Public Act 93-0022
SB774 Enrolled LRB093 03259 RCE 03276 b
AN ACT concerning taxation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The State Finance Act is amended by changing
Section 8.20 as follows:
(30 ILCS 105/8.20) (from Ch. 127, par. 144.20)
Sec. 8.20. Appropriations for the ordinary and
contingent expenses of the Illinois Liquor Control Commission
shall be paid from the Dram Shop Fund. Beginning June 30,
1990 and on June 30 of each subsequent year through June 29,
2003, any balance over $5,000,000 remaining in the Dram Shop
Fund shall be credited to State liquor licensees and applied
against their fees for State liquor licenses for the
following year. The amount credited to each licensee shall
be a proportion of the balance in the Dram Shop Fund that is
the same as the proportion of the license fee paid by the
licensee under Section 5-3 of the Liquor Control Act of 1934,
as now or hereafter amended, for the period in which the
balance was accumulated to the aggregate fees paid by all
licensees during that period.
In addition to any other permitted use of moneys in the
Fund, and notwithstanding any restriction on the use of the
Fund, moneys in the Dram Shop Fund may be transferred to the
General Revenue Fund as authorized by Public Act 87-14. The
General Assembly finds that an excess of moneys existed in
the Fund on July 30, 1991, and the Governor's order of July
30, 1991, requesting the Comptroller and Treasurer to
transfer an amount from the Fund to the General Revenue Fund
is hereby validated.
(Source: P.A. 90-372, eff. 7-1-98; 91-25, eff. 6-9-99.)
Section 5. The Retailers' Occupation Tax Act is amended
by changing Section 3 as follows:
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person
engaged in the business of selling tangible personal property
at retail in this State during the preceding calendar month
shall file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during
the preceding calendar month or quarter, as the case may
be, from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the
preceding calendar month or quarter on charge and time
sales of tangible personal property, and from services
furnished, by him prior to the month or quarter for which
the return is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the
basis of which the tax is imposed;
7. The amount of credit provided in Section 2d of
this Act;
8. The amount of tax due;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to
be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
A retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer as provided in Section
3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount
claimed in the certification, not to exceed 6.25% of the
receipts subject to tax from a qualifying purchase.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter.
The taxpayer shall also file a return with the Department for
each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business
from which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of
this Act;
5. The amount of tax due; and
6. Such other reasonable information as the
Department may require.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged
in the business of selling, at retail, alcoholic liquor
shall file a statement with the Department of Revenue, in a
format and at a time prescribed by the Department, showing
the total amount paid for alcoholic liquor purchased during
the preceding month and such other information as is
reasonably required by the Department. The Department may
adopt rules to require that this statement be filed in an
electronic or telephonic format. Such rules may provide for
exceptions from the filing requirements of this paragraph.
For the purposes of this paragraph, the term "alcoholic
liquor" shall have the meaning prescribed in the Liquor
Control Act of 1934.
Beginning on October 1, 2003, every distributor,
importing distributor, and manufacturer of alcoholic liquor
as defined in the Liquor Control Act of 1934, shall file a
statement with the Department of Revenue, no later than the
10th day of the month for the preceding month during which
transactions occurred, by electronic means, showing the total
amount of gross receipts from the sale of alcoholic liquor
sold or distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other
information reasonably required by the Department. A copy of
the monthly statement shall be sent to the retailer no later
than the 10th day of the month for the preceding month during
which transactions occurred.
If a total amount of less than $1 is payable, refundable
or creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents
or more.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who
has an average monthly tax liability of $100,000 or more
shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October
1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of
the Department by electronic funds transfer. The term
"annual tax liability" shall be the sum of the taxpayer's
liabilities under this Act, and under all other State and
local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year. The
term "average monthly tax liability" shall be the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by
the Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who
has a tax liability in the amount set forth in subsection (b)
of Section 2505-210 of the Department of Revenue Law shall
make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers
required to make payments by electronic funds transfer shall
make those payments for a minimum of one year beginning on
October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic
funds transfer and any taxpayers authorized to voluntarily
make payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on
any return or other document under this Act shall, if such
amount is not a whole-dollar amount, be increased to the
nearest whole-dollar amount in any case where the fractional
part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a
dollar is less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of
a given year being due by October 20 of such year, and with
the return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly
or quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January
20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act
concerning the time within which a retailer may file his
return, in the case of any retailer who ceases to engage in a
kind of business which makes him responsible for filing
returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one
month after discontinuing such business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered
with an agency of this State, every retailer selling this
kind of tangible personal property shall file, with the
Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible
personal property which the retailer sells, except that if,
in the same transaction, (i) a retailer of aircraft,
watercraft, motor vehicles or trailers transfers more than
one aircraft, watercraft, motor vehicle or trailer to another
aircraft, watercraft, motor vehicle retailer or trailer
retailer for the purpose of resale or (ii) a retailer of
aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 2-5 of this Act, then that seller may
report the transfer of all aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft"
means a Class 2, Class 3, or Class 4 watercraft as defined in
Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard
motor.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation
tax liability is required to be reported, and is reported, on
such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of The Illinois
Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of
the selling price including the amount allowed by the
retailer for traded-in property, if any; the amount allowed
by the retailer for the traded-in tangible personal property,
if any, to the extent to which Section 1 of this Act allows
an exemption for the value of traded-in property; the balance
payable after deducting such trade-in allowance from the
total selling price; the amount of tax due from the retailer
with respect to such transaction; the amount of tax collected
from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that
particular instance, if that is claimed to be the fact); the
place and date of the sale; a sufficient identification of
the property sold; such other information as is required in
Section 5-402 of The Illinois Vehicle Code, and such other
information as the Department may reasonably require.
The transaction reporting return in the case of
watercraft or aircraft must show the name and address of the
seller; the name and address of the purchaser; the amount of
the selling price including the amount allowed by the
retailer for traded-in property, if any; the amount allowed
by the retailer for the traded-in tangible personal property,
if any, to the extent to which Section 1 of this Act allows
an exemption for the value of traded-in property; the balance
payable after deducting such trade-in allowance from the
total selling price; the amount of tax due from the retailer
with respect to such transaction; the amount of tax collected
from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that
particular instance, if that is claimed to be the fact); the
place and date of the sale, a sufficient identification of
the property sold, and such other information as the
Department may reasonably require.
