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Public Act 100-0022 | ||||
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AN ACT concerning revenue.
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WHEREAS, the changes made by this Act are made under | ||||
subsection (a) of Section 3 of Article IX of the Illinois | ||||
Constitution. If there are future changes made to subsection | ||||
(a) of Section 3 of Article IX of the Illinois Constitution, | ||||
then it may result in evaluating the taxes on income imposed by | ||||
this Act; therefore | ||||
Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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ARTICLE 1. STATE TAX LIEN REGISTRATION ACT | ||||
Section 1-1. Short title. This Act may be cited as the | ||||
State Tax Lien Registration Act. References in this Article to | ||||
"this Act" mean this Article. | ||||
Section 1-5. Purpose. | ||||
(a) The purpose of this Act is to provide a uniform | ||||
statewide system for filing notices of tax liens that are in | ||||
favor of or enforced by the Department. The Department shall | ||||
maintain the system. | ||||
(b) The scope of this Act is limited to tax liens in real | ||||
property and personal property, tangible and intangible, of | ||||
taxpayers or other persons against whom the Department has |
liens pursuant to law for unpaid final tax liabilities | ||
administered by the Department. | ||
(c) Nothing in this Act shall be construed to invalidate | ||
any lien filed by the Department with a county recorder of | ||
deeds prior to the effective date of this Act. | ||
Section 1-10. Definitions. | ||
"Debtor" means a taxpayer or other person against whom | ||
there is an unpaid final tax liability collectible by the | ||
Department. | ||
"Department" means the Department of Revenue. | ||
"Final tax liability" means any State tax, fee, penalty, or | ||
interest owed by a person to the Department where the | ||
assessment of the liability is not subject to any further | ||
timely filed administrative or judicial review. | ||
"Last-known address of the debtor" means the address of the | ||
debtor appearing in the records of the Department at the time | ||
the notice of tax lien is filed in the registry. | ||
"Person" means any natural individual, firm, partnership, | ||
association, joint stock company, joint adventure, public or | ||
private corporation, limited liability company, or a receiver, | ||
executor, trustee, guardian or other representative appointed | ||
by order of any court. | ||
"Registry" or "State Tax Lien Registry" means the public | ||
database maintained by the Department wherein tax liens are | ||
filed in favor of and enforced by the Department. |
Section 1-15. Registry established. | ||
(a) The Department shall establish and maintain a public | ||
database known as the State Tax Lien Registry. If any person | ||
neglects or refuses to pay any final tax liability, the | ||
Department may file in the registry a notice of tax lien within | ||
3 years from the date of the final tax liability. | ||
(b) The notice of tax lien file shall include: | ||
(1) the name and last-known address of the debtor; | ||
(2) the name and address of the Department; | ||
(3) the tax lien number assigned to the lien by the | ||
Department; and | ||
(4) the basis for the tax lien, including, but not | ||
limited to, the amount owed by the debtor as of the date of | ||
filing in the tax lien registry. | ||
Section 1-20. Tax lien perfected. | ||
(a) When a notice of tax lien is filed by the Department in | ||
the registry, the tax lien is perfected and shall be attached | ||
to all of the existing and after-acquired property of the | ||
debtor, both real and personal, tangible and intangible, which | ||
is located in any and all counties within the State of | ||
Illinois. | ||
(b) The amount of the tax lien shall be a debt due the | ||
State of Illinois and shall remain a lien upon all property and | ||
rights to property belonging to the debtor, both real and |
personal, tangible and intangible, which is located in any and | ||
all counties within the State of Illinois. Interest and penalty | ||
shall accrue on the tax lien at the same rate and with the same | ||
restrictions, if any, as specified by statute for the accrual | ||
of interest and penalty for the type of tax or taxes for which | ||
the tax lien was issued. | ||
Section 1-25. Time period of lien. | ||
(a) A notice of tax lien shall be a lien upon the debtor's | ||
property located anywhere in the State for a period of 20 years | ||
from the date of filing unless it is sooner released by the | ||
Department. | ||
(b) A notice of release of tax lien filed in the registry | ||
shall constitute a release of the tax lien within the | ||
Department, the registry, and the county in which the tax lien | ||
was previously filed. The information contained on the registry | ||
shall be controlling, and the registry shall supersede the | ||
records of any county. | ||
Section 1-30. Registry format. | ||
(a) The Department shall maintain notices of tax liens | ||
filed in the registry after the effective date of this Act in | ||
its information management system in a form that permits the | ||
information to be readily accessible in an electronic form | ||
through the Internet and to be reduced to printed form. The | ||
electronic and printed form shall include the following |
information: | ||
(1) the name of the taxpayer; | ||
(2) the name and address of the Department; | ||
(3) the tax lien number assigned to the lien by the | ||
Department; | ||
(4) the amount of the taxes, penalties, interest, and | ||
fees indicated due on the notice of tax lien received from | ||
the Department; and | ||
(5) the date and time of filing. | ||
(b) Information in the registry shall be searchable by name | ||
of debtor or by tax lien number. The Department shall not | ||
charge for access to information in the registry. | ||
(c) The Department is authorized to sell at bulk the | ||
information appearing on the tax lien registry. In selling the | ||
information, the Department shall adopt rules governing the | ||
process by which the information will be sold and the media or | ||
method by which it will be available to the purchaser and shall | ||
set a price for the information that will at least cover the | ||
cost of producing the information. The proceeds from the sale | ||
of bulk information shall be retained by the Department and | ||
used to cover its cost to produce the information sold and to | ||
maintain the registry. | ||
(d) Registry information, whether accessed by name of | ||
debtor or by tax lien number at no charge, through a bulk sale | ||
of information, or by other means, shall not be used for | ||
survey, marketing, or solicitation purposes. Survey, |
marketing, or solicitation purpose does not include any action | ||
by the Department or its authorized agent to collect a debt | ||
represented by a tax lien appearing in the registry. The | ||
Attorney General may bring an action in any court of competent | ||
jurisdiction to enjoin the unlawful use of registry information | ||
for survey, marketing, or solicitation purposes and to recover | ||
the cost of such action, including reasonable attorney's fees. | ||
Section 1-35. Rulemaking. The Department may adopt rules in | ||
accordance with the Illinois Administrative Procedure Act to | ||
enforce the provisions of this Act. | ||
Section 1-40. Conflicts. In the event of conflict between
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this Act and any other law, this Act shall control. | ||
ARTICLE 15. REVISED UNIFORM UNCLAIMED PROPERTY ACT | ||
ARTICLE 1. GENERAL PROVISIONS | ||
Section 15-101. Short title. This Act may be cited as the | ||
Revised Uniform Unclaimed Property Act. References in this | ||
Article 15 (the Revised Uniform Unclaimed Property Act) to | ||
"this Act" mean this Article 15 (the Revised Uniform Unclaimed | ||
Property Act). | ||
Section 15-102. Definitions. In this Act: |
(1) "Administrator" means the State Treasurer. | ||
(2) "Administrator's agent" means a person with which | ||
the administrator contracts to conduct an examination | ||
under Article 10 on behalf of the administrator. The term | ||
includes an independent contractor of the person and each | ||
individual participating in the examination on behalf of | ||
the person or contractor. | ||
(2.5) "Affiliated group of merchants" means 2 or more | ||
affiliated merchants or other persons that are related by | ||
common ownership or common corporate control and that share | ||
the same name, mark, or logo. The term also applies to 2 or | ||
more merchants or other persons that agree among | ||
themselves, by contract or otherwise, to redeem cards, | ||
codes, or other devices bearing the same name, mark, or | ||
logo (other than the mark, logo, or brand of a payment | ||
network), for the purchase of goods or services solely at | ||
such merchants or persons. However, merchants or other | ||
persons are not considered to be affiliated merely because | ||
they agree to accept a card that bears the mark, logo, or | ||
brand of a payment network. | ||
(3) "Apparent owner" means a person whose name appears | ||
on the records of a holder as the owner of property held, | ||
issued, or owing by the holder. | ||
(4) "Business association" means a corporation, joint | ||
stock company, investment company, unincorporated | ||
association, joint venture, limited liability company, |
business trust, trust company, land bank, safe deposit | ||
company, safekeeping depository, financial organization, | ||
insurance company, federally chartered entity, utility, | ||
sole proprietorship, or other business entity, whether or | ||
not for profit. | ||
(5) "Confidential information" means information that | ||
is "personal information" under the Personal Information | ||
Protection Act, "private information" under the Freedom of | ||
Information Act or personal information contained within | ||
public records, the disclosure of which would constitute a | ||
clearly unwarranted invasion of personal privacy, unless | ||
the disclosure is consented to in writing by the individual | ||
subjects of the information as provided in the Freedom of | ||
Information Act. | ||
(6) "Domicile" means: | ||
(A) for a corporation, the state of its | ||
incorporation; | ||
(B) for a business association whose formation | ||
requires a filing with a state, other than a | ||
corporation, the state of its filing; | ||
(C) for a federally chartered entity or an | ||
investment company registered under the Investment | ||
Company Act of 1940, the state of its home office; and | ||
(D) for any other holder, the state of its | ||
principal place of business. | ||
(7) "Electronic" means relating to technology having |
electrical, digital, magnetic, wireless, optical, | ||
electromagnetic, or similar capabilities. | ||
(8) "Electronic mail" means a communication by | ||
electronic means which is automatically retained and | ||
stored and may be readily accessed or retrieved. | ||
(9) "Financial organization" means a bank, savings | ||
bank, corporate fiduciary, currency exchange, money | ||
transmitter, or credit union. | ||
(10) "Game-related digital content" means digital | ||
content that exists only in an electronic game or | ||
electronic-game platform. The term: | ||
(A) includes: | ||
(i) game-play currency such as a virtual | ||
wallet, even if denominated in United States | ||
currency; and | ||
(ii) the following if for use or redemption | ||
only within the game or platform or another | ||
electronic game or electronic-game platform: | ||
(I) points sometimes referred to as gems, | ||
tokens, gold, and similar names; and | ||
(II) digital codes; and | ||
(B) does not include an item that the issuer: | ||
(i) permits to be redeemed for use outside a | ||
game or platform for: | ||
(I) money; or | ||
(II) goods or services that have more than |
minimal value; or | ||
(ii) otherwise monetizes for use outside a | ||
game or platform. | ||
(11) "Gift card" means: | ||
(A) a stored-value card: | ||
(i) issued on a prepaid basis in a specified | ||
amount; | ||
(ii) the value of which does not expire; | ||
(iii) that is not subject to a dormancy, | ||
inactivity, or service fee; | ||
(iv) that may be decreased in value only by | ||
redemption for merchandise, goods, or services | ||
upon presentation at a single merchant or an | ||
affiliated group of merchants; | ||
(v) that, unless required by law, may not be | ||
redeemed for or converted into money or otherwise | ||
monetized by the issuer; and | ||
(B) includes a prepaid commercial mobile radio | ||
service, as defined in 47 C.F.R. 20.3, as amended. | ||
(12) "Holder" means a person obligated to hold for the | ||
account of, or to deliver or pay to, the owner, property | ||
subject to this Act. | ||
(13) "Insurance company" means an association, | ||
corporation, or fraternal or mutual-benefit organization, | ||
whether or not for profit, engaged in the business of | ||
providing life endowments, annuities, or insurance, |
including accident, burial, casualty, credit-life, | ||
contract-performance, dental, disability, fidelity, fire, | ||
health, hospitalization, illness, life, malpractice, | ||
marine, mortgage, surety, wage-protection, and | ||
worker-compensation insurance. | ||
(14) "Loyalty card" means a record given without direct | ||
monetary consideration under an award, reward, benefit, | ||
loyalty, incentive, rebate, or promotional program which | ||
may be used or redeemed only to obtain goods or services or | ||
a discount on goods or services. The term does not include | ||
a record that may be redeemed for money or otherwise | ||
monetized by the issuer. | ||
(15) "Mineral" means gas, oil, coal, oil shale, other | ||
gaseous liquid or solid hydrocarbon, cement material, sand | ||
and gravel, road material, building stone, chemical raw | ||
material, gemstone, fissionable and nonfissionable ores, | ||
colloidal and other clay, steam and other geothermal | ||
resources, and any other substance defined as a mineral by | ||
law of this State other than this Act. | ||
(16) "Mineral proceeds" means an amount payable for | ||
extraction, production, or sale of minerals, or, on the | ||
abandonment of the amount, an amount that becomes payable | ||
after abandonment. The term includes an amount payable: | ||
(A) for the acquisition and retention of a mineral | ||
lease, including a bonus, royalty, compensatory | ||
royalty, shut-in royalty, minimum royalty, and delay |
rental; | ||
(B) for the extraction, production, or sale of | ||
minerals, including a net revenue interest, royalty, | ||
overriding royalty, extraction payment, and production | ||
payment; and | ||
(C) under an agreement or option, including a | ||
joint-operating agreement, unit agreement, pooling | ||
agreement, and farm-out agreement. | ||
(17) "Money order" means a payment order for a | ||
specified amount of money. The term includes an express | ||
money order and a personal money order on which the | ||
remitter is the purchaser. | ||
(18) "Municipal bond" means a bond or evidence of | ||
indebtedness issued by a municipality or other political | ||
subdivision of a state. | ||
(19) "Net card value" means the original purchase price | ||
or original issued value of a stored-value card, plus | ||
amounts added to the original price or value, minus amounts | ||
used and any service charge, fee, or dormancy charge | ||
permitted by law. | ||
(20) "Non-freely transferable security" means a | ||
security that cannot be delivered to the administrator by | ||
the Depository Trust Clearing Corporation or similar | ||
custodian of securities providing post-trade clearing and | ||
settlement services to financial markets or cannot be | ||
delivered because there is no agent to effect transfer. The |
term includes a worthless security. | ||
(21) "Owner" means a person that has a legal, | ||
beneficial, or equitable interest in property subject to | ||
this Act or the person's legal representative when acting | ||
on behalf of the owner. The term includes: | ||
(A) a depositor, for a deposit; | ||
(B) a beneficiary, for a trust other than a deposit | ||
in trust; | ||
(C) a creditor, claimant, or payee, for other | ||
property; and | ||
(D) the lawful bearer of a record that may be used | ||
to obtain money, a reward, or a thing of value. | ||
(22) "Payroll card" means a record that evidences a | ||
payroll-card account as defined in Regulation E, 12 CFR | ||
Part 1005, as amended. | ||
(23) "Person" means an individual, estate, business | ||
association, public corporation, government or | ||
governmental subdivision, agency, or instrumentality, or | ||
other legal entity whether or not for profit. | ||
(24) "Property" means tangible property described in | ||
Section 15-201 or a fixed and certain interest in | ||
intangible property held, issued, or owed in the course of | ||
a holder's business or by a government, governmental | ||
subdivision, agency, or instrumentality. The term: | ||
(A) includes all income from or increments to the | ||
property; |
(B) includes property referred to as or evidenced | ||
by: | ||
(i) money, virtual currency, interest, or a | ||
dividend, check, draft, deposit, or payroll card; | ||
(ii) a credit balance, customer's overpayment, | ||
stored-value card, security deposit, refund, | ||
credit memorandum, unpaid wage, unused ticket for | ||
which the issuer has an obligation to provide a | ||
refund, mineral proceeds, or unidentified | ||
remittance; | ||
(iii) a security except for: | ||
(I) a worthless security; or | ||
(II) a security that is subject to a lien, | ||
legal hold, or restriction evidenced on the | ||
records of the holder or imposed by operation | ||
of law, if the lien, legal hold, or restriction | ||
restricts the holder's or owner's ability to | ||
receive, transfer, sell, or otherwise | ||
negotiate the security; | ||
(iv) a bond, debenture, note, or other | ||
evidence of indebtedness; | ||
(v) money deposited to redeem a security, make | ||
a distribution, or pay a dividend; | ||
(vi) an amount due and payable under an annuity | ||
contract or insurance policy; and | ||
(vii) an amount distributable from a trust or |
custodial fund established under a plan to provide | ||
health, welfare, pension, vacation, severance, | ||
retirement, death, stock purchase, profit-sharing, | ||
employee-savings, supplemental-unemployment | ||
insurance, or a similar benefit; and | ||
(C) does not include: | ||
(i) game-related digital content; | ||
(ii) a loyalty card; or | ||
(iii) a gift card. | ||
(25) "Putative holder" means a person believed by the | ||
administrator to be a holder, until the person pays or | ||
delivers to the administrator property subject to this Act | ||
or the administrator or a court makes a final determination | ||
that the person is or is not a holder. | ||
(26) "Record" means information that is inscribed on a | ||
tangible medium or that is stored in an electronic or other | ||
medium and is retrievable in perceivable form. The phrase | ||
"records of the holder" includes records maintained by a | ||
third party that has contracted with the holder. | ||
(27) "Security" means: | ||
(A) a security as defined in Article 8 of the | ||
Uniform Commercial Code; | ||
(B) a security entitlement as defined in Article 8 | ||
of the Uniform Commercial Code, including a customer | ||
security account held by a registered broker-dealer, | ||
to the extent the financial assets held in the security |
account are not: | ||
(i) registered on the books of the issuer in | ||
the name of the person for which the broker-dealer | ||
holds the assets; | ||
(ii) payable to the order of the person; or | ||
(iii) specifically indorsed to the person; or | ||
(C) an equity interest in a business association | ||
not included in subparagraph (A) or (B). | ||
(28) "Sign" means, with present intent to authenticate | ||
or adopt a record: | ||
(A) to execute or adopt a tangible symbol; or | ||
(B) to attach to or logically associate with the | ||
record an electronic symbol, sound, or process. | ||
(29) "State" means a state of the United States, the | ||
District of Columbia, the Commonwealth of Puerto Rico, the | ||
United States Virgin Islands, or any territory or insular | ||
possession subject to the jurisdiction of the United | ||
States. | ||
(30) "Stored-value card" means a record evidencing a | ||
promise made for consideration by the seller or issuer of | ||
the record that goods, services, or money will be provided | ||
to the owner of the record to the value or amount shown in | ||
the record. The term: | ||
(A) includes: | ||
(i) a record that contains or consists of a | ||
microprocessor chip, magnetic strip, or other |
means for the storage of information, which is | ||
prefunded and whose value or amount is decreased on | ||
each use and increased by payment of additional | ||
consideration; and | ||
(ii) a gift card and payroll card; and | ||
(B) does not include a loyalty card or game-related | ||
digital content. | ||
(31) "Utility" means a person that owns or operates for | ||
public use a plant, equipment, real property, franchise, or | ||
license for the following public services: | ||
(A) transmission of communications or information; | ||
(B) production, storage, transmission, sale, | ||
delivery, or furnishing of electricity, water, steam, | ||
or gas; or | ||
(C) provision of sewage or septic services, or | ||
trash, garbage, or recycling disposal. | ||
(32) "Virtual currency" means a digital representation | ||
of value used as a medium of exchange, unit of account, or | ||
store of value, which does not have legal tender status | ||
recognized by the United States. The term does not include: | ||
(A) the software or protocols governing the | ||
transfer of the digital representation of value; | ||
(B) game-related digital content; or | ||
(C) a loyalty card or gift card. | ||
(33) "Worthless security" means a security whose cost | ||
of liquidation and delivery to the administrator would |
exceed the value of the security on the date a report is | ||
due under this Act. | ||
Section 15-103. Inapplicability to foreign transaction. | ||
This Act does not apply to property held, due, and owing in a | ||
foreign country if the transaction out of which the property | ||
arose was a foreign transaction. | ||
Section 15-104. Rulemaking. The administrator may adopt | ||
rules to implement and administer this Act pursuant to the | ||
Illinois Administrative Procedure Act. | ||
ARTICLE 2. PRESUMPTION OF ABANDONMENT | ||
Section 15-201. When property presumed abandoned. Subject | ||
to Section 15-210, the following property is presumed abandoned | ||
if it is unclaimed by the apparent owner during the period | ||
specified below: | ||
(1) a traveler's check, 15 years after issuance; | ||
(2) a money order, 7 years after issuance; | ||
(3) (Blank). | ||
(4) a state or municipal bond, bearer bond, or | ||
original-issue-discount bond, 3 years after the earliest | ||
of the date the bond matures or is called or the obligation | ||
to pay the principal of the bond arises; | ||
(5) a debt of a business association, 3 years after the |
obligation to pay arises; | ||
(6) a demand, savings, or time deposit, 3 years after | ||
the later of maturity or the date of the last indication of | ||
interest in the property by the apparent owner, except for | ||
a deposit that is automatically renewable, 3 years after | ||
its initial date of maturity unless the apparent owner | ||
consented in a record on file with the holder to renewal at | ||
or about the time of the renewal; | ||
(7) money or a credit owed to a customer as a result of | ||
a retail business transaction, other than in-store credit | ||
for returned merchandise, other than a stored-value card, 3 | ||
years after the obligation arose; | ||
(8) an amount owed by an insurance company on a life or | ||
endowment insurance policy or an annuity contract that has | ||
matured or terminated, 3 years after the obligation to pay | ||
arose under the terms of the policy or contract or, if a | ||
policy or contract for which an amount is owed on proof of | ||
death has not matured by proof of the death of the insured | ||
or annuitant, as follows: | ||
(A) with respect to an amount owed on a life or | ||
endowment insurance policy, the earlier of: | ||
(i) 3 years after the death of the insured; or | ||
(ii) 2 years after the insured has attained, or | ||
would have attained if living, the limiting age | ||
under the mortality table on which the reserve for | ||
the policy is based; and |
(B) with respect to an amount owed on an annuity | ||
contract, 3 years after the death of the annuitant. | ||
(9) funds on deposit or held in trust for the | ||
prepayment of a funeral or other funeral-related expenses, | ||
the earliest of: | ||
(A) 2 years after the date of death of the | ||
beneficiary; | ||
(B) one year after the date the beneficiary has | ||
attained, or would have attained if living, the age of | ||
105 where the holder does not know whether the | ||
beneficiary is deceased; | ||
(C) 30 years after the contract for prepayment was | ||
executed; | ||
(10) property distributable by a business association | ||
in the course of dissolution or distributions from the | ||
termination of a retirement plan, one year after the | ||
property becomes distributable; | ||
(11) property held by a court, including property | ||
received as proceeds of a class action, 3 years after the | ||
property becomes distributable; | ||
(12) property held by a government or governmental | ||
subdivision, agency, or instrumentality, including | ||
municipal bond interest and unredeemed principal under the | ||
administration of a paying agent or indenture trustee, 3 | ||
years after the property becomes distributable; | ||
(13) wages, commissions, bonuses, or reimbursements to |
which an employee is entitled, or other compensation for | ||
personal services, including amounts held on a payroll | ||
card, one year after the amount becomes payable; | ||
(14) a deposit or refund owed to a subscriber by a | ||
utility, one year after the deposit or refund becomes | ||
payable, except that any capital credits or patronage | ||
capital retired, returned, refunded or tendered to a member | ||
of an electric cooperative, as defined in Section 3.4 of | ||
the Electric Supplier Act, or a telephone or | ||
telecommunications cooperative, as defined in Section | ||
13-212 of the Public Utilities Act, that has remained | ||
unclaimed by the person appearing on the records of the | ||
entitled cooperative for more than 2 years, shall not be | ||
subject to, or governed by, any other provisions of this | ||
Act, but rather shall be used by the cooperative for the | ||
benefit of the general membership of the cooperative; and | ||
(15) property not specified in this Section or Sections | ||
15-202 through 15-208, the earlier of 3 years after the | ||
owner first has a right to demand the property or the | ||
obligation to pay or distribute the property arises. | ||
Notwithstanding anything to the contrary in this Section | ||
15-201, and subject to Section 15-210, a deceased owner cannot | ||
indicate interest in his or her property. If the owner is | ||
deceased and the abandonment period for the owner's property | ||
specified in this Section 15-201 is greater than 2 years, then | ||
the property, other than an amount owed by an insurance company |
on a life or endowment insurance policy or an annuity contract | ||
that has matured or terminated, shall instead be presumed | ||
abandoned 2 years from the date of the owner's last indication | ||
of interest in the property. | ||
Section 15-202. When tax-deferred retirement account | ||
presumed abandoned. | ||
(a) Subject to Section 15-210, property held in a pension | ||
account or retirement account that qualifies for tax deferral | ||
under the income-tax laws of the United States is presumed | ||
abandoned if it is unclaimed by the apparent owner after the | ||
later of: | ||
(1) 3 years after the following dates: | ||
(A) except as in subparagraph (B), the date a | ||
communication sent by the holder by first-class United | ||
States mail to the apparent owner is returned to the | ||
holder undelivered by the United States Postal | ||
Service; or | ||
(B) if such communication is re-sent within 30 days | ||
after the date the first communication is returned | ||
undelivered, the date the second communication was | ||
returned undelivered by the United States Postal | ||
Service; or | ||
(2) the earlier of the following dates: | ||
(A) 3 years after the date the apparent owner | ||
becomes 70.5 years of age, if determinable by the |
holder; or | ||
(B) one year after the date of mandatory | ||
distribution following death if the Internal Revenue | ||
Code requires distribution to avoid a tax penalty and | ||
the holder: | ||
(i) receives confirmation of the death of the | ||
apparent owner in the ordinary course of its | ||
business; or | ||
(ii) confirms the death of the apparent owner | ||
under subsection (b). | ||
(b) If a holder in the ordinary course of its business | ||
receives notice or an indication of the death of an apparent | ||
owner and subsection (a)(2) applies, the holder shall attempt | ||
not later than 90 days after receipt of the notice or | ||
indication to confirm whether the apparent owner is deceased. | ||
(c) If the holder does not send communications to the | ||
apparent owner of an account described in subsection (a) by | ||
first-class United States mail on at least an annual basis, the | ||
holder shall attempt to confirm the apparent owner's interest | ||
in the property by sending the apparent owner an | ||
electronic-mail communication not later than 2 years after the | ||
apparent owner's last indication of interest in the property. | ||
However, the holder promptly shall attempt to contact the | ||
apparent owner by first-class United States mail if: | ||
(1) the holder does not have information needed to send | ||
the apparent owner an electronic mail communication or the |
holder believes that the apparent owner's electronic mail | ||
address in the holder's records is not valid; | ||
(2) the holder receives notification that the | ||
electronic-mail communication was not received; or | ||
(3) the apparent owner does not respond to the | ||
electronic-mail communication within 30 days after the | ||
communication was sent. | ||
(d) If first-class United States mail sent under subsection | ||
(c) is returned to the holder undelivered by the United States | ||
Postal Service, the property is presumed abandoned 3 years | ||
after the later of: | ||
(1) except as in paragraph (2), the date a | ||
communication to contact the apparent owner sent by | ||
first-class United States mail is returned to the holder | ||
undelivered; | ||
(2) if such communication is re-sent within 30 days | ||
after the date the first communication is returned | ||
undelivered, the date the second communication was | ||
returned undelivered; or | ||
(3) the date established by subsection (a)(2). | ||
Section 15-203. When other tax-deferred account presumed | ||
abandoned. | ||
(a) Subject to Section 15-210 and except for property | ||
described in Section 15-202, property held in an account or | ||
plan, including a health savings account, that qualifies for |
tax deferral under the income-tax laws of the United States is | ||
presumed abandoned if it is unclaimed by the apparent owner 3 | ||
years after the earlier of: | ||
(1) the date, if determinable by the holder, specified | ||
in the income-tax laws and regulations of the United States | ||
by which distribution of the property must begin to avoid a | ||
tax penalty, with no distribution having been made; or | ||
(2) 30 years after the date the account was opened. | ||
(b) If the owner is deceased, then property subject to this | ||
Section is presumed abandoned 2 years from the earliest of: | ||
(1) the date of the distribution or attempted | ||
distribution of the property; | ||
(2) the date of the required distribution as stated in | ||
the plan or trust agreement governing the plan; or | ||
(3) the date, if determinable by the holder, specified | ||
in the income tax laws of the United States by which | ||
distribution of the property must begin in order to avoid a | ||
tax penalty. | ||
Section 15-204. When custodial account for minor presumed | ||
abandoned. | ||
(a) Subject to Section 15-210, property held in an account | ||
established under a state's Uniform Gifts to Minors Act or | ||
Uniform Transfers to Minors Act is presumed abandoned if it is | ||
unclaimed by or on behalf of the minor on whose behalf the | ||
account was opened 3 years after the later of: |
(1) except as in subparagraph (2), the date a | ||
communication sent by the holder by first-class United | ||
States mail to the custodian of the minor on whose behalf | ||
the account was opened is returned undelivered to the | ||
holder by the United States Postal Service; | ||
(2) if a communication is re-sent within 30 days after | ||
the date the first communication is returned undelivered, | ||
the date the second communication was returned | ||
undelivered; or | ||
(3) the date on which the custodian is required to | ||
transfer the property to the minor or the minor's estate in | ||
accordance with the Uniform Gifts to Minors Act or Uniform | ||
Transfers to Minors Act of the state in which the account | ||
was opened. | ||
(b) If the holder does not send communications to the | ||
custodian of the minor on whose behalf an account described in | ||
subsection (a) was opened by first-class United States mail on | ||
at least an annual basis, the holder shall attempt to confirm | ||
the custodian's interest in the property by sending the | ||
custodian an electronic-mail communication not later than 2 | ||
years after the custodian's last indication of interest in the | ||
property. However, the holder promptly shall attempt to contact | ||
the custodian by first-class United States mail if: | ||
(1) the holder does not have information needed to send | ||
the custodian an electronic mail communication or the | ||
holder believes that the custodian's electronic-mail |
address in the holder's records is not valid; | ||
(2) the holder receives notification that the | ||
electronic-mail communication was not received; or | ||
(3) the custodian does not respond to the | ||
electronic-mail communication within 30 days after the | ||
communication was sent. | ||
(c) If first-class United States mail sent under subsection | ||
(b) is returned undelivered to the holder by the United States | ||
Postal Service, the property is presumed abandoned 3 years | ||
after the later of: | ||
(1) the date a communication to contact the custodian | ||
by first-class United States mail is returned to the holder | ||
undelivered by the United States Postal Service; or | ||
(2) the date established by subsection (a)(3). | ||
(d) Notwithstanding any other provision of this Act, money | ||
of a minor deposited pursuant to Section 24-21 of the Probate | ||
Act of 1975 shall not be presumed abandoned earlier than 3 | ||
years after the minor attains legal age. Such money shall be | ||
deposited into an account which shall indicate the date of | ||
birth of the minor. | ||
(e) (Blank). | ||
(f) When the property in the account described in | ||
subsections (a) or (d) is transferred to the minor on whose | ||
behalf an account was opened or to the minor's estate, the | ||
property in the account is no longer subject to this Section. |
Section 15-205. When contents of safe-deposit box presumed | ||
abandoned. Tangible property held in a safe-deposit box are | ||
presumed abandoned if the property remains unclaimed by the | ||
apparent owner 5 years after the expiration of the lease or | ||
rental period for the box. | ||
Section 15-206. When stored-value card presumed abandoned. | ||
(a) Subject to Section 15-210, the net card value of a | ||
stored-value card, other than a payroll card or a gift card, is | ||
presumed abandoned on the latest of 5 years after: | ||
(1) December 31 of the year in which the card is issued | ||
or additional funds are deposited into it; | ||
(2) the most recent indication of interest in the card | ||
by the apparent owner; or | ||
(3) a verification or review of the balance by or on | ||
behalf of the apparent owner. | ||
(b) The amount presumed abandoned in a stored-value card is | ||
the net card value at the time it is presumed abandoned. | ||
(c) However, if a holder has reported and remitted to the | ||
administrator the net card value on a stored-value card | ||
presumed abandoned under this Section and the stored-value card | ||
does not have an expiration date, then the holder must honor | ||
the card on presentation indefinitely and may then request | ||
reimbursement from the administrator under Section 605. | ||
Section 15-208. When security presumed abandoned. |
(a) Subject to Section 15-210, a security is presumed | ||
abandoned upon the earlier of the following: | ||
(1) 3 years after the date a communication sent by the | ||
holder by first-class United States mail to the apparent | ||
owner is returned to the holder undelivered by the United | ||
States Postal Service; however, if such returned | ||
communication is re-sent within one month to the apparent | ||
owner, the 3-year period does not begin to run until the | ||
day the resent item is returned as undeliverable; or | ||
(2) 5 years after the date of the apparent owner's last | ||
indication of interest in the security. | ||
(b) If the holder does not send communications to the | ||
apparent owner of a security by first-class United States mail | ||
on at least an annual basis, the holder shall attempt to | ||
confirm the apparent owner's interest in the security by | ||
sending the apparent owner an electronic-mail communication | ||
not later than 3 years after the apparent owner's last | ||
indication of interest in the security. However, the holder | ||
promptly shall attempt to contact the apparent owner by | ||
first-class United States mail if: | ||
(1) the holder does not have information needed to send | ||
the apparent owner an electronic-mail communication or the | ||
holder believes that the apparent owner's electronic-mail | ||
address in the holder's records is not valid; | ||
(2) the holder receives notification that the | ||
electronic-mail communication was not received; or |
(3) the apparent owner does not respond to the | ||
electronic-mail communication within 30 days after the | ||
communication was sent. | ||
(c) If first-class United States mail sent under subsection | ||
(b) is returned to the holder undelivered by the United States | ||
Postal Service, the security is presumed abandoned in | ||
accordance with subsection (a)(2) above. | ||
(d) If a holder in the ordinary course of its business | ||
receives notice or an indication of the death of an apparent | ||
owner, the holder shall attempt not later than 90 days after | ||
receipt of the notice or indication to confirm whether the | ||
apparent owner is deceased. Notwithstanding the standards set | ||
forth in paragraphs (a), (b) and (c), if the holder either | ||
receives confirmation of the death of the apparent owner in the | ||
ordinary course of its business or confirms the death of the | ||
apparent owner under this subsection (d), then, the property | ||
shall be presumed abandoned 2 years after the date of death of | ||
the owner. | ||
Section 15-209. When related property presumed abandoned. | ||
At and after the time property is presumed abandoned under this | ||
Act, any other property right or interest accrued or accruing | ||
from the property and not previously presumed abandoned is also | ||
presumed abandoned. | ||
Section 15-210. Indication of apparent owner interest in |
property. | ||
(a) The period after which property is presumed abandoned | ||
is measured from the later of: | ||
(1) the date the property is presumed abandoned under | ||
this Article; or | ||
(2) the latest indication of interest by the apparent | ||
owner in the property. | ||
(b) Under this Act, an indication of an apparent owner's | ||
interest in property includes: | ||
(1) a record communicated by the apparent owner to the | ||
holder or agent of the holder concerning the property or | ||
the account in which the property is held; | ||
(2) an oral communication by the apparent owner to the | ||
holder or agent of the holder concerning the property or | ||
the account in which the property is held, if the holder or | ||
its agent contemporaneously makes and preserves a record of | ||
the fact of the apparent owner's communication; | ||
(3) presentment of a check or other instrument of | ||
payment of a dividend, interest payment, or other | ||
distribution, or evidence of receipt of a distribution made | ||
by electronic or similar means, with respect to an account, | ||
underlying security, or interest in a business | ||
association; | ||
(4) activity directed by an apparent owner in the | ||
account in which the property is held, including accessing | ||
the account or information concerning the account, or a |
direction by the apparent owner to increase, decrease, or | ||
otherwise change the amount or type of property held in the | ||
account; | ||
(5) a deposit into or withdrawal from an account at a | ||
financial organization, except for a recurring Automated | ||
Clearing House (ACH) debit or credit previously authorized | ||
by the apparent owner or an automatic reinvestment of | ||
dividends or interest; and | ||
(6) subject to subsection (e), payment of a premium on | ||
an insurance policy. | ||
(c) An action by an agent or other representative of an | ||
apparent owner, other than the holder acting as the apparent | ||
owner's agent, is presumed to be an action on behalf of the | ||
apparent owner. | ||
(d) A communication with an apparent owner by a person | ||
other than the holder or the holder's representative is not an | ||
indication of interest in the property by the apparent owner | ||
unless a record of the communication evidences the apparent | ||
owner's knowledge of a right to the property. | ||
(e) If the insured dies or the insured or beneficiary of an | ||
insurance policy otherwise becomes entitled to the proceeds | ||
before depletion of the cash surrender value of the policy by | ||
operation of an automatic-premium-loan provision or other | ||
nonforfeiture provision contained in the policy, the operation | ||
does not prevent the policy from maturing or terminating. | ||
(f) If the apparent owner has another property with the |
holder to which Section 201(6) applies, then activity directed | ||
by an apparent owner in any other accounts, including loan | ||
accounts, at a financial organization holding an inactive | ||
account of the apparent owner shall be an indication of | ||
interest in all such accounts if:
| ||
(A) the apparent owner engages in one or more of | ||
the following activities:
| ||
(i) the apparent owner undertakes one or more | ||
of the actions described in subsection (b) of this | ||
Section regarding any account that appears on a | ||
consolidated statement with the inactive account;
| ||
(ii) the apparent owner increases or decreases | ||
the amount of funds in any other account the | ||
apparent owner has with the financial | ||
organization; or
| ||
(iii) the apparent owner engages in any other | ||
relationship with the financial organization, | ||
including payment of any amounts due on a loan; and
| ||
(B) the foregoing apply so long as the mailing | ||
address for the apparent owner in the financial | ||
organization's books and records is the same for both | ||
the inactive account and the active account.
| ||
Section 15-211. Knowledge of death of insured or annuitant. | ||
(a) In this Section, "death master file" means the United | ||
States Social Security Administration Death Master File or |
other database or service that is at least as comprehensive as | ||
the United States Social Security Administration Death Master | ||
File for determining that an individual reportedly has died. | ||
(b) With respect to a life or endowment insurance policy or | ||
annuity contract for which an amount is owed on proof of death, | ||
but which has not matured by proof of death of the insured or | ||
annuitant, the company has knowledge of the death of an insured | ||
or annuitant when: | ||
(1) the company receives a death certificate or court | ||
order determining that the insured or annuitant has died; | ||
(2) the company: | ||
(A) receives notice of the death of the insured or | ||
annuitant from the administrator or an unclaimed | ||
property administrator of another state, a | ||
beneficiary, a policy owner, a relative of the insured, | ||
a representative under the Probate Act of 1975, or from | ||
an executor or other legal representative of the | ||
insured's or annuitant's estate; and | ||
(B) validates the death of the insured or | ||
annuitant; | ||
(3) the company conducts a comparison for any purpose | ||
between a death master file and the names of some or all of | ||
the company's insureds or annuitants, finds a match that | ||
provides notice that the insured or annuitant has died; or | ||
(4) the administrator or the administrator's agent | ||
conducts a comparison for the purpose of finding matches |
during an examination conducted under Article 10 between a | ||
death master file and the names of some or all of the | ||
company's insureds or annuitants, finds a match that | ||
provides notice that the insured or annuitant has died. | ||
(c) The following rules apply under this Section: | ||
(1) A death-master-file match under subsection (b)(3) | ||
or (4) occurs if the criteria for an exact or partial match | ||
are satisfied as provided by either: | ||
(A) the Unclaimed Life Insurance Benefits Act or | ||
other law of this State other than this Act; or | ||
(B) a rule or policy adopted by the Director of the | ||
Department of Insurance. | ||
(2) The death-master-file match does not constitute | ||
proof of death for the purpose of submission to an | ||
insurance company of a claim by a beneficiary, annuitant, | ||
or owner of the policy or contract for an amount due under | ||
an insurance policy or annuity contract. | ||
(3) The death-master-file match or validation of the | ||
insured's or annuitant's death does not alter the | ||
requirements for a beneficiary, annuitant, or owner of the | ||
policy or contract to make a claim to receive proceeds | ||
under the terms of the policy or contract. | ||
(4) An insured or an annuitant is presumed dead if the | ||
date of his or her death is indicated by the | ||
death-master-file match under either subsection (b)(3) or | ||
(b)(4), unless the insurer has competent and substantial |
evidence that the person is living, including, but not | ||
limited to, a contact made by the insurer with the person | ||
or his or her legal representative. | ||
(d) This Act does not affect the determination of the | ||
extent to which an insurance company before the effective date | ||
of this Act had knowledge of the death of an insured or | ||
annuitant or was required to conduct a death-master-file | ||
comparison to determine whether amounts owed by the company on | ||
a life or endowment insurance policy or annuity contract were | ||
presumed abandoned or unclaimed. | ||
Section 15-212. Deposit account for proceeds of insurance | ||
policy or annuity contract. If proceeds payable under a life or | ||
endowment insurance policy or annuity contract are deposited | ||
into an account with check or draft-writing privileges for the | ||
beneficiary of the policy or contract and, under a | ||
supplementary contract not involving annuity benefits other | ||
than death benefits, the proceeds are retained by the insurance | ||
company or the financial organization where the account is | ||
held, the policy or contract includes the assets in the | ||
account. | ||
Section 15-213. United States savings bonds. | ||
(a) As used in this Section, "United States savings bond" | ||
means property, tangible or intangible, in the form of a | ||
savings bond issued by the United States Treasury, whether in |
paper, electronic, or paperless form, along with all proceeds | ||
thereof in the possession of the administrator. | ||
(b) Notwithstanding any provision of this Act to the | ||
contrary, a United States savings bond subject to this Section | ||
or held or owing in this State by any person is presumed | ||
abandoned when such bond has remained unclaimed and unredeemed | ||
for 5 years after its date of final extended maturity. | ||
(c) United States savings bonds that are presumed abandoned | ||
and unclaimed under subsection (b) shall escheat to the State | ||
of Illinois and all property rights and legal title to and | ||
ownership of the United States savings bonds, or proceeds from | ||
the bonds, including all rights, powers, and privileges of | ||
survivorship of any owner, co-owner, or beneficiary, shall vest | ||
solely in the State according to the procedure set forth in | ||
subsections (d) through (f). | ||
(d) Within 180 days after a United States savings bond has | ||
been presumed abandoned, in the absence of a claim having been | ||
filed with the administrator for the savings bond, the | ||
administrator shall commence a civil action in the Circuit | ||
Court of Sangamon County for a determination that the United | ||
States savings bonds has escheated to the State. The | ||
administrator may postpone the bringing of the action until | ||
sufficient United States savings bonds have accumulated in the | ||
administrator's custody to justify the expense of the | ||
proceedings. | ||
(e) The administrator shall make service by publication in |
the civil action in accordance with Sections 2-206 and 2-207 of | ||
the Code of Civil Procedure, which shall include the filing | ||
with the Circuit Court of Sangamon County of the affidavit | ||
required in Section 2-206 of that Code by an employee of the | ||
administrator with personal knowledge of the efforts made to | ||
contact the owners of United States savings bonds presumed | ||
abandoned under this Section. In addition to the diligent | ||
inquiries made pursuant to Section 2-206 of the Code of Civil | ||
Procedure, the administrator may also utilize additional | ||
discretionary means to attempt to provide notice to persons who | ||
may own a United States savings bond registered to a person | ||
with a last known address in the State of Illinois subject to a | ||
civil action pursuant to subsection (d). | ||
(f) The owner of a United States savings bond registered to | ||
a person with a last known address in the State of Illinois | ||
subject to a civil action pursuant to subsection (d) may file a | ||
claim for such United States savings bond with either the | ||
administrator or by filing a claim in the civil action in the | ||
Circuit Court of Sangamon County in which the savings bond | ||
registered to that person is at issue prior to the entry of a | ||
final judgment by the Circuit Court pursuant to this | ||
subsection, and unless the Circuit Court determines that such | ||
United States savings bond is not owned by the claimant, then | ||
such United States savings bond shall no longer be presumed | ||
abandoned. If no person files a claim or appears at the hearing | ||
to substantiate a disputed claim or if the court determines |
that a claimant is not entitled to the property claimed by the | ||
claimant, then the court, if satisfied by evidence that the | ||
administrator has substantially complied with the laws of this | ||
State, shall enter a judgment that the United States savings | ||
bonds have escheated to this State, and all property rights and | ||
legal title to and ownership of such United States savings | ||
bonds or proceeds from such bonds, including all rights, | ||
powers, and privileges of survivorship of any owner, co-owner, | ||
or beneficiary, shall vest in this State. | ||
(g) The administrator shall redeem from the Bureau of the | ||
Fiscal Service of the United States Treasury the United States | ||
savings bonds escheated to the State and deposit the proceeds | ||
from the redemption of United States savings bonds into the | ||
Unclaimed Property Trust Fund. | ||
(h) Any person making a claim for the United States savings | ||
bonds escheated to the State under this subsection, or for the | ||
proceeds from such bonds, may file a claim with the | ||
administrator. Upon providing sufficient proof of the validity | ||
of such person's claim, the administrator may, in his or her | ||
sole discretion, pay such claim. If payment has been made to | ||
any claimant, no action thereafter may be maintained by any | ||
other claimant against the State or any officer thereof for or | ||
on account of such funds. | ||
ARTICLE 3. RULES FOR TAKING CUSTODY OF PROPERTY PRESUMED | ||
ABANDONED |
Section 15-301. Address of apparent owner to establish | ||
priority. In this Article, the following rules apply: | ||
(1) The last-known address of an apparent owner is any | ||
description, code, or other indication of the location of | ||
the apparent owner which identifies the state, even if the | ||
description, code, or indication of location is not | ||
sufficient to direct the delivery of first-class United | ||
States mail to the apparent owner. | ||
(2) If the United States postal zip code associated | ||
with the apparent owner is for a post office located in | ||
this State, this State is deemed to be the state of the | ||
last-known address of the apparent owner unless other | ||
records associated with the apparent owner specifically | ||
identify the physical address of the apparent owner to be | ||
in another state. | ||
(3) If the address under paragraph (2) is in another | ||
state, the other state is deemed to be the state of the | ||
last-known address of the apparent owner. | ||
(4) The address of the apparent owner of a life or | ||
endowment insurance policy or annuity contract or its | ||
proceeds is presumed to be the address of the insured or | ||
annuitant if a person other than the insured or annuitant | ||
is entitled to the amount owed under the policy or contract | ||
and the address of the other person is not known by the | ||
insurance company and cannot be determined under Section |
15-302. The address of the apparent owner of other property | ||
where ownership vests in a beneficiary upon the death of | ||
the owner is presumed to be the address of the now-deceased | ||
owner if the address of the beneficiary is not known by the | ||
holder and cannot be determined under Section 15-302. | ||
Section 15-302. Address of apparent owner in this State. | ||
The administrator may take custody of property that is presumed | ||
abandoned, whether located in this State, another state, or a | ||
foreign country if: | ||
(1) the last-known address of the apparent owner in the | ||
records of the holder is in this State; or | ||
(2) the records of the holder do not reflect the | ||
identity or last-known address of the apparent owner, but | ||
the administrator has determined that the last-known | ||
address of the apparent owner is in this State. | ||
Section 15-303. If records show multiple addresses of | ||
apparent owner. | ||
(a) Except as in subsection (b), if records of a holder | ||
reflect multiple addresses for an apparent owner and this State | ||
is the state of the most recently recorded address, this State | ||
may take custody of property presumed abandoned, whether | ||
located in this State or another state. | ||
(b) If it appears from records of the holder that the most | ||
recently recorded address of the apparent owner under |
subsection (a) is a temporary address and this State is the | ||
state of the next most recently recorded address that is not a | ||
temporary address, this State may take custody of the property | ||
presumed abandoned. | ||
Section 15-304. Holder domiciled in this State. | ||
(a) Except as in subsection (b) or Section 15-302 or | ||
15-303, the administrator may take custody of property presumed | ||
abandoned, whether located in this State, another state, or a | ||
foreign country, if the holder is domiciled in this State or is | ||
this State or a governmental subdivision, agency, or | ||
instrumentality of this State, and | ||
(1) another state or foreign country is not entitled to | ||
the property because there is no last-known address of the | ||
apparent owner or other person entitled to the property in | ||
the records of the holder; or | ||
(2) the state or foreign country of the last-known | ||
address of the apparent owner or other person entitled to | ||
the property does not provide for custodial taking of the | ||
property. | ||
(b) Property is not subject to custody of the administrator | ||
under subsection (a) if the property is specifically exempt | ||
from custodial taking under the law of this State or the state | ||
or foreign country of the last-known address of the apparent | ||
owner. | ||
(c) If a holder's state of domicile has changed since the |
time property was presumed abandoned, the holder's state of | ||
domicile under this Section is deemed to be the state where the | ||
holder was domiciled at the time the property was presumed | ||
abandoned. | ||
Section 15-305. Custody if transaction took place in this | ||
State. Except as in Section 15-302, 15-303, or 15-304, the | ||
administrator may take custody of property presumed abandoned | ||
whether located in this State or another state if: | ||
(1) the transaction out of which the property arose | ||
took place in this State; | ||
(2) the holder is domiciled in a state that does not | ||
provide for the custodial taking of the property, except | ||
that if the property is specifically exempt from custodial | ||
taking under the law of the state of the holder's domicile, | ||
the property is not subject to the custody of the | ||
administrator; and | ||
(3) the last-known address of the apparent owner or | ||
other person entitled to the property is unknown or in a | ||
state that does not provide for the custodial taking of the | ||
property, except that if the property is specifically | ||
exempt from custodial taking under the law of the state of | ||
the last-known address, the property is not subject to the | ||
custody of the administrator. | ||
Section 15-306. Traveler's check, money order, or similar |
instrument. The administrator may take custody of sums payable | ||
on a traveler's check, money order, or similar instrument | ||
presumed abandoned to the extent permissible under 12 U.S.C. | ||
Sections 2501 through 2503, as amended. | ||
Section 15-307. Burden of proof to establish | ||
administrator's right to custody. Subject to Article 4 and | ||
Section 15-1005, if the administrator asserts a right to | ||
custody of unclaimed property and there is a dispute concerning | ||
such property, the administrator has the initial burden to | ||
prove: | ||
(1) the amount of the property; | ||
(2) the property is presumed abandoned; and | ||
(3) the property is subject to the custody of the | ||
administrator. | ||
ARTICLE 4. REPORT BY HOLDER | ||
Section 15-401. Report required by holder. | ||
(a) A holder of property presumed abandoned and subject to | ||
the custody of the administrator shall report in a record to | ||
the administrator concerning the property. A holder shall | ||
report via the internet in a format approved by the | ||
administrator, unless the administrator gives a holder | ||
specific permission to file a paper report. | ||
(b) A holder may contract with a third party to make the |
report required under subsection (a). | ||
(c) Whether or not a holder contracts with a third party | ||
under subsection (b), the holder is responsible: | ||
(1) to the administrator for the complete, accurate, | ||
and timely reporting of property presumed abandoned; and | ||
(2) for paying or delivering to the administrator | ||
property described in the report. | ||
Section 15-402. Content of report. | ||
(a) The report required under Section 15-401 must: | ||
(1) be signed by or on behalf of the holder and | ||
verified as to its completeness and accuracy; | ||
(2) if filed electronically, be in a secure format | ||
approved by the administrator which protects confidential | ||
information of the apparent owner; | ||
(3) describe the property; | ||
(4) except for a traveler's check, money order, or | ||
similar instrument, contain the name, if known, last-known | ||
address, if known, and Social Security number or taxpayer | ||
identification number, if known or readily ascertainable, | ||
of the apparent owner of property with a value of $5 or | ||
more; | ||
(5) for an amount held or owing under a life or | ||
endowment insurance policy, annuity contract, or other | ||
property where ownership vests in a beneficiary upon the | ||
death of the owner, contain the name and last-known address |
of the insured, annuitant, or other apparent owner of the | ||
policy or contract and of the beneficiary; | ||
(6) for property held in or removed from a safe-deposit | ||
box, indicate the location of the property, where it may be | ||
inspected by the administrator, and any amounts owed to the | ||
holder under Section 15-606; | ||
(7) contain the commencement date for determining | ||
abandonment under Article 2; | ||
(8) state that the holder has complied with the notice | ||
requirements of Section 15-501; | ||
(9) identify property that is a non-freely | ||
transferable security and explain why it is a non-freely | ||
transferable security; and | ||
(10) contain other information the administrator | ||
prescribes by rules. | ||
(b) A report under Section 15-401 may include in the | ||
aggregate items valued under $5 each. If the report includes | ||
items in the aggregate valued under $5 each, the administrator | ||
may not require the holder to provide the name and address of | ||
an apparent owner of an item unless the information is | ||
necessary to verify or process a claim in progress by the | ||
apparent owner. | ||
(c) A report under Section 15-401 may include personal | ||
information as defined in Section 15-1401(a) about the apparent | ||
owner or the apparent owner's property. | ||
(d) If a holder has changed its name while holding property |
presumed abandoned or is a successor to another person that | ||
previously held the property for the apparent owner, the holder | ||
must include in the report under Section 15-401 its former name | ||
or the name of the previous holder, if any, and the known name | ||
and address of each previous holder of the property. | ||
Section 15-403. When report to be filed. | ||
(a) Except as otherwise provided in subsection (b) and | ||
subject to subsection (c), the report under Section 15-401 must | ||
be filed before November 1 of each year and cover the 12 months | ||
preceding July 1 of that year. | ||
(b) Subject to subsection (c), the report under Section | ||
15-401 to be filed by business associations, utilities, and | ||
life insurance companies must be filed before May 1 of each | ||
year for the immediately preceding calendar year. | ||
(c) Before the date for filing the report under Section | ||
15-401, the holder of property presumed abandoned may request | ||
the administrator to extend the time for filing. The | ||
administrator may grant an extension. If the extension is | ||
granted, the holder may pay or make a partial payment of the | ||
amount the holder estimates ultimately will be due. The payment | ||
or partial payment terminates accrual of interest on the amount | ||
paid. | ||
Section 15-404. Retention of records by holder. A holder | ||
required to file a report under Section 15-401 shall retain |
records for 10 years after the later of the date the report was | ||
filed or the last date a timely report was due to be filed, | ||
unless a shorter period is provided by rule of the | ||
administrator. The holder may satisfy the requirement to retain | ||
records under this Section through an agent. The records must | ||
contain: | ||
(1) the information required to be included in the | ||
report; | ||
(2) the date, place, and nature of the circumstances | ||
that gave rise to the property right; | ||
(3) the amount or value of the property; | ||
(4) the last address of the apparent owner, if known to | ||
the holder; | ||
(5) sufficient records of items which were not reported | ||
as unclaimed, to allow examination to determine whether the | ||
holder has complied with the Act; and | ||
(6) if the holder sells, issues, or provides to others | ||
for sale or issue in this State traveler's checks, money | ||
orders, or similar instruments, other than third-party | ||
bank checks, on which the holder is directly liable, a | ||
record of the instruments while they remain outstanding | ||
indicating the state and date of issue. | ||
Section 15-405. Property reportable and payable or | ||
deliverable absent owner demand. Property is reportable and | ||
payable or deliverable under this Act even if the owner fails |
to make demand or present an instrument or document otherwise | ||
required to obtain payment. | ||
ARTICLE 5. NOTICE TO APPARENT OWNER OF PROPERTY PRESUMED | ||
ABANDONED | ||
Section 15-501. Notice to apparent owner by holder. | ||
(a) Subject to subsections (b) and (c), the holder of | ||
property presumed abandoned shall send to the apparent owner | ||
notice by first-class United States mail that complies with | ||
Section 15-502 in a format acceptable to the administrator not | ||
more than one year nor less than 60 days before filing the | ||
report under Section 15-401 if: | ||
(1) the holder has in its records an address for the | ||
apparent owner which the holder's records do not disclose | ||
to be invalid and is sufficient to direct the delivery of | ||
first-class United States mail to the apparent owner; and | ||
(2) the value of the property is $50 or more. | ||
(b) If an apparent owner has consented to receive | ||
electronic-mail delivery from the holder, the holder shall send | ||
the notice described in subsection (a) both by first-class | ||
United States mail to the apparent owner's last-known mailing | ||
address and by electronic mail, unless the holder believes that | ||
the apparent owner's electronic-mail address is invalid. | ||
(c) The holder of securities presumed abandoned under | ||
Sections 15-202, 15-203, or 15-208 shall send to the apparent |
owner notice by certified United States mail that complies with | ||
Section 15-502 in a format acceptable to the administrator not | ||
less than 60 days before filing the report under Section 15-401 | ||
if: | ||
(1) the holder has in its records an address for the | ||
apparent owner which the holder's records do not disclose | ||
to be invalid and is sufficient to direct the delivery of | ||
United States mail to the apparent owner; and | ||
(2) the value of the property is $1,000 or more. | ||
The administrator may issue rules allowing a holder to | ||
deduct reasonable costs incurred in sending a notice by | ||
certified United States mail under this subsection. | ||
(d) In addition to other indications of an apparent owner's | ||
interest in property pursuant to Section 15-210, a signed | ||
return receipt in response to a notice sent pursuant to this | ||
Section by certified United States mail shall constitute a | ||
record communicated by the apparent owner to the holder | ||
concerning the property or the account in which the property is | ||
held. | ||
Section 15-502. Contents of notice by holder. | ||
(a) Notice under Section 15-501 must contain a heading that | ||
reads substantially as follows: "Notice. The State of Illinois | ||
requires us to notify you that your property may be transferred | ||
to the custody of the administrator if you do not contact us | ||
before (insert date that is 30 days after the date of this |
notice)." | ||
(b) The notice under Section 15-501 must: | ||
(1) identify the nature and, except for property that | ||
does not have a fixed value, the value of the property that | ||
is the subject of the notice; | ||
(2) state that the property will be turned over to the | ||
State Treasurer; | ||
(3) state that after the property is turned over to the | ||
State Treasurer an apparent owner that seeks return of the | ||
property may file a claim with the administrator; | ||
(4) state that property that is not legal tender of the | ||
United States may be sold by the State Treasurer; | ||
(5) provide instructions that the apparent owner must | ||
follow to prevent the holder from reporting and paying or | ||
delivering the property to the State Treasurer; and | ||
(6) provide the name, address, and e-mail address or | ||
telephone number to contact the holder. | ||
(c) The holder may supplement the required information by | ||
listing a website where apparent owners may obtain more | ||
information about how to prevent the holder from reporting and | ||
paying or delivering the property to the State Treasurer. | ||
Section 15-503. Notice by administrator. | ||
(a) The administrator shall give notice to an apparent | ||
owner that property presumed abandoned and appears to be owned | ||
by the apparent owner is held by the administrator under this |
Act. | ||
(b) In providing notice under subsection (a), the | ||
administrator shall: | ||
(1) except as otherwise provided in paragraph (2), send | ||
written notice by first-class United States mail to each | ||
apparent owner of property valued at $100 or more held by | ||
the administrator, unless the administrator determines | ||
that a mailing by first-class United States mail would not | ||
be received by the apparent owner, and, in the case of a | ||
security held in an account for which the apparent owner | ||
had consented to receiving electronic mail from the holder, | ||
send notice by electronic mail if the electronic-mail | ||
address of the apparent owner is known to the administrator | ||
instead of by first-class United States mail; or | ||
(2) send the notice to the apparent owner's | ||
electronic-mail address if the administrator does not have | ||
a valid United States mail address for an apparent owner, | ||
but has an electronic-mail address that the administrator | ||
does not know to be invalid. | ||
(c) In addition to the notice under subsection (b), the | ||
administrator shall: | ||
(1) publish every 6 months in at least one English | ||
language newspaper of general circulation in each county in | ||
this State notice of property held by the administrator | ||
which must include: | ||
(A) the total value of property received by the |
administrator during the preceding 6-month period, | ||
taken from the reports under Section 15-401; | ||
(B) the total value of claims paid by the | ||
administrator during the preceding 6-month period; | ||
(C) the Internet web address of the unclaimed | ||
property website maintained by the administrator; | ||
(D) a telephone number and electronic-mail address | ||
to contact the administrator to inquire about or claim | ||
property; and | ||
(E) a statement that a person may access the | ||
Internet by a computer to search for unclaimed property | ||
and a computer may be available as a service to the | ||
public at a local public library. | ||
(2) The administrator shall maintain a website | ||
accessible by the public and electronically searchable | ||
which contains the names reported to the administrator of | ||
apparent owners for whom property is being held by the | ||
administrator. The administrator need not list property on | ||
such website when: no owner name was reported, a claim has | ||
been initiated or is pending for the property, the | ||
administrator has made direct contact with the apparent | ||
owner of the property, and in other instances where the | ||
administrator reasonably believes exclusion of the | ||
property is in the best interests of both the State and the | ||
owner of the property. | ||
(d) The website or database maintained under subsection |
(c)(2) must include instructions for filing with the | ||
administrator a claim to property and a printable claim form | ||
with instructions for its use. | ||
(e) Tax return identification of apparent owners of | ||
abandoned property. | ||
(1) At least annually the administrator shall notify | ||
the Department of Revenue of the names of persons appearing | ||
to be owners of abandoned property under this Section. The | ||
administrator shall also provide to the Department of | ||
Revenue the social security numbers of the persons, if | ||
available. | ||
(2) The Department of Revenue shall notify the | ||
administrator if any person under subsection (e)(1) has | ||
filed an Illinois income tax return and shall provide the | ||
administrator with the last known address of the person as | ||
it appears in Department of Revenue records, except as | ||
prohibited by federal law. The Department of Revenue may | ||
also provide additional addresses for the same taxpayer | ||
from the records of the Department, except as prohibited by | ||
federal law. | ||
(3) In order to facilitate the return of property under | ||
this subsection, the administrator and the Department of | ||
Revenue may enter into an interagency agreement concerning | ||
protection of confidential information, data match rules, | ||
and other issues. | ||
(4) The administrator may deliver, as provided under |
Section 15-904 of this Act, property or pay the amount | ||
owing to a person matched under this Section without the | ||
person filing a claim under Section 15-903 of this Act if | ||
the following conditions are met: | ||
(A) the value of the property that is owed the | ||
person is $2,000 or less; | ||
(B) the property is not either tangible property or | ||
securities; | ||
(C) the last known address for the person according | ||
to the Department of Revenue records is less than 12 | ||
months old; and | ||
(D) the administrator has evidence sufficient to | ||
establish that the person who appears in Department of | ||
Revenue records is the owner of the property and the | ||
owner currently resides at the last known address from | ||
the Department of Revenue. | ||
(5) If the value of the property that is owed the | ||
person is greater than $2,000, or is tangible property or | ||
securities the administrator shall provide notice to the | ||
person, informing the person that he or she is the owner of | ||
abandoned property held by the State and may file a claim | ||
with the administrator for return of the property. | ||
(f) The administrator may use additional databases to | ||
verify the identity of the person and that the person currently | ||
resides at the last known address. The administrator may | ||
utilize publicly and commercially available databases to find |
and update or add information for apparent owners of property | ||
held by the administrator. | ||
(g) In addition to giving notice under subsection (b), | ||
publishing the information under subsection (c)(1) and | ||
maintaining the website or database under subsection (c)(2), | ||
the administrator may use other printed publication, | ||
telecommunication, the Internet, or other media to inform the | ||
public of the existence of unclaimed property held by the | ||
administrator. | ||
Section 15-504. Cooperation among State officers and | ||
agencies to locate apparent owner. Unless prohibited by law of | ||
this State other than this Act, on request of the | ||
administrator, each officer, agency, board, commission, | ||
division, and department of this State, any body politic and | ||
corporate created by this State for a public purpose, and each | ||
political subdivision of this State shall make its books and | ||
records available to the administrator and cooperate with the | ||
administrator to determine the current address of an apparent | ||
owner of property held by the administrator under this Act or | ||
to otherwise assist the administrator in the administration of | ||
this Act. The administrator may also enter into data sharing | ||
agreements to enable such other governmental agencies to | ||
provide an additional notice to apparent owners of property | ||
held by the administrator. |
ARTICLE 6. TAKING CUSTODY OF PROPERTY BY ADMINISTRATOR | ||
Section 15-601. Definition of good faith. In this Article, | ||
payment or delivery of property is made in good faith if a | ||
holder: | ||
(1) had a reasonable basis for believing, based on the | ||
facts then known, that the property was required or | ||
permitted to be paid or delivered to the administrator | ||
under this Act; or | ||
(2) made payment or delivery: | ||
(A) in response to a demand by the administrator or | ||
administrator's agent; or | ||
(B) under a guidance or ruling issued by the | ||
administrator which the holder reasonably believed | ||
required or permitted the property to be paid or | ||
delivered. | ||
Section 15-602. Dormancy charge. | ||
(a) A holder may deduct a dormancy charge from property | ||
required to be paid or delivered to the administrator if: | ||
(1) a valid contract between the holder and the | ||
apparent owner authorizes imposition of the charge for the | ||
apparent owner's failure to claim the property within a | ||
specified time; and | ||
(2) the holder regularly imposes the charge and | ||
regularly does not reverse or otherwise cancel the charge. |
(b) The amount of the deduction under subsection (a) is | ||
limited to an amount that is not unconscionable considering all | ||
relevant factors, including the marginal transactional costs | ||
incurred by the holder in maintaining the apparent owner's | ||
property and any services received by the apparent owner. | ||
(c) A holder may not deduct an escheat fee or other charges | ||
imposed solely by virtue of property being reported as presumed | ||
abandoned. | ||
Section 15-603. Payment or delivery of property to | ||
administrator. | ||
(a) Except as otherwise provided in this Section, on filing | ||
a report under Section 15-401, the holder shall pay or deliver | ||
to the administrator the property described in the report. | ||
(b) If property in a report under Section 15-401 is an | ||
automatically renewable deposit and a penalty or forfeiture in | ||
the payment of interest would result from paying the deposit to | ||
the administrator at the time of the report, the date for | ||
payment of the property to the administrator is extended until | ||
a penalty or forfeiture no longer would result from payment, if | ||
the holder informs the administrator of the extended date. | ||
(c) Tangible property in a safe-deposit box may not be | ||
delivered to the administrator until a mutually agreed upon | ||
date that is no sooner than 60 days after filing the report | ||
under Section 15-401. | ||
(d) If property reported to the administrator under Section |
15-401 is a security, the administrator may: | ||
(1) make an endorsement, instruction, or entitlement | ||
order on behalf of the apparent owner to invoke the duty of | ||
the issuer, its transfer agent, or the securities | ||
intermediary to transfer the security; or | ||
(2) dispose of the security under Section 15-702. | ||
(e) If the holder of property reported to the administrator | ||
under Section 15-401 is the issuer of a certificated security, | ||
the administrator may obtain a replacement certificate in | ||
physical or book-entry form under Section 8-405 of the Uniform | ||
Commercial Code. An indemnity bond is not required. | ||
(f) The administrator shall establish procedures for the | ||
registration, issuance, method of delivery, transfer, and | ||
maintenance of securities delivered to the administrator by a | ||
holder. | ||
(g) An issuer, holder, and transfer agent or other person | ||
acting in good faith under this Section under instructions of | ||
and on behalf of the issuer or holder is not liable to the | ||
apparent owner for a claim arising with respect to property | ||
after the property has been delivered to the administrator. | ||
(h) A holder is not required to deliver to the | ||
administrator a security identified by the holder as a | ||
non-freely transferable security in a report filed under | ||
Section 15-401. If the administrator or holder determines that | ||
a security is no longer a non-freely transferable security, the | ||
holder shall report and deliver the security on the next |
regular date prescribed for delivery of securities under this | ||
Act. The holder shall make a determination annually whether a | ||
security identified in a report filed under Section 15-401 as a | ||
non-freely transferable security is no longer a non-freely | ||
transferable security. | ||
Section 15-604. Effect of payment or delivery of property | ||
to administrator. | ||
(a) On payment or delivery of property to the administrator | ||
under this Act, the administrator as agent for the State | ||
assumes custody and responsibility for safekeeping the | ||
property. A holder that pays or delivers property to the | ||
administrator in good faith and substantially complies with | ||
Sections 15-501 and 15-502 is relieved of all liability which | ||
thereafter may arise or be made in respect to the property to | ||
the extent of the value of the property so paid or delivered. | ||
(b) If legal proceedings are instituted by any other state | ||
or states in any state or federal court with respect to | ||
unclaimed funds or abandoned property previously paid or | ||
delivered to the administrator, the holder shall give written | ||
notification to the administrator and the Attorney General of | ||
this State of such proceedings within 10 days after service of | ||
process, or in the alternative at least 10 days before the | ||
return date or date on which an answer or similar pleading is | ||
due (or any extension thereof secured by the holder). The | ||
Attorney General may take such action as he or she deems |
necessary or expedient to protect the interests of this State. | ||
The Attorney General by written notice prior to the return date | ||
or date on which an answer or similar pleading is due (or any | ||
extension thereof secured by the holder), but in any event in | ||
reasonably sufficient time for the holder to comply with the | ||
directions received, shall either direct the holder actively to | ||
defend in such proceedings or that no defense need be entered | ||
in such proceedings. If a direction is received from the | ||
Attorney General that the holder need not make a defense, such | ||
shall not preclude the holder from entering a defense in its | ||
own name if it should so choose. However, any defense made by | ||
the holder on its own initiative shall not entitle the holder | ||
to reimbursement for legal fees, costs and other expenses as is | ||
hereinafter provided in respect to defenses made pursuant to | ||
the directions of the Attorney General. If, after the holder | ||
has actively defended in such proceedings pursuant to a | ||
direction of the Attorney General, or has been notified in | ||
writing by the Attorney General that no defense need be made | ||
with respect to such funds, a judgment is entered against the | ||
holder for any amount paid to the administrator under this Act, | ||
the administrator shall, upon being furnished with proof of | ||
payment in satisfaction of such judgment, reimburse the holder | ||
the amount so paid. The administrator shall also reimburse the | ||
holder for any legal fees, costs and other directly related | ||
expenses incurred in legal proceedings undertaken pursuant to | ||
the direction of the Attorney General. |
Section 15-605. Recovery of property by holder from | ||
administrator. | ||
(a) A holder that under this Act pays money to the | ||
administrator may file a claim for reimbursement from the | ||
administrator of the amount paid if the holder: | ||
(1) paid the money in error; or | ||
(2) after paying the money to the administrator, paid | ||
money to a person the holder reasonably believed entitled | ||
to the money. | ||
(b) If a claim for reimbursement under subsection (a) is | ||
made for a payment made on a negotiable instrument, including a | ||
traveler's check, money order, or similar instrument, the | ||
holder must submit proof that the instrument was presented and | ||
payment was made to a person the holder reasonably believed | ||
entitled to payment. The holder may claim reimbursement even if | ||
the payment was made to a person whose claim was made after | ||
expiration of a period of limitation on the owner's right to | ||
receive or recover property, whether specified by contract, | ||
statute, or court order. | ||
(c) If a holder is reimbursed by the administrator under | ||
subsection (a)(2), the holder may also recover from the | ||
administrator income or gain under Section 15-607 that would | ||
have been paid to the owner if the money had been claimed from | ||
the administrator by the owner to the extent the income or gain | ||
was paid by the holder to the owner. |
(d) A holder that under this Act delivers property other | ||
than money to the administrator may file a claim for return of | ||
the property from the administrator if: | ||
(1) the holder delivered the property in error; or | ||
(2) the apparent owner has claimed the property from | ||
the holder. | ||
(e) If a claim for return of property under subsection (d) | ||
is made, the holder shall include with the claim evidence | ||
sufficient to establish that the apparent owner has claimed the | ||
property from the holder or that the property was delivered by | ||
the holder to the administrator in error. | ||
(f) The administrator may determine that an affidavit | ||
submitted by a holder is evidence sufficient to establish that | ||
the holder is entitled to reimbursement or to recover property | ||
under this Section. | ||
(g) A holder is not required to pay a fee or other charge | ||
for reimbursement or return of property under this Section. | ||
(h) Unless extended for reasonable cause, not later than 90 | ||
days after a holder's claim is complete the administrator shall | ||
allow or deny the claim and give the holder notice in a record | ||
of the decision. If a holder fails to provide all the | ||
information and documentation requested by the administrator | ||
as necessary to establish legal ownership of the property and | ||
the claim is inactive for at least 90 days, then the | ||
administrator may close the claim without issuing a final | ||
decision. However, if the claimant makes a request in writing |
for a final decision prior to the administrator's closing of | ||
the claim, the administrator shall issue a final decision. A | ||
claim will be considered complete when a holder has provided | ||
all the information and documentation requested by the | ||
administrator as necessary to establish legal ownership and | ||
such information or documentation is entered into the | ||
administrator's unclaimed property system. | ||
(i) The claimant may initiate a proceeding under the | ||
Illinois Administrative Procedure Act for review of the | ||
administrator's decision or the deemed denial under subsection | ||
(h) not later than: | ||
(1) 30 days following receipt of the notice of the | ||
administrator's decision; or | ||
(2) 120 days following the filing of a claim under | ||
subsection (a) or (d) in the case of a deemed denial under | ||
subsection (h). | ||
Section 15-606. Property removed from safe-deposit box. | ||
Property removed from a safe-deposit box and delivered under | ||
this Act to the administrator under this Act is subject to the | ||
holder's right to reimbursement for the cost of opening the box | ||
and a lien or contract providing reimbursement to the holder | ||
for unpaid rent charges for the box. Upon application by the | ||
holder, after the sale of the property, and after deducting the | ||
expense incurred by the administrator in selling the property, | ||
the administrator shall reimburse the holder from the proceeds |
remaining. The administrator shall promulgate administrative | ||
rules concerning the reimbursement process under this Section. | ||
Section 15-607. Crediting income or gain to owner's | ||
account. If property other than money is delivered to the | ||
administrator, the owner is entitled to receive from the | ||
administrator income or gain realized or accrued on the | ||
property before the property is sold. Interest on money is not | ||
payable to an owner for periods where the property is in the | ||
possession of the administrator. | ||
Section 15-608. Administrator's options as to custody. | ||
(a) The administrator may decline to take custody of | ||
property reported under Section 15-401 if the administrator | ||
determines that: | ||
(1) the property has a value less than the estimated | ||
expenses of notice and sale of the property; or | ||
(2) taking custody of the property would be unlawful. | ||
(b) A holder may pay or deliver property to the | ||
administrator before the property is presumed abandoned under | ||
this Act if the holder: | ||
(1) provides the apparent owner of the property any | ||
notice required by Section 15-501 and provides the | ||
administrator evidence of the holder's compliance with | ||
this paragraph; | ||
(2) includes with the payment or delivery a report |
regarding the property conforming to Section 15-402; and | ||
(3) first obtains the administrator's consent in a | ||
record to accept payment or delivery. | ||
(c) A holder's request for the administrator's consent | ||
under subsection (b)(3) must be in a record. If the | ||
administrator fails to respond to the request not later than 30 | ||
days after receipt of the request, the administrator is deemed | ||
to consent to the payment or delivery of the property and the | ||
payment or delivery is considered to have been made in good | ||
faith. | ||
(d) On payment or delivery of property under subsection | ||
(b), the property is presumed abandoned. | ||
Section 15-609. Disposition of property having no | ||
substantial value; immunity from liability. | ||
(a) If the administrator takes custody of property | ||
delivered under this Act and later determines that the property | ||
has no substantial commercial value or that the cost of | ||
disposing of the property will exceed the value of the | ||
property, the administrator may return the property to the | ||
holder or destroy or otherwise dispose of the property. | ||
(b) An action or proceeding may not be commenced against | ||
the State, an agency of the State, the administrator, another | ||
officer, employee, or agent of the State, or a holder for or | ||
because of an act of the administrator under this Section, | ||
except for intentional misconduct or malfeasance. |
Section 15-610. Periods of limitation and repose. | ||
(a) Expiration, before, on, or after the effective date of | ||
this Act, of a period of limitation on an owner's right to | ||
receive or recover property, whether specified by contract, | ||
statute, or court order, does not prevent the property from | ||
being presumed abandoned or affect the duty of a holder under | ||
this Act to file a report or pay or deliver property to the | ||
administrator. | ||
(b) An action or proceeding may not be maintained by the | ||
administrator to enforce this Act in regard to the reporting, | ||
delivery, or payment of property more than 10 years after the | ||
holder specifically identified the property in a report filed | ||
with the administrator or gave express notice to the | ||
administrator of a dispute regarding the property. In the | ||
absence of such a report or other express notice, the period of | ||
limitation is tolled. The period of limitation is also tolled | ||
by the filing of a report that is fraudulent. | ||
ARTICLE 7. SALE OF PROPERTY BY ADMINISTRATOR | ||
Section 15-701. Public sale of property. | ||
(a) Subject to Section 15-702, not earlier than 3 years | ||
after receipt of property presumed abandoned, the | ||
administrator may sell the property. | ||
(b) Before selling property under subsection (a), the |
administrator shall give notice to the public of: | ||
(1) the date of the sale; and | ||
(2) a reasonable description of the property. | ||
(c) A sale under subsection (a) must be to the highest | ||
bidder: | ||
(1) at public sale at a location in this State which | ||
the administrator determines to be the most favorable | ||
market for the property; | ||
(2) on the Internet; or | ||
(3) on another forum the administrator determines is | ||
likely to yield the highest net proceeds of sale. | ||
(d) The administrator may decline the highest bid at a sale | ||
under this Section and reoffer the property for sale if the | ||
administrator determines the highest bid is insufficient. | ||
(e) If a sale held under this Section is to be conducted | ||
other than on the Internet, the administrator must cause to be | ||
published at least one notice of the sale, at least 2 weeks but | ||
not more than 5 weeks before the sale, in a newspaper of | ||
general circulation in the county in which the property is to | ||
be sold. For purposes of this subsection, the reasonable | ||
description of property to be sold required by subsection (b) | ||
above may be satisfied by posting such information on the | ||
administrator's website so long as the newspaper notice | ||
includes the website address where such information is posted. | ||
(f) Property eligible for sale will not be sold when a | ||
claim has been filed with the administrator by an apparent |
owner, heir, or agent. However, upon approval of a claim, the | ||
owner, heir or, agent may request the administrator to dispose | ||
of the property by sale and remit the net proceeds to the | ||
owner, heir, or agent. Upon disapproval of the claim, the | ||
administrator may dispose of the property by sale. | ||
Section 15-702. Disposal of securities. | ||
(a) The administrator may not sell or otherwise liquidate a | ||
security until 3 years after the administrator receives the | ||
security and gives the apparent owner notice under Section | ||
15-503 that the administrator holds the security unless the | ||
administrator determines it would be in the best interests of | ||
the owner for the sale to occur prior to the expiration of the | ||
3-year period after the administrator receives the security and | ||
gives the apparent owner notice under Section 15-503. The | ||
administrator shall by administrative rule provide examples of | ||
situations where it would be in the best interests of the owner | ||
for the sale to occur prior to the expiration of the 3-year | ||
period. | ||
(b) The administrator may not sell a security listed on an | ||
established stock exchange for less than the price prevailing | ||
on the exchange at the time of sale. The administrator may sell | ||
a security not listed on an established exchange by any | ||
commercially reasonable method. | ||
Section 15-703. Recovery of securities or value by owner. |
(a) If the administrator sells a security before the | ||
expiration of 3 years after delivery of the security to the | ||
administrator, an apparent owner that files a valid claim under | ||
this Act of ownership of the security before the 3-year period | ||
expires is entitled, at the option of the owner, to receive: | ||
(1) replacement of the security; | ||
(2) the market value of the security at the time the | ||
claim is filed, plus dividends, interest, and other | ||
increments on the security up to the time the claim is | ||
paid; or | ||
(3) the net proceeds of the sale of the security, plus | ||
dividends, interest, and other increments on the security | ||
up to the time the security was sold. | ||
(b) Replacement of the security or calculation of market | ||
value under subsection (a) must take into account a stock | ||
split, reverse stock split, stock dividend, or similar | ||
corporate action. | ||
(c) A person that makes a valid claim under this Act of | ||
ownership of a security after expiration of 3 years after | ||
delivery of the security to the administrator is entitled to | ||
receive: | ||
(1) the security the holder delivered to the | ||
administrator, if it is in the custody of the | ||
administrator, plus dividends, interest, and other | ||
increments on the security up to the time the administrator | ||
delivers the security to the person; or |
(2) the net proceeds of the sale of the security, plus | ||
dividends, interest, and other increments on the security | ||
up to the time the security was sold. | ||
(d) Securities eligible for sale will not be sold when a | ||
claim has been filed with the administrator by an apparent | ||
owner, heir, or agent. However, upon approval of a claim, the | ||
owner, heir or, agent may request the administrator to dispose | ||
of the securities by sale and remit the net proceeds to the | ||
owner, heir, or agent. Upon disapproval of the claim, the | ||
administrator may dispose of the securities by sale. | ||
Section 15-704. Purchaser owns property after sale. A | ||
purchaser of property at a sale conducted by the administrator | ||
under this Act takes the property free of all claims of the | ||
