the 19 place and date of the sale; a sufficient identification of 20 the property sold; such other information as is required in 21 Section 5-402 of The Illinois Vehicle Code, and such other 22 information as the Department may reasonably require. 23 The transaction reporting return in the case of 24 watercraft or aircraft 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 1 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 SB1028 Enrolled -51- LRB9106061PTpk 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, and such other information as the 5 Department may reasonably require. 6 Such transaction reporting return shall be filed not 7 later than 20 days after the day of delivery of the item that 8 is being sold, but may be filed by the retailer at any time 9 sooner than that if he chooses to do so. The transaction 10 reporting return and tax remittance or proof of exemption 11 from the Illinois use tax may be transmitted to the 12 Department by way of the State agency with which, or State 13 officer with whom the tangible personal property must be 14 titled or registered (if titling or registration is required) 15 if the Department and such agency or State officer determine 16 that this procedure will expedite the processing of 17 applications for title or registration. 18 With each such transaction reporting return, the retailer 19 shall remit the proper amount of tax due (or shall submit 20 satisfactory evidence that the sale is not taxable if that is 21 the case), to the Department or its agents, whereupon the 22 Department shall issue, in the purchaser's name, a use tax 23 receipt (or a certificate of exemption if the Department is 24 satisfied that the particular sale is tax exempt) which such 25 purchaser may submit to the agency with which, or State 26 officer with whom, he must title or register the tangible 27 personal property that is involved (if titling or 28 registration is required) in support of such purchaser's 29 application for an Illinois certificate or other evidence of 30 title or registration to such tangible personal property. 31 No retailer's failure or refusal to remit tax under this 32 Act precludes a user, who has paid the proper tax to the 33 retailer, from obtaining his certificate of title or other 34 evidence of title or registration (if titling or registration SB1028 Enrolled -52- LRB9106061PTpk 1 is required) upon satisfying the Department that such user 2 has paid the proper tax (if tax is due) to the retailer. The 3 Department shall adopt appropriate rules to carry out the 4 mandate of this paragraph. 5 If the user who would otherwise pay tax to the retailer 6 wants the transaction reporting return filed and the payment 7 of the tax or proof of exemption made to the Department 8 before the retailer is willing to take these actions and such 9 user has not paid the tax to the retailer, such user may 10 certify to the fact of such delay by the retailer and may 11 (upon the Department being satisfied of the truth of such 12 certification) transmit the information required by the 13 transaction reporting return and the remittance for tax or 14 proof of exemption directly to the Department and obtain his 15 tax receipt or exemption determination, in which event the 16 transaction reporting return and tax remittance (if a tax 17 payment was required) shall be credited by the Department to 18 the proper retailer's account with the Department, but 19 without the 2.1% or 1.75% discount provided for in this 20 Section being allowed. When the user pays the tax directly 21 to the Department, he shall pay the tax in the same amount 22 and in the same form in which it would be remitted if the tax 23 had been remitted to the Department by the retailer. 24 Refunds made by the seller during the preceding return 25 period to purchasers, on account of tangible personal 26 property returned to the seller, shall be allowed as a 27 deduction under subdivision 5 of his monthly or quarterly 28 return, as the case may be, in case the seller had 29 theretofore included the receipts from the sale of such 30 tangible personal property in a return filed by him and had 31 paid the tax imposed by this Act with respect to such 32 receipts. 33 Where the seller is a corporation, the return filed on 34 behalf of such corporation shall be signed by the president, SB1028 Enrolled -53- LRB9106061PTpk 1 vice-president, secretary or treasurer or by the properly 2 accredited agent of such corporation. 3 Where the seller is a limited liability company, the 4 return filed on behalf of the limited liability company shall 5 be signed by a manager, member, or properly accredited agent 6 of the limited liability company. 