Such transaction reporting return shall be filed not
later than 20 days after the day of delivery of the item that
is being sold, but may be filed by the retailer at any time
sooner than that if he chooses to do so. The transaction
reporting return and tax remittance or proof of exemption
from the Illinois use tax may be transmitted to the
Department by way of the State agency with which, or State
officer with whom the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of
title or registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user
has paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department
before the retailer is willing to take these actions and such
user has not paid the tax to the retailer, such user may
certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such
certification) transmit the information required by the
transaction reporting return and the remittance for tax or
proof of exemption directly to the Department and obtain his
tax receipt or exemption determination, in which event the
transaction reporting return and tax remittance (if a tax
payment was required) shall be credited by the Department to
the proper retailer's account with the Department, but
without the 2.1% or 1.75% discount provided for in this
Section being allowed. When the user pays the tax directly
to the Department, he shall pay the tax in the same amount
and in the same form in which it would be remitted if the tax
had been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal
property returned to the seller, shall be allowed as a
deduction under subdivision 5 of his monthly or quarterly
return, as the case may be, in case the seller had
theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had
paid the tax imposed by this Act with respect to such
receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing
such return, pay to the Department the amount of tax imposed
by this Act less a discount of 2.1% prior to January 1, 1990
and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made
pursuant to Section 2d of this Act shall be included in the
amount on which such 2.1% or 1.75% discount is computed. In
the case of retailers who report and pay the tax on a
transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd
and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this
Act, the Use Tax Act, the Service Occupation Tax Act, and the
Service Use Tax Act, excluding any liability for prepaid
sales tax to be remitted in accordance with Section 2d of
this Act, was $20,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payment to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. If the month during which such tax liability is
incurred began prior to January 1, 1985, each payment shall
be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department
not to exceed 1/4 of the average monthly liability of the
taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability
and the month of lowest liability in such 4 quarter period).
If the month during which such tax liability is incurred
begins on or after January 1, 1985 and prior to January 1,
1987, each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 27.5% of the
taxpayer's liability for the same calendar month of the
preceding year. If the month during which such tax liability
is incurred begins on or after January 1, 1987 and prior to
January 1, 1988, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar
month of the preceding year. If the month during which such
tax liability is incurred begins on or after January 1, 1988,
and prior to January 1, 1989, or begins on or after January
1, 1996, each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. If the month during which such tax liability
is incurred begins on or after January 1, 1989, and prior to
January 1, 1996, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 25%
of the taxpayer's liability for the same calendar month of
the preceding year or 100% of the taxpayer's actual liability
for the quarter monthly reporting period. The amount of such
quarter monthly payments shall be credited against the final
tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $10,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding
complete calendar quarter period is less than $10,000.
However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. On and after October 1, 2000,
once applicable, the requirement of the making of quarter
monthly payments to the Department by taxpayers having an
average monthly tax liability of $20,000 or more as
determined in the manner provided above shall continue until
such taxpayer's average monthly liability to the Department
during the preceding 4 complete calendar quarters (excluding
the month of highest liability and the month of lowest
liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer
can show the Department that a substantial change in the
taxpayer's business has occurred which causes the taxpayer to
anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and
not likely to be long term. If any such quarter monthly
payment is not paid at the time or in the amount required by
this Section, then the taxpayer shall be liable for penalties
and interest on the difference between the minimum amount due
as a payment and the amount of such quarter monthly payment
actually and timely paid, except insofar as the taxpayer has
previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in
this Section. The Department shall make reasonable rules and
regulations to govern the quarter monthly payment amount and
quarter monthly payment dates for taxpayers who file on other
than a calendar monthly basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any
taxpayer who is required by Section 2d of this Act to collect
and remit prepaid taxes and has collected prepaid taxes which
average in excess of $25,000 per month during the preceding 2
complete calendar quarters, shall file a return with the
Department as required by Section 2f and shall make payments
to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred. If
the month during which such tax liability is incurred began
prior to the effective date of this amendatory Act of 1985,
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or
after January 1, 1986, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding calendar year. If the month
during which such tax liability is incurred begins on or
after January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 26.25% of the taxpayer's liability for the same
calendar month of the preceding year. The amount of such
quarter monthly payments shall be credited against the final
tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be. Once
applicable, the requirement of the making of quarter monthly
payments to the Department pursuant to this paragraph shall
continue until such taxpayer's average monthly prepaid tax
collections during the preceding 2 complete calendar quarters
is $25,000 or less. If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously
made payments for that month in excess of the minimum
payments previously due.
The provisions of this paragraph apply on and after
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5%
of the taxpayer's actual liability for the month or 25% of
the taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
the taxpayer's average monthly prepaid tax collections during
the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability)
is less than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not
paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously
made payments for that month in excess of the minimum
payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment.
The credit evidenced by such credit memorandum may be
assigned by the taxpayer to a similar taxpayer under this
Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and
regulations to be prescribed by the Department. If no such
request is made, the taxpayer may credit such excess payment
against tax liability subsequently to be remitted to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act or the Service Use Tax Act, in accordance
with reasonable rules and regulations prescribed by the
Department. If the Department subsequently determined that
all or any part of the credit taken was not actually due to
the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
shall be reduced by 2.1% or 1.75% of the difference between
the credit taken and that actually due, and that taxpayer
shall be liable for penalties and interest on such
difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department
shall pay into the Local Government Tax Fund, a special fund
in the State treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax on
sales of food for human consumption which is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks and food which 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.