owner, a previous holder, or a person claiming through the | ||
owner or holder. The administrator shall execute documents | ||
necessary to complete the transfer of ownership to the | ||
purchaser. | ||
Section 15-705. Exceptions to the sale of tangible | ||
property. The administrator shall dispose of tangible property | ||
identified by this Section in accordance with this Section. | ||
(a) Military medals or decorations. The administrator may | ||
not sell a medal or decoration awarded for military service in | ||
the armed forces of the United States. Instead, the | ||
administrator, with the consent of the respective organization |
under paragraph (1), agency under paragraph (2), or entity | ||
under paragraph (3), may deliver a medal or decoration to be | ||
held in custody for the owner, to: | ||
(1) a military veterans organization qualified under | ||
Section 501(c)(19) of the Internal Revenue Code; | ||
(2) the agency that awarded the medal or decoration; or | ||
(3) a governmental entity. | ||
After delivery, the administrator is not responsible for | ||
the safekeeping of the medal or decoration. | ||
(b) Property with historical value. Property that the | ||
administrator reasonably believes may have historical value | ||
may be, at his or her discretion, loaned to an accredited | ||
museum in the United States where it will be kept until such | ||
time as the administrator orders it to be returned to his or | ||
her custody. | ||
(c) Human remains. If human remains are delivered to the | ||
administrator under this Act, the administrator shall deliver | ||
those human remains to the coroner of the county in which the | ||
human remains were abandoned for disposition under Section | ||
3-3034 of the Counties Code. The only human remains that may be | ||
delivered to the administrator under this Act and that the | ||
administrator may receive are those that are reported and | ||
delivered as contents of a safe deposit box. | ||
(d) Evidence in a criminal investigation. Property that may | ||
have been used in the commission of a crime or that may assist | ||
in the investigation of a crime, as determined after consulting |
with the Department of State Police, shall be delivered to the | ||
Department of State Police or other appropriate law enforcement | ||
authority to allow law enforcement to determine whether a | ||
criminal investigation should take place. Any such property | ||
delivered to a law enforcement authority shall be held in | ||
accordance with existing statutes and rules related to the | ||
gathering, retention, and release of evidence. | ||
(e) Firearms. | ||
(1) The administrator, in cooperation with the | ||
Department of State Police, shall develop a procedure to | ||
determine whether a firearm delivered to the administrator | ||
under this Act has been stolen or used in the commission of | ||
a crime. The Department of State Police shall determine the | ||
appropriate disposition of a firearm that has been stolen | ||
or used in the commission of a crime. The administrator | ||
shall attempt to return a firearm that has not been stolen | ||
or used in the commission of a crime to the rightful owner | ||
if the Department of State Police determines that the owner | ||
may lawfully possess the firearm. | ||
(2) If the administrator is unable to return a firearm | ||
to its owner, the administrator shall transfer custody of | ||
the firearm to the Department of State Police. Legal title | ||
to a firearm transferred to the Department of State Police | ||
under this subsection (e) is vested in the Department of | ||
State Police by operation of law if: | ||
(i) the administrator cannot locate the owner of |
the firearm; | ||
(ii) the owner of the firearm may not lawfully | ||
possess the firearm; | ||
(iii) the apparent owner does not respond to notice | ||
published under Section 15-503 of this Act; or | ||
(iv) the apparent owner responds to notice | ||
published under Section 15-502 and states that he or | ||
she no longer claims an interest in the firearm. | ||
(3) With respect to a firearm whose title is | ||
transferred to the Department of State Police under this | ||
subsection (e), the Department of State Police may: | ||
(i) retain the firearm for use by the crime | ||
laboratory system, for training purposes, or for | ||
any other application as deemed appropriate by the | ||
Department; | ||
(ii) transfer the firearm to the Illinois | ||
State Museum if the firearm has historical value; | ||
or | ||
(iii) destroy the firearm if it is not retained | ||
pursuant to subparagraph (i) or transferred | ||
pursuant to subparagraph (ii). | ||
As used in this subsection, "firearm" has the meaning | ||
provided in the Firearm Owners Identification Card Act. | ||
ARTICLE 8. ADMINISTRATION OF PROPERTY |
Section 15-801. Deposit of funds by administrator. | ||
(a) Except as otherwise provided in this Section, the | ||
administrator shall deposit in the Unclaimed Property Trust | ||
Fund all funds received under this Act, including proceeds from | ||
the sale of property under Article 7. The administrator may | ||
deposit any amount in the Unclaimed Property Trust Fund into | ||
the State Pensions Fund during the fiscal year at his or her | ||
discretion; however, he or she shall, on April 15 and October | ||
15 of each year, deposit any amount in the Unclaimed Property | ||
Trust Fund exceeding $2,500,000 into the State Pensions Fund. | ||
If on either April 15 or October 15, the administrator | ||
determines that a balance of $2,500,000 is insufficient for the | ||
prompt payment of unclaimed property claims authorized under | ||
this Act, the administrator may retain more than $2,500,000 in | ||
the Unclaimed Property Trust Fund in order to ensure the prompt | ||
payment of claims. Beginning in State fiscal year 2018, all | ||
amounts that are deposited into the State Pensions Fund from | ||
the Unclaimed Property Trust Fund shall be apportioned to the | ||
designated retirement systems as provided in subsection (c-6) | ||
of Section 8.12 of the State Finance Act to reduce their | ||
actuarial reserve deficiencies. | ||
(b) The administrator shall make prompt payment of claims | ||
he or she duly allows as provided for in this Act from the | ||
Unclaimed Property Trust Fund. This shall constitute an | ||
irrevocable and continuing appropriation of all amounts in the | ||
Unclaimed Property Trust Fund necessary to make prompt payment |
of claims duly allowed by the administrator pursuant to this | ||
Act. | ||
Section 15-802. Administrator to retain records of | ||
property. The administrator shall: | ||
(1) record and retain the name and last-known address | ||
of each person shown on a report filed under Section 15-401 | ||
to be the apparent owner of property delivered to the | ||
administrator; | ||
(2) record and retain the name and last-known address | ||
of each insured or annuitant and beneficiary shown on the | ||
report; | ||
(3) for each policy of insurance or annuity contract | ||
listed in the report of an insurance company, record and | ||
retain the policy or account number, the name of the | ||
company, and the amount due or paid shown on the report; | ||
(4) for each apparent owner listed in the report, | ||
record and retain the name of the holder that filed the | ||
report and the amount due or paid; and | ||
(5) maintain records sufficient to indicate the filing | ||
of reports required under Section 15-401 and the payment or | ||
delivery of property to the administrator under Section | ||
15-603. | ||
Records created or maintained pursuant to this Section are | ||
subject to the requirements of the Illinois State Records Act. |
Section 15-803. Expenses and service charges of | ||
administrator. Before making a deposit of funds received under | ||
this Act to the Unclaimed Property Trust Fund, the | ||
administrator may deduct expenses incurred in examining | ||
records of or collecting property from a putative holder or | ||
holder as provided in the State Officers and Employees Money | ||
Disposition Act. | ||
Section 15-804. Administrator holds property as custodian | ||
for owner. Upon the payment or delivery of abandoned property | ||
to the administrator, the State shall assume custody and shall | ||
be responsible for the safekeeping thereof. | ||
ARTICLE 9. CLAIM TO RECOVER PROPERTY FROM ADMINISTRATOR | ||
Section 15-901. Claim of another state to recover property. | ||
(a) If the administrator knows that property held by the | ||
administrator under this Act is subject to a superior claim of | ||
another state, the administrator shall: | ||
(1) report and pay or deliver the property to the other | ||
state; or | ||
(2) return the property to the holder so that the | ||
holder may pay or deliver the property to the other state. | ||
(b) The administrator is not required to enter into an | ||
agreement to transfer property to the other state under | ||
subsection (a). |
Section 15-902. Property subject to recovery by another | ||
state. | ||
(a) Property held under this Act by the administrator is | ||
subject to the right of another state to take custody of the | ||
property if: | ||
(1) the property was paid or delivered to the | ||
administrator because the records of the holder did not | ||
reflect a last-known address in the other state of the | ||
apparent owner and: | ||
(A) the other state establishes that the | ||
last-known address of the apparent owner or other | ||
person entitled to the property was in the other state; | ||
or | ||
(B) under the law of the other state, the property | ||
has become subject to a claim by the other state of | ||
abandonment; | ||
(2) the records of the holder did not accurately | ||
identify the owner of the property, the last-known address | ||
of the owner was in another state, and, under the law of | ||
the other state, the property has become subject to a claim | ||
by the other state of abandonment; | ||
(3) the property was subject to the custody of the | ||
administrator of this State under Section 15-305 and, under | ||
the law of the state of domicile of the holder, the | ||
property has become subject to a claim by the state of |
domicile of the holder of abandonment; or | ||
(4) the property: | ||
(A) is a sum payable on a traveler's check, money | ||
order, or similar instrument that was purchased in the | ||
other state and delivered to the administrator under | ||
Section 15-306; and | ||
(B) under the law of the other state, has become | ||
subject to a claim by the other state of abandonment. | ||
(b) A claim by another state to recover property under this | ||
Section must be presented in a form prescribed by the | ||
administrator, unless the administrator waives presentation of | ||
the form. | ||
(c) The administrator shall decide a claim under this | ||
Section not later than 90 days after it is presented. If the | ||
administrator determines that the other state is entitled under | ||
subsection (a) to custody of the property, the administrator | ||
shall allow the claim and pay or deliver the property to the | ||
other state. | ||
(d) The administrator may require another state, before | ||
recovering property under this Section, to agree to indemnify | ||
this State and its agents, officers and employees against any | ||
liability on a claim to the property. | ||
Section 15-903. Claim for property by person claiming to be | ||
owner. | ||
(a) A person claiming to be the owner of property held |
under this Act by the administrator or to the proceeds from the | ||
sale thereof may file a claim for the property on a form | ||
prescribed by the administrator. The claimant must verify the | ||
claim as to its completeness and accuracy. | ||
(b) The administrator may waive the requirement in | ||
subsection (a) and may pay or deliver property directly to a | ||
person if: | ||
(1) the person receiving the property or payment is | ||
shown to be the apparent owner included on a report filed | ||
under Section 15-401; | ||
(2) the administrator reasonably believes the person | ||
is entitled to receive the property or payment; and | ||
(3) the property has a value of less than $500. | ||
(c) The administrator may change the maximum value in | ||
subsection (b) by administrative rule. | ||
Section 15-904. When administrator must honor claim for | ||
property. | ||
(a) The administrator shall pay or deliver property to a | ||
claimant under subsection (a) of Section 15-903 if the | ||
administrator receives evidence sufficient to establish to the | ||
satisfaction of the administrator that the claimant is the | ||
owner of the property. | ||
(b) A claim will be considered complete when a claimant has | ||
provided all the information and documentation requested by the | ||
administrator as necessary to establish legal ownership and |
such information or documentation is entered into the | ||
administrator's unclaimed property system. Unless extended for | ||
reasonable cause, not later than 90 days after a claim is | ||
complete the administrator shall allow or deny the claim and | ||
give the claimant notice in a record of the decision. If a | ||
claimant fails to provide all the information and documentation | ||
requested by the administrator as necessary to establish legal | ||
ownership of the property and the claim is inactive for at | ||
least 90 days, then the administrator may close the claim | ||
without issuing a final decision. However, if the claimant | ||
makes a request in writing for a final decision prior to the | ||
administrator's closing of the claim, the administrator shall | ||
issue a final decision. | ||
(c) If the claim is denied or there is insufficient | ||
evidence to allow the claim under subsection (b): | ||
(1) the administrator shall inform the claimant of the | ||
reason for the denial and may specify what additional | ||
evidence, if any, is required for the claim to be allowed; | ||
(2) the claimant may file an amended claim with the | ||
administrator or commence an action under Section 15-906; | ||
and | ||
(3) the administrator shall consider an amended claim | ||
filed under paragraph (2) as an initial claim. | ||
Section 15-905. Allowance of claim for property. | ||
(a) The administrator shall pay or deliver to the owner the |
property or pay to the owner the net proceeds of a sale of the | ||
property, together with income or gain to which the owner is | ||
entitled under Section 15-607. On request of the owner, the | ||
administrator may sell or liquidate property and pay the net | ||
proceeds to the owner, even if the property had been held by | ||
the administrator for less than 3 years or the administrator | ||
has not complied with the notice requirements under Section | ||
15-503. | ||
(b) Property held under this Act by the administrator is | ||
subject to offset under Section 10.05 of the State Comptroller | ||
Act. | ||
Section 15-906. Action by person whose claim is denied. Not | ||
later than one year after filing a claim under subsection (a) | ||
of Section 15-903, the claimant may commence a contested case | ||
pursuant to the Illinois Administrative Procedure Act to | ||
establish a claim by the preponderance of the evidence after | ||
either receiving notice under subsection (b) of Section 15-903 | ||
or the claim is deemed denied under subsection (d) of Section | ||
15-903. | ||
ARTICLE 10. VERIFIED REPORT OF PROPERTY; EXAMINATION OF RECORDS | ||
Section 15-1001. Verified report of property. If a person | ||
does not file a report required by Section 15-401 or the | ||
administrator believes that a person may have filed an |
inaccurate, incomplete, or false report, the administrator may | ||
require the person to file a verified report in a form | ||
prescribed by the administrator. The verified report must: | ||
(1) state whether the person is holding property | ||
reportable under this Act; | ||
(2) describe property not previously reported or about | ||
which the administrator has inquired; | ||
(3) specifically identify property described under | ||
paragraph (2) about which there is a dispute whether it is | ||
reportable under this Act; and | ||
(4) state the amount or value of the property. | ||
Section 15-1002. Examination of records to determine | ||
compliance. The administrator, at reasonable times and on | ||
reasonable notice, may: | ||
(1) examine the records of any person to determine | ||
whether the person has complied with this Act even if the | ||
person believes it is not in possession of any property | ||
that must be reported, paid, or delivered under this Act; | ||
(2) issue an administrative subpoena requiring the | ||
person or agent of the person to make records available for | ||
examination; and | ||
(3) bring an action seeking judicial enforcement of the | ||
subpoena. | ||
Section 15-1002.1. Examination of State-regulated |
financial institutions. | ||
(a) Notwithstanding Section 15-1002 of this Act, for any | ||
financial organization for which the Department of Financial | ||
and Professional Regulation is the primary prudential | ||
regulator, the administrator shall not examine such financial | ||
institution unless the administrator has consulted with the | ||
Secretary of Financial and Professional Regulation and the | ||
Department of Financial and Professional Regulation has not | ||
examined such financial organization for compliance with this | ||
Act within the past 5 years. The Secretary of Financial and | ||
Professional Regulation may waive in writing the provisions of | ||
this subsection (a) in order to permit the administrator to | ||
examine a financial organization or group of financial | ||
organizations for compliance with this Act. | ||
(b) Nothing in this Section shall be construed to prohibit | ||
the administrator from examining a financial organization for | ||
which the Department of Financial and Professional Regulation | ||
is not the primary prudential regulator. Further, nothing is | ||
this Act shall be construed to limit the authority of the | ||
Department of Financial and Professional Regulation to examine | ||
financial organizations. | ||
Section 15-1003. Rules for conducting examination. | ||
(a) The administrator shall adopt rules governing | ||
procedures and standards for an examination under Section | ||
15-1002; the rules may reference any standards concerning |
unclaimed property examinations promulgated by the National | ||
Association of Unclaimed Property Administrators and shall | ||
make provisions for multi-state examinations. | ||
(b) After the adoption of rules under subsection (a), an | ||
examination under Section 15-1002 must be performed under the | ||
rules adopted under subsection (a). | ||
(c) If a person subject to examination under Section | ||
15-1002 has filed the reports required under Section 15-401 and | ||
Section 15-1001 and has retained the records required by | ||
Section 15-404, the following rules apply: | ||
(1) The examination must include a review of the | ||
person's records. | ||
(2) The examination may not be based on an estimate | ||
unless the person expressly consents in a record to the use | ||
of an estimate. | ||
(3) The person conducting the examination shall | ||
consider the evidence presented in good faith by the person | ||
in preparing the findings of the examination under Section | ||
15-1007. | ||
Section 15-1004. Records obtained in examination. Records | ||
obtained and records, including work papers, compiled by the | ||
administrator in the course of conducting an examination under | ||
Section 15-1002: | ||
(1) are subject to the confidentiality and security | ||
provisions of Article 14 and are exempt from disclosure |
under the Freedom of Information Act; | ||
(2) may be used by the administrator in an action to | ||
collect property or otherwise enforce this Act; | ||
(3) may be used in a joint examination conducted with | ||
another state, the United States, a foreign country or | ||
subordinate unit of a foreign country, or any other | ||
governmental entity if the governmental entity conducting | ||
the examination is legally bound to maintain the | ||
confidentiality and security of information obtained from | ||
a person subject to examination in a manner substantially | ||
equivalent to Article 14; | ||
(4) may be disclosed, on request, to the person that | ||
administers the unclaimed property law of another state for | ||
that state's use in circumstances equivalent to | ||
circumstances described in this Article, if the other state | ||
is required to maintain the confidentiality and security of | ||
information obtained in a manner substantially equivalent | ||
to Article 14; | ||
(5) must be produced by the administrator under an | ||
administrative or judicial subpoena or administrative or | ||
court order; and | ||
(6) must be produced by the administrator on request of | ||
the person subject to the examination in an administrative | ||
or judicial proceeding relating to the property. | ||
Section 15-1005. Evidence of unpaid debt or undischarged |
obligation. | ||
(a) A record of a putative holder showing an unpaid debt or | ||
undischarged obligation is prima facie evidence of the debt or | ||
obligation. | ||
(b) A putative holder may establish by a preponderance of | ||
the evidence that there is no unpaid debt or undischarged | ||
obligation for a debt or obligation described in subsection (a) | ||
or that the debt or obligation was not, or no longer is, a | ||
fixed and certain obligation of the putative holder. | ||
(c) A putative holder may overcome prima facie evidence | ||
under subsection (a) by establishing by a preponderance of the | ||
evidence that a check, draft, or similar instrument was: | ||
(1) issued as an unaccepted offer in settlement of an | ||
unliquidated amount; | ||
(2) issued but later was replaced with another | ||
instrument because the earlier instrument was lost or | ||
contained an error that was corrected; | ||
(3) issued to a party affiliated with the issuer; | ||
(4) paid, satisfied, or discharged; | ||
(5) issued in error; | ||
(6) issued without consideration; | ||
(7) issued but there was a failure of consideration; | ||
(8) voided not later than 90 days after issuance for a | ||
valid business reason set forth in a contemporaneous | ||
record; or | ||
(9) issued but not delivered to the third-party payee |
for a sufficient reason recorded within a reasonable time | ||
after issuance. | ||
(d) In asserting a defense under this Section, and subject | ||
to the records retention requirements of Section 15-404, a | ||
putative holder may present evidence of a course of dealing | ||
between the putative holder and the apparent owner. | ||
Section 15-1006. Failure of person examined to retain | ||
records. If a person subject to examination under Section | ||
15-1002 does not retain the records required by Section 15-404, | ||
the administrator may determine the value of property due using | ||
a reasonable method of estimation based on all information | ||
available to the administrator, including extrapolation and | ||
use of statistical sampling when appropriate and necessary, | ||
consistent with examination procedures and standards adopted | ||
under Section 15-1003. A payment made based on estimation under | ||
this Section is a penalty for failure to maintain the records | ||
required by Section 15-404 and does not relieve a person from | ||
an obligation to report and deliver property to a State in | ||
which the holder is domiciled. | ||
Section 15-1007. Report to person whose records were | ||
examined. At the conclusion of an examination under Section | ||
15-1002, unless waived in writing by the person being examined, | ||
the administrator shall provide to the person whose records | ||
were examined a report that specifies: |
(1) the work performed; | ||
(2) the property types reviewed; | ||
(3) the methodology of any estimation technique, | ||
extrapolation, or statistical sampling used in conducting | ||
the examination; | ||
(4) each calculation showing the value of property | ||
determined to be due; and | ||
(5) the findings of the person conducting the | ||
examination. | ||
Section 15-1008. Informal conference during examination. | ||
(a) If a person subject to examination under Section | ||
15-1002 believes the person conducting the examination has made | ||
an unreasonable or unauthorized request or is not proceeding | ||
expeditiously to complete the examination, the person in a | ||
record may request an informal conference with the | ||
administrator. | ||
(b) If a person in a record requests an informal conference | ||
with the administrator, the administrator shall hold the | ||
informal conference not later than 30 days after receiving the | ||
request. For good cause, and after notice in a record to the | ||
person requesting an informal conference, the administrator | ||
may extend the time for the holding of an informal conference. | ||
The administrator may hold the informal conference in person, | ||
by telephone, or by electronic means. | ||
(c) If an informal conference is held under subsection (b), |
not later than 30 days after the conference ends, the | ||
administrator shall provide a response to the person that | ||
requested the conference. | ||
(d) The administrator may deny a request for an informal | ||
conference under this Section if the administrator reasonably | ||
believes that the request was made in bad faith or primarily to | ||
delay the examination. If the administrator denies a request | ||
for an informal conference the denial shall be in a record | ||
provided to the person requesting the informal conference. | ||
Section 15-1009. Administrator's contract with another to | ||
conduct examination. | ||
(a) The administrator may contract with a person to conduct | ||
an examination under this Article. The contract shall be | ||
awarded pursuant to a request for proposals issued in | ||
compliance with the procurement rules of the administrator. | ||
(b) If the administrator contracts with a person under | ||
subsection (a): | ||
(1) the contract may provide for compensation of the | ||
person based on a fixed fee, hourly fee, or contingent fee; | ||
(2) a contingent fee arrangement may not provide for a | ||
payment that exceeds 15% of the amount or value of property | ||
paid or delivered as a result of the examination; and | ||
(3) as authorized in the State Officers and Employees | ||
Money Disposition Act, the administrator may permit the | ||
deduction of fees from property recovered during an |
examination under this Article prior to depositing funds | ||
received under this Act into the Unclaimed Property Trust | ||
Fund. | ||
(c) A contract under subsection (a) is a public record | ||
under the Freedom of Information Act. | ||
Section 15-1010. Report by administrator. As part of the | ||
report required by Section 15 of the State Treasurer Act, the | ||
administrator shall compile and include the following | ||
information about property presumed abandoned for the | ||
preceding fiscal year for the State: | ||
(1) the total amount and value of all property paid or | ||
delivered under this Act to the administrator, separated | ||
into: | ||
(A) the part voluntarily paid or delivered; and | ||
(B) the part paid or delivered as a result of an | ||
examination under Section 15-1002; | ||
(2) the total amount and value of all property paid or | ||
delivered by the administrator to persons that made claims | ||
for property held by the administrator under this Act; | ||
(3) the amounts expended from the State Pensions Fund; | ||
and | ||
(4) such other information as the administrator | ||
believes would be useful or informative. | ||
Section 15-1011. Determination of liability for unreported |
reportable property. If the administrator determines from an | ||
examination conducted under Section 15-1002 that a putative | ||
holder failed or refused to pay or deliver to the administrator | ||
property which is reportable under this Act, the administrator | ||
shall issue a determination of the putative holder's liability | ||
to pay or deliver and give notice in a record to the putative | ||
holder of the determination. | ||
ARTICLE 11. DETERMINATION OF LIABILITY; PUTATIVE HOLDER | ||
REMEDIES | ||
Section 15-1101. Informal conference. | ||
(a) Not later than 30 days after receipt of a notice under | ||
Section 15-1011, the putative holder may request an informal | ||
conference with the administrator to review the determination. | ||
Except as otherwise provided in this Section, the administrator | ||
may designate an employee to act on behalf of the | ||
administrator. | ||
(b) If a putative holder makes a timely request under | ||
subsection (a) for an informal conference: | ||
(1) not later than 30 days after the date of the | ||
request, the administrator shall set the time and place of | ||
the conference; | ||
(2) the administrator shall give the putative holder | ||
notice in a record of the time and place of the conference; | ||
(3) the conference may be held in person, by telephone, |
or by electronic means, as determined by the administrator; | ||
(4) the request tolls the 90-day period under Sections | ||
15-1103 and 15-1104 until notice of a decision under | ||
paragraph (7) has been given to the putative holder or the | ||
putative holder withdraws the request for the conference; | ||
(5) the conference may be postponed, adjourned, and | ||
reconvened as the administrator determines appropriate; | ||
(6) the administrator or administrator's designee with | ||
the approval of the administrator may modify a | ||
determination made under Section 15-1011 or withdraw it; | ||
and | ||
(7) the administrator shall issue a decision in a | ||
record and provide a copy of the record to the putative | ||
holder and examiner not later than 30 days after the | ||
conference ends. | ||
(c) A conference under subsection (b) is not an | ||
administrative remedy and is not a contested case subject to | ||
the Illinois Administrative Procedure Act. An oath is not | ||
required and rules of evidence do not apply in the conference. | ||
(d) At a conference under subsection (b), the putative | ||
holder must be given an opportunity to confer informally with | ||
the administrator and the person that examined the records of | ||
the putative holder to: | ||
(1) discuss the determination made under Section | ||
15-1011; and | ||
(2) present any issue concerning the validity of the |
determination. | ||
(e) If the administrator fails to act within the period | ||
prescribed in subsection (b)(1) or (7), the failure does not | ||
affect a right of the administrator, except that interest does | ||
not accrue on the amount for which the putative holder was | ||
determined to be liable under Section 15-1011 during the period | ||
in which the administrator failed to act until the earlier of: | ||
(1) the date under Section 15-1103 the putative holder | ||
initiates administrative review or files an action under | ||
Section 15-1104; or | ||
(2) 90 days after the putative holder received notice | ||
of the administrator's determination under Section 15-1011 | ||
if no review was initiated under Section 15-1103 and no | ||
action was filed under Section 15-1104. | ||
(f) The administrator may hold an informal conference with | ||
a putative holder about a determination under Section 15-1011 | ||
without a request at any time before the putative holder | ||
initiates administrative review under Section 15-1102. | ||
(g) Interest and penalties under Section 15-1204 continue | ||
to accrue on property not reported, paid, or delivered as | ||
required by this Act after the initiation, and during the | ||
pendency, of an informal conference under this Section. | ||
Section 15-1102. Administrative review. | ||
(a) Not later than 90 days after receiving notice of the | ||
administrator's determination under Section 15-1011, or, if |
applicable and as provided in Section 15-1101(b)(4), after | ||
notice of a decision under 15-1101(b)(7) has been given to the | ||
putative holder or the putative holder has withdrawn the | ||
request for an informal conference, a putative holder may | ||
initiate a contested case under the Illinois Administrative | ||
Procedure Act for review of the administrator's determination. | ||
(b) A final decision in an administrative proceeding | ||
initiated under subsection (a) is subject to judicial review | ||
under the Article III of Code of Civil Procedure. | ||
ARTICLE 12. ENFORCEMENT BY ADMINISTRATOR | ||
Section 15-1201. Judicial action to enforce liability. | ||
(a) If a determination under Section 15-1011 becomes final | ||
and is not subject to administrative or judicial review, the | ||
administrator may commence an action in the Circuit Court of | ||
Sangamon County or Cook County, federal court, or in an | ||
appropriate court of another state to enforce the determination | ||
and secure payment or delivery of past due, unpaid, or | ||
undelivered property. The action must be brought not later than | ||
5 years after the determination becomes final. | ||
(b) In an action under subsection (a), if no court in this | ||
State has jurisdiction over the defendant, the administrator | ||
may commence an action in any court having jurisdiction over | ||
the defendant. |
Section 15-1202. Interstate and international agreement; | ||
cooperation. | ||
(a) Subject to subsection (b), the administrator may: | ||
(1) exchange information with another state or foreign | ||
country relating to property presumed abandoned or | ||
relating to the possible existence of property presumed | ||
abandoned; and | ||
(2) authorize in a record another state or foreign | ||
country or a person acting on behalf of the other state or | ||
country to examine its records of a putative holder as | ||
provided in Article 10. | ||
(b) An exchange or examination under subsection (a) may be | ||
done only if the state or foreign country has confidentiality | ||
and security requirements substantially equivalent to those in | ||
Article 14 or agrees in a record to be bound by this State's | ||
confidentiality and security requirements. | ||
Section 15-1203. Action involving another state or foreign | ||
country. | ||
(a) The administrator may join another state or foreign | ||
country to examine and seek enforcement of this Act against a | ||
putative holder. | ||
(b) On request of another state or foreign country, the | ||
Attorney General may commence an action on behalf of the other | ||
state or country to enforce, in this State, the law of the | ||
other state or country against a putative holder subject to a |
claim by the other state or country. | ||
(c) The administrator may request the official authorized | ||
to enforce the unclaimed property law of another state or | ||
foreign country to commence an action to recover property in | ||
the other state or country on behalf of the administrator. This | ||
state may pay the costs, including reasonable attorney's fees | ||
and expenses, incurred by the other state or foreign country in | ||
an action under this subsection. | ||
(d) The administrator may pursue an action on behalf of | ||
this State to recover property subject to this Act but | ||
delivered to the custody of another state if the administrator | ||
believes the property is subject to the custody of the | ||
administrator. | ||
(e) At the request of the administrator, the Attorney | ||
General may commence an action to recover property on behalf of | ||
the administrator in this State, another state, or a foreign | ||
country. With the written consent of the Attorney General, the | ||
administrator may retain an attorney in this State, another | ||
state, or a foreign country to recover property on behalf of | ||
the administrator in this State, another state, or a foreign | ||
country and may agree to pay attorney's fees based in whole or | ||
in part on a fixed fee, hourly fee, or a percentage of the | ||
amounts or value of property recovered in the action. | ||
(f) Expenses incurred by this State in an action under this | ||
Section may be paid from property received under this Act or | ||
the net proceeds of the property. Expenses paid to recover |
property may not be deducted from the amount that is subject to | ||
a claim under this Act by the owner. | ||
Section 15-1204. Interest and penalty for failure to act in | ||
timely manner. | ||
(a) A holder that fails to report, pay, or deliver property | ||
within the time prescribed by this Act shall pay to the | ||
administrator interest at a rate of 1% per month on the | ||
property or value of the property from the date the property | ||
should have been reported, paid, or delivered to the | ||
administrator until the date reported, paid, or delivered. | ||
(b) Except as otherwise provided in Section 15-1 or | ||
15-1206, the administrator may require a holder that fails to | ||
report, pay, or deliver property within the time prescribed by | ||
this Act to pay to the administrator, in addition to interest | ||
included under subsection (a), a civil penalty of $200 for each | ||
day the duty is not performed, up to a cumulative maximum | ||
amount of $5,000. | ||
(c) A holder who fails to report, pay, or deliver property | ||
within the time prescribed by this Act shall not be required to | ||
pay interest under subsection (a) above or be subject to | ||
penalties under subsection (b) above if the failure to report, | ||
pay, or deliver the property was due to lack of knowledge of | ||
the death that established the period of abandonment under this | ||
Act. |
Section 15-1205. Other civil penalties. | ||
(a) If a holder enters into a contract or other arrangement | ||
for the purpose of evading an obligation under this Act or | ||
otherwise willfully fails to perform a duty imposed on the | ||
holder under this Act, the administrator may require the holder | ||
to pay the administrator, in addition to interest as provided | ||
in subsection (a) of Section 15-1204, a civil penalty of $1,000 | ||
for each day the obligation is evaded or the duty is not | ||
performed, up to a cumulative maximum amount of $25,000, plus | ||
25% of the amount or value of property that should have been | ||
but was not reported, paid, or delivered as a result of the | ||
evasion or failure to perform. | ||
(b) If a holder makes a fraudulent report under this Act, | ||
the administrator may require the holder to pay to the | ||
administrator, in addition to interest under subsection (a) of | ||
Section 15-1204, a civil penalty of $1,000 for each day from | ||
the date the report was made until corrected, up to a | ||
cumulative maximum of $25,000, plus 25% of the amount or value | ||
of any property that should have been reported but was not | ||
included in the report or was underreported. | ||
Section 15-1206. Waiver of interest and penalty. The | ||
administrator: | ||
(1) may waive, in whole or in part, interest under | ||
subsection (a) of Section 15-1204 and penalties under | ||
subsection (b) of Section 15-1204 or Section 15-1; and |
(2) shall waive a penalty under subsection (b) of | ||
Section 15-1204 if the administrator determines that the | ||
holder acted in good faith and without negligence. | ||
ARTICLE 13. AGREEMENT TO LOCATE PROPERTY OF APPARENT OWNER HELD | ||
BY ADMINISTRATOR | ||
Section 15-1301. When agreement to locate property | ||
enforceable. An agreement by an apparent owner and another | ||
person, the primary purpose of which is to locate, deliver, | ||
recover, or assist in the location, delivery, or recovery of | ||
property held by the administrator, is enforceable only if the | ||
agreement: | ||
(1) is in a record that clearly states the nature of | ||
the property and the services to be provided; | ||
(2) is signed by or on behalf of the apparent owner; | ||
and | ||
(3) states the amount or value of the property | ||
reasonably expected to be recovered, computed before and | ||
after a fee or other compensation to be paid to the person | ||
has been deducted. | ||
Section 15-1302. When agreement to locate property void. | ||
(a) Subject to subsection (b), an agreement under Section | ||
15-1301 is void if it is entered into during the period | ||
beginning on the date the property was presumed abandoned under |
this Act and ending 24 months after the payment or delivery of | ||
the property to the administrator. | ||
(b) If a provision in an agreement described in Section | ||
15-1301 applies to mineral proceeds for which compensation is | ||
to be paid to the other person based in whole or in part on a | ||
part of the underlying minerals or mineral proceeds not then | ||
presumed abandoned, the provision is void regardless of when | ||
the agreement was entered into. | ||
(c) An agreement under subsection (a) which provides for | ||
compensation in an amount that is more than 10% of the amount | ||
collected is unenforceable except by the apparent owner. | ||
(d) An apparent owner or the administrator may assert that | ||
an agreement described in this Section is void on a ground | ||
other than it provides for payment of unconscionable | ||
compensation. | ||
(e) A person attempting to collect a contingent fee for | ||
discovering, on behalf of an apparent owner, presumptively | ||
abandoned property must be licensed as a private detective | ||
pursuant to the Private Detective, Private Alarm, Private | ||
Security, Fingerprint Vendor, and Locksmith Act of 2004. | ||
(f) This Section does not apply to an apparent owner's | ||
agreement with an attorney to pursue a claim for recovery of | ||
specifically identified property held by the administrator or | ||
to contest the administrator's denial of a claim for recovery | ||
of the property. |
ARTICLE 14. CONFIDENTIALITY AND SECURITY OF INFORMATION | ||
Section 15-1401. Confidential information. | ||
(a) Except as otherwise provide in this Section, | ||
information that is confidential under law of this State other | ||
than this Act, another state, or the United States, including | ||
"private information" as defined in the Freedom of Information | ||
Act and "personal information" as defined in the Personal | ||
Information Protection Act, continues to be confidential when | ||
disclosed or delivered under this Act to the administrator or | ||
administrator's agent. | ||
(b) Information provided in reports filed pursuant to | ||
Section 15-401, information obtained in the course of an | ||
examination pursuant to Section 15-1002, and the database | ||
required by Section 15-503 is exempt from disclosure under the | ||
Freedom of Information Act. | ||
(c) If reasonably necessary to enforce or implement this | ||
Act, the administrator or the administrator's agent may | ||
disclose confidential information concerning property held by | ||
the administrator or the administrator's agent to: | ||
(1) an apparent owner or the apparent owner's | ||
representative under the Probate Act of 1975, attorney, | ||
other legal representative, or relative; | ||
(2) the representative under the Probate Act of 1975, | ||
other legal representative, relative of a deceased | ||
apparent owner, or a person entitled to inherit from the |
deceased apparent owner; | ||
(3) another department or agency of this State or the | ||
United States; | ||
(4) the person that administers the unclaimed property | ||
law of another state, if the other state accords | ||
substantially reciprocal privileges to the administrator | ||
of this State if the other state is required to maintain | ||
the confidentiality and security of information obtained | ||
in a manner substantially equivalent to Article 14; | ||
(5) a person subject to an examination as required by | ||
Section 15-1004; and | ||
(6) an agent of the administrator. | ||
(b) The administrator may include on the website or in the | ||
database the names and addresses of apparent owners of property | ||
held by the administrator as provided in Section 15-503. The | ||
administrator may include in published notices, printed | ||
publications, telecommunications, the Internet, or other media | ||
and on the website or in the database additional information | ||
concerning the apparent owner's property if the administrator | ||
believes the information will assist in identifying and | ||
returning property to the owner and does not disclose personal | ||
information as defined in the Personal Information Protection | ||
Act. | ||
(c) The administrator and the administrator's agent may not | ||
use confidential information provided to them or in their | ||
possession except as expressly authorized by this Act or |
required by law other than this Act. | ||
Section 15-1402. Confidentiality agreement. A person to be | ||
examined under Section 15-1002 may require, as a condition of | ||
disclosure of the records of the person to be examined, that | ||
the administrator or the administrator's agent execute and | ||
deliver to the person to be examined a confidentiality | ||
agreement that: | ||
(1) is in a form that is reasonably satisfactory to the | ||
administrator; and | ||
(2) requires the person having access to the records to | ||
comply with the provisions of this Article applicable to | ||
the person. | ||
Section 15-1403. No confidential information in notice. | ||
Except as otherwise provided in Sections 15-501 and 15-502, a | ||
holder is not required under this Act to include confidential | ||
information in a notice the holder is required to provide to an | ||
apparent owner under this Act. | ||
Section 15-1404. Security of information. | ||
(a) If a holder is required to include confidential | ||
information in a report to the administrator, the information | ||
must be provided by a secure means. | ||
(b) If confidential information in a record is provided to | ||
and maintained by the administrator or administrator's agent as |
required by this Act, the administrator or agent shall | ||
implement and maintain reasonable security measures to protect | ||
those records from unauthorized access, acquisition, | ||
destruction, use, modification, or disclosure as required by | ||
the Personal Information Protection Act. If a State or federal | ||
law requires the administrator or agent to provide greater | ||
protection to records that contain personal information that | ||
are maintained by the administrator or agent and the | ||
administrator or agent is in compliance with the provisions of | ||
that State or federal law, the administrator or agent is deemed | ||
to be in compliance with the provisions of this subsection. | ||
(c) If there is any breach of the security of the system | ||
data or written material, the administrator and the | ||
administrator's agent shall comply with the notice | ||
requirements of Section 12 of the Personal Information | ||
Protection Act, and shall, if applicable, cooperate with a | ||
holder in complying with the notice requirements of Section 10 | ||
of the Personal Information Protection Act. | ||
(d) The administrator and the administrator's agent shall | ||
either return in a secure manner or destroy in a manner | ||
consistent with the Personal Information Protection Act all | ||
confidential information no longer reasonably needed under | ||
this Act. | ||
ARTICLE 15. MISCELLANEOUS |
Section 15-1501. Uniformity of application and | ||
construction. In applying and construing this uniform Act | ||
consideration must be given to the need to promote uniformity | ||
of the law with respect to its subject matter among states that | ||
enact it. | ||
Section 15-1502. Relation to Electronic Signatures in | ||
Global and National Commerce Act. This Act modifies, limits, or | ||
supersedes the Electronic Signatures in Global and National | ||
Commerce Act, 15 U.S.C. Section 7001 et seq., but does not | ||
modify, limit, or supersede Section 101(c) of that Act, 15 | ||
U.S.C. Section 7001(c), or authorize electronic delivery of any | ||
of the notices described in Section 103(b) of that Act, 15 | ||
U.S.C. Section 7003(b). | ||
Section 15-1503. Transitional provision. | ||
(a) An initial report filed under this Act for property | ||
that was not required to be reported before the effective date | ||
of this Act, but that is required to be reported under this | ||
Act, must include all items of property that would have been | ||
presumed abandoned during the 5-year period preceding the | ||
effective date of this Act as if this Act had been in effect | ||
during that period. | ||
(b) This Act does not relieve a holder of a duty that arose | ||
before the effective date of this Act to report, pay, or | ||
deliver property. Subject to subsection (b) of Section 15-610, |
a holder that did not comply with the law governing unclaimed | ||
property before the effective date of this Act is subject to | ||
applicable provisions for enforcement and penalties in effect | ||
before the effective date of this Act.
| ||
Section 15-1504. Severability. If any provision of this Act | ||
or its application to any person or circumstance is held | ||
invalid, the invalidity does not affect other provisions or | ||
applications of this Act which can be given effect without the | ||
invalid provision or application, and to this end the | ||
provisions of this Act are severable. | ||
ARTICLE 17. AMENDATORY PROVISIONS; UNCLAIMED PROPERTY | ||
(765 ILCS 1025/Act rep.) | ||
Section 17-5. The Uniform Disposition of Unclaimed | ||
Property Act is repealed. | ||
Section 17-10. The Illinois Administrative Procedure Act | ||
is amended by changing Section 1-5 as follows:
| ||
(5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
| ||
Sec. 1-5. Applicability.
| ||
(a) This Act applies to every agency as defined in this | ||
Act.
Beginning January 1, 1978, in case of conflict between the | ||
provisions of
this Act and the Act creating or conferring power |
on an agency, this Act
shall control. If, however, an agency | ||
(or its predecessor in the case of
an agency that has been | ||
consolidated or reorganized) has existing procedures
on July 1, | ||
1977, specifically for contested cases or licensing, those | ||
existing
provisions control, except that this exception | ||
respecting contested
cases and licensing does not apply if the | ||
Act creating or conferring
power on the agency adopts by | ||
express reference the provisions of this
Act. Where the Act | ||
creating or conferring power on an agency
establishes | ||
administrative procedures not covered by this Act, those
| ||
procedures shall remain in effect.
| ||
(b) The provisions of this Act do not apply to (i) | ||
preliminary
hearings, investigations, or practices where no | ||
final determinations
affecting State funding are made by the | ||
State Board of Education, (ii) legal
opinions issued under | ||
Section 2-3.7 of the School Code, (iii) as to State
colleges | ||
and universities, their disciplinary and grievance | ||
proceedings,
academic irregularity and capricious grading | ||
proceedings, and admission
standards and procedures, and (iv) | ||
the class specifications for positions
and individual position | ||
descriptions prepared and maintained under the
Personnel Code. | ||
Those class specifications shall, however, be made
reasonably | ||
available to the public for inspection and copying. The
| ||
provisions of this Act do not apply to hearings under Section | ||
20 of the
Uniform Disposition of Unclaimed Property Act.
| ||
(c) Section 5-35 of this Act relating to procedures for |
rulemaking
does not apply to the following:
| ||
(1) Rules adopted by the Pollution Control Board that, | ||
in accordance
with Section 7.2 of the Environmental | ||
Protection Act, are identical in
substance to federal | ||
regulations or amendments to those regulations
| ||
implementing the following: Sections 3001, 3002, 3003, | ||
3004, 3005, and 9003
of the Solid Waste Disposal Act; | ||
Section 105 of the Comprehensive Environmental
Response, | ||
Compensation, and Liability Act of 1980; Sections 307(b), | ||
307(c),
307(d), 402(b)(8), and 402(b)(9) of the Federal | ||
Water Pollution Control
Act; Sections 1412(b), 1414(c), | ||
1417(a), 1421, and 1445(a) of the Safe
Drinking Water Act; | ||
and Section 109 of the Clean Air Act.
| ||
(2) Rules adopted by the Pollution Control Board that | ||
establish or
amend standards for the emission of | ||
hydrocarbons and carbon monoxide from
gasoline powered | ||
motor vehicles subject to inspection under the Vehicle | ||
Emissions Inspection Law of 2005 or its predecessor laws.
| ||
(3) Procedural rules adopted by the Pollution Control | ||
Board governing
requests for exceptions under Section 14.2 | ||
of the Environmental Protection Act.
| ||
(4) The Pollution Control Board's grant, pursuant to an
| ||
adjudicatory determination, of an adjusted standard for | ||
persons who can
justify an adjustment consistent with | ||
subsection (a) of Section 27 of
the Environmental | ||
Protection Act.
|
(4.5) The Pollution Control Board's adoption of | ||
time-limited water quality standards under Section 38.5 of | ||
the Environmental Protection Act. | ||
(5) Rules adopted by the Pollution Control Board that | ||
are identical in
substance to the regulations adopted by | ||
the Office of the State Fire
Marshal under clause (ii) of | ||
paragraph (b) of subsection (3) of Section 2
of the | ||
Gasoline Storage Act.
| ||
(d) Pay rates established under Section 8a of the Personnel | ||
Code
shall be amended or repealed pursuant to the process set | ||
forth in Section
5-50 within 30 days after it becomes necessary | ||
to do so due to a conflict
between the rates and the terms of a | ||
collective bargaining agreement
covering the compensation of | ||
an employee subject to that Code.
| ||
(e) Section 10-45 of this Act shall not apply to any | ||
hearing, proceeding,
or investigation conducted under Section | ||
13-515 of the Public Utilities Act.
| ||
(f) Article 10 of this Act does not apply to any hearing, | ||
proceeding, or
investigation conducted by the State Council for | ||
the State of Illinois created
under Section 3-3-11.05 of the | ||
Unified Code of Corrections or by the Interstate
Commission for | ||
Adult Offender Supervision created under the
Interstate | ||
Compact for Adult Offender Supervision or by the Interstate | ||
Commission for Juveniles created under the Interstate Compact | ||
for Juveniles.
| ||
(g) This Act is subject to the provisions of Article XXI of
|
the Public Utilities Act. To the extent that any provision of
| ||
this Act conflicts with the provisions of that Article XXI, the
| ||
provisions of that Article XXI control.
| ||
(Source: P.A. 98-463, eff. 8-16-13; 99-937, eff. 2-24-17.)
| ||
Section 17-15. The Freedom of Information Act is amended by | ||
changing Section 7.5 as follows: | ||
(5 ILCS 140/7.5) | ||
Sec. 7.5. Statutory exemptions. To the extent provided for | ||
by the statutes referenced below, the following shall be exempt | ||
from inspection and copying: | ||
(a) All information determined to be confidential | ||
under Section 4002 of the Technology Advancement and | ||
Development Act. | ||
(b) Library circulation and order records identifying | ||
library users with specific materials under the Library | ||
Records Confidentiality Act. | ||
(c) Applications, related documents, and medical | ||
records received by the Experimental Organ Transplantation | ||
Procedures Board and any and all documents or other records | ||
prepared by the Experimental Organ Transplantation | ||
Procedures Board or its staff relating to applications it | ||
has received. | ||
(d) Information and records held by the Department of | ||
Public Health and its authorized representatives relating |
to known or suspected cases of sexually transmissible | ||
disease or any information the disclosure of which is | ||
restricted under the Illinois Sexually Transmissible | ||
Disease Control Act. | ||
(e) Information the disclosure of which is exempted | ||
under Section 30 of the Radon Industry Licensing Act. | ||
(f) Firm performance evaluations under Section 55 of | ||
the Architectural, Engineering, and Land Surveying | ||
Qualifications Based Selection Act. | ||
(g) Information the disclosure of which is restricted | ||
and exempted under Section 50 of the Illinois Prepaid | ||
Tuition Act. | ||
(h) Information the disclosure of which is exempted | ||
under the State Officials and Employees Ethics Act, and | ||
records of any lawfully created State or local inspector | ||
general's office that would be exempt if created or | ||
obtained by an Executive Inspector General's office under | ||
that Act. | ||
(i) Information contained in a local emergency energy | ||
plan submitted to a municipality in accordance with a local | ||
emergency energy plan ordinance that is adopted under | ||
Section 11-21.5-5 of the Illinois Municipal Code. | ||
(j) Information and data concerning the distribution | ||
of surcharge moneys collected and remitted by wireless | ||
carriers under the Wireless Emergency Telephone Safety | ||
Act. |
(k) Law enforcement officer identification information | ||
or driver identification information compiled by a law | ||
enforcement agency or the Department of Transportation | ||
under Section 11-212 of the Illinois Vehicle Code. | ||
(l) Records and information provided to a residential | ||
health care facility resident sexual assault and death | ||
review team or the Executive Council under the Abuse | ||
Prevention Review Team Act. | ||
(m) Information provided to the predatory lending | ||
database created pursuant to Article 3 of the Residential | ||
Real Property Disclosure Act, except to the extent | ||
authorized under that Article. | ||
(n) Defense budgets and petitions for certification of | ||
compensation and expenses for court appointed trial | ||
counsel as provided under Sections 10 and 15 of the Capital | ||
Crimes Litigation Act. This subsection (n) shall apply | ||
until the conclusion of the trial of the case, even if the | ||
prosecution chooses not to pursue the death penalty prior | ||
to trial or sentencing. | ||
(o) Information that is prohibited from being | ||
disclosed under Section 4 of the Illinois Health and | ||
Hazardous Substances Registry Act. | ||
(p) Security portions of system safety program plans, | ||
investigation reports, surveys, schedules, lists, data, or | ||
information compiled, collected, or prepared by or for the | ||
Regional Transportation Authority under Section 2.11 of |
the Regional Transportation Authority Act or the St. Clair | ||
County Transit District under the Bi-State Transit Safety | ||
Act. | ||
(q) Information prohibited from being disclosed by the | ||
Personnel Records Review Act. | ||
(r) Information prohibited from being disclosed by the | ||
Illinois School Student Records Act. | ||
(s) Information the disclosure of which is restricted | ||
under Section 5-108 of the Public Utilities Act.
| ||
(t) All identified or deidentified health information | ||
in the form of health data or medical records contained in, | ||
stored in, submitted to, transferred by, or released from | ||
the Illinois Health Information Exchange, and identified | ||
or deidentified health information in the form of health | ||
data and medical records of the Illinois Health Information | ||
Exchange in the possession of the Illinois Health | ||
Information Exchange Authority due to its administration | ||
of the Illinois Health Information Exchange. The terms | ||
"identified" and "deidentified" shall be given the same | ||
meaning as in the Health Insurance Portability and | ||
Accountability Act of 1996, Public Law 104-191, or any | ||
subsequent amendments thereto, and any regulations | ||
promulgated thereunder. | ||
(u) Records and information provided to an independent | ||
team of experts under Brian's Law. | ||
(v) Names and information of people who have applied |
for or received Firearm Owner's Identification Cards under | ||
the Firearm Owners Identification Card Act or applied for | ||
or received a concealed carry license under the Firearm | ||
Concealed Carry Act, unless otherwise authorized by the | ||
Firearm Concealed Carry Act; and databases under the | ||
Firearm Concealed Carry Act, records of the Concealed Carry | ||
Licensing Review Board under the Firearm Concealed Carry | ||
Act, and law enforcement agency objections under the | ||
Firearm Concealed Carry Act. | ||
(w) Personally identifiable information which is | ||
exempted from disclosure under subsection (g) of Section | ||
19.1 of the Toll Highway Act. | ||
(x) Information which is exempted from disclosure | ||
under Section 5-1014.3 of the Counties Code or Section | ||
8-11-21 of the Illinois Municipal Code. | ||
(y) Confidential information under the Adult | ||
Protective Services Act and its predecessor enabling | ||
statute, the Elder Abuse and Neglect Act, including | ||
information about the identity and administrative finding | ||
against any caregiver of a verified and substantiated | ||
decision of abuse, neglect, or financial exploitation of an | ||
eligible adult maintained in the Registry established | ||
under Section 7.5 of the Adult Protective Services Act. | ||
(z) Records and information provided to a fatality | ||
review team or the Illinois Fatality Review Team Advisory | ||
Council under Section 15 of the Adult Protective Services |
Act. | ||
(aa) Information which is exempted from disclosure | ||
under Section 2.37 of the Wildlife Code. | ||
(bb) Information which is or was prohibited from | ||
disclosure by the Juvenile Court Act of 1987. | ||
(cc) Recordings made under the Law Enforcement | ||
Officer-Worn Body Camera Act, except to the extent | ||
authorized under that Act. | ||
(dd) Information that is prohibited from being | ||
disclosed under Section 45 of the Condominium and Common | ||
Interest Community Ombudsperson Act. | ||
(ee) (dd) Information that is exempted from disclosure | ||
under Section 30.1 of the Pharmacy Practice Act. | ||
(ff) Information that is exempted from disclosure | ||
under the Revised Uniform Unclaimed Property Act. | ||
(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, | ||
eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14; | ||
99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16; | ||
99-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff. | ||
8-19-16; revised 9-1-16.) | ||
Section 17-20. The State Comptroller Act is amended by | ||
changing Section 9 as follows:
| ||
(15 ILCS 405/9) (from Ch. 15, par. 209)
| ||
Sec. 9. Warrants; vouchers; preaudit.
|
(a) No payment may be made from
public funds held by the | ||
State Treasurer in or outside of the State
treasury, except by | ||
warrant drawn by the Comptroller and presented by
him to the | ||
treasurer to be countersigned except for payments made pursuant
| ||
to Section 9.03 or 9.05 of this Act.
| ||
(b) No warrant for the payment of money by the State | ||
Treasurer may be
drawn by the Comptroller without the | ||
presentation of itemized vouchers
indicating that the | ||
obligation or expenditure is pursuant to law and
authorized, | ||
and authorizing the Comptroller to order payment.
| ||
(b-1) An itemized voucher for under $5 that is presented to | ||
the Comptroller for payment shall not be paid except through | ||
electronic funds transfer. This subsection (b-1) does not apply | ||
to (i) vouchers presented by the legislative branch of State | ||
government, (ii) vouchers presented by the State Treasurer's | ||
Office for the payment of unclaimed property claims authorized | ||
under the Revised Uniform Disposition of Unclaimed Property | ||
Act, or (iii) vouchers presented by the Department of Revenue | ||
for the payment of refunds of taxes administered by the | ||
Department. | ||
(c) The Comptroller shall examine each voucher required by | ||
law to be filed
with him and determine whether unencumbered | ||
appropriations or unencumbered
obligational or expenditure | ||
authority other than by appropriation are
legally available to | ||
incur the obligation or to make the expenditure of public
| ||
funds. If he determines that
unencumbered appropriations or |
other obligational or expenditure
authority are not available | ||
from which to incur the obligation or make
the expenditure, the | ||
Comptroller shall refuse to draw a warrant.
| ||
(d) The Comptroller shall examine each voucher and all | ||
other documentation
required to accompany the voucher, and | ||
shall ascertain whether the voucher
and documentation meet all | ||
requirements established by or pursuant to law.
If the | ||
Comptroller determines that the voucher and documentation do | ||
not
meet applicable requirements established by or pursuant to | ||
law, he shall
refuse to draw a warrant. As used in this | ||
Section, "requirements established
by or pursuant to law" | ||
includes statutory enactments and requirements established
by | ||
rules and regulations adopted pursuant to this Act.
| ||
(e) Prior to drawing a warrant, the Comptroller may review | ||
the voucher,
any documentation accompanying the voucher, and | ||
any other documentation
related to the transaction on file with | ||
him, and determine if the transaction
is in accordance with the | ||
law. If based on his review the Comptroller has
reason to | ||
believe that such transaction is not in accordance with the | ||
law,
he shall refuse to draw a warrant.
| ||
(f) Where the Comptroller refuses to draw a warrant | ||
pursuant to this Section,
he shall maintain separate records of | ||
such transactions.
| ||
(g) State agencies shall have the principal responsibility | ||
for the preaudit
of their encumbrances, expenditures, and other | ||
transactions as otherwise
required by law.
|
(Source: P.A. 97-969, eff. 8-16-12; 97-1142, eff. 12-28-12; | ||
98-421, eff. 8-16-13.)
| ||
Section 17-25. The State Treasurer Act is amended by | ||
changing Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:
| ||
(15 ILCS 505/0.02)
| ||
Sec. 0.02. Transfer of powers. The rights, powers, duties, | ||
and functions vested in the Department of
Financial | ||
Institutions to administer the Uniform Disposition of | ||
Unclaimed
Property Act (superseded by the Revised Uniform | ||
Unclaimed Property Act) are transferred to the State Treasurer | ||
on July 1, 1999; provided,
however, that the rights, powers, | ||
duties, and functions
involving the examination of the records | ||
of any person that the State Treasurer
has reason to believe | ||
has failed to report properly under this Act shall be
| ||
transferred to the Office of Banks and Real Estate if the | ||
person is
regulated by the Office of Banks and Real Estate | ||
under the Illinois Banking
Act, the Corporate Fiduciary Act, | ||
the Foreign Banking Office Act, the Illinois
Savings and Loan | ||
Act of 1985, or the Savings Bank Act
and shall be retained by | ||
the Department of Financial Institutions if the
person is doing | ||
business in the State under the supervision of the Department
| ||
of Financial Institutions, the National Credit Union | ||
Administration,
the Office of Thrift Supervision, or the | ||
Comptroller of the Currency.
|
(Source: P.A. 91-16, eff. 6-4-99.)
| ||
(15 ILCS 505/0.03)
| ||
Sec. 0.03. Transfer of personnel.
| ||
(a) Except as provided in subsection (b), personnel | ||
employed by the
Department of Financial Institutions on June | ||
30, 1999 to perform duties
pertaining to the administration of | ||
the Uniform Disposition of Unclaimed
Property
Act (superseded | ||
by the Revised Uniform Unclaimed Property Act) are transferred | ||
to the State Treasurer on July 1, 1999.
| ||
(b) In the case of a person employed by the Department of | ||
Financial
Institutions to perform both duties pertaining to the | ||
administration of the Uniform Disposition of Unclaimed | ||
Property Act (superseded by the Revised Uniform Unclaimed | ||
Property Act) and duties pertaining to a
function retained by | ||
the Department of Financial Institutions, the State
Treasurer, | ||
in consultation with the Director of Financial Institutions, | ||
shall
determine whether to transfer the employee to the Office | ||
of the State
Treasurer; until this determination has been made, | ||
the transfer shall not take
effect.
| ||
(c) The rights of State employees, the State, and its | ||
agencies under the
Personnel Code and applicable collective | ||
bargaining agreements and retirement
plans are not affected by | ||
this amendatory Act of 1999, except that all
positions | ||
transferred to the State Treasurer shall be subject to the | ||
State
Treasurer Employment Code effective July 1, 2000.
|
All transferred employees who are members of
collective | ||
bargaining units shall retain their seniority, continuous | ||
service,
salary, and accrued benefits. During the pendency of | ||
the existing collective
bargaining agreement, the rights | ||
provided for under that agreement and
memoranda and supplements | ||
to that agreement, including but not limited to, the
rights of | ||
employees performing duties pertaining to the administration | ||
of the
Uniform Disposition of Unclaimed Property Act | ||
(superseded by the Revised Uniform Unclaimed Property Act) to | ||
positions in other State
agencies and the right of employees in | ||
other State agencies covered by the
agreement to positions | ||
performing duties pertaining to the administration of
the | ||
Uniform Disposition of Unclaimed Property Act (superseded by | ||
the Revised Uniform Unclaimed Property Act) , shall not be | ||
abridged.
| ||
The State Treasurer shall
continue to honor during their | ||
pendency all bargaining agreements
in effect at the time of the | ||
transfer and to recognize all collective
bargaining | ||
representatives for the employees who perform or will perform
| ||
functions transferred by this amendatory Act of 1999. For all | ||
purposes with
respect to the management of the existing | ||
agreement and the
negotiation and management of any successor | ||
agreements, the State Treasurer
shall be deemed to
be the | ||
employer of employees who perform or will perform functions | ||
transferred
to the Office of the State Treasurer by
this | ||
amendatory Act of 1999; provided that the Illinois Department |
of Central
Management Services shall be a party to any
| ||
grievance or arbitration proceeding held pursuant to the | ||
provisions of the
collective bargaining agreement which | ||
involves the movement
of employees from the Office of the State | ||
Treasurer to an
agency under the jurisdiction of the Governor | ||
covered by the agreement.
| ||
(Source: P.A. 91-16, eff. 6-4-99.)
| ||
(15 ILCS 505/0.04)
| ||
Sec. 0.04. Transfer of property.
| ||
(a) Except as provided in subsection (b), all real and | ||
personal property,
including but not limited to all books, | ||
records, and documents, and all
unexpended appropriations and | ||
pending business
pertaining to the administration of the | ||
Uniform Disposition of Unclaimed
Property Act (superseded by | ||
the Revised Uniform Unclaimed Property Act) shall be | ||
transferred and delivered to the State Treasurer
effective July | ||
1, 1999.
| ||
(b) In the case of books, records, or documents that | ||
pertain both to
the administration of the Uniform Disposition | ||
of Unclaimed Property Act (superseded by the Revised Uniform | ||
Unclaimed Property Act) and to
a function retained by the | ||
Department of Financial Institutions, the State
Treasurer, in | ||
consultation with the Director of Financial Institutions, | ||
shall
determine whether the books, records, or documents shall | ||
be transferred,
copied, or left with the Department of |
Financial Institutions; until this
determination has been | ||
made, the transfer shall not take effect.
| ||
In the case of property or an unexpended appropriation that | ||
pertains both to
the administration of the Uniform Disposition | ||
of Unclaimed Property Act (superseded by the Revised Uniform | ||
Unclaimed Property Act) and to
a function retained by the | ||
Department of Financial Institutions, the State
Treasurer, in | ||
consultation with the Director of Financial Institutions, | ||
shall
determine whether the property or unexpended | ||
appropriation shall be
transferred, divided, or left with the | ||
Department of Financial Institutions;
until this determination | ||
has been made (and, in the case of an unexpended
appropriation, | ||
notice of the determination has been filed with the State
| ||
Comptroller), the transfer shall not take effect.
| ||
(Source: P.A. 91-16, eff. 6-4-99.)
| ||
(15 ILCS 505/0.05)
| ||
Sec. 0.05. Rules and standards.
| ||
(a) The rules and standards of the Department of Financial | ||
Institutions that
are in effect on June 30, 1999 and pertain to | ||
the administration of the
Uniform Disposition of Unclaimed | ||
Property Act (superseded by the Revised Uniform Unclaimed | ||
Property Act) shall become the rules and
standards of the State | ||
Treasurer on July 1, 1999 and shall continue in
effect until | ||
amended or repealed by the State Treasurer.
| ||
(b) Any rules pertaining to the administration of the |
Uniform Disposition of
Unclaimed Property Act (superseded by | ||
the Revised Uniform Unclaimed Property Act) that have been | ||
proposed by the Department of Financial
Institutions but have | ||
not taken effect or been finally adopted by June 30,
1999 shall | ||
become proposed rules of the State Treasurer on July 1, 1999, | ||
and
any rulemaking procedures that have already been completed | ||
by the Department of
Financial Institutions need not be | ||
repeated.
| ||
(c) As soon as practical after July 1, 1999, the State | ||
Treasurer shall
revise and clarify the rules transferred to it | ||
under this amendatory Act of
1999 to reflect the reorganization | ||
of rights, powers, duties, and functions
effected by this | ||
amendatory Act of 1999 using the procedures for recodification
| ||
of rules available under the Illinois Administrative Procedure | ||
Act, except that
existing title, part, and section numbering | ||
for the affected rules may be
retained.
| ||
(d) As soon as practical after July 1, 1999, the Office of | ||
Banks and Real
Estate and the Office of the State Treasurer | ||
shall jointly promulgate rules to
reflect the transfer of | ||
examination functions to the Office of Banks and Real
Estate | ||
under this amendatory Act of 1999 using the procedures | ||
available under
the Illinois Administrative Procedure Act.
| ||
(e) As soon as practical after July 1, 1999, the Department | ||
of Financial
Institutions and the Office of the State Treasurer | ||
shall jointly promulgate
rules to reflect the retention of | ||
examination functions by the Department of
Financial |
Institutions under this amendatory Act of 1999 using the | ||
procedures
available under the Illinois Administrative | ||
Procedure Act.
| ||
(Source: P.A. 91-16, eff. 6-4-99.)
| ||
(15 ILCS 505/0.06)
| ||
Sec. 0.06. Savings provisions.
| ||
(a) The rights, powers, duties, and functions transferred | ||
to the State
Treasurer or the Commissioner of Banks and Real | ||
Estate by this amendatory Act
of 1999 shall be vested in and | ||
exercised by
the State Treasurer or the Commissioner of Banks | ||
and Real Estate subject to the
provisions of this amendatory | ||
Act of 1999.
An act done by the State Treasurer or the | ||
Commissioner of Banks and Real Estate
or an officer, employee, | ||
or agent of the
State Treasurer or the Commissioner of Banks | ||
and Real Estate in the exercise of
the transferred rights, | ||
powers, duties, or
functions shall have the same legal effect | ||
as if done by the Department of
Financial Institutions or an | ||
officer, employee, or agent of the Department of
Financial | ||
Institutions prior to the effective date of this amendatory Act | ||
of
1999.
| ||
(b) The transfer of rights, powers, duties, and functions | ||
to the State
Treasurer or the Commissioner of Banks and Real | ||
Estate under this amendatory
Act of 1999 does not invalidate | ||
any previous
action taken by or in respect to the Department of | ||
Financial Institutions or
its officers, employees, or agents. |
References to the Department of Financial
Institutions or its | ||
officers, employees or agents in any document, contract,
| ||
agreement, or law shall, in
appropriate contexts, be deemed to | ||
refer to the State Treasurer or the
Commissioner of Banks and | ||
Real Estate or the officers, employees, or
agents of the State | ||
Treasurer or the Commissioner of Banks and Real Estate.
| ||
(c) The transfer of rights, powers, duties, and functions | ||
from the
Department of Financial Institutions to the State
| ||
Treasurer or the Commissioner of Banks and Real Estate under | ||
this amendatory
Act of 1999 does not affect the rights,
| ||
obligations, or duties of any other person or entity, including | ||
any civil or
criminal penalties
applicable thereto, arising out | ||
of those transferred rights, powers, duties,
and functions.
| ||
(d) With respect to matters that pertain to a right, power, | ||
duty, or
function transferred to the State Treasurer under this | ||
amendatory Act of 1999:
| ||
(1) Beginning July 1, 1999, any report or notice that | ||
was previously
required to be made or given by any person | ||
to the Department of Financial
Institutions or any of its | ||
officers, employees, or agents under the Uniform
| ||
Disposition of Unclaimed Property Act (superseded by the | ||
Revised Uniform Unclaimed Property Act) or rules | ||
promulgated pursuant to that Act
shall be made or given in | ||
the same manner to the State Treasurer or his or her
| ||
appropriate officer, employee, or agent.
| ||
(2) Beginning July 1, 1999, any document that was |
previously required
to
be furnished or served by any person | ||
to or upon the Department of Financial
Institutions or any | ||
of its officers, employees, or agents under the Uniform
| ||
Disposition of Unclaimed Property Act (superseded by the | ||
Revised Uniform Unclaimed Property Act) or rules | ||
promulgated pursuant to that Act
shall be furnished or | ||
served in the same manner to or upon the State Treasurer
or | ||
his or her appropriate officer, employee, or agent.
| ||
(e) This amendatory Act of 1999 does not affect any act | ||
done, ratified, or
canceled, any right occurring or | ||
established, or any action or proceeding had
or commenced in an | ||
administrative, civil, or criminal cause before July 1, 1999. | ||
Any such action or proceeding that pertains to the Uniform | ||
Disposition
of Unclaimed Property Act (superseded by the | ||
Revised Uniform Unclaimed Property Act) or rules promulgated | ||
pursuant to that Act and that is
pending on that date may be | ||
prosecuted, defended, or continued by the State
Treasurer.
| ||
(Source: P.A. 91-16, eff. 6-4-99.)
| ||
Section 17-30. The Financial Institutions Code is amended | ||
by changing Sections 7 and 18.1 as follows:
| ||
(20 ILCS 1205/7) (from Ch. 17, par. 108)
| ||
Sec. 7.
The provisions of "The Illinois Administrative | ||
Procedure
Act", as now or hereafter amended, are hereby | ||
expressly adopted and
incorporated herein as though a part of |
this Act, and shall apply to all
administrative rules and | ||
procedures of the Director and the Department
of Financial | ||
Institutions under this Act, except that the provisions of
the | ||
Administrative Procedure Act regarding contested cases shall | ||
not
apply to actions of the Director under Section 15.1 of "An | ||
Act in
relation to the definition, licensing and regulation of | ||
community
currency exchanges and ambulatory currency | ||
exchanges, and the operators
and employees thereof, and to make | ||
an appropriation therefor, and to
provide penalties and | ||
remedies for the violation thereof", approved June
30, 1943, as | ||
amended, or Sections 8 and 61 of "The Illinois
Credit Union | ||
Act" , or to
hearings under Section 20 of the "Uniform | ||
Disposition of Unclaimed
Property Act" .
| ||
(Source: P.A. 81-329.)
| ||
(20 ILCS 1205/18.1)
| ||
Sec. 18.1.
Transfer of administration of Uniform | ||
Disposition of Unclaimed
Property Act to State Treasurer. The | ||
rights, powers, duties, and functions
vested in the Department | ||
of Financial Institutions to administer the Uniform
| ||
Disposition of Unclaimed Property Act (superseded by the | ||
Revised Uniform Unclaimed Property Act) are transferred to the | ||
State Treasurer on
July 1, 1999 in accordance with Sections | ||
0.02 through 0.06 of the State
Treasurer Act; provided, | ||
however, that the rights, powers, duties, and
functions | ||
involving the examination of the records of any person that the |
State
Treasurer has reason to believe has failed to report | ||
properly under this Act
shall be transferred to the Office of | ||
Banks and Real Estate if the person is
regulated by the Office | ||
of Banks and Real Estate under the Illinois Banking
Act, the | ||
Corporate Fiduciary Act, the Foreign Banking Office Act, the | ||
Illinois
Savings and Loan Act of 1985, or the Savings Bank Act | ||
and shall be retained by
the Department of Financial | ||
Institutions if the person is doing business in the
State under | ||
the supervision of the Department of Financial Institutions, | ||
the
National Credit Union Administration, the Office of Thrift | ||
Supervision, or the
Comptroller of the Currency.
| ||
(Source: P.A. 91-16, eff. 6-4-99.)
| ||
Section 17-35. The State Finance Act is amended by changing | ||
Sections 6b-1 and 8.12 as follows:
| ||
(30 ILCS 105/6b-1) (from Ch. 127, par. 142b1)
| ||
Sec. 6b-1.
There shall be paid into the State Pensions Fund | ||
the funds and
proceeds from the sale of abandoned property as | ||
provided in Section 18 of
the Revised Uniform "Uniform | ||
Disposition of Unclaimed Property Act ", enacted by the
| ||
Seventy-second General Assembly .
| ||
(Source: Laws 1961, p. 3423.)
| ||
(30 ILCS 105/8.12)
(from Ch. 127, par. 144.12)
| ||
Sec. 8.12. State Pensions Fund.
|
(a) The moneys in the State Pensions Fund shall be used | ||
exclusively
for the administration of the Revised Uniform | ||
Disposition of Unclaimed Property Act and
for the expenses | ||
incurred by the Auditor General for administering the | ||
provisions of Section 2-8.1 of the Illinois State Auditing Act | ||
and for operational expenses of the Office of the State | ||
Treasurer and for the funding of the unfunded liabilities of | ||
the designated retirement systems. Beginning in State fiscal | ||
year 2018, payments to the designated retirement systems under | ||
this Section shall be in addition to, and not in lieu of, any | ||
State contributions required under the Illinois Pension Code.
| ||
"Designated retirement systems" means:
| ||
(1) the State Employees' Retirement System of | ||
Illinois;
| ||
(2) the Teachers' Retirement System of the State of | ||
Illinois;
| ||
(3) the State Universities Retirement System;
| ||
(4) the Judges Retirement System of Illinois; and
| ||
(5) the General Assembly Retirement System.
| ||
(b) Each year the General Assembly may make appropriations | ||
from
the State Pensions Fund for the administration of the | ||
Revised Uniform Disposition of
Unclaimed Property Act.
| ||
Each month, the Commissioner of the Office of Banks and | ||
Real Estate shall
certify to the State Treasurer the actual | ||
expenditures that the Office of
Banks and Real Estate incurred | ||
conducting unclaimed property examinations under
the Uniform |
Disposition of Unclaimed Property Act during the immediately
| ||
preceding month. Within a reasonable
time following the | ||
acceptance of such certification by the State Treasurer, the
| ||
State Treasurer shall pay from its appropriation from the State | ||
Pensions Fund
to the Bank and Trust Company Fund, the Savings | ||
Bank Regulatory Fund, and the Residential Finance
Regulatory | ||
Fund an amount equal to the expenditures incurred by each Fund | ||
for
that month.
| ||
Each month, the Director of Financial Institutions shall
| ||
certify to the State Treasurer the actual expenditures that the | ||
Department of
Financial Institutions incurred conducting | ||
unclaimed property examinations
under the Uniform Disposition | ||
of Unclaimed Property Act during the immediately
preceding | ||
month. Within a reasonable time following the acceptance of | ||
such
certification by the State Treasurer, the State Treasurer | ||
shall pay from its
appropriation from the State Pensions Fund
| ||
to the Financial Institution Fund and the Credit Union Fund
an | ||
amount equal to the expenditures incurred by each Fund for
that | ||
month.
| ||
(c) As soon as possible after the effective date of this | ||
amendatory Act of the 93rd General Assembly, the General | ||
Assembly shall appropriate from the State Pensions Fund (1) to | ||
the State Universities Retirement System the amount certified | ||
under Section 15-165 during the prior year, (2) to the Judges | ||
Retirement System of Illinois the amount certified under | ||
Section 18-140 during the prior year, and (3) to the General |
Assembly Retirement System the amount certified under Section | ||
2-134 during the prior year as part of the required
State | ||
contributions to each of those designated retirement systems; | ||
except that amounts appropriated under this subsection (c) in | ||
State fiscal year 2005 shall not reduce the amount in the State | ||
Pensions Fund below $5,000,000. If the amount in the State | ||
Pensions Fund does not exceed the sum of the amounts certified | ||
in Sections 15-165, 18-140, and 2-134 by at least $5,000,000, | ||
the amount paid to each designated retirement system under this | ||
subsection shall be reduced in proportion to the amount | ||
certified by each of those designated retirement systems.
| ||
(c-5) For fiscal years 2006 through 2017, the General | ||
Assembly shall appropriate from the State Pensions Fund to the | ||
State Universities Retirement System the amount estimated to be | ||
available during the fiscal year in the State Pensions Fund; | ||
provided, however, that the amounts appropriated under this | ||
subsection (c-5) shall not reduce the amount in the State | ||
Pensions Fund below $5,000,000.
| ||
(c-6) For fiscal year 2018 and each fiscal year thereafter, | ||
as soon as may be practical after any money is deposited into | ||
the State Pensions Fund from the Unclaimed Property Trust Fund, | ||
the State Treasurer shall apportion the deposited amount among | ||
the designated retirement systems as defined in subsection (a) | ||
to reduce their actuarial reserve deficiencies. The State | ||
Comptroller and State Treasurer shall pay the apportioned | ||
amounts to the designated retirement systems to fund the |
unfunded liabilities of the designated retirement systems. The | ||
amount apportioned to each designated retirement system shall | ||
constitute a portion of the amount estimated to be available | ||
for appropriation from the State Pensions Fund that is the same | ||
as that retirement system's portion of the total actual reserve | ||
deficiency of the systems, as determined annually by the | ||
Governor's Office of Management and Budget at the request of | ||
the State Treasurer. The amounts apportioned under this | ||
subsection shall not reduce the amount in the State Pensions | ||
Fund below $5,000,000. | ||
(d) The
Governor's Office of Management and Budget shall | ||
determine the individual and total
reserve deficiencies of the | ||
designated retirement systems. For this purpose,
the
| ||
Governor's Office of Management and Budget shall utilize the | ||
latest available audit and actuarial
reports of each of the | ||
retirement systems and the relevant reports and
statistics of | ||
the Public Employee Pension Fund Division of the Department of
| ||
Insurance.
| ||
(d-1) As soon as practicable after the effective date of | ||
this
amendatory Act of the 93rd General Assembly, the | ||
Comptroller shall
direct and the Treasurer shall transfer from | ||
the State Pensions Fund to
the General Revenue Fund, as funds | ||
become available, a sum equal to the
amounts that would have | ||
been paid
from the State Pensions Fund to the Teachers' | ||
Retirement System of the State
of Illinois,
the State | ||
Universities Retirement System, the Judges Retirement
System |
of Illinois, the
General Assembly Retirement System, and the | ||
State Employees'
Retirement System
of Illinois
after the | ||
effective date of this
amendatory Act during the remainder of | ||
fiscal year 2004 to the
designated retirement systems from the | ||
appropriations provided for in
this Section if the transfers | ||
provided in Section 6z-61 had not
occurred. The transfers | ||
described in this subsection (d-1) are to
partially repay the | ||
General Revenue Fund for the costs associated with
the bonds | ||
used to fund the moneys transferred to the designated
| ||
retirement systems under Section 6z-61.
| ||
(e) The changes to this Section made by this amendatory Act | ||
of 1994 shall
first apply to distributions from the Fund for | ||
State fiscal year 1996.
| ||
(Source: P.A. 98-24, eff. 6-19-13; 98-463, eff. 8-16-13; | ||
98-674, eff. 6-30-14; 98-1081, eff. 1-1-15; 99-8, eff. 7-9-15; | ||
99-78, eff. 7-20-15; 99-523, eff. 6-30-16.)
| ||
Section 17-40. The State Officers and Employees Money | ||
Disposition Act is amended by changing Section 2 as follows:
| ||
(30 ILCS 230/2) (from Ch. 127, par. 171)
| ||
Sec. 2. Accounts of money received; payment into State | ||
treasury.
| ||
(a) Every officer, board, commission, commissioner, | ||
department,
institution, arm or agency brought within the | ||
provisions of this Act by
Section 1 shall keep in proper books |
a detailed itemized account
of all moneys received for or on | ||
behalf of the State of Illinois, showing
the date
of receipt, | ||
the payor, and purpose and amount, and the date and manner
of | ||
disbursement as hereinafter provided, and, unless a different | ||
time of
payment is expressly provided by law or by rules or | ||
regulations promulgated
under subsection (b) of this Section, | ||
shall pay into the State treasury
the gross amount of money so | ||
received on the day of actual physical
receipt with respect to | ||
any single item of receipt exceeding $10,000,
within 24 hours | ||
of actual physical receipt with respect to an accumulation
of | ||
receipts of $10,000 or more, or within 48 hours of actual | ||
physical
receipt with respect to an accumulation of receipts | ||
exceeding $500 but less
than $10,000, disregarding holidays, | ||
Saturdays and Sundays, after the receipt
of same, without any | ||
deduction on account of salaries, fees, costs, charges,
| ||
expenses or claims of any description whatever; provided that:
| ||
(1) the provisions of (i) Section 2505-475 of the
| ||
Department
of Revenue Law (20 ILCS 2505/2505-475), (ii) any | ||
specific taxing statute
authorizing a claim for
credit | ||
procedure instead of the actual making of refunds, (iii) | ||
Section 505 of
the Illinois Controlled Substances
Act, (iv) | ||
Section 85 of the Methamphetamine Control and Community | ||
Protection Act, authorizing the Director of
State Police to | ||
dispose of forfeited property, which includes the sale and
| ||
disposition of the proceeds of the sale of forfeited | ||
property, and the
Department of Central Management |
Services to be reimbursed for costs incurred
with the sales | ||
of forfeited vehicles, boats or aircraft and to pay to bona | ||
fide
or innocent purchasers, conditional sales vendors or | ||
mortgagees of such
vehicles, boats or aircraft their | ||
interest in such vehicles, boats or aircraft,
and (v)
| ||
Section 6b-2 of the State Finance Act,
establishing | ||
procedures for handling cash receipts from the sale of | ||
pari-mutuel
wagering tickets, shall not be deemed to be in | ||
conflict with the requirements
of this Section;
| ||
(2) any fees received by the State
Registrar of Vital | ||
Records pursuant to the Vital Records Act which are
| ||
insufficient in amount may be returned by the Registrar as | ||
provided in that
Act;
| ||
(3) any fees received by the Department of
Public | ||
Health under the Food Handling Regulation Enforcement Act | ||
that are
submitted for renewal of an expired food service | ||
sanitation manager certificate
may be returned by the | ||
Director as provided in that Act;
| ||
(3.5) the State Treasurer may permit the deduction of | ||
fees by
third-party unclaimed property examiners from the | ||
property recovered by the
examiners for the State of | ||
Illinois during examinations of holders located
outside | ||
the State under which the Office of the Treasurer has | ||
agreed to pay for
the examinations based upon a percentage, | ||
set by rule by the State Treasurer in
accordance with the | ||
Revised Uniform Unclaimed Property Illinois Administrative |
Procedure Act, of the property
recovered during the
| ||
examination; and
| ||
(4) if the amount of money received
does not exceed | ||
$500, such money may be retained and need not be paid
into | ||
the State treasury until the total amount of money so | ||
received
exceeds $500, or until the next succeeding 1st or | ||
15th day of each month
(or until the next business day if | ||
these days fall on Sunday or a
holiday), whichever is | ||
earlier, at which earlier time such money shall
be paid | ||
into the State treasury, except that if a local bank or | ||
savings
and loan association account has been authorized by | ||
law, any balances shall
be paid into the State treasury on | ||
Monday of each week if more than $500
is to be deposited in | ||
any fund.
| ||
Single items of receipt exceeding $10,000 received after 2 p.m. | ||
on a working
day may be deemed to have been received on the | ||
next working day for purposes of
fulfilling the requirement | ||
that the item be deposited on the day of actual
physical | ||
receipt.
| ||
No money belonging to or left for the use of the State | ||
shall be expended or
applied except in consequence of an | ||
appropriation made by law and upon the
warrant of the State | ||
Comptroller. However, payments made by the Comptroller
to | ||
persons by direct deposit need not be made upon the warrant of | ||
the
Comptroller, but if not made upon a warrant, shall be made | ||
in accordance
with Section 9.02 of the State Comptroller Act. |
All moneys so paid
into the State treasury shall, unless | ||
required by some statute to be held in
the State treasury in a | ||
separate or special fund, be covered into the General
Revenue | ||
Fund in the State treasury. Moneys received
in the form of | ||
checks, drafts or similar instruments shall be properly
| ||
endorsed, if necessary, and delivered to the State Treasurer | ||
for
collection. The State Treasurer shall remit such collected | ||
funds to the
depositing officer, board, commission, | ||
commissioner, department,
institution, arm or agency by | ||
Treasurers Draft or through electronic funds
transfer. The | ||
draft or notification of the electronic funds
transfer shall be | ||
provided to the State Comptroller to allow deposit into
the | ||
appropriate fund.
| ||
(b) Different time periods for the payment of public funds | ||
into the State
treasury or to the State Treasurer, in excess of | ||
the periods established
in subsection (a) of this Section, but | ||
not in excess of 30 days after receipt
of such funds, may be | ||
established and revised from time to time by rules or
| ||
regulations promulgated jointly by the State Treasurer and the | ||
State
Comptroller in accordance with the Illinois | ||
Administrative
Procedure Act. The different
time periods | ||
established by rule or regulation under this subsection may | ||
vary
according to the nature and amounts of the funds received, | ||
the locations at
which the funds are received, whether | ||
compliance with the deposit requirements
specified in | ||
subsection (a) of this Section would be cost effective, and |
such
other circumstances and conditions as the promulgating | ||
authorities consider to
be appropriate. The Treasurer and the | ||
Comptroller shall review all such
different time
periods | ||
established pursuant to this subsection every 2 years from the
| ||
establishment thereof and upon such review, unless it is | ||
determined that it
is economically unfeasible for the agency to | ||
comply with the provisions of
subsection (a), shall repeal such | ||
different time period.
| ||
(Source: P.A. 94-556, eff. 9-11-05.)
| ||
Section 17-45. The Counties Code is amended by changing | ||
Section 3-3034 as follows:
| ||
(55 ILCS 5/3-3034) (from Ch. 34, par. 3-3034)
| ||
Sec. 3-3034. Disposition of body. After the inquest the | ||
coroner
may deliver the body or human remains of the deceased | ||
to the family of the deceased or, if there are no family | ||
members to accept the body or the remains, then to friends of | ||
the deceased, if there be any, but
if not, the coroner shall | ||
cause the body or the remains to be decently buried, cremated, | ||
or donated for medical science purposes, the expenses to be | ||
paid
from the property of the deceased, if there is sufficient, | ||
if not, by the
county. The coroner may not approve the | ||
cremation or donation of the body if it is necessary to | ||
preserve the body for law enforcement purposes. If the State | ||
Treasurer, pursuant to the Revised Uniform Disposition of |
Unclaimed Property Act, delivers human remains to the coroner, | ||
the coroner shall cause the human remains to be disposed of as | ||
provided in this Section.