7 Except as provided in this Section, the retailer filing 8 the return under this Section shall, at the time of filing 9 such return, pay to the Department the amount of tax imposed 10 by this Act less a discount of 2.1% prior to January 1, 1990 11 and 1.75% on and after January 1, 1990, or $5 per calendar 12 year, whichever is greater, which is allowed to reimburse the 13 retailer for the expenses incurred in keeping records, 14 preparing and filing returns, remitting the tax and supplying 15 data to the Department on request. Any prepayment made 16 pursuant to Section 2d of this Act shall be included in the 17 amount on which such 2.1% or 1.75% discount is computed. In 18 the case of retailers who report and pay the tax on a 19 transaction by transaction basis, as provided in this 20 Section, such discount shall be taken with each such tax 21 remittance instead of when such retailer files his periodic 22 return. 23 If the taxpayer's average monthly tax liability to the 24 Department under this Act, the Use Tax Act, the Service 25 Occupation Tax Act, and the Service Use Tax Act, excluding 26 any liability for prepaid sales tax to be remitted in 27 accordance with Section 2d of this Act, was $10,000 or more 28 during the preceding 4 complete calendar quarters, he shall 29 file a return with the Department each month by the 20th day 30 of the month next following the month during which such tax 31 liability is incurred and shall make payments to the 32 Department on or before the 7th, 15th, 22nd and last day of 33 the month during which such liability is incurred. If the 34 month during which such tax liability is incurred began prior SB1028 Enrolled -54- LRB9106061PTpk 1 to January 1, 1985, each payment shall be in an amount equal 2 to 1/4 of the taxpayer's actual liability for the month or an 3 amount set by the Department not to exceed 1/4 of the average 4 monthly liability of the taxpayer to the Department for the 5 preceding 4 complete calendar quarters (excluding the month 6 of highest liability and the month of lowest liability in 7 such 4 quarter period). If the month during which such tax 8 liability is incurred begins on or after January 1, 1985 and 9 prior to January 1, 1987, each payment shall be in an amount 10 equal to 22.5% of the taxpayer's actual liability for the 11 month or 27.5% of the taxpayer's liability for the same 12 calendar month of the preceding year. If the month during 13 which such tax liability is incurred begins on or after 14 January 1, 1987 and prior to January 1, 1988, each payment 15 shall be in an amount equal to 22.5% of the taxpayer's actual 16 liability for the month or 26.25% of the taxpayer's liability 17 for the same calendar month of the preceding year. If the 18 month during which such tax liability is incurred begins on 19 or after January 1, 1988, and prior to January 1, 1989, or 20 begins on or after January 1, 1996, each payment shall be in 21 an amount equal to 22.5% of the taxpayer's actual liability 22 for the month or 25% 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, 1989, and prior to January 1, 1996, each payment 26 shall be in an amount equal to 22.5% of the taxpayer's actual 27 liability for the month or 25% of the taxpayer's liability 28 for the same calendar month of the preceding year or 100% of 29 the taxpayer's actual liability for the quarter monthly 30 reporting period. The amount of such quarter monthly 31 payments shall be credited against the final tax liability of 32 the taxpayer's return for that month. Once applicable, the 33 requirement of the making of quarter monthly payments to the 34 Department by taxpayers having an average monthly tax SB1028 Enrolled -55- LRB9106061PTpk 1 liability of $10,000 or more as determined in the manner 2 provided above shall continue until such taxpayer's average 3 monthly liability to the Department during the preceding 4 4 complete calendar quarters (excluding the month of highest 5 liability and the month of lowest liability) is less than 6 $9,000, or until such taxpayer's average monthly liability to 7 the Department as computed for each calendar quarter of the 4 8 preceding complete calendar quarter period is less than 9 $10,000. However, if a taxpayer can show the Department that 10 a substantial change in the taxpayer's business has occurred 11 which causes the taxpayer to anticipate that his average 12 monthly tax liability for the reasonably foreseeable future 13 will fall below $10,000, then such taxpayer may petition the 14 Department for a change in such taxpayer's reporting status. 15 The Department shall change such taxpayer's reporting status 16 unless it finds that such change is seasonal in nature and 17 not likely to be long term. If any such quarter monthly 18 payment is not paid at the time or in the amount required by 19 this Section, then the taxpayer shall be liable for penalties 20 and interest on the difference between the minimum amount due 21 as a payment and the amount of such quarter monthly payment 22 actually and timely paid, except insofar as the taxpayer has 23 previously made payments for that month to the Department in 24 excess of the minimum payments previously due as provided in 25 this Section. The Department shall make reasonable rules and 26 regulations to govern the quarter monthly payment amount and 27 quarter monthly payment dates for taxpayers who file on other 28 than a calendar monthly basis. 