Beginning January 1, 1990, each month the Department
shall pay into the County and Mass Transit District Fund, a
special fund in the State treasury which is hereby created,
4% of the net revenue realized for the preceding month from
the 6.25% general rate.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department
shall pay into the Local Government Tax Fund 16% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into
the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
and on and after July 1, 1989, 3.8% thereof shall be paid
into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
as the case may be, of the moneys received by the Department
and required to be paid into the Build Illinois Fund pursuant
to this Act, Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, and Section 9 of the Service Occupation
Tax Act, such Acts being hereinafter called the "Tax Acts"
and such aggregate of 2.2% or 3.8%, as the case may be, of
moneys being hereinafter called the "Tax Act Amount", and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall be less than the
Annual Specified Amount (as hereinafter defined), an amount
equal to the difference shall be immediately paid into the
Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; the "Annual Specified
Amount" means the amounts specified below for fiscal years
1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994
and each fiscal year thereafter; and further provided, that
if on the last business day of any month the sum of (1) the
Tax Act Amount required to be deposited into the Build
Illinois Bond Account in the Build Illinois Fund during such
month and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall
have been less than 1/12 of the Annual Specified Amount, an
amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided,
that in no event shall the payments required under the
preceding proviso result in aggregate payments into the Build
Illinois Fund pursuant to this clause (b) for any fiscal year
in excess of the greater of (i) the Tax Act Amount or (ii)
the Annual Specified Amount for such fiscal year. The
amounts payable into the Build Illinois Fund under clause (b)
of the first sentence in this paragraph shall be payable only
until such time as the aggregate amount on deposit under each
trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking
into account any future investment income, to fully provide,
in accordance with such indenture, for the defeasance of or
the payment of the principal of, premium, if any, and
interest on the Bonds secured by such indenture and on any
Bonds expected to be issued thereafter and all fees and costs
payable with respect thereto, all as certified by the
Director of the Bureau of the Budget. If on the last
business day of any month in which Bonds are outstanding
pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the
Build Illinois Fund in such month shall be less than the
amount required to be transferred in such month from the
Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the first sentence of this paragraph and shall reduce the
amount otherwise payable for such fiscal year pursuant to
that clause (b). The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and
charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois
Fund as provided in the preceding paragraph or in any
amendment thereto hereafter enacted, the following specified
monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority provided under Section 8.25f of the
State Finance Act, but not in excess of sums designated as
"Total Deposit", shall be deposited in the aggregate from
collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act
into the McCormick Place Expansion Project Fund in the
specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 and 275,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority
Act, but not after fiscal year 2042.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year,
but not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Build Illinois
Fund and the McCormick Place Expansion Project Fund pursuant
to the preceding paragraphs or in any amendments thereto
hereafter enacted, beginning July 1, 1993, the Department
shall each month pay into the Illinois Tax Increment Fund
0.27% of 80% of the net revenue realized for the preceding
month from the 6.25% general rate on the selling price of
tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund and the McCormick Place Expansion Project Fund pursuant
to the preceding paragraphs or in any amendments thereto
hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing
for a 25-year period, the Department shall each month pay
into the Energy Infrastructure Fund 80% of the net revenue
realized from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business"
means a new electric generating facility certified pursuant
to Section 605-332 of the Department of Commerce and
Community Affairs Law of the Civil Administrative Code of
Illinois.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
State Treasury and 25% shall be reserved in a special account
and used only for the transfer to the Common School Fund as
part of the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last
Federal income tax return. If the total receipts of the
business as reported in the Federal income tax return do not
agree with the gross receipts reported to the Department of
Revenue for the same period, the retailer shall attach to his
annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The retailer's
annual return to the Department shall also disclose the cost
of goods sold by the retailer during the year covered by such
return, opening and closing inventories of such goods for
such year, costs of goods used from stock or taken from stock
and given away by the retailer during such year, payroll
information of the retailer's business during such year and
any additional reasonable information which the Department
deems would be helpful in determining the accuracy of the
monthly, quarterly or annual returns filed by such retailer
as provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be
liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due
from such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction
of a month until such return is filed as required, the
penalty to be assessed and collected in the same manner
as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer
shall be liable for a penalty as described in Section 3-4
of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person
who willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and
punished accordingly. The annual return form prescribed by
the Department shall include a warning that the person
signing the return may be liable for perjury.
The provisions of this Section concerning the filing of
an annual information return do not apply to a retailer who
is not required to file an income tax return with the United
States Government.
As soon as possible after the first day of each month,
upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the Motor Fuel Tax
Fund an amount equal to 1.7% of 80% of the net revenue
realized under this Act for the second preceding month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail
in Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers
at the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required
to file a report with the Department providing the name of
the merchant's business, the name of the person or persons
engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the
merchant, the dates and location of the event and other
reasonable information that the Department may require. The
report must be filed not later than the 20th day of the month
next following the month during which the event with retail
sales was held. Any person who fails to file a report
required by this Section commits a business offense and is
subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art
shows, flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a
daily payment of the full amount of tax due. The Department
shall impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on
evidence that a substantial number of concessionaires or
other sellers who are not residents of Illinois will be
engaging in the business of selling tangible personal
property at retail at the exhibition or event, or other
evidence of a significant risk of loss of revenue to the
State. The Department shall notify concessionaires and other
sellers affected by the imposition of this requirement. In
the absence of notification by the Department, the
concessionaires and other sellers shall file their returns as
otherwise required in this Section.
(Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99;
91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff.
7-1-00; 91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
6-28-01; 92-208, eff. 8-2-01; 92-484, eff. 8-23-01; 92-492,
eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02.)
Section 10. The Cigarette Tax Act is amended by changing
Sections 3 and 29 as follows:
(35 ILCS 130/3) (from Ch. 120, par. 453.3)
Sec. 3. Affixing tax stamp; remitting tax to the
Department. Payment of the taxes imposed by Section 2 of
this Act shall (except as hereinafter provided) be evidenced
by revenue tax stamps affixed to each original package of
cigarettes. Each distributor of cigarettes, before delivering
or causing to be delivered any original package of cigarettes
in this State to a purchaser, shall firmly affix a proper
stamp or stamps to each such package, or (in case of
manufacturers of cigarettes in original packages which are
contained inside a sealed transparent wrapper) shall imprint
the required language on the original package of cigarettes
beneath such outside wrapper, as hereinafter provided.
No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and
Advertising Act, 15 U.S.C. 1331 and following, for the
placement of labels, warnings, or any other information upon
a package of cigarettes that is sold within the United
States. Under the authority of Section 6, the Department
shall revoke the license of any distributor that is
determined to have violated this paragraph. A person may not
affix a stamp on a package of cigarettes, cigarette papers,
wrappers, or tubes if that individual package has been marked
for export outside the United States with a label or notice
in compliance with Section 290.185 of Title 27 of the Code of
Federal Regulations. It is not a defense to a proceeding for
violation of this paragraph that the label or notice has been
removed, mutilated, obliterated, or altered in any manner.
The Department, or any person authorized by the
Department, shall sell such stamps only to persons holding
valid licenses as distributors under this Act. On and after
July 1, 2003, payment for such stamps must be made by means
of electronic funds transfer. The Department may refuse to
sell stamps to any person who does not comply with the
provisions of this Act. Beginning on the effective date of
this amendatory Act of the 92nd General Assembly and through
June 30, 2002, persons holding valid licenses as distributors
may purchase cigarette tax stamps up to an amount equal to
115% of the distributor's average monthly cigarette tax stamp
purchases over the 12 calendar months prior to the effective
date of this amendatory Act of the 92nd General Assembly.
Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of
purchasing them with a draft which shall be in such form as
the Department prescribes, and which shall be payable within
21 days thereafter: Provided that such distributor has filed
with the Department, and has received the Department's
approval of, a bond, which is in addition to the bond
required under Section 4 of this Act, payable to the
Department in an amount equal to 80% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $500,000, whichever
is less. The Bond shall be joint and several and shall be in
the form of a surety company bond in such form as the
Department prescribes, or it may be in the form of a bank
certificate of deposit or bank letter of credit. The bond
shall be conditioned upon the distributor's payment of amount
of any 21-day draft which the Department accepts from that
distributor for the delivery of stamps to that distributor
under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at
the time of purchasing them with a draft which shall be in
such form as the Department prescribes, and which shall be
payable within 30 days thereafter, and beginning on January
1, 2003 and thereafter, the draft shall be payable by means
of electronic funds transfer: Provided that such distributor
has filed with the Department, and has received the
Department's approval of, a bond, which is in addition to the
bond required under Section 4 of this Act, payable to the
Department in an amount equal to 150% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $750,000, whichever
is less, except that as to bonds filed on or after January 1,
1987, such additional bond shall be in an amount equal to
100% of such distributor's average monthly tax liability
under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of
credit. The bond shall be conditioned upon the distributor's
payment of the amount of any 30-day draft which the
Department accepts from that distributor for the delivery of
stamps to that distributor under this Act. The distributor's
failure to pay any such draft, when due, shall also make such
distributor automatically liable to the Department for a
penalty equal to 25% of the amount of such draft.
Every prior continuous compliance taxpayer shall be
exempt from all requirements under this Section concerning
the furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall
continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing
of any returns, or is determined by the Department (either
through the Department's issuance of a final assessment which
has become final under the Act, or by the taxpayer's filing
of a return which admits tax to be due that is not paid) to
be delinquent or deficient in the paying of any tax under
this Act, at which time that taxpayer shall become subject to
the bond requirements of this Section and, as a condition of
being allowed to continue to engage in the business licensed
under this Act, shall be required to furnish bond to the
Department in such form as provided in this Section. Such
taxpayer shall furnish such bond for a period of 2 years,
after which, if the taxpayer has not been delinquent in the
filing of any returns, or delinquent or deficient in the
paying of any tax under this Act, the Department may
reinstate such person as a prior continuance compliance
taxpayer. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with the Department
guaranteeing the payment of such admitted or established
liability.
Any person aggrieved by any decision of the Department
under this Section may, within the time allowed by law,
protest and request a hearing, whereupon the Department shall
give notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final
administrative decision in the matter to such person. In the
absence of such a protest filed within the time allowed by
law, the Department's decision shall become final without any
further determination being made or notice given.
The Department shall discharge any surety and shall
release and return any bond or security deposited, assigned,
pledged, or otherwise provided to it by a taxpayer under this
Section within 30 days after:
(1) Such taxpayer becomes a prior continuous compliance
taxpayer; or
(2) Such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax liability as
determined by the Department under this Act. The Department
shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible after
his final tax return has been filed. If the Department
cannot make such final determination within 45 days after
receiving the final tax return, within such period it shall
so notify the taxpayer, stating its reasons therefor.
The Department may authorize distributors to affix
revenue tax stamps by imprinting tax meter stamps upon
original packages of cigarettes. The Department shall adopt
rules and regulations relating to the imprinting of such tax
meter stamps as will result in payment of the proper taxes as
herein imposed. No distributor may affix revenue tax stamps
to original packages of cigarettes by imprinting tax meter
stamps thereon unless such distributor has first obtained
permission from the Department to employ this method of
affixation. The Department shall regulate the use of tax
meters and may, to assure the proper collection of the taxes
imposed by this Act, revoke or suspend the privilege,
theretofore granted by the Department to any distributor, to
imprint tax meter stamps upon original packages of
cigarettes.
Illinois cigarette manufacturers who place their
cigarettes in original packages which are contained inside a
sealed transparent wrapper, and similar out-of-State
cigarette manufacturers who elect to qualify and are accepted
by the Department as distributors under Section 4b of this
Act, shall pay the taxes imposed by this Act by remitting the
amount thereof to the Department by the 5th day of each month
covering cigarettes shipped or otherwise delivered in
Illinois to purchasers during the preceding calendar month.
Such manufacturers of cigarettes in original packages which
are contained inside a sealed transparent wrapper, before
delivering such cigarettes or causing such cigarettes to be
delivered in this State to purchasers, shall evidence their
obligation to remit the taxes due with respect to such
cigarettes by imprinting language to be prescribed by the
Department on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, in such place thereon and in such manner as
the Department may designate. Such imprinted language shall
acknowledge the manufacturer's payment of or liability for
the tax imposed by this Act with respect to the distribution
of such cigarettes.
A distributor shall not affix, or cause to be affixed,
any stamp or imprint to a package of cigarettes, as provided
for in this Section, if the tobacco product manufacturer, as
defined in Section 10 of the Tobacco Product Manufacturers'
Escrow Act, that made or sold the cigarettes has failed to
become a participating manufacturer, as defined in
subdivision (a)(1) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act, or has failed to create a
qualified escrow fund for any cigarettes manufactured by the
tobacco product manufacturer and sold in this State or
otherwise failed to bring itself into compliance with
subdivision (a)(2) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act.
(Source: P.A. 91-246, eff. 7-22-99; 92-322, eff. 1-1-02;
92-536, eff. 6-6-02; 92-737, eff. 7-25-02; revised 9-10-02.)
(35 ILCS 130/29) (from Ch. 120, par. 453.29)
Sec. 29. All moneys received by the Department from the
one-half mill tax imposed by the Sixty-fourth General
Assembly and all interest and penalties, received in
connection therewith under the provisions of this Act shall
be paid into the Metropolitan Fair and Exposition Authority
Reconstruction Fund. All other moneys received by the
Department under this Act shall be paid into the General
Revenue Fund in the State treasury. After there has been paid
into the Metropolitan Fair and Exposition Authority
Reconstruction Fund sufficient money to pay in full both
principal and interest, all of the outstanding bonds issued
pursuant to the "Fair and Exposition Authority Reconstruction
Act", the State Treasurer and Comptroller shall transfer to
the General Revenue Fund the balance of moneys remaining in
the Metropolitan Fair and Exposition Authority Reconstruction
Fund except for $2,500,000 which shall remain in the
Metropolitan Fair and Exposition Authority Reconstruction
Fund and which may be appropriated by the General Assembly
for the corporate purposes of the Metropolitan Pier and
Exposition Authority. All monies received by the Department
in fiscal year 1978 and thereafter from the one-half mill tax
imposed by the Sixty-fourth General Assembly, and all
interest and penalties received in connection therewith under
the provisions of this Act, shall be paid into the General
Revenue Fund, except that the Department shall pay the first
$4,800,000 received in fiscal years 1979 through 2001 from
that one-half mill tax into the Metropolitan Fair and
Exposition Authority Reconstruction Fund which monies may be
appropriated by the General Assembly for the corporate
purposes of the Metropolitan Pier and Exposition Authority.