If the police department of any | ||
municipality or county investigates abandoned cremated | ||
remains, determines that they are human remains, and cannot | ||
locate the owner of the remains, then the police shall deliver | ||
the remains to the coroner, and the coroner shall cause the | ||
remains to be disposed of as provided in this Section.
| ||
(Source: P.A. 96-1339, eff. 7-27-10; 97-679, eff. 2-6-12.)
| ||
Section 17-50. The Illinois Banking Act is amended by | ||
changing Sections 48, 48.1, 48.3, and 65 as follows:
| ||
(205 ILCS 5/48)
| ||
Sec. 48. Secretary's powers; duties. The Secretary shall | ||
have the
powers and authority, and is charged with the duties | ||
and responsibilities
designated in this Act, and a State bank | ||
shall not be subject to any
other visitorial power other than | ||
as authorized by this Act, except those
vested in the courts, | ||
or upon prior consultation with the Secretary, a
foreign bank | ||
regulator with an appropriate supervisory interest in the | ||
parent
or affiliate of a state bank. In the performance of the | ||
Secretary's
duties:
| ||
(1) The Commissioner shall call for statements from all | ||
State banks
as provided in Section 47 at least one time | ||
during each calendar quarter.
|
(2) (a) The Commissioner, as often as the Commissioner | ||
shall deem
necessary or
proper, and no less frequently than | ||
18 months following the preceding
examination, shall | ||
appoint a suitable person or
persons to make an examination | ||
of the affairs of every State bank,
except that for every | ||
eligible State bank, as defined by regulation, the
| ||
Commissioner in lieu of the examination may accept on an | ||
alternating basis the
examination made by the eligible | ||
State bank's appropriate federal banking
agency pursuant | ||
to Section 111 of the Federal Deposit Insurance Corporation
| ||
Improvement Act of 1991, provided the appropriate federal | ||
banking agency has
made such an examination. A person so | ||
appointed shall not be a stockholder or
officer or employee | ||
of
any bank which that person may be directed to examine, | ||
and shall have
powers to make a thorough examination into | ||
all the affairs of the bank and
in so doing to examine any | ||
of the officers or agents or employees thereof
on oath and | ||
shall make a full and detailed report of the condition of | ||
the
bank to the Commissioner. In making the examination the | ||
examiners shall
include an examination of the affairs of | ||
all the affiliates of the bank, as
defined in subsection | ||
(b) of Section 35.2 of this Act, or subsidiaries of the
| ||
bank as shall be
necessary to disclose fully the conditions | ||
of the subsidiaries or
affiliates, the relations
between | ||
the bank and the subsidiaries or affiliates and the effect | ||
of those
relations upon
the affairs of the bank, and in |
connection therewith shall have power to
examine any of the | ||
officers, directors, agents, or employees of the
| ||
subsidiaries or affiliates
on oath. After May 31, 1997, the | ||
Commissioner may enter into cooperative
agreements
with | ||
state regulatory authorities of other states to provide for | ||
examination of
State bank branches in those states, and the | ||
Commissioner may accept reports
of examinations of State | ||
bank branches from those state regulatory authorities.
| ||
These cooperative agreements may set forth the manner in | ||
which the other state
regulatory authorities may be | ||
compensated for examinations prepared for and
submitted to | ||
the Commissioner.
| ||
(b) After May 31, 1997, the Commissioner is authorized | ||
to examine, as often
as the Commissioner shall deem | ||
necessary or proper, branches of out-of-state
banks. The | ||
Commissioner may establish and may assess fees to be paid | ||
to the
Commissioner for examinations under this subsection | ||
(b). The fees shall be
borne by the out-of-state bank, | ||
unless the fees are borne by the state
regulatory authority | ||
that chartered the out-of-state bank, as determined by a
| ||
cooperative agreement between the Commissioner and the | ||
state regulatory
authority that chartered the out-of-state | ||
bank.
| ||
(2.1) Pursuant to paragraph (a) of subsection (6) of | ||
this Section, the Secretary shall adopt rules that ensure | ||
consistency and due process in the examination process. The |
Secretary may also establish guidelines that (i) define the | ||
scope of the examination process and (ii) clarify | ||
examination items to be resolved. The rules, formal | ||
guidance, interpretive letters, or opinions furnished to | ||
State banks by the Secretary may be relied upon by the | ||
State banks. | ||
(2.5) Whenever any State bank, any subsidiary or | ||
affiliate of a State
bank, or after May 31, 1997, any | ||
branch of an out-of-state bank causes to
be performed, by | ||
contract or otherwise, any bank services
for itself, | ||
whether on or off its premises:
| ||
(a) that performance shall be subject to | ||
examination by the Commissioner
to the same extent as | ||
if services were being performed by the bank or, after
| ||
May 31, 1997, branch of the out-of-state bank itself
on | ||
its own premises; and
| ||
(b) the bank or, after May 31, 1997, branch of the | ||
out-of-state bank
shall notify the Commissioner of the | ||
existence of a service
relationship. The notification | ||
shall be submitted with the first statement
of | ||
condition (as required by Section 47 of this Act) due | ||
after the making
of the service contract or the | ||
performance of the service, whichever occurs
first. | ||
The Commissioner shall be notified of each subsequent | ||
contract in
the same manner.
| ||
For purposes of this subsection (2.5), the term "bank |
services" means
services such as sorting and posting of | ||
checks and deposits, computation
and posting of interest | ||
and other credits and charges, preparation and
mailing of | ||
checks, statements, notices, and similar items, or any | ||
other
clerical, bookkeeping, accounting, statistical, or | ||
similar functions
performed for a State bank, including but | ||
not limited to electronic data
processing related to those | ||
bank services.
| ||
(3) The expense of administering this Act, including | ||
the expense of
the examinations of State banks as provided | ||
in this Act, shall to the extent
of the amounts resulting | ||
from the fees provided for in paragraphs (a),
(a-2), and | ||
(b) of this subsection (3) be assessed against and borne by | ||
the
State banks:
| ||
(a) Each bank shall pay to the Secretary a Call | ||
Report Fee which
shall be paid in quarterly | ||
installments equal
to one-fourth of the sum of the | ||
annual fixed fee of $800, plus a variable
fee based on | ||
the assets shown on the quarterly statement of | ||
condition
delivered to the Secretary in accordance | ||
with Section 47 for the
preceding quarter according to | ||
the following schedule: 16¢ per $1,000 of
the first | ||
$5,000,000 of total assets, 15¢ per $1,000 of the next
| ||
$20,000,000 of total assets, 13¢ per $1,000 of the next | ||
$75,000,000 of
total assets, 9¢ per $1,000 of the next | ||
$400,000,000 of total assets, 7¢
per $1,000 of the next |
$500,000,000 of total assets, and 5¢ per $1,000 of
all | ||
assets in excess of $1,000,000,000, of the State bank. | ||
The Call Report
Fee shall be calculated by the | ||
Secretary and billed to the banks for
remittance at the | ||
time of the quarterly statements of condition
provided | ||
for in Section 47. The Secretary may require payment of | ||
the fees
provided in this Section by an electronic | ||
transfer of funds or an automatic
debit of an account | ||
of each of the State banks. In case more than one
| ||
examination of any
bank is deemed by the Secretary to | ||
be necessary in any examination
frequency cycle | ||
specified in subsection 2(a) of this Section,
and is | ||
performed at his direction, the Secretary may
assess a | ||
reasonable additional fee to recover the cost of the | ||
additional
examination ; provided, however, that an | ||
examination conducted at the request
of the State | ||
Treasurer pursuant to the Uniform Disposition of | ||
Unclaimed
Property Act shall not be deemed to be an | ||
additional examination under this
Section .
In lieu
of | ||
the method and amounts set forth in this paragraph (a) | ||
for the calculation
of the Call Report Fee, the | ||
Secretary may specify by
rule that the Call Report Fees | ||
provided by this Section may be assessed
semiannually | ||
or some other period and may provide in the rule the | ||
formula to
be
used for calculating and assessing the | ||
periodic Call Report Fees to be paid by
State
banks.
|
(a-1) If in the opinion of the Commissioner an | ||
emergency exists or
appears likely, the Commissioner | ||
may assign an examiner or examiners to
monitor the | ||
affairs of a State bank with whatever frequency he | ||
deems
appropriate, including but not limited to a daily | ||
basis. The reasonable
and necessary expenses of the | ||
Commissioner during the period of the monitoring
shall | ||
be borne by the subject bank. The Commissioner shall | ||
furnish the
State bank a statement of time and expenses | ||
if requested to do so within 30
days of the conclusion | ||
of the monitoring period.
| ||
(a-2) On and after January 1, 1990, the reasonable | ||
and necessary
expenses of the Commissioner during | ||
examination of the performance of
electronic data | ||
processing services under subsection (2.5) shall be
| ||
borne by the banks for which the services are provided. | ||
An amount, based
upon a fee structure prescribed by the | ||
Commissioner, shall be paid by the
banks or, after May | ||
31, 1997, branches of out-of-state banks receiving the
| ||
electronic data processing services along with the
| ||
Call Report Fee assessed under paragraph (a) of this
| ||
subsection (3).
| ||
(a-3) After May 31, 1997, the reasonable and | ||
necessary expenses of the
Commissioner during | ||
examination of the performance of electronic data
| ||
processing services under subsection (2.5) at or on |
behalf of branches of
out-of-state banks shall be borne | ||
by the out-of-state banks, unless those
expenses are | ||
borne by the state regulatory authorities that | ||
chartered the
out-of-state banks, as determined by | ||
cooperative agreements between the
Commissioner and | ||
the state regulatory authorities that chartered the
| ||
out-of-state banks.
| ||
(b) "Fiscal year" for purposes of this Section 48 | ||
is defined as a
period beginning July 1 of any year and | ||
ending June 30 of the next year.
The Commissioner shall | ||
receive for each fiscal year, commencing with the
| ||
fiscal year ending June 30, 1987, a contingent fee | ||
equal to the lesser of
the aggregate of the fees paid | ||
by all State banks under paragraph (a) of
subsection | ||
(3) for that year, or the amount, if any, whereby the | ||
aggregate
of the administration expenses, as defined | ||
in paragraph (c), for that
fiscal year exceeds the sum | ||
of the aggregate of the fees payable by all
State banks | ||
for that year under paragraph (a) of subsection (3),
| ||
plus any amounts transferred into the Bank and Trust | ||
Company Fund from the
State Pensions Fund for that | ||
year,
plus all
other amounts collected by the | ||
Commissioner for that year under any
other provision of | ||
this Act, plus the aggregate of all fees
collected for | ||
that year by the Commissioner under the Corporate | ||
Fiduciary
Act, excluding the receivership fees |
provided for in Section 5-10 of the
Corporate Fiduciary | ||
Act, and the Foreign Banking Office Act.
The aggregate | ||
amount of the contingent
fee thus arrived at for any | ||
fiscal year shall be apportioned amongst,
assessed | ||
upon, and paid by the State banks and foreign banking | ||
corporations,
respectively, in the same proportion
| ||
that the fee of each under paragraph (a) of subsection | ||
(3), respectively,
for that year bears to the aggregate | ||
for that year of the fees collected
under paragraph (a) | ||
of subsection (3). The aggregate amount of the
| ||
contingent fee, and the portion thereof to be assessed | ||
upon each State
bank and foreign banking corporation,
| ||
respectively, shall be determined by the Commissioner | ||
and shall be paid by
each, respectively, within 120 | ||
days of the close of the period for which
the | ||
contingent fee is computed and is payable, and the | ||
Commissioner shall
give 20 days' days advance notice of | ||
the amount of the contingent fee payable by
the State | ||
bank and of the date fixed by the Commissioner for | ||
payment of
the fee.
| ||
(c) The "administration expenses" for any fiscal | ||
year shall mean the
ordinary and contingent expenses | ||
for that year incident to making the
examinations | ||
provided for by, and for otherwise administering, this | ||
Act,
the Corporate Fiduciary Act, excluding the | ||
expenses paid from the
Corporate Fiduciary |
Receivership account in the Bank and Trust Company
| ||
Fund, the Foreign Banking Office Act,
the Electronic | ||
Fund Transfer Act,
and the Illinois Bank Examiners'
| ||
Education Foundation Act, including all salaries and | ||
other
compensation paid for personal services rendered | ||
for the State by
officers or employees of the State, | ||
including the Commissioner and the
Deputy | ||
Commissioners, communication equipment and services, | ||
office furnishings, surety bond
premiums, and travel | ||
expenses of those officers and employees, employees,
| ||
expenditures or charges for the acquisition, | ||
enlargement or improvement
of, or for the use of, any | ||
office space, building, or structure, or
expenditures | ||
for the maintenance thereof or for furnishing heat, | ||
light,
or power with respect thereto, all to the extent | ||
that those expenditures
are directly incidental to | ||
such examinations or administration.
The Commissioner | ||
shall not be required by paragraphs (c) or (d-1) of | ||
this
subsection (3) to maintain in any fiscal year's | ||
budget appropriated reserves
for accrued vacation and | ||
accrued sick leave that is required to be paid to
| ||
employees of the Commissioner upon termination of | ||
their service with the
Commissioner in an amount that | ||
is more than is reasonably anticipated to be
necessary | ||
for any anticipated turnover in employees, whether due | ||
to normal
attrition or due to layoffs, terminations, or |
resignations.
| ||
(d) The aggregate of all fees collected by the | ||
Secretary under
this Act, the Corporate Fiduciary Act,
| ||
or the Foreign Banking Office Act on
and after July 1, | ||
1979, shall be paid promptly after receipt of the same,
| ||
accompanied by a detailed statement thereof, into the | ||
State treasury and
shall be set apart in a special fund | ||
to be known as the "Bank and Trust
Company Fund", | ||
except as provided in paragraph (c) of subsection (11) | ||
of
this Section. All earnings received from | ||
investments of funds in the Bank
and
Trust Company Fund | ||
shall be deposited in the Bank and Trust Company Fund
| ||
and may be used for the same purposes as fees deposited | ||
in that Fund. The
amount from time to time deposited | ||
into the Bank and
Trust Company Fund shall be used: (i) | ||
to offset the ordinary administrative
expenses of the | ||
Secretary as defined in
this Section or (ii) as a | ||
credit against fees under paragraph (d-1) of this | ||
subsection (3). Nothing in this amendatory Act of 1979 | ||
shall prevent
continuing the practice of paying | ||
expenses involving salaries, retirement,
social | ||
security, and State-paid insurance premiums of State | ||
officers by
appropriations from the General Revenue | ||
Fund. However, the General Revenue
Fund shall be | ||
reimbursed for those payments made on and after July 1, | ||
1979,
by an annual transfer of funds from the Bank and |
Trust Company Fund. Moneys in the Bank and Trust | ||
Company Fund may be transferred to the Professions | ||
Indirect Cost Fund, as authorized under Section | ||
2105-300 of the Department of Professional Regulation | ||
Law of the Civil Administrative Code of Illinois.
| ||
Notwithstanding provisions in the State Finance | ||
Act, as now or hereafter amended, or any other law to | ||
the contrary, the sum of $18,788,847 shall be | ||
transferred from the Bank and Trust Company Fund to the | ||
Financial Institutions Settlement of 2008 Fund on the | ||
effective date of this amendatory Act of the 95th | ||
General Assembly, or as soon thereafter as practical. | ||
Notwithstanding provisions in the State Finance | ||
Act, as now or hereafter amended, or any other law to | ||
the contrary, the Governor may, during any fiscal year | ||
through January 10, 2011, from time to time direct the | ||
State Treasurer and Comptroller to transfer a | ||
specified sum not exceeding 10% of the revenues to be | ||
deposited into the Bank and Trust Company Fund during | ||
that fiscal year from that Fund to the General Revenue | ||
Fund in order to help defray the State's operating | ||
costs for the fiscal year. Notwithstanding provisions | ||
in the State Finance Act, as now or hereafter amended, | ||
or any other law to the contrary, the total sum | ||
transferred during any fiscal year through January 10, | ||
2011, from the Bank and Trust Company Fund to the |
General Revenue Fund pursuant to this provision shall | ||
not exceed during any fiscal year 10% of the revenues | ||
to be deposited into the Bank and Trust Company Fund | ||
during that fiscal year. The State Treasurer and | ||
Comptroller shall transfer the amounts designated | ||
under this Section as soon as may be practicable after | ||
receiving the direction to transfer from the Governor.
| ||
(d-1) Adequate funds shall be available in the Bank | ||
and Trust
Company Fund to permit the timely payment of | ||
administration expenses. In
each fiscal year the total | ||
administration expenses shall be deducted from
the | ||
total fees collected by the Commissioner and the | ||
remainder transferred
into the Cash Flow Reserve | ||
Account, unless the balance of the Cash Flow
Reserve | ||
Account prior to the transfer equals or exceeds
| ||
one-fourth of the total initial appropriations from | ||
the Bank and Trust
Company Fund for the subsequent | ||
year, in which case the remainder shall be
credited to | ||
State banks and foreign banking corporations
and | ||
applied against their fees for the subsequent
year. The | ||
amount credited to each State bank and foreign banking | ||
corporation
shall be in the same proportion as the
Call | ||
Report Fees paid by each for the year bear to the total | ||
Call Report
Fees collected for the year. If, after a | ||
transfer to the Cash Flow Reserve
Account is made or if | ||
no remainder is available for transfer, the balance
of |
the Cash Flow Reserve Account is less than one-fourth | ||
of the total
initial appropriations for the subsequent | ||
year and the amount transferred
is less than 5% of the | ||
total Call Report Fees for the year, additional
amounts | ||
needed to make the transfer equal to 5% of the total | ||
Call Report
Fees for the year shall be apportioned | ||
amongst, assessed upon, and
paid by the State banks and | ||
foreign banking corporations
in the same proportion | ||
that the Call Report Fees of each,
respectively, for | ||
the year bear to the total Call Report Fees collected | ||
for
the year. The additional amounts assessed shall be | ||
transferred into the
Cash Flow Reserve Account. For | ||
purposes of this paragraph (d-1), the
calculation of | ||
the fees collected by the Commissioner shall exclude | ||
the
receivership fees provided for in Section 5-10 of | ||
the Corporate Fiduciary Act.
| ||
(e) The Commissioner may upon request certify to | ||
any public record
in his keeping and shall have | ||
authority to levy a reasonable charge for
issuing | ||
certifications of any public record in his keeping.
| ||
(f) In addition to fees authorized elsewhere in | ||
this Act, the
Commissioner
may, in connection with a | ||
review, approval, or provision of a service, levy a
| ||
reasonable charge to recover the cost of the review, | ||
approval, or service.
| ||
(4) Nothing contained in this Act shall be construed to |
limit the
obligation relative to examinations and reports | ||
of any State bank, deposits
in which are to any extent | ||
insured by the United States or any agency
thereof, nor to | ||
limit in any way the powers of the Commissioner with
| ||
reference to examinations and reports of that bank.
| ||
(5) The nature and condition of the assets in or | ||
investment of any
bonus, pension, or profit sharing plan | ||
for officers or employees of every
State bank or, after May | ||
31, 1997, branch of an out-of-state bank shall be
deemed to | ||
be included in the affairs of that State
bank or branch of | ||
an out-of-state bank subject to examination by the
| ||
Commissioner under the
provisions of subsection (2) of this | ||
Section, and if the Commissioner
shall find from an | ||
examination that the condition of or operation
of the | ||
investments or assets of the plan is unlawful, fraudulent, | ||
or
unsafe, or that any trustee has abused his trust, the | ||
Commissioner
shall, if the situation so found by the | ||
Commissioner shall not be
corrected to his satisfaction | ||
within 60 days after the Commissioner has
given notice to | ||
the board of directors of the State bank or out-of-state
| ||
bank of his
findings, report the facts to the Attorney | ||
General who shall thereupon
institute proceedings against | ||
the State bank or out-of-state bank, the
board of directors
| ||
thereof, or the trustees under such plan as the nature of | ||
the case may require.
| ||
(6) The Commissioner shall have the power:
|
(a) To promulgate reasonable rules for the purpose | ||
of
administering the provisions of this Act.
| ||
(a-5) To impose conditions on any approval issued | ||
by the Commissioner
if he determines that the | ||
conditions are necessary or appropriate. These
| ||
conditions shall be imposed in writing and shall | ||
continue
in effect for the period prescribed by the | ||
Commissioner.
| ||
(b) To issue orders
against any person, if the | ||
Commissioner has
reasonable cause to believe that an | ||
unsafe or unsound banking practice
has occurred, is | ||
occurring, or is about to occur, if any person has | ||
violated,
is violating, or is about to violate any law, | ||
rule, or written
agreement with the Commissioner, or
| ||
for the purpose of administering the provisions of
this | ||
Act and any rule promulgated in accordance with this | ||
Act.
| ||
(b-1) To enter into agreements with a bank | ||
establishing a program to
correct the condition of the | ||
bank or its practices.
| ||
(c) To appoint hearing officers to execute any of | ||
the powers granted to
the Commissioner under this | ||
Section for the purpose of administering this
Act and | ||
any rule promulgated in accordance with this Act
and | ||
otherwise to authorize, in writing, an officer or | ||
employee of the Office
of
Banks and Real Estate to |
exercise his powers under this Act.
| ||
(d) To subpoena witnesses, to compel their | ||
attendance, to administer
an oath, to examine any | ||
person under oath, and to require the production of
any | ||
relevant books, papers, accounts, and documents in the | ||
course of and
pursuant to any investigation being | ||
conducted, or any action being taken,
by the | ||
Commissioner in respect of any matter relating to the | ||
duties imposed
upon, or the powers vested in, the | ||
Commissioner under the provisions of
this Act or any | ||
rule promulgated in accordance with this Act.
| ||
(e) To conduct hearings.
| ||
(7) Whenever, in the opinion of the Secretary, any | ||
director,
officer, employee, or agent of a State bank
or | ||
any subsidiary or bank holding company of the bank
or, | ||
after May 31, 1997, of any
branch of an out-of-state bank
| ||
or any subsidiary or bank holding company of the bank
shall | ||
have violated any law,
rule, or order relating to that bank
| ||
or any subsidiary or bank holding company of the bank, | ||
shall have
obstructed or impeded any examination or | ||
investigation by the Secretary, shall have engaged in an | ||
unsafe or
unsound practice in conducting the business of | ||
that bank
or any subsidiary or bank holding company of the | ||
bank,
or shall have
violated any law or engaged or | ||
participated in any unsafe or unsound practice
in | ||
connection with any financial institution or other |
business entity such that
the character and fitness of the | ||
director, officer, employee, or agent does not
assure | ||
reasonable promise of safe and sound operation of the State | ||
bank, the
Secretary
may issue an order of removal.
If, in | ||
the opinion of the Secretary, any former director, officer,
| ||
employee,
or agent of a State bank
or any subsidiary or | ||
bank holding company of the bank, prior to the
termination | ||
of his or her service with
that bank
or any subsidiary or | ||
bank holding company of the bank, violated any law,
rule, | ||
or order relating to that
State bank
or any subsidiary or | ||
bank holding company of the bank, obstructed or impeded
any | ||
examination or investigation by the Secretary, engaged in | ||
an unsafe or unsound practice in conducting the
business of | ||
that bank
or any subsidiary or bank holding company of the | ||
bank,
or violated any law or engaged or participated in any
| ||
unsafe or unsound practice in connection with any financial | ||
institution or
other business entity such that the | ||
character and fitness of the director,
officer, employee, | ||
or agent would not have assured reasonable promise of safe
| ||
and sound operation of the State bank, the Secretary may | ||
issue an order
prohibiting that person from
further
service | ||
with a bank
or any subsidiary or bank holding company of | ||
the bank
as a director, officer, employee, or agent. An | ||
order
issued pursuant to this subsection shall be served | ||
upon the
director,
officer, employee, or agent. A copy of | ||
the order shall be sent to each
director of the bank |
affected by registered mail. A copy of
the order shall also | ||
be served upon the bank of which he is a director,
officer, | ||
employee, or agent, whereupon he shall cease to be a | ||
director,
officer, employee, or agent of that bank. The | ||
Secretary may
institute a civil action against the | ||
director, officer, or agent of the
State bank or, after May | ||
31, 1997, of the branch of the out-of-state bank
against | ||
whom any order provided for by this subsection (7) of
this | ||
Section 48 has been issued, and against the State bank or, | ||
after May 31,
1997, out-of-state bank, to enforce
| ||
compliance with or to enjoin any violation of the terms of | ||
the order.
Any person who has been the subject of an order | ||
of removal
or
an order of prohibition issued by the | ||
Secretary under
this subsection or Section 5-6 of the | ||
Corporate Fiduciary Act may not
thereafter serve as | ||
director, officer, employee, or agent of any State bank
or | ||
of any branch of any out-of-state bank,
or of any corporate | ||
fiduciary, as defined in Section 1-5.05 of the
Corporate
| ||
Fiduciary Act, or of any other entity that is subject to | ||
licensure or
regulation by the Division of Banking unless
| ||
the Secretary has granted prior approval in writing.
| ||
For purposes of this paragraph (7), "bank holding | ||
company" has the
meaning prescribed in Section 2 of the | ||
Illinois Bank Holding Company Act of
1957.
| ||
(8) The Commissioner may impose civil penalties of up | ||
to $100,000 against
any person for each violation of any |
provision of this Act, any rule
promulgated in accordance | ||
with this Act, any order of the Commissioner, or
any other | ||
action which in the Commissioner's discretion is an unsafe | ||
or
unsound banking practice.
| ||
(9) The Commissioner may impose civil penalties of up | ||
to $100
against any person for the first failure to comply | ||
with reporting
requirements set forth in the report of | ||
examination of the bank and up to
$200 for the second and | ||
subsequent failures to comply with those reporting
| ||
requirements.
| ||
(10) All final administrative decisions of the | ||
Commissioner hereunder
shall be subject to judicial review | ||
pursuant to the provisions of the
Administrative Review | ||
Law. For matters involving administrative review,
venue | ||
shall be in either Sangamon County or Cook County.
| ||
(11) The endowment fund for the Illinois Bank | ||
Examiners' Education
Foundation shall be administered as | ||
follows:
| ||
(a) (Blank).
| ||
(b) The Foundation is empowered to receive | ||
voluntary contributions,
gifts, grants, bequests, and | ||
donations on behalf of the Illinois Bank
Examiners' | ||
Education Foundation from national banks and other | ||
persons for
the purpose of funding the endowment of the | ||
Illinois Bank Examiners'
Education Foundation.
| ||
(c) The aggregate of all special educational fees |
collected by the
Secretary and property received by the | ||
Secretary on behalf of the
Illinois Bank Examiners' | ||
Education Foundation under this subsection
(11) on or | ||
after June 30, 1986, shall be either (i) promptly paid | ||
after
receipt of the same, accompanied by a detailed | ||
statement thereof, into the
State Treasury and shall be | ||
set apart in a special fund to be known as "The
| ||
Illinois Bank Examiners' Education Fund" to be | ||
invested by either the
Treasurer of the State of | ||
Illinois in the Public Treasurers' Investment
Pool or | ||
in any other investment he is authorized to make or by | ||
the Illinois
State Board of Investment as the State | ||
Banking Board of Illinois may direct or (ii) deposited | ||
into an account
maintained in a commercial bank or | ||
corporate fiduciary in the name of the
Illinois Bank | ||
Examiners' Education Foundation pursuant to the order | ||
and
direction of the Board of Trustees of the Illinois | ||
Bank Examiners' Education
Foundation.
| ||
(12) (Blank).
| ||
(13) The Secretary may borrow funds from the General | ||
Revenue Fund on behalf of the Bank and Trust Company Fund | ||
if the Director of Banking certifies to the Governor that | ||
there is an economic emergency affecting banking that | ||
requires a borrowing to provide additional funds to the | ||
Bank and Trust Company Fund. The borrowed funds shall be | ||
paid back within 3 years and shall not exceed the total |
funding appropriated to the Agency in the previous year. | ||
(14) In addition to the fees authorized in this Act, | ||
the Secretary may assess reasonable receivership fees | ||
against any State bank that does not maintain insurance | ||
with the Federal Deposit Insurance Corporation. All fees | ||
collected under this subsection (14) shall be paid into the | ||
Non-insured Institutions Receivership account in the Bank | ||
and Trust Company Fund, as established by the Secretary. | ||
The fees assessed under this subsection (14) shall provide | ||
for the expenses that arise from the administration of the | ||
receivership of any such institution required to pay into | ||
the Non-insured Institutions Receivership account, whether | ||
pursuant to this Act, the Corporate Fiduciary Act, the | ||
Foreign Banking Office Act, or any other Act that requires | ||
payments into the Non-insured Institutions Receivership | ||
account. The Secretary may establish by rule a reasonable | ||
manner of assessing fees under this subsection (14). | ||
(Source: P.A. 98-784, eff. 7-24-14; 99-39, eff. 1-1-16 .)
| ||
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
| ||
Sec. 48.1. Customer financial records; confidentiality.
| ||
(a) For the purpose of this Section, the term "financial | ||
records" means any
original, any copy, or any summary of:
| ||
(1) a document granting signature
authority over a | ||
deposit or account;
| ||
(2) a statement, ledger card or other
record on any |
deposit or account, which shows each transaction in or with
| ||
respect to that account;
| ||
(3) a check, draft or money order drawn on a bank
or | ||
issued and payable by a bank; or
| ||
(4) any other item containing
information pertaining | ||
to any relationship established in the ordinary
course of a | ||
bank's business between a bank and its customer, including
| ||
financial statements or other financial information | ||
provided by the customer.
| ||
(b) This Section does not prohibit:
| ||
(1) The preparation, examination, handling or | ||
maintenance of any
financial records by any officer, | ||
employee or agent of a bank
having custody of the records, | ||
or the examination of the records by a
certified public | ||
accountant engaged by the bank to perform an independent
| ||
audit.
| ||
(2) The examination of any financial records by, or the | ||
furnishing of
financial records by a bank to, any officer, | ||
employee or agent of (i) the
Commissioner of Banks and Real | ||
Estate, (ii) after May
31, 1997, a state regulatory | ||
authority authorized to examine a branch of a
State bank | ||
located in another state, (iii) the Comptroller of the | ||
Currency,
(iv) the Federal Reserve Board, or (v) the | ||
Federal Deposit Insurance
Corporation for use solely in the | ||
exercise of his duties as an officer,
employee, or agent.
| ||
(3) The publication of data furnished from financial |
records
relating to customers where the data cannot be | ||
identified to any
particular customer or account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of
the Internal Revenue Code of 1986.
| ||
(5) Furnishing information concerning the dishonor of | ||
any negotiable
instrument permitted to be disclosed under | ||
the Uniform Commercial Code.
| ||
(6) The exchange in the regular course of business of | ||
(i) credit
information
between a bank and other banks or | ||
financial institutions or commercial
enterprises, directly | ||
or through a consumer reporting agency or (ii)
financial | ||
records or information derived from financial records | ||
between a bank
and other banks or financial institutions or | ||
commercial enterprises for the
purpose of conducting due | ||
diligence pursuant to a purchase or sale involving
the bank | ||
or assets or liabilities of the bank.
| ||
(7) The furnishing of information to the appropriate | ||
law enforcement
authorities where the bank reasonably | ||
believes it has been the victim of a
crime.
| ||
(8) The furnishing of information under the Revised | ||
Uniform Disposition of
Unclaimed Property Act.
| ||
(9) The furnishing of information under the Illinois | ||
Income Tax Act and
the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information under the federal | ||
Currency
and Foreign Transactions Reporting Act Title 31, |
United States
Code, Section 1051 et seq.
| ||
(11) The furnishing of information under any other | ||
statute that
by its terms or by regulations promulgated | ||
thereunder requires the disclosure
of financial records | ||
other than by subpoena, summons, warrant, or court order.
| ||
(12) The furnishing of information about the existence | ||
of an account
of a person to a judgment creditor of that | ||
person who has made a written
request for that information.
| ||
(13) The exchange in the regular course of business of | ||
information
between commonly owned banks in connection | ||
with a transaction authorized
under paragraph (23) of
| ||
Section 5 and conducted at an affiliate facility.
| ||
(14) The furnishing of information in accordance with | ||
the federal
Personal Responsibility and Work Opportunity | ||
Reconciliation Act of 1996.
Any bank governed by this Act | ||
shall enter into an agreement for data
exchanges with a | ||
State agency provided the State agency
pays to the bank a | ||
reasonable fee not to exceed its
actual cost incurred. A | ||
bank providing
information in accordance with this item | ||
shall not be liable to any account
holder or other person | ||
for any disclosure of information to a State agency, for
| ||
encumbering or surrendering any assets held by the bank in | ||
response to a lien
or order to withhold and deliver issued | ||
by a State agency, or for any other
action taken pursuant | ||
to this item, including individual or mechanical errors,
| ||
provided the action does not constitute gross negligence or |
willful misconduct.
A bank shall have no obligation to | ||
hold, encumber, or surrender assets until
it has been | ||
served with a subpoena, summons, warrant, court or | ||
administrative
order,
lien, or levy.
| ||
(15) The exchange in the regular course of business of | ||
information
between
a bank and any commonly owned affiliate | ||
of the bank, subject to the provisions
of the Financial | ||
Institutions Insurance Sales Law.
| ||
(16) The furnishing of information to law enforcement | ||
authorities, the
Illinois Department on
Aging and its | ||
regional administrative and provider agencies, the | ||
Department of
Human Services Office
of Inspector General, | ||
or public guardians: (i) upon subpoena by the investigatory | ||
entity or the guardian, or (ii) if there is suspicion by | ||
the bank that a customer
who is an elderly person or person | ||
with a disability has been or may become the victim of | ||
financial exploitation.
For the purposes of this
item (16), | ||
the term: (i) "elderly person" means a person who is 60 or | ||
more
years of age, (ii) "disabled
person" means a person | ||
who has or reasonably appears to the bank to have a
| ||
physical or mental
disability that impairs his or her | ||
ability to seek or obtain protection from or
prevent | ||
financial
exploitation, and (iii) "financial exploitation" | ||
means tortious or illegal use
of the assets or resources of
| ||
an elderly or disabled person, and includes, without | ||
limitation,
misappropriation of the elderly or
disabled |
person's assets or resources by undue influence, breach of | ||
fiduciary
relationship, intimidation,
fraud, deception, | ||
extortion, or the use of assets or resources in any manner
| ||
contrary to law. A bank or
person furnishing information | ||
pursuant to this item (16) shall be entitled to
the same | ||
rights and
protections as a person furnishing information | ||
under the Adult Protective Services Act and the Illinois
| ||
Domestic Violence Act of 1986.
| ||
(17) The disclosure of financial records or | ||
information as necessary to
effect, administer, or enforce | ||
a transaction requested or authorized by the
customer, or | ||
in connection with:
| ||
(A) servicing or processing a financial product or | ||
service requested or
authorized by the customer;
| ||
(B) maintaining or servicing a customer's account | ||
with the bank; or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including sales of servicing | ||
rights) related to a
transaction of a customer.
| ||
Nothing in this item (17), however, authorizes the sale | ||
of the financial
records or information of a customer | ||
without the consent of the customer.
| ||
(18) The disclosure of financial records or | ||
information as necessary to
protect against actual or | ||
potential fraud, unauthorized transactions, claims,
or | ||
other liability.
|
(19)(a) The disclosure of financial records or | ||
information
related to a private label credit program | ||
between a financial
institution and a private label party | ||
in connection with that
private label credit program. Such | ||
information is limited to
outstanding balance, available | ||
credit, payment and performance
and account history, | ||
product references, purchase information,
and information
| ||
related to the identity of the customer.
| ||
(b)(1) For purposes of this paragraph (19) of | ||
subsection
(b) of Section 48.1, a "private label credit | ||
program" means a
credit program involving a financial | ||
institution and a private label
party that is used by a | ||
customer of the financial institution and the
private label | ||
party primarily for payment for goods or services
sold, | ||
manufactured, or distributed by a private label party.
| ||
(2) For purposes of this paragraph (19) of subsection | ||
(b)
of Section 48.1, a "private label party" means, with | ||
respect to a
private label credit program, any of the | ||
following: a
retailer, a merchant, a manufacturer, a trade | ||
group,
or any such person's affiliate, subsidiary, member,
| ||
agent, or service provider.
| ||
(c) Except as otherwise provided by this Act, a bank may | ||
not disclose to
any person, except to the customer or his
duly | ||
authorized agent, any financial records or financial | ||
information
obtained from financial records relating to that | ||
customer of
that bank unless:
|
(1) the customer has authorized disclosure to the | ||
person;
| ||
(2) the financial records are disclosed in response to | ||
a lawful
subpoena, summons, warrant, citation to discover | ||
assets, or court order which meets the requirements
of | ||
subsection (d) of this Section; or
| ||
(3) the bank is attempting to collect an obligation | ||
owed to the bank
and the bank complies with the provisions | ||
of Section 2I of the Consumer
Fraud and Deceptive Business | ||
Practices Act.
| ||
(d) A bank shall disclose financial records under paragraph | ||
(2) of
subsection (c) of this Section under a lawful subpoena, | ||
summons, warrant, citation to discover assets, or
court order | ||
only after the bank mails a copy of the subpoena, summons, | ||
warrant, citation to discover assets,
or court order to the | ||
person establishing the relationship with the bank, if
living, | ||
and, otherwise his personal representative, if known, at his | ||
last known
address by first class mail, postage prepaid, unless | ||
the bank is specifically
prohibited from notifying the person | ||
by order of court or by applicable State
or federal law. A bank | ||
shall not mail a copy of a subpoena to any person
pursuant to | ||
this subsection if the subpoena was issued by a grand jury | ||
under
the Statewide Grand Jury Act.
| ||
(e) Any officer or employee of a bank who knowingly and
| ||
willfully furnishes financial records in violation of this | ||
Section is
guilty of a business offense and, upon conviction, |
shall be fined not
more than $1,000.
| ||
(f) Any person who knowingly and willfully induces or | ||
attempts to
induce any officer or employee of a bank to | ||
disclose financial
records in violation of this Section is | ||
guilty of a business offense
and, upon conviction, shall be | ||
fined not more than $1,000.
| ||
(g) A bank shall be reimbursed for costs that are | ||
reasonably necessary
and that have been directly incurred in | ||
searching for, reproducing, or
transporting books, papers, | ||
records, or other data of a customer required or
requested to | ||
be produced pursuant to a lawful subpoena, summons, warrant, | ||
citation to discover assets, or
court order. The Commissioner | ||
shall determine the rates and conditions
under which payment | ||
may be made.
| ||
(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15 .)
| ||
(205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
| ||
Sec. 48.3.
Disclosure of reports of examinations
and | ||
confidential
supervisory information;
limitations.
| ||
(a) Any report of examination, visitation, or | ||
investigation prepared by
the Commissioner under this Act, the | ||
Electronic Fund Transfer
Act, the Corporate Fiduciary Act, the
| ||
Illinois Bank Holding Company Act of 1957, and the Foreign
| ||
Banking Office Act, any report of examination, visitation, or
| ||
investigation prepared by the state regulatory
authority of | ||
another state that examines a branch of an Illinois State bank |
in
that state, any document or record prepared or obtained in
| ||
connection with or relating to any
examination, visitation, or | ||
investigation, and any record prepared or
obtained by the | ||
Commissioner to the extent that the record summarizes or
| ||
contains information derived from any report, document, or | ||
record described
in this subsection shall be deemed | ||
"confidential supervisory information".
Confidential
| ||
supervisory information shall not include any information or | ||
record
routinely prepared by a bank or other financial | ||
institution and maintained in
the ordinary course of business | ||
or any information or record that is required
to be made | ||
publicly available pursuant to State or federal law or rule.
| ||
Confidential supervisory information
shall be the property of | ||
the Commissioner and shall only be
disclosed under the | ||
circumstances and for the purposes set forth in this
Section.
| ||
The Commissioner may
disclose
confidential supervisory | ||
information only under the following circumstances:
| ||
(1) The Commissioner may furnish confidential | ||
supervisory information
to the Board of Governors of the
| ||
Federal Reserve System, the federal reserve bank of the | ||
federal reserve
district in which the State bank is located | ||
or in which the parent or other
affiliate of the State bank | ||
is located, any official or examiner
thereof duly | ||
accredited for the purpose, or any other state regulator, | ||
federal
regulator, or in the case of a foreign bank | ||
possessing a certificate of
authority pursuant to the |
Foreign Banking Office Act or a license pursuant to
the | ||
Foreign Bank Representative Office Act, the bank regulator | ||
in the country
where the foreign bank is chartered,
that | ||
the Commissioner determines to have an appropriate
| ||
regulatory interest. Nothing contained in this Act shall be | ||
construed to
limit the obligation of any member State bank | ||
to comply with the
requirements relative to examinations | ||
and reports of the Federal Reserve
Act and of the Board of | ||
Governors of the Federal Reserve System or the
federal | ||
reserve bank of the federal reserve district in which the | ||
bank is
located, nor to limit in any way the powers of the | ||
Commissioner with
reference to examinations and reports.
| ||
(2) The Commissioner may furnish confidential | ||
supervisory information
to the United States, any agency
| ||
thereof that has insured a bank's deposits in whole or in | ||
part, or any official
or examiner thereof duly accredited | ||
for the purpose. Nothing contained in this Act shall be
| ||
construed to limit the obligation relative to examinations | ||
and reports of any
State bank, deposits in which are to any | ||
extent insured by the United States,
any agency thereof, | ||
nor to limit in any way the powers of the Commissioner with
| ||
reference to examination and reports of such bank.
| ||
(3) The Commissioner may furnish
confidential | ||
supervisory
information
to the appropriate law
enforcement | ||
authorities when the Commissioner reasonably believes a
| ||
bank, which
the Commissioner has
caused to be examined, has |
been a victim of a crime.
| ||
(4) The Commissioner may furnish confidential | ||
supervisory information
relating to a bank or other
| ||
financial institution, which the Commissioner has caused | ||
to be
examined, to be sent to the
administrator of the | ||
Revised Uniform Disposition of Unclaimed Property Act.
| ||
(5) The Commissioner may furnish
confidential | ||
supervisory
information relating to a bank or other
| ||
financial institution, which
the Commissioner has caused | ||
to be examined, relating to its
performance of obligations | ||
under the Illinois Income Tax Act and the
Illinois Estate | ||
and Generation-Skipping Transfer Tax Act to the Illinois
| ||
Department of Revenue.
| ||
(6) The Commissioner may furnish
confidential | ||
supervisory
information relating to a bank or other
| ||
financial institution, which
the Commissioner has caused | ||
to be examined, under the
federal Currency and Foreign | ||
Transactions Reporting Act,
Title 31, United States Code, | ||
Section 1051 et seq.
| ||
(6.5) The Commissioner may furnish
confidential | ||
supervisory
information to any other agency or entity that | ||
the Commissioner determines
to
have a legitimate | ||
regulatory interest.
| ||
(7) The Commissioner may furnish
confidential | ||
supervisory
information under any other
statute that by its | ||
terms or by regulations promulgated thereunder
requires |
the disclosure of financial records other than by subpoena,
| ||
summons, warrant, or court order.
| ||
(8) At the request of the affected bank or other | ||
financial institution,
the Commissioner may furnish
| ||
confidential supervisory
information relating to a bank or | ||
other financial
institution, which
the Commissioner has | ||
caused to be examined, in connection with the
obtaining of | ||
insurance coverage or the pursuit of an insurance claim for | ||
or on
behalf of the bank or other financial institution; | ||
provided that, when
possible, the Commissioner shall | ||
disclose only relevant information while
maintaining the | ||
confidentiality of financial records not relevant to such
| ||
insurance coverage or claim and, when appropriate, may | ||
delete identifying data
relating to any person or | ||
individual.
| ||
(9) The Commissioner may furnish a copy of a report of | ||
any examination
performed by the Commissioner of the | ||
condition and affairs of any
electronic data processing | ||
entity to the banks serviced by the electronic
data | ||
processing entity.
| ||
(10) In addition to the foregoing circumstances, the | ||
Commissioner may,
but is not required to, furnish
| ||
confidential supervisory information under the same | ||
circumstances authorized for
the bank or financial
| ||
institution pursuant to subsection
(b) of this Section, | ||
except that the Commissioner shall provide
confidential |
supervisory information under circumstances described in | ||
paragraph (3) of
subsection (b) of this Section only upon | ||
the request of the bank or other
financial institution.
| ||
(b) A bank or other financial institution or its officers, | ||
agents, and
employees may disclose
confidential supervisory | ||
information only under the
following circumstances:
| ||
(1) to the board of directors of the bank or other | ||
financial institution,
as well as the president, | ||
vice-president, cashier, and other officers of the
bank or | ||
other financial institution to whom the board of directors | ||
may delegate
duties with respect to compliance with | ||
recommendations for action, and to the board of directors | ||
of a bank holding company that owns at
least 80% of the | ||
outstanding stock of the bank or other financial | ||
institution;
| ||
(2) to attorneys for the bank or other financial | ||
institution and to a
certified public accountant engaged by | ||
the State bank or financial
institution to perform an | ||
independent audit provided that the attorney or
certified | ||
public accountant shall not permit the
confidential | ||
supervisory
information to be further disseminated;
| ||
(3) to any person who seeks to acquire a controlling | ||
interest in, or who
seeks to merge with, the
bank or | ||
financial institution, provided that all attorneys, | ||
certified public
accountants, officers, agents, or | ||
employees of that person shall agree to be
bound to respect |
the confidentiality of the
confidential supervisory
| ||
information and to not further disseminate the information | ||
therein contained;
| ||
(4) (blank); or
| ||
(5) to the bank's insurance company in relation to an | ||
insurance
claim or
the effort by the bank to procure | ||
insurance coverage, provided that, when
possible, the bank | ||
shall disclose only information that is relevant to the
| ||
insurance claim or that is necessary to procure the | ||
insurance coverage, while
maintaining the confidentiality | ||
of financial information pertaining to
customers. When | ||
appropriate, the bank may delete identifying data relating | ||
to
any person.
| ||
The disclosure of confidential supervisory information by | ||
a bank or other
financial institution pursuant to this | ||
subsection (b) and the disclosure of
information to the | ||
Commissioner or other regulatory agency in connection with
any | ||
examination, visitation, or investigation shall not constitute | ||
a waiver of
any legal privilege otherwise available to the bank | ||
or other financial
institution with respect to the information.
| ||
(c) (1) Notwithstanding any other provision of this Act
or | ||
any other law, confidential supervisory information shall be | ||
the property of
the Commissioner and shall be privileged from | ||
disclosure to any person except
as provided in this Section. No | ||
person in possession of confidential
supervisory information | ||
may disclose that information for any reason or under
any |
circumstances not specified in this Section without the prior | ||
authorization
of the
Commissioner. Any person upon whom a | ||
demand for production of confidential
supervisory information | ||
is made, whether by subpoena, order, or other judicial
or | ||
administrative process, must withhold production of the | ||
confidential
supervisory information and must notify the | ||
Commissioner of the demand, at
which time the Commissioner is | ||
authorized to intervene for the purpose of
enforcing the | ||
limitations of this Section or seeking the withdrawal or
| ||
termination of the attempt to compel production of the | ||
confidential
supervisory information.
| ||
(2) Any request for discovery or disclosure of confidential | ||
supervisory
information, whether by subpoena, order, or other | ||
judicial or administrative
process, shall be made to the | ||
Commissioner, and the Commissioner shall
determine within 15 | ||
days whether to disclose the information pursuant to
procedures | ||
and standards that the Commissioner shall establish by rule. If | ||
the
Commissioner determines that such information will not be | ||
disclosed, the
Commissioner's decision shall be subject to | ||
judicial review under the
provisions of the Administrative | ||
Review Law, and venue shall be in either
Sangamon County or | ||
Cook County.
| ||
(3) Any court order that compels disclosure of confidential | ||
supervisory
information may be immediately appealed by the | ||
Commissioner, and the order
shall
be automatically stayed | ||
pending the outcome of the appeal.
|
(d) If any officer, agent, attorney, or employee of a bank | ||
or
financial institution knowingly and willfully furnishes
| ||
confidential supervisory information in violation of this | ||
Section, the
Commissioner may impose a
civil monetary penalty | ||
up to $1,000 for the violation against
the officer, agent, | ||
attorney, or employee.
| ||
(Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)
| ||
(205 ILCS 5/65) (from Ch. 17, par. 377)
| ||
Sec. 65. Dividends; dissolution. From time to time during a | ||
receivership other than a receivership conducted by
the Federal | ||
Deposit Insurance Corporation, the Commissioner shall make and
| ||
pay from monies of the bank a ratable dividend on all claims as | ||
may be
proved to his or her satisfaction or adjudicated by the | ||
court. Claims so
proven or adjudicated shall bear interest at | ||
the rate of 3% per
annum from the date of the appointment of | ||
the receiver to the date of
payment, but all dividends on a | ||
claim shall be applied first to principal.
In computing the | ||
amount of any dividend to be paid, if the Commissioner
deems it | ||
desirable in the interests of economy of administration and
to | ||
the interest of the bank and its creditors, he or she may pay | ||
up to the
amount of $10 of each claim or unpaid portion thereof | ||
in full. As the
proceeds of the assets of the bank are | ||
collected in the course of
liquidation, the Commissioner shall | ||
make and pay further dividends on all
claims previously proven | ||
or adjudicated. After one year from the
entry of a judgment of |
dissolution, all unclaimed dividends shall be remitted
to the | ||
State Treasurer in accordance with the Revised Uniform | ||
Unclaimed
Property Act "Uniform Disposition of Unclaimed
| ||
Property Act" , as now or hereafter amended, together with a | ||
list of all unpaid
claimants, their last known addresses and | ||
the amounts unpaid.
| ||
(Source: P.A. 91-16, eff. 7-1-99.)
| ||
Section 17-55. The Savings Bank Act is amended by changing | ||
Sections 4013, 9012, and 10090 as follows:
| ||
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
| ||
Sec. 4013. Access to books and records; communication with | ||
members
and shareholders. | ||
(a) Every member or shareholder shall have the right to | ||
inspect books
and records of the savings bank that pertain to | ||
his accounts. Otherwise,
the right of inspection and | ||
examination of the books and records shall be
limited as | ||
provided in this Act, and no other person shall have access to
| ||
the books and records nor shall be entitled to a list of the | ||
members or
shareholders.
| ||
(b) For the purpose of this Section, the term "financial | ||
records" means
any original, any copy, or any summary of (1) a | ||
document granting signature
authority over a deposit or | ||
account; (2) a statement, ledger card, or other
record on any | ||
deposit or account that shows each transaction in or with
|
respect to that account; (3) a check, draft, or money order | ||
drawn on a
savings bank or issued and payable by a savings | ||
bank; or (4) any other item
containing information pertaining | ||
to any relationship established in the
ordinary course of a | ||
savings bank's business between a savings bank and
its | ||
customer, including financial statements or other financial | ||
information
provided by the member or shareholder.
| ||
(c) This Section does not prohibit:
| ||
(1) The preparation , examination, handling, or | ||
maintenance of any
financial records by any officer, | ||
employee, or agent of a savings bank
having custody of | ||
records or examination of records by a certified public
| ||
accountant engaged by the savings bank to perform an | ||
independent audit.
| ||
(2) The examination of any financial records by, or the | ||
furnishing of
financial records by a savings bank to, any | ||
officer, employee, or agent of
the Commissioner of Banks | ||
and Real Estate or the federal depository
institution | ||
regulator for use
solely in
the exercise of his duties as | ||
an officer, employee, or agent.
| ||
(3) The publication of data furnished from financial | ||
records relating
to members or holders of capital where the | ||
data cannot be identified to any
particular member, | ||
shareholder, or account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of the
Internal Revenue Code of 1986.
|
(5) Furnishing information concerning the dishonor of | ||
any negotiable
instrument permitted to be disclosed under | ||
the Uniform Commercial Code.
| ||
(6) The exchange in the regular course of business of | ||
(i) credit
information between a savings bank and other | ||
savings banks or financial
institutions or commercial | ||
enterprises, directly or through a consumer
reporting | ||
agency
or (ii) financial records or information derived | ||
from financial records
between a savings bank and other | ||
savings banks or financial institutions or
commercial | ||
enterprises for the purpose of conducting due diligence | ||
pursuant to
a purchase or sale involving the savings bank | ||
or assets or liabilities of the
savings bank.
| ||
(7) The furnishing of information to the appropriate | ||
law enforcement
authorities where the savings bank | ||
reasonably believes it has been the
victim of a crime.
| ||
(8) The furnishing of information pursuant to the | ||
Revised Uniform Disposition
of Unclaimed Property Act.
| ||
(9) The furnishing of information pursuant to the | ||
Illinois Income Tax
Act
and the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information pursuant to the | ||
federal " Currency
and Foreign Transactions Reporting Act " , | ||
(Title 31, United States Code,
Section 1051 et seq.).
| ||
(11) The furnishing of information pursuant to any | ||
other statute which
by its terms or by regulations |
promulgated thereunder requires the
disclosure of | ||
financial records other than by subpoena, summons, | ||
warrant, or
court order.
| ||
(12) The furnishing of information in accordance with | ||
the federal
Personal Responsibility and Work Opportunity | ||
Reconciliation Act of 1996.
Any savings bank governed by | ||
this Act shall enter into an agreement for data
exchanges | ||
with a State agency provided the State agency
pays to the | ||
savings bank a reasonable fee not to exceed its
actual cost | ||
incurred. A savings bank
providing
information in | ||
accordance with this item shall not be liable to any | ||
account
holder or other person for any disclosure of | ||
information to a State agency, for
encumbering or | ||
surrendering any assets held by the savings bank in | ||
response to
a lien
or order to withhold and deliver issued | ||
by a State agency, or for any other
action taken pursuant | ||
to this item, including individual or mechanical errors,
| ||
provided the action does not constitute gross negligence or | ||
willful misconduct.
A savings bank shall have no obligation | ||
to hold, encumber, or surrender
assets until
it has been | ||
served with a subpoena, summons, warrant, court or | ||
administrative
order,
lien, or levy.
| ||
(13) The furnishing of information to law enforcement | ||
authorities, the
Illinois Department on
Aging and its | ||
regional administrative and provider agencies, the | ||
Department of
Human Services Office
of Inspector General, |
or public guardians: (i) upon subpoena by the investigatory | ||
entity or the guardian, or (ii) if there is suspicion by | ||
the savings bank that a
customer who is an elderly
person | ||
or person with a disability has been or may become the | ||
victim of financial exploitation.
For the purposes of this
| ||
item (13), the term: (i) "elderly person" means a person | ||
who is 60 or more
years of age, (ii) "person with a | ||
disability" means a person who has or reasonably appears to | ||
the savings bank to
have a physical or mental
disability | ||
that impairs his or her ability to seek or obtain | ||
protection from or
prevent financial
exploitation, and | ||
(iii) "financial exploitation" means tortious or illegal | ||
use
of the assets or resources of
an elderly person or | ||
person with a disability, and includes, without | ||
limitation,
misappropriation of the assets or resources of | ||
the elderly person or person with a disability by undue | ||
influence, breach of fiduciary
relationship, intimidation,
| ||
fraud, deception, extortion, or the use of assets or | ||
resources in any manner
contrary to law. A savings
bank or | ||
person furnishing information pursuant to this item (13) | ||
shall be
entitled to the same rights and
protections as a | ||
person furnishing information under the Adult Protective | ||
Services Act and the Illinois
Domestic Violence Act of | ||
1986.
| ||
(14) The disclosure of financial records or | ||
information as necessary to
effect, administer, or enforce |
a transaction requested or authorized by the
member or | ||
holder of capital, or in connection with:
| ||
(A) servicing or processing a financial product or | ||
service requested or
authorized by the member or holder | ||
of capital;
| ||
(B) maintaining or servicing an account of a member | ||
or holder of capital
with the savings bank; or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including sales of servicing | ||
rights) related to a
transaction of a member or holder | ||
of capital.
| ||
Nothing in this item (14), however, authorizes the sale | ||
of the financial
records or information of a member or | ||
holder of capital without the consent of
the member or | ||
holder of capital.
| ||
(15) The exchange in the regular course of business of | ||
information between
a
savings bank and any commonly owned | ||
affiliate of the savings bank, subject to
the provisions of | ||
the Financial Institutions Insurance Sales Law.
| ||
(16) The disclosure of financial records or | ||
information as necessary to
protect against or prevent | ||
actual or potential fraud, unauthorized
transactions, | ||
claims, or other liability.
| ||
(17)(a) The disclosure of financial records or | ||
information
related to a private label credit program | ||
between a financial
institution and a private label party |
in connection
with that private label credit program. Such | ||
information
is limited to outstanding balance, available | ||
credit, payment and
performance and account history, | ||
product references, purchase
information,
and information | ||
related to the identity of the
customer.
| ||
(b)(1) For purposes of this paragraph (17) of | ||
subsection
(c) of Section 4013, a "private label credit | ||
program" means a
credit program involving a financial | ||
institution and a private label
party that is used by a | ||
customer of the financial institution and the
private label | ||
party primarily for payment for goods or services
sold, | ||
manufactured, or distributed by a private label party.
| ||
(2) For purposes of this paragraph (17) of subsection | ||
(c)
of Section 4013, a "private label party" means, with | ||
respect to a
private label credit program, any of the | ||
following: a
retailer, a merchant, a manufacturer, a trade | ||
group,
or any such person's affiliate, subsidiary, member,
| ||
agent, or service provider.
| ||
(d) A savings bank may not disclose to any person, except | ||
to the member
or holder of capital or his duly authorized | ||
agent, any financial records
relating to that member or | ||
shareholder of the savings bank unless:
| ||
(1) the member or shareholder has authorized | ||
disclosure to the person; or
| ||
(2) the financial records are disclosed in response to | ||
a lawful
subpoena, summons, warrant, citation to discover |
assets, or court order that meets the requirements of
| ||
subsection (e) of this Section.
| ||
(e) A savings bank shall disclose financial records under | ||
subsection (d)
of this Section pursuant to a lawful subpoena, | ||
summons, warrant, citation to discover assets, or court
order | ||
only after the savings bank mails a copy of the subpoena, | ||
summons,
warrant, citation to discover assets, or court order | ||
to the person establishing the relationship with
the savings | ||
bank, if living, and otherwise, his personal representative, if
| ||
known, at his last known address by first class mail, postage | ||
prepaid,
unless the savings bank is specifically prohibited | ||
from notifying the
person by order of court.
| ||
(f) Any officer or employee of a savings bank who knowingly | ||
and
willfully furnishes financial records in violation of this | ||
Section is
guilty of a business offense and, upon conviction, | ||
shall be fined not
more than $1,000.
| ||
(g) Any person who knowingly and willfully induces or | ||
attempts to
induce any officer or employee of a savings bank to | ||
disclose financial
records in violation of this Section is | ||
guilty of a business offense and,
upon conviction, shall be | ||
fined not more than $1,000.
| ||
(h) If any member or shareholder desires to communicate | ||
with the other
members or shareholders of the savings bank with | ||
reference to any question
pending or to be presented at an | ||
annual or special meeting, the savings
bank shall give that | ||
person, upon request, a statement of the approximate
number of |
members or shareholders entitled to vote at the meeting and an
| ||
estimate of the cost of preparing and mailing the | ||
communication. The
requesting member shall submit the | ||
communication to the Commissioner
who, upon finding it to be | ||
appropriate and truthful, shall direct that it
be prepared and | ||
mailed to the members upon the requesting member's or
| ||
shareholder's payment or adequate provision for payment of the | ||
expenses of
preparation and mailing.
| ||
(i) A savings bank shall be reimbursed for costs that are | ||
necessary and
that have been directly incurred in searching | ||
for, reproducing, or
transporting books, papers, records, or | ||
other data of a customer required
to be reproduced pursuant to | ||
a lawful subpoena, warrant, citation to discover assets, or | ||
court order.
| ||
(j) Notwithstanding the provisions of this Section, a | ||
savings bank may
sell or otherwise make use of lists of | ||
customers' names and addresses. All
other information | ||
regarding a customer's account is are subject to the
disclosure | ||
provisions of this Section. At the request of any customer,
| ||
that customer's name and address shall be deleted from any list | ||
that is to
be sold or used in any other manner beyond | ||
identification of the customer's
accounts.
| ||
(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15; revised | ||
9-14-16.)
| ||
(205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
|
Sec. 9012.
Disclosure of reports of examinations and | ||
confidential
supervisory information; limitations.
| ||
(a) Any report of examination, visitation, or | ||
investigation prepared by
the
Commissioner
under this Act, any | ||
report of examination, visitation, or investigation
prepared | ||
by the state
regulatory authority of another state that | ||
examines a branch of an Illinois
State savings bank in
that | ||
state, any document or record prepared or obtained in | ||
connection with or
relating to any
examination, visitation, or | ||
investigation, and any record prepared or obtained
by the
| ||
Commissioner to the extent that the record summarizes or | ||
contains information
derived from
any report, document, or | ||
record described in this subsection shall be deemed
| ||
confidential
supervisory information. "Confidential | ||
supervisory information" shall not
include any information or
| ||
record routinely prepared by a savings bank and maintained in | ||
the ordinary
course of business or any
information or record | ||
that is required to be made publicly available pursuant
to | ||
State or federal law
or rule. Confidential supervisory | ||
information shall be the property of the
Commissioner and shall
| ||
only be disclosed under the circumstances and for the purposes | ||
set forth in
this Section.
| ||
The Commissioner may disclose confidential supervisory | ||
information only under
the following
circumstances:
| ||
(1) The Commissioner may furnish confidential | ||
supervisory information to
federal and state
depository |
institution regulators, or any official or examiner | ||
thereof duly
accredited for the
purpose. Nothing contained | ||
in this Act shall be construed to limit the
obligation of | ||
any savings
bank to comply with the requirements relative | ||
to examinations and reports nor
to limit in any way
the | ||
powers of the Commissioner relative to examinations and | ||
reports.
| ||
(2) The Commissioner may furnish confidential | ||
supervisory information to
the United
States or any agency | ||
thereof that to any extent has insured a savings bank's
| ||
deposits, or any
official or examiner thereof duly | ||
accredited for the purpose. Nothing contained
in this Act | ||
shall be
construed to limit the obligation relative to | ||
examinations and reports of any
savings bank
in which | ||
deposits are to any extent insured by the United States or | ||
any agency
thereof
nor to limit in any way
the powers of | ||
the Commissioner with reference to examination and reports | ||
of the
savings bank.
| ||
(3) The Commissioner may furnish confidential | ||
supervisory information to
the appropriate
law enforcement | ||
authorities when the Commissioner reasonably believes a | ||
savings
bank, which the
Commissioner has caused to be | ||
examined, has been a victim of a crime.
| ||
(4) The Commissioner may furnish confidential | ||
supervisory information
related
to a
savings bank, which | ||
the Commissioner has caused to be examined, to the
|
administrator of the Revised
Uniform Disposition of | ||
Unclaimed Property Act.
| ||
(5) The Commissioner may furnish confidential | ||
supervisory information
relating to a
savings bank, which | ||
the Commissioner has caused to be examined, relating to its
| ||
performance
of obligations under the Illinois Income Tax | ||
Act and the Illinois Estate and
Generation-Skipping
| ||
Transfer Tax Act to the Illinois Department of Revenue.
| ||
(6) The Commissioner may furnish confidential | ||
supervisory information
relating to a
savings bank, which | ||
the Commissioner has caused to be examined, under the
| ||
federal Currency
and Foreign Transactions Reporting Act, | ||
31 United States Code, Section
1051 et seq.
| ||
(7) The Commissioner may furnish confidential | ||
supervisory information to
any other agency
or entity that | ||
the Commissioner determines to have a legitimate | ||
regulatory
interest.
| ||
(8) The Commissioner may furnish confidential | ||
supervisory information as
otherwise
permitted or required | ||
by this Act and may furnish confidential supervisory
| ||
information under any
other statute that by its terms or by | ||
regulations promulgated thereunder
requires the disclosure
| ||
of financial records other than by subpoena, summons, | ||
warrant, or court order.
| ||
(9) At the request of the affected savings bank, the | ||
Commissioner may
furnish confidential
supervisory |
information relating to the savings bank, which the | ||
Commissioner
has caused to be
examined, in connection with | ||
the obtaining of insurance coverage or the pursuit
of an | ||
insurance
claim for or on behalf of the savings bank; | ||
provided that, when possible, the
Commissioner shall
| ||
disclose only relevant information while maintaining the | ||
confidentiality of
financial records
not relevant to such | ||
insurance coverage or claim and, when appropriate, may
| ||
delete identifying data
relating to any person.
| ||
(10) The Commissioner may furnish a copy of a report of | ||
any examination
performed by
the Commissioner of the | ||
condition and affairs of any electronic data processing
| ||
entity to the
savings banks serviced by the electronic data | ||
processing entity.
| ||
(11) In addition to the foregoing circumstances, the | ||
Commissioner may, but
is not
required to, furnish | ||
confidential supervisory information under the same
| ||
circumstances authorized
for the savings bank pursuant to | ||
subsection (b) of this Section, except that
the | ||
Commissioner shall
provide confidential supervisory | ||
information under circumstances described in
paragraph (3) | ||
of
subsection (b) of this Section only upon the request of | ||
the savings bank.
| ||
(b) A savings bank or its officers, agents, and employees | ||
may disclose
confidential
supervisory information only under | ||
the following circumstances:
|
(1) to the board of directors of the savings bank, as | ||
well as the
president, vice-president,
cashier, and other | ||
officers of the savings bank to whom the board of directors
| ||
may delegate
duties with respect to compliance with | ||
recommendations for action, and to the
board of
directors | ||
of a savings bank holding company that owns at least 80% of | ||
the
outstanding stock of the
savings bank or other | ||
financial institution.
| ||
(2) to attorneys for the savings bank and to a | ||
certified public
accountant engaged by the
savings bank to | ||
perform an independent audit; provided that the attorney or
| ||
certified public
accountant shall not permit the | ||
confidential supervisory information to be
further | ||
disseminated.
| ||
(3) to any person who seeks to acquire a controlling | ||
interest in, or who
seeks to merge with,
the savings bank; | ||
provided that the person shall agree to be bound to respect
| ||
the confidentiality
of the confidential supervisory | ||
information and to not further disseminate the
information
| ||
other than to attorneys, certified public accountants, | ||
officers, agents, or
employees of that
person who likewise | ||
shall agree to be bound to respect the confidentiality of
| ||
the confidential
supervisory information and to not | ||
further disseminate the information.
| ||
(4) to the savings bank's insurance company, if the | ||
supervisory
information contains
information that is |
otherwise unavailable and is strictly necessary to
| ||
obtaining insurance coverage or
pursuing an insurance | ||
claim for or on behalf of the savings bank; provided
that, | ||
when possible, the
savings bank shall disclose only | ||
information that is relevant to obtaining
insurance | ||
coverage or
pursuing an insurance claim, while maintaining | ||
the confidentiality of financial
information
pertaining to | ||
customers; and provided further that, when appropriate, | ||
the
savings bank may delete
identifying data relating to
| ||
any person.
| ||
The disclosure of confidential supervisory information by | ||
a savings bank
pursuant to this
subsection (b) and the | ||
disclosure of information to the Commissioner or other
| ||
regulatory agency in
connection with any examination, | ||
visitation, or investigation shall not
constitute a waiver of | ||
any
legal privilege otherwise available to the savings bank | ||
with respect to the
information.
| ||
(c) (1) Notwithstanding any other provision of this Act or | ||
any other law,
confidential
supervisory information shall be | ||
the property of the Commissioner and shall be
privileged from
| ||
disclosure to any person except as provided in this Section. No | ||
person in
possession of
confidential supervisory information | ||
may disclose that information for any
reason or under any
| ||
circumstances not specified in this Section without the prior | ||
authorization of
the Commissioner.
Any person upon whom a | ||
demand for production of confidential supervisory
information |
is made,
whether by subpoena, order, or other judicial or | ||
administrative process, must
withhold
production of the | ||
confidential supervisory information and must notify the
| ||
Commissioner of the
demand, at which time the Commissioner is | ||
authorized to intervene for the
purpose of
enforcing the | ||
limitations of this Section or seeking the withdrawal or
| ||
termination of the attempt to
compel production of the | ||
confidential supervisory information.
| ||
(2) Any request for discovery or disclosure of confidential | ||
supervisory
information, whether
by subpoena, order, or other | ||
judicial or administrative process, shall be made
to the
| ||
Commissioner, and the Commissioner shall determine within 15 | ||
days whether to
disclose the
information pursuant to procedures | ||
and standards that the Commissioner shall
establish by rule. If
| ||
the Commissioner determines that such information will not be | ||
disclosed, the
Commissioner's
decision shall be subject to | ||
judicial review under the provisions of the
Administrative | ||
Review
Law, and venue shall be in either Sangamon County or | ||
Cook County.
| ||
(3) Any court order that compels disclosure of confidential | ||
supervisory
information may be
immediately appealed by the | ||
Commissioner, and the order shall be automatically
stayed | ||
pending the
outcome of the appeal.
| ||
(d) If any officer, agent, attorney, or employee of a | ||
savings bank knowingly
and willfully
furnishes confidential | ||
supervisory information in violation of this Section,
the
|
Commissioner may impose a civil monetary penalty up to $1,000 | ||
for the violation
against
the officer, agent, attorney, or | ||
employee.
| ||
(e) Subject to the limits of this Section, the
| ||
Commissioner also may promulgate regulations to set procedures | ||
and
standards for
disclosure of
the
following items:
| ||
(1) All fixed orders and opinions made in cases of
| ||
appeals of the Commissioner's actions.
| ||
(2) Statements of policy and interpretations adopted | ||
by
the Commissioner's office, but not otherwise made | ||
public.
| ||
(3) Nonconfidential portions of application files,
| ||
including applications for new charters. The Commissioner
| ||
shall specify by rule as to what part of the files are
| ||
confidential.
| ||
(4) Quarterly reports of income, deposits, and | ||
financial
condition.
| ||
(Source: P.A. 93-271, eff. 7-22-03.)
| ||
(205 ILCS 205/10090) | ||
Sec. 10090. Dividends; dissolution. From time to time | ||
during a receivership other than a receivership conducted by | ||
the Federal Deposit Insurance Corporation, the Secretary shall | ||
make and pay from moneys of the savings bank a ratable dividend | ||
on all claims as may be proved to his or her satisfaction or | ||
adjudicated by the court. Claims so proven or adjudicated shall |
bear interest at the rate of 3% per annum from the date of the | ||
appointment of the receiver to the date of payment, but all | ||
dividends on a claim shall be applied first to principal. In | ||
computing the amount of any dividend to be paid, if the | ||
Secretary deems it desirable in the interests of economy of | ||
administration and to the interest of the savings bank and its | ||
creditors, he or she may pay up to the amount of $10 of each | ||
claim or unpaid portion thereof in full. As the proceeds of the | ||
assets of the savings bank are collected in the course of | ||
liquidation, the Secretary shall make and pay further dividends | ||
on all claims previously proven or adjudicated. After one year | ||
from the entry of a judgment of dissolution, all unclaimed | ||
dividends shall be remitted to the State Treasurer in | ||
accordance with the Revised Uniform Disposition of Unclaimed | ||
Property Act, as now or hereafter amended, together with a list | ||
of all unpaid claimants, their last known addresses and the | ||
amounts unpaid.
| ||
(Source: P.A. 96-1365, eff. 7-28-10.) | ||
Section 17-60. The Illinois Credit Union Act is amended by | ||
changing Sections 10 and 62 as follows:
| ||
(205 ILCS 305/10) (from Ch. 17, par. 4411)
| ||
Sec. 10. Credit union records; member financial records.
| ||
(1) A credit union shall establish and maintain books, | ||
records, accounting
systems and procedures which accurately |
reflect its operations and which
enable the Department to | ||
readily ascertain the true financial condition
of the credit | ||
union and whether it is complying with this Act.
| ||
(2) A photostatic or photographic reproduction of any | ||
credit union records
shall be admissible as evidence of | ||
transactions with the credit union.
| ||
(3)(a) For the purpose of this Section, the term "financial | ||
records"
means any original, any copy, or any summary of (1) a | ||
document granting
signature authority over an account, (2) a | ||
statement, ledger card or other
record on any account which | ||
shows each transaction in or with respect to
that account, (3) | ||
a check, draft or money order drawn on a financial
institution | ||
or other entity or issued and payable by or through a financial
| ||
institution or other entity, or (4) any other item containing | ||
information
pertaining to any relationship established in the | ||
ordinary course of
business between a credit union and its | ||
member, including financial
statements or other financial | ||
information provided by the member.
| ||
(b) This Section does not prohibit:
| ||
(1) The preparation, examination, handling or | ||
maintenance of any
financial records by any officer, | ||
employee or agent of a credit union
having custody of such | ||
records, or the examination of such records by a
certified | ||
public accountant engaged by the credit union to perform an
| ||
independent audit.
| ||
(2) The examination of any financial records by or the |
furnishing of
financial records by a credit union to any | ||
officer, employee or agent of
the Department, the National | ||
Credit Union Administration, Federal Reserve
board or any | ||
insurer of share accounts for use solely in the exercise of
| ||
his duties as an officer, employee or agent.
| ||
(3) The publication of data furnished from financial | ||
records relating
to members where the data cannot be | ||
identified to any particular customer
of account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of the
Internal Revenue Code of 1954.
| ||
(5) Furnishing information concerning the dishonor of | ||
any negotiable
instrument permitted to be disclosed under | ||
the Uniform Commercial
Code.
| ||
(6) The exchange in the regular course of business
of | ||
(i) credit information
between a credit union and other | ||
credit unions or financial institutions
or commercial | ||
enterprises, directly or through a consumer reporting | ||
agency
or (ii) financial records or information derived | ||
from financial records
between a credit union and other | ||
credit unions or financial institutions or
commercial | ||
enterprises for
the purpose of conducting due diligence | ||
pursuant to a merger or a purchase or
sale of assets or | ||
liabilities of the credit union.
| ||
(7) The furnishing of information to the appropriate | ||
law enforcement
authorities where the credit union | ||
reasonably believes it has been the victim
of a crime.
|
(8) The furnishing of information pursuant to the | ||
Revised Uniform Disposition
of Unclaimed Property Act.
| ||
(9) The furnishing of information pursuant to the | ||
Illinois Income Tax
Act and the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information pursuant to the | ||
federal "Currency
and Foreign Transactions Reporting Act", | ||
Title 31, United States Code,
Section 1051 et sequentia.
| ||
(11) The furnishing of information pursuant to any | ||
other statute which
by its terms or by regulations | ||
promulgated thereunder requires the disclosure
of | ||
financial records other than by subpoena, summons, warrant | ||
or court order.
| ||
(12) The furnishing of information in accordance with | ||
the federal
Personal Responsibility and Work Opportunity | ||
Reconciliation Act of 1996.
Any credit union governed by | ||
this Act shall enter into an agreement for data
exchanges | ||
with a State agency provided the State agency
pays to the | ||
credit union a reasonable fee not to exceed its
actual cost | ||
incurred. A credit union
providing
information in | ||
accordance with this item shall not be liable to any | ||
account
holder or other person for any disclosure of | ||
information to a State agency, for
encumbering or | ||
surrendering any assets held by the credit union in | ||
response to
a lien
or order to withhold and deliver issued | ||
by a State agency, or for any other
action taken pursuant |
to this item, including individual or mechanical errors,
| ||
provided the action does not constitute gross negligence or | ||
willful misconduct.
A credit union shall have no obligation | ||
to hold, encumber, or surrender
assets until
it has been | ||
served with a subpoena, summons, warrant, court or | ||
administrative
order, lien, or levy.
| ||
(13) The furnishing of information to law enforcement | ||
authorities, the
Illinois Department on
Aging and its | ||
regional administrative and provider agencies, the | ||
Department of
Human Services Office
of Inspector General, | ||
or public guardians: (i) upon subpoena by the investigatory | ||
entity or the guardian, or (ii) if there is suspicion by | ||
the credit union that a
member who is an elderly person or | ||
person with a disability has been or may become the victim | ||
of financial exploitation.
For the purposes of this
item | ||
(13), the term: (i) "elderly person" means a person who is | ||
60 or more
years of age, (ii) "person with a disability" | ||
means a person who has or reasonably appears to the credit | ||
union to
have a physical or mental
disability that impairs | ||
his or her ability to seek or obtain protection from or
| ||
prevent financial
exploitation, and (iii) "financial | ||
exploitation" means tortious or illegal use
of the assets | ||
or resources of
an elderly person or person with a | ||
disability, and includes, without limitation,
| ||
misappropriation of the elderly or
disabled person's | ||
assets or resources by undue influence, breach of fiduciary
|
relationship, intimidation,
fraud, deception, extortion, | ||
or the use of assets or resources in any manner
contrary to | ||
law. A credit
union or person furnishing information | ||
pursuant to this item (13) shall be
entitled to the same | ||
rights and
protections as a person furnishing information | ||
under the Adult Protective Services Act and the Illinois
| ||
Domestic Violence Act of 1986.
| ||
(14) The disclosure of financial records or | ||
information as necessary
to
effect, administer, or enforce | ||
a transaction requested or authorized by the
member, or in | ||
connection with:
| ||
(A) servicing or processing a financial product or | ||
service requested
or
authorized by the member;
| ||
(B) maintaining or servicing a member's account | ||
with the credit union;
or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including sales of servicing | ||
rights) related to a
transaction of a member.
| ||
Nothing in this item (14), however, authorizes the sale | ||
of the financial
records or information of a member without | ||
the consent of the member.
| ||
(15) The disclosure of financial records or | ||
information as necessary to
protect against or prevent | ||
actual or potential fraud, unauthorized
transactions, | ||
claims, or other liability.
| ||
(16)(a) The disclosure of financial records or |
information
related to a private label credit program | ||
between a financial
institution and a private label party | ||
in connection
with that private label credit program. Such | ||
information
is limited to outstanding balance, available | ||
credit, payment and
performance and account history, | ||
product references, purchase
information,
and information | ||
related to the identity of the
customer.
| ||
(b)(1) For purposes of this paragraph (16) of | ||
subsection
(b) of Section 10, a "private label credit | ||
program" means a credit
program involving a financial | ||
institution and a private label party
that is used by a | ||
customer of the financial institution and the
private label | ||
party primarily for payment for goods or services
sold, | ||
manufactured, or distributed by a private label party.
| ||
(2) For purposes of this paragraph (16) of subsection | ||
(b)
of Section 10, a "private label party" means, with | ||
respect to a
private label credit program, any of the | ||
following: a
retailer, a merchant, a manufacturer, a trade | ||
group,
or any such person's affiliate, subsidiary, member,
| ||
agent, or service provider.
| ||
(c) Except as otherwise provided by this Act, a credit | ||
union may not
disclose to any person, except to the member
or | ||
his duly authorized agent, any financial records relating to | ||
that member
of the credit union unless:
| ||
(1) the member has authorized disclosure to the person;
| ||
(2) the financial records are disclosed in response to |
a lawful
subpoena,
summons, warrant, citation to discover | ||
assets, or court order that meets the requirements of | ||
subparagraph
(d) of this Section; or
| ||
(3) the credit union is attempting to collect an | ||
obligation owed to
the credit union and the credit union | ||
complies with the provisions of
Section 2I of the Consumer | ||
Fraud and Deceptive Business Practices Act.
| ||
(d) A credit union shall disclose financial records under | ||
subparagraph
(c)(2) of this Section pursuant to a lawful | ||
subpoena, summons, warrant, citation to discover assets, or
| ||
court order only after the credit union mails a copy of the | ||
subpoena, summons,
warrant, citation to discover assets, or | ||
court order to the person establishing the relationship with
| ||
the credit union, if living, and otherwise his personal | ||
representative,
if known, at his last known address by first | ||
class mail, postage prepaid
unless the credit union is | ||
specifically prohibited from notifying the person
by order of | ||
court or by applicable State or federal law. In the case
of a | ||
grand jury subpoena, a credit union shall not mail a copy of a | ||
subpoena
to any person pursuant to this subsection if the | ||
subpoena was issued by a grand
jury under the Statewide Grand | ||
Jury Act or notifying the
person would constitute a violation | ||
of the federal Right to Financial
Privacy Act of 1978.
| ||
(e)(1) Any officer or employee of a credit union who | ||
knowingly and
wilfully furnishes financial records in | ||
violation of this Section is guilty of
a business offense and |
upon conviction thereof shall be fined not more than
$1,000.
| ||
(2) Any person who knowingly and wilfully induces or | ||
attempts to induce
any officer or employee of a credit union to | ||
disclose financial records
in violation of this Section is | ||
guilty of a business offense and upon
conviction thereof shall | ||
be fined not more than $1,000.
| ||
(f) A credit union shall be reimbursed for costs which are | ||
reasonably
necessary and which have been directly incurred in | ||
searching for,
reproducing or transporting books, papers, | ||
records or other data of a
member required or requested to be | ||
produced pursuant to a lawful subpoena,
summons, warrant, | ||
citation to discover assets, or court order. The Secretary and | ||
the Director may determine, by rule, the
rates and
conditions | ||
under which payment shall be made. Delivery of requested | ||
documents
may be delayed until final reimbursement of all costs | ||
is received.
| ||
(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15 .)
| ||
(205 ILCS 305/62) (from Ch. 17, par. 4463)
| ||
Sec. 62. Liquidation.
| ||
(1) A credit union may elect to dissolve voluntarily
and | ||
liquidate its affairs in the manner prescribed in this Section.
| ||
(2) The board of directors shall adopt a resolution | ||
recommending the credit
union be dissolved voluntarily, and | ||
directing that the question of liquidating
be submitted to the | ||
members.
|
(3) Within 10 days after the board of directors decides to | ||
submit the
question of liquidation to the members, the chairman | ||
or president shall
notify the Secretary thereof, in writing, | ||
setting forth the reasons for the
proposed action. Within 10 | ||
days after the members act on the question of
liquidation, the | ||
chairman or president shall notify the Secretary, in writing,
| ||
as to whether or not the members approved the proposed | ||
liquidation. The Secretary
then must determine whether this | ||
Section has been complied with
and if his decision is | ||
favorable, he shall prepare a certificate to the
effect that | ||
this Section has been complied with, a copy of which will be
| ||
retained by the Department and the other copy forwarded to the | ||
credit union.