29 Without regard to whether a taxpayer is required to make 30 quarter monthly payments as specified above, any taxpayer who 31 is required by Section 2d of this Act to collect and remit 32 prepaid taxes and has collected prepaid taxes which average 33 in excess of $25,000 per month during the preceding 2 34 complete calendar quarters, shall file a return with the SB1028 Enrolled -56- LRB9106061PTpk 1 Department as required by Section 2f and shall make payments 2 to the Department on or before the 7th, 15th, 22nd and last 3 day of the month during which such liability is incurred. If 4 the month during which such tax liability is incurred began 5 prior to the effective date of this amendatory Act of 1985, 6 each payment shall be in an amount not less than 22.5% of the 7 taxpayer's actual liability under Section 2d. If the month 8 during which such tax liability is incurred begins on or 9 after January 1, 1986, each payment shall be in an amount 10 equal to 22.5% of the taxpayer's actual liability for the 11 month or 27.5% of the taxpayer's liability for the same 12 calendar month of the preceding calendar year. If the month 13 during which such tax liability is incurred begins on or 14 after January 1, 1987, each payment shall be in an amount 15 equal to 22.5% of the taxpayer's actual liability for the 16 month or 26.25% of the taxpayer's liability for the same 17 calendar month of the preceding year. 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 filed 20 under this Section or Section 2f, as the case may be. Once 21 applicable, the requirement of the making of quarter monthly 22 payments to the Department pursuant to this paragraph shall 23 continue until such taxpayer's average monthly prepaid tax 24 collections during the preceding 2 complete calendar quarters 25 is $25,000 or less. If any such quarter monthly payment is 26 not paid at the time or in the amount required, the taxpayer 27 shall be liable for penalties and interest on such 28 difference, except insofar as the taxpayer has previously 29 made payments for that month in excess of the minimum 30 payments previously due. 31 If any payment provided for in this Section exceeds the 32 taxpayer's liabilities under this Act, the Use Tax Act, the 33 Service Occupation Tax Act and the Service Use Tax Act, as 34 shown on an original monthly return, the Department shall, if SB1028 Enrolled -57- LRB9106061PTpk 1 requested by the taxpayer, issue to the taxpayer a credit 2 memorandum no later than 30 days after the date of payment. 3 The credit evidenced by such credit memorandum may be 4 assigned by the taxpayer to a similar taxpayer under this 5 Act, the Use Tax Act, the Service Occupation Tax Act or the 6 Service Use Tax Act, in accordance with reasonable rules and 7 regulations to be prescribed by the Department. If no such 8 request is made, the taxpayer may credit such excess payment 9 against tax liability subsequently to be remitted to the 10 Department under this Act, the Use Tax Act, the Service 11 Occupation Tax Act or the Service Use Tax Act, in accordance 12 with reasonable rules and regulations prescribed by the 13 Department. If the Department subsequently determined that 14 all or any part of the credit taken was not actually due to 15 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 16 shall be reduced by 2.1% or 1.75% of the difference between 17 the credit taken and that actually due, and that taxpayer 18 shall be liable for penalties and interest on such 19 difference. 20 If a retailer of motor fuel is entitled to a credit under 21 Section 2d of this Act which exceeds the taxpayer's liability 22 to the Department under this Act for the month which the 23 taxpayer is filing a return, the Department shall issue the 24 taxpayer a credit memorandum for the excess. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the Local Government Tax Fund, a special fund 27 in the State treasury which is hereby created, the net 28 revenue realized for the preceding month from the 1% tax on 29 sales of food for human consumption which is to be consumed 30 off the premises where it is sold (other than alcoholic 31 beverages, soft drinks and food which has been prepared for 32 immediate consumption) and prescription and nonprescription 33 medicines, drugs, medical appliances and insulin, urine 34 testing materials, syringes and needles used by diabetics. SB1028 Enrolled -58- LRB9106061PTpk 1 Beginning January 1, 1990, each month the Department 2 shall pay into the County and Mass Transit District Fund, a 3 special fund in the State treasury which is hereby created, 4 4% of the net revenue realized for the preceding month from 5 the 6.25% general rate. 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 pers