In fiscal year 2002 and each fiscal year 2003 thereafter,
the first $4,800,000 from the one-half mill tax shall be paid
into the Statewide Economic Development Fund.
(Source: P.A. 92-208, eff. 8-2-01.)
Section 15. The Cigarette Use Tax Act is amended by
changing Section 3 as follows:
(35 ILCS 135/3) (from Ch. 120, par. 453.33)
Sec. 3. Stamp payment. The tax hereby imposed shall be
collected by a distributor maintaining a place of business in
this State or a distributor authorized by the Department
pursuant to Section 7 hereof to collect the tax, and the
amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes or by an authorized substitute
for such stamp imprinted on each original package of such
cigarettes underneath the sealed transparent outside wrapper
of such original package, except as hereinafter provided.
Each distributor who is required or authorized to collect the
tax herein imposed, before delivering or causing to be
delivered any original packages of cigarettes in this State
to any purchaser, shall firmly affix a proper stamp or stamps
to each such package, or (in the case of manufacturers of
cigarettes in original packages which are contained inside a
sealed transparent wrapper) shall imprint the required
language on the original package of cigarettes beneath such
outside wrapper as hereinafter provided. Such stamp or stamps
need not be affixed to the original package of any cigarettes
with respect to which the distributor is required to affix a
like stamp or stamps by virtue of the Cigarette Tax Act,
however, and no tax imprint need be placed underneath the
sealed transparent wrapper of an original package of
cigarettes with respect to which the distributor is required
or authorized to employ a like tax imprint by virtue of the
Cigarette Tax Act.
No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and
Advertising Act, 15 U.S.C. 1331 and following, for the
placement of labels, warnings, or any other information upon
a package of cigarettes that is sold within the United
States. Under the authority of Section 6, the Department
shall revoke the license of any distributor that is
determined to have violated this paragraph. A person may not
affix a stamp on a package of cigarettes, cigarette papers,
wrappers, or tubes if that individual package has been marked
for export outside the United States with a label or notice
in compliance with Section 290.185 of Title 27 of the Code of
Federal Regulations. It is not a defense to a proceeding for
violation of this paragraph that the label or notice has been
removed, mutilated, obliterated, or altered in any manner.
Stamps, when required hereunder, shall be purchased from
the Department, or any person authorized by the Department,
by distributors. On and after July 1, 2003, payment for such
stamps must be made by means of electronic funds transfer.
The Department may refuse to sell stamps to any person who
does not comply with the provisions of this Act. Beginning
on June 6, 2002 the effective date of this amendatory Act of
the 92nd General Assembly and through June 30, 2002, persons
holding valid licenses as distributors may purchase cigarette
tax stamps up to an amount equal to 115% of the distributor's
average monthly cigarette tax stamp purchases over the 12
calendar months prior to June 6, 2002 the effective date of
this amendatory Act of the 92nd General Assembly.
Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the
distributor to make payment for the stamps at the time of
purchasing them with a draft which shall be in such form as
the Department prescribes, and which shall be payable within
21 days thereafter: Provided that such distributor has filed
with the Department, and has received the Department's
approval of, a bond, which is in addition to the bond
required under Section 4 of this Act, payable to the
Department in an amount equal to 80% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $500,000, whichever
is less. The bond shall be joint and several and shall be in
the form of a surety company bond in such form as the
Department prescribes, or it may be in the form of a bank
certificate of deposit or bank letter of credit. The bond
shall be conditioned upon the distributor's payment of the
amount of any 21-day draft which the Department accepts from
that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at
the time of purchasing them with a draft which shall be in
such form as the Department prescribes, and which shall be
payable within 30 days thereafter, and beginning on January
1, 2003 and thereafter, the draft shall be payable by means
of electronic funds transfer: Provided that such distributor
has filed with the Department, and has received the
Department's approval of, a bond, which is in addition to the
bond required under Section 4 of this Act, payable to the
Department in an amount equal to 150% of such distributor's
average monthly tax liability to the Department under this
Act during the preceding calendar year or $750,000, whichever
is less, except that as to bonds filed on or after January 1,
1987, such additional bond shall be in an amount equal to
100% of such distributor's average monthly tax liability
under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of
credit. The bond shall be conditioned upon the distributor's
payment of the amount of any 30-day draft which the
Department accepts from that distributor for the delivery of
stamps to that distributor under this Act. The distributor's
failure to pay any such draft, when due, shall also make such
distributor automatically liable to the Department for a
penalty equal to 25% of the amount of such draft.
Every prior continuous compliance taxpayer shall be
exempt from all requirements under this Section concerning
the furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall
continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing
of any returns, or is determined by the Department (either
through the Department's issuance of a final assessment which
has become final under the Act, or by the taxpayer's filing
of a return which admits tax to be due that is not paid) to
be delinquent or deficient in the paying of any tax under
this Act, at which time that taxpayer shall become subject to
the bond requirements of this Section and, as a condition of
being allowed to continue to engage in the business licensed
under this Act, shall be required to furnish bond to the
Department in such form as provided in this Section. Such
taxpayer shall furnish such bond for a period of 2 years,
after which, if the taxpayer has not been delinquent in the
filing of any returns, or delinquent or deficient in the
paying of any tax under this Act, the Department may
reinstate such person as a prior continuance compliance
taxpayer. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with the Department
guaranteeing the payment of such admitted or established
liability.
Any person aggrieved by any decision of the Department
under this Section may, within the time allowed by law,
protest and request a hearing, whereupon the Department shall
give notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final
administrative decision in the matter to such person. In the
absence of such a protest filed within the time allowed by
law, the Department's decision shall become final without any
further determination being made or notice given.
The Department shall discharge any surety and shall
release and return any bond or security deposited, assigned,
pledged, or otherwise provided to it by a taxpayer under this
Section within 30 days after:
(1) such Taxpayer becomes a prior continuous
compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department
an amount sufficient to discharge his remaining tax
liability as determined by the Department under this Act.