The certificate must be filed with the recorder | ||
or if there is
no recorder, in the office of the county clerk | ||
of the county or counties in
which the credit union is | ||
operating, whereupon the credit union must cease
operations | ||
except for the purpose of its liquidation.
| ||
(4) As soon as the board of directors passes a resolution | ||
to submit the
question of liquidation to the members, payment | ||
on shares, withdrawal of
shares, making any transfer of shares | ||
to loans and interest, making investments
of any kind and | ||
granting loans shall be suspended pending action by members.
On | ||
approval by the members of such proposal, all such operations | ||
shall be
permanently discontinued. The necessary expenses of | ||
operating shall, however,
continue to be paid on authorization | ||
of the board of directors or the liquidating agent
during the |
period of liquidation.
| ||
(5) For a credit union to enter voluntary liquidation, it | ||
must be approved
by affirmative vote of the members owning a | ||
majority of the shares entitled
to vote, in person or by proxy, | ||
at a regular or special meeting of the members.
Notice, in | ||
writing, shall be given to each member, by first class mail,
at | ||
least 10 days prior to such meeting. If liquidation is | ||
approved, the board of directors
shall appoint a liquidating | ||
agent for the purpose of
conserving and collecting the assets, | ||
closing the affairs of the credit
union and distributing the | ||
assets as required by this Act.
| ||
(6) A liquidating credit union shall continue in existence | ||
for the purpose
of discharging its debts, collecting and | ||
distributing its assets, and doing
all acts required in order | ||
to terminate its operations and may sue and be
sued for the | ||
purpose of enforcing such debts and obligations until its | ||
affairs
are fully adjusted.
| ||
(7) Subject to such rules and regulations as the Secretary | ||
may promulgate,
the liquidating agent shall use the assets of | ||
the credit union to pay; first,
expenses incidental to | ||
liquidating including any surety bond that may be
required; | ||
then, liabilities of the credit union; then special classes of
| ||
shares. The remaining assets shall then be distributed to the | ||
members
proportionately to the dollar value of the shares held | ||
by each member in
relation to the total dollar value of all | ||
shares outstanding as of the date the
dissolution was voted.
|
(8) As soon as the liquidating agent determines that all | ||
assets as to
which there is a reasonable expectancy of sale or | ||
transfer have been liquidated
and distributed as set forth in | ||
this Section, he shall execute a certificate
of dissolution on | ||
a form prescribed by the Department and file the same,
together | ||
with all pertinent books and records of the liquidating credit
| ||
union with the Department, whereupon such credit union shall be | ||
dissolved.
The liquidating agent must, within 3 years after | ||
issuance of a certificate
by the Secretary referred to in | ||
Subsection (3) of this Section, discharge
the debts of the | ||
credit union, collect and distribute its assets and do
all | ||
other acts required to wind up its business.
| ||
(9) If the Secretary determines that the liquidating agent | ||
has failed to
make reasonable progress in the liquidating of | ||
the credit union's affairs
and distribution of its assets or | ||
has violated this Act, the Secretary may
take possession and | ||
control of the credit union and remove the liquidating agent | ||
and appoint a liquidating agent to complete the liquidation | ||
under
his direction and control. The Secretary shall fill any | ||
vacancy caused by
the resignation, death, illness, removal, | ||
desertion or incapacity to function
of the liquidating agent.
| ||
(10) Any funds representing unclaimed dividends and shares | ||
in liquidation
and remaining in the hands of the board of | ||
directors or the liquidating agent at the end of the | ||
liquidation must be deposited by them, together with
all books | ||
and papers of the credit union, with the State Treasurer in
|
compliance with the Revised Uniform Disposition of Unclaimed | ||
Property Act , approved
August 17, 1961, as amended .
| ||
(Source: P.A. 97-133, eff. 1-1-12.)
| ||
Section 17-65. The Currency Exchange Act is amended by | ||
changing Sections 15.1b and 19.3 as follows:
| ||
(205 ILCS 405/15.1b) (from Ch. 17, par. 4827)
| ||
Sec. 15.1b. Liquidation; distribution; priority. The | ||
General Assembly
finds and declares that community currency
| ||
exchanges provide important and vital services to Illinois | ||
citizens. The
General Assembly also finds that in providing | ||
such services, community currency
exchanges transact extensive | ||
business involving check cashing and the writing
of money | ||
orders in communities in which banking services are generally
| ||
unavailable. It is therefore declared to be the policy of this | ||
State that customers who
receive these services must be | ||
protected from insolvencies of currency
exchanges and | ||
interruptions of services. To carry out this policy and to | ||
insure that
customers of community currency exchanges are | ||
protected in the event it
is determined that a community | ||
currency exchange in receivership should
be liquidated in | ||
accordance with Section 15.1a of this Act, the Secretary
shall | ||
make a distribution of moneys collected by the receiver in the | ||
following
order of priority: First, allowed claims for the | ||
actual necessary expenses
of the receivership of the community |
currency exchange being liquidated,
including (a) reasonable | ||
receiver fees and receiver's attorney's fees approved
by the | ||
Secretary, (b) all expenses of any preliminary or other | ||
examinations
into the condition of the community currency | ||
exchange or receivership,
(c) all expenses incurred by the | ||
Secretary which are incident to possession
and control of any | ||
property or records of the community currency exchange, and
(d) | ||
reasonable expenses incurred by the Secretary as the result of | ||
business
agreements or contractual arrangements necessary to | ||
insure that the services
of the community currency exchanges | ||
are delivered to the community without
interruption. Said | ||
business agreements or contractual arrangements may
include, | ||
but are not limited to, agreements made by the Secretary, or by
| ||
the Receiver with the approval of the Secretary, with banks, | ||
money order
companies, bonding companies and other types of | ||
financial institutions;
Second, allowed claims by a purchaser | ||
of money orders issued on demand of
the community currency | ||
exchange being liquidated; Third, allowed claims
arising by | ||
virtue of and to the extent of the amount a utility customer
| ||
deposits with the community currency exchange being liquidated | ||
which are
not remitted to the utility company; Fourth,
allowed | ||
claims arising by virtue of and to the extent of the amount | ||
paid
by a purchaser of Illinois license plates, vehicle | ||
stickers sold for
State and municipal governments in Illinois, | ||
and temporary
Illinois registration permits purchased at the | ||
currency exchange being
liquidated; Fifth, allowed unsecured |
claims for
wages or salaries, excluding vacation, severance and | ||
sick leave pay earned
by employee earned within 90 days prior | ||
to the appointment of a Receiver;
Sixth, secured claims; | ||
Seventh, allowed unsecured claims of any tax, and interest and | ||
penalty on
the tax; Eighth, allowed unsecured claims other than | ||
a kind specified in
paragraph one, two and three of this | ||
Section, filed with the Secretary within
the time the Secretary | ||
fixes for filing claims; Ninth, allowed unsecured
claims, other | ||
than a kind specified in paragraphs one, two and three of this
| ||
Section filed with the Secretary after the time fixed for | ||
filing claims
by the Secretary; Tenth, allowed creditor
claims | ||
asserted by an owner, member, or stockholder of the community
| ||
currency exchange
in liquidation; Eleventh, after one year from | ||
the final dissolution of the
currency exchange, all assets not | ||
used to satisfy allowed claims shall be
distributed pro rata to | ||
the owner, owners, members, or stockholders of the
currency | ||
exchange.
| ||
The Secretary shall pay all claims of equal priority | ||
according to the schedule
set out above, and shall not pay | ||
claims of lower priority until all higher
priority claims are | ||
satisfied. If insufficient assets are available to
meet all | ||
claims of equal priority, those assets shall be distributed pro
| ||
rata among those claims. All unclaimed assets of a currency | ||
exchange shall
be deposited with the Secretary to be paid out | ||
by him when proper claims
therefor are presented to the | ||
Secretary. If there are funds remaining after the conclusion of |
a receivership of an abandoned currency exchange, the remaining | ||
funds shall be considered unclaimed property and remitted to | ||
the State Treasurer under the Revised Uniform Disposition of | ||
Unclaimed Property Act.
| ||
(Source: P.A. 97-315, eff. 1-1-12.)
| ||
(205 ILCS 405/19.3) (from Ch. 17, par. 4838)
| ||
Sec. 19.3. (A) The General Assembly hereby finds and | ||
declares: community
currency exchanges and ambulatory currency | ||
exchanges provide important and
vital services to Illinois | ||
citizens. In so doing, they transact extensive
business | ||
involving check cashing and the writing of money orders in | ||
communities
in which banking services are generally | ||
unavailable. Customers of currency
exchanges who receive these | ||
services must be protected from being charged
unreasonable and | ||
unconscionable rates for cashing checks and purchasing
money | ||
orders. The Illinois Department of Financial and Professional | ||
Regulation has the
responsibility for regulating the | ||
operations of currency exchanges and has
the expertise to | ||
determine reasonable maximum rates to be charged for check
| ||
cashing and money order purchases. Therefore, it is in the | ||
public interest,
convenience, welfare and good to have the | ||
Department establish reasonable
maximum rate schedules for | ||
check cashing and the issuance of money orders
and to require | ||
community and ambulatory currency exchanges to prominently
| ||
display to the public the fees charged for all services.
The |
Secretary shall review, each year, the cost of operation of the | ||
Currency
Exchange Section and the revenue generated from | ||
currency exchange
examinations and report to the General | ||
Assembly if the need exists for an
increase in the fees | ||
mandated by this Act to maintain the Currency Exchange Section
| ||
at a fiscally self-sufficient level. The Secretary shall | ||
include
in such report the total amount of funds remitted to | ||
the State and delivered
to the State Treasurer by currency | ||
exchanges pursuant to the Revised Uniform
Disposition of | ||
Unclaimed Property Act.
| ||
(B) The Secretary shall, by rules adopted in accordance | ||
with the Illinois
Administrative Procedure Act, expeditiously | ||
formulate and issue schedules of
reasonable maximum rates which | ||
can be charged for check cashing and writing of
money orders by | ||
community currency exchanges and ambulatory currency | ||
exchanges.
| ||
(1) In determining the maximum rate schedules for the | ||
purposes of this
Section the Secretary shall take into | ||
account:
| ||
(a) Rates charged in the past for the cashing of | ||
checks and the issuance
of money orders by community | ||
and ambulatory currency exchanges.
| ||
(b) Rates charged by banks or other business | ||
entities for rendering the
same or similar services and | ||
the factors upon which those rates are based.
| ||
(c) The income, cost and expense of the operation |
of currency exchanges.
| ||
(d) Rates charged by currency exchanges or other | ||
similar entities
located in other states for the same | ||
or similar services and the factors upon
which those | ||
rates are based.
| ||
(e) Rates charged by the United States Postal | ||
Service for the issuing
of money orders and the factors | ||
upon which those rates are based.
| ||
(f) A reasonable profit for a currency exchange | ||
operation.
| ||
(2)(a) The schedule of reasonable maximum rates | ||
established pursuant
to this Section may be modified by the | ||
Secretary from time to time pursuant
to rules adopted in | ||
accordance with the Illinois Administrative Procedure Act.
| ||
(b) Upon the filing of a verified petition setting | ||
forth allegations
demonstrating reasonable cause to | ||
believe that the schedule of maximum rates
previously | ||
issued and promulgated should be adjusted, the Secretary | ||
shall
expeditiously:
| ||
(i) reject the petition if it fails to demonstrate | ||
reasonable cause to
believe that an adjustment is | ||
necessary; or
| ||
(ii) conduct such hearings, in accordance with | ||
this Section, as may be
necessary to determine whether | ||
the petition should be granted in whole or in
part.
| ||
(c) No petition may be filed pursuant to subparagraph |
(a) of paragraph
(2) of subsection (B) unless:
| ||
(i) at least nine months have expired since the | ||
last promulgation of
schedules of maximum rates; and
| ||
(ii) at least one-fourth of all community currency | ||
exchange licensees
join in a petition or, in the case | ||
of ambulatory currency exchanges, a licensee
or | ||
licensees authorized to serve at least 100 locations | ||
join in a petition.
| ||
(3) Any currency exchange may charge lower fees than | ||
those of the
applicable maximum fee schedule after filing | ||
with the Secretary a schedule of
fees it proposes to use.
| ||
(Source: P.A. 97-315, eff. 1-1-12.)
| ||
Section 17-70. The Corporate Fiduciary Act is amended by | ||
changing Section 6-14 as follows:
| ||
(205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)
| ||
Sec. 6-14.
From time to time during receivership the
| ||
Commissioner shall make and pay from monies of the corporate
| ||
fiduciary a ratable dividend on all claims as may be proved to
| ||
his or her satisfaction or adjudicated by the court. After one
| ||
year from the entry of a judgment of dissolution, all unclaimed
| ||
dividends shall be remitted to the State Treasurer in | ||
accordance with the Revised
Uniform Disposition of Unclaimed | ||
Property Act, as now or hereafter amended,
together with a list | ||
of all unpaid claimants, their last known addresses and
the |
amounts unpaid.
| ||
(Source: P.A. 91-16, eff. 7-1-99.)
| ||
Section 17-75. The Transmitters of Money Act is amended by | ||
changing Section 30 as follows:
| ||
(205 ILCS 657/30)
| ||
Sec. 30. Surety bond.
| ||
(a) An applicant for a license shall post and a
licensee | ||
must maintain with the Director a bond or bonds issued by | ||
corporations
qualified to do business as surety companies in | ||
this State.
| ||
(b) The applicant or licensee shall post a bond in the | ||
amount of the greater
of $100,000
or an amount equal to the | ||
daily average of outstanding payment instruments
for the | ||
preceding 12 months or operational history, whichever is | ||
shorter, up to
a maximum amount of $2,000,000. When the amount | ||
of the required bond exceeds
$1,000,000, the applicant or | ||
licensee may, in the alternative, post a bond in
the amount of | ||
$1,000,000 plus a dollar for dollar increase in the net worth | ||
of
the applicant or licensee over and above the amount required | ||
in Section 20, up
to a total amount of $2,000,000.
| ||
(c) The bond must be in a form satisfactory to the Director | ||
and shall run
to the State of Illinois for the benefit of any | ||
claimant against the applicant
or licensee with respect to the | ||
receipt, handling, transmission, and payment
of money by the |
licensee or authorized seller in connection with the licensed
| ||
operations. A claimant damaged by a breach of the conditions of | ||
a
bond
shall have a right to action upon the bond for damages | ||
suffered thereby and
may bring suit directly on the bond, or | ||
the Director may bring suit on
behalf of the claimant.
| ||
(d) (Blank).
| ||
(e) (Blank).
| ||
(f) After receiving a license, the licensee must maintain
| ||
the required bond plus net worth (if applicable) until
5 years | ||
after it ceases to do business in this State unless all | ||
outstanding
payment instruments are eliminated or the | ||
provisions under the Revised Uniform
Disposition
of Unclaimed | ||
Property Act have become operative and are adhered to by the
| ||
licensee. Notwithstanding this provision, however, the amount | ||
required to be
maintained may be reduced to the extent that the | ||
amount of the licensee's
payment instruments outstanding in | ||
this State are reduced.
| ||
(g) If the Director at any time reasonably determines that | ||
the required bond
is insecure, deficient in amount, or
| ||
exhausted in
whole or in part, he may in writing require the | ||
filing of a new or supplemental
bond in order to secure | ||
compliance with this Act and may
demand compliance with the | ||
requirement within 30 days following
service on the licensee.
| ||
(Source: P.A. 92-400, eff. 1-1-02.)
| ||
Section 17-80. The Adverse Claims to Deposit Accounts Act |
is amended by changing Section 10 as follows:
| ||
(205 ILCS 700/10)
| ||
Sec. 10. Application of Act. This Act shall not preempt:
| ||
(1) the Revised Uniform Disposition of Unclaimed Property | ||
Act, nor shall any
provision of this Act be construed to | ||
relieve any holder, including a financial
institution, from | ||
reporting and remitting all unclaimed property, including
| ||
deposit accounts, under the Revised Uniform Disposition of | ||
Unclaimed Property Act;
| ||
(2) the Uniform Commercial Code, nor shall any provision of | ||
this Act be
construed as affecting the rights of a person with | ||
respect to a deposit account
under the Uniform Commercial Code;
| ||
(3) the provisions of Section 2-1402 of the Code of Civil | ||
Procedure, nor
shall any provision of this Act be construed as | ||
affecting the rights of a
person with respect to a deposit | ||
account under Section 2-1402 of the Code of
Civil Procedure;
| ||
(4) the provisions of Part 7 of Article II of the Code of | ||
Civil Procedure,
nor shall any provision of this Act be | ||
construed as affecting the rights of a
person with respect to a | ||
deposit account under the provisions of Part 7 of
Article II of | ||
the Code of Civil Procedure;
| ||
(5) the provisions of Article XXV of the Probate Act of | ||
1975, nor shall any
provision of this Act be construed as | ||
affecting the rights of a person with
respect to a deposit | ||
account under the provisions of Article XXV of the
Probate Act |
of 1975; or
| ||
(6) the Safety Deposit Box Opening Act, nor shall any | ||
provision of this Act
be construed as affecting the rights of a | ||
person with respect to a deposit
account under the Safety | ||
Deposit Box Opening Act.
| ||
(Source: P.A. 89-601, eff. 8-2-96.)
| ||
Section 17-85. The Illinois Insurance Code is amended by | ||
changing Section 210 as follows:
| ||
(215 ILCS 5/210) (from Ch. 73, par. 822)
| ||
Sec. 210. Distribution of assets; priorities; unpaid | ||
dividends.
| ||
(1) Any time after the last day fixed for the filing of
| ||
proofs of claims in the liquidation of a company, the court | ||
may, upon the
application of the Director authorize him to | ||
declare out of the funds
remaining in his hands, one or more | ||
dividends upon all claims allowed in
accordance with the | ||
priorities established in Section 205.
| ||
(2) Where there has been no adjudication of insolvency, the | ||
Director
shall pay all allowed claims in full in accordance | ||
with the priorities set
forth in Section 205. The director | ||
shall not be chargeable for any
assets so distributed to any | ||
claimant who has failed to file a proper proof
of claim before | ||
such distribution has been made.
| ||
(3) When subsequent to an adjudication of insolvency, |
pursuant to Section
208, a surplus is found to exist after the | ||
payment in full of all allowed
claims falling within the | ||
priorities set forth in paragraphs (a), (b), (c),
(d),
(e), (f) | ||
and (g) of subsection (1) of Section 205 and which have been | ||
duly
filed prior to the last date fixed for the filing thereof, | ||
and after the
setting aside of a reserve for all additional | ||
costs and expenses of the
proceeding, the court shall set a new | ||
date for the filing of claims. After the
expiration of the new | ||
date, all allowed claims filed on or before said new date
| ||
together with all previously allowed claims falling within the | ||
priorities set
forth in paragraphs (h) and (i) of subsection | ||
(1) of Section 205 shall be paid
in accordance with the | ||
priorities set forth in Section 205.
| ||
(4) Dividends remaining unclaimed or unpaid in the hands of | ||
the
Director for 6 months after the final order of distribution | ||
may be
by him deposited in one or more savings and loan | ||
associations, State or
national banks, trust companies or | ||
savings banks to the credit of the Director,
whomsoever he may | ||
be, in trust for the person entitled thereto, but no such
| ||
person shall be entitled to any interest upon such deposit. All | ||
such deposits
shall be entitled to priority of payment in case | ||
of the insolvency or voluntary
or involuntary liquidation of | ||
the depositary on an equality with any other
priority given by | ||
the banking law. Any such funds together with interest, if
any, | ||
paid or credited thereon, remaining and unclaimed in the hands | ||
of the
Director in Trust after 2 years shall be presumed |
abandoned and reported and
delivered to the State Treasurer and | ||
become subject to the provisions of the Revised
Uniform | ||
Disposition of Unclaimed Property Act.
| ||
(Source: P.A. 91-16, eff. 7-1-99.)
| ||
Section 17-90. The Unclaimed Life Insurance Benefits Act is | ||
amended by changing Sections 5, 15, and 20 as follows: | ||
(215 ILCS 185/5)
| ||
Sec. 5. Purpose. This Act shall require recognition of the | ||
Revised Uniform Disposition of Unclaimed Property Act and | ||
require the complete and proper disclosure, transparency, and | ||
accountability relating to any method of payment for life | ||
insurance, annuity, or retained asset agreement death | ||
benefits.
| ||
(Source: P.A. 99-893, eff. 1-1-17 .) | ||
(215 ILCS 185/15)
| ||
Sec. 15. Insurer conduct. | ||
(a) An insurer shall initially perform a comparison of its | ||
insureds', annuitants', and retained asset account holders' | ||
in-force policies, annuity contracts, and retained asset | ||
accounts by using the full Death Master File. The initial | ||
comparison shall be completed on or before December 31, 2017, | ||
unless extended by the Department pursuant to administrative | ||
rule. Thereafter, an insurer shall perform a comparison on at |
least a semi-annual basis using the Death Master File update | ||
files for comparisons to identify potential matches of its | ||
insureds, annuitants, and retained asset account holders. In | ||
the event that one of the insurer's lines of business conducts | ||
a search for matches of its insureds, annuitants, and retained | ||
asset account holders against the Death Master File at | ||
intervals more frequently than semi-annually, then all lines of | ||
the insurer's business shall conduct searches for matches | ||
against the Death Master File with the same frequency. | ||
An insured, an annuitant, or a retained asset account | ||
holder is presumed dead if the date of his or her death is | ||
indicated by the comparison required in this subsection (a), | ||
unless the insurer has competent and substantial evidence that | ||
the person is living, including, but not limited to, a contact | ||
made by the insurer with the person or his or her legal | ||
representative. | ||
For those potential matches identified as a result of a | ||
Death Master File match, the insurer shall within 120 days | ||
after the date of death notice, if the insurer has not been | ||
contacted by a beneficiary, determine whether benefits are due | ||
in accordance with the applicable policy or contract and, if | ||
benefits are due in accordance with the applicable policy or | ||
contract: | ||
(1) use good faith efforts, which shall be documented | ||
by the insurer, to locate the beneficiary or beneficiaries; | ||
the Department shall establish by administrative rule |
minimum standards for what constitutes good faith efforts | ||
to locate a beneficiary, which shall include: (A) searching | ||
insurer records; (B) the appropriate use of First Class | ||
United States mail, e-mail addresses, and telephone calls; | ||
and (C) reasonable efforts by insurers to obtain updated | ||
contact information for the beneficiary or beneficiaries; | ||
good faith efforts shall not include additional attempts to | ||
contact the beneficiary at an address already confirmed not | ||
to be current; and | ||
(2) provide the appropriate claims forms or | ||
instructions to the beneficiary or beneficiaries to make a | ||
claim, including the need to provide an official death | ||
certificate if applicable under the policy or annuity | ||
contract. | ||
(b) Insurers shall implement procedures to account for the | ||
following when conducting searches of the Death Master File: | ||
(1) common nicknames, initials used in lieu of a first | ||
or middle name, use of a middle name, compound first and | ||
middle names, and interchanged first and middle names; | ||
(2) compound last names, maiden or married names, and | ||
hyphens, blank spaces, or apostrophes in last names; | ||
(3) transposition of the "month" and "date" portions of | ||
the date of birth; and | ||
(4) incomplete social security numbers. | ||
(c) To the extent permitted by law, an insurer may disclose | ||
the minimum necessary personal information about the insured, |
annuity owner, retained asset account holder, or beneficiary to | ||
a person whom the insurer reasonably believes may be able to | ||
assist the insurer with locating the beneficiary or a person | ||
otherwise entitled to payment of the claims proceeds. | ||
(d) An insurer or its service provider shall not charge any | ||
beneficiary or other authorized representative for any fees or | ||
costs associated with a Death Master File search or | ||
verification of a Death Master File match conducted pursuant to | ||
this Act. | ||
(e) The benefits from a policy, annuity contract, or a | ||
retained asset account, plus any applicable accrued interest, | ||
shall first be payable to the designated beneficiaries or | ||
owners and, in the event the beneficiaries or owners cannot be | ||
found, shall be reported and delivered to the State Treasurer | ||
pursuant to the Revised Uniform Disposition of Unclaimed | ||
Property Act. Nothing in this subsection (e) is intended to | ||
alter the amounts reportable under the existing provisions of | ||
the Revised Uniform Disposition of Unclaimed Property Act or to | ||
allow the imposition of additional statutory interest under | ||
Article XIV of the Illinois Insurance Code. | ||
(f) Failure to meet any requirement of this Section with | ||
such frequency as to constitute a general business practice is | ||
a violation of Section 424 of the Illinois Insurance Code. | ||
Nothing in this Section shall be construed to create or imply a | ||
private cause of action for a violation of this Section.
| ||
(Source: P.A. 99-893, eff. 1-1-17 .) |
(215 ILCS 185/20)
| ||
Sec. 20. Revised Uniform Disposition of Unclaimed Property | ||
Act. Nothing in this Act shall be construed to amend, modify, | ||
or supersede the Revised Uniform Disposition of Unclaimed | ||
Property Act, including the authority of the State Treasurer to | ||
examine the records of any person if the State Treasurer has | ||
reason to believe that such person has failed to report | ||
property that should have been reported pursuant to the Revised | ||
Uniform Disposition of Unclaimed Property Act.
| ||
(Source: P.A. 99-893, eff. 1-1-17 .) | ||
Section 17-95. The Real Estate License Act of 2000 is | ||
amended by changing Section 20-20 as follows:
| ||
(225 ILCS 454/20-20)
| ||
(Section scheduled to be repealed on January 1, 2020)
| ||
Sec. 20-20. Grounds for discipline. | ||
(a) The Department may refuse to issue or renew a license, | ||
may place on probation, suspend,
or
revoke any
license, | ||
reprimand, or take any other disciplinary or non-disciplinary | ||
action as the Department may deem proper and impose a
fine not | ||
to exceed
$25,000 upon any licensee or applicant under this Act | ||
or any person who holds himself or herself out as an applicant | ||
or licensee or against a licensee in handling his or her own | ||
property, whether held by deed, option, or otherwise, for any |
one or any combination of the
following causes:
| ||
(1) Fraud or misrepresentation in applying for, or | ||
procuring, a license under this Act or in connection with | ||
applying for renewal of a license under this Act.
| ||
(2) The conviction of or plea of guilty or plea of nolo | ||
contendere to a felony or misdemeanor in this State or any | ||
other jurisdiction; or the entry of an administrative | ||
sanction by a government agency in this State or any other | ||
jurisdiction. Action taken under this paragraph (2) for a | ||
misdemeanor or an administrative sanction is limited to a | ||
misdemeanor or administrative sanction that has as an
| ||
essential element dishonesty or fraud or involves larceny, | ||
embezzlement,
or obtaining money, property, or credit by | ||
false pretenses or by means of a
confidence
game.
| ||
(3) Inability to practice the profession with | ||
reasonable judgment, skill, or safety as a result of a | ||
physical illness, including, but not limited to, | ||
deterioration through the aging process or loss of motor | ||
skill, or a mental illness or disability.
| ||
(4) Practice under this Act as a licensee in a retail | ||
sales establishment from an office, desk, or space that
is | ||
not
separated from the main retail business by a separate | ||
and distinct area within
the
establishment.
| ||
(5) Having been disciplined by another state, the | ||
District of Columbia, a territory, a foreign nation, or a | ||
governmental agency authorized to impose discipline if at |
least one of the grounds for that discipline is the same as | ||
or
the
equivalent of one of the grounds for which a | ||
licensee may be disciplined under this Act. A certified | ||
copy of the record of the action by the other state or | ||
jurisdiction shall be prima facie evidence thereof.
| ||
(6) Engaging in the practice of real estate brokerage
| ||
without a
license or after the licensee's license was | ||
expired or while the license was
inoperative.
| ||
(7) Cheating on or attempting to subvert the Real
| ||
Estate License Exam or continuing education exam. | ||
(8) Aiding or abetting an applicant
to
subvert or cheat | ||
on the Real Estate License Exam or continuing education | ||
exam
administered pursuant to this Act.
| ||
(9) Advertising that is inaccurate, misleading, or | ||
contrary to the provisions of the Act.
| ||
(10) Making any substantial misrepresentation or | ||
untruthful advertising.
| ||
(11) Making any false promises of a character likely to | ||
influence,
persuade,
or induce.
| ||
(12) Pursuing a continued and flagrant course of | ||
misrepresentation or the
making
of false promises through | ||
licensees, employees, agents, advertising, or
otherwise.
| ||
(13) Any misleading or untruthful advertising, or | ||
using any trade name or
insignia of membership in any real | ||
estate organization of which the licensee is
not a member.
| ||
(14) Acting for more than one party in a transaction |
without providing
written
notice to all parties for whom | ||
the licensee acts.
| ||
(15) Representing or attempting to represent a broker | ||
other than the
sponsoring broker.
| ||
(16) Failure to account for or to remit any moneys or | ||
documents coming into
his or her possession that belong to | ||
others.
| ||
(17) Failure to maintain and deposit in a special | ||
account, separate and
apart from
personal and other | ||
business accounts, all escrow moneys belonging to others
| ||
entrusted to a licensee
while acting as a broker, escrow | ||
agent, or temporary custodian of
the funds of others or
| ||
failure to maintain all escrow moneys on deposit in the | ||
account until the
transactions are
consummated or | ||
terminated, except to the extent that the moneys, or any | ||
part
thereof, shall be: | ||
(A)
disbursed prior to the consummation or | ||
termination (i) in accordance with
the
written | ||
direction of
the principals to the transaction or their | ||
duly authorized agents, (ii) in accordance with
| ||
directions providing for the
release, payment, or | ||
distribution of escrow moneys contained in any written
| ||
contract signed by the
principals to the transaction or | ||
their duly authorized agents,
or (iii)
pursuant to an | ||
order of a court of competent
jurisdiction; or | ||
(B) deemed abandoned and transferred to the Office |
of the State Treasurer to be handled as unclaimed | ||
property pursuant to the Revised Uniform Disposition | ||
of Unclaimed Property Act. Escrow moneys may be deemed | ||
abandoned under this subparagraph (B) only: (i) in the | ||
absence of disbursement under subparagraph (A); (ii) | ||
in the absence of notice of the filing of any claim in | ||
a court of competent jurisdiction; and (iii) if 6 | ||
months have elapsed after the receipt of a written | ||
demand for the escrow moneys from one of the principals | ||
to the transaction or the principal's duly authorized | ||
agent.
| ||
The account
shall be noninterest
bearing, unless the | ||
character of the deposit is such that payment of interest
| ||
thereon is otherwise
required by law or unless the | ||
principals to the transaction specifically
require, in | ||
writing, that the
deposit be placed in an interest bearing | ||
account.
| ||
(18) Failure to make available to the Department all | ||
escrow records and related documents
maintained in | ||
connection
with the practice of real estate within 24 hours | ||
of a request for those
documents by Department personnel.
| ||
(19) Failing to furnish copies upon request of | ||
documents relating to a
real
estate transaction to a party | ||
who has executed that document.
| ||
(20) Failure of a sponsoring broker to timely provide | ||
information, sponsor
cards,
or termination of licenses to |
the Department.
| ||
(21) Engaging in dishonorable, unethical, or | ||
unprofessional conduct of a
character
likely to deceive, | ||
defraud, or harm the public.
| ||
(22) Commingling the money or property of others with | ||
his or her own money or property.
| ||
(23) Employing any person on a purely temporary or | ||
single deal basis as a
means
of evading the law regarding | ||
payment of commission to nonlicensees on some
contemplated
| ||
transactions.
| ||
(24) Permitting the use of his or her license as a | ||
broker to enable a
leasing agent or
unlicensed person to | ||
operate a real estate business without actual
| ||
participation therein and control
thereof by the broker.
| ||
(25) Any other conduct, whether of the same or a | ||
different character from
that
specified in this Section, | ||
that constitutes dishonest dealing.
| ||
(26) Displaying a "for rent" or "for sale" sign on any | ||
property without
the written
consent of an owner or his or | ||
her duly authorized agent or advertising by any
means that | ||
any property is
for sale or for rent without the written | ||
consent of the owner or his or her
authorized agent.
| ||
(27) Failing to provide information requested by the | ||
Department, or otherwise respond to that request, within 30 | ||
days of
the
request.
| ||
(28) Advertising by means of a blind advertisement, |
except as otherwise
permitted in Section 10-30 of this Act.
| ||
(29) Offering guaranteed sales plans, as defined in | ||
clause (A) of
this subdivision (29), except to
the extent | ||
hereinafter set forth:
| ||
(A) A "guaranteed sales plan" is any real estate | ||
purchase or sales plan
whereby a licensee enters into a | ||
conditional or unconditional written contract
with a | ||
seller, prior to entering into a brokerage agreement | ||
with the seller, by the
terms of which a licensee | ||
agrees to purchase a property of the seller within a
| ||
specified period of time
at a specific price in the | ||
event the property is not sold in accordance with
the | ||
terms of a brokerage agreement to be entered into | ||
between the sponsoring broker and the seller.
| ||
(B) A licensee offering a guaranteed sales plan | ||
shall provide the
details
and conditions of the plan in | ||
writing to the party to whom the plan is
offered.
| ||
(C) A licensee offering a guaranteed sales plan | ||
shall provide to the
party
to whom the plan is offered | ||
evidence of sufficient financial resources to
satisfy | ||
the commitment to
purchase undertaken by the broker in | ||
the plan.
| ||
(D) Any licensee offering a guaranteed sales plan | ||
shall undertake to
market the property of the seller | ||
subject to the plan in the same manner in
which the | ||
broker would
market any other property, unless the |
agreement with the seller provides
otherwise.
| ||
(E) The licensee cannot purchase seller's property | ||
until the brokerage agreement has ended according to | ||
its terms or is otherwise terminated. | ||
(F) Any licensee who fails to perform on a | ||
guaranteed sales plan in
strict accordance with its | ||
terms shall be subject to all the penalties provided
in | ||
this Act for
violations thereof and, in addition, shall | ||
be subject to a civil fine payable
to the party injured | ||
by the
default in an amount of up to $25,000.
| ||
(30) Influencing or attempting to influence, by any | ||
words or acts, a
prospective
seller, purchaser, occupant, | ||
landlord, or tenant of real estate, in connection
with | ||
viewing, buying, or
leasing real estate, so as to promote | ||
or tend to promote the continuance
or maintenance of
| ||
racially and religiously segregated housing or so as to | ||
retard, obstruct, or
discourage racially
integrated | ||
housing on or in any street, block, neighborhood, or | ||
community.
| ||
(31) Engaging in any act that constitutes a violation | ||
of any provision of
Article 3 of the Illinois Human Rights | ||
Act, whether or not a complaint has
been filed with or
| ||
adjudicated by the Human Rights Commission.
| ||
(32) Inducing any party to a contract of sale or lease | ||
or brokerage
agreement to
break the contract of sale or | ||
lease or brokerage agreement for the purpose of
|
substituting, in lieu
thereof, a new contract for sale or | ||
lease or brokerage agreement with a third
party.
| ||
(33) Negotiating a sale, exchange, or lease of real | ||
estate directly with
any person
if the licensee knows that | ||
the person has an exclusive brokerage
agreement with | ||
another
broker, unless specifically authorized by that | ||
broker.
| ||
(34) When a licensee is also an attorney, acting as the | ||
attorney for
either the
buyer or the seller in the same | ||
transaction in which the licensee is acting or
has acted as | ||
a managing broker
or broker.
| ||
(35) Advertising or offering merchandise or services | ||
as free if any
conditions or
obligations necessary for | ||
receiving the merchandise or services are not
disclosed in | ||
the same
advertisement or offer. These conditions or | ||
obligations include without
limitation the
requirement | ||
that the recipient attend a promotional activity or visit a | ||
real
estate site. As used in this
subdivision (35), "free" | ||
includes terms such as "award", "prize", "no charge",
"free | ||
of charge",
"without charge", and similar words or phrases | ||
that reasonably lead a person to
believe that he or she
may | ||
receive or has been selected to receive something of value, | ||
without any
conditions or
obligations on the part of the | ||
recipient.
| ||
(36) Disregarding or violating any provision of the | ||
Land Sales
Registration Act of 1989, the Illinois Real |
Estate
Time-Share Act, or the published rules promulgated | ||
by the Department to enforce
those Acts.
| ||
(37) Violating the terms of a disciplinary order
issued | ||
by the Department.
| ||
(38) Paying or failing to disclose compensation in | ||
violation of Article 10 of this Act.
| ||
(39) Requiring a party to a transaction who is not a | ||
client of the
licensee
to allow the licensee to retain a | ||
portion of the escrow moneys for payment of
the licensee's | ||
commission or expenses as a condition for release of the | ||
escrow
moneys to that party.
| ||
(40) Disregarding or violating any provision of this | ||
Act or the published
rules
promulgated by the Department to | ||
enforce this Act or aiding or abetting any individual,
| ||
partnership, registered limited liability partnership, | ||
limited liability
company, or corporation in
disregarding | ||
any provision of this Act or the published rules | ||
promulgated by the Department
to enforce this Act.
| ||
(41) Failing to provide the minimum services required | ||
by Section 15-75 of this Act when acting under an exclusive | ||
brokerage agreement.
| ||
(42) Habitual or excessive use or addiction to alcohol, | ||
narcotics, stimulants, or any other chemical agent or drug | ||
that results in a managing broker, broker, or leasing | ||
agent's inability to practice with reasonable skill or | ||
safety. |
(43) Enabling, aiding, or abetting an auctioneer, as | ||
defined in the Auction License Act, to conduct a real | ||
estate auction in a manner that is in violation of this | ||
Act. | ||
(b) The Department may refuse to issue or renew or may | ||
suspend the license of any person who fails to file a return, | ||
pay the tax, penalty or interest shown in a filed return, or | ||
pay any final assessment of tax, penalty, or interest, as | ||
required by any tax Act administered by the Department of | ||
Revenue, until such time as the requirements of that tax Act | ||
are satisfied in accordance with subsection (g) of Section | ||
2105-15 of the Civil Administrative Code of Illinois. | ||
(c) The Department shall deny a license or renewal | ||
authorized by this Act to a person who has defaulted on an | ||
educational loan or scholarship provided or guaranteed by the | ||
Illinois Student Assistance Commission or any governmental | ||
agency of this State in accordance with item (5) of subsection | ||
(a) of Section 2105-15 of the Civil Administrative Code of | ||
Illinois. | ||
(d) In cases where the Department of Healthcare and Family | ||
Services (formerly Department of Public Aid) has previously | ||
determined that a licensee or a potential licensee is more than | ||
30 days delinquent in the payment of child support and has | ||
subsequently certified the delinquency to the Department may | ||
refuse to issue or renew or may revoke or suspend that person's | ||
license or may take other disciplinary action against that |
person based solely upon the certification of delinquency made | ||
by the Department of Healthcare and Family Services in | ||
accordance with item (5) of subsection (a) of Section 2105-15 | ||
of the Civil Administrative Code of Illinois. | ||
(e) In enforcing this Section, the Department or Board upon | ||
a showing of a possible violation may compel an individual | ||
licensed to practice under this Act, or who has applied for | ||
licensure under this Act, to submit to a mental or physical | ||
examination, or both, as required by and at the expense of the | ||
Department. The Department or Board may order the examining | ||
physician to present testimony concerning the mental or | ||
physical examination of the licensee or applicant. No | ||
information shall be excluded by reason of any common law or | ||
statutory privilege relating to communications between the | ||
licensee or applicant and the examining physician. The | ||
examining physicians shall be specifically designated by the | ||
Board or Department. The individual to be examined may have, at | ||
his or her own expense, another physician of his or her choice | ||
present during all aspects of this examination. Failure of an | ||
individual to submit to a mental or physical examination, when | ||
directed, shall be grounds for suspension of his or her license | ||
until the individual submits to the examination if the | ||
Department finds, after notice and hearing, that the refusal to | ||
submit to the examination was without reasonable cause. | ||
If the Department or Board finds an individual unable to | ||
practice because of the reasons set forth in this Section, the |
Department or Board may require that individual to submit to | ||
care, counseling, or treatment by physicians approved or | ||
designated by the Department or Board, as a condition, term, or | ||
restriction for continued, reinstated, or renewed licensure to | ||
practice; or, in lieu of care, counseling, or treatment, the | ||
Department may file, or the Board may recommend to the | ||
Department to file, a complaint to immediately suspend, revoke, | ||
or otherwise discipline the license of the individual. An | ||
individual whose license was granted, continued, reinstated, | ||
renewed, disciplined or supervised subject to such terms, | ||
conditions, or restrictions, and who fails to comply with such | ||
terms, conditions, or restrictions, shall be referred to the | ||
Secretary for a determination as to whether the individual | ||
shall have his or her license suspended immediately, pending a | ||
hearing by the Department. | ||
In instances in which the Secretary immediately suspends a | ||
person's license under this Section, a hearing on that person's | ||
license must be convened by the Department within 30 days after | ||
the suspension and completed without appreciable delay. The | ||
Department and Board shall have the authority to review the | ||
subject individual's record of treatment and counseling | ||
regarding the impairment to the extent permitted by applicable | ||
federal statutes and regulations safeguarding the | ||
confidentiality of medical records. | ||
An individual licensed under this Act and affected under | ||
this Section shall be afforded an opportunity to demonstrate to |
the Department or Board that he or she can resume practice in | ||
compliance with acceptable and prevailing standards under the | ||
provisions of his or her license. | ||
(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14; | ||
99-227, eff. 8-3-15.)
| ||
Section 17-100. The Code of Criminal Procedure of 1963 is | ||
amended by changing Section 110-17 as follows:
| ||
(725 ILCS 5/110-17) (from Ch. 38, par. 110-17)
| ||
Sec. 110-17. Unclaimed Bail Deposits. Notwithstanding the
| ||
provisions of the Revised Uniform Disposition of Unclaimed | ||
Property Act, any sum
of money deposited by any person to | ||
secure his release from custody which
remains unclaimed by the | ||
person entitled to its return for 3
years after the conditions | ||
of the bail bond have been performed
and the accused has been | ||
discharged from all obligations in the
cause shall be presumed | ||
to be abandoned.
| ||
(a) The clerk of the circuit court, as soon thereafter as
| ||
practicable, shall cause notice to be published once, in | ||
English, in a
newspaper or newspapers of general circulation in | ||
the county wherein the
deposit of bond was received.
| ||
(b) The published notice shall be entitled "Notice of | ||
Persons
Appearing to be Owners of Abandoned Property" and shall | ||
contain:
| ||
(1) The names, in alphabetical order, of persons to |
whom the notice
is directed.
| ||
(2) A statement that information concerning the amount | ||
of the property
may be obtained by any persons possessing | ||
an interest in the property by
making an inquiry at the | ||
office of the clerk of the circuit court at a
location | ||
designated by him.
| ||
(3) A statement that if proof of claim is not presented | ||
by the owner to
the clerk of the circuit court and if the | ||
owner's right to receive the
property is not established to | ||
the satisfaction of the clerk of the court
within 65 days | ||
from the date of the published notice, the abandoned
| ||
property will be placed in the custody of the treasurer of | ||
the county, not
later than 85 days after such publication, | ||
to whom all further claims must
thereafter be directed. If | ||
the claim is established as aforesaid and after
deducting | ||
an amount not to exceed $20 to cover the cost of notice
| ||
publication and related clerical expenses, the clerk of the | ||
court shall
make payment to the person entitled thereto.
| ||
(4) The clerk of the circuit court is not required to | ||
publish in such
notice any items of less than $100 unless | ||
he deems such publication in the
public interest.
| ||
(c) Any clerk of the circuit court who has caused notice to | ||
be published
as provided by this Section shall, within 20 days | ||
after the time specified
in this Section for claiming the | ||
property from the clerk of the court, pay
or deliver to the | ||
treasurer of the county having jurisdiction of the
offense, |
whether the bond was taken there or any other county, all sums
| ||
deposited as specified in this section less such amounts as may | ||
have been
returned to the persons whose rights to receive the | ||
sums deposited have
been established to the satisfaction of the | ||
clerk of the circuit court.
Any clerk of the circuit court who | ||
transfers such sums to the county
treasury including sums | ||
deposited by persons whose names are not required
to be set | ||
forth in the published notice aforesaid, is relieved of all
| ||
liability for such sums as have been transferred as unclaimed | ||
bail deposits
or any claim which then exists or which | ||
thereafter may arise or be made in
respect to such sums.
| ||
(d) The treasurer of the county shall keep just and true | ||
accounts of all
moneys paid into the treasury, and if any | ||
person appears within 5 years
after the deposit of moneys by | ||
the clerk of the circuit court and claims
any money paid into | ||
the treasury, he shall file a claim therefor on the
form | ||
prescribed by the treasurer of the county who shall consider | ||
any claim
filed under this Act and who may, in his discretion, | ||
hold a hearing and
receive evidence concerning it. The | ||
treasurer of the county shall prepare
a finding and the | ||
decision in writing on each hearing, stating the substance
of | ||
any evidence heard by him, his findings of fact in respect | ||
thereto, and
the reasons for his decision. The decision shall | ||
be a public record.
| ||
(e) All claims which are not filed within the 5 year period | ||
shall
be forever barred.
|
(Source: P.A. 85-768.)
| ||
Section 17-105. The Probate Act of 1975 is amended by | ||
changing Sections 2-1 and 2-2 as follows:
| ||
(755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1)
| ||
Sec. 2-1. Rules of descent and distribution. The intestate | ||
real and
personal estate of a resident decedent and the | ||
intestate real estate in
this State of a nonresident decedent, | ||
after all just claims against his
estate are fully paid, | ||
descends and shall be distributed as follows:
| ||
(a) If there is a surviving spouse and also a descendant of | ||
the
decedent: 1/2 of the entire estate to the surviving spouse | ||
and 1/2 to
the decedent's descendants per stirpes.
| ||
(b) If there is no surviving spouse but a descendant of the
| ||
decedent: the entire estate to the decedent's descendants per | ||
stirpes.
| ||
(c) If there is a surviving spouse but no descendant of the
| ||
decedent: the entire estate to the surviving spouse.
| ||
(d) If there is no surviving spouse or descendant but a | ||
parent,
brother, sister or descendant of a brother or sister of | ||
the decedent:
the entire estate to the parents, brothers and | ||
sisters of the decedent
in equal parts, allowing to the | ||
surviving parent if one is dead a double
portion and to the | ||
descendants of a deceased brother or sister per
stirpes the | ||
portion which the deceased brother or sister would have
taken |
if living.
| ||
(e) If there is no surviving spouse, descendant, parent, | ||
brother,
sister or descendant of a brother or sister of the | ||
decedent but a
grandparent or descendant of a grandparent of | ||
the decedent: (1) 1/2 of
the entire estate to the decedent's | ||
maternal grandparents in equal parts
or to the survivor of | ||
them, or if there is none surviving, to their
descendants per | ||
stirpes, and (2) 1/2 of the entire estate to the
decedent's | ||
paternal grandparents in equal parts or to the survivor of
| ||
them, or if there is none surviving, to their descendants per | ||
stirpes.
If there is no surviving paternal grandparent or | ||
descendant of a
paternal grandparent, but a maternal | ||
grandparent or descendant of a
maternal grandparent of the | ||
decedent: the entire estate to the
decedent's maternal | ||
grandparents in equal parts or to the survivor of
them, or if | ||
there is none surviving, to their descendants per stirpes.
If | ||
there is no surviving maternal grandparent or descendant of a
| ||
maternal grandparent, but a paternal grandparent or descendant | ||
of a
paternal grandparent of the decedent: the entire estate to | ||
the
decedent's paternal grandparents in equal parts or to the | ||
survivor of
them, or if there is none surviving, to their | ||
descendants per stirpes.
| ||
(f) If there is no surviving spouse, descendant, parent, | ||
brother,
sister, descendant of a brother or sister or | ||
grandparent or descendant
of a grandparent of the decedent: (1) | ||
1/2 of the entire estate to the
decedent's maternal |
great-grandparents in equal parts or to the survivor
of them, | ||
or if there is none surviving, to their descendants per
| ||
stirpes, and (2) 1/2 of the entire estate to the decedent's | ||
paternal
great-grandparents in equal parts or to the survivor | ||
of them, or if
there is none surviving, to their descendants | ||
per stirpes. If there is
no surviving paternal | ||
great-grandparent or descendant of a paternal
| ||
great-grandparent, but a maternal great-grandparent or | ||
descendant of a
maternal great-grandparent of the decedent: the | ||
entire estate to the
decedent's maternal great-grandparents in | ||
equal parts or to the survivor
of them, or if there is none | ||
surviving, to their descendants per
stirpes. If there is no | ||
surviving maternal great-grandparent or
descendant of a | ||
maternal great-grandparent, but a paternal
great-grandparent | ||
or descendant of a paternal great-grandparent of the
decedent: | ||
the entire estate to the decedent's paternal
| ||
great-grandparents in equal parts or to the survivor of them, | ||
or if
there is none surviving, to their descendants per | ||
stirpes.
| ||
(g) If there is no surviving spouse, descendant, parent, | ||
brother,
sister, descendant of a brother or sister, | ||
grandparent, descendant of a
grandparent, great-grandparent or | ||
descendant of a great-grandparent of
the decedent: the entire | ||
estate in equal parts to the nearest kindred of
the decedent in | ||
equal degree (computing by the rules of the civil law)
and | ||
without representation.
|
(h) If there is no surviving spouse and no known kindred of | ||
the
decedent: the real estate escheats to the county in which | ||
it is
located; the personal estate physically located within | ||
this State and
the personal estate physically located or held | ||
outside this State which
is the subject of ancillary | ||
administration of an estate being
administered within this | ||
State escheats to the county of which the
decedent was a | ||
resident, or, if the decedent was not a resident of this
State, | ||
to the county in which it is located; all other personal | ||
property
of the decedent of every class and character, wherever | ||
situate, or the
proceeds thereof, shall escheat to this State | ||
and be delivered to the
State Treasurer
pursuant to the Revised | ||
Uniform Disposition of Unclaimed Property Act.
| ||
In no case is there any distinction between the kindred of | ||
the whole
and the half blood.
| ||
(Source: P.A. 91-16, eff. 7-1-99.)
| ||
(755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2)
| ||
Sec. 2-2. Children born out of wedlock. The intestate real | ||
and personal estate of
a resident decedent who was a child born | ||
out of wedlock at the time of death and the
intestate real | ||
estate in this State of a nonresident decedent who was a child | ||
born out of wedlock at the time of death, after all just claims | ||
against his estate are
fully paid, descends and shall be | ||
distributed as provided in Section 2-1,
subject to Section | ||
2-6.5 of this Act, if both parents are eligible parents. As
|
used in this Section, "eligible parent" means a parent of the | ||
decedent who,
during the decedent's lifetime, acknowledged the | ||
decedent as the parent's
child, established a parental | ||
relationship with the decedent, and supported the
decedent as | ||
the parent's child. "Eligible parents" who are in arrears of in
| ||
excess of one year's child support obligations shall not | ||
receive any property
benefit or other interest of the decedent | ||
unless and until a court of competent
jurisdiction makes a | ||
determination as to the effect on the deceased of the
arrearage | ||
and allows a reduced benefit. In no event shall the reduction | ||
of
the benefit or other interest be less than the amount of | ||
child support owed for
the support of the decedent at the time | ||
of death. The court's considerations
shall include but are not | ||
limited to the considerations in subsections (1)
through (3) of | ||
Section 2-6.5 of this Act.
| ||
If neither parent is an eligible parent, the intestate real
| ||
and personal estate of a resident decedent who was a child born | ||
out of wedlock at the time of
death and the intestate real | ||
estate in this State of a nonresident decedent who
was a child | ||
born out of wedlock at the time of death, after all just claims | ||
against his or her
estate are fully paid, descends and shall be | ||
distributed as provided in
Section 2-1, but the parents of the | ||
decedent shall be treated as having
predeceased the decedent.
| ||
If only one parent is an eligible parent, the intestate | ||
real and personal
estate of a resident decedent who was a child | ||
born out of wedlock at the time of death and the
intestate real |
estate in this State of a nonresident decedent who was a child | ||
born out of wedlock at the time of death, after all just claims | ||
against his or her
estate are fully paid, subject to Section | ||
2-6.5 of this Act, descends and shall
be distributed as | ||
follows:
| ||
(a) If there is a surviving spouse and also a descendant of | ||
the
decedent: 1/2 of the entire estate to the surviving spouse | ||
and 1/2 to
the decedent's descendants per stirpes.
| ||
(b) If there is no surviving spouse but a descendant of the
| ||
decedent: the entire estate to the decedent's descendants per | ||
stirpes.
| ||
(c) If there is a surviving spouse but no descendant of the
| ||
decedent: the entire estate to the surviving spouse.
| ||
(d) If there is no surviving spouse or descendant but the | ||
eligible parent or
a descendant of the eligible parent of the | ||
decedent: the entire estate to the
eligible parent and the | ||
eligible parent's descendants, allowing 1/2 to the
eligible | ||
parent and 1/2 to the eligible parent's descendants per | ||
stirpes.
| ||
(e) If there is no surviving spouse, descendant, eligible | ||
parent, or
descendant of the eligible parent of the decedent, | ||
but a grandparent on the
eligible parent's side of the family | ||
or descendant of such grandparent of the
decedent: the entire | ||
estate to the decedent's grandparents on the eligible
parent's | ||
side of the family in equal parts, or to the survivor of them, | ||
or if
there is none surviving, to their descendants per |
stirpes.
| ||
(f) If there is no surviving spouse, descendant, eligible | ||
parent, descendant
of the eligible parent, grandparent on the | ||
eligible parent's side of the
family, or descendant of such | ||
grandparent of the decedent: the entire estate
to the | ||
decedent's great-grandparents on the eligible parent's side of | ||
the
family in equal parts or to the survivor of them, or if | ||
there is none
surviving, to their descendants per stirpes.
| ||
(g) If there is no surviving spouse, descendant, eligible | ||
parent, descendant
of the eligible parent, grandparent on the
| ||
eligible parent's side of the family, descendant of such
| ||
grandparent, great-grandparent on the eligible parent's side | ||
of
the family, or descendant of such great-grandparent of the | ||
decedent: the
entire estate in equal parts to the nearest | ||
kindred of the eligible parent of
the decedent in equal degree | ||
(computing by the rules of the civil law) and
without | ||
representation.
| ||
(h) If there is no surviving spouse, descendant, or | ||
eligible parent of the
decedent and no known kindred of the | ||
eligible parent of the decedent: the real
estate escheats to
| ||
the county in which it is located; the personal estate | ||
physically
located within this State and the personal estate | ||
physically located or
held outside this State which is the | ||
subject of ancillary administration
within this State escheats | ||
to the county of which the decedent was a
resident or, if the | ||
decedent was not a resident of this State, to the
county in |
which it is located; all other personal property of the
| ||
decedent of every class and character, wherever situate, or the | ||
proceeds
thereof, shall escheat to this State and be delivered | ||
to the State
Treasurer of this State pursuant to the Revised | ||
Uniform Disposition
of Unclaimed Property Act.
| ||
For purposes of inheritance, the changes made by this | ||
amendatory Act of
1998 apply to all decedents who die on or | ||
after the effective date of this
amendatory Act of 1998. For | ||
the purpose of determining the property rights of
any person | ||
under any instrument, the changes made by this amendatory Act | ||
of
1998 apply to all instruments executed on or after the | ||
effective date of this
amendatory Act of 1998.
| ||
A child born out of wedlock is heir of his mother and of | ||
any maternal
ancestor and of any person from whom his mother | ||
might have inherited, if
living; and the descendants of a | ||
person who was a child born out of wedlock shall represent
such | ||
person and take by descent any estate which the parent would | ||
have
taken, if living. If a decedent has acknowledged paternity | ||
of a child born out of wedlock or if during his lifetime or | ||
after his death a
decedent has been adjudged to be the father | ||
of a child born out of wedlock,
that person is heir of his | ||
father and of any paternal ancestor and of
any person from whom | ||
his father might have inherited, if living; and
the descendants | ||
of a person who was a child born out of wedlock shall represent | ||
that person
and take by descent any estate which the parent | ||
would have taken, if
living. If during his lifetime the |
decedent was adjudged to be the
father of a child born out of | ||
wedlock by a court of competent jurisdiction,
an authenticated | ||
copy of the judgment is sufficient proof of the
paternity; but | ||
in all other cases paternity must be proved by clear and
| ||
convincing evidence. A person who was a child born out of | ||
wedlock whose parents
intermarry and who is acknowledged by the | ||
father as the father's child
is a lawful child of the father.
| ||
After a child born out of wedlock is adopted, that person's | ||
relationship to his or
her adopting and natural parents shall | ||
be governed by Section 2-4 of this
Act. For purposes of | ||
inheritance, the changes made by this amendatory Act of
1997 | ||
apply to all decedents who die on or after January 1, 1998. For | ||
the
purpose of determining the property rights of any person | ||
under any instrument,
the changes made by this amendatory Act | ||
of 1997 apply to all instruments
executed on or after January | ||
1, 1998.
| ||
(Source: P.A. 94-229, eff. 1-1-06.)
| ||
Section 17-110. The Sale of Unclaimed Property Act is | ||
amended by changing Section 3 as follows:
| ||
(770 ILCS 90/3) (from Ch. 141, par. 3)
| ||
Sec. 3.
All persons other than common carriers having a | ||
lien on personal
property, by virtue of the Innkeepers Lien Act | ||
or for more than $2,000 by
virtue of the Labor and Storage Lien | ||
Act may enforce the lien by a sale of
the property, on giving |
to the owner thereof, if he and his residence be
known to the | ||
person having such lien, 30 days' notice by certified mail, in
| ||
writing of the time and place of such sale, and if the owner or | ||
his place
of residence be unknown to the person having such | ||
lien, then upon his
filing his affidavit to that effect with | ||
the clerk of the circuit court in
the county where such | ||
property is situated; notice of the sale may be given
by | ||
publishing the same once in each week for 3 successive weeks in | ||
some
newspaper of general circulation published in the county, | ||
and out of the
proceeds of the sale all costs and charges for | ||
advertising and making the
same, and the amount of the lien | ||
shall be paid, and the surplus, if any,
shall be paid to the | ||
owner of the property or, if not claimed by said
owner, such | ||
surplus, if any, shall be disposed under the Revised Uniform | ||
Disposition
of Unclaimed Property Act. All sales pursuant to | ||
this Section must be
public and conducted in a commercially | ||
reasonable manner so as to maximize
the net proceeds of the | ||
sale. Conformity to the requirements of this Act
shall be a | ||
perpetual bar to any action against such lienor by any person
| ||
for the recovery of such chattels or the value thereof or any | ||
damages
growing out of the failure of such person to receive | ||
such chattels.
| ||
(Source: P.A. 87-206.)
| ||
Section 17-115. The Business Corporation Act of 1983 is | ||
amended by changing Section 12.70 as follows:
|
(805 ILCS 5/12.70) (from Ch. 32, par. 12.70)
| ||
Sec. 12.70. Deposit of amount due certain shareholders. | ||
Upon the distribution of the assets of a corporation among its
| ||
shareholders, the distributive portion to which a shareholder | ||
would be
entitled who is unknown or cannot can not be found, or | ||
who is under disability and
there is no person legally | ||
competent to receive such distributive portion,
shall be | ||
presumed abandoned and reported and delivered to the State
| ||
Treasurer and become subject to the provision of the Revised | ||
Uniform
Disposition of Unclaimed Property Act. In the event | ||
such distribution is be
made other than in cash, such | ||
distributive portion of the assets shall be
reduced to cash | ||
before being so reported and delivered.
| ||
(Source: P.A. 91-16, eff. 7-1-99.)
| ||
Section 17-120. The General Not For Profit Corporation Act | ||
of 1986 is amended by changing Section 112.70 as follows:
| ||
(805 ILCS 105/112.70) (from Ch. 32, par. 112.70)
| ||
Sec. 112.70. Deposit of amount due. Upon the
distribution | ||
of the assets of a corporation, the
distributive portion to | ||
which a person would be entitled who
is unknown or cannot be | ||
found, or who is under disability
and there is no person | ||
legally competent to receive such
distributive portion, shall | ||
be presumed abandoned and
reported and delivered to the State |
Treasurer and become subject to the Revised
provision of the | ||
Uniform Disposition of Unclaimed Property Act. In the event
| ||
such distribution is be made other than in cash, such
| ||
distributive portion of the assets shall be reduced to cash
| ||
before being so reported and delivered.
| ||
(Source: P.A. 91-16, eff. 7-1-99.)
| ||
ARTICLE 20. AMENDATORY PROVISIONS; INCOME TAX | ||
Section 15-5. The Illinois Income Tax Act is amended by | ||
changing Sections 201, 202.5, 203, 204, 208, 212, 901, and 1501 | ||
and by adding Section 225 as follows: | ||
(35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||
Sec. 201. Tax Imposed. | ||
(a) In general. A tax measured by net income is hereby | ||
imposed on every
individual, corporation, trust and estate for | ||
each taxable year ending
after July 31, 1969 on the privilege | ||
of earning or receiving income in or
as a resident of this | ||
State. Such tax shall be in addition to all other
occupation or | ||
privilege taxes imposed by this State or by any municipal
| ||
corporation or political subdivision thereof. | ||
(b) Rates. The tax imposed by subsection (a) of this | ||
Section shall be
determined as follows, except as adjusted by | ||
subsection (d-1): | ||
(1) In the case of an individual, trust or estate, for |
taxable years
ending prior to July 1, 1989, an amount equal | ||
to 2 1/2% of the taxpayer's
net income for the taxable | ||
year. | ||
(2) In the case of an individual, trust or estate, for | ||
taxable years
beginning prior to July 1, 1989 and ending | ||
after June 30, 1989, an amount
equal to the sum of (i) 2 | ||
1/2% of the taxpayer's net income for the period
prior to | ||
July 1, 1989, as calculated under Section 202.3, and (ii) | ||
3% of the
taxpayer's net income for the period after June | ||
30, 1989, as calculated
under Section 202.3. | ||
(3) In the case of an individual, trust or estate, for | ||
taxable years
beginning after June 30, 1989, and ending | ||
prior to January 1, 2011, an amount equal to 3% of the | ||
taxpayer's net
income for the taxable year. | ||
(4) In the case of an individual, trust, or estate, for | ||
taxable years beginning prior to January 1, 2011, and | ||
ending after December 31, 2010, an amount equal to the sum | ||
of (i) 3% of the taxpayer's net income for the period prior | ||
to January 1, 2011, as calculated under Section 202.5, and | ||
(ii) 5% of the taxpayer's net income for the period after | ||
December 31, 2010, as calculated under Section 202.5. | ||
(5) In the case of an individual, trust, or estate, for | ||
taxable years beginning on or after January 1, 2011, and | ||
ending prior to January 1, 2015, an amount equal to 5% of | ||
the taxpayer's net income for the taxable year. | ||
(5.1) In the case of an individual, trust, or estate, |
for taxable years beginning prior to January 1, 2015, and | ||
ending after December 31, 2014, an amount equal to the sum | ||
of (i) 5% of the taxpayer's net income for the period prior | ||
to January 1, 2015, as calculated under Section 202.5, and | ||
(ii) 3.75% of the taxpayer's net income for the period | ||
after December 31, 2014, as calculated under Section 202.5. | ||
(5.2) In the case of an individual, trust, or estate, | ||
for taxable years beginning on or after January 1, 2015, | ||
and ending prior to July 1, 2017 January 1, 2025 , an amount | ||
equal to 3.75% of the taxpayer's net income for the taxable | ||
year. | ||
(5.3) In the case of an individual, trust, or estate, | ||
for taxable years beginning prior to July 1, 2017 January | ||
1, 2025 , and ending after June 30, 2017 December 31, 2024 , | ||
an amount equal to the sum of (i) 3.75% of the taxpayer's | ||
net income for the period prior to July 1, 2017 January 1, | ||
2025 , as calculated under Section 202.5, and (ii) 4.95% | ||
3.25% of the taxpayer's net income for the period after | ||
June 30, 2017 December 31, 2024 , as calculated under | ||
Section 202.5. | ||
(5.4) In the case of an individual, trust, or estate, | ||
for taxable years beginning on or after July 1, 2017 | ||
January 1, 2025 , an amount equal to 4.95% 3.25% of the | ||
taxpayer's net income for the taxable year. | ||
(6) In the case of a corporation, for taxable years
| ||
ending prior to July 1, 1989, an amount equal to 4% of the
|
taxpayer's net income for the taxable year. | ||
(7) In the case of a corporation, for taxable years | ||
beginning prior to
July 1, 1989 and ending after June 30, | ||
1989, an amount equal to the sum of
(i) 4% of the | ||
taxpayer's net income for the period prior to July 1, 1989,
| ||
as calculated under Section 202.3, and (ii) 4.8% of the | ||
taxpayer's net
income for the period after June 30, 1989, | ||
as calculated under Section
202.3. | ||
(8) In the case of a corporation, for taxable years | ||
beginning after
June 30, 1989, and ending prior to January | ||
1, 2011, an amount equal to 4.8% of the taxpayer's net | ||
income for the
taxable year. | ||
(9) In the case of a corporation, for taxable years | ||
beginning prior to January 1, 2011, and ending after | ||
December 31, 2010, an amount equal to the sum of (i) 4.8% | ||
of the taxpayer's net income for the period prior to | ||
January 1, 2011, as calculated under Section 202.5, and | ||
(ii) 7% of the taxpayer's net income for the period after | ||
December 31, 2010, as calculated under Section 202.5. | ||
(10) In the case of a corporation, for taxable years | ||
beginning on or after January 1, 2011, and ending prior to | ||
January 1, 2015, an amount equal to 7% of the taxpayer's | ||
net income for the taxable year. | ||
(11) In the case of a corporation, for taxable years | ||
beginning prior to January 1, 2015, and ending after | ||
December 31, 2014, an amount equal to the sum of (i) 7% of |
the taxpayer's net income for the period prior to January | ||
1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||
of the taxpayer's net income for the period after December | ||
31, 2014, as calculated under Section 202.5. | ||
(12) In the case of a corporation, for taxable years | ||
beginning on or after January 1, 2015, and ending prior to | ||
July 1, 2017 January 1, 2025 , an amount equal to 5.25% of | ||
the taxpayer's net income for the taxable year. | ||
(13) In the case of a corporation, for taxable years | ||
beginning prior to July 1, 2017 January 1, 2025 , and ending | ||
after June 30, 2017 December 31, 2024 , an amount equal to | ||
the sum of (i) 5.25% of the taxpayer's net income for the | ||
period prior to July 1, 2017 January 1, 2025 , as calculated | ||
under Section 202.5, and (ii) 7% 4.8% of the taxpayer's net | ||
income for the period after June 30, 2017 December 31, | ||
2024 , as calculated under Section 202.5. | ||
(14) In the case of a corporation, for taxable years | ||
beginning on or after July 1, 2017 January 1, 2025 , an | ||
amount equal to 7% 4.8% of the taxpayer's net income for | ||
the taxable year. | ||
The rates under this subsection (b) are subject to the | ||
provisions of Section 201.5. | ||
(c) Personal Property Tax Replacement Income Tax.
| ||
Beginning on July 1, 1979 and thereafter, in addition to such | ||
income
tax, there is also hereby imposed the Personal Property | ||
Tax Replacement
Income Tax measured by net income on every |
corporation (including Subchapter
S corporations), partnership | ||
and trust, for each taxable year ending after
June 30, 1979. | ||
Such taxes are imposed on the privilege of earning or
receiving | ||
income in or as a resident of this State. The Personal Property
| ||
Tax Replacement Income Tax shall be in addition to the income | ||
tax imposed
by subsections (a) and (b) of this Section and in | ||
addition to all other
occupation or privilege taxes imposed by | ||
this State or by any municipal
corporation or political | ||
subdivision thereof. | ||
(d) Additional Personal Property Tax Replacement Income | ||
Tax Rates.
The personal property tax replacement income tax | ||
imposed by this subsection
and subsection (c) of this Section | ||
in the case of a corporation, other
than a Subchapter S | ||
corporation and except as adjusted by subsection (d-1),
shall | ||
be an additional amount equal to
2.85% of such taxpayer's net | ||
income for the taxable year, except that
beginning on January | ||
1, 1981, and thereafter, the rate of 2.85% specified
in this | ||
subsection shall be reduced to 2.5%, and in the case of a
| ||
partnership, trust or a Subchapter S corporation shall be an | ||
additional
amount equal to 1.5% of such taxpayer's net income | ||
for the taxable year. | ||
(d-1) Rate reduction for certain foreign insurers. In the | ||
case of a
foreign insurer, as defined by Section 35A-5 of the | ||
Illinois Insurance Code,
whose state or country of domicile | ||
imposes on insurers domiciled in Illinois
a retaliatory tax | ||
(excluding any insurer
whose premiums from reinsurance assumed |
are 50% or more of its total insurance
premiums as determined | ||
under paragraph (2) of subsection (b) of Section 304,
except | ||
that for purposes of this determination premiums from | ||
reinsurance do
not include premiums from inter-affiliate | ||
reinsurance arrangements),
beginning with taxable years ending | ||
on or after December 31, 1999,
the sum of
the rates of tax | ||
imposed by subsections (b) and (d) shall be reduced (but not
| ||
increased) to the rate at which the total amount of tax imposed | ||
under this Act,
net of all credits allowed under this Act, | ||
shall equal (i) the total amount of
tax that would be imposed | ||
on the foreign insurer's net income allocable to
Illinois for | ||
the taxable year by such foreign insurer's state or country of
| ||
domicile if that net income were subject to all income taxes | ||
and taxes
measured by net income imposed by such foreign | ||
insurer's state or country of
domicile, net of all credits | ||
allowed or (ii) a rate of zero if no such tax is
imposed on such | ||
income by the foreign insurer's state of domicile.
For the | ||
purposes of this subsection (d-1), an inter-affiliate includes | ||
a
mutual insurer under common management. | ||
(1) For the purposes of subsection (d-1), in no event | ||
shall the sum of the
rates of tax imposed by subsections | ||
(b) and (d) be reduced below the rate at
which the sum of: | ||
(A) the total amount of tax imposed on such foreign | ||
insurer under
this Act for a taxable year, net of all | ||
credits allowed under this Act, plus | ||
(B) the privilege tax imposed by Section 409 of the |
Illinois Insurance
Code, the fire insurance company | ||
tax imposed by Section 12 of the Fire
Investigation | ||
Act, and the fire department taxes imposed under | ||
Section 11-10-1
of the Illinois Municipal Code, | ||
equals 1.25% for taxable years ending prior to December 31, | ||
2003, or
1.75% for taxable years ending on or after | ||
December 31, 2003, of the net
taxable premiums written for | ||
the taxable year,
as described by subsection (1) of Section | ||
409 of the Illinois Insurance Code.
This paragraph will in | ||
no event increase the rates imposed under subsections
(b) | ||
and (d). | ||
(2) Any reduction in the rates of tax imposed by this | ||
subsection shall be
applied first against the rates imposed | ||
by subsection (b) and only after the
tax imposed by | ||
subsection (a) net of all credits allowed under this | ||
Section
other than the credit allowed under subsection (i) | ||
has been reduced to zero,
against the rates imposed by | ||
subsection (d). | ||
This subsection (d-1) is exempt from the provisions of | ||
Section 250. | ||
(e) Investment credit. A taxpayer shall be allowed a credit
| ||
against the Personal Property Tax Replacement Income Tax for
| ||
investment in qualified property. | ||
(1) A taxpayer shall be allowed a credit equal to .5% | ||
of
the basis of qualified property placed in service during | ||
the taxable year,
provided such property is placed in |
service on or after
July 1, 1984. There shall be allowed an | ||
additional credit equal
to .5% of the basis of qualified | ||
property placed in service during the
taxable year, | ||
provided such property is placed in service on or
after | ||
July 1, 1986, and the taxpayer's base employment
within | ||
Illinois has increased by 1% or more over the preceding | ||
year as
determined by the taxpayer's employment records | ||
filed with the
Illinois Department of Employment Security. | ||
Taxpayers who are new to
Illinois shall be deemed to have | ||
met the 1% growth in base employment for
the first year in | ||
which they file employment records with the Illinois
| ||
Department of Employment Security. The provisions added to | ||
this Section by
Public Act 85-1200 (and restored by Public | ||
Act 87-895) shall be
construed as declaratory of existing | ||
law and not as a new enactment. If,
in any year, the | ||
increase in base employment within Illinois over the
| ||
preceding year is less than 1%, the additional credit shall | ||
be limited to that
percentage times a fraction, the | ||
numerator of which is .5% and the denominator
of which is | ||
1%, but shall not exceed .5%. The investment credit shall | ||
not be
allowed to the extent that it would reduce a | ||
taxpayer's liability in any tax
year below zero, nor may | ||
any credit for qualified property be allowed for any
year | ||
other than the year in which the property was placed in | ||
service in
Illinois. For tax years ending on or after | ||
December 31, 1987, and on or
before December 31, 1988, the |
credit shall be allowed for the tax year in
which the | ||
property is placed in service, or, if the amount of the | ||
credit
exceeds the tax liability for that year, whether it | ||
exceeds the original
liability or the liability as later | ||
amended, such excess may be carried
forward and applied to | ||
the tax liability of the 5 taxable years following
the | ||
excess credit years if the taxpayer (i) makes investments | ||
which cause
the creation of a minimum of 2,000 full-time | ||
equivalent jobs in Illinois,
(ii) is located in an | ||
enterprise zone established pursuant to the Illinois
| ||
Enterprise Zone Act and (iii) is certified by the | ||
Department of Commerce
and Community Affairs (now | ||
Department of Commerce and Economic Opportunity) as | ||
complying with the requirements specified in
clause (i) and | ||
(ii) by July 1, 1986. The Department of Commerce and
| ||
Community Affairs (now Department of Commerce and Economic | ||
Opportunity) shall notify the Department of Revenue of all | ||
such
certifications immediately. For tax years ending | ||
after December 31, 1988,
the credit shall be allowed for | ||
the tax year in which the property is
placed in service, | ||
or, if the amount of the credit exceeds the tax
liability | ||
for that year, whether it exceeds the original liability or | ||
the
liability as later amended, such excess may be carried | ||
forward and applied
to the tax liability of the 5 taxable | ||
years following the excess credit
years. The credit shall | ||
be applied to the earliest year for which there is
a |
liability. If there is credit from more than one tax year | ||
that is
available to offset a liability, earlier credit | ||
shall be applied first. | ||
(2) The term "qualified property" means property | ||
which: | ||
(A) is tangible, whether new or used, including | ||
buildings and structural
components of buildings and | ||
signs that are real property, but not including
land or | ||
improvements to real property that are not a structural | ||
component of a
building such as landscaping, sewer | ||
lines, local access roads, fencing, parking
lots, and | ||
other appurtenances; | ||
(B) is depreciable pursuant to Section 167 of the | ||
Internal Revenue Code,
except that "3-year property" | ||
as defined in Section 168(c)(2)(A) of that
Code is not | ||
eligible for the credit provided by this subsection | ||
(e); | ||
(C) is acquired by purchase as defined in Section | ||
179(d) of
the Internal Revenue Code; | ||
(D) is used in Illinois by a taxpayer who is | ||
primarily engaged in
manufacturing, or in mining coal | ||
or fluorite, or in retailing, or was placed in service | ||
on or after July 1, 2006 in a River Edge Redevelopment | ||
Zone established pursuant to the River Edge | ||
Redevelopment Zone Act; and | ||
(E) has not previously been used in Illinois in |
such a manner and by
such a person as would qualify for | ||
the credit provided by this subsection
(e) or | ||
subsection (f). | ||
(3) For purposes of this subsection (e), | ||
"manufacturing" means
the material staging and production | ||
of tangible personal property by
procedures commonly | ||
regarded as manufacturing, processing, fabrication, or
| ||
assembling which changes some existing material into new | ||
shapes, new
qualities, or new combinations. For purposes of | ||
this subsection
(e) the term "mining" shall have the same | ||
meaning as the term "mining" in
Section 613(c) of the | ||
Internal Revenue Code. For purposes of this subsection
(e), | ||
the term "retailing" means the sale of tangible personal | ||
property for use or consumption and not for resale, or
| ||
services rendered in conjunction with the sale of tangible | ||
personal property for use or consumption and not for | ||
resale. For purposes of this subsection (e), "tangible | ||
personal property" has the same meaning as when that term | ||
is used in the Retailers' Occupation Tax Act, and, for | ||
taxable years ending after December 31, 2008, does not | ||
include the generation, transmission, or distribution of | ||
electricity. | ||
(4) The basis of qualified property shall be the basis
| ||
used to compute the depreciation deduction for federal | ||
income tax purposes. | ||
(5) If the basis of the property for federal income tax |
depreciation
purposes is increased after it has been placed | ||
in service in Illinois by
the taxpayer, the amount of such | ||
increase shall be deemed property placed
in service on the | ||
date of such increase in basis. | ||
(6) The term "placed in service" shall have the same
| ||
meaning as under Section 46 of the Internal Revenue Code. | ||
(7) If during any taxable year, any property ceases to
| ||
be qualified property in the hands of the taxpayer within | ||
48 months after
being placed in service, or the situs of | ||
any qualified property is
moved outside Illinois within 48 | ||
months after being placed in service, the
Personal Property | ||
Tax Replacement Income Tax for such taxable year shall be
| ||
increased. Such increase shall be determined by (i) | ||
recomputing the
investment credit which would have been | ||
allowed for the year in which
credit for such property was | ||
originally allowed by eliminating such
property from such | ||
computation and, (ii) subtracting such recomputed credit
| ||
from the amount of credit previously allowed. For the | ||
purposes of this
paragraph (7), a reduction of the basis of | ||
qualified property resulting
from a redetermination of the | ||
purchase price shall be deemed a disposition
of qualified | ||
property to the extent of such reduction. | ||
(8) Unless the investment credit is extended by law, | ||
the
basis of qualified property shall not include costs | ||
incurred after
December 31, 2018, except for costs incurred | ||
pursuant to a binding
contract entered into on or before |
December 31, 2018. | ||
(9) Each taxable year ending before December 31, 2000, | ||
a partnership may
elect to pass through to its
partners the | ||
credits to which the partnership is entitled under this | ||
subsection
(e) for the taxable year. A partner may use the | ||
credit allocated to him or her
under this paragraph only | ||
against the tax imposed in subsections (c) and (d) of
this | ||
Section. If the partnership makes that election, those | ||
credits shall be
allocated among the partners in the | ||
partnership in accordance with the rules
set forth in | ||
Section 704(b) of the Internal Revenue Code, and the rules
| ||
promulgated under that Section, and the allocated amount of | ||
the credits shall
be allowed to the partners for that | ||
taxable year. The partnership shall make
this election on | ||
its Personal Property Tax Replacement Income Tax return for
| ||
that taxable year. The election to pass through the credits | ||
shall be
irrevocable. | ||
For taxable years ending on or after December 31, 2000, | ||
a
partner that qualifies its
partnership for a subtraction | ||
under subparagraph (I) of paragraph (2) of
subsection (d) | ||
of Section 203 or a shareholder that qualifies a Subchapter | ||
S
corporation for a subtraction under subparagraph (S) of | ||
paragraph (2) of
subsection (b) of Section 203 shall be | ||
allowed a credit under this subsection
(e) equal to its | ||
share of the credit earned under this subsection (e) during
| ||
the taxable year by the partnership or Subchapter S |
corporation, determined in
accordance with the | ||
determination of income and distributive share of
income | ||
under Sections 702 and 704 and Subchapter S of the Internal | ||
Revenue
Code. This paragraph is exempt from the provisions | ||
of Section 250. | ||
(f) Investment credit; Enterprise Zone; River Edge | ||
Redevelopment Zone. | ||
(1) A taxpayer shall be allowed a credit against the | ||
tax imposed
by subsections (a) and (b) of this Section for | ||
investment in qualified
property which is placed in service | ||
in an Enterprise Zone created
pursuant to the Illinois | ||
Enterprise Zone Act or, for property placed in service on | ||
or after July 1, 2006, a River Edge Redevelopment Zone | ||
established pursuant to the River Edge Redevelopment Zone | ||
Act. For partners, shareholders
of Subchapter S | ||
corporations, and owners of limited liability companies,
| ||
if the liability company is treated as a partnership for | ||
purposes of
federal and State income taxation, there shall | ||
be allowed a credit under
this subsection (f) to be | ||
determined in accordance with the determination
of income | ||
and distributive share of income under Sections 702 and 704 | ||
and
Subchapter S of the Internal Revenue Code. The credit | ||
shall be .5% of the
basis for such property. The credit | ||
shall be available only in the taxable
year in which the | ||
property is placed in service in the Enterprise Zone or | ||
River Edge Redevelopment Zone and
shall not be allowed to |
the extent that it would reduce a taxpayer's
liability for | ||
the tax imposed by subsections (a) and (b) of this Section | ||
to
below zero. For tax years ending on or after December | ||
31, 1985, the credit
shall be allowed for the tax year in | ||
which the property is placed in
service, or, if the amount | ||
of the credit exceeds the tax liability for that
year, | ||
whether it exceeds the original liability or the liability | ||
as later
amended, such excess may be carried forward and | ||
applied to the tax
liability of the 5 taxable years | ||
following the excess credit year.