The Department shall make a final determination of the
taxpayer's outstanding tax liability as expeditiously as
possible after his final tax return has been filed. If
the Department cannot make such final determination
within 45 days after receiving the final tax return,
within such period it shall so notify the taxpayer,
stating its reasons therefor.
At the time of purchasing such stamps from the Department
when purchase is required by this Act, or at the time when
the tax which he has collected is remitted by a distributor
to the Department without the purchase of stamps from the
Department when that method of remitting the tax that has
been collected is required or authorized by this Act, the
distributor shall be allowed a discount during any year
commencing July 1 and ending the following June 30 in
accordance with the schedule set out hereinbelow, from the
amount to be paid by him to the Department for such stamps,
or to be paid by him to the Department on the basis of
monthly remittances (as the case may be), to cover the cost,
to such distributor, of collecting the tax herein imposed by
affixing such stamps to the original packages of cigarettes
sold by such distributor or by placing tax imprints
underneath the sealed transparent wrapper of original
packages of cigarettes sold by such distributor (as the case
may be): (1) Prior to December 1, 1985, a discount equal to
1-2/3% of the amount of the tax up to and including the first
$700,000 paid hereunder by such distributor to the Department
during any such year; 1-1/3% of the next $700,000 of tax or
any part thereof, paid hereunder by such distributor to the
Department during any such year; 1% of the next $700,000 of
tax, or any part thereof, paid hereunder by such distributor
to the Department during any such year; and 2/3 of 1% of the
amount of any additional tax paid hereunder by such
distributor to the Department during any such year or (2) On
and after December 1, 1985, a discount equal to 1.75% of the
amount of the tax payable under this Act up to and including
the first $3,000,000 paid hereunder by such distributor to
the Department during any such year and 1.5% of the amount of
any additional tax paid hereunder by such distributor to the
Department during any such year.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled
by the same interests shall be treated as a single
distributor for the purpose of computing the discount.
Cigarette manufacturers who are distributors under this
Act, and who place their cigarettes in original packages
which are contained inside a sealed transparent wrapper,
shall be required to remit the tax which they are required to
collect under this Act to the Department by remitting the
amount thereof to the Department by the 5th day of each
month, covering cigarettes shipped or otherwise delivered to
points in Illinois to purchasers during the preceding
calendar month, but a distributor need not remit to the
Department the tax so collected by him from purchasers under
this Act to the extent to which such distributor is required
to remit the tax imposed by the Cigarette Tax Act to the
Department with respect to the same cigarettes. All taxes
upon cigarettes under this Act are a direct tax upon the
retail consumer and shall conclusively be presumed to be
precollected for the purpose of convenience and facility
only. Distributors who are manufacturers of cigarettes in
original packages which are contained inside a sealed
transparent wrapper, before delivering such cigarettes or
causing such cigarettes to be delivered in this State to
purchasers, shall evidence their obligation to collect and
remit the tax due with respect to such cigarettes by
imprinting language to be prescribed by the Department on
each original package of such cigarettes underneath the
sealed transparent outside wrapper of such original package,
in such place thereon and in such manner as the Department
may prescribe; provided (as stated hereinbefore) that this
requirement does not apply when such distributor is required
or authorized by the Cigarette Tax Act to place the tax
imprint provided for in the last paragraph of Section 3 of
that Act underneath the sealed transparent wrapper of such
original package of cigarettes. Such imprinted language shall
acknowledge the manufacturer's collection and payment of or
liability for the tax imposed by this Act with respect to
such cigarettes.
The Department shall adopt the design or designs of the
tax stamps and shall procure the printing of such stamps in
such amounts and denominations as it deems necessary to
provide for the affixation of the proper amount of tax stamps
to each original package of cigarettes.
Where tax stamps are required, the Department may
authorize distributors to affix revenue tax stamps by
imprinting tax meter stamps upon original packages of
cigarettes. The Department shall adopt rules and regulations
relating to the imprinting of such tax meter stamps as will
result in payment of the proper taxes as herein imposed. No
distributor may affix revenue tax stamps to original packages
of cigarettes by imprinting meter stamps thereon unless such
distributor has first obtained permission from the Department
to employ this method of affixation. The Department shall
regulate the use of tax meters and may, to assure the proper
collection of the taxes imposed by this Act, revoke or
suspend the privilege, theretofore granted by the Department
to any distributor, to imprint tax meter stamps upon original
packages of cigarettes.
The tax hereby imposed and not paid pursuant to this
Section shall be paid to the Department directly by any
person using such cigarettes within this State, pursuant to
Section 12 hereof.
A distributor shall not affix, or cause to be affixed,
any stamp or imprint to a package of cigarettes, as provided
for in this Section, if the tobacco product manufacturer, as
defined in Section 10 of the Tobacco Product Manufacturers'
Escrow Act, that made or sold the cigarettes has failed to
become a participating manufacturer, as defined in
subdivision (a)(1) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act, or has failed to create a
qualified escrow fund for any cigarettes manufactured by the
tobacco product manufacturer and sold in this State or
otherwise failed to bring itself into compliance with
subdivision (a)(2) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act.
(Source: P.A. 91-246, eff. 7-22-99; 92-322, eff. 1-1-02;
92-536, eff. 6-6-02; 92-737, eff. 7-25-02; revised 9-10-02.)
Section 20. The Liquor Control Act of 1934 is amended by
changing Sections 5-3, 7-5, 7-6, and 8-2 as follows:
(235 ILCS 5/5-3) (from Ch. 43, par. 118)
Sec. 5-3. License fees. Except as otherwise provided
herein, at the time application is made to the State
Commission for a license of any class, the applicant shall
pay to the State Commission the fee hereinafter provided for
the kind of license applied for.