The credit shall be | ||
applied to the earliest year for which there is a
| ||
liability. If there is credit from more than one tax year | ||
that is available
to offset a liability, the credit | ||
accruing first in time shall be applied
first. | ||
(2) The term qualified property means property which: | ||
(A) is tangible, whether new or used, including | ||
buildings and
structural components of buildings; | ||
(B) is depreciable pursuant to Section 167 of the | ||
Internal Revenue
Code, except that "3-year property" | ||
as defined in Section 168(c)(2)(A) of
that Code is not | ||
eligible for the credit provided by this subsection | ||
(f); | ||
(C) is acquired by purchase as defined in Section | ||
179(d) of
the Internal Revenue Code; | ||
(D) is used in the Enterprise Zone or River Edge | ||
Redevelopment Zone by the taxpayer; and |
(E) has not been previously used in Illinois in | ||
such a manner and by
such a person as would qualify for | ||
the credit provided by this subsection
(f) or | ||
subsection (e). | ||
(3) The basis of qualified property shall be the basis | ||
used to compute
the depreciation deduction for federal | ||
income tax purposes. | ||
(4) If the basis of the property for federal income tax | ||
depreciation
purposes is increased after it has been placed | ||
in service in the Enterprise
Zone or River Edge | ||
Redevelopment Zone by the taxpayer, the amount of such | ||
increase shall be deemed property
placed in service on the | ||
date of such increase in basis. | ||
(5) The term "placed in service" shall have the same | ||
meaning as under
Section 46 of the Internal Revenue Code. | ||
(6) If during any taxable year, any property ceases to | ||
be qualified
property in the hands of the taxpayer within | ||
48 months after being placed
in service, or the situs of | ||
any qualified property is moved outside the
Enterprise Zone | ||
or River Edge Redevelopment Zone within 48 months after | ||
being placed in service, the tax
imposed under subsections | ||
(a) and (b) of this Section for such taxable year
shall be | ||
increased. Such increase shall be determined by (i) | ||
recomputing
the investment credit which would have been | ||
allowed for the year in which
credit for such property was | ||
originally allowed by eliminating such
property from such |
computation, and (ii) subtracting such recomputed credit
| ||
from the amount of credit previously allowed. For the | ||
purposes of this
paragraph (6), a reduction of the basis of | ||
qualified property resulting
from a redetermination of the | ||
purchase price shall be deemed a disposition
of qualified | ||
property to the extent of such reduction. | ||
(7) There shall be allowed an additional credit equal | ||
to 0.5% of the basis of qualified property placed in | ||
service during the taxable year in a River Edge | ||
Redevelopment Zone, provided such property is placed in | ||
service on or after July 1, 2006, and the taxpayer's base | ||
employment within Illinois has increased by 1% or more over | ||
the preceding year as determined by the taxpayer's | ||
employment records filed with the Illinois Department of | ||
Employment Security. Taxpayers who are new to Illinois | ||
shall be deemed to have met the 1% growth in base | ||
employment for the first year in which they file employment | ||
records with the Illinois Department of Employment | ||
Security. If, in any year, the increase in base employment | ||
within Illinois over the preceding year is less than 1%, | ||
the additional credit shall be limited to that percentage | ||
times a fraction, the numerator of which is 0.5% and the | ||
denominator of which is 1%, but shall not exceed 0.5%.
| ||
(g) (Blank). | ||
(h) Investment credit; High Impact Business. | ||
(1) Subject to subsections (b) and (b-5) of Section
5.5 |
of the Illinois Enterprise Zone Act, a taxpayer shall be | ||
allowed a credit
against the tax imposed by subsections (a) | ||
and (b) of this Section for
investment in qualified
| ||
property which is placed in service by a Department of | ||
Commerce and Economic Opportunity
designated High Impact | ||
Business. The credit shall be .5% of the basis
for such | ||
property. The credit shall not be available (i) until the | ||
minimum
investments in qualified property set forth in | ||
subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||
Enterprise Zone Act have been satisfied
or (ii) until the | ||
time authorized in subsection (b-5) of the Illinois
| ||
Enterprise Zone Act for entities designated as High Impact | ||
Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||
(a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||
Act, and shall not be allowed to the extent that it would
| ||
reduce a taxpayer's liability for the tax imposed by | ||
subsections (a) and (b) of
this Section to below zero. The | ||
credit applicable to such investments shall be
taken in the | ||
taxable year in which such investments have been completed. | ||
The
credit for additional investments beyond the minimum | ||
investment by a designated
high impact business authorized | ||
under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||
Enterprise Zone Act shall be available only in the taxable | ||
year in
which the property is placed in service and shall | ||
not be allowed to the extent
that it would reduce a | ||
taxpayer's liability for the tax imposed by subsections
(a) |
and (b) of this Section to below zero.
For tax years ending | ||
on or after December 31, 1987, the credit shall be
allowed | ||
for the tax year in which the property is placed in | ||
service, or, if
the amount of the credit exceeds the tax | ||
liability for that year, whether
it exceeds the original | ||
liability or the liability as later amended, such
excess | ||
may be carried forward and applied to the tax liability of | ||
the 5
taxable years following the excess credit year. The | ||
credit shall be
applied to the earliest year for which | ||
there is a liability. If there is
credit from more than one | ||
tax year that is available to offset a liability,
the | ||
credit accruing first in time shall be applied first. | ||
Changes made in this subdivision (h)(1) by Public Act | ||
88-670
restore changes made by Public Act 85-1182 and | ||
reflect existing law. | ||
(2) The term qualified property means property which: | ||
(A) is tangible, whether new or used, including | ||
buildings and
structural components of buildings; | ||
(B) is depreciable pursuant to Section 167 of the | ||
Internal Revenue
Code, except that "3-year property" | ||
as defined in Section 168(c)(2)(A) of
that Code is not | ||
eligible for the credit provided by this subsection | ||
(h); | ||
(C) is acquired by purchase as defined in Section | ||
179(d) of the
Internal Revenue Code; and | ||
(D) is not eligible for the Enterprise Zone |
Investment Credit provided
by subsection (f) of this | ||
Section. | ||
(3) The basis of qualified property shall be the basis | ||
used to compute
the depreciation deduction for federal | ||
income tax purposes. | ||
(4) If the basis of the property for federal income tax | ||
depreciation
purposes is increased after it has been placed | ||
in service in a federally
designated Foreign Trade Zone or | ||
Sub-Zone located in Illinois by the taxpayer,
the amount of | ||
such increase shall be deemed property placed in service on
| ||
the date of such increase in basis. | ||
(5) The term "placed in service" shall have the same | ||
meaning as under
Section 46 of the Internal Revenue Code. | ||
(6) If during any taxable year ending on or before | ||
December 31, 1996,
any property ceases to be qualified
| ||
property in the hands of the taxpayer within 48 months | ||
after being placed
in service, or the situs of any | ||
qualified property is moved outside
Illinois within 48 | ||
months after being placed in service, the tax imposed
under | ||
subsections (a) and (b) of this Section for such taxable | ||
year shall
be increased. Such increase shall be determined | ||
by (i) recomputing the
investment credit which would have | ||
been allowed for the year in which
credit for such property | ||
was originally allowed by eliminating such
property from | ||
such computation, and (ii) subtracting such recomputed | ||
credit
from the amount of credit previously allowed. For |
the purposes of this
paragraph (6), a reduction of the | ||
basis of qualified property resulting
from a | ||
redetermination of the purchase price shall be deemed a | ||
disposition
of qualified property to the extent of such | ||
reduction. | ||
(7) Beginning with tax years ending after December 31, | ||
1996, if a
taxpayer qualifies for the credit under this | ||
subsection (h) and thereby is
granted a tax abatement and | ||
the taxpayer relocates its entire facility in
violation of | ||
the explicit terms and length of the contract under Section
| ||
18-183 of the Property Tax Code, the tax imposed under | ||
subsections
(a) and (b) of this Section shall be increased | ||
for the taxable year
in which the taxpayer relocated its | ||
facility by an amount equal to the
amount of credit | ||
received by the taxpayer under this subsection (h). | ||
(i) Credit for Personal Property Tax Replacement Income | ||
Tax.
For tax years ending prior to December 31, 2003, a credit | ||
shall be allowed
against the tax imposed by
subsections (a) and | ||
(b) of this Section for the tax imposed by subsections (c)
and | ||
(d) of this Section. This credit shall be computed by | ||
multiplying the tax
imposed by subsections (c) and (d) of this | ||
Section by a fraction, the numerator
of which is base income | ||
allocable to Illinois and the denominator of which is
Illinois | ||
base income, and further multiplying the product by the tax | ||
rate
imposed by subsections (a) and (b) of this Section. | ||
Any credit earned on or after December 31, 1986 under
this |
subsection which is unused in the year
the credit is computed | ||
because it exceeds the tax liability imposed by
subsections (a) | ||
and (b) for that year (whether it exceeds the original
| ||
liability or the liability as later amended) may be carried | ||
forward and
applied to the tax liability imposed by subsections | ||
(a) and (b) of the 5
taxable years following the excess credit | ||
year, provided that no credit may
be carried forward to any | ||
year ending on or
after December 31, 2003. This credit shall be
| ||
applied first to the earliest year for which there is a | ||
liability. If
there is a credit under this subsection from more | ||
than one tax year that is
available to offset a liability the | ||
earliest credit arising under this
subsection shall be applied | ||
first. | ||
If, during any taxable year ending on or after December 31, | ||
1986, the
tax imposed by subsections (c) and (d) of this | ||
Section for which a taxpayer
has claimed a credit under this | ||
subsection (i) is reduced, the amount of
credit for such tax | ||
shall also be reduced. Such reduction shall be
determined by | ||
recomputing the credit to take into account the reduced tax
| ||
imposed by subsections (c) and (d). If any portion of the
| ||
reduced amount of credit has been carried to a different | ||
taxable year, an
amended return shall be filed for such taxable | ||
year to reduce the amount of
credit claimed. | ||
(j) Training expense credit. Beginning with tax years | ||
ending on or
after December 31, 1986 and prior to December 31, | ||
2003, a taxpayer shall be
allowed a credit against the
tax |
imposed by subsections (a) and (b) under this Section
for all | ||
amounts paid or accrued, on behalf of all persons
employed by | ||
the taxpayer in Illinois or Illinois residents employed
outside | ||
of Illinois by a taxpayer, for educational or vocational | ||
training in
semi-technical or technical fields or semi-skilled | ||
or skilled fields, which
were deducted from gross income in the | ||
computation of taxable income. The
credit against the tax | ||
imposed by subsections (a) and (b) shall be 1.6% of
such | ||
training expenses. For partners, shareholders of subchapter S
| ||
corporations, and owners of limited liability companies, if the | ||
liability
company is treated as a partnership for purposes of | ||
federal and State income
taxation, there shall be allowed a | ||
credit under this subsection (j) to be
determined in accordance | ||
with the determination of income and distributive
share of | ||
income under Sections 702 and 704 and subchapter S of the | ||
Internal
Revenue Code. | ||
Any credit allowed under this subsection which is unused in | ||
the year
the credit is earned may be carried forward to each of | ||
the 5 taxable
years following the year for which the credit is | ||
first computed until it is
used. This credit shall be applied | ||
first to the earliest year for which
there is a liability. If | ||
there is a credit under this subsection from more
than one tax | ||
year that is available to offset a liability the earliest
| ||
credit arising under this subsection shall be applied first. No | ||
carryforward
credit may be claimed in any tax year ending on or | ||
after
December 31, 2003. |
(k) Research and development credit. For tax years ending | ||
after July 1, 1990 and prior to
December 31, 2003, and | ||
beginning again for tax years ending on or after December 31, | ||
2004, and ending prior to January 1, 2022 January 1, 2016 , a | ||
taxpayer shall be
allowed a credit against the tax imposed by | ||
subsections (a) and (b) of this
Section for increasing research | ||
activities in this State. The credit
allowed against the tax | ||
imposed by subsections (a) and (b) shall be equal
to 6 1/2% of | ||
the qualifying expenditures for increasing research activities
| ||
in this State. For partners, shareholders of subchapter S | ||
corporations, and
owners of limited liability companies, if the | ||
liability company is treated as a
partnership for purposes of | ||
federal and State income taxation, there shall be
allowed a | ||
credit under this subsection to be determined in accordance | ||
with the
determination of income and distributive share of | ||
income under Sections 702 and
704 and subchapter S of the | ||
Internal Revenue Code. | ||
For purposes of this subsection, "qualifying expenditures" | ||
means the
qualifying expenditures as defined for the federal | ||
credit for increasing
research activities which would be | ||
allowable under Section 41 of the
Internal Revenue Code and | ||
which are conducted in this State, "qualifying
expenditures for | ||
increasing research activities in this State" means the
excess | ||
of qualifying expenditures for the taxable year in which | ||
incurred
over qualifying expenditures for the base period, | ||
"qualifying expenditures
for the base period" means the average |
of the qualifying expenditures for
each year in the base | ||
period, and "base period" means the 3 taxable years
immediately | ||
preceding the taxable year for which the determination is
being | ||
made. | ||
Any credit in excess of the tax liability for the taxable | ||
year
may be carried forward. A taxpayer may elect to have the
| ||
unused credit shown on its final completed return carried over | ||
as a credit
against the tax liability for the following 5 | ||
taxable years or until it has
been fully used, whichever occurs | ||
first; provided that no credit earned in a tax year ending | ||
prior to December 31, 2003 may be carried forward to any year | ||
ending on or after December 31, 2003. | ||
If an unused credit is carried forward to a given year from | ||
2 or more
earlier years, that credit arising in the earliest | ||
year will be applied
first against the tax liability for the | ||
given year. If a tax liability for
the given year still | ||
remains, the credit from the next earliest year will
then be | ||
applied, and so on, until all credits have been used or no tax
| ||
liability for the given year remains. Any remaining unused | ||
credit or
credits then will be carried forward to the next | ||
following year in which a
tax liability is incurred, except | ||
that no credit can be carried forward to
a year which is more | ||
than 5 years after the year in which the expense for
which the | ||
credit is given was incurred. | ||
No inference shall be drawn from this amendatory Act of the | ||
91st General
Assembly in construing this Section for taxable |
years beginning before January
1, 1999. | ||
It is the intent of the General Assembly that the research | ||
and development credit under this subsection (k) shall apply | ||
continuously for all tax years ending on or after December 31, | ||
2004 and ending prior to January 1, 2022, including, but not | ||
limited to, the period beginning on January 1, 2016 and ending | ||
on the effective date of this amendatory Act of the 100th | ||
General Assembly. All actions taken in reliance on the | ||
continuation of the credit under this subsection (k) by any | ||
taxpayer are hereby validated. | ||
(l) Environmental Remediation Tax Credit. | ||
(i) For tax years ending after December 31, 1997 and on | ||
or before
December 31, 2001, a taxpayer shall be allowed a | ||
credit against the tax
imposed by subsections (a) and (b) | ||
of this Section for certain amounts paid
for unreimbursed | ||
eligible remediation costs, as specified in this | ||
subsection.
For purposes of this Section, "unreimbursed | ||
eligible remediation costs" means
costs approved by the | ||
Illinois Environmental Protection Agency ("Agency") under
| ||
Section 58.14 of the Environmental Protection Act that were | ||
paid in performing
environmental remediation at a site for | ||
which a No Further Remediation Letter
was issued by the | ||
Agency and recorded under Section 58.10 of the | ||
Environmental
Protection Act. The credit must be claimed | ||
for the taxable year in which
Agency approval of the | ||
eligible remediation costs is granted. The credit is
not |
available to any taxpayer if the taxpayer or any related | ||
party caused or
contributed to, in any material respect, a | ||
release of regulated substances on,
in, or under the site | ||
that was identified and addressed by the remedial
action | ||
pursuant to the Site Remediation Program of the | ||
Environmental Protection
Act. After the Pollution Control | ||
Board rules are adopted pursuant to the
Illinois | ||
Administrative Procedure Act for the administration and | ||
enforcement of
Section 58.9 of the Environmental | ||
Protection Act, determinations as to credit
availability | ||
for purposes of this Section shall be made consistent with | ||
those
rules. For purposes of this Section, "taxpayer" | ||
includes a person whose tax
attributes the taxpayer has | ||
succeeded to under Section 381 of the Internal
Revenue Code | ||
and "related party" includes the persons disallowed a | ||
deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||
Section 267 of the Internal
Revenue Code by virtue of being | ||
a related taxpayer, as well as any of its
partners. The | ||
credit allowed against the tax imposed by subsections (a) | ||
and
(b) shall be equal to 25% of the unreimbursed eligible | ||
remediation costs in
excess of $100,000 per site, except | ||
that the $100,000 threshold shall not apply
to any site | ||
contained in an enterprise zone as determined by the | ||
Department of
Commerce and Community Affairs (now | ||
Department of Commerce and Economic Opportunity). The | ||
total credit allowed shall not exceed
$40,000 per year with |
a maximum total of $150,000 per site. For partners and
| ||
shareholders of subchapter S corporations, there shall be | ||
allowed a credit
under this subsection to be determined in | ||
accordance with the determination of
income and | ||
distributive share of income under Sections 702 and 704 and
| ||
subchapter S of the Internal Revenue Code. | ||
(ii) A credit allowed under this subsection that is | ||
unused in the year
the credit is earned may be carried | ||
forward to each of the 5 taxable years
following the year | ||
for which the credit is first earned until it is used.
The | ||
term "unused credit" does not include any amounts of | ||
unreimbursed eligible
remediation costs in excess of the | ||
maximum credit per site authorized under
paragraph (i). | ||
This credit shall be applied first to the earliest year
for | ||
which there is a liability. If there is a credit under this | ||
subsection
from more than one tax year that is available to | ||
offset a liability, the
earliest credit arising under this | ||
subsection shall be applied first. A
credit allowed under | ||
this subsection may be sold to a buyer as part of a sale
of | ||
all or part of the remediation site for which the credit | ||
was granted. The
purchaser of a remediation site and the | ||
tax credit shall succeed to the unused
credit and remaining | ||
carry-forward period of the seller. To perfect the
| ||
transfer, the assignor shall record the transfer in the | ||
chain of title for the
site and provide written notice to | ||
the Director of the Illinois Department of
Revenue of the |
assignor's intent to sell the remediation site and the | ||
amount of
the tax credit to be transferred as a portion of | ||
the sale. In no event may a
credit be transferred to any | ||
taxpayer if the taxpayer or a related party would
not be | ||
eligible under the provisions of subsection (i). | ||
(iii) For purposes of this Section, the term "site" | ||
shall have the same
meaning as under Section 58.2 of the | ||
Environmental Protection Act. | ||
(m) Education expense credit. Beginning with tax years | ||
ending after
December 31, 1999, a taxpayer who
is the custodian | ||
of one or more qualifying pupils shall be allowed a credit
| ||
against the tax imposed by subsections (a) and (b) of this | ||
Section for
qualified education expenses incurred on behalf of | ||
the qualifying pupils.
The credit shall be equal to 25% of | ||
qualified education expenses, but in no
event may the total | ||
credit under this subsection claimed by a
family that is the
| ||
custodian of qualifying pupils exceed (i) $500 for tax years | ||
ending prior to December 31, 2017, and (ii) $750 for tax years | ||
ending on or after December 31, 2017 . In no event shall a | ||
credit under
this subsection reduce the taxpayer's liability | ||
under this Act to less than
zero. Notwithstanding any other | ||
provision of law, for taxable years beginning on or after | ||
January 1, 2017, no taxpayer may claim a credit under this | ||
subsection (m) if the taxpayer's adjusted gross income for the | ||
taxable year exceeds (i) $500,000, in the case of spouses | ||
filing a joint federal tax return or (ii) $250,000, in the case |
of all other taxpayers. This subsection is exempt from the | ||
provisions of Section 250 of this
Act. | ||
For purposes of this subsection: | ||
"Qualifying pupils" means individuals who (i) are | ||
residents of the State of
Illinois, (ii) are under the age of | ||
21 at the close of the school year for
which a credit is | ||
sought, and (iii) during the school year for which a credit
is | ||
sought were full-time pupils enrolled in a kindergarten through | ||
twelfth
grade education program at any school, as defined in | ||
this subsection. | ||
"Qualified education expense" means the amount incurred
on | ||
behalf of a qualifying pupil in excess of $250 for tuition, | ||
book fees, and
lab fees at the school in which the pupil is | ||
enrolled during the regular school
year. | ||
"School" means any public or nonpublic elementary or | ||
secondary school in
Illinois that is in compliance with Title | ||
VI of the Civil Rights Act of 1964
and attendance at which | ||
satisfies the requirements of Section 26-1 of the
School Code, | ||
except that nothing shall be construed to require a child to
| ||
attend any particular public or nonpublic school to qualify for | ||
the credit
under this Section. | ||
"Custodian" means, with respect to qualifying pupils, an | ||
Illinois resident
who is a parent, the parents, a legal | ||
guardian, or the legal guardians of the
qualifying pupils. | ||
(n) River Edge Redevelopment Zone site remediation tax | ||
credit.
|
(i) For tax years ending on or after December 31, 2006, | ||
a taxpayer shall be allowed a credit against the tax | ||
imposed by subsections (a) and (b) of this Section for | ||
certain amounts paid for unreimbursed eligible remediation | ||
costs, as specified in this subsection. For purposes of | ||
this Section, "unreimbursed eligible remediation costs" | ||
means costs approved by the Illinois Environmental | ||
Protection Agency ("Agency") under Section 58.14a of the | ||
Environmental Protection Act that were paid in performing | ||
environmental remediation at a site within a River Edge | ||
Redevelopment Zone for which a No Further Remediation | ||
Letter was issued by the Agency and recorded under Section | ||
58.10 of the Environmental Protection Act. The credit must | ||
be claimed for the taxable year in which Agency approval of | ||
the eligible remediation costs is granted. The credit is | ||
not available to any taxpayer if the taxpayer or any | ||
related party caused or contributed to, in any material | ||
respect, a release of regulated substances on, in, or under | ||
the site that was identified and addressed by the remedial | ||
action pursuant to the Site Remediation Program of the | ||
Environmental Protection Act. Determinations as to credit | ||
availability for purposes of this Section shall be made | ||
consistent with rules adopted by the Pollution Control | ||
Board pursuant to the Illinois Administrative Procedure | ||
Act for the administration and enforcement of Section 58.9 | ||
of the Environmental Protection Act. For purposes of this |
Section, "taxpayer" includes a person whose tax attributes | ||
the taxpayer has succeeded to under Section 381 of the | ||
Internal Revenue Code and "related party" includes the | ||
persons disallowed a deduction for losses by paragraphs | ||
(b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||
Code by virtue of being a related taxpayer, as well as any | ||
of its partners. The credit allowed against the tax imposed | ||
by subsections (a) and (b) shall be equal to 25% of the | ||
unreimbursed eligible remediation costs in excess of | ||
$100,000 per site. | ||
(ii) A credit allowed under this subsection that is | ||
unused in the year the credit is earned may be carried | ||
forward to each of the 5 taxable years following the year | ||
for which the credit is first earned until it is used. This | ||
credit shall be applied first to the earliest year for | ||
which there is a liability. If there is a credit under this | ||
subsection from more than one tax year that is available to | ||
offset a liability, the earliest credit arising under this | ||
subsection shall be applied first. A credit allowed under | ||
this subsection may be sold to a buyer as part of a sale of | ||
all or part of the remediation site for which the credit | ||
was granted. The purchaser of a remediation site and the | ||
tax credit shall succeed to the unused credit and remaining | ||
carry-forward period of the seller. To perfect the | ||
transfer, the assignor shall record the transfer in the | ||
chain of title for the site and provide written notice to |
the Director of the Illinois Department of Revenue of the | ||
assignor's intent to sell the remediation site and the | ||
amount of the tax credit to be transferred as a portion of | ||
the sale. In no event may a credit be transferred to any | ||
taxpayer if the taxpayer or a related party would not be | ||
eligible under the provisions of subsection (i). | ||
(iii) For purposes of this Section, the term "site" | ||
shall have the same meaning as under Section 58.2 of the | ||
Environmental Protection Act. | ||
(o) For each of taxable years during the Compassionate Use | ||
of Medical Cannabis Pilot Program, a surcharge is imposed on | ||
all taxpayers on income arising from the sale or exchange of | ||
capital assets, depreciable business property, real property | ||
used in the trade or business, and Section 197 intangibles of | ||
an organization registrant under the Compassionate Use of | ||
Medical Cannabis Pilot Program Act. The amount of the surcharge | ||
is equal to the amount of federal income tax liability for the | ||
taxable year attributable to those sales and exchanges. The | ||
surcharge imposed does not apply if: | ||
(1) the medical cannabis cultivation center | ||
registration, medical cannabis dispensary registration, or | ||
the property of a registration is transferred as a result | ||
of any of the following: | ||
(A) bankruptcy, a receivership, or a debt | ||
adjustment initiated by or against the initial | ||
registration or the substantial owners of the initial |
registration; | ||
(B) cancellation, revocation, or termination of | ||
any registration by the Illinois Department of Public | ||
Health; | ||
(C) a determination by the Illinois Department of | ||
Public Health that transfer of the registration is in | ||
the best interests of Illinois qualifying patients as | ||
defined by the Compassionate Use of Medical Cannabis | ||
Pilot Program Act; | ||
(D) the death of an owner of the equity interest in | ||
a registrant; | ||
(E) the acquisition of a controlling interest in | ||
the stock or substantially all of the assets of a | ||
publicly traded company; | ||
(F) a transfer by a parent company to a wholly | ||
owned subsidiary; or | ||
(G) the transfer or sale to or by one person to | ||
another person where both persons were initial owners | ||
of the registration when the registration was issued; | ||
or | ||
(2) the cannabis cultivation center registration, | ||
medical cannabis dispensary registration, or the | ||
controlling interest in a registrant's property is | ||
transferred in a transaction to lineal descendants in which | ||
no gain or loss is recognized or as a result of a | ||
transaction in accordance with Section 351 of the Internal |
Revenue Code in which no gain or loss is recognized. | ||
(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, | ||
eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756, | ||
eff. 7-16-14.) | ||
(35 ILCS 5/202.5) | ||
Sec. 202.5. Net income attributable to the period beginning | ||
prior to the first day of a month and ending after the last day | ||
of the preceding month January 1 of any year and ending after | ||
December 31 of the preceding year . | ||
(a) In general. With respect to the taxable year of a | ||
taxpayer beginning prior to the first day of a month and ending | ||
after the last day of the preceding month January 1 of any year | ||
and ending after December 31 of the preceding year , net income | ||
for the period after the last day of the preceding month | ||
December 31 of the preceding year , is that amount that bears | ||
the same ratio to the taxpayer's net income for the entire | ||
taxable year as the number of days in that taxable year after | ||
the last day of the preceding month December 31 bears to the | ||
total number of days in that taxable year, and the net income | ||
for the period prior to the first day of the month January 1 is | ||
that amount that bears the same ratio to the taxpayer's net | ||
income for the entire taxable year as the number of days in | ||
that taxable year prior to the first day of the month January 1 | ||
bears to the total number of days in that taxable year. | ||
(b) Election to attribute income and deduction items |
specifically to the respective portions of a taxable year prior | ||
to the first day of a month and ending after the last day of the | ||
preceding month January 1 of any year and after December 31 of | ||
the preceding year . In the case of a taxpayer with a taxable | ||
year beginning prior to the first day of a month and ending | ||
after the last day of the preceding month January 1 of any year | ||
and ending after December 31 of the preceding year , the | ||
taxpayer may elect, instead of the procedure established in | ||
subsection (a) of this Section, to determine net income on a | ||
specific accounting basis for the 2 portions of the taxable | ||
year: | ||
(1) from the beginning of the taxable year through the | ||
last day of that apportionment period December 31 ; and | ||
(2) from the first day of the next apportionment period | ||
January 1 through the end of the taxable year. | ||
The election provided by this subsection must be made in | ||
the form and manner that the Department requires by rule, and | ||
must be made no later than the due date (including any | ||
extensions thereof) for the filing of the return for the | ||
taxable year, and is irrevocable. | ||
(c) If the taxpayer elects specific accounting under | ||
subsection (b): | ||
(1) there shall be taken into account in computing base | ||
income for each of the 2 portions of the taxable year only | ||
those items earned, received, paid, incurred or accrued in | ||
each such period; |
(2) for purposes of apportioning business income of the | ||
taxpayer, the provisions in Article 3 shall be applied on | ||
the basis of the taxpayer's full taxable year, without | ||
regard to this Section; | ||
(3) the exemption provided by Section 204 shall be | ||
divided between the respective periods in amounts which | ||
bear the same ratio to the total exemption allowable under | ||
Section 204 (determined without regard to this Section) as | ||
the total number of days in each period bears to the total | ||
number of days in the taxable year; | ||
(4) for purposes of this subsection, net income may not | ||
be negative for either of the two portions of the taxable | ||
year and positive for the other; if net income for one | ||
portion of the taxable year would be positive and net | ||
income for the other portion would otherwise be negative, | ||
the net income for the entire taxable year shall be | ||
attributed to the portion of the taxable year with positive | ||
net income and the net income for the other portion of the | ||
taxable year shall be zero; and | ||
(5) the net loss carryforward deduction for the taxable | ||
year under Section 207 may not exceed combined net income | ||
of both portions of the taxable year, and shall be used | ||
against the net income of the portion of the taxable year | ||
from the beginning of the taxable year through the last day | ||
of the preceding month December 31 before any remaining | ||
amount is used against the net income of the latter portion |
of the taxable year.
| ||
(Source: P.A. 96-1496, eff. 1-13-11.) | ||
(35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||
Sec. 203. Base income defined. | ||
(a) Individuals. | ||
(1) In general. In the case of an individual, base | ||
income means an
amount equal to the taxpayer's adjusted | ||
gross income for the taxable
year as modified by paragraph | ||
(2). | ||
(2) Modifications. The adjusted gross income referred | ||
to in
paragraph (1) shall be modified by adding thereto the | ||
sum of the
following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest or dividends during the | ||
taxable year to the extent excluded
from gross income | ||
in the computation of adjusted gross income, except | ||
stock
dividends of qualified public utilities | ||
described in Section 305(e) of the
Internal Revenue | ||
Code; | ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of adjusted gross
income for the | ||
taxable year; | ||
(C) An amount equal to the amount received during | ||
the taxable year
as a recovery or refund of real |
property taxes paid with respect to the
taxpayer's | ||
principal residence under the Revenue Act of
1939 and | ||
for which a deduction was previously taken under | ||
subparagraph (L) of
this paragraph (2) prior to July 1, | ||
1991, the retrospective application date of
Article 4 | ||
of Public Act 87-17. In the case of multi-unit or | ||
multi-use
structures and farm dwellings, the taxes on | ||
the taxpayer's principal residence
shall be that | ||
portion of the total taxes for the entire property | ||
which is
attributable to such principal residence; | ||
(D) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from gross
income in the | ||
computation of adjusted gross income; | ||
(D-5) An amount, to the extent not included in | ||
adjusted gross income,
equal to the amount of money | ||
withdrawn by the taxpayer in the taxable year from
a | ||
medical care savings account and the interest earned on | ||
the account in the
taxable year of a withdrawal | ||
pursuant to subsection (b) of Section 20 of the
Medical | ||
Care Savings Account Act or subsection (b) of Section | ||
20 of the
Medical Care Savings Account Act of 2000; | ||
(D-10) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation costs | ||
that the individual
deducted in computing adjusted | ||
gross income and for which the
individual claims a |
credit under subsection (l) of Section 201; | ||
(D-15) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of the | ||
Internal Revenue Code; | ||
(D-16) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (D-15), then | ||
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (Z) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction | ||
modification under subparagraph (Z), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(D-17) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or |
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact that foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income under Sections 951 through 964 | ||
of the Internal Revenue Code and amounts included in | ||
gross income under Section 78 of the Internal Revenue | ||
Code) with respect to the stock of the same person to | ||
whom the interest was paid, accrued, or incurred. | ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person who |
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the person, during the same taxable | ||
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and | ||
terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or | ||
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or |
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing | ||
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(D-18) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of |
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income under Sections 951 through 964 of the Internal | ||
Revenue Code and amounts included in gross income under | ||
Section 78 of the Internal Revenue Code) with respect | ||
to the stock of the same person to whom the intangible | ||
expenses and costs were directly or indirectly paid, | ||
incurred, or accrued. The preceding sentence does not | ||
apply to the extent that the same dividends caused a | ||
reduction to the addition modification required under | ||
Section 203(a)(2)(D-17) of this Act. As used in this | ||
subparagraph, the term "intangible expenses and costs" | ||
includes (1) expenses, losses, and costs for, or | ||
related to, the direct or indirect acquisition, use, | ||
maintenance or management, ownership, sale, exchange, | ||
or any other disposition of intangible property; (2) | ||
losses incurred, directly or indirectly, from |
factoring transactions or discounting transactions; | ||
(3) royalty, patent, technical, and copyright fees; | ||
(4) licensing fees; and (5) other similar expenses and | ||
costs.
For purposes of this subparagraph, "intangible | ||
property" includes patents, patent applications, trade | ||
names, trademarks, service marks, copyrights, mask | ||
works, trade secrets, and similar types of intangible | ||
assets. | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who is | ||
subject in a foreign country or state, other than a | ||
state which requires mandatory unitary reporting, | ||
to a tax on or measured by net income with respect | ||
to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the |
intangible expense or cost between the | ||
taxpayer and the person did not have as a | ||
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person if the | ||
taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an alternative | ||
method of apportionment under Section 304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(D-19) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed |
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock | ||
of the same person to whom the premiums and costs were | ||
directly or indirectly paid, incurred, or accrued. The | ||
preceding sentence does not apply to the extent that | ||
the same dividends caused a reduction to the addition | ||
modification required under Section 203(a)(2)(D-17) or | ||
Section 203(a)(2)(D-18) of this Act.
| ||
(D-20) For taxable years beginning on or after | ||
January 1,
2002 and ending on or before December 31, | ||
2006, in
the
case of a distribution from a qualified |
tuition program under Section 529 of
the Internal | ||
Revenue Code, other than (i) a distribution from a | ||
College Savings
Pool created under Section 16.5 of the | ||
State Treasurer Act or (ii) a
distribution from the | ||
Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||
the amount excluded from gross income under Section | ||
529(c)(3)(B). For taxable years beginning on or after | ||
January 1, 2007, in the case of a distribution from a | ||
qualified tuition program under Section 529 of the | ||
Internal Revenue Code, other than (i) a distribution | ||
from a College Savings Pool created under Section 16.5 | ||
of the State Treasurer Act, (ii) a distribution from | ||
the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||
distribution from a qualified tuition program under | ||
Section 529 of the Internal Revenue Code that (I) | ||
adopts and determines that its offering materials | ||
comply with the College Savings Plans Network's | ||
disclosure principles and (II) has made reasonable | ||
efforts to inform in-state residents of the existence | ||
of in-state qualified tuition programs by informing | ||
Illinois residents directly and, where applicable, to | ||
inform financial intermediaries distributing the | ||
program to inform in-state residents of the existence | ||
of in-state qualified tuition programs at least | ||
annually, an amount equal to the amount excluded from | ||
gross income under Section 529(c)(3)(B). |
For the purposes of this subparagraph (D-20), a | ||
qualified tuition program has made reasonable efforts | ||
if it makes disclosures (which may use the term | ||
"in-state program" or "in-state plan" and need not | ||
specifically refer to Illinois or its qualified | ||
programs by name) (i) directly to prospective | ||
participants in its offering materials or makes a | ||
public disclosure, such as a website posting; and (ii) | ||
where applicable, to intermediaries selling the | ||
out-of-state program in the same manner that the | ||
out-of-state program distributes its offering | ||
materials; | ||
(D-21) For taxable years beginning on or after | ||
January 1, 2007, in the case of transfer of moneys from | ||
a qualified tuition program under Section 529 of the | ||
Internal Revenue Code that is administered by the State | ||
to an out-of-state program, an amount equal to the | ||
amount of moneys previously deducted from base income | ||
under subsection (a)(2)(Y) of this Section; | ||
(D-22) For taxable years beginning on or after | ||
January 1, 2009, in the case of a nonqualified | ||
withdrawal or refund of moneys from a qualified tuition | ||
program under Section 529 of the Internal Revenue Code | ||
administered by the State that is not used for | ||
qualified expenses at an eligible education | ||
institution, an amount equal to the contribution |
component of the nonqualified withdrawal or refund | ||
that was previously deducted from base income under | ||
subsection (a)(2)(y) of this Section, provided that | ||
the withdrawal or refund did not result from the | ||
beneficiary's death or disability; | ||
(D-23) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, | ||
determined without regard to Section 218(c) of this | ||
Act; | ||
(D-24) For taxable years ending on or after | ||
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code | ||
for the taxable year; | ||
and by deducting from the total so obtained the
sum of the | ||
following amounts: | ||
(E) For taxable years ending before December 31, | ||
2001,
any amount included in such total in respect of | ||
any compensation
(including but not limited to any | ||
compensation paid or accrued to a
serviceman while a | ||
prisoner of war or missing in action) paid to a | ||
resident
by reason of being on active duty in the Armed | ||
Forces of the United States
and in respect of any | ||
compensation paid or accrued to a resident who as a
| ||
governmental employee was a prisoner of war or missing | ||
in action, and in
respect of any compensation paid to a | ||
resident in 1971 or thereafter for
annual training |
performed pursuant to Sections 502 and 503, Title 32,
| ||
United States Code as a member of the Illinois National | ||
Guard or, beginning with taxable years ending on or | ||
after December 31, 2007, the National Guard of any | ||
other state.
For taxable years ending on or after | ||
December 31, 2001, any amount included in
such total in | ||
respect of any compensation (including but not limited | ||
to any
compensation paid or accrued to a serviceman | ||
while a prisoner of war or missing
in action) paid to a | ||
resident by reason of being a member of any component | ||
of
the Armed Forces of the United States and in respect | ||
of any compensation paid
or accrued to a resident who | ||
as a governmental employee was a prisoner of war
or | ||
missing in action, and in respect of any compensation | ||
paid to a resident in
2001 or thereafter by reason of | ||
being a member of the Illinois National Guard or, | ||
beginning with taxable years ending on or after | ||
December 31, 2007, the National Guard of any other | ||
state.
The provisions of this subparagraph (E) are | ||
exempt
from the provisions of Section 250; | ||
(F) An amount equal to all amounts included in such | ||
total pursuant
to the provisions of Sections 402(a), | ||
402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||
Internal Revenue Code, or included in such total as
| ||
distributions under the provisions of any retirement | ||
or disability plan for
employees of any governmental |
agency or unit, or retirement payments to
retired | ||
partners, which payments are excluded in computing net | ||
earnings
from self employment by Section 1402 of the | ||
Internal Revenue Code and
regulations adopted pursuant | ||
thereto; | ||
(G) The valuation limitation amount; | ||
(H) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year; | ||
(I) An amount equal to all amounts included in such | ||
total pursuant
to the provisions of Section 111 of the | ||
Internal Revenue Code as a
recovery of items previously | ||
deducted from adjusted gross income in the
computation | ||
of taxable income; | ||
(J) An amount equal to those dividends included in | ||
such total which were
paid by a corporation which | ||
conducts business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act, and conducts
| ||
substantially all of its operations in a River Edge | ||
Redevelopment Zone or zones. This subparagraph (J) is | ||
exempt from the provisions of Section 250; | ||
(K) An amount equal to those dividends included in | ||
such total that
were paid by a corporation that | ||
conducts business operations in a federally
designated | ||
Foreign Trade Zone or Sub-Zone and that is designated a |
High Impact
Business located in Illinois; provided | ||
that dividends eligible for the
deduction provided in | ||
subparagraph (J) of paragraph (2) of this subsection
| ||
shall not be eligible for the deduction provided under | ||
this subparagraph
(K); | ||
(L) For taxable years ending after December 31, | ||
1983, an amount equal to
all social security benefits | ||
and railroad retirement benefits included in
such | ||
total pursuant to Sections 72(r) and 86 of the Internal | ||
Revenue Code; | ||
(M) With the exception of any amounts subtracted | ||
under subparagraph
(N), an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a) (2), and 265(2) of the Internal Revenue Code, | ||
and all amounts of expenses allocable
to interest and | ||
disallowed as deductions by Section 265(1) of the | ||
Internal
Revenue Code;
and (ii) for taxable years
| ||
ending on or after August 13, 1999, Sections 171(a)(2), | ||
265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||
Code, plus, for taxable years ending on or after | ||
December 31, 2011, Section 45G(e)(3) of the Internal | ||
Revenue Code and, for taxable years ending on or after | ||
December 31, 2008, any amount included in gross income | ||
under Section 87 of the Internal Revenue Code; the | ||
provisions of this
subparagraph are exempt from the | ||
provisions of Section 250; |
(N) An amount equal to all amounts included in such | ||
total which are
exempt from taxation by this State | ||
either by reason of its statutes or
Constitution
or by | ||
reason of the Constitution, treaties or statutes of the | ||
United States;
provided that, in the case of any | ||
statute of this State that exempts income
derived from | ||
bonds or other obligations from the tax imposed under | ||
this Act,
the amount exempted shall be the interest net | ||
of bond premium amortization; | ||
(O) An amount equal to any contribution made to a | ||
job training
project established pursuant to the Tax | ||
Increment Allocation Redevelopment Act; | ||
(P) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code or of any itemized deduction | ||
taken from adjusted gross income in the computation of | ||
taxable income for restoration of substantial amounts | ||
held under claim of right for the taxable year; | ||
(Q) An amount equal to any amounts included in such | ||
total, received by
the taxpayer as an acceleration in | ||
the payment of life, endowment or annuity
benefits in | ||
advance of the time they would otherwise be payable as | ||
an indemnity
for a terminal illness; | ||
(R) An amount equal to the amount of any federal or |
State bonus paid
to veterans of the Persian Gulf War; | ||
(S) An amount, to the extent included in adjusted | ||
gross income, equal
to the amount of a contribution | ||
made in the taxable year on behalf of the
taxpayer to a | ||
medical care savings account established under the | ||
Medical Care
Savings Account Act or the Medical Care | ||
Savings Account Act of 2000 to the
extent the | ||
contribution is accepted by the account
administrator | ||
as provided in that Act; | ||
(T) An amount, to the extent included in adjusted | ||
gross income, equal to
the amount of interest earned in | ||
the taxable year on a medical care savings
account | ||
established under the Medical Care Savings Account Act | ||
or the Medical
Care Savings Account Act of 2000 on | ||
behalf of the
taxpayer, other than interest added | ||
pursuant to item (D-5) of this paragraph
(2); | ||
(U) For one taxable year beginning on or after | ||
January 1,
1994, an
amount equal to the total amount of | ||
tax imposed and paid under subsections (a)
and (b) of | ||
Section 201 of this Act on grant amounts received by | ||
the taxpayer
under the Nursing Home Grant Assistance | ||
Act during the taxpayer's taxable years
1992 and 1993; | ||
(V) Beginning with tax years ending on or after | ||
December 31, 1995 and
ending with tax years ending on | ||
or before December 31, 2004, an amount equal to
the | ||
amount paid by a taxpayer who is a
self-employed |
taxpayer, a partner of a partnership, or a
shareholder | ||
in a Subchapter S corporation for health insurance or | ||
long-term
care insurance for that taxpayer or that | ||
taxpayer's spouse or dependents, to
the extent that the | ||
amount paid for that health insurance or long-term care
| ||
insurance may be deducted under Section 213 of the | ||
Internal Revenue Code, has not been deducted on the | ||
federal income tax return of the taxpayer,
and does not | ||
exceed the taxable income attributable to that | ||
taxpayer's income,
self-employment income, or | ||
Subchapter S corporation income; except that no
| ||
deduction shall be allowed under this item (V) if the | ||
taxpayer is eligible to
participate in any health | ||
insurance or long-term care insurance plan of an
| ||
employer of the taxpayer or the taxpayer's
spouse. The | ||
amount of the health insurance and long-term care | ||
insurance
subtracted under this item (V) shall be | ||
determined by multiplying total
health insurance and | ||
long-term care insurance premiums paid by the taxpayer
| ||
times a number that represents the fractional | ||
percentage of eligible medical
expenses under Section | ||
213 of the Internal Revenue Code of 1986 not actually
| ||
deducted on the taxpayer's federal income tax return; | ||
(W) For taxable years beginning on or after January | ||
1, 1998,
all amounts included in the taxpayer's federal | ||
gross income
in the taxable year from amounts converted |
from a regular IRA to a Roth IRA.
This paragraph is | ||
exempt from the provisions of Section
250; | ||
(X) For taxable year 1999 and thereafter, an amount | ||
equal to the
amount of any (i) distributions, to the | ||
extent includible in gross income for
federal income | ||
tax purposes, made to the taxpayer because of his or | ||
her status
as a victim of persecution for racial or | ||
religious reasons by Nazi Germany or
any other Axis | ||
regime or as an heir of the victim and (ii) items
of | ||
income, to the extent
includible in gross income for | ||
federal income tax purposes, attributable to,
derived | ||
from or in any way related to assets stolen from, | ||
hidden from, or
otherwise lost to a victim of
| ||
persecution for racial or religious reasons by Nazi | ||
Germany or any other Axis
regime immediately prior to, | ||
during, and immediately after World War II,
including, | ||
but
not limited to, interest on the proceeds receivable | ||
as insurance
under policies issued to a victim of | ||
persecution for racial or religious
reasons
by Nazi | ||
Germany or any other Axis regime by European insurance | ||
companies
immediately prior to and during World War II;
| ||
provided, however, this subtraction from federal | ||
adjusted gross income does not
apply to assets acquired | ||
with such assets or with the proceeds from the sale of
| ||
such assets; provided, further, this paragraph shall | ||
only apply to a taxpayer
who was the first recipient of |
such assets after their recovery and who is a
victim of | ||
persecution for racial or religious reasons
by Nazi | ||
Germany or any other Axis regime or as an heir of the | ||
victim. The
amount of and the eligibility for any | ||
public assistance, benefit, or
similar entitlement is | ||
not affected by the inclusion of items (i) and (ii) of
| ||
this paragraph in gross income for federal income tax | ||
purposes.
This paragraph is exempt from the provisions | ||
of Section 250; | ||
(Y) For taxable years beginning on or after January | ||
1, 2002
and ending
on or before December 31, 2004, | ||
moneys contributed in the taxable year to a College | ||
Savings Pool account under
Section 16.5 of the State | ||
Treasurer Act, except that amounts excluded from
gross | ||
income under Section 529(c)(3)(C)(i) of the Internal | ||
Revenue Code
shall not be considered moneys | ||
contributed under this subparagraph (Y). For taxable | ||
years beginning on or after January 1, 2005, a maximum | ||
of $10,000
contributed
in the
taxable year to (i) a | ||
College Savings Pool account under Section 16.5 of the
| ||
State
Treasurer Act or (ii) the Illinois Prepaid | ||
Tuition Trust Fund,
except that
amounts excluded from | ||
gross income under Section 529(c)(3)(C)(i) of the
| ||
Internal
Revenue Code shall not be considered moneys | ||
contributed under this subparagraph
(Y). For purposes | ||
of this subparagraph, contributions made by an |
employer on behalf of an employee, or matching | ||
contributions made by an employee, shall be treated as | ||
made by the employee. This
subparagraph (Y) is exempt | ||
from the provisions of Section 250; | ||
(Z) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction; | ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by |
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0. | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (Z) is exempt from the provisions of | ||
Section 250; | ||
(AA) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of
property for which the | ||
taxpayer was required in any taxable year to make an
| ||
addition modification under subparagraph (D-15), then | ||
an amount equal to that
addition modification.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition | ||
modification under subparagraph (D-15), then an amount | ||
equal to that addition modification.
|
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. | ||
This subparagraph (AA) is exempt from the | ||
provisions of Section 250; | ||
(BB) Any amount included in adjusted gross income, | ||
other
than
salary,
received by a driver in a | ||
ridesharing arrangement using a motor vehicle; | ||
(CC) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of that addition modification, and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of that | ||
addition modification. This subparagraph (CC) is | ||
exempt from the provisions of Section 250; | ||
(DD) An amount equal to the interest income taken |
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(a)(2)(D-17) for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, to the same person. This subparagraph (DD) | ||
is exempt from the provisions of Section 250; | ||
(EE) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that |
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(a)(2)(D-18) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same foreign | ||
person. This subparagraph (EE) is exempt from the | ||
provisions of Section 250; | ||
(FF) An amount equal to any amount awarded to the | ||
taxpayer during the taxable year by the Court of Claims | ||
under subsection (c) of Section 8 of the Court of | ||
Claims Act for time unjustly served in a State prison. | ||
This subparagraph (FF) is exempt from the provisions of | ||
Section 250; and | ||
(GG) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(a)(2)(D-19), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense or |
loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a | ||
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer makes | ||
the election provided for by this subparagraph (GG), | ||
the insurer to which the premiums were paid must add | ||
back to income the amount subtracted by the taxpayer | ||
pursuant to this subparagraph (GG). This subparagraph | ||
(GG) is exempt from the provisions of Section 250. | ||
(b) Corporations. | ||
(1) In general. In the case of a corporation, base | ||
income means an
amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2). | ||
(2) Modifications. The taxable income referred to in | ||
paragraph (1)
shall be modified by adding thereto the sum | ||
of the following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest and all distributions | ||
received from regulated investment
companies during | ||
the taxable year to the extent excluded from gross
| ||
income in the computation of taxable income; | ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of taxable income
for the taxable year; | ||
(C) In the case of a regulated investment company, |
an amount equal to
the excess of (i) the net long-term | ||
capital gain for the taxable year, over
(ii) the amount | ||
of the capital gain dividends designated as such in | ||
accordance
with Section 852(b)(3)(C) of the Internal | ||
Revenue Code and any amount
designated under Section | ||
852(b)(3)(D) of the Internal Revenue Code,
| ||
attributable to the taxable year (this amendatory Act | ||
of 1995
(Public Act 89-89) is declarative of existing | ||
law and is not a new
enactment); | ||
(D) The amount of any net operating loss deduction | ||
taken in arriving
at taxable income, other than a net | ||
operating loss carried forward from a
taxable year | ||
ending prior to December 31, 1986; | ||
(E) For taxable years in which a net operating loss | ||
carryback or
carryforward from a taxable year ending | ||
prior to December 31, 1986 is an
element of taxable | ||
income under paragraph (1) of subsection (e) or
| ||
subparagraph (E) of paragraph (2) of subsection (e), | ||
the amount by which
addition modifications other than | ||
those provided by this subparagraph (E)
exceeded | ||
subtraction modifications in such earlier taxable | ||
year, with the
following limitations applied in the | ||
order that they are listed: | ||
(i) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to |
December 31, 1986 shall be reduced by the amount of | ||
addition
modification under this subparagraph (E) | ||
which related to that net operating
loss and which | ||
was taken into account in calculating the base | ||
income of an
earlier taxable year, and | ||
(ii) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall not exceed the amount of | ||
such carryback or
carryforward; | ||
For taxable years in which there is a net operating | ||
loss carryback or
carryforward from more than one other | ||
taxable year ending prior to December
31, 1986, the | ||
addition modification provided in this subparagraph | ||
(E) shall
be the sum of the amounts computed | ||
independently under the preceding
provisions of this | ||
subparagraph (E) for each such taxable year; | ||
(E-5) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation costs | ||
that the corporation
deducted in computing adjusted | ||
gross income and for which the
corporation claims a | ||
credit under subsection (l) of Section 201; | ||
(E-10) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of the |
Internal Revenue Code; | ||
(E-11) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (E-10), then | ||
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (T) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction | ||
modification under subparagraph (T), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(E-12) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact the foreign person's business activity outside | ||
the United States is 80% or more of the foreign |
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of the | ||
same person to whom the interest was paid, accrued, or | ||
incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such interest; or |
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the person, during the same taxable | ||
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and | ||
terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or | ||
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing |
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(E-13) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion |
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred, or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(b)(2)(E-12) of | ||
this Act.
As used in this subparagraph, the term | ||
"intangible expenses and costs" includes (1) expenses, | ||
losses, and costs for, or related to, the direct or | ||
indirect acquisition, use, maintenance or management, | ||
ownership, sale, exchange, or any other disposition of | ||
intangible property; (2) losses incurred, directly or | ||
indirectly, from factoring transactions or discounting | ||
transactions; (3) royalty, patent, technical, and | ||
copyright fees; (4) licensing fees; and (5) other | ||
similar expenses and costs.
For purposes of this |
subparagraph, "intangible property" includes patents, | ||
patent applications, trade names, trademarks, service | ||
marks, copyrights, mask works, trade secrets, and | ||
similar types of intangible assets. | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who is | ||
subject in a foreign country or state, other than a | ||
state which requires mandatory unitary reporting, | ||
to a tax on or measured by net income with respect | ||
to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the person did not have as a | ||
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract |
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person if the | ||
taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an alternative | ||
method of apportionment under Section 304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(E-14) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is |
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock | ||
of the same person to whom the premiums and costs were | ||
directly or indirectly paid, incurred, or accrued. The | ||
preceding sentence does not apply to the extent that | ||
the same dividends caused a reduction to the addition | ||
modification required under Section 203(b)(2)(E-12) or | ||
Section 203(b)(2)(E-13) of this Act;
| ||
(E-15) For taxable years beginning after December | ||
31, 2008, any deduction for dividends paid by a captive | ||
real estate investment trust that is allowed to a real | ||
estate investment trust under Section 857(b)(2)(B) of | ||
the Internal Revenue Code for dividends paid; | ||
(E-16) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, |
determined without regard to Section 218(c) of this | ||
Act; | ||
(E-17) For taxable years ending on or after | ||
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code | ||
for the taxable year; | ||
and by deducting from the total so obtained the sum of the | ||
following
amounts: | ||
(F) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year; | ||
(G) An amount equal to any amount included in such | ||
total under
Section 78 of the Internal Revenue Code; | ||
(H) In the case of a regulated investment company, | ||
an amount equal
to the amount of exempt interest | ||
dividends as defined in subsection (b)
(5) of Section | ||
852 of the Internal Revenue Code, paid to shareholders
| ||
for the taxable year; | ||
(I) With the exception of any amounts subtracted | ||
under subparagraph
(J),
an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a) (2), and 265(a)(2) and amounts disallowed as
| ||
interest expense by Section 291(a)(3) of the Internal | ||
Revenue Code, and all amounts of expenses allocable to | ||
interest and
disallowed as deductions by Section | ||
265(a)(1) of the Internal Revenue Code;
and (ii) for |
taxable years
ending on or after August 13, 1999, | ||
Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||
832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||
for tax years ending on or after December 31, 2011, | ||
amounts disallowed as deductions by Section 45G(e)(3) | ||
of the Internal Revenue Code and, for taxable years | ||
ending on or after December 31, 2008, any amount | ||
included in gross income under Section 87 of the | ||
Internal Revenue Code and the policyholders' share of | ||
tax-exempt interest of a life insurance company under | ||
Section 807(a)(2)(B) of the Internal Revenue Code (in | ||
the case of a life insurance company with gross income | ||
from a decrease in reserves for the tax year) or | ||
Section 807(b)(1)(B) of the Internal Revenue Code (in | ||
the case of a life insurance company allowed a | ||
deduction for an increase in reserves for the tax | ||
year); the
provisions of this
subparagraph are exempt | ||
from the provisions of Section 250; | ||
(J) An amount equal to all amounts included in such | ||
total which are
exempt from taxation by this State | ||
either by reason of its statutes or
Constitution
or by | ||
reason of the Constitution, treaties or statutes of the | ||
United States;
provided that, in the case of any | ||
statute of this State that exempts income
derived from | ||
bonds or other obligations from the tax imposed under | ||
this Act,
the amount exempted shall be the interest net |
of bond premium amortization; | ||
(K) An amount equal to those dividends included in | ||
such total
which were paid by a corporation which | ||
conducts
business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act and conducts substantially | ||
all of its
operations in a River Edge Redevelopment | ||
Zone or zones. This subparagraph (K) is exempt from the | ||
provisions of Section 250; | ||
(L) An amount equal to those dividends included in | ||
such total that
were paid by a corporation that | ||
conducts business operations in a federally
designated | ||
Foreign Trade Zone or Sub-Zone and that is designated a | ||
High Impact
Business located in Illinois; provided | ||
that dividends eligible for the
deduction provided in | ||
subparagraph (K) of paragraph 2 of this subsection
| ||
shall not be eligible for the deduction provided under | ||
this subparagraph
(L); | ||
(M) For any taxpayer that is a financial | ||
organization within the meaning
of Section 304(c) of | ||
this Act, an amount included in such total as interest
| ||
income from a loan or loans made by such taxpayer to a | ||
borrower, to the extent
that such a loan is secured by | ||
property which is eligible for the River Edge | ||
Redevelopment Zone Investment Credit. To determine the | ||
portion of a loan or loans that is
secured by property |
eligible for a Section 201(f) investment
credit to the | ||
borrower, the entire principal amount of the loan or | ||
loans
between the taxpayer and the borrower should be | ||
divided into the basis of the
Section 201(f) investment | ||
credit property which secures the
loan or loans, using | ||
for this purpose the original basis of such property on
| ||
the date that it was placed in service in the River | ||
Edge Redevelopment Zone. The subtraction modification | ||
available to taxpayer in any
year under this subsection | ||
shall be that portion of the total interest paid
by the | ||
borrower with respect to such loan attributable to the | ||
eligible
property as calculated under the previous | ||
sentence. This subparagraph (M) is exempt from the | ||
provisions of Section 250; | ||
(M-1) For any taxpayer that is a financial | ||
organization within the
meaning of Section 304(c) of | ||
this Act, an amount included in such total as
interest | ||
income from a loan or loans made by such taxpayer to a | ||
borrower,
to the extent that such a loan is secured by | ||
property which is eligible for
the High Impact Business | ||
Investment Credit. To determine the portion of a
loan | ||
or loans that is secured by property eligible for a | ||
Section 201(h) investment credit to the borrower, the | ||
entire principal amount of
the loan or loans between | ||
the taxpayer and the borrower should be divided into
| ||
the basis of the Section 201(h) investment credit |
property which
secures the loan or loans, using for | ||
this purpose the original basis of such
property on the | ||
date that it was placed in service in a federally | ||
designated
Foreign Trade Zone or Sub-Zone located in | ||
Illinois. No taxpayer that is
eligible for the | ||
deduction provided in subparagraph (M) of paragraph | ||
(2) of
this subsection shall be eligible for the | ||
deduction provided under this
subparagraph (M-1). The | ||
subtraction modification available to taxpayers in
any | ||
year under this subsection shall be that portion of the | ||
total interest
paid by the borrower with respect to | ||
such loan attributable to the eligible
property as | ||
calculated under the previous sentence; | ||
(N) Two times any contribution made during the | ||
taxable year to a
designated zone organization to the | ||
extent that the contribution (i)
qualifies as a | ||
charitable contribution under subsection (c) of | ||
Section 170
of the Internal Revenue Code and (ii) must, | ||
by its terms, be used for a
project approved by the | ||
Department of Commerce and Economic Opportunity under | ||
Section 11 of the Illinois Enterprise Zone Act or under | ||
Section 10-10 of the River Edge Redevelopment Zone Act. | ||
This subparagraph (N) is exempt from the provisions of | ||
Section 250; | ||
(O) An amount equal to: (i) 85% for taxable years | ||
ending on or before
December 31, 1992, or, a percentage |
equal to the percentage allowable under
Section | ||
243(a)(1) of the Internal Revenue Code of 1986 for | ||
taxable years ending
after December 31, 1992, of the | ||
amount by which dividends included in taxable
income | ||
and received from a corporation that is not created or | ||
organized under
the laws of the United States or any | ||
state or political subdivision thereof,
including, for | ||
taxable years ending on or after December 31, 1988, | ||
dividends
received or deemed received or paid or deemed | ||
paid under Sections 951 through
965 of the Internal | ||
Revenue Code, exceed the amount of the modification
| ||
provided under subparagraph (G) of paragraph (2) of | ||
this subsection (b) which
is related to such dividends, | ||
and including, for taxable years ending on or after | ||
December 31, 2008, dividends received from a captive | ||
real estate investment trust; plus (ii) 100% of the | ||
amount by which dividends,
included in taxable income | ||
and received, including, for taxable years ending on
or | ||
after December 31, 1988, dividends received or deemed | ||
received or paid or
deemed paid under Sections 951 | ||
through 964 of the Internal Revenue Code and including, | ||
for taxable years ending on or after December 31, 2008, | ||
dividends received from a captive real estate | ||
investment trust, from
any such corporation specified | ||
in clause (i) that would but for the provisions
of | ||
Section 1504 (b) (3) of the Internal Revenue Code be |
treated as a member of
the affiliated group which | ||
includes the dividend recipient, exceed the amount
of | ||
the modification provided under subparagraph (G) of | ||
paragraph (2) of this
subsection (b) which is related | ||
to such dividends. This subparagraph (O) is exempt from | ||
the provisions of Section 250 of this Act; | ||
(P) An amount equal to any contribution made to a | ||
job training project
established pursuant to the Tax | ||
Increment Allocation Redevelopment Act; | ||
(Q) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code; | ||
(R) On and after July 20, 1999, in the case of an | ||
attorney-in-fact with respect to whom an
interinsurer | ||
or a reciprocal insurer has made the election under | ||
Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||
835, an amount equal to the excess, if
any, of the | ||
amounts paid or incurred by that interinsurer or | ||
reciprocal insurer
in the taxable year to the | ||
attorney-in-fact over the deduction allowed to that
| ||
interinsurer or reciprocal insurer with respect to the | ||
attorney-in-fact under
Section 835(b) of the Internal | ||
Revenue Code for the taxable year; the provisions of | ||
this subparagraph are exempt from the provisions of |
Section 250; | ||
(S) For taxable years ending on or after December | ||
31, 1997, in the
case of a Subchapter
S corporation, an | ||
amount equal to all amounts of income allocable to a
| ||
shareholder subject to the Personal Property Tax | ||
Replacement Income Tax imposed
by subsections (c) and | ||
(d) of Section 201 of this Act, including amounts
| ||
allocable to organizations exempt from federal income | ||
tax by reason of Section
501(a) of the Internal Revenue | ||
Code. This subparagraph (S) is exempt from
the | ||
provisions of Section 250; | ||
(T) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction; | ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 |
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0. | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (T) is exempt from the provisions of | ||
Section 250; | ||
(U) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (E-10), then an amount | ||
equal to that
addition modification. |
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition | ||
modification under subparagraph (E-10), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. | ||
This subparagraph (U) is exempt from the | ||
provisions of Section 250; | ||
(V) The amount of: (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification,
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification, and (iii) any insurance premium | ||
income (net of deductions allocable thereto) taken | ||
into account for the taxable year with respect to a | ||
transaction with a taxpayer that is required to make an | ||
addition modification with respect to such transaction | ||
under Section 203(a)(2)(D-19), Section | ||
203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||
203(d)(2)(D-9), but not to exceed the amount of that | ||
addition modification. This subparagraph (V) is exempt | ||
from the provisions of Section 250;
| ||
(W) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the |
addition modification required to be made for the same | ||
taxable year under Section 203(b)(2)(E-12) for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, to the same person. This subparagraph (W) | ||
is exempt from the provisions of Section 250;
| ||
(X) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(b)(2)(E-13) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same foreign | ||
person. This subparagraph (X) is exempt from the | ||
provisions of Section 250;
|
(Y) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(b)(2)(E-14), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense or | ||
loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a | ||
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer makes | ||
the election provided for by this subparagraph (Y), the | ||
insurer to which the premiums were paid must add back | ||
to income the amount subtracted by the taxpayer | ||
pursuant to this subparagraph (Y). This subparagraph | ||
(Y) is exempt from the provisions of Section 250; and | ||
(Z) The difference between the nondeductible | ||
controlled foreign corporation dividends under Section | ||
965(e)(3) of the Internal Revenue Code over the taxable | ||
income of the taxpayer, computed without regard to | ||
Section 965(e)(2)(A) of the Internal Revenue Code, and | ||
without regard to any net operating loss deduction. | ||
This subparagraph (Z) is exempt from the provisions of | ||
Section 250. | ||
(3) Special rule. For purposes of paragraph (2) (A), | ||
"gross income"
in the case of a life insurance company, for | ||
tax years ending on and after
December 31, 1994,
and prior |
to December 31, 2011, shall mean the gross investment | ||
income for the taxable year and, for tax years ending on or | ||
after December 31, 2011, shall mean all amounts included in | ||
life insurance gross income under Section 803(a)(3) of the | ||
Internal Revenue Code. | ||
(c) Trusts and estates. | ||
(1) In general. In the case of a trust or estate, base | ||
income means
an amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2). | ||
(2) Modifications. Subject to the provisions of | ||
paragraph (3), the
taxable income referred to in paragraph | ||
(1) shall be modified by adding
thereto the sum of the | ||
following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest or dividends during the | ||
taxable year to the extent excluded
from gross income | ||
in the computation of taxable income; | ||
(B) In the case of (i) an estate, $600; (ii) a | ||
trust which, under
its governing instrument, is | ||
required to distribute all of its income
currently, | ||
$300; and (iii) any other trust, $100, but in each such | ||
case,
only to the extent such amount was deducted in | ||
the computation of
taxable income; | ||
(C) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in |
the computation of taxable income
for the taxable year; | ||
(D) The amount of any net operating loss deduction | ||
taken in arriving at
taxable income, other than a net | ||
operating loss carried forward from a
taxable year | ||
ending prior to December 31, 1986; | ||
(E) For taxable years in which a net operating loss | ||
carryback or
carryforward from a taxable year ending | ||
prior to December 31, 1986 is an
element of taxable | ||
income under paragraph (1) of subsection (e) or | ||
subparagraph
(E) of paragraph (2) of subsection (e), | ||
the amount by which addition
modifications other than | ||
those provided by this subparagraph (E) exceeded
| ||
subtraction modifications in such taxable year, with | ||
the following limitations
applied in the order that | ||
they are listed: | ||
(i) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall be reduced by the amount of | ||
addition
modification under this subparagraph (E) | ||
which related to that net
operating loss and which | ||
was taken into account in calculating the base
| ||
income of an earlier taxable year, and | ||
(ii) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to |
December 31, 1986 shall not exceed the amount of | ||
such carryback or
carryforward; | ||
For taxable years in which there is a net operating | ||
loss carryback or
carryforward from more than one other | ||
taxable year ending prior to December
31, 1986, the | ||
addition modification provided in this subparagraph | ||
(E) shall
be the sum of the amounts computed | ||
independently under the preceding
provisions of this | ||
subparagraph (E) for each such taxable year; | ||
(F) For taxable years ending on or after January 1, | ||
1989, an amount
equal to the tax deducted pursuant to | ||
Section 164 of the Internal Revenue
Code if the trust | ||
or estate is claiming the same tax for purposes of the
| ||
Illinois foreign tax credit under Section 601 of this | ||
Act; | ||
(G) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from
gross income in the | ||
computation of taxable income; | ||
(G-5) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation costs | ||
that the trust or estate
deducted in computing adjusted | ||
gross income and for which the trust
or estate claims a | ||
credit under subsection (l) of Section 201; | ||
(G-10) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken |
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of the | ||
Internal Revenue Code; and | ||
(G-11) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (G-10), then | ||
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (R) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction | ||
modification under subparagraph (R), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(G-12) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the |
fact that the foreign person's business activity | ||
outside the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of the | ||
same person to whom the interest was paid, accrued, or | ||
incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary |
reporting, to a tax on or measured by net income | ||
with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the person, during the same taxable | ||
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and | ||
terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or | ||
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing |
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing | ||
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(G-13) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) |
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred, or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(c)(2)(G-12) of | ||
this Act. As used in this subparagraph, the term | ||
"intangible expenses and costs" includes: (1) | ||
expenses, losses, and costs for or related to the | ||
direct or indirect acquisition, use, maintenance or | ||
management, ownership, sale, exchange, or any other | ||
disposition of intangible property; (2) losses | ||
incurred, directly or indirectly, from factoring | ||
transactions or discounting transactions; (3) royalty, |
patent, technical, and copyright fees; (4) licensing | ||
fees; and (5) other similar expenses and costs. For | ||
purposes of this subparagraph, "intangible property" | ||
includes patents, patent applications, trade names, | ||
trademarks, service marks, copyrights, mask works, | ||
trade secrets, and similar types of intangible assets. | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who is | ||
subject in a foreign country or state, other than a | ||
state which requires mandatory unitary reporting, | ||
to a tax on or measured by net income with respect | ||
to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the person did not have as a |
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person if the | ||
taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an alternative | ||
method of apportionment under Section 304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(G-14) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to |
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock | ||
of the same person to whom the premiums and costs were | ||
directly or indirectly paid, incurred, or accrued. The | ||
preceding sentence does not apply to the extent that | ||
the same dividends caused a reduction to the addition | ||
modification required under Section 203(c)(2)(G-12) or | ||
Section 203(c)(2)(G-13) of this Act; | ||
(G-15) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, | ||
determined without regard to Section 218(c) of this | ||
Act; | ||
(G-16) For taxable years ending on or after |
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code | ||
for the taxable year; | ||
and by deducting from the total so obtained the sum of the | ||
following
amounts: | ||
(H) An amount equal to all amounts included in such | ||
total pursuant
to the provisions of Sections 402(a), | ||
402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||
Internal Revenue Code or included in such total as
| ||
distributions under the provisions of any retirement | ||
or disability plan for
employees of any governmental | ||
agency or unit, or retirement payments to
retired | ||
partners, which payments are excluded in computing net | ||
earnings
from self employment by Section 1402 of the | ||
Internal Revenue Code and
regulations adopted pursuant | ||
thereto; | ||
(I) The valuation limitation amount; | ||
(J) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year; | ||
(K) An amount equal to all amounts included in | ||
taxable income as
modified by subparagraphs (A), (B), | ||
(C), (D), (E), (F) and (G) which
are exempt from | ||
taxation by this State either by reason of its statutes | ||
or
Constitution
or by reason of the Constitution, | ||
treaties or statutes of the United States;
provided |
that, in the case of any statute of this State that | ||
exempts income
derived from bonds or other obligations | ||
from the tax imposed under this Act,
the amount | ||
exempted shall be the interest net of bond premium | ||
amortization; | ||
(L) With the exception of any amounts subtracted | ||
under subparagraph
(K),
an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||
and all amounts of expenses allocable
to interest and | ||
disallowed as deductions by Section 265(1) of the | ||
Internal
Revenue Code;
and (ii) for taxable years
| ||
ending on or after August 13, 1999, Sections
171(a)(2), | ||
265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||
Code, plus, (iii) for taxable years ending on or after | ||
December 31, 2011, Section 45G(e)(3) of the Internal | ||
Revenue Code and, for taxable years ending on or after | ||
December 31, 2008, any amount included in gross income | ||
under Section 87 of the Internal Revenue Code; the | ||
provisions of this
subparagraph are exempt from the | ||
provisions of Section 250; | ||
(M) An amount equal to those dividends included in | ||
such total
which were paid by a corporation which | ||
conducts business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act and
conducts substantially |
all of its operations in a River Edge Redevelopment | ||
Zone or zones. This subparagraph (M) is exempt from the | ||
provisions of Section 250; | ||
(N) An amount equal to any contribution made to a | ||
job training
project established pursuant to the Tax | ||
Increment Allocation
Redevelopment Act; | ||
(O) An amount equal to those dividends included in | ||
such total
that were paid by a corporation that | ||
conducts business operations in a
federally designated | ||
Foreign Trade Zone or Sub-Zone and that is designated
a | ||
High Impact Business located in Illinois; provided | ||
that dividends eligible
for the deduction provided in | ||
subparagraph (M) of paragraph (2) of this
subsection | ||
shall not be eligible for the deduction provided under | ||
this
subparagraph (O); | ||
(P) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code; | ||
(Q) For taxable year 1999 and thereafter, an amount | ||
equal to the
amount of any
(i) distributions, to the | ||
extent includible in gross income for
federal income | ||
tax purposes, made to the taxpayer because of
his or | ||
her status as a victim of
persecution for racial or | ||
religious reasons by Nazi Germany or any other Axis
|
regime or as an heir of the victim and (ii) items
of | ||
income, to the extent
includible in gross income for | ||
federal income tax purposes, attributable to,
derived | ||
from or in any way related to assets stolen from, | ||
hidden from, or
otherwise lost to a victim of
| ||
persecution for racial or religious reasons by Nazi
| ||
Germany or any other Axis regime
immediately prior to, | ||
during, and immediately after World War II, including,
| ||
but
not limited to, interest on the proceeds receivable | ||
as insurance
under policies issued to a victim of | ||
persecution for racial or religious
reasons by Nazi | ||
Germany or any other Axis regime by European insurance
| ||
companies
immediately prior to and during World War II;
| ||
provided, however, this subtraction from federal | ||
adjusted gross income does not
apply to assets acquired | ||
with such assets or with the proceeds from the sale of
| ||
such assets; provided, further, this paragraph shall | ||
only apply to a taxpayer
who was the first recipient of | ||
such assets after their recovery and who is a
victim of
| ||
persecution for racial or religious reasons
by Nazi | ||
Germany or any other Axis regime or as an heir of the | ||
victim. The
amount of and the eligibility for any | ||
public assistance, benefit, or
similar entitlement is | ||
not affected by the inclusion of items (i) and (ii) of
| ||
this paragraph in gross income for federal income tax | ||
purposes.
This paragraph is exempt from the provisions |
of Section 250; | ||
(R) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction; | ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus |
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0. | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (R) is exempt from the provisions of | ||
Section 250; | ||
(S) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (G-10), then an amount | ||
equal to that
addition modification. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition | ||
modification under subparagraph (G-10), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. |
This subparagraph (S) is exempt from the | ||
provisions of Section 250; | ||
(T) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification. This subparagraph (T) is exempt | ||
from the provisions of Section 250;
| ||
(U) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact the foreign person's business activity | ||
outside the United States is 80% or more of that |
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(c)(2)(G-12) for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, to the same person. This subparagraph (U) | ||
is exempt from the provisions of Section 250; | ||
(V) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily |
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(c)(2)(G-13) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same foreign | ||
person. This subparagraph (V) is exempt from the | ||
provisions of Section 250;
| ||
(W) in the case of an estate, an amount equal to | ||
all amounts included in such total pursuant to the | ||
provisions of Section 111 of the Internal Revenue Code | ||
as a recovery of items previously deducted by the | ||
decedent from adjusted gross income in the computation | ||
of taxable income. This subparagraph (W) is exempt from | ||
Section 250; | ||
(X) an amount equal to the refund included in such | ||
total of any tax deducted for federal income tax | ||
purposes, to the extent that deduction was added back | ||
under subparagraph (F). This subparagraph (X) is | ||
exempt from the provisions of Section 250; and | ||
(Y) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(c)(2)(G-14), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense or |
loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a | ||
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer makes | ||
the election provided for by this subparagraph (Y), the | ||
insurer to which the premiums were paid must add back | ||
to income the amount subtracted by the taxpayer | ||
pursuant to this subparagraph (Y). This subparagraph | ||
(Y) is exempt from the provisions of Section 250. | ||
(3) Limitation. The amount of any modification | ||
otherwise required
under this subsection shall, under | ||
regulations prescribed by the
Department, be adjusted by | ||
any amounts included therein which were
properly paid, | ||
credited, or required to be distributed, or permanently set
| ||
aside for charitable purposes pursuant to Internal Revenue | ||
Code Section
642(c) during the taxable year. | ||
(d) Partnerships. | ||
(1) In general. In the case of a partnership, base | ||
income means an
amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2). | ||
(2) Modifications. The taxable income referred to in | ||
paragraph (1)
shall be modified by adding thereto the sum | ||
of the following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer as
interest or dividends during the |
taxable year to the extent excluded from
gross income | ||
in the computation of taxable income; | ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income for | ||
the taxable year; | ||
(C) The amount of deductions allowed to the | ||
partnership pursuant to
Section 707 (c) of the Internal | ||
Revenue Code in calculating its taxable income; | ||
(D) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from
gross income in the | ||
computation of taxable income; | ||
(D-5) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of the | ||
Internal Revenue Code; | ||
(D-6) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of
property for which the | ||
taxpayer was required in any taxable year to make an
| ||
addition modification under subparagraph (D-5), then | ||
an amount equal to the
aggregate amount of the | ||
deductions taken in all taxable years
under | ||
subparagraph (O) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the |
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction | ||
modification under subparagraph (O), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(D-7) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact the foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of |
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of the | ||
same person to whom the interest was paid, accrued, or | ||
incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the person, during the same taxable | ||
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the |
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and | ||
terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or | ||
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing | ||
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority |
under Section 404 of this Act; and
| ||
(D-8) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) |
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(d)(2)(D-7) of | ||
this Act. As used in this subparagraph, the term | ||
"intangible expenses and costs" includes (1) expenses, | ||
losses, and costs for, or related to, the direct or | ||
indirect acquisition, use, maintenance or management, | ||
ownership, sale, exchange, or any other disposition of | ||
intangible property; (2) losses incurred, directly or | ||
indirectly, from factoring transactions or discounting | ||
transactions; (3) royalty, patent, technical, and | ||
copyright fees; (4) licensing fees; and (5) other | ||
similar expenses and costs. For purposes of this | ||
subparagraph, "intangible property" includes patents, | ||
patent applications, trade names, trademarks, service | ||
marks, copyrights, mask works, trade secrets, and | ||
similar types of intangible assets; | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who is | ||
subject in a foreign country or state, other than a | ||
state which requires mandatory unitary reporting, |
to a tax on or measured by net income with respect | ||
to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the person did not have as a | ||
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person if the | ||
taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an alternative | ||
method of apportionment under Section 304(f);
|
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(D-9) For taxable years ending on or after December | ||
31, 2008, an amount equal to the amount of insurance | ||
premium expenses and costs otherwise allowed as a | ||
deduction in computing base income, and that were paid, | ||
accrued, or incurred, directly or indirectly, to a | ||
person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under |
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock | ||
of the same person to whom the premiums and costs were | ||
directly or indirectly paid, incurred, or accrued. The | ||
preceding sentence does not apply to the extent that | ||
the same dividends caused a reduction to the addition | ||
modification required under Section 203(d)(2)(D-7) or | ||
Section 203(d)(2)(D-8) of this Act; | ||
(D-10) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, | ||
determined without regard to Section 218(c) of this | ||
Act; | ||
(D-11) For taxable years ending on or after | ||
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code | ||
for the taxable year; | ||
and by deducting from the total so obtained the following | ||
amounts: | ||
(E) The valuation limitation amount; | ||
(F) An amount equal to the amount of any tax | ||
imposed by this Act which
was refunded to the taxpayer | ||
and included in such total for the taxable year; | ||
(G) An amount equal to all amounts included in | ||
taxable income as
modified by subparagraphs (A), (B), | ||
(C) and (D) which are exempt from
taxation by this |
State either by reason of its statutes or Constitution | ||
or
by reason of
the Constitution, treaties or statutes | ||
of the United States;
provided that, in the case of any | ||
statute of this State that exempts income
derived from | ||
bonds or other obligations from the tax imposed under | ||
this Act,
the amount exempted shall be the interest net | ||
of bond premium amortization; | ||
(H) Any income of the partnership which | ||
constitutes personal service
income as defined in | ||
Section 1348 (b) (1) of the Internal Revenue Code (as
| ||
in effect December 31, 1981) or a reasonable allowance | ||
for compensation
paid or accrued for services rendered | ||
by partners to the partnership,
whichever is greater; | ||
this subparagraph (H) is exempt from the provisions of | ||
Section 250; | ||
(I) An amount equal to all amounts of income | ||
distributable to an entity
subject to the Personal | ||
Property Tax Replacement Income Tax imposed by
| ||
subsections (c) and (d) of Section 201 of this Act | ||
including amounts
distributable to organizations | ||
exempt from federal income tax by reason of
Section | ||
501(a) of the Internal Revenue Code; this subparagraph | ||
(I) is exempt from the provisions of Section 250; | ||
(J) With the exception of any amounts subtracted | ||
under subparagraph
(G),
an amount equal to the sum of | ||
all amounts disallowed as deductions
by (i) Sections |
171(a) (2), and 265(2) of the Internal Revenue Code, | ||
and all amounts of expenses allocable to
interest and | ||
disallowed as deductions by Section 265(1) of the | ||
Internal
Revenue Code;
and (ii) for taxable years
| ||
ending on or after August 13, 1999, Sections
171(a)(2), | ||
265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||
Code, plus, (iii) for taxable years ending on or after | ||
December 31, 2011, Section 45G(e)(3) of the Internal | ||
Revenue Code and, for taxable years ending on or after | ||
December 31, 2008, any amount included in gross income | ||
under Section 87 of the Internal Revenue Code; the | ||
provisions of this
subparagraph are exempt from the | ||
provisions of Section 250; | ||
(K) An amount equal to those dividends included in | ||
such total which were
paid by a corporation which | ||
conducts business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act and
conducts substantially | ||
all of its operations
from a River Edge Redevelopment | ||
Zone or zones. This subparagraph (K) is exempt from the | ||
provisions of Section 250; | ||
(L) An amount equal to any contribution made to a | ||
job training project
established pursuant to the Real | ||
Property Tax Increment Allocation
Redevelopment Act; | ||
(M) An amount equal to those dividends included in | ||
such total
that were paid by a corporation that |
conducts business operations in a
federally designated | ||
Foreign Trade Zone or Sub-Zone and that is designated a
| ||
High Impact Business located in Illinois; provided | ||
that dividends eligible
for the deduction provided in | ||
subparagraph (K) of paragraph (2) of this
subsection | ||
shall not be eligible for the deduction provided under | ||
this
subparagraph (M); | ||
(N) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code; | ||
(O) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction; | ||
(2) for taxable years ending on or before |
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0. | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (O) is exempt from the provisions of | ||
Section 250; | ||
(P) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (D-5), then an amount |
equal to that
addition modification. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition | ||
modification under subparagraph (D-5), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. | ||
This subparagraph (P) is exempt from the | ||
provisions of Section 250; | ||
(Q) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section |
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification. This subparagraph (Q) is exempt | ||
from Section 250;
| ||
(R) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(d)(2)(D-7) for interest | ||
paid, accrued, or incurred, directly or indirectly, to | ||
the same person. This subparagraph (R) is exempt from | ||
Section 250; | ||
(S) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net |
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(d)(2)(D-8) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same person. | ||
This subparagraph (S) is exempt from Section 250; and
| ||
(T) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(d)(2)(D-9), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense or | ||
loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a |
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer makes | ||
the election provided for by this subparagraph (T), the | ||
insurer to which the premiums were paid must add back | ||
to income the amount subtracted by the taxpayer | ||
pursuant to this subparagraph (T). This subparagraph | ||
(T) is exempt from the provisions of Section 250. | ||
(e) Gross income; adjusted gross income; taxable income. | ||
(1) In general. Subject to the provisions of paragraph | ||
(2) and
subsection (b) (3), for purposes of this Section | ||
and Section 803(e), a
taxpayer's gross income, adjusted | ||
gross income, or taxable income for
the taxable year shall | ||
mean the amount of gross income, adjusted gross
income or | ||
taxable income properly reportable for federal income tax
| ||
purposes for the taxable year under the provisions of the | ||
Internal
Revenue Code. Taxable income may be less than | ||
zero. However, for taxable
years ending on or after | ||
December 31, 1986, net operating loss
carryforwards from | ||
taxable years ending prior to December 31, 1986, may not
| ||
exceed the sum of federal taxable income for the taxable | ||
year before net
operating loss deduction, plus the excess | ||
of addition modifications over
subtraction modifications | ||
for the taxable year. For taxable years ending
prior to | ||
December 31, 1986, taxable income may never be an amount in | ||
excess
of the net operating loss for the taxable year as |
defined in subsections
(c) and (d) of Section 172 of the | ||
Internal Revenue Code, provided that when
taxable income of | ||
a corporation (other than a Subchapter S corporation),
| ||
trust, or estate is less than zero and addition | ||
modifications, other than
those provided by subparagraph | ||
(E) of paragraph (2) of subsection (b) for
corporations or | ||
subparagraph (E) of paragraph (2) of subsection (c) for
| ||
trusts and estates, exceed subtraction modifications, an | ||
addition
modification must be made under those | ||
subparagraphs for any other taxable
year to which the | ||
taxable income less than zero (net operating loss) is
| ||
applied under Section 172 of the Internal Revenue Code or | ||
under
subparagraph (E) of paragraph (2) of this subsection | ||
(e) applied in
conjunction with Section 172 of the Internal | ||
Revenue Code. | ||
(2) Special rule. For purposes of paragraph (1) of this | ||
subsection,
the taxable income properly reportable for | ||
federal income tax purposes
shall mean: | ||
(A) Certain life insurance companies. In the case | ||
of a life
insurance company subject to the tax imposed | ||
by Section 801 of the
Internal Revenue Code, life | ||
insurance company taxable income, plus the
amount of | ||
distribution from pre-1984 policyholder surplus | ||
accounts as
calculated under Section 815a of the | ||
Internal Revenue Code; | ||
(B) Certain other insurance companies. In the case |
of mutual
insurance companies subject to the tax | ||
imposed by Section 831 of the
Internal Revenue Code, | ||
insurance company taxable income; | ||
(C) Regulated investment companies. In the case of | ||
a regulated
investment company subject to the tax | ||
imposed by Section 852 of the
Internal Revenue Code, | ||
investment company taxable income; | ||
(D) Real estate investment trusts. In the case of a | ||
real estate
investment trust subject to the tax imposed | ||
by Section 857 of the
Internal Revenue Code, real | ||
estate investment trust taxable income; | ||
(E) Consolidated corporations. In the case of a | ||
corporation which
is a member of an affiliated group of | ||
corporations filing a consolidated
income tax return | ||
for the taxable year for federal income tax purposes,
| ||
taxable income determined as if such corporation had | ||
filed a separate
return for federal income tax purposes | ||
for the taxable year and each
preceding taxable year | ||
for which it was a member of an affiliated group.
For | ||
purposes of this subparagraph, the taxpayer's separate | ||
taxable
income shall be determined as if the election | ||
provided by Section
243(b) (2) of the Internal Revenue | ||
Code had been in effect for all such years; | ||
(F) Cooperatives. In the case of a cooperative | ||
corporation or
association, the taxable income of such | ||
organization determined in
accordance with the |
provisions of Section 1381 through 1388 of the
Internal | ||
Revenue Code, but without regard to the prohibition | ||
against offsetting losses from patronage activities | ||
against income from nonpatronage activities; except | ||
that a cooperative corporation or association may make | ||
an election to follow its federal income tax treatment | ||
of patronage losses and nonpatronage losses. In the | ||
event such election is made, such losses shall be | ||
computed and carried over in a manner consistent with | ||
subsection (a) of Section 207 of this Act and | ||
apportioned by the apportionment factor reported by | ||
the cooperative on its Illinois income tax return filed | ||
for the taxable year in which the losses are incurred. | ||
The election shall be effective for all taxable years | ||
with original returns due on or after the date of the | ||
election. In addition, the cooperative may file an | ||
amended return or returns, as allowed under this Act, | ||
to provide that the election shall be effective for | ||
losses incurred or carried forward for taxable years | ||
occurring prior to the date of the election. Once made, | ||
the election may only be revoked upon approval of the | ||
Director. The Department shall adopt rules setting | ||
forth requirements for documenting the elections and | ||
any resulting Illinois net loss and the standards to be | ||
used by the Director in evaluating requests to revoke | ||
elections. Public Act 96-932 is declaratory of |
existing law; | ||
(G) Subchapter S corporations. In the case of: (i) | ||
a Subchapter S
corporation for which there is in effect | ||
an election for the taxable year
under Section 1362 of | ||
the Internal Revenue Code, the taxable income of such
| ||
corporation determined in accordance with Section | ||
1363(b) of the Internal
Revenue Code, except that | ||
taxable income shall take into
account those items | ||
which are required by Section 1363(b)(1) of the
| ||
Internal Revenue Code to be separately stated; and (ii) | ||
a Subchapter
S corporation for which there is in effect | ||
a federal election to opt out of
the provisions of the | ||
Subchapter S Revision Act of 1982 and have applied
| ||
instead the prior federal Subchapter S rules as in | ||
effect on July 1, 1982,
the taxable income of such | ||
corporation determined in accordance with the
federal | ||
Subchapter S rules as in effect on July 1, 1982; and | ||
(H) Partnerships. In the case of a partnership, | ||
taxable income
determined in accordance with Section | ||
703 of the Internal Revenue Code,
except that taxable | ||
income shall take into account those items which are
| ||
required by Section 703(a)(1) to be separately stated | ||
but which would be
taken into account by an individual | ||
in calculating his taxable income. | ||
(3) Recapture of business expenses on disposition of | ||
asset or business. Notwithstanding any other law to the |
contrary, if in prior years income from an asset or | ||
business has been classified as business income and in a | ||
later year is demonstrated to be non-business income, then | ||
all expenses, without limitation, deducted in such later | ||
year and in the 2 immediately preceding taxable years | ||
related to that asset or business that generated the | ||
non-business income shall be added back and recaptured as | ||
business income in the year of the disposition of the asset | ||
or business. Such amount shall be apportioned to Illinois | ||
using the greater of the apportionment fraction computed | ||
for the business under Section 304 of this Act for the | ||
taxable year or the average of the apportionment fractions | ||
computed for the business under Section 304 of this Act for | ||
the taxable year and for the 2 immediately preceding | ||
taxable years.
| ||
(f) Valuation limitation amount. | ||
(1) In general. The valuation limitation amount | ||
referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||
(d)(2) (E) is an amount equal to: | ||
(A) The sum of the pre-August 1, 1969 appreciation | ||
amounts (to the
extent consisting of gain reportable | ||
under the provisions of Section
1245 or 1250 of the | ||
Internal Revenue Code) for all property in respect
of | ||
which such gain was reported for the taxable year; plus | ||
(B) The lesser of (i) the sum of the pre-August 1, |
1969 appreciation
amounts (to the extent consisting of | ||
capital gain) for all property in
respect of which such | ||
gain was reported for federal income tax purposes
for | ||
the taxable year, or (ii) the net capital gain for the | ||
taxable year,
reduced in either case by any amount of | ||
such gain included in the amount
determined under | ||
subsection (a) (2) (F) or (c) (2) (H). | ||
(2) Pre-August 1, 1969 appreciation amount. | ||
(A) If the fair market value of property referred | ||
to in paragraph
(1) was readily ascertainable on August | ||
1, 1969, the pre-August 1, 1969
appreciation amount for | ||
such property is the lesser of (i) the excess of
such | ||
fair market value over the taxpayer's basis (for | ||
determining gain)
for such property on that date | ||
(determined under the Internal Revenue
Code as in | ||
effect on that date), or (ii) the total gain realized | ||
and
reportable for federal income tax purposes in | ||
respect of the sale,
exchange or other disposition of | ||
such property. | ||
(B) If the fair market value of property referred | ||
to in paragraph
(1) was not readily ascertainable on | ||
August 1, 1969, the pre-August 1,
1969 appreciation | ||
amount for such property is that amount which bears
the | ||
same ratio to the total gain reported in respect of the | ||
property for
federal income tax purposes for the | ||
taxable year, as the number of full
calendar months in |
that part of the taxpayer's holding period for the
| ||
property ending July 31, 1969 bears to the number of | ||
full calendar
months in the taxpayer's entire holding | ||
period for the
property. | ||
(C) The Department shall prescribe such | ||
regulations as may be
necessary to carry out the | ||
purposes of this paragraph. | ||
(g) Double deductions. Unless specifically provided | ||
otherwise, nothing
in this Section shall permit the same item | ||
to be deducted more than once. | ||
(h) Legislative intention. Except as expressly provided by | ||
this
Section there shall be no modifications or limitations on | ||
the amounts
of income, gain, loss or deduction taken into | ||
account in determining
gross income, adjusted gross income or | ||
taxable income for federal income
tax purposes for the taxable | ||
year, or in the amount of such items
entering into the | ||
computation of base income and net income under this
Act for | ||
such taxable year, whether in respect of property values as of
| ||
August 1, 1969 or otherwise. | ||
(Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198, | ||
eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09; | ||
96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff. | ||
6-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507, | ||
eff. 8-23-11; 97-905, eff. 8-7-12.)
|
(35 ILCS 5/204) (from Ch. 120, par. 2-204)
| ||
Sec. 204. Standard Exemption.
| ||
(a) Allowance of exemption. In computing net income under | ||
this Act, there
shall be allowed as an exemption the sum of the | ||
amounts determined under
subsections (b), (c) and (d), | ||
multiplied by a fraction the numerator of which
is the amount | ||
of the taxpayer's base income allocable to this State for the
| ||
taxable year and the denominator of which is the taxpayer's | ||
total base income
for the taxable year.
| ||
(b) Basic amount. For the purpose of subsection (a) of this | ||
Section,
except as provided by subsection (a) of Section 205 | ||
and in this
subsection, each taxpayer shall be allowed a basic | ||
amount of $1000, except
that for corporations the basic amount | ||
shall be zero for tax years ending on
or
after December 31, | ||
2003, and for individuals the basic amount shall be:
| ||
(1) for taxable years ending on or after December 31, | ||
1998 and prior to
December 31, 1999, $1,300;
| ||
(2) for taxable years ending on or after December 31, | ||
1999 and prior to
December 31, 2000, $1,650;
| ||
(3) for taxable years ending on or after December 31, | ||
2000 and prior to December 31, 2012, $2,000;
| ||
(4) for taxable years ending on or after December 31, | ||
2012 and prior to December 31, 2013, $2,050; | ||
(5) for taxable years ending on or after December 31, | ||
2013, $2,050 plus the cost-of-living adjustment under |
subsection (d-5). | ||
For taxable years ending on or after December 31, 1992, a | ||
taxpayer whose
Illinois base income exceeds the basic amount | ||
and who is claimed as a dependent
on another person's tax | ||
return under the Internal Revenue Code shall
not be allowed any | ||
basic amount under this subsection.
| ||
(c) Additional amount for individuals. In the case of an | ||
individual
taxpayer, there shall be allowed for the purpose of | ||
subsection (a), in
addition to the basic amount provided by | ||
subsection (b), an additional
exemption equal to the basic | ||
amount for each
exemption in excess of one
allowable to such | ||
individual taxpayer for the taxable year under Section
151 of | ||
the Internal Revenue Code.
| ||
(d) Additional exemptions for an individual taxpayer and | ||
his or her
spouse. In the case of an individual taxpayer and | ||
his or her spouse, he or
she shall each be allowed additional | ||
exemptions as follows:
| ||
(1) Additional exemption for taxpayer or spouse 65 | ||
years of age or older.
| ||
(A) For taxpayer. An additional exemption of | ||
$1,000 for the taxpayer if
he or she has attained the | ||
age of 65 before the end of the taxable year.
| ||
(B) For spouse when a joint return is not filed. An | ||
additional
exemption of $1,000 for the spouse of the | ||
taxpayer if a joint return is not
made by the taxpayer | ||
and his spouse, and if the spouse has attained the age
|
of 65 before the end of such taxable year, and, for the | ||
calendar year in
which the taxable year of the taxpayer | ||
begins, has no gross income and is
not the dependent of | ||
another taxpayer.
| ||
(2) Additional exemption for blindness of taxpayer or | ||
spouse.
| ||
(A) For taxpayer. An additional exemption of | ||
$1,000 for the taxpayer if
he or she is blind at the | ||
end of the taxable year.
| ||
(B) For spouse when a joint return is not filed. An | ||
additional
exemption of $1,000 for the spouse of the | ||
taxpayer if a separate return is made
by the taxpayer, | ||
and if the spouse is blind and, for the calendar year | ||
in which
the taxable year of the taxpayer begins, has | ||
no gross income and is not the
dependent of another | ||
taxpayer. For purposes of this paragraph, the
| ||
determination of whether the spouse is blind shall be | ||
made as of the end of the
taxable year of the taxpayer; | ||
except that if the spouse dies during such
taxable year | ||
such determination shall be made as of the time of such | ||
death.
| ||
(C) Blindness defined. For purposes of this | ||
subsection, an individual
is blind only if his or her | ||
central visual acuity does not exceed 20/200 in
the | ||
better eye with correcting lenses, or if his or her | ||
visual acuity is
greater than 20/200 but is accompanied |
by a limitation in the fields of
vision such that the | ||
widest diameter of the visual fields subtends an angle
| ||
no greater than 20 degrees.
| ||
(d-5) Cost-of-living adjustment. For purposes of item (5) | ||
of subsection (b), the cost-of-living adjustment for any | ||
calendar year and for taxable years ending prior to the end of | ||
the subsequent calendar year is equal to $2,050 times the | ||
percentage (if any) by which: | ||
(1) the Consumer Price Index for the preceding calendar | ||
year, exceeds | ||
(2) the Consumer Price Index for the calendar year | ||
2011. | ||
The Consumer Price Index for any calendar year is the | ||
average of the Consumer Price Index as of the close of the | ||
12-month period ending on August 31 of that calendar year. | ||
The term "Consumer Price Index" means the last Consumer | ||
Price Index for All Urban Consumers published by the United | ||
States Department of Labor or any successor agency. | ||
If any cost-of-living adjustment is not a multiple of $25, | ||
that adjustment shall be rounded to the next lowest multiple of | ||
$25. | ||
(e) Cross reference. See Article 3 for the manner of | ||
determining
base income allocable to this State.
| ||
(f) Application of Section 250. Section 250 does not apply | ||
to the
amendments to this Section made by Public Act 90-613.
| ||
(g) Notwithstanding any other provision of law, for taxable |
years beginning on or after January 1, 2017, no taxpayer may | ||
claim an exemption under this Section if the taxpayer's | ||
adjusted gross income for the taxable year exceeds (i) | ||
$500,000, in the case of spouses filing a joint federal tax | ||
return or (ii) $250,000, in the case of all other taxpayers. | ||
(Source: P.A. 97-507, eff. 8-23-11; 97-652, eff. 6-1-12 .)
| ||
(35 ILCS 5/208) (from Ch. 120, par. 2-208)
| ||
Sec. 208. Tax credit for residential real property taxes. | ||
Beginning with tax years ending on or after December 31, 1991,
| ||
every individual taxpayer shall be entitled to a tax credit | ||
equal
to 5% of real property taxes paid by such taxpayer during | ||
the
taxable year on the principal residence of the taxpayer. In | ||
the
case of multi-unit or multi-use structures and farm | ||
dwellings,
the taxes on the taxpayer's principal residence | ||
shall be that
portion of the total taxes which is attributable | ||
to such principal
residence. Notwithstanding any other | ||
provision of law, for taxable years beginning on or after | ||
January 1, 2017, no taxpayer may claim a credit under this | ||
Section if the taxpayer's adjusted gross income for the taxable | ||
year exceeds (i) $500,000, in the case of spouses filing a | ||
joint federal tax return, or (ii) $250,000, in the case of all | ||
other taxpayers.
| ||
(Source: P.A. 87-17.)
| ||
(35 ILCS 5/212)
|
Sec. 212. Earned income tax credit.
| ||
(a) With respect to the federal earned income tax credit | ||
allowed for the
taxable year under Section 32 of the federal | ||
Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||
is entitled to a credit against the tax imposed by
subsections | ||
(a) and (b) of Section 201 in an amount equal to
(i) 5% of the | ||
federal tax credit for each taxable year beginning on or after
| ||
January 1,
2000 and ending prior to December 31, 2012, (ii) | ||
7.5% of the federal tax credit for each taxable year beginning | ||
on or after January 1, 2012 and ending prior to December 31, | ||
2013, and (iii) 10% of the federal tax credit for each taxable | ||
year beginning on or after January 1, 2013 and beginning prior | ||
to January 1, 2017, (iv) 14% of the federal tax credit for each | ||
taxable year beginning on or after January 1, 2017 and | ||
beginning prior to January 1, 2018, and (v) 18% of the federal | ||
tax credit for each taxable year beginning on or after January | ||
1, 2018 .
| ||
For a non-resident or part-year resident, the amount of the | ||
credit under this
Section shall be in proportion to the amount | ||
of income attributable to this
State.
| ||
(b) For taxable years beginning before January 1, 2003, in | ||
no event
shall a credit under this Section reduce the | ||
taxpayer's
liability to less than zero. For each taxable year | ||
beginning on or after
January 1, 2003, if the amount of the | ||
credit exceeds the income tax liability
for the applicable tax | ||
year, then the excess credit shall be refunded to the
taxpayer. |
The amount of a refund shall not be included in the taxpayer's
| ||
income or resources for the purposes of determining eligibility | ||
or benefit
level in any means-tested benefit program | ||
administered by a governmental entity
unless required by | ||
federal law.
| ||
(c) This Section is exempt from the provisions of Section | ||
250.
| ||
(Source: P.A. 97-652, eff. 6-1-12 .)
| ||
(35 ILCS 5/225 new) | ||
Sec. 225. Credit for instructional materials and supplies. | ||
For taxable years beginning on and after January 1, 2017, a | ||
taxpayer shall be allowed a credit in the amount paid by the | ||
taxpayer during the taxable year for instructional materials | ||
and supplies with respect to classroom based instruction in a | ||
qualified school, or $250, whichever is less, provided that the | ||
taxpayer is a teacher, instructor, counselor, principal, or | ||
aide in a qualified school for at least 900 hours during a | ||
school year. | ||
The credit may not be carried back and may not reduce the | ||
taxpayer's liability to less than zero. If the amount of the | ||
credit exceeds the tax liability for the year, the excess may | ||
be carried forward and applied to the tax liability of the 5 | ||
taxable years following the excess credit year. The tax credit | ||
shall be applied to the earliest year for which there is a tax | ||
liability. If there are credits for more than one year that are |
available to offset a liability, the earlier credit shall be | ||
applied first. | ||
For purposes of this Section, the term "materials and | ||
supplies" means amounts paid for instructional materials or | ||
supplies that are designated for classroom use in any qualified | ||
school. For purposes of this Section, the term "qualified | ||
school" means a public school or non-public school located in | ||
Illinois. | ||
This Section is exempt from the provisions of Section 250. | ||
(35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||
Sec. 901. Collection authority. | ||
(a) In general. | ||
The Department shall collect the taxes imposed by this Act. | ||
The Department
shall collect certified past due child support | ||
amounts under Section 2505-650
of the Department of Revenue Law | ||
(20 ILCS 2505/2505-650). Except as
provided in subsections (c), | ||
(e), (f), (g), and (h) of this Section, money collected
| ||
pursuant to subsections (a) and (b) of Section 201 of this Act | ||
shall be
paid into the General Revenue Fund in the State | ||
treasury; money
collected pursuant to subsections (c) and (d) | ||
of Section 201 of this Act
shall be paid into the Personal | ||
Property Tax Replacement Fund, a special
fund in the State | ||
Treasury; and money collected under Section 2505-650 of the
| ||
Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
| ||
into the
Child Support Enforcement Trust Fund, a special fund |
outside the State
Treasury, or
to the State
Disbursement Unit | ||
established under Section 10-26 of the Illinois Public Aid
| ||
Code, as directed by the Department of Healthcare and Family | ||
Services. | ||
(b) Local Government Distributive Fund. | ||
Beginning August 1, 1969, and continuing through June 30, | ||
1994, the Treasurer
shall transfer each month from the General | ||
Revenue Fund to a special fund in
the State treasury, to be | ||
known as the "Local Government Distributive Fund", an
amount | ||
equal to 1/12 of the net revenue realized from the tax imposed | ||
by
subsections (a) and (b) of Section 201 of this Act during | ||
the preceding month.
Beginning July 1, 1994, and continuing | ||
through June 30, 1995, the Treasurer
shall transfer each month | ||
from the General Revenue Fund to the Local Government
| ||
Distributive Fund an amount equal to 1/11 of the net revenue | ||
realized from the
tax imposed by subsections (a) and (b) of | ||
Section 201 of this Act during the
preceding month. Beginning | ||
July 1, 1995 and continuing through January 31, 2011, the | ||
Treasurer shall transfer each
month from the General Revenue | ||
Fund to the Local Government Distributive Fund
an amount equal | ||
to the net of (i) 1/10 of the net revenue realized from the
tax | ||
imposed by
subsections (a) and (b) of Section 201 of the | ||
Illinois Income Tax Act during
the preceding month
(ii) minus, | ||
beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | ||
and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | ||
and continuing through January 31, 2015, the Treasurer shall |
transfer each month from the General Revenue Fund to the Local | ||
Government Distributive Fund an amount equal to the sum of (i) | ||
6% (10% of the ratio of the 3% individual income tax rate prior | ||
to 2011 to the 5% individual income tax rate after 2010) of the | ||
net revenue realized from the tax imposed by subsections (a) | ||
and (b) of Section 201 of this Act upon individuals, trusts, | ||
and estates during the preceding month and (ii) 6.86% (10% of | ||
the ratio of the 4.8% corporate income tax rate prior to 2011 | ||
to the 7% corporate income tax rate after 2010) of the net | ||
revenue realized from the tax imposed by subsections (a) and | ||
(b) of Section 201 of this Act upon corporations during the | ||
preceding month. Beginning February 1, 2015 and continuing | ||
through July 31, 2017 January 31, 2025 , the Treasurer shall | ||
transfer each month from the General Revenue Fund to the Local | ||
Government Distributive Fund an amount equal to the sum of (i) | ||
8% (10% of the ratio of the 3% individual income tax rate prior | ||
to 2011 to the 3.75% individual income tax rate after 2014) of | ||
the net revenue realized from the tax imposed by subsections | ||
(a) and (b) of Section 201 of this Act upon individuals, | ||
trusts, and estates during the preceding month and (ii) 9.14% | ||
(10% of the ratio of the 4.8% corporate income tax rate prior | ||
to 2011 to the 5.25% corporate income tax rate after 2014) of | ||
the net revenue realized from the tax imposed by subsections | ||
(a) and (b) of Section 201 of this Act upon corporations during | ||
the preceding month. Beginning August 1, 2017 February 1, 2025 , | ||
the Treasurer shall transfer each month from the General |
Revenue Fund to the Local Government Distributive Fund an | ||
amount equal to the sum of (i) 6.06% 9.23% (10% of the ratio of | ||
the 3% individual income tax rate prior to 2011 to the 4.95% | ||
3.25% individual income tax rate after July 1, 2017 2024 ) of | ||
the net revenue realized from the tax imposed by subsections | ||
(a) and (b) of Section 201 of this Act upon individuals, | ||
trusts, and estates during the preceding month and (ii) 6.85% | ||
(10% of the ratio of the 4.8% corporate income tax rate prior | ||
to 2011 to the 7% corporate income tax rate after July 1, 2017) | ||
10% of the net revenue realized from the tax imposed by | ||
subsections (a) and (b) of Section 201 of this Act upon | ||
corporations during the preceding month. Net revenue realized | ||
for a month shall be defined as the
revenue from the tax | ||
imposed by subsections (a) and (b) of Section 201 of this
Act | ||
which is deposited in the General Revenue Fund, the Education | ||
Assistance
Fund, the Income Tax Surcharge Local Government | ||
Distributive Fund, the Fund for the Advancement of Education, | ||
and the Commitment to Human Services Fund during the
month | ||
minus the amount paid out of the General Revenue Fund in State | ||
warrants
during that same month as refunds to taxpayers for | ||
overpayment of liability
under the tax imposed by subsections | ||
(a) and (b) of Section 201 of this Act. | ||
Beginning on August 26, 2014 (the effective date of Public | ||
Act 98-1052), the Comptroller shall perform the transfers | ||
required by this subsection (b) no later than 60 days after he | ||
or she receives the certification from the Treasurer as |
provided in Section 1 of the State Revenue Sharing Act. | ||
(c) Deposits Into Income Tax Refund Fund. | ||
(1) Beginning on January 1, 1989 and thereafter, the | ||
Department shall
deposit a percentage of the amounts | ||
collected pursuant to subsections (a)
and (b)(1), (2), and | ||
(3), of Section 201 of this Act into a fund in the State
| ||
treasury known as the Income Tax Refund Fund. The | ||
Department shall deposit 6%
of such amounts during the | ||
period beginning January 1, 1989 and ending on June
30, | ||
1989. Beginning with State fiscal year 1990 and for each | ||
fiscal year
thereafter, the percentage deposited into the | ||
Income Tax Refund Fund during a
fiscal year shall be the | ||
Annual Percentage. For fiscal years 1999 through
2001, the | ||
Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||
Annual Percentage shall be 8%.
For fiscal year 2004, the | ||
Annual Percentage shall be 11.7%. Upon the effective date | ||
of this amendatory Act of the 93rd General Assembly, the | ||
Annual Percentage shall be 10% for fiscal year 2005. For | ||
fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||
fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||
fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||
fiscal year 2009, the Annual Percentage shall be 9.75%. For | ||
fiscal year 2010, the Annual Percentage shall be 9.75%. For | ||
fiscal year 2011, the Annual Percentage shall be 8.75%. For | ||
fiscal year 2012, the Annual Percentage shall be 8.75%. For | ||
fiscal year 2013, the Annual Percentage shall be 9.75%. For |
fiscal year 2014, the Annual Percentage shall be 9.5%. For | ||
fiscal year 2015, the Annual Percentage shall be 10%. For | ||
all other
fiscal years, the
Annual Percentage shall be | ||
calculated as a fraction, the numerator of which
shall be | ||
the amount of refunds approved for payment by the | ||
Department during
the preceding fiscal year as a result of | ||
overpayment of tax liability under
subsections (a) and | ||
(b)(1), (2), and (3) of Section 201 of this Act plus the
| ||
amount of such refunds remaining approved but unpaid at the | ||
end of the
preceding fiscal year, minus the amounts | ||
transferred into the Income Tax
Refund Fund from the | ||
Tobacco Settlement Recovery Fund, and
the denominator of | ||
which shall be the amounts which will be collected pursuant
| ||
to subsections (a) and (b)(1), (2), and (3) of Section 201 | ||
of this Act during
the preceding fiscal year; except that | ||
in State fiscal year 2002, the Annual
Percentage shall in | ||
no event exceed 7.6%. The Director of Revenue shall
certify | ||
the Annual Percentage to the Comptroller on the last | ||
business day of
the fiscal year immediately preceding the | ||
fiscal year for which it is to be
effective. | ||
(2) Beginning on January 1, 1989 and thereafter, the | ||
Department shall
deposit a percentage of the amounts | ||
collected pursuant to subsections (a)
and (b)(6), (7), and | ||
(8), (c) and (d) of Section 201
of this Act into a fund in | ||
the State treasury known as the Income Tax
Refund Fund. The | ||
Department shall deposit 18% of such amounts during the
|
period beginning January 1, 1989 and ending on June 30, | ||
1989. Beginning
with State fiscal year 1990 and for each | ||
fiscal year thereafter, the
percentage deposited into the | ||
Income Tax Refund Fund during a fiscal year
shall be the | ||
Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||
the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||
the Annual Percentage shall be 27%. For fiscal year
2004, | ||
the Annual Percentage shall be 32%.
Upon the effective date | ||
of this amendatory Act of the 93rd General Assembly, the | ||
Annual Percentage shall be 24% for fiscal year 2005.
For | ||
fiscal year 2006, the Annual Percentage shall be 20%. For | ||
fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||
fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||
fiscal year 2009, the Annual Percentage shall be 17.5%. For | ||
fiscal year 2010, the Annual Percentage shall be 17.5%. For | ||
fiscal year 2011, the Annual Percentage shall be 17.5%. For | ||
fiscal year 2012, the Annual Percentage shall be 17.5%. For | ||
fiscal year 2013, the Annual Percentage shall be 14%. For | ||
fiscal year 2014, the Annual Percentage shall be 13.4%. For | ||
fiscal year 2015, the Annual Percentage shall be 14%. For | ||
all other fiscal years, the Annual
Percentage shall be | ||
calculated
as a fraction, the numerator of which shall be | ||
the amount of refunds
approved for payment by the | ||
Department during the preceding fiscal year as
a result of | ||
overpayment of tax liability under subsections (a) and | ||
(b)(6),
(7), and (8), (c) and (d) of Section 201 of this |
Act plus the
amount of such refunds remaining approved but | ||
unpaid at the end of the
preceding fiscal year, and the | ||
denominator of
which shall be the amounts which will be | ||
collected pursuant to subsections (a)
and (b)(6), (7), and | ||
(8), (c) and (d) of Section 201 of this Act during the
| ||
preceding fiscal year; except that in State fiscal year | ||
2002, the Annual
Percentage shall in no event exceed 23%. | ||
The Director of Revenue shall
certify the Annual Percentage | ||
to the Comptroller on the last business day of
the fiscal | ||
year immediately preceding the fiscal year for which it is | ||
to be
effective. | ||
(3) The Comptroller shall order transferred and the | ||
Treasurer shall
transfer from the Tobacco Settlement | ||
Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||
in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||
(iii) $35,000,000 in January, 2003. | ||
(d) Expenditures from Income Tax Refund Fund. | ||
(1) Beginning January 1, 1989, money in the Income Tax | ||
Refund Fund
shall be expended exclusively for the purpose | ||
of paying refunds resulting
from overpayment of tax | ||
liability under Section 201 of this Act, for paying
rebates | ||
under Section 208.1 in the event that the amounts in the | ||
Homeowners'
Tax Relief Fund are insufficient for that | ||
purpose,
and for
making transfers pursuant to this | ||
subsection (d). | ||
(2) The Director shall order payment of refunds |
resulting from
overpayment of tax liability under Section | ||
201 of this Act from the
Income Tax Refund Fund only to the | ||
extent that amounts collected pursuant
to Section 201 of | ||
this Act and transfers pursuant to this subsection (d)
and | ||
item (3) of subsection (c) have been deposited and retained | ||
in the
Fund. | ||
(3) As soon as possible after the end of each fiscal | ||
year, the Director
shall
order transferred and the State | ||
Treasurer and State Comptroller shall
transfer from the | ||
Income Tax Refund Fund to the Personal Property Tax
| ||
Replacement Fund an amount, certified by the Director to | ||
the Comptroller,
equal to the excess of the amount | ||
collected pursuant to subsections (c) and
(d) of Section | ||
201 of this Act deposited into the Income Tax Refund Fund
| ||
during the fiscal year over the amount of refunds resulting | ||
from
overpayment of tax liability under subsections (c) and | ||
(d) of Section 201
of this Act paid from the Income Tax | ||
Refund Fund during the fiscal year. | ||
(4) As soon as possible after the end of each fiscal | ||
year, the Director shall
order transferred and the State | ||
Treasurer and State Comptroller shall
transfer from the | ||
Personal Property Tax Replacement Fund to the Income Tax
| ||
Refund Fund an amount, certified by the Director to the | ||
Comptroller, equal
to the excess of the amount of refunds | ||
resulting from overpayment of tax
liability under | ||
subsections (c) and (d) of Section 201 of this Act paid
|
from the Income Tax Refund Fund during the fiscal year over | ||
the amount
collected pursuant to subsections (c) and (d) of | ||
Section 201 of this Act
deposited into the Income Tax | ||
Refund Fund during the fiscal year. | ||
(4.5) As soon as possible after the end of fiscal year | ||
1999 and of each
fiscal year
thereafter, the Director shall | ||
order transferred and the State Treasurer and
State | ||
Comptroller shall transfer from the Income Tax Refund Fund | ||
to the General
Revenue Fund any surplus remaining in the | ||
Income Tax Refund Fund as of the end
of such fiscal year; | ||
excluding for fiscal years 2000, 2001, and 2002
amounts | ||
attributable to transfers under item (3) of subsection (c) | ||
less refunds
resulting from the earned income tax credit. | ||
(5) This Act shall constitute an irrevocable and | ||
continuing
appropriation from the Income Tax Refund Fund | ||
for the purpose of paying
refunds upon the order of the | ||
Director in accordance with the provisions of
this Section. | ||
(e) Deposits into the Education Assistance Fund and the | ||
Income Tax
Surcharge Local Government Distributive Fund. | ||
On July 1, 1991, and thereafter, of the amounts collected | ||
pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||
minus deposits into the
Income Tax Refund Fund, the Department | ||
shall deposit 7.3% into the
Education Assistance Fund in the | ||
State Treasury. Beginning July 1, 1991,
and continuing through | ||
January 31, 1993, of the amounts collected pursuant to
| ||
subsections (a) and (b) of Section 201 of the Illinois Income |
Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||
Department shall deposit 3.0%
into the Income Tax Surcharge | ||
Local Government Distributive Fund in the State
Treasury. | ||
Beginning February 1, 1993 and continuing through June 30, | ||
1993, of
the amounts collected pursuant to subsections (a) and | ||
(b) of Section 201 of the
Illinois Income Tax Act, minus | ||
deposits into the Income Tax Refund Fund, the
Department shall | ||
deposit 4.4% into the Income Tax Surcharge Local Government
| ||
Distributive Fund in the State Treasury. Beginning July 1, | ||
1993, and
continuing through June 30, 1994, of the amounts | ||
collected under subsections
(a) and (b) of Section 201 of this | ||
Act, minus deposits into the Income Tax
Refund Fund, the | ||
Department shall deposit 1.475% into the Income Tax Surcharge
| ||
Local Government Distributive Fund in the State Treasury. | ||
(f) Deposits into the Fund for the Advancement of | ||
Education. Beginning February 1, 2015, the Department shall | ||
deposit the following portions of the revenue realized from the | ||
tax imposed upon individuals, trusts, and estates by | ||
subsections (a) and (b) of Section 201 of this Act during the | ||
preceding month, minus deposits into the Income Tax Refund | ||
Fund, into the Fund for the Advancement of Education: | ||
(1) beginning February 1, 2015, and prior to February | ||
1, 2025, 1/30; and | ||
(2) beginning February 1, 2025, 1/26. | ||
If the rate of tax imposed by subsection (a) and (b) of | ||
Section 201 is reduced pursuant to Section 201.5 of this Act, |
the Department shall not make the deposits required by this | ||
subsection (f) on or after the effective date of the reduction. | ||
(g) Deposits into the Commitment to Human Services Fund. | ||
Beginning February 1, 2015, the Department shall deposit the | ||
following portions of the revenue realized from the tax imposed | ||
upon individuals, trusts, and estates by subsections (a) and | ||
(b) of Section 201 of this Act during the preceding month, | ||
minus deposits into the Income Tax Refund Fund, into the | ||
Commitment to Human Services Fund: | ||
(1) beginning February 1, 2015, and prior to February | ||
1, 2025, 1/30; and | ||
(2) beginning February 1, 2025, 1/26. | ||
If the rate of tax imposed by subsection (a) and (b) of | ||
Section 201 is reduced pursuant to Section 201.5 of this Act, | ||
the Department shall not make the deposits required by this | ||
subsection (g) on or after the effective date of the reduction. | ||
(h) Deposits into the Tax Compliance and Administration | ||
Fund. Beginning on the first day of the first calendar month to | ||
occur on or after August 26, 2014 (the effective date of Public | ||
Act 98-1098), each month the Department shall pay into the Tax | ||
Compliance and Administration Fund, to be used, subject to | ||
appropriation, to fund additional auditors and compliance | ||
personnel at the Department, an amount equal to 1/12 of 5% of | ||
the cash receipts collected during the preceding fiscal year by | ||
the Audit Bureau of the Department from the tax imposed by | ||
subsections (a), (b), (c), and (d) of Section 201 of this Act, |
net of deposits into the Income Tax Refund Fund made from those | ||
cash receipts. | ||
(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; | ||
98-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff. | ||
7-20-15.)
| ||
(35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||
Sec. 1501. Definitions.
| ||
(a) In general. When used in this Act, where not
otherwise | ||
distinctly expressed or manifestly incompatible with the | ||
intent
thereof:
| ||
(1) Business income. The term "business income" means | ||
all income that may be treated as apportionable business | ||
income under the Constitution of the United States. | ||
Business income is net of the deductions allocable thereto. | ||
Such term does not include compensation
or the deductions | ||
allocable thereto.
For each taxable year beginning on or | ||
after January 1, 2003, a taxpayer may
elect to treat all | ||
income other than compensation as business income. This
| ||
election shall be made in accordance with rules adopted by | ||
the Department and,
once made, shall be irrevocable.
| ||
(1.5) Captive real estate investment trust:
| ||
(A) The term "captive real estate investment | ||
trust" means a corporation, trust, or association:
| ||
(i) that is considered a real estate | ||
investment trust for the taxable year under |
Section 856 of the Internal Revenue Code;
| ||
(ii) the certificates of beneficial interest | ||
or shares of which are not regularly traded on an | ||
established securities market; and | ||
(iii) of which more than 50% of the voting | ||
power or value of the beneficial interest or | ||
shares, at any time during the last half of the | ||
taxable year, is owned or controlled, directly, | ||
indirectly, or constructively, by a single | ||
corporation. | ||
(B) The term "captive real estate investment | ||
trust" does not include: | ||
(i) a real estate investment trust of which | ||
more than 50% of the voting power or value of the | ||
beneficial interest or shares is owned or | ||
controlled, directly, indirectly, or | ||
constructively, by: | ||
(a) a real estate investment trust, other | ||
than a captive real estate investment trust; | ||
(b) a person who is exempt from taxation | ||
under Section 501 of the Internal Revenue Code, | ||
and who is not required to treat income | ||
received from the real estate investment trust | ||
as unrelated business taxable income under | ||
Section 512 of the Internal Revenue Code; | ||
(c) a listed Australian property trust, if |
no more than 50% of the voting power or value | ||
of the beneficial interest or shares of that | ||
trust, at any time during the last half of the | ||
taxable year, is owned or controlled, directly | ||
or indirectly, by a single person; | ||
(d) an entity organized as a trust, | ||
provided a listed Australian property trust | ||
described in subparagraph (c) owns or | ||
controls, directly or indirectly, or | ||
constructively, 75% or more of the voting power | ||
or value of the beneficial interests or shares | ||
of such entity; or | ||
(e) an entity that is organized outside of | ||
the laws of the United States and that | ||
satisfies all of the following criteria: | ||
(1) at least 75% of the entity's total | ||
asset value at the close of its taxable | ||
year is represented by real estate assets | ||
(as defined in Section 856(c)(5)(B) of the | ||
Internal Revenue Code, thereby including | ||
shares or certificates of beneficial | ||
interest in any real estate investment | ||
trust), cash and cash equivalents, and | ||
U.S. Government securities; | ||
(2) the entity is not subject to tax on | ||
amounts that are distributed to its |
beneficial owners or is exempt from | ||
entity-level taxation; | ||
(3) the entity distributes at least | ||
85% of its taxable income (as computed in | ||
the jurisdiction in which it is organized) | ||
to the holders of its shares or | ||
certificates of beneficial interest on an | ||
annual basis; | ||
(4) either (i) the shares or | ||
beneficial interests of the entity are | ||
regularly traded on an established | ||
securities market or (ii) not more than 10% | ||
of the voting power or value in the entity | ||
is held, directly, indirectly, or | ||
constructively, by a single entity or | ||
individual; and | ||
(5) the entity is organized in a | ||
country that has entered into a tax treaty | ||
with the United States; or | ||
(ii) during its first taxable year for which it | ||
elects to be treated as a real estate investment | ||
trust under Section 856(c)(1) of the Internal | ||
Revenue Code, a real estate investment trust the | ||
certificates of beneficial interest or shares of | ||
which are not regularly traded on an established | ||
securities market, but only if the certificates of |
beneficial interest or shares of the real estate | ||
investment trust are regularly traded on an | ||
established securities market prior to the earlier | ||
of the due date (including extensions) for filing | ||
its return under this Act for that first taxable | ||
year or the date it actually files that return. | ||
(C) For the purposes of this subsection (1.5), the | ||
constructive ownership rules prescribed under Section | ||
318(a) of the Internal Revenue Code, as modified by | ||
Section 856(d)(5) of the Internal Revenue Code, apply | ||
in determining the ownership of stock, assets, or net | ||
profits of any person.
| ||
(D) For the purposes of this item (1.5), for | ||
taxable years ending on or after August 16, 2007, the | ||
voting power or value of the beneficial interest or | ||
shares of a real estate investment trust does not | ||
include any voting power or value of beneficial | ||
interest or shares in a real estate investment trust | ||
held directly or indirectly in a segregated asset | ||
account by a life insurance company (as described in | ||
Section 817 of the Internal Revenue Code) to the extent | ||
such voting power or value is for the benefit of | ||
entities or persons who are either immune from taxation | ||
or exempt from taxation under subtitle A of the | ||
Internal Revenue Code.
| ||
(2) Commercial domicile. The term "commercial |
domicile" means the
principal
place from which the trade or | ||
business of the taxpayer is directed or managed.
| ||
(3) Compensation. The term "compensation" means wages, | ||
salaries,
commissions
and any other form of remuneration | ||
paid to employees for personal services.
| ||
(4) Corporation. The term "corporation" includes | ||
associations, joint-stock
companies, insurance companies | ||
and cooperatives. Any entity, including a
limited | ||
liability company formed under the Illinois Limited | ||
Liability Company
Act, shall be treated as a corporation if | ||
it is so classified for federal
income tax purposes.
| ||
(5) Department. The term "Department" means the | ||
Department of Revenue of
this State.
| ||
(6) Director. The term "Director" means the Director of | ||
Revenue of this
State.
| ||
(7) Fiduciary. The term "fiduciary" means a guardian, | ||
trustee, executor,
administrator, receiver, or any person | ||
acting in any fiduciary capacity for any
person.
| ||
(8) Financial organization.
| ||
(A) The term "financial organization" means
any
| ||
bank, bank holding company, trust company, savings | ||
bank, industrial bank,
land bank, safe deposit | ||
company, private banker, savings and loan association,
| ||
building and loan association, credit union, currency | ||
exchange, cooperative
bank, small loan company, sales | ||
finance company, investment company, or any
person |
which is owned by a bank or bank holding company. For | ||
the purpose of
this Section a "person" will include | ||
only those persons which a bank holding
company may | ||
acquire and hold an interest in, directly or | ||
indirectly, under the
provisions of the Bank Holding | ||
Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||
where interests in any person must be disposed of | ||
within certain
required time limits under the Bank | ||
Holding Company Act of 1956.
| ||
(B) For purposes of subparagraph (A) of this | ||
paragraph, the term
"bank" includes (i) any entity that | ||
is regulated by the Comptroller of the
Currency under | ||
the National Bank Act, or by the Federal Reserve Board, | ||
or by
the
Federal Deposit Insurance Corporation and | ||
(ii) any federally or State chartered
bank
operating as | ||
a credit card bank.
| ||
(C) For purposes of subparagraph (A) of this | ||
paragraph, the term
"sales finance company" has the | ||
meaning provided in the following item (i) or
(ii):
| ||
(i) A person primarily engaged in one or more | ||
of the following
businesses: the business of | ||
purchasing customer receivables, the business
of | ||
making loans upon the security of customer | ||
receivables, the
business of making loans for the | ||
express purpose of funding purchases of
tangible | ||
personal property or services by the borrower, or |
the business of
finance leasing. For purposes of | ||
this item (i), "customer receivable"
means:
| ||
(a) a retail installment contract or | ||
retail charge agreement within
the
meaning
of | ||
the Sales Finance Agency Act, the Retail | ||
Installment Sales Act, or the
Motor Vehicle | ||
Retail Installment Sales Act;
| ||
(b) an installment, charge, credit, or | ||
similar contract or agreement
arising from
the | ||
sale of tangible personal property or services | ||
in a transaction involving
a deferred payment | ||
price payable in one or more installments | ||
subsequent
to the sale; or
| ||
(c) the outstanding balance of a contract | ||
or agreement described in
provisions
(a) or (b) | ||
of this item (i).
| ||
A customer receivable need not provide for | ||
payment of interest on
deferred
payments. A sales | ||
finance company may purchase a customer receivable | ||
from, or
make a loan secured by a customer | ||
receivable to, the seller in the original
| ||
transaction or to a person who purchased the | ||
customer receivable directly or
indirectly from | ||
that seller.
| ||
(ii) A corporation meeting each of the | ||
following criteria:
|
(a) the corporation must be a member of an | ||
"affiliated group" within
the
meaning of | ||
Section 1504(a) of the Internal Revenue Code, | ||
determined
without regard to Section 1504(b) | ||
of the Internal Revenue Code;
| ||
(b) more than 50% of the gross income of | ||
the corporation for the
taxable
year
must be | ||
interest income derived from qualifying loans. | ||
A "qualifying
loan" is a loan made to a member | ||
of the corporation's affiliated group that
| ||
originates customer receivables (within the | ||
meaning of item (i)) or to whom
customer | ||
receivables originated by a member of the | ||
affiliated group have been
transferred, to
the | ||
extent the average outstanding balance of | ||
loans from that corporation
to members of its | ||
affiliated group during the taxable year do not | ||
exceed
the limitation amount for that | ||
corporation. The "limitation amount" for a
| ||
corporation is the average outstanding | ||
balances during the taxable year of
customer | ||
receivables (within the meaning of item (i)) | ||
originated by
all members of the affiliated | ||
group.
If the average outstanding balances of | ||
the
loans made by a corporation to members of | ||
its affiliated group exceed the
limitation |
amount, the interest income of that | ||
corporation from qualifying
loans shall be | ||
equal to its interest income from loans to | ||
members of its
affiliated groups times a | ||
fraction equal to the limitation amount | ||
divided by
the average outstanding balances of | ||
the loans made by that corporation to
members | ||
of its affiliated group;
| ||
(c) the total of all shareholder's equity | ||
(including, without
limitation,
paid-in
| ||
capital on common and preferred stock and | ||
retained earnings) of the
corporation plus the | ||
total of all of its loans, advances, and other
| ||
obligations payable or owed to members of its | ||
affiliated group may not
exceed 20% of the | ||
total assets of the corporation at any time | ||
during the tax
year; and
| ||
(d) more than 50% of all interest-bearing | ||
obligations of the
affiliated group payable to | ||
persons outside the group determined in | ||
accordance
with generally accepted accounting | ||
principles must be obligations of the
| ||
corporation.
| ||
This amendatory Act of the 91st General Assembly is | ||
declaratory of
existing
law.
| ||
(D) Subparagraphs
(B) and (C) of this paragraph are |
declaratory of
existing law and apply retroactively, | ||
for all tax years beginning on or before
December 31, | ||
1996,
to all original returns, to all amended returns | ||
filed no later than 30
days after the effective date of | ||
this amendatory Act of 1996, and to all
notices issued | ||
on or before the effective date of this amendatory Act | ||
of 1996
under subsection (a) of Section 903, subsection | ||
(a) of Section 904,
subsection (e) of Section 909, or | ||
Section 912.
A taxpayer that is a "financial | ||
organization" that engages in any transaction
with an | ||
affiliate shall be a "financial organization" for all | ||
purposes of this
Act.
| ||
(E) For all tax years beginning on or
before | ||
December 31, 1996, a taxpayer that falls within the | ||
definition
of a
"financial organization" under | ||
subparagraphs (B) or (C) of this paragraph, but
who | ||
does
not fall within the definition of a "financial | ||
organization" under the Proposed
Regulations issued by | ||
the Department of Revenue on July 19, 1996, may
| ||
irrevocably elect to apply the Proposed Regulations | ||
for all of those years as
though the Proposed | ||
Regulations had been lawfully promulgated, adopted, | ||
and in
effect for all of those years. For purposes of | ||
applying subparagraphs (B) or
(C) of
this
paragraph to | ||
all of those years, the election allowed by this | ||
subparagraph
applies only to the taxpayer making the |
election and to those members of the
taxpayer's unitary | ||
business group who are ordinarily required to | ||
apportion
business income under the same subsection of | ||
Section 304 of this Act as the
taxpayer making the | ||
election. No election allowed by this subparagraph | ||
shall
be made under a claim
filed under subsection (d) | ||
of Section 909 more than 30 days after the
effective | ||
date of this amendatory Act of 1996.
| ||
(F) Finance Leases. For purposes of this | ||
subsection, a finance lease
shall be treated as a loan | ||
or other extension of credit, rather than as a
lease,
| ||
regardless of how the transaction is characterized for | ||
any other purpose,
including the purposes of any | ||
regulatory agency to which the lessor is subject.
A | ||
finance lease is any transaction in the form of a lease | ||
in which the lessee
is treated as the owner of the | ||
leased asset entitled to any deduction for
| ||
depreciation allowed under Section 167 of the Internal | ||
Revenue Code.
| ||
(9) Fiscal year. The term "fiscal year" means an | ||
accounting period of
12 months ending on the last day of | ||
any month other than December.
| ||
(9.5) Fixed place of business. The term "fixed place of | ||
business" has the same meaning as that term is given in | ||
Section 864 of the Internal Revenue Code and the related | ||
Treasury regulations.
|
(10) Includes and including. The terms "includes" and | ||
"including" when
used in a definition contained in this Act | ||
shall not be deemed to exclude
other things otherwise | ||
within the meaning of the term defined.
| ||
(11) Internal Revenue Code. The term "Internal Revenue | ||
Code" means the
United States Internal Revenue Code of 1954 | ||
or any successor law or laws
relating to federal income | ||
taxes in effect for the taxable year.
| ||
(11.5) Investment partnership. | ||
(A) The term "investment partnership" means any | ||
entity that is treated as a partnership for federal | ||
income tax purposes that meets the following | ||
requirements: | ||
(i) no less than 90% of the partnership's cost | ||
of its total assets consists of qualifying | ||
investment securities, deposits at banks or other | ||
financial institutions, and office space and | ||
equipment reasonably necessary to carry on its | ||
activities as an investment partnership; | ||
(ii) no less than 90% of its gross income | ||
consists of interest, dividends, and gains from | ||
the sale or exchange of qualifying investment | ||
securities; and
| ||
(iii) the partnership is not a dealer in | ||
qualifying investment securities. | ||
(B) For purposes of this paragraph (11.5), the term |
"qualifying investment securities" includes all of the | ||
following:
| ||
(i) common stock, including preferred or debt | ||
securities convertible into common stock, and | ||
preferred stock; | ||
(ii) bonds, debentures, and other debt | ||
securities; | ||
(iii) foreign and domestic currency deposits | ||
secured by federal, state, or local governmental | ||
agencies; | ||
(iv) mortgage or asset-backed securities | ||
secured by federal, state, or local governmental | ||
agencies; | ||
(v) repurchase agreements and loan | ||
participations; | ||
(vi) foreign currency exchange contracts and | ||
forward and futures contracts on foreign | ||
currencies; | ||
(vii) stock and bond index securities and | ||
futures contracts and other similar financial | ||
securities and futures contracts on those | ||
securities;
| ||
(viii) options for the purchase or sale of any | ||
of the securities, currencies, contracts, or | ||
financial instruments described in items (i) to | ||
(vii), inclusive;
|
(ix) regulated futures contracts;
| ||
(x) commodities (not described in Section | ||
1221(a)(1) of the Internal Revenue Code) or | ||
futures, forwards, and options with respect to | ||
such commodities, provided, however, that any item | ||
of a physical commodity to which title is actually | ||
acquired in the partnership's capacity as a dealer | ||
in such commodity shall not be a qualifying | ||
investment security;
| ||
(xi) derivatives; and
| ||
(xii) a partnership interest in another | ||
partnership that is an investment partnership.
| ||
(12) Mathematical error. The term "mathematical error" | ||
includes the
following types of errors, omissions, or | ||
defects in a return filed by a
taxpayer which prevents | ||
acceptance of the return as filed for processing:
| ||
(A) arithmetic errors or incorrect computations on | ||
the return or
supporting schedules;
| ||
(B) entries on the wrong lines;
| ||
(C) omission of required supporting forms or | ||
schedules or the omission
of the information in whole | ||
or in part called for thereon; and
| ||
(D) an attempt to claim, exclude, deduct, or | ||
improperly report, in a
manner
directly contrary to the | ||
provisions of the Act and regulations thereunder
any | ||
item of income, exemption, deduction, or credit.
|
(13) Nonbusiness income. The term "nonbusiness income" | ||
means all income
other than business income or | ||
compensation.
| ||
(14) Nonresident. The term "nonresident" means a | ||
person who is not a
resident.
| ||
(15) Paid, incurred and accrued. The terms "paid", | ||
"incurred" and
"accrued"
shall be construed according to | ||
the method of accounting upon the basis
of which the | ||
person's base income is computed under this Act.
| ||
(16) Partnership and partner. The term "partnership" | ||
includes a syndicate,
group, pool, joint venture or other | ||
unincorporated organization, through
or by means of which | ||
any business, financial operation, or venture is carried
| ||
on, and which is not, within the meaning of this Act, a | ||
trust or estate
or a corporation; and the term "partner" | ||
includes a member in such syndicate,
group, pool, joint | ||
venture or organization.
| ||
The term "partnership" includes any entity, including | ||
a limited
liability company formed under the Illinois
| ||
Limited Liability Company Act, classified as a partnership | ||
for federal income tax purposes.
| ||
The term "partnership" does not include a syndicate, | ||
group, pool,
joint venture, or other unincorporated | ||
organization established for the
sole purpose of playing | ||
the Illinois State Lottery.
| ||
(17) Part-year resident. The term "part-year resident" |
means an individual
who became a resident during the | ||
taxable year or ceased to be a resident
during the taxable | ||
year. Under Section 1501(a)(20)(A)(i) residence
commences | ||
with presence in this State for other than a temporary or | ||
transitory
purpose and ceases with absence from this State | ||
for other than a temporary or
transitory purpose. Under | ||
Section 1501(a)(20)(A)(ii) residence commences
with the | ||
establishment of domicile in this State and ceases with the
| ||
establishment of domicile in another State.
| ||
(18) Person. The term "person" shall be construed to | ||
mean and include
an individual, a trust, estate, | ||
partnership, association, firm, company,
corporation, | ||
limited liability company, or fiduciary. For purposes of | ||
Section
1301 and 1302 of this Act, a "person" means (i) an | ||
individual, (ii) a
corporation, (iii) an officer, agent, or | ||
employee of a
corporation, (iv) a member, agent or employee | ||
of a partnership, or (v)
a member,
manager, employee, | ||
officer, director, or agent of a limited liability company
| ||
who in such capacity commits an offense specified in | ||
Section 1301 and 1302.
| ||
(18A) Records. The term "records" includes all data | ||
maintained by the
taxpayer, whether on paper, microfilm, | ||
microfiche, or any type of
machine-sensible data | ||
compilation.
| ||
(19) Regulations. The term "regulations" includes | ||
rules promulgated and
forms prescribed by the Department.
|
(20) Resident. The term "resident" means:
| ||
(A) an individual (i) who is
in this State for | ||
other than a temporary or transitory purpose during the
| ||
taxable year; or (ii) who is domiciled in this State | ||
but is absent from
the State for a temporary or | ||
transitory purpose during the taxable year;
| ||
(B) The estate of a decedent who at his or her | ||
death was domiciled in
this
State;
| ||
(C) A trust created by a will of a decedent who at | ||
his death was
domiciled
in this State; and
| ||
(D) An irrevocable trust, the grantor of which was | ||
domiciled in this
State
at the time such trust became | ||
irrevocable. For purpose of this subparagraph,
a trust | ||
shall be considered irrevocable to the extent that the | ||
grantor is
not treated as the owner thereof under | ||
Sections 671 through 678 of the Internal
Revenue Code.
| ||
(21) Sales. The term "sales" means all gross receipts | ||
of the taxpayer
not allocated under Sections 301, 302 and | ||
303.
| ||
(22) State. The term "state" when applied to a | ||
jurisdiction other than
this State means any state of the | ||
United States, the District of Columbia,
the Commonwealth | ||
of Puerto Rico, any Territory or Possession of the United
| ||
States, and any foreign country, or any political | ||
subdivision of any of the
foregoing. For purposes of the | ||
foreign tax credit under Section 601, the
term "state" |
means any state of the United States, the District of | ||
Columbia,
the Commonwealth of Puerto Rico, and any | ||
territory or possession of the
United States, or any | ||
political subdivision of any of the foregoing,
effective | ||
for tax years ending on or after December 31, 1989.
| ||
(23) Taxable year. The term "taxable year" means the | ||
calendar year, or
the fiscal year ending during such | ||
calendar year, upon the basis of which
the base income is | ||
computed under this Act. "Taxable year" means, in the
case | ||
of a return made for a fractional part of a year under the | ||
provisions
of this Act, the period for which such return is | ||
made.
| ||
(24) Taxpayer. The term "taxpayer" means any person | ||
subject to the tax
imposed by this Act.
| ||
(25) International banking facility. The term | ||
international banking
facility shall have the same meaning | ||
as is set forth in the Illinois Banking
Act or as is set | ||
forth in the laws of the United States or regulations of
| ||
the Board of Governors of the Federal Reserve System.
| ||
(26) Income Tax Return Preparer.
| ||
(A) The term "income tax return preparer"
means any | ||
person who prepares for compensation, or who employs | ||
one or more
persons to prepare for compensation, any | ||
return of tax imposed by this Act
or any claim for | ||
refund of tax imposed by this Act. The preparation of a
| ||
substantial portion of a return or claim for refund |
shall be treated as
the preparation of that return or | ||
claim for refund.
| ||
(B) A person is not an income tax return preparer | ||
if all he or she does
is
| ||
(i) furnish typing, reproducing, or other | ||
mechanical assistance;
| ||
(ii) prepare returns or claims for refunds for | ||
the employer by whom he
or she is regularly and | ||
continuously employed;
| ||
(iii) prepare as a fiduciary returns or claims | ||
for refunds for any
person; or
| ||
(iv) prepare claims for refunds for a taxpayer | ||
in response to any
notice
of deficiency issued to | ||
that taxpayer or in response to any waiver of
| ||
restriction after the commencement of an audit of | ||
that taxpayer or of another
taxpayer if a | ||
determination in the audit of the other taxpayer | ||
directly or
indirectly affects the tax liability | ||
of the taxpayer whose claims he or she is
| ||
preparing.
| ||
(27) Unitary business group. | ||
(A) The term "unitary business group" means
a group | ||
of persons related through common ownership whose | ||
business activities
are integrated with, dependent | ||
upon and contribute to each other. The group
will not | ||
include those members whose business activity outside |
the United
States is 80% or more of any such member's | ||
total business activity; for
purposes of this | ||
paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||
business
activity within the United States shall be | ||
measured by means of the factors
ordinarily applicable | ||
under subsections (a), (b), (c), (d), or (h)
of Section
| ||
304 except that, in the case of members ordinarily | ||
required to apportion
business income by means of the 3 | ||
factor formula of property, payroll and sales
| ||
specified in subsection (a) of Section 304, including | ||
the
formula as weighted in subsection (h) of Section | ||
304, such members shall
not use the sales factor in the | ||
computation and the results of the property
and payroll | ||
factor computations of subsection (a) of Section 304 | ||
shall be
divided by 2 (by one if either
the property or | ||
payroll factor has a denominator of zero). The | ||
computation
required by the preceding sentence shall, | ||
in each case, involve the division of
the member's | ||
property, payroll, or revenue miles in the United | ||
States,
insurance premiums on property or risk in the | ||
United States, or financial
organization business | ||
income from sources within the United States, as the
| ||
case may be, by the respective worldwide figures for | ||
such items. Common
ownership in the case of | ||
corporations is the direct or indirect control or
| ||
ownership of more than 50% of the outstanding voting |
stock of the persons
carrying on unitary business | ||
activity. Unitary business activity can
ordinarily be | ||
illustrated where the activities of the members are: | ||
(1) in the
same general line (such as manufacturing, | ||
wholesaling, retailing of tangible
personal property, | ||
insurance, transportation or finance); or (2) are | ||
steps in a
vertically structured enterprise or process | ||
(such as the steps involved in the
production of | ||
natural resources, which might include exploration, | ||
mining,
refining, and marketing); and, in either | ||
instance, the members are functionally
integrated | ||
through the exercise of strong centralized management | ||
(where, for
example, authority over such matters as | ||
purchasing, financing, tax compliance,
product line, | ||
personnel, marketing and capital investment is not | ||
left to each
member).
| ||
(B) In no event, for taxable years ending prior to | ||
December 31, 2017, shall any
unitary business group | ||
include members
which are ordinarily required to | ||
apportion business income under different
subsections | ||
of Section 304 except that for tax years ending on or | ||
after
December 31, 1987 this prohibition shall not | ||
apply to a holding company that would otherwise be a | ||
member of a unitary business group with taxpayers that | ||
apportion business income under any of subsections | ||
(b), (c), (c-1), or (d) of Section 304. If a unitary |
business
group would, but for the preceding sentence, | ||
include members that are
ordinarily required to | ||
apportion business income under different subsections | ||
of
Section 304, then for each subsection of Section 304 | ||
for which there are two or
more members, there shall be | ||
a separate unitary business group composed of such
| ||
members. For purposes of the preceding two sentences, a | ||
member is "ordinarily
required to apportion business | ||
income" under a particular subsection of Section
304 if | ||
it would be required to use the apportionment method | ||
prescribed by such
subsection except for the fact that | ||
it derives business income solely from
Illinois. As | ||
used in this paragraph, for taxable years ending before | ||
December 31, 2017, the phrase "United States" means | ||
only the 50 states and the District of Columbia, but | ||
does not include any territory or possession of the | ||
United States or any area over which the United States | ||
has asserted jurisdiction or claimed exclusive rights | ||
with respect to the exploration for or exploitation of | ||
natural resources.
For taxable years ending on or after | ||
December 31, 2017, the phrase "United States", as used | ||
in this paragraph, means only the 50 states, the | ||
District of Columbia, and any area over which the | ||
United States has asserted jurisdiction or claimed | ||
exclusive rights with respect to the exploration for or | ||
exploitation of natural resources, but does not |
include any territory or possession of the United | ||
States. | ||
(C) Holding companies. | ||
(i) For purposes of this subparagraph, a | ||
"holding company" is a corporation (other than a | ||
corporation that is a financial organization under | ||
paragraph (8) of this subsection (a) of Section | ||
1501 because it is a bank holding company under the | ||
provisions of the Bank Holding Company Act of 1956 | ||
(12 U.S.C. 1841, et seq.) or because it is owned by | ||
a bank or a bank holding company) that owns a | ||
controlling interest in one or more other | ||
taxpayers ("controlled taxpayers"); that, during | ||
the period that includes the taxable year and the 2 | ||
immediately preceding taxable years or, if the | ||
corporation was formed during the current or | ||
immediately preceding taxable year, the taxable | ||
years in which the corporation has been in | ||
existence, derived substantially all its gross | ||
income from dividends, interest, rents, royalties, | ||
fees or other charges received from controlled | ||
taxpayers for the provision of services, and gains | ||
on the sale or other disposition of interests in | ||
controlled taxpayers or in property leased or | ||
licensed to controlled taxpayers or used by the | ||
taxpayer in providing services to controlled |
taxpayers; and that incurs no substantial expenses | ||
other than expenses (including interest and other | ||
costs of borrowing) incurred in connection with | ||
the acquisition and holding of interests in | ||
controlled taxpayers and in the provision of | ||
services to controlled taxpayers or in the leasing | ||
or licensing of property to controlled taxpayers. | ||
(ii) The income of a holding company which is a | ||
member of more than one unitary business group | ||
shall be included in each unitary business group of | ||
which it is a member on a pro rata basis, by | ||
including in each unitary business group that | ||
portion of the base income of the holding company | ||
that bears the same proportion to the total base | ||
income of the holding company as the gross receipts | ||
of the unitary business group bears to the combined | ||
gross receipts of all unitary business groups (in | ||
both cases without regard to the holding company) | ||
or on any other reasonable basis, consistently | ||
applied. | ||
(iii) A holding company shall apportion its | ||
business income under the subsection of Section | ||
304 used by the other members of its unitary | ||
business group. The apportionment factors of a | ||
holding company which would be a member of more | ||
than one unitary business group shall be included |
with the apportionment factors of each unitary | ||
business group of which it is a member on a pro | ||
rata basis using the same method used in clause | ||
(ii). | ||
(iv) The provisions of this subparagraph (C) | ||
are intended to clarify existing law. | ||
(D) If including the base income and factors of a | ||
holding company in more than one unitary business group | ||
under subparagraph (C) does not fairly reflect the | ||
degree of integration between the holding company and | ||
one or more of the unitary business groups, the | ||
dependence of the holding company and one or more of | ||
the unitary business groups upon each other, or the | ||
contributions between the holding company and one or | ||
more of the unitary business groups, the holding | ||
company may petition the Director, under the | ||
procedures provided under Section 304(f), for | ||
permission to include all base income and factors of | ||
the holding company only with members of a unitary | ||
business group apportioning their business income | ||
under one subsection of subsections (a), (b), (c), or | ||
(d) of Section 304. If the petition is granted, the | ||
holding company shall be included in a unitary business | ||
group only with persons apportioning their business | ||
income under the selected subsection of Section 304 | ||
until the Director grants a petition of the holding |
company either to be included in more than one unitary | ||
business group under subparagraph (C) or to include its | ||
base income and factors only with members of a unitary | ||
business group apportioning their business income | ||
under a different subsection of Section 304. | ||
(E) If the unitary business group members' | ||
accounting periods differ,
the common parent's | ||
accounting period or, if there is no common parent, the
| ||
accounting period of the member that is expected to | ||
have, on a recurring basis,
the greatest Illinois | ||
income tax liability must be used to determine whether | ||
to
use the apportionment method provided in subsection | ||
(a) or subsection (h) of
Section 304. The
prohibition | ||
against membership in a unitary business group for | ||
taxpayers
ordinarily required to apportion income | ||
under different subsections of Section
304 does not | ||
apply to taxpayers required to apportion income under | ||
subsection
(a) and subsection (h) of Section
304. The | ||
provisions of this amendatory Act of 1998 apply to tax
| ||
years ending on or after December 31, 1998.
| ||
(28) Subchapter S corporation. The term "Subchapter S | ||
corporation"
means a corporation for which there is in | ||
effect an election under Section
1362 of the Internal | ||
Revenue Code, or for which there is a federal election
to | ||
opt out of the provisions of the Subchapter S Revision Act | ||
of 1982 and
have applied instead the prior federal |
Subchapter S rules as in effect on July
1, 1982.
| ||
(30) Foreign person. The term "foreign person" means | ||
any person who is a nonresident alien individual and any | ||
nonindividual entity, regardless of where created or | ||
organized, whose business activity outside the United | ||
States is 80% or more of the entity's total business | ||
activity.
| ||
(b) Other definitions.
| ||
(1) Words denoting number, gender, and so forth,
when | ||
used in this Act, where not otherwise distinctly expressed | ||
or manifestly
incompatible with the intent thereof:
| ||
(A) Words importing the singular include and apply | ||
to several persons,
parties or things;
| ||
(B) Words importing the plural include the | ||
singular; and
| ||
(C) Words importing the masculine gender include | ||
the feminine as well.
| ||
(2) "Company" or "association" as including successors | ||
and assigns. The
word "company" or "association", when used | ||
in reference to a corporation,
shall be deemed to embrace | ||
the words "successors and assigns of such company
or | ||
association", and in like manner as if these last-named | ||
words, or words
of similar import, were expressed.
| ||
(3) Other terms. Any term used in any Section of this | ||
Act with respect
to the application of, or in connection |
with, the provisions of any other
Section of this Act shall | ||
have the same meaning as in such other Section.
| ||
(Source: P.A. 99-213, eff. 7-31-15.)
| ||
ARTICLE 25. AMENDATORY PROVISIONS; STATE TAX LIEN REGISTRY | ||
Section 25-5. The Illinois Income Tax Act is amended by | ||
changing Sections 1102, 1103, and 1105 as follows:
| ||
(35 ILCS 5/1102) (from Ch. 120, par. 11-1102)
| ||
Sec. 1102. Jeopardy Assessments.
| ||
(a) Jeopardy assessment and lien.
| ||
(1) Assessment. If the Department finds that a taxpayer | ||
is about to
depart from the State, or to conceal himself or | ||
his property, or to do any
other act tending to prejudice | ||
or to render wholly or partly ineffectual
proceedings to | ||
collect any amount of tax or penalties imposed under this
| ||
Act unless court proceedings are brought without delay, or | ||
if the
Department finds that the collection of such amount | ||
will be jeopardized by
delay, the Department shall give the | ||
taxpayer notice of such findings and
shall make demand for | ||
immediate return and payment of such amount,
whereupon such | ||
amount shall be deemed assessed and shall become | ||
immediately
due and payable.
| ||
(2) Filing of lien. If the taxpayer, within 5 days | ||
after such notice
(or within such extension of time as the |
Department may grant), does not
comply with such notice or | ||
show to the Department that the findings in such
notice are | ||
erroneous, the Department may file a notice of jeopardy
| ||
assessment lien in the State Tax Lien Registry office of | ||
the recorder of the county in
which any property of the | ||
taxpayer may be located and shall notify the
taxpayer of | ||
such filing. Such jeopardy assessment lien shall have the | ||
same
scope and effect as a statutory lien under this Act.
| ||
The taxpayer is liable for any administrative fee imposed | ||
by the Department by rule in connection with the State Tax | ||
Lien Registry the filing fee incurred by the Department for
| ||
filing the lien and the filing fee incurred by the | ||
Department to file the
release of that lien . The filing | ||
fees shall be paid to the Department in
addition to payment | ||
of the tax, penalty, and interest included in the amount of
| ||
the lien.
| ||
(b) Termination of taxable year. In the case of a tax for a | ||
current
taxable year, the Director shall declare the taxable | ||
period of the taxpayer
immediately terminated and his notice | ||
and demand for a return and immediate
payment of the tax shall | ||
relate to the period declared terminated,
including therein | ||
income accrued and deductions incurred up to the date of
| ||
termination if not otherwise properly includible or deductible | ||
in respect
of such taxable year.
| ||
(c) Protest. If the taxpayer believes that he does not owe | ||
some or
all of the amount for which the jeopardy assessment |
lien against him has
been filed, or that no jeopardy to the | ||
revenue in fact exists, he may
protest within 20 days after | ||
being notified by the Department of the filing
of such jeopardy | ||
assessment lien and request a hearing, whereupon the
Department | ||
shall hold a hearing in conformity with the provisions of
| ||
section 908 and, pursuant thereto, shall notify the taxpayer of | ||
its
decision as to whether or not such jeopardy assessment lien | ||
will be
released.
| ||
(Source: P.A. 92-826, eff. 1-1-03.)
| ||
(35 ILCS 5/1103) (from Ch. 120, par. 11-1103)
| ||
Sec. 1103. Filing and Priority of Liens.
| ||
(a) Filing in the State Tax Lien Registry with Recorder .
| ||
Nothing in this Article shall be construed
to give the | ||
Department a preference over the rights of any bona fide
| ||
purchaser, holder of a security interest, mechanics lienor, | ||
mortgagee,
or judgment lien creditor arising prior
to the | ||
filing of a regular notice of lien or a notice of jeopardy
| ||
assessment lien in the State Tax Lien Registry office of the | ||
recorder in the county in
which the property subject to the | ||
lien is located . For purposes of this
Section section , the term | ||
"bona fide," shall not include any mortgage of real or
personal | ||
property or any other credit transaction that results in the
| ||
mortgagee or the holder of the security acting as trustee for | ||
unsecured
creditors of the taxpayer mentioned in the notice of | ||
lien who executed such
chattel or real property mortgage or the |
document evidencing such credit
transaction. Such lien shall be | ||
inferior to the lien of general taxes,
special assessments and | ||
special taxes heretofore or hereafter levied by any
political | ||
subdivision of this State.
| ||
(b) Filing in the State Tax Lien Registry with Registrar . | ||
In case title to land to be affected by
the notice of lien or | ||
notice of jeopardy assessment lien is registered
under the | ||
provisions of "An Act concerning land titles," approved May 1,
| ||
1897, as amended, such notice shall also be filed in the State | ||
Tax Lien Registry office of the
Registrar of Titles of the | ||
county within which the property subject to the
lien is | ||
situated and shall be entered upon the register of titles as a
| ||
memorial of charge upon each folium of the register of titles | ||
affected by
such notice , and the Department shall not have a | ||
preference over the rights
of any bona fide purchaser, | ||
mortgagee, judgment creditor or other lien
holder arising prior | ||
to the registration of such notice.
| ||
(c) Index. The Department of Revenue shall maintain a State | ||
Tax Lien Index of all tax liens filed in the State Tax Lien | ||
Registry as provided for by the State Tax Lien Registration | ||
Act. The recorder of each county shall procure a file
labeled | ||
"State Tax Lien Notices" and an index book labeled "State Tax | ||
Lien
Index." When notice of any lien or jeopardy assessment | ||
lien is presented to
him for filing, he shall file it in | ||
numerical order in the file and shall
enter it alphabetically | ||
in the index. The entry shall show the name and
last known |
address of the person named in the notice, the serial number of
| ||
the notice, the date and hour of filing, whether it is a | ||
regular lien or a
jeopardy assessment lien, and the amount of | ||
tax and penalty due and unpaid,
plus the amount of interest due | ||
at the time when the notice of lien or
jeopardy assessment is | ||
filed.
| ||
(d) (Blank). No recorder or registrar of titles of any | ||
county shall require
that the Department pay any costs or fees | ||
in connection with recordation of
any notice or other document | ||
filed by the Department under this Act at the
time such notice | ||
or other document is presented for recordation. The
recorder or | ||
registrar of each county, in order to receive payment for fees
| ||
or costs incurred by the Department, shall present the | ||
Department with
monthly statements indicating the amount of | ||
fees and costs incurred by the
Department and for which no | ||
payment has been received.
This amendatory Act of 1987 applies | ||
to all liens heretofore or hereafter filed.
| ||
(e) The taxpayer is liable for any the filing fees imposed | ||
fee incurred by the Department
for filing the lien in the State | ||
Tax Lien Registry and any the filing fees imposed fee incurred | ||
by the Department for to file the
release of that lien. The | ||
filing fees shall be paid to the Department in
addition to | ||
payment of the tax, penalty, and interest included in the | ||
amount of
the lien.
| ||
(Source: P.A. 92-826, eff. 1-1-03.)
|
(35 ILCS 5/1105) (from Ch. 120, par. 11-1105)
| ||
Sec. 1105. Release of Liens.
| ||
(a) In general.
Upon payment by the taxpayer to the | ||
Department in cash or by guaranteed
remittance of an amount | ||
representing the filing fees and charges for the lien
and the | ||
filing fees and charges for the release of that lien,
the | ||
Department shall release all or any portion of
the property | ||
subject to any lien provided for in this Act
and file that | ||
complete or partial release of lien in the State Tax Lien | ||
Registry with the recorder of the
county where that lien was | ||
filed
if it determines
that the release will not endanger or | ||
jeopardize the collection of the
amount secured thereby.
| ||
(b) Judicial determination. If on judicial review the final | ||
judgment
of the court is that the taxpayer does not owe some or | ||
all of the amount
secured by the lien against him, or that no | ||
jeopardy to the revenue exists,
the Department shall release | ||
its lien to the extent of such finding of
nonliability, or to | ||
the extent of such finding of no jeopardy to the
revenue.
The | ||
taxpayer shall, however, be liable for the filing fee imposed | ||
paid by the
Department to file the lien and the filing fee | ||
imposed to release required to file a release of
the lien. The | ||
filing fees shall be paid to the Department.
| ||
(c) Payment. The Department shall also release its jeopardy
| ||
assessment lien against the taxpayer whenever the tax and | ||
penalty covered
by such lien, plus any interest which may be | ||
due
and an amount representing the filing fee to file the lien |
and the filing fee
imposed to release required to file a | ||
release of that lien, are paid
by the taxpayer to the | ||
Department in cash or by guaranteed remittance.
| ||
(d) Certificate of release. The Department shall issue a | ||
certificate
of complete or partial release of the lien
upon | ||
payment by the taxpayer to the Department in cash or by | ||
guaranteed
remittance of an amount representing the filing fee | ||
imposed paid by the Department to
file the lien and the filing | ||
fee imposed to release required to file the release of that | ||
lien:
| ||
(1) to the extent that the fair market value of any | ||
property subject to
the lien exceeds the amount of the lien | ||
plus the amount of all prior liens
upon such property;
| ||
(2) to the extent that such lien shall become | ||
unenforceable;
| ||
(3) to the extent that the amount of such lien is paid | ||
by the person
whose property is subject to such lien, | ||
together with any interest and penalty
which
may become due | ||
under this Act between the date when the notice of lien is
| ||
filed and the date when the amount of such lien is paid;
| ||
(4) to the extent that there is furnished to the | ||
Department on a form to
be approved and with a surety or | ||
sureties satisfactory to the Department a
bond that is | ||
conditioned upon the payment of the amount of such lien,
| ||
together with any interest which may become due under this | ||
Act after the
notice of lien is filed, but before the |
amount thereof is fully paid;
| ||
(5) to the extent and under the circumstances specified | ||
in this Section.
| ||
A certificate of complete or partial release of any lien | ||
shall be held
conclusive that the lien upon the property | ||
covered by the certificate is
extinguished to the extent | ||
indicated by such certificate.
| ||
Such release of lien shall be issued to the person, or his | ||
agent, against
whom the lien was obtained and shall contain in | ||
legible letters a statement as
follows:
| ||
FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||
BE FILED IN THE STATE TAX LIEN REGISTRY WITH THE RECORDER | ||
OR THE REGISTRAR
| ||
OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||
(e) Filing. When a certificate of complete or partial | ||
release of lien
issued by the Department is filed in the State | ||
Tax Lien Registry, the Department presented for filing in the | ||
office of the
recorder or Registrar of Titles where a notice of | ||
lien or notice
of jeopardy assessment lien was filed:
| ||
(1) the recorder, in the case of nonregistered | ||
property, shall
permanently attach the certificate of | ||
release to the notice of lien or
notice of jeopardy | ||
assessment lien and shall enter the certificate of
release | ||
and the date in the "State Tax Lien Index" on the line | ||
where the
notice of lien or notice of jeopardy assessment | ||
lien is entered . ; and
|
(2) in the case of registered property, the Registrar | ||
of Titles shall
file and enter upon each folium of the | ||
register of titles affected thereby
a memorial of the | ||
certificate of release which memorial when so entered
shall | ||
act as a release pro tanto of any memorial of such notice | ||
of lien or
notice of jeopardy assessment lien previously | ||
filed and registered.
| ||
(Source: P.A. 92-826, eff. 1-1-03.)
| ||
Section 25-10. The Retailers' Occupation Tax Act is amended | ||
by changing Sections 5a, 5b, and 5c as follows:
| ||
(35 ILCS 120/5a) (from Ch. 120, par. 444a)
| ||
Sec. 5a.
The Department shall have a lien for the tax | ||
herein imposed or any
portion thereof, or for any penalty | ||
provided for in this Act, or for any
amount of interest which | ||
may be due as provided for in Section 5 of this
Act, upon all | ||
the real and personal property of any person to whom a
final | ||
assessment or revised final assessment has been issued as | ||
provided in
this Act, or whenever a return is filed without | ||
payment of the tax or
penalty shown therein to be due, | ||
including all such property of such
persons acquired after | ||
receipt of such assessment or filing of such return.
The | ||
taxpayer is liable for the filing fee imposed incurred by the | ||
Department for
filing the lien and the filing fee imposed | ||
incurred by the Department to file the
release the of that |
lien. The filing fees shall be paid to the Department in
| ||
addition to payment of the tax, penalty, and interest included | ||
in the amount of
the lien.
| ||
However, where the lien arises because of the issuance of a | ||
final
assessment or revised final assessment by the Department, | ||
such lien shall
not attach and the notice hereinafter referred | ||
to in this Section shall not
be filed until all proceedings in | ||
court for review of such final assessment
or revised final | ||
assessment have terminated or the time for the taking
thereof | ||
has expired without such proceedings being instituted.
| ||
Upon the granting of a rehearing or departmental review | ||
pursuant to
Section 4 or Section 5 of this Act after a lien has | ||
attached, such lien
shall remain in full force except to the | ||
extent to which the final
assessment may be reduced by a | ||
revised final assessment following such
rehearing or review.
| ||
The lien created by the issuance of a final assessment | ||
shall terminate
unless a notice of lien is filed, as provided | ||
in Section 5b hereof,
within 3 years from the date all | ||
proceedings in court for the review of
such final assessment | ||
have terminated or the time for the taking thereof
has expired | ||
without such proceedings being instituted, or (in the case of a
| ||
revised final assessment issued pursuant to a rehearing or | ||
departmental
review) within 3 years from the date all | ||
proceedings in court for the
review of such revised final | ||
assessment have terminated or the time for the
taking thereof | ||
has expired without such proceedings being instituted; and
|
where the lien results from the filing of a return without | ||
payment of the
tax or penalty shown therein to be due, the lien | ||
shall terminate unless a
notice of lien is filed, as provided | ||
in Section 5b hereof, within 3 years
from the date when such | ||
return is filed with the Department: Provided that
the time | ||
limitation period on the Department's right to file a notice of
| ||
lien shall not run (1) during any period of time in which the | ||
order of any
court has the effect of enjoining or restraining | ||
the Department from filing
such notice of lien, or (2) during | ||
the term of a repayment plan that taxpayer has entered into | ||
with the Department, as long as taxpayer remains in compliance | ||
with the terms of the repayment plan.
| ||
If the Department finds that a taxpayer is about to depart | ||
from the
State, or to conceal himself or his property, or to do | ||
any other act
tending to prejudice or to render wholly or | ||
partly ineffectual proceedings
to collect such tax unless such | ||
proceedings are brought without delay, or
if the Department | ||
finds that the collection of the amount due from any
taxpayer | ||
will be jeopardized by delay, the Department shall give the
| ||
taxpayer notice of such findings and shall make demand for | ||
immediate return
and payment of such tax, whereupon such tax | ||
shall become immediately due
and payable. If the taxpayer, | ||
within 5 days after such notice (or within
such extension of | ||
time as the Department may grant), does not comply with
such | ||
notice or show to the Department that the findings in such | ||
notice are
erroneous, the Department may file a notice of |
jeopardy assessment lien in
the State Tax Lien Registry office | ||
of the recorder of the county in which any property of
the | ||
taxpayer may be located and shall notify the taxpayer of such | ||
filing.