The fee for licenses issued by the State Commission shall
be as follows:
For a manufacturer's license:
Class 1. Distiller ........................... $3,600
Class 2. Rectifier ........................... 3,600
Class 3. Brewer .............................. 900
Class 4. First-class Wine Manufacturer ....... 600
Class 5. Second-class
Wine Manufacturer ....................... 1,200
Class 6. First-class wine-maker .............. 600
Class 7. Second-class wine-maker ............. 1200
Class 8. Limited Wine Manufacturer........... 120
For a Brew Pub License ....................... 1,050
For a caterer retailer's license.............. 200
For a foreign importer's license ............. 25
For an importing distributor's license ....... 25
For a distributor's license .................. 270
For a non-resident dealer's license
(500,000 gallons or over) ............... 270
For a non-resident dealer's license
(under 500,000 gallons) ................. 90
For a wine-maker's premises license .......... 100
For a wine-maker's premises license,
second location ......................... 350
For a wine-maker's premises license,
third location .......................... 350
For a retailer's license ..................... 500 175
For a special event retailer's license,
(not-for-profit) ........................ 25
For a special use permit license,
one day only ............................ 50
2 days or more .......................... 100
For a railroad license ....................... 60
For a boat license ........................... 180
For an airplane license, times the
licensee's maximum number of aircraft
in flight, serving liquor over the
State at any given time, which either
originate, terminate, or make
an intermediate stop in the State ....... 60
For a non-beverage user's license:
Class 1 ................................. 24
Class 2 ................................. 60
Class 3 ................................. 120
Class 4 ................................. 240
Class 5 ................................. 600
For a broker's license ....................... 600
For an auction liquor license ................ 50
Fees collected under this Section shall be paid into the
Dram Shop Fund. On and after July 1, 2003, of the funds
received for a retailer's license, in addition to the first
$175, an additional $75 shall be paid into the Dram Shop
Fund, and $250 shall be paid into the General Revenue Fund.
Beginning June 30, 1990 and on June 30 of each subsequent
year through June 29, 2003, any balance over $5,000,000
remaining in the Dram Shop Fund shall be credited to State
liquor licensees and applied against their fees for State
liquor licenses for the following year. The amount credited
to each licensee shall be a proportion of the balance in the
Dram Fund that is the same as the proportion of the license
fee paid by the licensee under this Section for the period in
which the balance was accumulated to the aggregate fees paid
by all licensees during that period.
No fee shall be paid for licenses issued by the State
Commission to the following non-beverage users:
(a) Hospitals, sanitariums, or clinics when their
use of alcoholic liquor is exclusively medicinal,
mechanical or scientific.
(b) Universities, colleges of learning or schools
when their use of alcoholic liquor is exclusively
medicinal, mechanical or scientific.
(c) Laboratories when their use is exclusively for
the purpose of scientific research.
(Source: P.A. 91-25, eff. 6-9-99; 91-357, eff. 7-29-99;
92-378, eff. 8-16-01.)
(235 ILCS 5/7-5) (from Ch. 43, par. 149)
Sec. 7-5. The local liquor control commissioner may
revoke or suspend any license issued by him if he determines
that the licensee has violated any of the provisions of this
Act or of any valid ordinance or resolution enacted by the
particular city council, president, or board of trustees or
county board (as the case may be) or any applicable rule or
regulations established by the local liquor control
commissioner or the State commission which is not
inconsistent with law. Upon notification by the Illinois
Department of Revenue, the State Commission shall revoke any
license issued by it if the licensee has violated the
provisions of Section 3 of the Retailers' Occupation Tax Act.
In addition to the suspension, the local liquor control
commissioner in any county or municipality may levy a fine on
the licensee for such violations. The fine imposed shall not
exceed $1000 for a first violation within a 12-month period,
$1,500 for a second violation within a 12-month period, and
$2,500 for a third or subsequent violation within a 12-month
period. Each day on which a violation continues shall
constitute a separate violation. Not more than $15,000 in
fines under this Section may be imposed against any licensee
during the period of his license. Proceeds from such fines
shall be paid into the general corporate fund of the county
or municipal treasury, as the case may be.
However, no such license shall be so revoked or suspended
and no licensee shall be fined except after a public hearing
by the local liquor control commissioner with a 3 day written
notice to the licensee affording the licensee an opportunity
to appear and defend. All such hearings shall be open to the
public and the local liquor control commissioner shall reduce
all evidence to writing and shall maintain an official record
of the proceedings. If the local liquor control commissioner
has reason to believe that any continued operation of a
particular licensed premises will immediately threaten the
welfare of the community he may, upon the issuance of a
written order stating the reason for such conclusion and
without notice or hearing order the licensed premises closed
for not more than 7 days, giving the licensee an opportunity
to be heard during that period, except that if such licensee
shall also be engaged in the conduct of another business or
businesses on the licensed premises such order shall not be
applicable to such other business or businesses.
The local liquor control commissioner shall within 5 days
after such hearing, if he determines after such hearing that
the license should be revoked or suspended or that the
licensee should be fined, state the reason or reasons for
such determination in a written order, and either the amount
of the fine, the period of suspension, or that the license
has been revoked, and shall serve a copy of such order within
the 5 days upon the licensee.
If the premises for which the license was issued are
located outside of a city, village or incorporated town
having a population of 500,000 or more inhabitants, the
licensee after the receipt of such order of suspension or
revocation shall have the privilege within a period of 20
days after the receipt of such order of suspension or
revocation of appealing the order to the State commission for
a decision sustaining, reversing or modifying the order of
the local liquor control commissioner. If the State
commission affirms the local commissioner's order to suspend
or revoke the license at the first hearing, the appellant
shall cease to engage in the business for which the license
was issued, until the local commissioner's order is
terminated by its own provisions or reversed upon rehearing
or by the courts.
If the premises for which the license was issued are
located within a city, village or incorporated town having a
population of 500,000 or more inhabitants, the licensee shall
have the privilege, within a period of 20 days after the
receipt of such order of fine, suspension or revocation, of
appealing the order to the local license appeal commission
and upon the filing of such an appeal by the licensee the
license appeal commission shall determine the appeal upon
certified record of proceedings of the local liquor
commissioner in accordance with the provisions of Section
7-9. Within 30 days after such appeal was heard the license
appeal commission shall render a decision sustaining or
reversing the order of the local liquor control commissioner.
(Source: P.A. 91-854, eff. 1-1-01.)
(235 ILCS 5/7-6) (from Ch. 43, par. 150)
Sec. 7-6. All proceedings for the revocation or
suspension of licenses of manufacturers, distributors,
importing distributors, non-resident dealers, foreign
importers, non-beverage users, railroads, airplanes and boats
shall be before the State Commission. All such proceedings
and all proceedings for the revocation or suspension of a
retailer's license before the State commission shall be in
accordance with rules and regulations established by it not
inconsistent with law. However, no such license shall be so
revoked or suspended except after a hearing by the State
commission with reasonable notice to the licensee served by
registered or certified mail with return receipt requested at
least 10 days prior to the hearings at the last known place
of business of the licensee and after an opportunity to
appear and defend. Such notice shall specify the time and
place of the hearing, the nature of the charges, the specific
provisions of the Act and rules violated, and the specific
facts supporting the charges or violation. The findings of
the Commission shall be predicated upon competent evidence.