Such jeopardy assessment lien shall have the same scope | ||
and effect as the
statutory lien hereinbefore provided for in | ||
this Section.
| ||
If the taxpayer believes that he does not owe some or all | ||
of the tax for
which the jeopardy assessment lien against him | ||
has been filed, or that no
jeopardy to the revenue in fact | ||
exists, he may protest within 20 days after
being notified by | ||
the Department of the filing of such jeopardy assessment
lien | ||
and request a hearing, whereupon the Department shall hold a | ||
hearing
in conformity with the provisions of this Act and, | ||
pursuant thereto, shall
notify the taxpayer of its findings as | ||
to whether or not such jeopardy
assessment lien will be | ||
released. If not, and if the taxpayer is aggrieved
by this | ||
decision, he may file an action for judicial review
of such | ||
final
determination of the Department in accordance with | ||
Section 12 of this Act
and the Administrative Review Law. | ||
On and after July 1, 2013, protests concerning matters that | ||
are subject to the jurisdiction of the Illinois Independent Tax | ||
Tribunal shall be filed with the Tribunal, and hearings on | ||
those matters shall be held before the Tribunal in accordance | ||
with the Illinois Independent Tax Tribunal Act of 2012. The | ||
Tribunal shall
notify the taxpayer of its findings as to | ||
whether or not such jeopardy
assessment lien will be released. |
If not, and if the taxpayer is aggrieved
by this decision, he | ||
may file an action for judicial review
of such final
| ||
determination of the Department in accordance with Section 12 | ||
of this Act
and the Illinois Independent Tax Tribunal Act of | ||
2012. | ||
With respect to protests filed with the Department prior to | ||
July 1, 2013 that would otherwise be subject to the | ||
jurisdiction of the Illinois Independent Tax Tribunal, the | ||
taxpayer may elect to be subject to the provisions of the | ||
Illinois Independent Tax Tribunal Act of 2012 at any time on or | ||
after July 1, 2013, but not later than 30 days after the date | ||
on which the protest was filed. If made, the election shall be | ||
irrevocable.
| ||
If, pursuant to such hearing (or after an independent | ||
determination of
the facts by the Department without a | ||
hearing), the Department or the Tribunal determines
that some | ||
or all of the tax covered by the jeopardy assessment lien is | ||
not
owed by the taxpayer, or that no jeopardy to the revenue | ||
exists, or if on
judicial review the final judgment of the | ||
court is that the taxpayer does
not owe some or all of the tax | ||
covered by the jeopardy assessment lien
against him, or that no | ||
jeopardy to the revenue exists, the Department
shall release | ||
its jeopardy assessment lien to the extent of such finding of
| ||
nonliability for the tax, or to the extent of such finding of | ||
no jeopardy
to the revenue.
| ||
The Department shall also release its jeopardy assessment |
lien against
the taxpayer whenever the tax and penalty covered | ||
by such lien, plus any
interest which may be due, are paid
and | ||
the taxpayer has paid the Department in cash or by guaranteed | ||
remittance
an amount representing the filing fee for the lien | ||
and the filing fee for the
release of that lien. The Department | ||
shall file that release of lien in the State Tax Lien Registry | ||
with the
recorder of the county where that lien was filed .
| ||
Nothing in this Section shall be construed to give the | ||
Department a
preference over the rights of any bona fide | ||
purchaser, holder of a
security interest, mechanics | ||
lienholder, mortgagee, or judgment lien
creditor arising prior | ||
to the filing of a regular
notice of lien or a notice of | ||
jeopardy assessment lien in the State Tax Lien Registry office | ||
of the
recorder in the county in which the property subject to | ||
the lien
is located : Provided, however, that the word "bona | ||
fide", as used in this
Section shall not include any mortgage | ||
of real or personal property or any
other credit transaction | ||
that results in the mortgagee or the holder of the
security | ||
acting as trustee for unsecured creditors of the taxpayer
| ||
mentioned in the notice of lien who executed such chattel or | ||
real property
mortgage or the document evidencing such credit | ||
transaction. Such lien
shall be inferior to the lien of general | ||
taxes, special assessments and
special taxes heretofore or | ||
hereafter levied by any political subdivision
of this State.
| ||
In case title to land to be affected by the notice of lien | ||
or notice of
jeopardy assessment lien is registered under the |
provisions of "An Act
concerning land titles", approved May 1, | ||
1897, as amended, such notice
shall also be filed in the State | ||
Tax Lien Registry office of the Registrar of Titles of the | ||
county
within which the property subject to the lien is | ||
situated and shall be
entered upon the register of titles as a | ||
memorial or charge upon each
folium of the register of titles | ||
affected by such notice , and the
Department shall not have a | ||
preference over the rights of any bona fide
purchaser, | ||
mortgagee, judgment creditor or other lien holder arising prior
| ||
to the registration of such notice: Provided, however, that the | ||
word "bona
fide" shall not include any mortgage of real or | ||
personal property or any
other credit transaction that results | ||
in the mortgagee or the holder of the
security acting as | ||
trustee for unsecured creditors of the taxpayer
mentioned in | ||
the notice of lien who executed such chattel or real property
| ||
mortgage or the document evidencing such credit transaction.
| ||
Such regular lien or jeopardy assessment lien shall not be | ||
effective
against any purchaser with respect to any item in a | ||
retailer's stock in
trade purchased from the retailer in the | ||
usual course of such retailer's
business.
| ||
(Source: P.A. 97-1129, eff. 8-28-12; 98-446, eff. 8-16-13.)
| ||
(35 ILCS 120/5b) (from Ch. 120, par. 444b)
| ||
Sec. 5b. State Tax Lien Index. The Department of Revenue | ||
shall maintain a State Tax Lien Index of all tax liens filed in | ||
the State Tax Lien Registry as provided for by the State Tax |
Lien Registration Act. The recorder of each county shall | ||
procure a file labeled
"State Tax Lien Notices" and an index | ||
book labeled "State Tax Lien Index".
When notice of any lien or | ||
jeopardy assessment lien is presented to him for
filing, he | ||
shall file it in numerical order in the file and shall enter it
| ||
alphabetically in the index. The entry shall show the name and | ||
last known
business address of the person named in the notice, | ||
the serial number of
the notice, the date and hour of filing, | ||
whether it is a regular lien or a
jeopardy assessment lien, and | ||
the amount of tax and penalty due and unpaid,
plus the amount | ||
of interest due under Section 5 of this Act at the time
when | ||
the notice of lien or jeopardy assessment lien is filed.
| ||
No recorder or registrar of titles of any county shall | ||
require that the
Department pay any costs or fees in connection | ||
with recordation of any
notice or other document filed by the | ||
Department under this Act at the time
such notice or other | ||
document is presented for recordation. The recorder or
| ||
registrar of each county, in order to receive payment for fees | ||
or costs
incurred by the Department, shall present the | ||
Department with monthly
statements indicating the amount of | ||
fees and costs incurred by the
Department and for which no | ||
payment has been received.
| ||
A notice of lien may be filed after the issuance of a | ||
revised final
assessment pursuant to a rehearing or | ||
departmental review under Section 4
or Section 5 of this Act.
| ||
When the lien obtained pursuant to this Act has been |
satisfied
and the taxpayer has paid the Department in cash or | ||
by guaranteed remittance
an amount representing the filing fee | ||
for the lien and the filing fee for the
release of that lien,
| ||
the Department shall issue a release
of lien and file that | ||
release of lien in the State Tax Lien Registry with the | ||
recorder of the county where
that lien was filed . The release | ||
of lien shall contain in legible letters a
statement as
| ||
follows:
| ||
FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||
BE FILED IN THE STATE TAX LIEN REGISTRY WITH THE RECORDER | ||
OR THE REGISTRAR
| ||
OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||
When a certificate of complete or partial release of lien | ||
issued by the
Department is filed in the State Tax Lien | ||
Registry, the Department of Revenue presented for filing in the | ||
office of the recorder
or Registrar of Titles where a notice of | ||
lien or notice of jeopardy
assessment lien was filed, the | ||
recorder, in the case of nonregistered
property, shall | ||
permanently attach the certificate of release to the notice
of | ||
lien or notice of jeopardy assessment lien and shall enter the
| ||
certificate of release and the date in the "State Tax Lien | ||
Index" on the
line where the notice of lien or notice of | ||
jeopardy assessment lien is
entered.
| ||
In the case of registered property, the Registrar of Titles | ||
shall file
and enter upon each folium of the register of titles | ||
affected thereby a
memorial of the certificate of release which |
memorial when so entered shall
act as a release pro tanto of | ||
any memorial of such notice of lien or notice
of jeopardy | ||
assessment lien previously filed and registered.
| ||
(Source: P.A. 92-826, eff. 1-1-03.)
| ||
(35 ILCS 120/5c) (from Ch. 120, par. 444c)
| ||
Sec. 5c.
Upon payment by the taxpayer to the Department in | ||
cash or by guaranteed
remittance of an amount representing the | ||
filing fee for the lien and the filing
fee for the release of | ||
that lien,
the Department shall issue a certificate of complete | ||
or partial
release of the lien
and file that complete or | ||
partial release of lien in the State Tax Lien Registry with the | ||
recorder of the
county where the lien was filed :
| ||
(a) to the extent that the fair market value of any | ||
property subject to
the lien exceeds the amount of the lien | ||
plus the amount of all prior liens
upon such property;
| ||
(b) to the extent that such lien shall become | ||
unenforceable;
| ||
(c) to the extent that the amount of such lien is paid | ||
by the retailer
whose property is subject to such lien, | ||
together with any interest which
may become due under | ||
Section 5 of this Act between the date when the notice
of | ||
lien is filed and the date when the amount of such lien is | ||
paid;
| ||
(d) to the extent that there is furnished to the | ||
Department on a form to
be approved and with a surety or |
sureties satisfactory to the Department a
bond that is | ||
conditioned upon the payment of the amount of such lien,
| ||
together with any interest which may become due under | ||
Section 5 of this
Act after the notice of lien is filed, | ||
but before the amount thereof is
fully paid;
| ||
(e) to the extent and under the circumstances specified | ||
in Section 5a of
this Act in the case of jeopardy | ||
assessment liens;
| ||
(f) to the extent to which an assessment is reduced | ||
pursuant to a
rehearing or departmental review under | ||
Section 4 or Section 5 of this
Act.
| ||
A certificate of complete or partial release of any lien | ||
shall be held
conclusive that the lien upon the property | ||
covered by the certificate is
extinguished to the extent | ||
indicated by such certificate.
| ||
(Source: P.A. 92-826, eff. 1-1-03.)
| ||
Section 25-15. The Cannabis and Controlled Substances Tax | ||
Act is amended by changing Sections 16, 17, and 19 as follows:
| ||
(35 ILCS 520/16) (from Ch. 120, par. 2166)
| ||
Sec. 16. All assessments are Jeopardy Assessments - lien.
| ||
(a) Assessment. An assessment for a dealer not possessing | ||
valid stamps
or other official indicia showing that the tax has | ||
been paid shall be
considered a jeopardy assessment or | ||
collection, as provided by Section 1102
of the Illinois Income |
Tax Act. The Department shall determine and assess
a tax and | ||
applicable penalties and interest according to the best | ||
judgment
and information available to the Department, which | ||
amount so fixed by the
Department shall be prima facie correct | ||
and shall be prima facie evidence
of the correctness of the | ||
amount of tax due, as shown in such determination.
When, | ||
according to the best judgment and information available to the
| ||
Department with regard to all real and personal property and | ||
rights to property
of the dealer, there is no reasonable | ||
expectation of collection of the amount
of tax and penalty to | ||
be assessed, the Department may issue an assessment under
this | ||
Section for the amount of tax without penalty.
| ||
(b) Filing of Lien. Upon issuance of a jeopardy assessment | ||
as
provided by subsection (a) of this Section, the Department | ||
may file a
notice of jeopardy assessment lien in the State Tax | ||
Lien Registry office of the recorder of the
county in which any | ||
property of the taxpayer may be located and shall
notify the | ||
taxpayer of such filing.
| ||
(c) Protest. If the taxpayer believes that he does not owe | ||
some or all
of the amount for which the jeopardy assessment | ||
lien against him has been
filed, he may protest within 20 days | ||
after being notified by the
Department of the filing of such | ||
jeopardy assessment lien and request a
hearing, whereupon the | ||
Department shall hold a hearing in conformity with
the | ||
provisions of Section 908 of the Illinois Income Tax Act and, | ||
pursuant
thereto, shall notify the taxpayer of its decision as |
to whether or not such
jeopardy assessment lien will be | ||
released.
| ||
After the expiration of the period within which the person | ||
assessed may
file an action for judicial review
without such | ||
action being filed, a certified copy of the final assessment
or | ||
revised final assessment of the Department may be filed with | ||
the Circuit
Court of the county in which the dealer resides, or | ||
of Cook County in the
case of a dealer who does not reside in | ||
this State, or in the county where
the violation of this Act | ||
took place.
The certified copy of the final assessment or | ||
revised final assessment
shall be accompanied by a | ||
certification which recites facts that are
sufficient to show | ||
that the Department complied with the jurisdictional
| ||
requirements of the Act in arriving at its final assessment or | ||
its revised
final assessment and that the dealer had this | ||
opportunity for an
administrative hearing and for judicial | ||
review, whether he availed himself
or herself of either or both | ||
of these opportunities or not. If the court
is satisfied that | ||
the Department complied with the
jurisdictional requirements | ||
of the Act in arriving at its final assessment or
its revised | ||
final assessment and that the taxpayer had his opportunity for
| ||
an administrative hearing and for judicial review, whether he | ||
availed
himself of either or both of these opportunities or | ||
not, the court shall
render judgment in favor of the Department | ||
and against the taxpayer for
the amount shown to be due by the | ||
final assessment or the revised final
assessment, plus any |
interest which may be due, and such judgment shall be
entered | ||
in the judgment docket of the court. Such judgment shall bear | ||
the
same rate of interest and shall have the same effect as | ||
other judgments.
The judgment may be enforced, and all laws | ||
applicable to sales for the
enforcement of a judgment shall be | ||
applicable to sales made under such
judgments. The Department | ||
shall file the certified copy of its assessment,
as herein | ||
provided, with the Circuit Court within 2 years after such
| ||
assessment becomes final except when the taxpayer consents in | ||
writing to an
extension of such filing period, and except that | ||
the time limitation period
on the Department's right to file | ||
the certified copy of its assessment with
the Circuit Court | ||
shall not run during any period of time in which the
order of | ||
any court has the effect of enjoining or restraining the
| ||
Department from filing such certified copy of its assessment | ||
with the
Circuit Court.
| ||
If, when the cause of action for a proceeding in court | ||
accrues against a
person, he or she is out of the State, the | ||
action may be commenced within
the times herein limited, after | ||
his or her coming into or returning to the
State; and if, after | ||
the cause of action accrues, he or she departs from
and remains | ||
out of the State, the time of his or her absence from the
| ||
State, the time of his or her absence is no part of the time | ||
limited for
the commencement of the action; but the foregoing | ||
provisions concerning
absence from the State shall not apply to | ||
any case in which, at the time
the cause of action accrues, the |
party against whom the cause of action
accrues is not a | ||
resident of this State. The time within which a court
action is | ||
to be commenced by the Department hereunder shall
not run from | ||
the
date the taxpayer files a petition in bankruptcy under the | ||
Federal
Bankruptcy Act until 30 days after notice of | ||
termination or expiration of
the automatic stay imposed by the | ||
Federal Bankruptcy Act.
| ||
No claim shall be filed against the estate of any deceased | ||
person or any
person under legal disability for any tax or | ||
penalty or part of either, or
interest, except in the manner | ||
prescribed and within the time limited by the
Probate Act of | ||
1975, as amended.
| ||
The collection of tax or penalty or interest by any means | ||
provided for
herein shall not be a bar to any prosecution under | ||
this Act.
| ||
In addition to any penalty provided for in this Act, any | ||
amount of tax
which is not paid when due shall bear interest at | ||
the rate determined in
accordance with the Uniform Penalty and | ||
Interest Act, per month or fraction
thereof from the date when | ||
such tax becomes past due until such tax is paid
or a judgment | ||
therefor is obtained by the Department. If the time for
making | ||
or completing an audit of a taxpayer's books and records is | ||
extended
with the taxpayer's consent, at the request of and for | ||
the convenience of
the Department, beyond the date on which the | ||
statute of limitations upon
the issuance of a notice of tax | ||
liability by the Department otherwise run,
no interest shall |
accrue during the period of such extension. Interest
shall be | ||
collected in the same manner and as part of the tax.
| ||
If the Department determines that an amount of tax or | ||
penalty or interest
was incorrectly assessed, whether as the | ||
result of a mistake of fact or an
error of law, the Department | ||
shall waive the amount of tax or penalty or
interest that | ||
accrued due to the incorrect assessment.
| ||
(Source: P.A. 97-1129, eff. 8-28-12.)
| ||
(35 ILCS 520/17) (from Ch. 120, par. 2167)
| ||
Sec. 17. Filing and Priority of Liens. (a) Filing in the | ||
State Tax Lien Registry with Recorder . Nothing in this Act | ||
shall be construed
to give the Department a preference over the | ||
rights of any bona fide
purchaser, holder of a security | ||
interest, mechanics lienholder,
mortgagee, or judgment lien | ||
creditor arising prior
to the filing of a regular notice of | ||
lien or a notice of jeopardy
assessment lien in the State Tax | ||
Lien Registry office of the recorder in the county in
which the | ||
property subject to the lien is located . For purposes of this
| ||
section, the term "bona fide," shall not include any mortgage | ||
of real or
personal property or any other credit transaction | ||
that results in the
mortgagee or the holder of the security | ||
acting as trustee for unsecured
creditors of the taxpayer | ||
mentioned in the notice of lien who executed such
chattel or | ||
real property mortgage or the document evidencing such credit
| ||
transaction. Such lien shall be inferior to the lien of general |
taxes,
special assessments and special taxes heretofore or | ||
hereafter levied by any
political subdivision of this State.
| ||
(b) Filing with Registrar. In case title to land to be | ||
affected by
the notice of lien or notice of jeopardy assessment | ||
lien is registered
under the provisions of "An Act concerning | ||
land titles," approved May 1,
1897, as amended, such notice | ||
shall also be filed in the State Tax Lien Registry office of | ||
the
Registrar of Titles of the county within which the property | ||
subject to the
lien is situated and shall be entered upon the | ||
register of titles as a
memorial of charge upon each folium of | ||
the register of titles affected by
such notice , and the | ||
Department shall not have a preference over the rights
of any | ||
bona fide purchaser, mortgagee, judgment creditor or other lien
| ||
holder arising prior to the registration of such notice.
| ||
(c) (Blank). No recorder or registrar of titles of any | ||
county shall require
that the Department pay any costs or fees | ||
in connection with recordation of
any notice or other document | ||
filed by the Department under this Act at the
time such notice | ||
or other document is presented for recordation.
| ||
(Source: P.A. 86-905.)
| ||
(35 ILCS 520/19) (from Ch. 120, par. 2169)
| ||
Sec. 19. Release of Liens.
| ||
(a) In general. The Department shall release all or any | ||
portion of
the property subject to any lien provided for in | ||
this Act if it determines
that the release will not endanger or |
jeopardize the collection of the
amount secured thereby.
The | ||
Department shall release its lien on property which is the | ||
subject of
forfeiture proceedings under the Narcotics Profit | ||
Forfeiture Act, the Criminal
Code of 2012, or the Drug Asset | ||
Forfeiture Procedure Act until all forfeiture
proceedings are | ||
concluded. Property forfeited shall not be subject to
a lien | ||
under this Act.
| ||
(b) Judicial determination. If on judicial review the final | ||
judgment
of the court is that the taxpayer does not owe some or | ||
all of the amount
secured by the lien against him, or that no | ||
jeopardy to the revenue exists,
the Department shall release | ||
its lien to the extent of such finding of
nonliability, or to | ||
the extent of such finding of no jeopardy to the
revenue.
| ||
(c) Payment. The Department shall also release its jeopardy
| ||
assessment lien against the taxpayer whenever the tax and | ||
penalty covered
by such lien, plus any interest which may be | ||
due, are paid.
| ||
(d) Certificate of release. The Department shall issue a | ||
certificate
of complete or partial release of the lien:
| ||
(1) To the extent that the fair market value of any | ||
property subject to
the lien exceeds the amount of the lien | ||
plus the amount of all prior liens
upon such property;
| ||
(2) To the extent that such lien shall become | ||
unenforceable;
| ||
(3) To the extent that the amount of such lien is paid | ||
by the person
whose property is subject to such lien, |
together with any interest and penalty
which
may become due | ||
under this Act between the date when the notice of lien is
| ||
filed and the date when the amount of such lien is paid;
| ||
(4) To the extent and under the circumstances specified | ||
in this Section.
A certificate of complete or partial | ||
release of any lien shall be held
conclusive that the lien | ||
upon the property covered by the certificate is
| ||
extinguished to the extent indicated by such certificate.
| ||
Such release of lien shall be issued to the person, or his | ||
agent, against
whom the lien was obtained and shall contain in | ||
legible letters a statement as
follows:
| ||
FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| ||
BE FILED IN THE STATE TAX LIEN REGISTRY WITH THE RECORDER | ||
OR THE REGISTRAR
| ||
OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED .
| ||
(e) Filing. When a certificate of complete or partial | ||
release of lien
issued by the Department is filed in the State | ||
Tax Lien Registry, the Department presented for filing in the | ||
office of the
recorder or Registrar of Titles where a notice of | ||
lien or notice
of jeopardy assessment lien was filed:
| ||
(1) The recorder, in the case of nonregistered | ||
property, shall
permanently attach the certificate of | ||
release to the notice of lien or
notice of jeopardy | ||
assessment lien and shall enter the certificate of
release | ||
and the date in the "State Tax Lien Index" on the line | ||
where the
notice of lien or notice of jeopardy assessment |
lien is entered . ; and
| ||
(2) In the case of registered property, the Registrar | ||
of Titles shall
file and enter upon each folium of the | ||
register of titles affected thereby
a memorial of the | ||
certificate of release which memorial when so entered
shall | ||
act as a release pro tanto of any memorial of such notice | ||
of lien or
notice of jeopardy assessment lien previously | ||
filed and registered.
| ||
(Source: P.A. 97-1150, eff. 1-25-13 .)
| ||
Section 25-20. The Illinois Municipal Code is amended by | ||
changing Section 8-3-15 as follows:
| ||
(65 ILCS 5/8-3-15) (from Ch. 24, par. 8-3-15)
| ||
Sec. 8-3-15.
The corporate authorities of each | ||
municipality shall have
all powers necessary to enforce the | ||
collection of any tax imposed and collected
by such | ||
municipality, whether such tax was imposed pursuant to its home
| ||
rule powers or statutory authorization, including but not | ||
limited to subpoena
power and the power to create and enforce | ||
liens. No such lien shall affect
the rights of bona fide | ||
purchasers, mortgagees, judgment creditors or other
| ||
lienholders who acquire their interests in such property prior | ||
to the time
a notice of such lien is placed on record in the | ||
office of the recorder or
the registrar of titles of the county | ||
in which the property is located.
However, nothing in this |
Section shall permit a municipality to place a
lien upon | ||
property not located or found within its corporate boundaries. | ||
A
municipality creating a lien may provide that the procedures | ||
for its notice
and enforcement shall be the same as that | ||
provided in the Retailers'
Occupation Tax Act, as that Act | ||
existed prior to the adoption of the State Tax Lien | ||
Registration Act now or hereafter amended , for State tax liens, | ||
and
any recorder or registrar of titles with whom a notice of | ||
such lien is
filed shall treat such lien as a State tax lien | ||
for recording purposes.
| ||
(Source: P.A. 86-680.)
| ||
Section 25-25. The Title Insurance Act is amended by | ||
changing Section 22 as follows:
| ||
(215 ILCS 155/22) (from Ch. 73, par. 1422)
| ||
Sec. 22. Tax indemnity; notice.
A corporation authorized to | ||
do business under this Act
shall notify the Director of Revenue | ||
of the State
of Illinois, by notice directed to his office in | ||
the City of Chicago, of
each trust account or similar account | ||
established which relates to title
exceptions due to a judgment | ||
lien or any other lien arising
under any tax Act administered | ||
by the Illinois Department of Revenue, when
notice of such lien | ||
has been filed with the registrar of titles or
recorder or in | ||
the State Tax Lien Registry , as the case may be, in the manner | ||
prescribed by law.
Such notice shall contain the name, address, |
and tax
identification number of the debtor, the permanent real
| ||
estate index numbers, if any, and the address and
legal | ||
description of the property, the type of lien claimed by the
| ||
Department and identification of any trust fund or similar | ||
account held by
such corporation or any agent thereof relating | ||
to such lien. Any trust
fund or similar account established by | ||
such corporation or agent relating
to any such lien shall | ||
include provisions requiring such corporation or
agent to apply | ||
such fund in satisfaction or release of such lien upon
written | ||
demand therefor by the Department of Revenue.
| ||
(Source: P.A. 94-893, eff. 6-20-06.)
| ||
ARTICLE 30. GASOHOL; ETHANOL FUEL | ||
Section 30-5. The Use Tax Act is amended by changing | ||
Section 3-10 as follows:
| ||
(35 ILCS 105/3-10)
| ||
Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||
Section, the tax
imposed by this Act is at the rate of 6.25% of | ||
either the selling price or the
fair market value, if any, of | ||
the tangible personal property. In all cases
where property | ||
functionally used or consumed is the same as the property that
| ||
was purchased at retail, then the tax is imposed on the selling | ||
price of the
property. In all cases where property functionally | ||
used or consumed is a
by-product or waste product that has been |
refined, manufactured, or produced
from property purchased at | ||
retail, then the tax is imposed on the lower of the
fair market | ||
value, if any, of the specific property so used in this State | ||
or on
the selling price of the property purchased at retail. | ||
For purposes of this
Section "fair market value" means the | ||
price at which property would change
hands between a willing | ||
buyer and a willing seller, neither being under any
compulsion | ||
to buy or sell and both having reasonable knowledge of the
| ||
relevant facts. The fair market value shall be established by | ||
Illinois sales by
the taxpayer of the same property as that | ||
functionally used or consumed, or if
there are no such sales by | ||
the taxpayer, then comparable sales or purchases of
property of | ||
like kind and character in Illinois.
| ||
Beginning on July 1, 2000 and through December 31, 2000, | ||
with respect to
motor fuel, as defined in Section 1.1 of the | ||
Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||
the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||
Beginning on August 6, 2010 through August 15, 2010, with | ||
respect to sales tax holiday items as defined in Section 3-6 of | ||
this Act, the
tax is imposed at the rate of 1.25%. | ||
With respect to gasohol, the tax imposed by this Act | ||
applies to (i) 70%
of the proceeds of sales made on or after | ||
January 1, 1990, and before
July 1, 2003, (ii) 80% of the | ||
proceeds of sales made
on or after July 1, 2003 and on or | ||
before July 1, 2017 December 31, 2018 , and (iii) 100% of the | ||
proceeds of sales made
thereafter.
If, at any time, however, |
the tax under this Act on sales of gasohol is
imposed at the
| ||
rate of 1.25%, then the tax imposed by this Act applies to 100% | ||
of the proceeds
of sales of gasohol made during that time.
| ||
With respect to majority blended ethanol fuel, the tax | ||
imposed by this Act
does
not apply
to the proceeds of sales | ||
made on or after July 1, 2003 and on or before
December 31, | ||
2023 December
31, 2018 but applies to 100% of the proceeds of | ||
sales made thereafter.
| ||
With respect to biodiesel blends with no less than 1% and | ||
no more than 10%
biodiesel, the tax imposed by this Act applies | ||
to (i) 80% of the
proceeds of sales made on or after July 1, | ||
2003 and on or before December 31, 2018
and (ii) 100% of the | ||
proceeds of sales made
thereafter.
If, at any time, however, | ||
the tax under this Act on sales of biodiesel blends
with no | ||
less than 1% and no more than 10% biodiesel
is imposed at the | ||
rate of
1.25%, then the
tax imposed by this Act applies to 100% | ||
of the proceeds of sales of biodiesel
blends with no less than | ||
1% and no more than 10% biodiesel
made
during that time.
| ||
With respect to 100% biodiesel and biodiesel blends with | ||
more than 10%
but no more than 99% biodiesel, the tax imposed | ||
by this Act does not apply to
the
proceeds of sales made on or | ||
after July 1, 2003 and on or before
December 31, 2023 December | ||
31, 2018 but applies to 100% of the proceeds of sales made
| ||
thereafter.
| ||
With respect to food for human consumption that is to be | ||
consumed off the
premises where it is sold (other than |
alcoholic beverages, soft drinks, and
food that has been | ||
prepared for immediate consumption) and prescription and
| ||
nonprescription medicines, drugs, medical appliances, products | ||
classified as Class III medical devices by the United States | ||
Food and Drug Administration that are used for cancer treatment | ||
pursuant to a prescription, as well as any accessories and | ||
components related to those devices, modifications to a motor
| ||
vehicle for the purpose of rendering it usable by a person with | ||
a disability, and
insulin, urine testing materials, syringes, | ||
and needles used by diabetics, for
human use, the tax is | ||
imposed at the rate of 1%. For the purposes of this
Section, | ||
until September 1, 2009: the term "soft drinks" means any | ||
complete, finished, ready-to-use,
non-alcoholic drink, whether | ||
carbonated or not, including but not limited to
soda water, | ||
cola, fruit juice, vegetable juice, carbonated water, and all | ||
other
preparations commonly known as soft drinks of whatever | ||
kind or description that
are contained in any closed or sealed | ||
bottle, can, carton, or container,
regardless of size; but | ||
"soft drinks" does not include coffee, tea, non-carbonated
| ||
water, infant formula, milk or milk products as defined in the | ||
Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||
containing 50% or more
natural fruit or vegetable juice.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "soft drinks" means non-alcoholic | ||
beverages that contain natural or artificial sweeteners. "Soft | ||
drinks" do not include beverages that contain milk or milk |
products, soy, rice or similar milk substitutes, or greater | ||
than 50% of vegetable or fruit juice by volume. | ||
Until August 1, 2009, and notwithstanding any other | ||
provisions of this
Act, "food for human consumption that is to | ||
be consumed off the premises where
it is sold" includes all | ||
food sold through a vending machine, except soft
drinks and | ||
food products that are dispensed hot from a vending machine,
| ||
regardless of the location of the vending machine. Beginning | ||
August 1, 2009, and notwithstanding any other provisions of | ||
this Act, "food for human consumption that is to be consumed | ||
off the premises where it is sold" includes all food sold | ||
through a vending machine, except soft drinks, candy, and food | ||
products that are dispensed hot from a vending machine, | ||
regardless of the location of the vending machine.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "food for human consumption that | ||
is to be consumed off the premises where
it is sold" does not | ||
include candy. For purposes of this Section, "candy" means a | ||
preparation of sugar, honey, or other natural or artificial | ||
sweeteners in combination with chocolate, fruits, nuts or other | ||
ingredients or flavorings in the form of bars, drops, or | ||
pieces. "Candy" does not include any preparation that contains | ||
flour or requires refrigeration. | ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "nonprescription medicines and | ||
drugs" does not include grooming and hygiene products. For |
purposes of this Section, "grooming and hygiene products" | ||
includes, but is not limited to, soaps and cleaning solutions, | ||
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||
lotions and screens, unless those products are available by | ||
prescription only, regardless of whether the products meet the | ||
definition of "over-the-counter-drugs". For the purposes of | ||
this paragraph, "over-the-counter-drug" means a drug for human | ||
use that contains a label that identifies the product as a drug | ||
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||
label includes: | ||
(A) A "Drug Facts" panel; or | ||
(B) A statement of the "active ingredient(s)" with a | ||
list of those ingredients contained in the compound, | ||
substance or preparation. | ||
Beginning on the effective date of this amendatory Act of | ||
the 98th General Assembly, "prescription and nonprescription | ||
medicines and drugs" includes medical cannabis purchased from a | ||
registered dispensing organization under the Compassionate Use | ||
of Medical Cannabis Pilot Program Act. | ||
If the property that is purchased at retail from a retailer | ||
is acquired
outside Illinois and used outside Illinois before | ||
being brought to Illinois
for use here and is taxable under | ||
this Act, the "selling price" on which
the tax is computed | ||
shall be reduced by an amount that represents a
reasonable | ||
allowance for depreciation for the period of prior out-of-state | ||
use.
|
(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15; | ||
99-858, eff. 8-19-16.)
| ||
Section 30-10. The Service Use Tax Act is amended by | ||
changing Section 3-10 as follows:
| ||
(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| ||
Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||
Section,
the tax imposed by this Act is at the rate of 6.25% of | ||
the selling
price of tangible personal property transferred as | ||
an incident to the sale
of service, but, for the purpose of | ||
computing this tax, in no event shall
the selling price be less | ||
than the cost price of the property to the
serviceman.
| ||
Beginning on July 1, 2000 and through December 31, 2000, | ||
with respect to
motor fuel, as defined in Section 1.1 of the | ||
Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||
the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||
With respect to gasohol, as defined in the Use Tax Act, the | ||
tax imposed
by this Act applies to (i) 70% of the selling price | ||
of property transferred
as an incident to the sale of service | ||
on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | ||
of the selling price of
property transferred as an incident to | ||
the sale of service on or after July
1, 2003 and on or before | ||
July 1, 2017 December 31, 2018 , and (iii)
100% of the selling | ||
price thereafter.
If, at any time, however, the tax under this | ||
Act on sales of gasohol, as
defined in
the Use Tax Act, is |
imposed at the rate of 1.25%, then the
tax imposed by this Act | ||
applies to 100% of the proceeds of sales of gasohol
made during | ||
that time.
| ||
With respect to majority blended ethanol fuel, as defined | ||
in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||
to the selling price of property transferred
as an incident to | ||
the sale of service on or after July 1, 2003 and on or before
| ||
December 31, 2023 December 31, 2018 but applies to 100% of the | ||
selling price thereafter.
| ||
With respect to biodiesel blends, as defined in the Use Tax | ||
Act, with no less
than 1% and no
more than 10% biodiesel, the | ||
tax imposed by this Act
applies to (i) 80% of the selling price | ||
of property transferred as an incident
to the sale of service | ||
on or after July 1, 2003 and on or before December 31, 2018
and | ||
(ii) 100% of the proceeds of the selling price
thereafter.
If, | ||
at any time, however, the tax under this Act on sales of | ||
biodiesel blends,
as
defined in the Use Tax Act, with no less | ||
than 1% and no more than 10% biodiesel
is imposed at the rate | ||
of 1.25%, then the
tax imposed by this Act applies to 100% of | ||
the proceeds of sales of biodiesel
blends with no less than 1% | ||
and no more than 10% biodiesel
made
during that time.
| ||
With respect to 100% biodiesel, as defined in the Use Tax | ||
Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||
more than 10% but no more than 99% biodiesel, the tax imposed | ||
by this Act
does not apply to the proceeds of the selling price | ||
of property transferred
as an incident to the sale of service |
on or after July 1, 2003 and on or before
December 31, 2023 | ||
December 31, 2018 but applies to 100% of the selling price | ||
thereafter.
| ||
At the election of any registered serviceman made for each | ||
fiscal year,
sales of service in which the aggregate annual | ||
cost price of tangible
personal property transferred as an | ||
incident to the sales of service is
less than 35%, or 75% in | ||
the case of servicemen transferring prescription
drugs or | ||
servicemen engaged in graphic arts production, of the aggregate
| ||
annual total gross receipts from all sales of service, the tax | ||
imposed by
this Act shall be based on the serviceman's cost | ||
price of the tangible
personal property transferred as an | ||
incident to the sale of those services.
| ||
The tax shall be imposed at the rate of 1% on food prepared | ||
for
immediate consumption and transferred incident to a sale of | ||
service subject
to this Act or the Service Occupation Tax Act | ||
by an entity licensed under
the Hospital Licensing Act, the | ||
Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD | ||
Act, the Specialized Mental Health Rehabilitation Act of 2013, | ||
or the
Child Care
Act of 1969. The tax shall
also be imposed at | ||
the rate of 1% on food for human consumption that is to be
| ||
consumed off the premises where it is sold (other than | ||
alcoholic beverages,
soft drinks, and food that has been | ||
prepared for immediate consumption and is
not otherwise | ||
included in this paragraph) and prescription and | ||
nonprescription
medicines, drugs, medical appliances, products |
classified as Class III medical devices by the United States | ||
Food and Drug Administration that are used for cancer treatment | ||
pursuant to a prescription, as well as any accessories and | ||
components related to those devices, modifications to a motor | ||
vehicle for the
purpose of rendering it usable by a person with | ||
a disability, and insulin, urine testing
materials,
syringes, | ||
and needles used by diabetics, for
human use. For the purposes | ||
of this Section, until September 1, 2009: the term "soft | ||
drinks" means any
complete, finished, ready-to-use, | ||
non-alcoholic drink, whether carbonated or
not, including but | ||
not limited to soda water, cola, fruit juice, vegetable
juice, | ||
carbonated water, and all other preparations commonly known as | ||
soft
drinks of whatever kind or description that are contained | ||
in any closed or
sealed bottle, can, carton, or container, | ||
regardless of size; but "soft drinks"
does not include coffee, | ||
tea, non-carbonated water, infant formula, milk or
milk | ||
products as defined in the Grade A Pasteurized Milk and Milk | ||
Products Act,
or drinks containing 50% or more natural fruit or | ||
vegetable juice.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "soft drinks" means non-alcoholic | ||
beverages that contain natural or artificial sweeteners. "Soft | ||
drinks" do not include beverages that contain milk or milk | ||
products, soy, rice or similar milk substitutes, or greater | ||
than 50% of vegetable or fruit juice by volume. | ||
Until August 1, 2009, and notwithstanding any other |
provisions of this Act, "food for human
consumption that is to | ||
be consumed off the premises where it is sold" includes
all | ||
food sold through a vending machine, except soft drinks and | ||
food products
that are dispensed hot from a vending machine, | ||
regardless of the location of
the vending machine. Beginning | ||
August 1, 2009, and notwithstanding any other provisions of | ||
this Act, "food for human consumption that is to be consumed | ||
off the premises where it is sold" includes all food sold | ||
through a vending machine, except soft drinks, candy, and food | ||
products that are dispensed hot from a vending machine, | ||
regardless of the location of the vending machine.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "food for human consumption that | ||
is to be consumed off the premises where
it is sold" does not | ||
include candy. For purposes of this Section, "candy" means a | ||
preparation of sugar, honey, or other natural or artificial | ||
sweeteners in combination with chocolate, fruits, nuts or other | ||
ingredients or flavorings in the form of bars, drops, or | ||
pieces. "Candy" does not include any preparation that contains | ||
flour or requires refrigeration. | ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "nonprescription medicines and | ||
drugs" does not include grooming and hygiene products. For | ||
purposes of this Section, "grooming and hygiene products" | ||
includes, but is not limited to, soaps and cleaning solutions, | ||
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
lotions and screens, unless those products are available by | ||
prescription only, regardless of whether the products meet the | ||
definition of "over-the-counter-drugs". For the purposes of | ||
this paragraph, "over-the-counter-drug" means a drug for human | ||
use that contains a label that identifies the product as a drug | ||
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||
label includes: | ||
(A) A "Drug Facts" panel; or | ||
(B) A statement of the "active ingredient(s)" with a | ||
list of those ingredients contained in the compound, | ||
substance or preparation. | ||
Beginning on January 1, 2014 (the effective date of Public | ||
Act 98-122), "prescription and nonprescription medicines and | ||
drugs" includes medical cannabis purchased from a registered | ||
dispensing organization under the Compassionate Use of Medical | ||
Cannabis Pilot Program Act. | ||
If the property that is acquired from a serviceman is | ||
acquired outside
Illinois and used outside Illinois before | ||
being brought to Illinois for use
here and is taxable under | ||
this Act, the "selling price" on which the tax
is computed | ||
shall be reduced by an amount that represents a reasonable
| ||
allowance for depreciation for the period of prior out-of-state | ||
use.
| ||
(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; | ||
98-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff. | ||
7-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.) |
Section 30-15. The Service Occupation Tax Act is amended by | ||
changing Section 3-10 as follows:
| ||
(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| ||
Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||
Section,
the tax imposed by this Act is at the rate of 6.25% of | ||
the "selling price",
as defined in Section 2 of the Service Use | ||
Tax Act, of the tangible
personal property. For the purpose of | ||
computing this tax, in no event
shall the "selling price" be | ||
less than the cost price to the serviceman of
the tangible | ||
personal property transferred. The selling price of each item
| ||
of tangible personal property transferred as an incident of a | ||
sale of
service may be shown as a distinct and separate item on | ||
the serviceman's
billing to the service customer. If the | ||
selling price is not so shown, the
selling price of the | ||
tangible personal property is deemed to be 50% of the
| ||
serviceman's entire billing to the service customer. When, | ||
however, a
serviceman contracts to design, develop, and produce | ||
special order machinery or
equipment, the tax imposed by this | ||
Act shall be based on the serviceman's
cost price of the | ||
tangible personal property transferred incident to the
| ||
completion of the contract.
| ||
Beginning on July 1, 2000 and through December 31, 2000, | ||
with respect to
motor fuel, as defined in Section 1.1 of the | ||
Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||
With respect to gasohol, as defined in the Use Tax Act, the | ||
tax imposed
by this Act shall apply to (i) 70% of the cost | ||
price of property
transferred as
an incident to the sale of | ||
service on or after January 1, 1990, and before
July 1, 2003, | ||
(ii) 80% of the selling price of property transferred as an
| ||
incident to the sale of service on or after July
1, 2003 and on | ||
or before July 1, 2017 December 31, 2018 , and (iii) 100%
of
the | ||
cost price
thereafter.
If, at any time, however, the tax under | ||
this Act on sales of gasohol, as
defined in
the Use Tax Act, is | ||
imposed at the rate of 1.25%, then the
tax imposed by this Act | ||
applies to 100% of the proceeds of sales of gasohol
made during | ||
that time.
| ||
With respect to majority blended ethanol fuel, as defined | ||
in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||
to the selling price of property transferred
as an incident to | ||
the sale of service on or after July 1, 2003 and on or before
| ||
December 31, 2023 December 31, 2018 but applies to 100% of the | ||
selling price thereafter.
| ||
With respect to biodiesel blends, as defined in the Use Tax | ||
Act, with no less
than 1% and no
more than 10% biodiesel, the | ||
tax imposed by this Act
applies to (i) 80% of the selling price | ||
of property transferred as an incident
to the sale of service | ||
on or after July 1, 2003 and on or before December 31, 2018
and | ||
(ii) 100% of the proceeds of the selling price
thereafter.
If, | ||
at any time, however, the tax under this Act on sales of |
biodiesel blends,
as
defined in the Use Tax Act, with no less | ||
than 1% and no more than 10% biodiesel
is imposed at the rate | ||
of 1.25%, then the
tax imposed by this Act applies to 100% of | ||
the proceeds of sales of biodiesel
blends with no less than 1% | ||
and no more than 10% biodiesel
made
during that time.
| ||
With respect to 100% biodiesel, as defined in the Use Tax | ||
Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||
more than 10% but no more than 99% biodiesel material, the tax | ||
imposed by this
Act
does not apply to the proceeds of the | ||
selling price of property transferred
as an incident to the | ||
sale of service on or after July 1, 2003 and on or before
| ||
December 31, 2023 December 31, 2018 but applies to 100% of the | ||
selling price thereafter.
| ||
At the election of any registered serviceman made for each | ||
fiscal year,
sales of service in which the aggregate annual | ||
cost price of tangible
personal property transferred as an | ||
incident to the sales of service is
less than 35%, or 75% in | ||
the case of servicemen transferring prescription
drugs or | ||
servicemen engaged in graphic arts production, of the aggregate
| ||
annual total gross receipts from all sales of service, the tax | ||
imposed by
this Act shall be based on the serviceman's cost | ||
price of the tangible
personal property transferred incident to | ||
the sale of those services.
| ||
The tax shall be imposed at the rate of 1% on food prepared | ||
for
immediate consumption and transferred incident to a sale of | ||
service subject
to this Act or the Service Occupation Tax Act |
by an entity licensed under
the Hospital Licensing Act, the | ||
Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD | ||
Act, the Specialized Mental Health Rehabilitation Act of 2013, | ||
or the
Child Care Act of 1969. The tax shall
also be imposed at | ||
the rate of 1% on food for human consumption that is
to be | ||
consumed off the
premises where it is sold (other than | ||
alcoholic beverages, soft drinks, and
food that has been | ||
prepared for immediate consumption and is not
otherwise | ||
included in this paragraph) and prescription and
| ||
nonprescription medicines, drugs, medical appliances, products | ||
classified as Class III medical devices by the United States | ||
Food and Drug Administration that are used for cancer treatment | ||
pursuant to a prescription, as well as any accessories and | ||
components related to those devices, modifications to a motor
| ||
vehicle for the purpose of rendering it usable by a person with | ||
a disability, and
insulin, urine testing materials, syringes, | ||
and needles used by diabetics, for
human use. For the purposes | ||
of this Section, until September 1, 2009: the term "soft | ||
drinks" means any
complete, finished, ready-to-use, | ||
non-alcoholic drink, whether carbonated or
not, including but | ||
not limited to soda water, cola, fruit juice, vegetable
juice, | ||
carbonated water, and all other preparations commonly known as | ||
soft
drinks of whatever kind or description that are contained | ||
in any closed or
sealed can, carton, or container, regardless | ||
of size; but "soft drinks" does not
include coffee, tea, | ||
non-carbonated water, infant formula, milk or milk
products as |
defined in the Grade A Pasteurized Milk and Milk Products Act, | ||
or
drinks containing 50% or more natural fruit or vegetable | ||
juice.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "soft drinks" means non-alcoholic | ||
beverages that contain natural or artificial sweeteners. "Soft | ||
drinks" do not include beverages that contain milk or milk | ||
products, soy, rice or similar milk substitutes, or greater | ||
than 50% of vegetable or fruit juice by volume. | ||
Until August 1, 2009, and notwithstanding any other | ||
provisions of this Act, "food for human consumption
that is to | ||
be consumed off the premises where it is sold" includes all | ||
food
sold through a vending machine, except soft drinks and | ||
food products that are
dispensed hot from a vending machine, | ||
regardless of the location of the vending
machine. Beginning | ||
August 1, 2009, and notwithstanding any other provisions of | ||
this Act, "food for human consumption that is to be consumed | ||
off the premises where it is sold" includes all food sold | ||
through a vending machine, except soft drinks, candy, and food | ||
products that are dispensed hot from a vending machine, | ||
regardless of the location of the vending machine.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "food for human consumption that | ||
is to be consumed off the premises where
it is sold" does not | ||
include candy. For purposes of this Section, "candy" means a | ||
preparation of sugar, honey, or other natural or artificial |
sweeteners in combination with chocolate, fruits, nuts or other | ||
ingredients or flavorings in the form of bars, drops, or | ||
pieces. "Candy" does not include any preparation that contains | ||
flour or requires refrigeration. | ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "nonprescription medicines and | ||
drugs" does not include grooming and hygiene products. For | ||
purposes of this Section, "grooming and hygiene products" | ||
includes, but is not limited to, soaps and cleaning solutions, | ||
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||
lotions and screens, unless those products are available by | ||
prescription only, regardless of whether the products meet the | ||
definition of "over-the-counter-drugs". For the purposes of | ||
this paragraph, "over-the-counter-drug" means a drug for human | ||
use that contains a label that identifies the product as a drug | ||
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||
label includes: | ||
(A) A "Drug Facts" panel; or | ||
(B) A statement of the "active ingredient(s)" with a | ||
list of those ingredients contained in the compound, | ||
substance or preparation. | ||
Beginning on January 1, 2014 (the effective date of Public | ||
Act 98-122), "prescription and nonprescription medicines and | ||
drugs" includes medical cannabis purchased from a registered | ||
dispensing organization under the Compassionate Use of Medical | ||
Cannabis Pilot Program Act. |
(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; | ||
98-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff. | ||
7-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.) | ||
Section 30-20. The Retailers' Occupation Tax Act is amended | ||
by changing Section 2-10 as follows:
| ||
(35 ILCS 120/2-10)
| ||
Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||
Section,
the tax imposed by this Act is at the rate of 6.25% of | ||
gross receipts
from sales of tangible personal property made in | ||
the course of business.
| ||
Beginning on July 1, 2000 and through December 31, 2000, | ||
with respect to
motor fuel, as defined in Section 1.1 of the | ||
Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||
the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||
Beginning on August 6, 2010 through August 15, 2010, with | ||
respect to sales tax holiday items as defined in Section 2-8 of | ||
this Act, the
tax is imposed at the rate of 1.25%. | ||
Within 14 days after the effective date of this amendatory | ||
Act of the 91st
General Assembly, each retailer of motor fuel | ||
and gasohol shall cause the
following notice to be posted in a | ||
prominently visible place on each retail
dispensing device that | ||
is used to dispense motor
fuel or gasohol in the State of | ||
Illinois: "As of July 1, 2000, the State of
Illinois has | ||
eliminated the State's share of sales tax on motor fuel and
|
gasohol through December 31, 2000. The price on this pump | ||
should reflect the
elimination of the tax." The notice shall be | ||
printed in bold print on a sign
that is no smaller than 4 | ||
inches by 8 inches. The sign shall be clearly
visible to | ||
customers. Any retailer who fails to post or maintain a | ||
required
sign through December 31, 2000 is guilty of a petty | ||
offense for which the fine
shall be $500 per day per each | ||
retail premises where a violation occurs.
| ||
With respect to gasohol, as defined in the Use Tax Act, the | ||
tax imposed
by this Act applies to (i) 70% of the proceeds of | ||
sales made on or after
January 1, 1990, and before July 1, | ||
2003, (ii) 80% of the proceeds of
sales made on or after July | ||
1, 2003 and on or before July 1, 2017 December 31,
2018 , and | ||
(iii) 100% of the proceeds of sales
made thereafter.
If, at any | ||
time, however, the tax under this Act on sales of gasohol, as
| ||
defined in
the Use Tax Act, is imposed at the rate of 1.25%, | ||
then the
tax imposed by this Act applies to 100% of the | ||
proceeds of sales of gasohol
made during that time.
| ||
With respect to majority blended ethanol fuel, as defined | ||
in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||
to the proceeds of sales made on or after
July 1, 2003 and on or | ||
before December 31, 2023 December 31, 2018 but applies to 100% | ||
of the
proceeds of sales made thereafter.
| ||
With respect to biodiesel blends, as defined in the Use Tax | ||
Act, with no less
than 1% and no
more than 10% biodiesel, the | ||
tax imposed by this Act
applies to (i) 80% of the proceeds of |
sales made on or after July 1, 2003
and on or before December | ||
31, 2018 and (ii) 100% of the
proceeds of sales made | ||
thereafter.
If, at any time, however, the tax under this Act on | ||
sales of biodiesel blends,
as
defined in the Use Tax Act, with | ||
no less than 1% and no more than 10% biodiesel
is imposed at | ||
the rate of 1.25%, then the
tax imposed by this Act applies to | ||
100% of the proceeds of sales of biodiesel
blends with no less | ||
than 1% and no more than 10% biodiesel
made
during that time.
| ||
With respect to 100% biodiesel, as defined in the Use Tax | ||
Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||
more than 10% but no more than 99% biodiesel, the tax imposed | ||
by this Act
does not apply to the proceeds of sales made on or | ||
after July 1, 2003
and on or before December 31, 2023 December | ||
31, 2018 but applies to 100% of the
proceeds of sales made | ||
thereafter.
| ||
With respect to food for human consumption that is to be | ||
consumed off the
premises where it is sold (other than | ||
alcoholic beverages, soft drinks, and
food that has been | ||
prepared for immediate consumption) and prescription and
| ||
nonprescription medicines, drugs, medical appliances, products | ||
classified as Class III medical devices by the United States | ||
Food and Drug Administration that are used for cancer treatment | ||
pursuant to a prescription, as well as any accessories and | ||
components related to those devices, modifications to a motor
| ||
vehicle for the purpose of rendering it usable by a person with | ||
a disability, and
insulin, urine testing materials, syringes, |
and needles used by diabetics, for
human use, the tax is | ||
imposed at the rate of 1%. For the purposes of this
Section, | ||
until September 1, 2009: the term "soft drinks" means any | ||
complete, finished, ready-to-use,
non-alcoholic drink, whether | ||
carbonated or not, including but not limited to
soda water, | ||
cola, fruit juice, vegetable juice, carbonated water, and all | ||
other
preparations commonly known as soft drinks of whatever | ||
kind or description that
are contained in any closed or sealed | ||
bottle, can, carton, or container,
regardless of size; but | ||
"soft drinks" does not include coffee, tea, non-carbonated
| ||
water, infant formula, milk or milk products as defined in the | ||
Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||
containing 50% or more
natural fruit or vegetable juice.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "soft drinks" means non-alcoholic | ||
beverages that contain natural or artificial sweeteners. "Soft | ||
drinks" do not include beverages that contain milk or milk | ||
products, soy, rice or similar milk substitutes, or greater | ||
than 50% of vegetable or fruit juice by volume. | ||
Until August 1, 2009, and notwithstanding any other | ||
provisions of this
Act, "food for human consumption that is to | ||
be consumed off the premises where
it is sold" includes all | ||
food sold through a vending machine, except soft
drinks and | ||
food products that are dispensed hot from a vending machine,
| ||
regardless of the location of the vending machine. Beginning | ||
August 1, 2009, and notwithstanding any other provisions of |
this Act, "food for human consumption that is to be consumed | ||
off the premises where it is sold" includes all food sold | ||
through a vending machine, except soft drinks, candy, and food | ||
products that are dispensed hot from a vending machine, | ||
regardless of the location of the vending machine.
| ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "food for human consumption that | ||
is to be consumed off the premises where
it is sold" does not | ||
include candy. For purposes of this Section, "candy" means a | ||
preparation of sugar, honey, or other natural or artificial | ||
sweeteners in combination with chocolate, fruits, nuts or other | ||
ingredients or flavorings in the form of bars, drops, or | ||
pieces. "Candy" does not include any preparation that contains | ||
flour or requires refrigeration. | ||
Notwithstanding any other provisions of this
Act, | ||
beginning September 1, 2009, "nonprescription medicines and | ||
drugs" does not include grooming and hygiene products. For | ||
purposes of this Section, "grooming and hygiene products" | ||
includes, but is not limited to, soaps and cleaning solutions, | ||
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||
lotions and screens, unless those products are available by | ||
prescription only, regardless of whether the products meet the | ||
definition of "over-the-counter-drugs". For the purposes of | ||
this paragraph, "over-the-counter-drug" means a drug for human | ||
use that contains a label that identifies the product as a drug | ||
as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" |
label includes: | ||
(A) A "Drug Facts" panel; or | ||
(B) A statement of the "active ingredient(s)" with a | ||
list of those ingredients contained in the compound, | ||
substance or preparation.
| ||
Beginning on the effective date of this amendatory Act of | ||
the 98th General Assembly, "prescription and nonprescription | ||
medicines and drugs" includes medical cannabis purchased from a | ||
registered dispensing organization under the Compassionate Use | ||
of Medical Cannabis Pilot Program Act. | ||
(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15; | ||
99-858, eff. 8-19-16.)
| ||
ARTICLE 35. GRAPHIC ARTS | ||
Section 35-5. The Use Tax Act is amended by changing | ||
Sections 3-5 and 3-50 as follows:
| ||
(35 ILCS 105/3-5)
| ||
Sec. 3-5. Exemptions. Use of the following tangible | ||
personal property is exempt from the tax imposed by this Act:
| ||
(1) Personal property purchased from a corporation, | ||
society, association,
foundation, institution, or | ||
organization, other than a limited liability
company, that is | ||
organized and operated as a not-for-profit service enterprise
| ||
for the benefit of persons 65 years of age or older if the |
personal property was not purchased by the enterprise for the | ||
purpose of resale by the
enterprise.
| ||
(2) Personal property purchased by a not-for-profit | ||
Illinois county
fair association for use in conducting, | ||
operating, or promoting the
county fair.
| ||
(3) Personal property purchased by a not-for-profit
arts or | ||
cultural organization that establishes, by proof required by | ||
the
Department by
rule, that it has received an exemption under | ||
Section 501(c)(3) of the Internal
Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(4) Personal property purchased by a governmental body, by | ||
a
corporation, society, association, foundation, or | ||
institution organized and
operated exclusively for charitable, | ||
religious, or educational purposes, or
by a not-for-profit | ||
corporation, society, association, foundation,
institution, or | ||
organization that has no compensated officers or employees
and |
that is organized and operated primarily for the recreation of | ||
persons
55 years of age or older. A limited liability company | ||
may qualify for the
exemption under this paragraph only if the | ||
limited liability company is
organized and operated | ||
exclusively for educational purposes. On and after July
1, | ||
1987, however, no entity otherwise eligible for this exemption | ||
shall make
tax-free purchases unless it has an active exemption | ||
identification number
issued by the Department.
| ||
(5) Until July 1, 2003, a passenger car that is a | ||
replacement vehicle to
the extent that the
purchase price of | ||
the car is subject to the Replacement Vehicle Tax.
| ||
(6) Until July 1, 2003 and beginning again on September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and replacement
parts, both new and | ||
used, and including that manufactured on special order,
| ||
certified by the purchaser to be used primarily for graphic | ||
arts production,
and including machinery and equipment | ||
purchased for lease.
Equipment includes chemicals or chemicals | ||
acting as catalysts but only if
the
chemicals or chemicals | ||
acting as catalysts effect a direct and immediate change
upon a | ||
graphic arts product. Beginning on July 1, 2017, graphic arts | ||
machinery and equipment is included in the manufacturing and | ||
assembling machinery and equipment exemption under paragraph | ||
(18).
| ||
(7) Farm chemicals.
| ||
(8) Legal tender, currency, medallions, or gold or silver |
coinage issued by
the State of Illinois, the government of the | ||
United States of America, or the
government of any foreign | ||
country, and bullion.
| ||
(9) Personal property purchased from a teacher-sponsored | ||
student
organization affiliated with an elementary or | ||
secondary school located in
Illinois.
| ||
(10) A motor vehicle that is used for automobile renting, | ||
as defined in the
Automobile Renting Occupation and Use Tax | ||
Act.
| ||
(11) Farm machinery and equipment, both new and used,
| ||
including that manufactured on special order, certified by the | ||
purchaser
to be used primarily for production agriculture or | ||
State or federal
agricultural programs, including individual | ||
replacement parts for
the machinery and equipment, including | ||
machinery and equipment
purchased
for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but excluding other motor
vehicles required to be
registered | ||
under the Illinois Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (11).
Agricultural chemical tender tanks and dry | ||
boxes shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor |
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to, soil testing
sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and
activities such as, but not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (11) is exempt
from the | ||
provisions of
Section 3-90.
| ||
(12) Until June 30, 2013, fuel and petroleum products sold | ||
to or used by an air common
carrier, certified by the carrier | ||
to be used for consumption, shipment, or
storage in the conduct | ||
of its business as an air common carrier, for a
flight destined | ||
for or returning from a location or locations
outside the | ||
United States without regard to previous or subsequent domestic
| ||
stopovers.
| ||
Beginning July 1, 2013, fuel and petroleum products sold to |
or used by an air carrier, certified by the carrier to be used | ||
for consumption, shipment, or storage in the conduct of its | ||
business as an air common carrier, for a flight that (i) is | ||
engaged in foreign trade or is engaged in trade between the | ||
United States and any of its possessions and (ii) transports at | ||
least one individual or package for hire from the city of | ||
origination to the city of final destination on the same | ||
aircraft, without regard to a change in the flight number of | ||
that aircraft. | ||
(13) Proceeds of mandatory service charges separately
| ||
stated on customers' bills for the purchase and consumption of | ||
food and
beverages purchased at retail from a retailer, to the | ||
extent that the proceeds
of the service charge are in fact | ||
turned over as tips or as a substitute
for tips to the | ||
employees who participate directly in preparing, serving,
| ||
hosting or cleaning up the food or beverage function with | ||
respect to which
the service charge is imposed.
| ||
(14) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment,
including (i) rigs and parts of rigs, | ||
rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||
tubular goods,
including casing and drill strings, (iii) pumps | ||
and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||
individual replacement part for oil
field exploration, | ||
drilling, and production equipment, and (vi) machinery and
| ||
equipment purchased
for lease; but excluding motor vehicles | ||
required to be registered under the
Illinois Vehicle Code.
|
(15) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that
| ||
manufactured on special order, certified by the purchaser to be | ||
used
primarily for photoprocessing, and including
| ||
photoprocessing machinery and equipment purchased for lease.
| ||
(16) Coal and aggregate exploration, mining, off-highway | ||
hauling,
processing, maintenance, and reclamation equipment,
| ||
including replacement parts and equipment, and
including | ||
equipment purchased for lease, but excluding motor
vehicles | ||
required to be registered under the Illinois Vehicle Code. The | ||
changes made to this Section by Public Act 97-767 apply on and | ||
after July 1, 2003, but no claim for credit or refund is | ||
allowed on or after August 16, 2013 (the effective date of | ||
Public Act 98-456)
for such taxes paid during the period | ||
beginning July 1, 2003 and ending on August 16, 2013 (the | ||
effective date of Public Act 98-456).
| ||
(17) Until July 1, 2003, distillation machinery and | ||
equipment, sold as a
unit or kit,
assembled or installed by the | ||
retailer, certified by the user to be used
only for the | ||
production of ethyl alcohol that will be used for consumption
| ||
as motor fuel or as a component of motor fuel for the personal | ||
use of the
user, and not subject to sale or resale.
| ||
(18) Manufacturing and assembling machinery and equipment | ||
used
primarily in the process of manufacturing or assembling | ||
tangible
personal property for wholesale or retail sale or | ||
lease, whether that sale
or lease is made directly by the |
manufacturer or by some other person,
whether the materials | ||
used in the process are
owned by the manufacturer or some other | ||
person, or whether that sale or
lease is made apart from or as | ||
an incident to the seller's engaging in
the service occupation | ||
of producing machines, tools, dies, jigs,
patterns, gauges, or | ||
other similar items of no commercial value on
special order for | ||
a particular purchaser. The exemption provided by this | ||
paragraph (18) does not include machinery and equipment used in | ||
(i) the generation of electricity for wholesale or retail sale; | ||
(ii) the generation or treatment of natural or artificial gas | ||
for wholesale or retail sale that is delivered to customers | ||
through pipes, pipelines, or mains; or (iii) the treatment of | ||
water for wholesale or retail sale that is delivered to | ||
customers through pipes, pipelines, or mains. The provisions of | ||
Public Act 98-583 are declaratory of existing law as to the | ||
meaning and scope of this exemption. Beginning on July 1, 2017, | ||
the exemption provided by this paragraph (18) includes, but is | ||
not limited to, graphic arts machinery and equipment, as | ||
defined in paragraph (6) of this Section.
| ||
(19) Personal property delivered to a purchaser or | ||
purchaser's donee
inside Illinois when the purchase order for | ||
that personal property was
received by a florist located | ||
outside Illinois who has a florist located
inside Illinois | ||
deliver the personal property.
| ||
(20) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
|
(21) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (21) is exempt from the provisions | ||
of Section 3-90, and the exemption provided for under this item | ||
(21) applies for all periods beginning May 30, 1995, but no | ||
claim for credit or refund is allowed on or after January 1, | ||
2008
for such taxes paid during the period beginning May 30, | ||
2000 and ending on January 1, 2008.
| ||
(22) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients purchased by a | ||
lessor who leases
the
equipment, under a lease of one year or | ||
longer executed or in effect at the
time the lessor would | ||
otherwise be subject to the tax imposed by this Act, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by
the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for
this exemption or is used in | ||
any other non-exempt manner, the lessor
shall be liable for the
| ||
tax imposed under this Act or the Service Use Tax Act, as the | ||
case may
be, based on the fair market value of the property at | ||
the time the
non-qualifying use occurs. No lessor shall collect | ||
or attempt to collect an
amount (however
designated) that |
purports to reimburse that lessor for the tax imposed by this
| ||
Act or the Service Use Tax Act, as the case may be, if the tax | ||
has not been
paid by the lessor. If a lessor improperly | ||
collects any such amount from the
lessee, the lessee shall have | ||
a legal right to claim a refund of that amount
from the lessor. | ||
If, however, that amount is not refunded to the lessee for
any | ||
reason, the lessor is liable to pay that amount to the | ||
Department.
| ||
(23) Personal property purchased by a lessor who leases the
| ||
property, under
a
lease of
one year or longer executed or in | ||
effect at the time
the lessor would otherwise be subject to the | ||
tax imposed by this Act,
to a governmental body
that has been | ||
issued an active sales tax exemption identification number by | ||
the
Department under Section 1g of the Retailers' Occupation | ||
Tax Act.
If the
property is leased in a manner that does not | ||
qualify for
this exemption
or used in any other non-exempt | ||
manner, the lessor shall be liable for the
tax imposed under | ||
this Act or the Service Use Tax Act, as the case may
be, based | ||
on the fair market value of the property at the time the
| ||
non-qualifying use occurs. No lessor shall collect or attempt | ||
to collect an
amount (however
designated) that purports to | ||
reimburse that lessor for the tax imposed by this
Act or the | ||
Service Use Tax Act, as the case may be, if the tax has not been
| ||
paid by the lessor. If a lessor improperly collects any such | ||
amount from the
lessee, the lessee shall have a legal right to | ||
claim a refund of that amount
from the lessor. If, however, |
that amount is not refunded to the lessee for
any reason, the | ||
lessor is liable to pay that amount to the Department.
| ||
(24) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(25) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(26) Beginning July 1, 1999, game or game birds purchased | ||
at a "game
breeding
and hunting preserve area" as that term is
|
used in
the Wildlife Code. This paragraph is exempt from the | ||
provisions
of
Section 3-90.
| ||
(27) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois
Vehicle Code, that is donated to a | ||
corporation, limited liability company,
society, association, | ||
foundation, or institution that is determined by the
Department | ||
to be organized and operated exclusively for educational | ||
purposes.
For purposes of this exemption, "a corporation, | ||
limited liability company,
society, association, foundation, | ||
or institution organized and operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(28) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
|
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-90.
| ||
(29) Beginning January 1, 2000 and through December 31, | ||
2001, new or
used automatic vending
machines that prepare and | ||
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for machines used in
commercial, coin-operated amusement and | ||
vending business if a use or occupation
tax is paid on the | ||
gross receipts derived from the use of the commercial,
| ||
coin-operated amusement and vending machines.
This
paragraph
| ||
is exempt from the provisions of Section 3-90.
| ||
(30) Beginning January 1, 2001 and through June 30, 2016, | ||
food for human consumption that is to be consumed off the | ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks, and food that
has been prepared for immediate | ||
consumption) and prescription and
nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical |
assistance under Article V of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act, or in a licensed facility as defined | ||
in the ID/DD Community Care Act, the MC/DD Act, or the | ||
Specialized Mental Health Rehabilitation Act of 2013.
| ||
(31) Beginning on
the effective date of this amendatory Act | ||
of the 92nd General Assembly,
computers and communications | ||
equipment
utilized for any hospital purpose and equipment used | ||
in the diagnosis,
analysis, or treatment of hospital patients | ||
purchased by a lessor who leases
the equipment, under a lease | ||
of one year or longer executed or in effect at the
time the | ||
lessor would otherwise be subject to the tax imposed by this | ||
Act, to a
hospital that has been issued an active tax exemption | ||
identification number by
the Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for this exemption or is
used in | ||
any other nonexempt manner, the lessor shall be liable for the | ||
tax
imposed under this Act or the Service Use Tax Act, as the | ||
case may be, based on
the fair market value of the property at | ||
the time the nonqualifying use
occurs. No lessor shall collect | ||
or attempt to collect an amount (however
designated) that | ||
purports to reimburse that lessor for the tax imposed by this
| ||
Act or the Service Use Tax Act, as the case may be, if the tax | ||
has not been
paid by the lessor. If a lessor improperly | ||
collects any such amount from the
lessee, the lessee shall have | ||
a legal right to claim a refund of that amount
from the lessor. |
If, however, that amount is not refunded to the lessee for
any | ||
reason, the lessor is liable to pay that amount to the | ||
Department.
This paragraph is exempt from the provisions of | ||
Section 3-90.
| ||
(32) Beginning on
the effective date of this amendatory Act | ||
of the 92nd General Assembly,
personal property purchased by a | ||
lessor who leases the property,
under a lease of one year or | ||
longer executed or in effect at the time the
lessor would | ||
otherwise be subject to the tax imposed by this Act, to a
| ||
governmental body that has been issued an active sales tax | ||
exemption
identification number by the Department under | ||
Section 1g of the Retailers'
Occupation Tax Act. If the | ||
property is leased in a manner that does not
qualify for this | ||
exemption or used in any other nonexempt manner, the lessor
| ||
shall be liable for the tax imposed under this Act or the | ||
Service Use Tax Act,
as the case may be, based on the fair | ||
market value of the property at the time
the nonqualifying use | ||
occurs. No lessor shall collect or attempt to collect
an amount | ||
(however designated) that purports to reimburse that lessor for | ||
the
tax imposed by this Act or the Service Use Tax Act, as the | ||
case may be, if the
tax has not been paid by the lessor. If a | ||
lessor improperly collects any such
amount from the lessee, the | ||
lessee shall have a legal right to claim a refund
of that | ||
amount from the lessor. If, however, that amount is not | ||
refunded to
the lessee for any reason, the lessor is liable to | ||
pay that amount to the
Department. This paragraph is exempt |
from the provisions of Section 3-90.
| ||
(33) On and after July 1, 2003 and through June 30, 2004, | ||
the use in this State of motor vehicles of
the second division | ||
with a gross vehicle weight in excess of 8,000 pounds and
that | ||
are subject to the commercial distribution fee imposed under | ||
Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||
1, 2004 and through June 30, 2005, the use in this State of | ||
motor vehicles of the second division: (i) with a gross vehicle | ||
weight rating in excess of 8,000 pounds; (ii) that are subject | ||
to the commercial distribution fee imposed under Section | ||
3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||
primarily used for commercial purposes. Through June 30, 2005, | ||
this exemption applies to repair and
replacement parts added | ||
after the initial purchase of such a motor vehicle if
that | ||
motor
vehicle is used in a manner that would qualify for the | ||
rolling stock exemption
otherwise provided for in this Act. For | ||
purposes of this paragraph, the term "used for commercial | ||
purposes" means the transportation of persons or property in | ||
furtherance of any commercial or industrial enterprise, | ||
whether for-hire or not.
| ||
(34) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is |
exempt from the provisions of Section 3-90. | ||
(35) Beginning January 1, 2010, materials, parts, | ||
equipment, components, and furnishings incorporated into or | ||
upon an aircraft as part of the modification, refurbishment, | ||
completion, replacement, repair, or maintenance of the | ||
aircraft. This exemption includes consumable supplies used in | ||
the modification, refurbishment, completion, replacement, | ||
repair, and maintenance of aircraft, but excludes any | ||
materials, parts, equipment, components, and consumable | ||
supplies used in the modification, replacement, repair, and | ||
maintenance of aircraft engines or power plants, whether such | ||
engines or power plants are installed or uninstalled upon any | ||
such aircraft. "Consumable supplies" include, but are not | ||
limited to, adhesive, tape, sandpaper, general purpose | ||
lubricants, cleaning solution, latex gloves, and protective | ||
films. This exemption applies only to the use of qualifying | ||
tangible personal property by persons who modify, refurbish, | ||
complete, repair, replace, or maintain aircraft and who (i) | ||
hold an Air Agency Certificate and are empowered to operate an | ||
approved repair station by the Federal Aviation | ||
Administration, (ii) have a Class IV Rating, and (iii) conduct | ||
operations in accordance with Part 145 of the Federal Aviation | ||
Regulations. The exemption does not include aircraft operated | ||
by a commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part 129 | ||
of the Federal Aviation Regulations. The changes made to this |
paragraph (35) by Public Act 98-534 are declarative of existing | ||
law. | ||
(36) Tangible personal property purchased by a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, but | ||
only if the legal title to the municipal convention hall is | ||
transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the time | ||
of the completion of the municipal convention hall or upon the | ||
retirement or redemption of any bonds or other debt instruments | ||
issued by the public-facilities corporation in connection with | ||
the development of the municipal convention hall. This | ||
exemption includes existing public-facilities corporations as | ||
provided in Section 11-65-25 of the Illinois Municipal Code. | ||
This paragraph is exempt from the provisions of Section 3-90. | ||
(37) Beginning January 1, 2017, menstrual pads, tampons, | ||
and menstrual cups. | ||
(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||
98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||
1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||
7-29-15; 99-855, eff. 8-19-16.)
| ||
(35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| ||
Sec. 3-50. Manufacturing and assembly exemption. The | ||
manufacturing
and assembling machinery and equipment exemption |
includes
machinery and equipment that replaces machinery and | ||
equipment in an
existing manufacturing facility as well as | ||
machinery and equipment that
are for use in an expanded or new | ||
manufacturing facility. The machinery and
equipment exemption | ||
also includes machinery and equipment used in the
general | ||
maintenance or repair of exempt machinery and equipment or for
| ||
in-house manufacture of exempt machinery and equipment. | ||
Beginning on July 1, 2017, the manufacturing and assembling | ||
machinery and equipment exemption also includes graphic arts | ||
machinery and equipment, as defined in paragraph (6) of Section | ||
3-5. The machinery and equipment exemption does not include | ||
machinery and equipment used in (i) the generation of | ||
electricity for wholesale or retail sale; (ii) the generation | ||
or treatment of natural or artificial gas for wholesale or | ||
retail sale that is delivered to customers through pipes, | ||
pipelines, or mains; or (iii) the treatment of water for | ||
wholesale or retail sale that is delivered to customers through | ||
pipes, pipelines, or mains. The provisions of this amendatory | ||
Act of the 98th General Assembly are declaratory of existing | ||
law as to the meaning and scope of this exemption. For the
| ||
purposes of this exemption, terms have the following
meanings:
| ||
(1) "Manufacturing process" means the production of
an | ||
article of tangible personal property, whether the article
| ||
is a finished product or an article for use in the process | ||
of manufacturing
or assembling a different article of | ||
tangible personal property, by
a procedure commonly |
regarded as manufacturing, processing, fabricating, or
| ||
refining that changes some existing material into a | ||
material
with a different form, use, or name. In relation | ||
to a recognized integrated
business composed of a series of | ||
operations that collectively constitute
manufacturing, or | ||
individually constitute
manufacturing operations, the | ||
manufacturing process commences with the
first operation | ||
or stage of production in the series
and does not end until | ||
the completion of the final product
in the last operation | ||
or stage of production in the series. For purposes
of this | ||
exemption, photoprocessing is a
manufacturing process of | ||
tangible personal property for wholesale or retail
sale.
| ||
(2) "Assembling process" means the production of
an | ||
article of tangible personal property, whether the article
| ||
is a finished product or an article for use in the process | ||
of manufacturing
or assembling a different article of | ||
tangible personal property, by the
combination of existing | ||
materials in a manner commonly regarded as
assembling that | ||
results in an article or material of a different
form, use, | ||
or name.
| ||
(3) "Machinery" means major
mechanical machines or | ||
major components of those machines contributing to a
| ||
manufacturing or assembling process.
| ||
(4) "Equipment" includes an independent device
or tool | ||
separate from machinery but essential to an integrated
| ||
manufacturing or assembly process; including computers |
used primarily in
a manufacturer's computer assisted | ||
design,
computer assisted manufacturing (CAD/CAM) system; | ||
any
subunit or assembly comprising a component of any | ||
machinery or auxiliary,
adjunct, or attachment parts of | ||
machinery, such as tools, dies, jigs,
fixtures, patterns, | ||
and molds; and any parts that require
periodic replacement | ||
in the course of normal operation; but does not
include | ||
hand tools. Equipment includes chemicals or chemicals | ||
acting as
catalysts but only if
the chemicals or chemicals | ||
acting as catalysts effect a direct and
immediate change | ||
upon a
product being manufactured or assembled for | ||
wholesale or retail sale or
lease. | ||
(5) "Production related tangible personal property" | ||
means all tangible personal property that is used or | ||
consumed by the purchaser in a manufacturing facility in | ||
which a manufacturing process takes place and includes, | ||
without limitation, tangible personal property that is | ||
purchased for incorporation into real estate within a | ||
manufacturing facility and tangible personal property that | ||
is used or consumed in activities such as research and | ||
development, preproduction material handling, receiving, | ||
quality control, inventory control, storage, staging, and | ||
packaging for shipping and transportation purposes. | ||
"Production related tangible personal property" does not | ||
include (i) tangible personal property that is used, within | ||
or without a manufacturing facility, in sales, purchasing, |
accounting, fiscal management, marketing, personnel | ||
recruitment or selection, or landscaping or (ii) tangible | ||
personal property that is required to be titled or | ||
registered with a department, agency, or unit of federal, | ||
State, or local government.
| ||
The manufacturing and assembling machinery and equipment | ||
exemption includes production related tangible personal | ||
property that is purchased on or after July 1, 2007 and on or | ||
before June 30, 2008. The exemption for production related | ||
tangible personal property is subject to both of the following | ||
limitations: | ||
(1) The maximum amount of the exemption for any one | ||
taxpayer may not exceed 5% of the purchase price of | ||
production related tangible personal property that is | ||
purchased on or after July 1, 2007 and on or before June | ||
30, 2008. A credit under Section 3-85 of this Act may not | ||
be earned by the purchase of production related tangible | ||
personal property for which an exemption is received under | ||
this Section. | ||
(2) The maximum aggregate amount of the exemptions for | ||
production related tangible personal property awarded | ||
under this Act and the Retailers' Occupation Tax Act to all | ||
taxpayers may not exceed $10,000,000. If the claims for the | ||
exemption exceed $10,000,000, then the Department shall | ||
reduce the amount of the exemption to each taxpayer on a | ||
pro rata basis. |
The Department may adopt rules to implement and administer the | ||
exemption for production related tangible personal property. | ||
The manufacturing and assembling machinery and equipment
| ||
exemption includes the sale of materials to a purchaser who
| ||
produces exempted types of machinery, equipment, or tools and | ||
who rents or
leases that machinery, equipment, or tools to a
| ||
manufacturer of tangible
personal property. This exemption | ||
also includes the sale of materials to a
purchaser who | ||
manufactures those materials into an exempted type of
| ||
machinery, equipment, or tools that the purchaser uses
himself | ||
or herself in the
manufacturing of tangible personal property. | ||
This exemption includes the
sale of exempted types of machinery | ||
or equipment to a
purchaser who is not the manufacturer, but | ||
who rents or leases the use of
the property to a manufacturer. | ||
The purchaser of the machinery and
equipment who has an active | ||
resale registration number shall
furnish that number to the | ||
seller at the time of purchase.
A user of the machinery, | ||
equipment, or tools without an
active resale registration | ||
number shall prepare a certificate of exemption
for each | ||
transaction stating facts establishing the exemption for that
| ||
transaction, and that certificate shall be
available to the | ||
Department for inspection or audit. The Department shall
| ||
prescribe the form of the certificate. Informal rulings, | ||
opinions, or
letters issued by the Department in
response to an | ||
inquiry or request for an opinion from any person
regarding the | ||
coverage and applicability of this exemption to specific
|
devices shall be published, maintained as a public record, and | ||
made
available for public inspection and copying. If the | ||
informal ruling,
opinion, or letter contains trade secrets or | ||
other confidential
information, where possible, the Department | ||
shall delete that information
before publication. Whenever | ||
informal rulings, opinions, or
letters contain a policy of | ||
general applicability, the Department
shall formulate and | ||
adopt that policy as a rule in accordance with the
Illinois | ||
Administrative Procedure Act.
| ||
The manufacturing and assembling machinery and equipment
| ||
exemption is exempt from the provisions of Section 3-90. | ||
(Source: P.A. 98-583, eff. 1-1-14.)
| ||
Section 35-10. The Service Use Tax Act is amended by | ||
changing Sections 2 and 3-5 as follows:
| ||
(35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||
Sec. 2. Definitions. | ||
"Use" means the exercise by any person of any right or | ||
power
over tangible personal property incident to the ownership | ||
of that
property, but does not include the sale or use for | ||
demonstration by him
of that property in any form as tangible | ||
personal property in the
regular course of business.
"Use" does | ||
not mean the interim
use of
tangible personal property nor the | ||
physical incorporation of tangible
personal property, as an | ||
ingredient or constituent, into other tangible
personal |
property, (a) which is sold in the regular course of business
| ||
or (b) which the person incorporating such ingredient or | ||
constituent
therein has undertaken at the time of such purchase | ||
to cause to be
transported in interstate commerce to | ||
destinations outside the State of
Illinois.
| ||
"Purchased from a serviceman" means the acquisition of the | ||
ownership
of, or title to, tangible personal property through a | ||
sale of service.
| ||
"Purchaser" means any person who, through a sale of | ||
service, acquires
the ownership of, or title to, any tangible | ||
personal property.
| ||
"Cost price" means the consideration paid by the serviceman | ||
for a
purchase valued in money, whether paid in money or | ||
otherwise, including
cash, credits and services, and shall be | ||
determined without any
deduction on account of the supplier's | ||
cost of the property sold or on
account of any other expense | ||
incurred by the supplier. When a serviceman
contracts out part | ||
or all of the services required in his sale of service,
it | ||
shall be presumed that the cost price to the serviceman of the | ||
property
transferred to him or her by his or her subcontractor | ||
is equal to 50% of
the subcontractor's charges to the | ||
serviceman in the absence of proof of
the consideration paid by | ||
the subcontractor for the purchase of such property.
| ||
"Selling price" means the consideration for a sale valued | ||
in money
whether received in money or otherwise, including | ||
cash, credits and
service, and shall be determined without any |
deduction on account of the
serviceman's cost of the property | ||
sold, the cost of materials used,
labor or service cost or any | ||
other expense whatsoever, but does not
include interest or | ||
finance charges which appear as separate items on
the bill of | ||
sale or sales contract nor charges that are added to prices
by | ||
sellers on account of the seller's duty to collect, from the
| ||
purchaser, the tax that is imposed by this Act.
| ||
"Department" means the Department of Revenue.
| ||
"Person" means any natural individual, firm, partnership,
| ||
association, joint stock company, joint venture, public or | ||
private
corporation, limited liability company, and any | ||
receiver, executor, trustee,
guardian or other representative | ||
appointed by order of any court.
| ||
"Sale of service" means any transaction except:
| ||
(1) a retail sale of tangible personal property taxable | ||
under the
Retailers' Occupation Tax Act or under the Use | ||
Tax Act.
| ||
(2) a sale of tangible personal property for the | ||
purpose of resale
made in compliance with Section 2c of the | ||
Retailers' Occupation Tax Act.
| ||
(3) except as hereinafter provided, a sale or transfer | ||
of tangible
personal property as an incident to the | ||
rendering of service for or by
any governmental body, or | ||
for or by any corporation, society,
association, | ||
foundation or institution organized and operated
| ||
exclusively for charitable, religious or educational |
purposes or any
not-for-profit corporation, society, | ||
association, foundation,
institution or organization which | ||
has no compensated officers or
employees and which is | ||
organized and operated primarily for the
recreation of | ||
persons 55 years of age or older. A limited liability | ||
company
may qualify for the exemption under this paragraph | ||
only if the limited
liability company is organized and | ||
operated exclusively for educational
purposes.
| ||
(4) a sale or transfer of tangible personal
property as | ||
an incident to the
rendering of service for interstate | ||
carriers for hire for use as rolling stock
moving in | ||
interstate commerce or by lessors under a lease of one year | ||
or
longer, executed or in effect at the time of purchase of | ||
personal property, to
interstate carriers for hire for use | ||
as rolling stock moving in interstate
commerce so long as | ||
so used by such interstate carriers for hire, and equipment
| ||
operated by a telecommunications provider, licensed as a | ||
common carrier by the
Federal Communications Commission, | ||
which is permanently installed in or affixed
to aircraft | ||
moving in interstate commerce.
| ||
(4a) a sale or transfer of tangible personal
property | ||
as an incident
to the rendering of service for owners, | ||
lessors, or shippers of tangible
personal property which is | ||
utilized by interstate carriers for hire for
use as rolling | ||
stock moving in interstate commerce so long as so used by
| ||
interstate carriers for hire, and equipment operated by a
|
telecommunications provider, licensed as a common carrier | ||
by the Federal
Communications Commission, which is | ||
permanently installed in or affixed to
aircraft moving in | ||
interstate commerce.
| ||
(4a-5) on and after July 1, 2003 and through June 30, | ||
2004, a sale or transfer of a motor vehicle
of
the
second | ||
division with a gross vehicle weight in excess of 8,000 | ||
pounds as an
incident to the rendering of service if that | ||
motor
vehicle is subject
to the commercial distribution fee | ||
imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||
Beginning on July 1, 2004 and through June 30, 2005, the | ||
use in this State of motor vehicles of the second division: | ||
(i) with a gross vehicle weight rating in excess of 8,000 | ||
pounds; (ii) that are subject to the commercial | ||
distribution fee imposed under Section 3-815.1 of the | ||
Illinois Vehicle Code; and (iii) that are primarily used | ||
for commercial purposes. Through June 30, 2005, this
| ||
exemption applies to repair and replacement parts added | ||
after the
initial
purchase of such a motor vehicle if that | ||
motor vehicle is used in a manner that
would
qualify for | ||
the rolling stock exemption otherwise provided for in this | ||
Act. For purposes of this paragraph, "used for commercial | ||
purposes" means the transportation of persons or property | ||
in furtherance of any commercial or industrial enterprise | ||
whether for-hire or not.
| ||
(5) a sale or transfer of machinery and equipment used |
primarily in the
process of the manufacturing or | ||
assembling, either in an existing, an expanded
or a new | ||
manufacturing facility, of tangible personal property for | ||
wholesale or
retail sale or lease, whether such sale or | ||
lease is made directly by the
manufacturer or by some other | ||
person, whether the materials used in the process
are owned | ||
by the manufacturer or some other person, or whether such | ||
sale or
lease is made apart from or as an incident to the | ||
seller's engaging in a
service occupation and the | ||
applicable tax is a Service Use Tax or Service
Occupation | ||
Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||
exemption provided by this paragraph (5) does not include | ||
machinery and equipment used in (i) the generation of | ||
electricity for wholesale or retail sale; (ii) the | ||
generation or treatment of natural or artificial gas for | ||
wholesale or retail sale that is delivered to customers | ||
through pipes, pipelines, or mains; or (iii) the treatment | ||
of water for wholesale or retail sale that is delivered to | ||
customers through pipes, pipelines, or mains. The | ||
provisions of this amendatory Act of the 98th General | ||
Assembly are declaratory of existing law as to the meaning | ||
and scope of this exemption. The exemption under this | ||
paragraph (5) is exempt from the provisions of Section | ||
3-75.
| ||
(5a) the repairing, reconditioning or remodeling, for | ||
a
common carrier by rail, of tangible personal property |
which belongs to such
carrier for hire, and as to which | ||
such carrier receives the physical possession
of the | ||
repaired, reconditioned or remodeled item of tangible | ||
personal property
in Illinois, and which such carrier | ||
transports, or shares with another common
carrier in the | ||
transportation of such property, out of Illinois on a | ||
standard
uniform bill of lading showing the person who | ||
repaired, reconditioned or
remodeled the property to a | ||
destination outside Illinois, for use outside
Illinois.
| ||
(5b) a sale or transfer of tangible personal property | ||
which is produced by
the seller thereof on special order in | ||
such a way as to have made the
applicable tax the Service | ||
Occupation Tax or the Service Use Tax, rather than
the | ||
Retailers' Occupation Tax or the Use Tax, for an interstate | ||
carrier by rail
which receives the physical possession of | ||
such property in Illinois, and which
transports such | ||
property, or shares with another common carrier in the
| ||
transportation of such property, out of Illinois on a | ||
standard uniform bill of
lading showing the seller of the | ||
property as the shipper or consignor of such
property to a | ||
destination outside Illinois, for use outside Illinois.
| ||
(6) until July 1, 2003, a sale or transfer of | ||
distillation machinery
and equipment, sold
as a unit or kit | ||
and assembled or installed by the retailer, which
machinery | ||
and equipment is certified by the user to be used only for | ||
the
production of ethyl alcohol that will be used for |
consumption as motor fuel
or as a component of motor fuel | ||
for the personal use of such user and not
subject to sale | ||
or resale.
| ||
(7) at the election of any serviceman not required to | ||
be
otherwise registered as a retailer under Section 2a of | ||
the Retailers'
Occupation Tax Act, made for each fiscal | ||
year sales
of service in which the aggregate annual cost | ||
price of tangible
personal property transferred as an | ||
incident to the sales of service is
less than 35%, or 75% | ||
in the case of servicemen transferring prescription
drugs | ||
or servicemen engaged in graphic arts production, of the | ||
aggregate
annual total gross receipts from all sales of | ||
service. The purchase of
such tangible personal property by | ||
the serviceman shall be subject to tax
under the Retailers' | ||
Occupation Tax Act and the Use Tax Act.
However, if a
| ||
primary serviceman who has made the election described in | ||
this paragraph
subcontracts service work to a secondary | ||
serviceman who has also made the
election described in this | ||
paragraph, the primary serviceman does not
incur a Use Tax | ||
liability if the secondary serviceman (i) has paid or will | ||
pay
Use
Tax on his or her cost price of any tangible | ||
personal property transferred
to the primary serviceman | ||
and (ii) certifies that fact in writing to the
primary
| ||
serviceman.
| ||
Tangible personal property transferred incident to the | ||
completion of a
maintenance agreement is exempt from the tax |
imposed pursuant to this Act.
| ||
Exemption (5) also includes machinery and equipment used in | ||
the general
maintenance or repair of such exempt machinery and | ||
equipment or for in-house
manufacture of exempt machinery and | ||
equipment. On and after July 1, 2017, exemption (5) also
| ||
includes graphic arts machinery and equipment, as
defined in | ||
paragraph (5) of Section 3-5. The machinery and equipment | ||
exemption does not include machinery and equipment used in (i) | ||
the generation of electricity for wholesale or retail sale; | ||
(ii) the generation or treatment of natural or artificial gas | ||
for wholesale or retail sale that is delivered to customers | ||
through pipes, pipelines, or mains; or (iii) the treatment of | ||
water for wholesale or retail sale that is delivered to | ||
customers through pipes, pipelines, or mains. The provisions of | ||
this amendatory Act of the 98th General Assembly are | ||
declaratory of existing law as to the meaning and scope of this | ||
exemption. For the purposes of exemption
(5), each of these | ||
terms shall have the following meanings: (1) "manufacturing
| ||
process" shall mean the production of any article of tangible | ||
personal
property, whether such article is a finished product | ||
or an article for use in
the process of manufacturing or | ||
assembling a different article of tangible
personal property, | ||
by procedures commonly regarded as manufacturing,
processing, | ||
fabricating, or refining which changes some existing
material | ||
or materials into a material with a different form, use or
| ||
name. In relation to a recognized integrated business composed |
of a
series of operations which collectively constitute | ||
manufacturing, or
individually constitute manufacturing | ||
operations, the manufacturing
process shall be deemed to | ||
commence with the first operation or stage of
production in the | ||
series, and shall not be deemed to end until the
completion of | ||
the final product in the last operation or stage of
production | ||
in the series; and further, for purposes of exemption (5),
| ||
photoprocessing is deemed to be a manufacturing process of | ||
tangible
personal property for wholesale or retail sale; (2) | ||
"assembling process" shall
mean the production of any article | ||
of tangible personal property, whether such
article is a | ||
finished product or an article for use in the process of
| ||
manufacturing or assembling a different article of tangible | ||
personal
property, by the combination of existing materials in | ||
a manner commonly
regarded as assembling which results in a | ||
material of a different form,
use or name; (3) "machinery" | ||
shall mean major mechanical machines or
major components of | ||
such machines contributing to a manufacturing or
assembling | ||
process; and (4) "equipment" shall include any independent
| ||
device or tool separate from any machinery but essential to an
| ||
integrated manufacturing or assembly process; including | ||
computers
used primarily in a manufacturer's computer
assisted | ||
design, computer assisted manufacturing (CAD/CAM) system;
or | ||
any subunit or assembly comprising a component of any machinery | ||
or
auxiliary, adjunct or attachment parts of machinery, such as | ||
tools, dies,
jigs, fixtures, patterns and molds; or any parts |
which require periodic
replacement in the course of normal | ||
operation; but shall not include hand
tools.
Equipment includes | ||
chemicals or chemicals acting as catalysts but only if the
| ||
chemicals or chemicals acting as catalysts effect a direct and | ||
immediate change
upon a
product being manufactured or assembled | ||
for wholesale or retail sale or
lease.
The purchaser of such | ||
machinery and equipment who has an active
resale registration | ||
number shall furnish such number to the seller at the
time of | ||
purchase. The user of such machinery and equipment and tools
| ||
without an active resale registration number shall prepare a | ||
certificate of
exemption for each transaction stating facts | ||
establishing the exemption for
that transaction, which | ||
certificate shall be available to the Department
for inspection | ||
or audit. The Department shall prescribe the form of the
| ||
certificate.
| ||
Any informal rulings, opinions or letters issued by the | ||
Department in
response to an inquiry or request for any opinion | ||
from any person
regarding the coverage and applicability of | ||
exemption (5) to specific
devices shall be published, | ||
maintained as a public record, and made
available for public | ||
inspection and copying. If the informal ruling,
opinion or | ||
letter contains trade secrets or other confidential
| ||
information, where possible the Department shall delete such | ||
information
prior to publication. Whenever such informal | ||
rulings, opinions, or
letters contain any policy of general | ||
applicability, the Department
shall formulate and adopt such |
policy as a rule in accordance with the
provisions of the | ||
Illinois Administrative Procedure Act.
| ||
On and after July 1, 1987, no entity otherwise eligible | ||
under exemption
(3) of this Section shall make tax free | ||
purchases unless it has an active
exemption identification | ||
number issued by the Department.
| ||
The purchase, employment and transfer of such tangible | ||
personal
property as newsprint and ink for the primary purpose | ||
of conveying news
(with or without other information) is not a | ||
purchase, use or sale of
service or of tangible personal | ||
property within the meaning of this Act.
| ||
"Serviceman" means any person who is engaged in the | ||
occupation of
making sales of service.
| ||
"Sale at retail" means "sale at retail" as defined in the | ||
Retailers'
Occupation Tax Act.
| ||
"Supplier" means any person who makes sales of tangible | ||
personal
property to servicemen for the purpose of resale as an | ||
incident to a
sale of service.
| ||
"Serviceman maintaining a place of business in this State", | ||
or any
like term, means and includes any serviceman:
| ||
1. having or maintaining within this State, directly or | ||
by a
subsidiary, an office, distribution house, sales | ||
house, warehouse or
other place of business, or any agent | ||
or other representative operating
within this State under | ||
the authority of the serviceman or its
subsidiary, | ||
irrespective of whether such place of business or agent or
|
other representative is located here permanently or | ||
temporarily, or
whether such serviceman or subsidiary is | ||
licensed to do business in this
State; | ||
1.1. having a contract with a person located in this | ||
State under which the person, for a commission or other | ||
consideration based on the sale of service by the | ||
serviceman, directly or indirectly refers potential | ||
customers to the serviceman by providing to the potential | ||
customers a promotional code or other mechanism that allows | ||
the serviceman to track purchases referred by such persons. | ||
Examples of mechanisms that allow the serviceman to track | ||
purchases referred by such persons include but are not | ||
limited to the use of a link on the person's Internet | ||
website, promotional codes distributed through the | ||
person's hand-delivered or mailed material, and | ||
promotional codes distributed by the person through radio | ||
or other broadcast media. The provisions of this paragraph | ||
1.1 shall apply only if the cumulative gross receipts from | ||
sales of service by the serviceman to customers who are | ||
referred to the serviceman by all persons in this State | ||
under such contracts exceed $10,000 during the preceding 4 | ||
quarterly periods ending on the last day of March, June, | ||
September, and December; a serviceman meeting the | ||
requirements of this paragraph 1.1 shall be presumed to be | ||
maintaining a place of business in this State but may rebut | ||
this presumption by submitting proof that the referrals or |
other activities pursued within this State by such persons | ||
were not sufficient to meet the nexus standards of the | ||
United States Constitution during the preceding 4 | ||
quarterly periods; | ||
1.2. beginning July 1, 2011, having a contract with a | ||
person located in this State under which: | ||
A. the serviceman sells the same or substantially | ||
similar line of services as the person located in this | ||
State and does so using an identical or substantially | ||
similar name, trade name, or trademark as the person | ||
located in this State; and | ||
B. the serviceman provides a commission or other | ||
consideration to the person located in this State based | ||
upon the sale of services by the serviceman. | ||
The provisions of this paragraph 1.2 shall apply only if | ||
the cumulative gross receipts from sales of service by the | ||
serviceman to customers in this State under all such | ||
contracts exceed $10,000 during the preceding 4 quarterly | ||
periods ending on the last day of March, June, September, | ||
and December;
| ||
2. soliciting orders for tangible personal property by | ||
means of a
telecommunication or television shopping system | ||
(which utilizes toll free
numbers) which is intended by the | ||
retailer to be broadcast by cable
television or other means | ||
of broadcasting, to consumers located in this State;
| ||
3. pursuant to a contract with a broadcaster or |
publisher located in this
State, soliciting orders for | ||
tangible personal property by means of advertising
which is | ||
disseminated primarily to consumers located in this State | ||
and only
secondarily to bordering jurisdictions;
| ||
4. soliciting orders for tangible personal property by | ||
mail if the
solicitations are substantial and recurring and | ||
if the retailer benefits
from any banking, financing, debt | ||
collection, telecommunication, or
marketing activities | ||
occurring in this State or benefits from the location
in | ||
this State of authorized installation, servicing, or | ||
repair facilities;
| ||
5. being owned or controlled by the same interests | ||
which own or
control any retailer engaging in business in | ||
the same or similar line of
business in this State;
| ||
6. having a franchisee or licensee operating under its | ||
trade name if
the franchisee or licensee is required to | ||
collect the tax under this Section;
| ||
7. pursuant to a contract with a cable television | ||
operator located in
this State, soliciting orders for | ||
tangible personal property by means of
advertising which is | ||
transmitted or distributed over a cable television
system | ||
in this State; or
| ||
8. engaging in activities in Illinois, which | ||
activities in the
state in which the supply business | ||
engaging in such activities is located
would constitute | ||
maintaining a place of business in that state.
|
(Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
| ||
(35 ILCS 110/3-5)
| ||
Sec. 3-5. Exemptions. Use of the following tangible | ||
personal property
is exempt from the tax imposed by this Act:
| ||
(1) Personal property purchased from a corporation, | ||
society,
association, foundation, institution, or | ||
organization, other than a limited
liability company, that is | ||
organized and operated as a not-for-profit service
enterprise | ||
for the benefit of persons 65 years of age or older if the | ||
personal
property was not purchased by the enterprise for the | ||
purpose of resale by the
enterprise.
| ||
(2) Personal property purchased by a non-profit Illinois | ||
county fair
association for use in conducting, operating, or | ||
promoting the county fair.
| ||
(3) Personal property purchased by a not-for-profit arts
or | ||
cultural
organization that establishes, by proof required by | ||
the Department by rule,
that it has received an exemption under | ||
Section 501(c)(3) of the Internal
Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date |
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(4) Legal tender, currency, medallions, or gold or silver | ||
coinage issued
by the State of Illinois, the government of the | ||
United States of America,
or the government of any foreign | ||
country, and bullion.
| ||
(5) Until July 1, 2003 and beginning again on September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and
replacement parts, both new and | ||
used, and including that manufactured on
special order or | ||
purchased for lease, certified by the purchaser to be used
| ||
primarily for graphic arts production.
Equipment includes | ||
chemicals or
chemicals acting as catalysts but only if
the | ||
chemicals or chemicals acting as catalysts effect a direct and | ||
immediate
change upon a graphic arts product. Beginning on July | ||
1, 2017, graphic arts machinery and equipment is included in | ||
the manufacturing and assembling machinery and equipment | ||
exemption under Section 2 of this Act.
| ||
(6) Personal property purchased from a teacher-sponsored | ||
student
organization affiliated with an elementary or | ||
secondary school located
in Illinois.
| ||
(7) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or |
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (7).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
|
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 3-75.
| ||
(8) Until June 30, 2013, fuel and petroleum products sold | ||
to or used by an air common
carrier, certified by the carrier | ||
to be used for consumption, shipment, or
storage in the conduct | ||
of its business as an air common carrier, for a
flight destined | ||
for or returning from a location or locations
outside the | ||
United States without regard to previous or subsequent domestic
| ||
stopovers.
| ||
Beginning July 1, 2013, fuel and petroleum products sold to | ||
or used by an air carrier, certified by the carrier to be used | ||
for consumption, shipment, or storage in the conduct of its | ||
business as an air common carrier, for a flight that (i) is | ||
engaged in foreign trade or is engaged in trade between the | ||
United States and any of its possessions and (ii) transports at | ||
least one individual or package for hire from the city of | ||
origination to the city of final destination on the same | ||
aircraft, without regard to a change in the flight number of | ||
that aircraft. | ||
(9) Proceeds of mandatory service charges separately | ||
stated on
customers' bills for the purchase and consumption of | ||
food and beverages
acquired as an incident to the purchase of a |
service from a serviceman, to
the extent that the proceeds of | ||
the service charge are in fact
turned over as tips or as a | ||
substitute for tips to the employees who
participate directly | ||
in preparing, serving, hosting or cleaning up the
food or | ||
beverage function with respect to which the service charge is | ||
imposed.
| ||
(10) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment, including
(i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(11) Proceeds from the sale of photoprocessing machinery | ||
and
equipment, including repair and replacement parts, both new | ||
and
used, including that manufactured on special order, | ||
certified by the
purchaser to be used primarily for | ||
photoprocessing, and including
photoprocessing machinery and | ||
equipment purchased for lease.
| ||
(12) Coal and aggregate exploration, mining, off-highway | ||
hauling,
processing,
maintenance, and reclamation equipment, | ||
including
replacement parts and equipment, and including
| ||
equipment purchased for lease, but excluding motor vehicles | ||
required to be
registered under the Illinois Vehicle Code. The |
changes made to this Section by Public Act 97-767 apply on and | ||
after July 1, 2003, but no claim for credit or refund is | ||
allowed on or after August 16, 2013 (the effective date of | ||
Public Act 98-456)
for such taxes paid during the period | ||
beginning July 1, 2003 and ending on August 16, 2013 (the | ||
effective date of Public Act 98-456).
| ||
(13) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(14) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (14) is exempt from the provisions | ||
of Section 3-75, and the exemption provided for under this item | ||
(14) applies for all periods beginning May 30, 1995, but no | ||
claim for credit or refund is allowed on or after the effective | ||
date of this amendatory Act of the 95th General Assembly for | ||
such taxes paid during the period beginning May 30, 2000 and | ||
ending on the effective date of this amendatory Act of the 95th | ||
General Assembly.
| ||
(15) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients purchased by a | ||
lessor who leases
the
equipment, under a lease of one year or | ||
longer executed or in effect at the
time
the lessor would |
otherwise be subject to the tax imposed by this Act,
to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||
manner that does not qualify for
this exemption
or is used in | ||
any other non-exempt manner,
the lessor shall be liable for the
| ||
tax imposed under this Act or the Use Tax Act, as the case may
| ||
be, based on the fair market value of the property at the time | ||
the
non-qualifying use occurs. No lessor shall collect or | ||
attempt to collect an
amount (however
designated) that purports | ||
to reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by | ||
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
| ||
(16) Personal property purchased by a lessor who leases the
| ||
property, under
a
lease of one year or longer executed or in | ||
effect at the time
the lessor would otherwise be subject to the | ||
tax imposed by this Act,
to a governmental body
that has been | ||
issued an active tax exemption identification number by the
| ||
Department under Section 1g of the Retailers' Occupation Tax | ||
Act.
If the
property is leased in a manner that does not | ||
qualify for
this exemption
or is used in any other non-exempt | ||
manner,
the lessor shall be liable for the
tax imposed under |
this Act or the Use Tax Act, as the case may
be, based on the | ||
fair market value of the property at the time the
| ||
non-qualifying use occurs. No lessor shall collect or attempt | ||
to collect an
amount (however
designated) that purports to | ||
reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by | ||
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
| ||
(17) Beginning with taxable years ending on or after | ||
December
31,
1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(18) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
|
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(19) Beginning July 1, 1999, game or game birds purchased | ||
at a "game
breeding
and hunting preserve area" as that term is
| ||
used in
the Wildlife Code. This paragraph is exempt from the | ||
provisions
of
Section 3-75.
| ||
(20) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less |
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(21) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the | ||
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-75.
| ||
(22) Beginning January 1, 2000
and through December 31, | ||
2001, new or used automatic vending
machines that prepare and | ||
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for machines used in
commercial, coin-operated
amusement
and | ||
vending business if a use or occupation tax is paid on the | ||
gross receipts
derived from
the use of the commercial, | ||
coin-operated amusement and vending machines.
This
paragraph
|
is exempt from the provisions of Section 3-75.
| ||
(23) Beginning August 23, 2001 and through June 30, 2016, | ||
food for human consumption that is to be consumed off the
| ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks, and food that
has been prepared for immediate | ||
consumption) and prescription and
nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical | ||
assistance under Article V of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act, or in a licensed facility as defined | ||
in the ID/DD Community Care Act, the MC/DD Act, or the | ||
Specialized Mental Health Rehabilitation Act of 2013.
| ||
(24) Beginning on the effective date of this amendatory Act | ||
of the 92nd
General Assembly, computers and communications | ||
equipment
utilized for any hospital purpose and equipment used | ||
in the diagnosis,
analysis, or treatment of hospital patients | ||
purchased by a lessor who leases
the equipment, under a lease | ||
of one year or longer executed or in effect at the
time the | ||
lessor would otherwise be subject to the tax imposed by this | ||
Act, to a
hospital that has been issued an active tax exemption | ||
identification number by
the Department under Section 1g of the | ||
Retailers' Occupation Tax Act. If the
equipment is leased in a | ||
manner that does not qualify for this exemption or is
used in | ||
any other nonexempt manner, the lessor shall be liable for the
|
tax imposed under this Act or the Use Tax Act, as the case may | ||
be, based on the
fair market value of the property at the time | ||
the nonqualifying use occurs.
No lessor shall collect or | ||
attempt to collect an amount (however
designated) that purports | ||
to reimburse that lessor for the tax imposed by this
Act or the | ||
Use Tax Act, as the case may be, if the tax has not been
paid by | ||
the lessor. If a lessor improperly collects any such amount | ||
from the
lessee, the lessee shall have a legal right to claim a | ||
refund of that amount
from the lessor. If, however, that amount | ||
is not refunded to the lessee for
any reason, the lessor is | ||
liable to pay that amount to the Department.
This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(25) Beginning
on the effective date of this amendatory Act | ||
of the 92nd General Assembly,
personal property purchased by a | ||
lessor
who leases the property, under a lease of one year or | ||
longer executed or in
effect at the time the lessor would | ||
otherwise be subject to the tax imposed by
this Act, to a | ||
governmental body that has been issued an active tax exemption
| ||
identification number by the Department under Section 1g of the | ||
Retailers'
Occupation Tax Act. If the property is leased in a | ||
manner that does not
qualify for this exemption or is used in | ||
any other nonexempt manner, the
lessor shall be liable for the | ||
tax imposed under this Act or the Use Tax Act,
as the case may | ||
be, based on the fair market value of the property at the time
| ||
the nonqualifying use occurs. No lessor shall collect or | ||
attempt to collect
an amount (however designated) that purports |
to reimburse that lessor for the
tax imposed by this Act or the | ||
Use Tax Act, as the case may be, if the tax has
not been paid by | ||
the lessor. If a lessor improperly collects any such amount
| ||
from the lessee, the lessee shall have a legal right to claim a | ||
refund of that
amount from the lessor. If, however, that amount | ||
is not refunded to the lessee
for any reason, the lessor is | ||
liable to pay that amount to the Department.
This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(26) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-75.
| ||
(27) Beginning January 1, 2010, materials, parts, | ||
equipment, components, and furnishings incorporated into or | ||
upon an aircraft as part of the modification, refurbishment, | ||
completion, replacement, repair, or maintenance of the | ||
aircraft. This exemption includes consumable supplies used in | ||
the modification, refurbishment, completion, replacement, | ||
repair, and maintenance of aircraft, but excludes any | ||
materials, parts, equipment, components, and consumable | ||
supplies used in the modification, replacement, repair, and | ||
maintenance of aircraft engines or power plants, whether such | ||
engines or power plants are installed or uninstalled upon any |
such aircraft. "Consumable supplies" include, but are not | ||
limited to, adhesive, tape, sandpaper, general purpose | ||
lubricants, cleaning solution, latex gloves, and protective | ||
films. This exemption applies only to the use of qualifying | ||
tangible personal property transferred incident to the | ||
modification, refurbishment, completion, replacement, repair, | ||
or maintenance of aircraft by persons who (i) hold an Air | ||
Agency Certificate and are empowered to operate an approved | ||
repair station by the Federal Aviation Administration, (ii) | ||
have a Class IV Rating, and (iii) conduct operations in | ||
accordance with Part 145 of the Federal Aviation Regulations. | ||
The exemption does not include aircraft operated by a | ||
commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part 129 | ||
of the Federal Aviation Regulations. The changes made to this | ||
paragraph (27) by Public Act 98-534 are declarative of existing | ||
law. | ||
(28) Tangible personal property purchased by a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, but | ||
only if the legal title to the municipal convention hall is | ||
transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the time | ||
of the completion of the municipal convention hall or upon the | ||
retirement or redemption of any bonds or other debt instruments |
issued by the public-facilities corporation in connection with | ||
the development of the municipal convention hall. This | ||
exemption includes existing public-facilities corporations as | ||
provided in Section 11-65-25 of the Illinois Municipal Code. | ||
This paragraph is exempt from the provisions of Section 3-75. | ||
(29) Beginning January 1, 2017, menstrual pads, tampons, | ||
and menstrual cups. | ||
(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||
98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||
7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
| ||
Section 35-15. The Service Occupation Tax Act is amended by | ||
changing Sections 2 and 3-5 as follows:
| ||
(35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||
Sec. 2. "Transfer" means any transfer of the title to | ||
property or of
the ownership of property whether or not the | ||
transferor retains title as
security for the payment of amounts | ||
due him from the transferee.
| ||
"Cost Price" means the consideration paid by the serviceman | ||
for a
purchase valued in money, whether paid in money or | ||
otherwise, including
cash, credits and services, and shall be | ||
determined without any deduction
on account of the supplier's | ||
cost of the property sold or on account of any
other expense | ||
incurred by the supplier. When a serviceman contracts out
part | ||
or all of the services required in his sale of service, it |
shall be
presumed that the cost price to the serviceman of the | ||
property
transferred to him by his or her subcontractor is | ||
equal to 50% of the
subcontractor's charges to the serviceman | ||
in the absence of proof of the
consideration paid by the | ||
subcontractor for the purchase of such
property.
| ||
"Department" means the Department of Revenue.
| ||
"Person" means any natural individual, firm, partnership, | ||
association, joint
stock company, joint venture, public or | ||
private corporation, limited liability
company, and any | ||
receiver, executor, trustee, guardian or other representative
| ||
appointed by order of any court.
| ||
"Sale of Service" means any transaction except:
| ||
(a) A retail sale of tangible personal property taxable | ||
under the Retailers'
Occupation Tax Act or under the Use Tax | ||
Act.
| ||
(b) A sale of tangible personal property for the purpose of | ||
resale made in
compliance with Section 2c of the Retailers' | ||
Occupation Tax Act.
| ||
(c) Except as hereinafter provided, a sale or transfer of | ||
tangible personal
property as an incident to the rendering of | ||
service for or by any governmental
body or for or by any | ||
corporation, society, association, foundation or
institution | ||
organized and operated exclusively for charitable, religious | ||
or
educational purposes or any not-for-profit corporation, | ||
society, association,
foundation, institution or organization | ||
which has no compensated officers or
employees and which is |
organized and operated primarily for the recreation of
persons | ||
55 years of age or older. A limited liability company may | ||
qualify for
the exemption under this paragraph only if the | ||
limited liability company is
organized and operated | ||
exclusively for educational purposes.
| ||
(d) A sale or transfer of tangible personal
property
as an | ||
incident to the
rendering of service for interstate carriers | ||
for hire for use as rolling stock
moving in interstate commerce | ||
or lessors under leases of one year or longer,
executed or in | ||
effect at the time of purchase, to interstate carriers for hire
| ||
for use as rolling stock moving in interstate commerce, and | ||
equipment operated
by a telecommunications provider, licensed | ||
as a common
carrier by the Federal Communications Commission, | ||
which is permanently
installed in or affixed to aircraft moving | ||
in interstate commerce.
| ||
(d-1) A sale or transfer of tangible personal
property as | ||
an incident to
the rendering of service for owners, lessors or | ||
shippers of tangible personal
property which is utilized by | ||
interstate carriers for hire for use as rolling
stock moving in | ||
interstate commerce, and equipment operated
by a | ||
telecommunications provider, licensed as a common carrier by | ||
the
Federal Communications Commission, which is permanently | ||
installed in or
affixed to aircraft moving in interstate | ||
commerce.
| ||
(d-1.1) On and after July 1, 2003 and through June 30, | ||
2004, a sale or transfer of a motor vehicle
of the
second |
division with a gross vehicle weight in excess of 8,000 pounds | ||
as an
incident to the rendering of service if that motor
| ||
vehicle is subject
to the commercial distribution fee imposed | ||
under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||
on July 1, 2004 and through June 30, 2005, the use in this | ||
State of motor vehicles of the second division: (i) with a | ||
gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||
that are subject to the commercial distribution fee imposed | ||
under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||
that are primarily used for commercial purposes. Through June | ||
30, 2005, this exemption applies to repair and replacement | ||
parts added after the
initial
purchase of such a motor vehicle | ||
if that motor vehicle is used in a manner that
would
qualify | ||
for the rolling stock exemption otherwise provided for in this | ||
Act. For purposes of this paragraph, "used for commercial | ||
purposes" means the transportation of persons or property in | ||
furtherance of any commercial or industrial enterprise whether | ||
for-hire or not.
| ||
(d-2) The repairing, reconditioning or remodeling, for a | ||
common carrier by
rail, of tangible personal property which | ||
belongs to such carrier for hire, and
as to which such carrier | ||
receives the physical possession of the repaired,
| ||
reconditioned or remodeled item of tangible personal property | ||
in Illinois, and
which such carrier transports, or shares with | ||
another common carrier in the
transportation of such property, | ||
out of Illinois on a standard uniform bill of
lading showing |
the person who repaired, reconditioned or remodeled the | ||
property
as the shipper or consignor of such property to a | ||
destination outside Illinois,
for use outside Illinois.
| ||
(d-3) A sale or transfer of tangible personal property | ||
which
is produced by the seller thereof on special order in | ||
such a way as to have
made the applicable tax the Service | ||
Occupation Tax or the Service Use Tax,
rather than the | ||
Retailers' Occupation Tax or the Use Tax, for an interstate
| ||
carrier by rail which receives the physical possession of such | ||
property in
Illinois, and which transports such property, or | ||
shares with another common
carrier in the transportation of | ||
such property, out of Illinois on a standard
uniform bill of | ||
lading showing the seller of the property as the shipper or
| ||
consignor of such property to a destination outside Illinois, | ||
for use outside
Illinois.
| ||
(d-4) Until January 1, 1997, a sale, by a registered | ||
serviceman paying tax
under this Act to the Department, of | ||
special order printed materials delivered
outside Illinois and | ||
which are not returned to this State, if delivery is made
by | ||
the seller or agent of the seller, including an agent who | ||
causes the product
to be delivered outside Illinois by a common | ||
carrier or the U.S.
postal service.
| ||
(e) A sale or transfer of machinery and equipment used | ||
primarily in
the process of the manufacturing or assembling, | ||
either in an existing, an
expanded or a new manufacturing | ||
facility, of tangible personal property for
wholesale or retail |
sale or lease, whether such sale or lease is made directly
by | ||
the manufacturer or by some other person, whether the materials | ||
used in the
process are owned by the manufacturer or some other | ||
person, or whether such
sale or lease is made apart from or as | ||
an incident to the seller's engaging in
a service occupation | ||
and the applicable tax is a Service Occupation Tax or
Service | ||
Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||
exemption provided by this paragraph (e) does not include | ||
machinery and equipment used in (i) the generation of | ||
electricity for wholesale or retail sale; (ii) the generation | ||
or treatment of natural or artificial gas for wholesale or | ||
retail sale that is delivered to customers through pipes, | ||
pipelines, or mains; or (iii) the treatment of water for | ||
wholesale or retail sale that is delivered to customers through | ||
pipes, pipelines, or mains. The provisions of this amendatory | ||
Act of the 98th General Assembly are declaratory of existing | ||
law as to the meaning and scope of this exemption. The | ||
exemption under this subsection (e) is exempt from the | ||
provisions of Section 3-75.
| ||
(f) Until July 1, 2003, the sale or transfer of | ||
distillation
machinery
and equipment, sold as a
unit or kit and | ||
assembled or installed by the retailer, which machinery
and | ||
equipment is certified by the user to be used only for the | ||
production
of ethyl alcohol that will be used for consumption | ||
as motor fuel or as a
component of motor fuel for the personal | ||
use of such user and not subject
to sale or resale.
|
(g) At the election of any serviceman not required to be | ||
otherwise
registered as a retailer under Section 2a of the | ||
Retailers' Occupation Tax Act,
made for each fiscal year sales | ||
of service in which the aggregate annual cost
price of tangible | ||
personal property transferred as an incident to the sales of
| ||
service is less than 35% (75% in the case of servicemen | ||
transferring
prescription drugs or servicemen engaged in | ||
graphic arts production) of the
aggregate annual total gross | ||
receipts from all sales of service. The purchase
of such | ||
tangible personal property by the serviceman shall be subject | ||
to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||
Act.
However, if a
primary serviceman who has made the election | ||
described in this paragraph
subcontracts service work to a | ||
secondary serviceman who has also made the
election described | ||
in this paragraph, the primary serviceman does not
incur a Use | ||
Tax liability if the secondary serviceman (i) has paid or will | ||
pay
Use
Tax on his or her cost price of any tangible personal | ||
property transferred
to the primary serviceman and (ii) | ||
certifies that fact in writing to the
primary serviceman.
| ||
Tangible personal property transferred incident to the | ||
completion of a
maintenance agreement is exempt from the tax | ||
imposed pursuant to this Act.
| ||
Exemption (e) also includes machinery and equipment used in | ||
the
general maintenance or repair of such exempt machinery and | ||
equipment or for
in-house manufacture of exempt machinery and | ||
equipment.
On and after July 1, 2017, exemption (e) also
|
includes graphic arts machinery and equipment, as
defined in | ||
paragraph (5) of Section 3-5. The machinery and equipment | ||
exemption does not include machinery and equipment used in (i) | ||
the generation of electricity for wholesale or retail sale; | ||
(ii) the generation or treatment of natural or artificial gas | ||
for wholesale or retail sale that is delivered to customers | ||
through pipes, pipelines, or mains; or (iii) the treatment of | ||
water for wholesale or retail sale that is delivered to | ||
customers through pipes, pipelines, or mains. The provisions of | ||
this amendatory Act of the 98th General Assembly are | ||
declaratory of existing law as to the meaning and scope of this | ||
exemption. For the purposes of exemption (e), each of these | ||
terms shall have the following
meanings: (1) "manufacturing | ||
process" shall mean the production of any
article of tangible | ||
personal property, whether such article is a
finished product | ||
or an article for use in the process of manufacturing
or | ||
assembling a different article of tangible personal property, | ||
by
procedures commonly regarded as manufacturing, processing, | ||
fabricating,
or refining which changes some existing material | ||
or materials into a
material with a different form, use or | ||
name. In relation to a
recognized integrated business composed | ||
of a series of operations which
collectively constitute | ||
manufacturing, or individually constitute
manufacturing | ||
operations, the manufacturing process shall be deemed to
| ||
commence with the first operation or stage of production in the | ||
series,
and shall not be deemed to end until the completion of |
the final product
in the last operation or stage of production | ||
in the series; and further for
purposes of exemption (e), | ||
photoprocessing is deemed to be a manufacturing
process of | ||
tangible personal property for wholesale or retail sale;
(2) | ||
"assembling process" shall mean the production of any article | ||
of
tangible personal property, whether such article is a | ||
finished product
or an article for use in the process of | ||
manufacturing or assembling a
different article of tangible | ||
personal property, by the combination of
existing materials in | ||
a manner commonly regarded as assembling which
results in a | ||
material of a different form, use or name; (3) "machinery"
| ||
shall mean major mechanical machines or major components of | ||
such machines
contributing to a manufacturing or assembling | ||
process; and (4) "equipment"
shall include any independent | ||
device or tool separate from any machinery but
essential to an | ||
integrated manufacturing or assembly process; including
| ||
computers used primarily in a manufacturer's computer
assisted | ||
design, computer assisted manufacturing (CAD/CAM) system; or | ||
any
subunit or assembly comprising a component of any machinery | ||
or auxiliary,
adjunct or attachment parts of machinery, such as | ||
tools, dies, jigs, fixtures,
patterns and molds; or any parts | ||
which require periodic replacement in the
course of normal | ||
operation; but shall not include hand tools. Equipment
includes | ||
chemicals or chemicals acting as catalysts but only if the | ||
chemicals
or chemicals acting as catalysts effect a direct and | ||
immediate change upon a
product being manufactured or assembled |
for wholesale or retail sale or lease.
The purchaser of such | ||
machinery and equipment
who has an active resale registration | ||
number shall furnish such number to
the seller at the time of | ||
purchase. The purchaser of such machinery and
equipment and | ||
tools without an active resale registration number shall | ||
furnish
to the seller a certificate of exemption for each | ||
transaction stating facts
establishing the exemption for that | ||
transaction, which certificate shall
be available to the | ||
Department for inspection or audit.
| ||
Except as provided in Section 2d of this Act, the rolling | ||
stock exemption
applies to rolling
stock
used by an interstate
| ||
carrier for hire, even just between points in Illinois, if such | ||
rolling
stock transports, for hire, persons whose journeys or | ||
property whose
shipments originate or terminate outside | ||
Illinois.
| ||
Any informal rulings, opinions or letters issued by the | ||
Department in
response to an inquiry or request for any opinion | ||
from any person
regarding the coverage and applicability of | ||
exemption (e) to specific
devices shall be published, | ||
maintained as a public record, and made
available for public | ||
inspection and copying. If the informal ruling,
opinion or | ||
letter contains trade secrets or other confidential
| ||
information, where possible the Department shall delete such | ||
information
prior to publication. Whenever such informal | ||
rulings, opinions, or
letters contain any policy of general | ||
applicability, the Department
shall formulate and adopt such |
policy as a rule in accordance with the
provisions of the | ||
Illinois Administrative Procedure Act.
| ||
On and after July 1, 1987, no entity otherwise eligible | ||
under exemption
(c) of this Section shall make tax free | ||
purchases unless it has an active
exemption identification | ||
number issued by the Department.
| ||
"Serviceman" means any person who is engaged in the | ||
occupation of
making sales of service.
| ||
"Sale at Retail" means "sale at retail" as defined in the | ||
Retailers'
Occupation Tax Act.
| ||
"Supplier" means any person who makes sales of tangible | ||
personal
property to servicemen for the purpose of resale as an | ||
incident to a
sale of service.
| ||
(Source: P.A. 98-583, eff. 1-1-14.)
| ||
(35 ILCS 115/3-5)
| ||
Sec. 3-5. Exemptions. The following tangible personal | ||
property is
exempt from the tax imposed by this Act:
| ||
(1) Personal property sold by a corporation, society, | ||
association,
foundation, institution, or organization, other | ||
than a limited liability
company, that is organized and | ||
operated as a not-for-profit service enterprise
for the benefit | ||
of persons 65 years of age or older if the personal property
| ||
was not purchased by the enterprise for the purpose of resale | ||
by the
enterprise.
| ||
(2) Personal property purchased by a not-for-profit |
Illinois county fair
association for use in conducting, | ||
operating, or promoting the county fair.
| ||
(3) Personal property purchased by any not-for-profit
arts | ||
or cultural organization that establishes, by proof required by | ||
the
Department by
rule, that it has received an exemption under | ||
Section 501(c)(3) of the
Internal Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(4) Legal tender, currency, medallions, or gold or silver | ||
coinage
issued by the State of Illinois, the government of the | ||
United States of
America, or the government of any foreign | ||
country, and bullion.
| ||
(5) Until July 1, 2003 and beginning again on September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and
replacement parts, both new and | ||
used, and including that manufactured on
special order or | ||
purchased for lease, certified by the purchaser to be used
|
primarily for graphic arts production.
Equipment includes | ||
chemicals or chemicals acting as catalysts but only if
the
| ||
chemicals or chemicals acting as catalysts effect a direct and | ||
immediate change
upon a graphic arts product. Beginning on July | ||
1, 2017, graphic arts machinery and equipment is included in | ||
the manufacturing and assembling machinery and equipment | ||
exemption under Section 2 of this Act.
| ||
(6) Personal property sold by a teacher-sponsored student | ||
organization
affiliated with an elementary or secondary school | ||
located in Illinois.
| ||
(7) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (7).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle |
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 3-55.
| ||
(8) Until June 30, 2013, fuel and petroleum products sold | ||
to or used by an air common
carrier, certified by the carrier | ||
to be used for consumption, shipment,
or storage in the conduct | ||
of its business as an air common carrier, for
a flight destined | ||
for or returning from a location or locations
outside the | ||
United States without regard to previous or subsequent domestic
| ||
stopovers.
|
Beginning July 1, 2013, fuel and petroleum products sold to | ||
or used by an air carrier, certified by the carrier to be used | ||
for consumption, shipment, or storage in the conduct of its | ||
business as an air common carrier, for a flight that (i) is | ||
engaged in foreign trade or is engaged in trade between the | ||
United States and any of its possessions and (ii) transports at | ||
least one individual or package for hire from the city of | ||
origination to the city of final destination on the same | ||
aircraft, without regard to a change in the flight number of | ||
that aircraft. | ||
(9) Proceeds of mandatory service charges separately
| ||
stated on customers' bills for the purchase and consumption of | ||
food and
beverages, to the extent that the proceeds of the | ||
service charge are in fact
turned over as tips or as a | ||
substitute for tips to the employees who
participate directly | ||
in preparing, serving, hosting or cleaning up the
food or | ||
beverage function with respect to which the service charge is | ||
imposed.
| ||
(10) Until July 1, 2003, oil field exploration, drilling, | ||
and production
equipment,
including (i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles |
required to be registered under the Illinois
Vehicle Code.
| ||
(11) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that | ||
manufactured on
special order, certified by the purchaser to be | ||
used primarily for
photoprocessing, and including | ||
photoprocessing machinery and equipment
purchased for lease.
| ||
(12) Coal and aggregate exploration, mining, off-highway | ||
hauling,
processing,
maintenance, and reclamation equipment, | ||
including
replacement parts and equipment, and including
| ||
equipment
purchased for lease, but excluding motor vehicles | ||
required to be registered
under the Illinois Vehicle Code. The | ||
changes made to this Section by Public Act 97-767 apply on and | ||
after July 1, 2003, but no claim for credit or refund is | ||
allowed on or after August 16, 2013 (the effective date of | ||
Public Act 98-456)
for such taxes paid during the period | ||
beginning July 1, 2003 and ending on August 16, 2013 (the | ||
effective date of Public Act 98-456).
| ||
(13) Beginning January 1, 1992 and through June 30, 2016, | ||
food for human consumption that is to be consumed off the | ||
premises
where it is sold (other than alcoholic beverages, soft | ||
drinks and food that
has been prepared for immediate | ||
consumption) and prescription and
non-prescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use,
when purchased for use by a person receiving medical | ||
assistance under
Article V of the Illinois Public Aid Code who |
resides in a licensed
long-term care facility, as defined in | ||
the Nursing Home Care Act, or in a licensed facility as defined | ||
in the ID/DD Community Care Act, the MC/DD Act, or the | ||
Specialized Mental Health Rehabilitation Act of 2013.
| ||
(14) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(15) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (15) is exempt from the provisions | ||
of Section 3-55, and the exemption provided for under this item | ||
(15) applies for all periods beginning May 30, 1995, but no | ||
claim for credit or refund is allowed on or after January 1, | ||
2008 (the effective date of Public Act 95-88)
for such taxes | ||
paid during the period beginning May 30, 2000 and ending on | ||
January 1, 2008 (the effective date of Public Act 95-88).
| ||
(16) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients sold to a lessor | ||
who leases the
equipment, under a lease of one year or longer | ||
executed or in effect at the
time of the purchase, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of the | ||
Retailers' Occupation Tax Act.
|
(17) Personal property sold to a lessor who leases the
| ||
property, under a
lease of one year or longer executed or in | ||
effect at the time of the purchase,
to a governmental body
that | ||
has been issued an active tax exemption identification number | ||
by the
Department under Section 1g of the Retailers' Occupation | ||
Tax Act.
| ||
(18) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(19) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois |
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(20) Beginning July 1, 1999, game or game birds sold at a | ||
"game breeding
and
hunting preserve area" as that term is used
| ||
in the
Wildlife Code. This paragraph is exempt from the | ||
provisions
of
Section 3-55.
| ||
(21) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(22) Beginning January 1, 2000, personal property, | ||
including
food,
purchased through fundraising
events for the |
benefit of
a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school
districts if | ||
the events are
sponsored by an entity recognized by the school | ||
district that consists
primarily of volunteers and includes
| ||
parents and teachers of the school children. This paragraph | ||
does not apply
to fundraising
events (i) for the benefit of | ||
private home instruction or (ii)
for which the fundraising | ||
entity purchases the personal property sold at
the events from | ||
another individual or entity that sold the property for the
| ||
purpose of resale by the fundraising entity and that
profits | ||
from the sale to the
fundraising entity. This paragraph is | ||
exempt
from the provisions
of Section 3-55.
| ||
(23) Beginning January 1, 2000
and through December 31, | ||
2001, new or used automatic vending
machines that prepare and | ||
serve hot food and beverages, including coffee, soup,
and
other | ||
items, and replacement parts for these machines.
Beginning | ||
January 1,
2002 and through June 30, 2003, machines and parts | ||
for
machines used in commercial, coin-operated amusement
and | ||
vending business if a use or occupation tax is paid on the | ||
gross receipts
derived from
the use of the commercial, | ||
coin-operated amusement and vending machines.
This paragraph | ||
is exempt from the provisions of Section 3-55.
| ||
(24) Beginning
on the effective date of this amendatory Act | ||
of the 92nd General Assembly,
computers and communications | ||
equipment
utilized for any hospital purpose and equipment used | ||
in the diagnosis,
analysis, or treatment of hospital patients |
sold to a lessor who leases the
equipment, under a lease of one | ||
year or longer executed or in effect at the
time of the | ||
purchase, to a hospital that has been issued an active tax
| ||
exemption identification number by the Department under | ||
Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||
is exempt from the provisions of
Section 3-55.
| ||
(25) Beginning
on the effective date of this amendatory Act | ||
of the 92nd General Assembly,
personal property sold to a | ||
lessor who
leases the property, under a lease of one year or | ||
longer executed or in effect
at the time of the purchase, to a | ||
governmental body that has been issued an
active tax exemption | ||
identification number by the Department under Section 1g
of the | ||
Retailers' Occupation Tax Act. This paragraph is exempt from | ||
the
provisions of Section 3-55.
| ||
(26) Beginning on January 1, 2002 and through June 30, | ||
2016, tangible personal property
purchased
from an Illinois | ||
retailer by a taxpayer engaged in centralized purchasing
| ||
activities in Illinois who will, upon receipt of the property | ||
in Illinois,
temporarily store the property in Illinois (i) for | ||
the purpose of subsequently
transporting it outside this State | ||
for use or consumption thereafter solely
outside this State or | ||
(ii) for the purpose of being processed, fabricated, or
| ||
manufactured into, attached to, or incorporated into other | ||
tangible personal
property to be transported outside this State | ||
and thereafter used or consumed
solely outside this State. The | ||
Director of Revenue shall, pursuant to rules
adopted in |
accordance with the Illinois Administrative Procedure Act, | ||
issue a
permit to any taxpayer in good standing with the | ||
Department who is eligible for
the exemption under this | ||
paragraph (26). The permit issued under
this paragraph (26) | ||
shall authorize the holder, to the extent and
in the manner | ||
specified in the rules adopted under this Act, to purchase
| ||
tangible personal property from a retailer exempt from the | ||
taxes imposed by
this Act. Taxpayers shall maintain all | ||
necessary books and records to
substantiate the use and | ||
consumption of all such tangible personal property
outside of | ||
the State of Illinois.
| ||
(27) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 3-55.
| ||
(28) Tangible personal property sold to a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, but | ||
only if the legal title to the municipal convention hall is | ||
transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the time | ||
of the completion of the municipal convention hall or upon the |
retirement or redemption of any bonds or other debt instruments | ||
issued by the public-facilities corporation in connection with | ||
the development of the municipal convention hall. This | ||
exemption includes existing public-facilities corporations as | ||
provided in Section 11-65-25 of the Illinois Municipal Code. | ||
This paragraph is exempt from the provisions of Section 3-55. | ||
(29) Beginning January 1, 2010, materials, parts, | ||
equipment, components, and furnishings incorporated into or | ||
upon an aircraft as part of the modification, refurbishment, | ||
completion, replacement, repair, or maintenance of the | ||
aircraft. This exemption includes consumable supplies used in | ||
the modification, refurbishment, completion, replacement, | ||
repair, and maintenance of aircraft, but excludes any | ||
materials, parts, equipment, components, and consumable | ||
supplies used in the modification, replacement, repair, and | ||
maintenance of aircraft engines or power plants, whether such | ||
engines or power plants are installed or uninstalled upon any | ||
such aircraft. "Consumable supplies" include, but are not | ||
limited to, adhesive, tape, sandpaper, general purpose | ||
lubricants, cleaning solution, latex gloves, and protective | ||
films. This exemption applies only to the transfer of | ||
qualifying tangible personal property incident to the | ||
modification, refurbishment, completion, replacement, repair, | ||
or maintenance of an aircraft by persons who (i) hold an Air | ||
Agency Certificate and are empowered to operate an approved | ||
repair station by the Federal Aviation Administration, (ii) |
have a Class IV Rating, and (iii) conduct operations in | ||
accordance with Part 145 of the Federal Aviation Regulations. | ||
The exemption does not include aircraft operated by a | ||
commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part 129 | ||
of the Federal Aviation Regulations. The changes made to this | ||
paragraph (29) by Public Act 98-534 are declarative of existing | ||
law. | ||
(30) Beginning January 1, 2017, menstrual pads, tampons, | ||
and menstrual cups. | ||
(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||
98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||
7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
| ||
Section 35-20. The Retailers' Occupation Tax Act is amended | ||
by changing Sections 2-5 and 2-45 as follows:
| ||
(35 ILCS 120/2-5)
| ||
Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||
sale of
the following tangible personal property are exempt | ||
from the tax imposed
by this Act:
| ||
(1) Farm chemicals.
| ||
(2) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual |
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (2).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed, if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other | ||
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture |
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (2) is exempt
from the | ||
provisions of
Section 2-70.
| ||
(3) Until July 1, 2003, distillation machinery and | ||
equipment, sold as a
unit or kit,
assembled or installed by the | ||
retailer, certified by the user to be used
only for the | ||
production of ethyl alcohol that will be used for consumption
| ||
as motor fuel or as a component of motor fuel for the personal | ||
use of the
user, and not subject to sale or resale.
| ||
(4) Until July 1, 2003 and beginning again September 1, | ||
2004 through August 30, 2014, graphic arts machinery and | ||
equipment, including
repair and
replacement parts, both new and | ||
used, and including that manufactured on
special order or | ||
purchased for lease, certified by the purchaser to be used
| ||
primarily for graphic arts production.
Equipment includes | ||
chemicals or
chemicals acting as catalysts but only if
the | ||
chemicals or chemicals acting as catalysts effect a direct and | ||
immediate
change upon a
graphic arts product. Beginning on July | ||
1, 2017, graphic arts machinery and equipment is included in | ||
the manufacturing and assembling machinery and equipment | ||
exemption under paragraph (14).
| ||
(5) A motor vehicle that is used for automobile renting, as | ||
defined in the Automobile Renting Occupation and Use Tax Act. | ||
This paragraph is exempt from
the provisions of Section 2-70.
|
(6) Personal property sold by a teacher-sponsored student | ||
organization
affiliated with an elementary or secondary school | ||
located in Illinois.
| ||
(7) Until July 1, 2003, proceeds of that portion of the | ||
selling price of
a passenger car the
sale of which is subject | ||
to the Replacement Vehicle Tax.
| ||
(8) Personal property sold to an Illinois county fair | ||
association for
use in conducting, operating, or promoting the | ||
county fair.
| ||
(9) Personal property sold to a not-for-profit arts
or | ||
cultural organization that establishes, by proof required by | ||
the Department
by
rule, that it has received an exemption under | ||
Section 501(c)(3) of the
Internal Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, | ||
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(10) Personal property sold by a corporation, society, | ||
association,
foundation, institution, or organization, other |
than a limited liability
company, that is organized and | ||
operated as a not-for-profit service enterprise
for the benefit | ||
of persons 65 years of age or older if the personal property
| ||
was not purchased by the enterprise for the purpose of resale | ||
by the
enterprise.
| ||
(11) Personal property sold to a governmental body, to a | ||
corporation,
society, association, foundation, or institution | ||
organized and operated
exclusively for charitable, religious, | ||
or educational purposes, or to a
not-for-profit corporation, | ||
society, association, foundation, institution,
or organization | ||
that has no compensated officers or employees and that is
| ||
organized and operated primarily for the recreation of persons | ||
55 years of
age or older. A limited liability company may | ||
qualify for the exemption under
this paragraph only if the | ||
limited liability company is organized and operated
| ||
exclusively for educational purposes. On and after July 1, | ||
1987, however, no
entity otherwise eligible for this exemption | ||
shall make tax-free purchases
unless it has an active | ||
identification number issued by the Department.
| ||
(12) Tangible personal property sold to
interstate | ||
carriers
for hire for use as
rolling stock moving in interstate | ||
commerce or to lessors under leases of
one year or longer | ||
executed or in effect at the time of purchase by
interstate | ||
carriers for hire for use as rolling stock moving in interstate
| ||
commerce and equipment operated by a telecommunications | ||
provider, licensed as a
common carrier by the Federal |
Communications Commission, which is permanently
installed in | ||
or affixed to aircraft moving in interstate commerce.
| ||
(12-5) On and after July 1, 2003 and through June 30, 2004, | ||
motor vehicles of the second division
with a gross vehicle | ||
weight in excess of 8,000 pounds
that
are
subject to the | ||
commercial distribution fee imposed under Section 3-815.1 of
| ||
the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||
through June 30, 2005, the use in this State of motor vehicles | ||
of the second division: (i) with a gross vehicle weight rating | ||
in excess of 8,000 pounds; (ii) that are subject to the | ||
commercial distribution fee imposed under Section 3-815.1 of | ||
the Illinois Vehicle Code; and (iii) that are primarily used | ||
for commercial purposes. Through June 30, 2005, this
exemption | ||
applies to repair and replacement parts added
after the
initial | ||
purchase of such a motor vehicle if that motor vehicle is used | ||
in a
manner that
would qualify for the rolling stock exemption | ||
otherwise provided for in this
Act. For purposes of this | ||
paragraph, "used for commercial purposes" means the | ||
transportation of persons or property in furtherance of any | ||
commercial or industrial enterprise whether for-hire or not.
| ||
(13) Proceeds from sales to owners, lessors, or
shippers of
| ||
tangible personal property that is utilized by interstate | ||
carriers for
hire for use as rolling stock moving in interstate | ||
commerce
and equipment operated by a telecommunications | ||
provider, licensed as a
common carrier by the Federal | ||
Communications Commission, which is
permanently installed in |
or affixed to aircraft moving in interstate commerce.
| ||
(14) Machinery and equipment that will be used by the | ||
purchaser, or a
lessee of the purchaser, primarily in the | ||
process of manufacturing or
assembling tangible personal | ||
property for wholesale or retail sale or
lease, whether the | ||
sale or lease is made directly by the manufacturer or by
some | ||
other person, whether the materials used in the process are | ||
owned by
the manufacturer or some other person, or whether the | ||
sale or lease is made
apart from or as an incident to the | ||
seller's engaging in the service
occupation of producing | ||
machines, tools, dies, jigs, patterns, gauges, or
other similar | ||
items of no commercial value on special order for a particular
| ||
purchaser. The exemption provided by this paragraph (14) does | ||
not include machinery and equipment used in (i) the generation | ||
of electricity for wholesale or retail sale; (ii) the | ||
generation or treatment of natural or artificial gas for | ||
wholesale or retail sale that is delivered to customers through | ||
pipes, pipelines, or mains; or (iii) the treatment of water for | ||
wholesale or retail sale that is delivered to customers through | ||
pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||
are declaratory of existing law as to the meaning and scope of | ||
this exemption. Beginning on July 1, 2017, the exemption | ||
provided by this paragraph (14) includes, but is not limited | ||
to, graphic arts machinery and equipment, as defined in | ||
paragraph (4) of this Section.
| ||
(15) Proceeds of mandatory service charges separately |
stated on
customers' bills for purchase and consumption of food | ||
and beverages, to the
extent that the proceeds of the service | ||
charge are in fact turned over as
tips or as a substitute for | ||
tips to the employees who participate directly
in preparing, | ||
serving, hosting or cleaning up the food or beverage function
| ||
with respect to which the service charge is imposed.
| ||
(16) Petroleum products sold to a purchaser if the seller
| ||
is prohibited by federal law from charging tax to the | ||
purchaser.
| ||
(17) Tangible personal property sold to a common carrier by | ||
rail or
motor that
receives the physical possession of the | ||
property in Illinois and that
transports the property, or | ||
shares with another common carrier in the
transportation of the | ||
property, out of Illinois on a standard uniform bill
of lading | ||
showing the seller of the property as the shipper or consignor | ||
of
the property to a destination outside Illinois, for use | ||
outside Illinois.
| ||
(18) Legal tender, currency, medallions, or gold or silver | ||
coinage
issued by the State of Illinois, the government of the | ||
United States of
America, or the government of any foreign | ||
country, and bullion.
| ||
(19) Until July 1 2003, oil field exploration, drilling, | ||
and production
equipment, including
(i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any |
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and | ||
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(20) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that | ||
manufactured on
special order, certified by the purchaser to be | ||
used primarily for
photoprocessing, and including | ||
photoprocessing machinery and equipment
purchased for lease.
| ||
(21) Coal and aggregate exploration, mining, off-highway | ||
hauling,
processing,
maintenance, and reclamation equipment, | ||
including
replacement parts and equipment, and including
| ||
equipment purchased for lease, but excluding motor vehicles | ||
required to be
registered under the Illinois Vehicle Code. The | ||
changes made to this Section by Public Act 97-767 apply on and | ||
after July 1, 2003, but no claim for credit or refund is | ||
allowed on or after August 16, 2013 (the effective date of | ||
Public Act 98-456)
for such taxes paid during the period | ||
beginning July 1, 2003 and ending on August 16, 2013 (the | ||
effective date of Public Act 98-456).
| ||
(22) Until June 30, 2013, fuel and petroleum products sold | ||
to or used by an air carrier,
certified by the carrier to be | ||
used for consumption, shipment, or storage
in the conduct of | ||
its business as an air common carrier, for a flight
destined | ||
for or returning from a location or locations
outside the | ||
United States without regard to previous or subsequent domestic
|
stopovers.
| ||
Beginning July 1, 2013, fuel and petroleum products sold to | ||
or used by an air carrier, certified by the carrier to be used | ||
for consumption, shipment, or storage in the conduct of its | ||
business as an air common carrier, for a flight that (i) is | ||
engaged in foreign trade or is engaged in trade between the | ||
United States and any of its possessions and (ii) transports at | ||
least one individual or package for hire from the city of | ||
origination to the city of final destination on the same | ||
aircraft, without regard to a change in the flight number of | ||
that aircraft. | ||
(23) A transaction in which the purchase order is received | ||
by a florist
who is located outside Illinois, but who has a | ||
florist located in Illinois
deliver the property to the | ||
purchaser or the purchaser's donee in Illinois.
| ||
(24) Fuel consumed or used in the operation of ships, | ||
barges, or vessels
that are used primarily in or for the | ||
transportation of property or the
conveyance of persons for | ||
hire on rivers bordering on this State if the
fuel is delivered | ||
by the seller to the purchaser's barge, ship, or vessel
while | ||
it is afloat upon that bordering river.
| ||
(25) Except as provided in item (25-5) of this Section, a
| ||
motor vehicle sold in this State to a nonresident even though | ||
the
motor vehicle is delivered to the nonresident in this | ||
State, if the motor
vehicle is not to be titled in this State, | ||
and if a drive-away permit
is issued to the motor vehicle as |
provided in Section 3-603 of the Illinois
Vehicle Code or if | ||
the nonresident purchaser has vehicle registration
plates to | ||
transfer to the motor vehicle upon returning to his or her home
| ||
state. The issuance of the drive-away permit or having
the
| ||
out-of-state registration plates to be transferred is prima | ||
facie evidence
that the motor vehicle will not be titled in | ||
this State.
| ||
(25-5) The exemption under item (25) does not apply if the | ||
state in which the motor vehicle will be titled does not allow | ||
a reciprocal exemption for a motor vehicle sold and delivered | ||
in that state to an Illinois resident but titled in Illinois. | ||
The tax collected under this Act on the sale of a motor vehicle | ||
in this State to a resident of another state that does not | ||
allow a reciprocal exemption shall be imposed at a rate equal | ||
to the state's rate of tax on taxable property in the state in | ||
which the purchaser is a resident, except that the tax shall | ||
not exceed the tax that would otherwise be imposed under this | ||
Act. At the time of the sale, the purchaser shall execute a | ||
statement, signed under penalty of perjury, of his or her | ||
intent to title the vehicle in the state in which the purchaser | ||
is a resident within 30 days after the sale and of the fact of | ||
the payment to the State of Illinois of tax in an amount | ||
equivalent to the state's rate of tax on taxable property in | ||
his or her state of residence and shall submit the statement to | ||
the appropriate tax collection agency in his or her state of | ||
residence. In addition, the retailer must retain a signed copy |
of the statement in his or her records. Nothing in this item | ||
shall be construed to require the removal of the vehicle from | ||
this state following the filing of an intent to title the | ||
vehicle in the purchaser's state of residence if the purchaser | ||
titles the vehicle in his or her state of residence within 30 | ||
days after the date of sale. The tax collected under this Act | ||
in accordance with this item (25-5) shall be proportionately | ||
distributed as if the tax were collected at the 6.25% general | ||
rate imposed under this Act.
| ||
(25-7) Beginning on July 1, 2007, no tax is imposed under | ||
this Act on the sale of an aircraft, as defined in Section 3 of | ||
the Illinois Aeronautics Act, if all of the following | ||
conditions are met: | ||
(1) the aircraft leaves this State within 15 days after | ||
the later of either the issuance of the final billing for | ||
the sale of the aircraft, or the authorized approval for | ||
return to service, completion of the maintenance record | ||
entry, and completion of the test flight and ground test | ||
for inspection, as required by 14 C.F.R. 91.407; | ||
(2) the aircraft is not based or registered in this | ||
State after the sale of the aircraft; and | ||
(3) the seller retains in his or her books and records | ||
and provides to the Department a signed and dated | ||
certification from the purchaser, on a form prescribed by | ||
the Department, certifying that the requirements of this | ||
item (25-7) are met. The certificate must also include the |
name and address of the purchaser, the address of the | ||
location where the aircraft is to be titled or registered, | ||
the address of the primary physical location of the | ||
aircraft, and other information that the Department may | ||
reasonably require. | ||
For purposes of this item (25-7): | ||
"Based in this State" means hangared, stored, or otherwise | ||
used, excluding post-sale customizations as defined in this | ||
Section, for 10 or more days in each 12-month period | ||
immediately following the date of the sale of the aircraft. | ||
"Registered in this State" means an aircraft registered | ||
with the Department of Transportation, Aeronautics Division, | ||
or titled or registered with the Federal Aviation | ||
Administration to an address located in this State. | ||
This paragraph (25-7) is exempt from the provisions
of
| ||
Section 2-70.
| ||
(26) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
| ||
(27) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (27) is exempt from the provisions | ||
of Section 2-70, and the exemption provided for under this item | ||
(27) applies for all periods beginning May 30, 1995, but no |
claim for credit or refund is allowed on or after January 1, | ||
2008 (the effective date of Public Act 95-88)
for such taxes | ||
paid during the period beginning May 30, 2000 and ending on | ||
January 1, 2008 (the effective date of Public Act 95-88).
| ||
(28) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients sold to a lessor | ||
who leases the
equipment, under a lease of one year or longer | ||
executed or in effect at the
time of the purchase, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of | ||
this Act.
| ||
(29) Personal property sold to a lessor who leases the
| ||
property, under a
lease of one year or longer executed or in | ||
effect at the time of the purchase,
to a governmental body
that | ||
has been issued an active tax exemption identification number | ||
by the
Department under Section 1g of this Act.
| ||
(30) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
|
who reside within the declared disaster area.
| ||
(31) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(32) Beginning July 1, 1999, game or game birds sold at a | ||
"game breeding
and
hunting preserve area" as that term is used
| ||
in the
Wildlife Code. This paragraph is exempt from the | ||
provisions
of
Section 2-70.
| ||
(33) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
|
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(34) Beginning January 1, 2000, personal property, | ||
including food, purchased
through fundraising events for the | ||
benefit of a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school districts if
| ||
the events are sponsored by an entity recognized by the school | ||
district that
consists primarily of volunteers and includes | ||
parents and teachers of the
school children. This paragraph | ||
does not apply to fundraising events (i) for
the benefit of | ||
private home instruction or (ii) for which the fundraising
| ||
entity purchases the personal property sold at the events from | ||
another
individual or entity that sold the property for the | ||
purpose of resale by the
fundraising entity and that profits | ||
from the sale to the fundraising entity.
This paragraph is | ||
exempt from the provisions of Section 2-70.
| ||
(35) Beginning January 1, 2000 and through December 31, | ||
2001, new or used
automatic vending machines that prepare and | ||
serve hot food and beverages,
including coffee, soup, and other |
items, and replacement parts for these
machines. Beginning | ||
January 1, 2002 and through June 30, 2003, machines
and parts | ||
for machines used in
commercial, coin-operated amusement and | ||
vending business if a use or occupation
tax is paid on the | ||
gross receipts derived from the use of the commercial,
| ||
coin-operated amusement and vending machines. This paragraph | ||
is exempt from
the provisions of Section 2-70.
| ||
(35-5) Beginning August 23, 2001 and through June 30, 2016, | ||
food for human consumption that is to be consumed off
the | ||
premises where it is sold (other than alcoholic beverages, soft | ||
drinks,
and food that has been prepared for immediate | ||
consumption) and prescription
and nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human | ||
use, when
purchased for use by a person receiving medical | ||
assistance under Article V of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act, or a licensed facility as defined in | ||
the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||
Mental Health Rehabilitation Act of 2013.
| ||
(36) Beginning August 2, 2001, computers and | ||
communications equipment
utilized for any hospital purpose and | ||
equipment used in the diagnosis,
analysis, or treatment of | ||
hospital patients sold to a lessor who leases the
equipment, | ||
under a lease of one year or longer executed or in effect at | ||
the
time of the purchase, to a hospital that has been issued an |
active tax
exemption identification number by the Department | ||
under Section 1g of this Act.
This paragraph is exempt from the | ||
provisions of Section 2-70.
| ||
(37) Beginning August 2, 2001, personal property sold to a | ||
lessor who
leases the property, under a lease of one year or | ||
longer executed or in effect
at the time of the purchase, to a | ||
governmental body that has been issued an
active tax exemption | ||
identification number by the Department under Section 1g
of | ||
this Act. This paragraph is exempt from the provisions of | ||
Section 2-70.
| ||
(38) Beginning on January 1, 2002 and through June 30, | ||
2016, tangible personal property purchased
from an Illinois | ||
retailer by a taxpayer engaged in centralized purchasing
| ||
activities in Illinois who will, upon receipt of the property | ||
in Illinois,
temporarily store the property in Illinois (i) for | ||
the purpose of subsequently
transporting it outside this State | ||
for use or consumption thereafter solely
outside this State or | ||
(ii) for the purpose of being processed, fabricated, or
| ||
manufactured into, attached to, or incorporated into other | ||
tangible personal
property to be transported outside this State | ||
and thereafter used or consumed
solely outside this State. The | ||
Director of Revenue shall, pursuant to rules
adopted in | ||
accordance with the Illinois Administrative Procedure Act, | ||
issue a
permit to any taxpayer in good standing with the | ||
Department who is eligible for
the exemption under this | ||
paragraph (38). The permit issued under
this paragraph (38) |
shall authorize the holder, to the extent and
in the manner | ||
specified in the rules adopted under this Act, to purchase
| ||
tangible personal property from a retailer exempt from the | ||
taxes imposed by
this Act. Taxpayers shall maintain all | ||
necessary books and records to
substantiate the use and | ||
consumption of all such tangible personal property
outside of | ||
the State of Illinois.
| ||
(39) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 2-70.
| ||
(40) Beginning January 1, 2010, materials, parts, | ||
equipment, components, and furnishings incorporated into or | ||
upon an aircraft as part of the modification, refurbishment, | ||
completion, replacement, repair, or maintenance of the | ||
aircraft. This exemption includes consumable supplies used in | ||
the modification, refurbishment, completion, replacement, | ||
repair, and maintenance of aircraft, but excludes any | ||
materials, parts, equipment, components, and consumable | ||
supplies used in the modification, replacement, repair, and | ||
maintenance of aircraft engines or power plants, whether such | ||
engines or power plants are installed or uninstalled upon any | ||
such aircraft. "Consumable supplies" include, but are not |
limited to, adhesive, tape, sandpaper, general purpose | ||
lubricants, cleaning solution, latex gloves, and protective | ||
films. This exemption applies only to the sale of qualifying | ||
tangible personal property to persons who modify, refurbish, | ||
complete, replace, or maintain an aircraft and who (i) hold an | ||
Air Agency Certificate and are empowered to operate an approved | ||
repair station by the Federal Aviation Administration, (ii) | ||
have a Class IV Rating, and (iii) conduct operations in | ||
accordance with Part 145 of the Federal Aviation Regulations. | ||
The exemption does not include aircraft operated by a | ||
commercial air carrier providing scheduled passenger air | ||
service pursuant to authority issued under Part 121 or Part 129 | ||
of the Federal Aviation Regulations. The changes made to this | ||
paragraph (40) by Public Act 98-534 are declarative of existing | ||
law. | ||
(41) Tangible personal property sold to a | ||
public-facilities corporation, as described in Section | ||
11-65-10 of the Illinois Municipal Code, for purposes of | ||
constructing or furnishing a municipal convention hall, but | ||
only if the legal title to the municipal convention hall is | ||
transferred to the municipality without any further | ||
consideration by or on behalf of the municipality at the time | ||
of the completion of the municipal convention hall or upon the | ||
retirement or redemption of any bonds or other debt instruments | ||
issued by the public-facilities corporation in connection with | ||
the development of the municipal convention hall. This |
exemption includes existing public-facilities corporations as | ||
provided in Section 11-65-25 of the Illinois Municipal Code. | ||
This paragraph is exempt from the provisions of Section 2-70. | ||
(42) Beginning January 1, 2017, menstrual pads, tampons, | ||
and menstrual cups. | ||
(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||
98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||
1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||
7-29-15; 99-855, eff. 8-19-16.)
| ||
(35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| ||
Sec. 2-45. Manufacturing and assembly exemption. The | ||
manufacturing
and assembly machinery and equipment exemption | ||
includes machinery
and equipment that replaces machinery
and | ||
equipment in an existing manufacturing facility as well as | ||
machinery
and equipment that are for use in an expanded or new
| ||
manufacturing facility.
| ||
The machinery and equipment exemption also includes | ||
machinery
and equipment used in the
general maintenance or | ||
repair of exempt machinery and equipment or for
in-house | ||
manufacture of exempt machinery and equipment.
Beginning on | ||
July 1, 2017, the manufacturing and assembling machinery and | ||
equipment exemption also includes graphic arts machinery and | ||
equipment, as defined in paragraph (4) of Section 2-5. The | ||
machinery and equipment exemption does not include machinery | ||
and equipment used in (i) the generation of electricity for |
wholesale or retail sale; (ii) the generation or treatment of | ||
natural or artificial gas for wholesale or retail sale that is | ||
delivered to customers through pipes, pipelines, or mains; or | ||
(iii) the treatment of water for wholesale or retail sale that | ||
is delivered to customers through pipes, pipelines, or mains. | ||
The provisions of this amendatory Act of the 98th General | ||
Assembly are declaratory of existing law as to the meaning and | ||
scope of this exemption. For the purposes of this exemption, | ||
terms have the following meanings:
| ||
(1) "Manufacturing process" means the production of an | ||
article of
tangible personal property, whether the article | ||
is a finished product or an
article for use in the process | ||
of manufacturing or assembling a different
article of | ||
tangible personal property, by a procedure commonly | ||
regarded as
manufacturing, processing, fabricating, or | ||
refining that changes some
existing material or materials | ||
into a material with a different form, use,
or name. In | ||
relation to a recognized integrated business composed of a
| ||
series of operations that collectively constitute | ||
manufacturing, or
individually constitute manufacturing | ||
operations, the manufacturing process
commences with the | ||
first operation or stage of production in the series and
| ||
does not end until the completion of the final product in | ||
the last
operation or stage of production in the series. | ||
For purposes of this
exemption, photoprocessing is a | ||
manufacturing process of tangible personal
property for |
wholesale or retail sale.
| ||
(2) "Assembling process" means the production of an | ||
article of
tangible personal property, whether the article | ||
is a finished product or an
article for use in the process | ||
of manufacturing or assembling a different
article of | ||
tangible personal property, by the combination of existing
| ||
materials in a manner commonly regarded as assembling that | ||
results in a
material of a different form, use, or name.
| ||
(3) "Machinery" means major mechanical machines or | ||
major components of
those machines contributing to a | ||
manufacturing or assembling process.
| ||
(4) "Equipment" includes an independent device or tool | ||
separate from
machinery but essential to an integrated | ||
manufacturing or assembly process;
including computers | ||
used primarily in a manufacturer's computer assisted | ||
design, computer assisted manufacturing
(CAD/CAM) system; | ||
any subunit or assembly comprising a component of any
| ||
machinery or auxiliary, adjunct, or attachment parts of | ||
machinery, such as
tools, dies, jigs, fixtures, patterns, | ||
and molds; and any parts that
require periodic replacement | ||
in the course of normal operation; but does
not include | ||
hand tools. Equipment includes chemicals or chemicals | ||
acting as
catalysts but only if
the chemicals or chemicals | ||
acting as catalysts effect a direct and
immediate change | ||
upon a
product being manufactured or assembled for | ||
wholesale or retail sale or
lease.
|
(5) "Production related tangible personal property" | ||
means all tangible personal property that is used or | ||
consumed by the purchaser in a manufacturing facility in | ||
which a manufacturing process takes place and includes, | ||
without limitation, tangible personal property that is | ||
purchased for incorporation into real estate within a | ||
manufacturing facility and tangible personal property that | ||
is used or consumed in activities such as research and | ||
development, preproduction material handling, receiving, | ||
quality control, inventory control, storage, staging, and | ||
packaging for shipping and transportation purposes. | ||
"Production related tangible personal property" does not | ||
include (i) tangible personal property that is used, within | ||
or without a manufacturing facility, in sales, purchasing, | ||
accounting, fiscal management, marketing, personnel | ||
recruitment or selection, or landscaping or (ii) tangible | ||
personal property that is required to be titled or | ||
registered with a department, agency, or unit of federal, | ||
State, or local government.
| ||
The manufacturing and assembling machinery and equipment | ||
exemption includes production related tangible personal | ||
property that is purchased on or after July 1, 2007 and on or | ||
before June 30, 2008. The exemption for production related | ||
tangible personal property is subject to both of the following | ||
limitations: | ||
(1) The maximum amount of the exemption for any one |
taxpayer may not exceed 5% of the purchase price of | ||
production related tangible personal property that is | ||
purchased on or after July 1, 2007 and on or before June | ||
30, 2008. A credit under Section 3-85 of this Act may not | ||
be earned by the purchase of production related tangible | ||
personal property for which an exemption is received under | ||
this Section. | ||
(2) The maximum aggregate amount of the exemptions for | ||
production related tangible personal property awarded | ||
under this Act and the Use
Tax Act to all taxpayers may not | ||
exceed $10,000,000. If the claims for the exemption exceed | ||
$10,000,000, then the Department shall reduce the amount of | ||
the exemption to each taxpayer on a pro rata basis. | ||
The Department may adopt rules to implement and administer the | ||
exemption for production related tangible personal property. | ||
The manufacturing and assembling machinery and equipment | ||
exemption
includes the sale of materials to a purchaser who | ||
produces exempted types
of machinery, equipment, or tools and | ||
who rents or leases that machinery,
equipment, or tools to a | ||
manufacturer of tangible personal property. This
exemption | ||
also includes the sale of materials to a purchaser who | ||
manufactures
those materials into an exempted type of | ||
machinery, equipment, or tools
that the purchaser uses himself | ||
or herself in the manufacturing of tangible
personal property. | ||
The purchaser of the machinery and equipment who has an
active | ||
resale registration number shall furnish that number to the |
seller
at the time of purchase. A purchaser of the machinery, | ||
equipment, and
tools without an active resale registration | ||
number shall furnish to the
seller a certificate of exemption | ||
for each transaction stating facts
establishing the exemption | ||
for that transaction, and that certificate shall
be available | ||
to the Department for inspection or audit. Informal
rulings, | ||
opinions, or letters issued by the Department in response to an
| ||
inquiry or request for an opinion from any person regarding the | ||
coverage and
applicability of this exemption to specific | ||
devices shall be published,
maintained as a public record,
and | ||
made available for public inspection and copying. If the | ||
informal
ruling, opinion, or letter contains trade secrets or | ||
other confidential
information, where possible, the Department | ||
shall delete that information
before publication. Whenever | ||
informal rulings, opinions, or letters
contain a policy of | ||
general applicability, the Department shall
formulate and | ||
adopt that policy as a rule in accordance with the Illinois
| ||
Administrative Procedure Act.
| ||
The manufacturing and assembling machinery and equipment
| ||
exemption is exempt from the provisions of Section 2-70. | ||
(Source: P.A. 98-583, eff. 1-1-14.)
| ||
ARTICLE 99. EFFECTIVE DATE
| ||
Section 99-999. Effective date. This Act takes effect upon | ||
becoming law, except that Articles 1, 15, 17, and 25 take | ||
effect on January 1, 2018.
|