The revocation of a local license shall automatically result
in the revocation of a State license. Upon notification by
the Illinois Department of Revenue, the State Commission
shall revoke any license issued by it if the licensee has
violated the provisions of Section 3 of the Retailers'
Occupation Tax Act. All procedures for the suspension or
revocation of a license, as enumerated above, are applicable
to the levying of fines for violations of this Act or any
rule or regulation issued pursuant thereto.
(Source: P.A. 91-553, eff. 8-14-99.)
(235 ILCS 5/8-2) (from Ch. 43, par. 159)
Sec. 8-2. It is the duty of each manufacturer with
respect to alcoholic liquor produced or imported by such
manufacturer, or purchased tax-free by such manufacturer from
another manufacturer or importing distributor, and of each
importing distributor as to alcoholic liquor purchased by
such importing distributor from foreign importers or from
anyone from any point in the United States outside of this
State or purchased tax-free from another manufacturer or
importing distributor, to pay the tax imposed by Section 8-1
to the Department of Revenue on or before the 15th day of the
calendar month following the calendar month in which such
alcoholic liquor is sold or used by such manufacturer or by
such importing distributor other than in an authorized
tax-free manner or to pay that tax electronically as provided
in this Section.
Each manufacturer and each importing distributor shall
make payment under one of the following methods: (1) on or
before the 15th day of each calendar month, file in person or
by United States first-class mail, postage pre-paid, with the
Department of Revenue, on forms prescribed and furnished by
the Department, a report in writing in such form as may be
required by the Department in order to compute, and assure
the accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor occurring during the preceding month.
Payment of the tax in the amount disclosed by the report
shall accompany the report or, (2) on or before the 15th day
of each calendar month, electronically file with the
Department of Revenue, on forms prescribed and furnished by
the Department, an electronic report in such form as may be
required by the Department in order to compute, and assure
the accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor occurring during the preceding month. An
electronic payment of the tax in the amount disclosed by the
report shall accompany the report. A manufacturer or
distributor who files an electronic report and electronically
pays the tax imposed pursuant to Section 8-1 to the
Department of Revenue on or before the 15th day of the
calendar month following the calendar month in which such
alcoholic liquor is sold or used by that manufacturer or
importing distributor other than in an authorized tax-free
manner shall pay to the Department the amount of the tax
imposed pursuant to Section 8-1, less a discount of 1.75% or
$1,250 per return, whichever is less, which is allowed to
reimburse the manufacturer or importing distributor for the
expenses incurred in keeping and maintaining records,
preparing and filing the electronic returns, remitting the
tax, and supplying data to the Department upon request.
The discount shall be in an amount as follows:
(1) For original returns due on or after January 1,
2003 through September 30, 2003, the discount shall be
1.75% or $1,250 per return, whichever is less;
(2) For original returns due on or after October 1,
2003 through September 30, 2004, the discount shall be 2%
or $3,000 per return, whichever is less; and
(3) For original returns due on or after October 1,
2004, the discount shall be 2% or $2,000 per return,
whichever is less.
The Department may, if it deems it necessary in order to
insure the payment of the tax imposed by this Article,
require returns to be made more frequently than and covering
periods of less than a month. Such return shall contain such
further information as the Department may reasonably require.
It shall be presumed that all alcoholic liquors acquired
or made by any importing distributor or manufacturer have
been sold or used by him in this State and are the basis for
the tax imposed by this Article unless proven, to the
satisfaction of the Department, that such alcoholic liquors
are (1) still in the possession of such importing distributor
or manufacturer, or (2) prior to the termination of
possession have been lost by theft or through unintentional
destruction, or (3) that such alcoholic liquors are otherwise
exempt from taxation under this Act.
The Department may require any foreign importer to file
monthly information returns, by the 15th day of the month
following the month which any such return covers, if the
Department determines this to be necessary to the proper
performance of the Department's functions and duties under
this Act. Such return shall contain such information as the
Department may reasonably require.
Every manufacturer and importing distributor shall also
file, with the Department, a bond in an amount not less than
$1,000 and not to exceed $100,000 on a form to be approved
by, and with a surety or sureties satisfactory to, the
Department. Such bond shall be conditioned upon the
manufacturer or importing distributor paying to the
Department all monies becoming due from such manufacturer or
importing distributor under this Article. The Department
shall fix the penalty of such bond in each case, taking into
consideration the amount of alcoholic liquor expected to be
sold and used by such manufacturer or importing distributor,
and the penalty fixed by the Department shall be sufficient,
in the Department's opinion, to protect the State of Illinois
against failure to pay any amount due under this Article, but
the amount of the penalty fixed by the Department shall not
exceed twice the amount of tax liability of a monthly return,
nor shall the amount of such penalty be less than $1,000. The
Department shall notify the Commission of the Department's
approval or disapproval of any such manufacturer's or
importing distributor's bond, or of the termination or
cancellation of any such bond, or of the Department's
direction to a manufacturer or importing distributor that he
must file additional bond in order to comply with this
Section. The Commission shall not issue a license to any
applicant for a manufacturer's or importing distributor's
license unless the Commission has received a notification
from the Department showing that such applicant has filed a
satisfactory bond with the Department hereunder and that such
bond has been approved by the Department. Failure by any
licensed manufacturer or importing distributor to keep a
satisfactory bond in effect with the Department or to furnish
additional bond to the Department, when required hereunder by
the Department to do so, shall be grounds for the revocation
or suspension of such manufacturer's or importing
distributor's license by the Commission. If a manufacturer or
importing distributor fails to pay any amount due under this
Article, his bond with the Department shall be deemed
forfeited, and the Department may institute a suit in its own
name on such bond.
After notice and opportunity for a hearing the State
Commission may revoke or suspend the license of any
manufacturer or importing distributor who fails to comply
with the provisions of this Section. Notice of such hearing
and the time and place thereof shall be in writing and shall
contain a statement of the charges against the licensee. Such
notice may be given by United States registered or certified
mail with return receipt requested, addressed to the person
concerned at his last known address and shall be given not
less than 7 days prior to the date fixed for the hearing. An
order revoking or suspending a license under the provisions
of this Section may be reviewed in the manner provided in
Section 7-10 of this Act. No new license shall be granted to
a person whose license has been revoked for a violation of
this Section or, in case of suspension, shall such suspension
be terminated until he has paid to the Department all taxes
and penalties which he owes the State under the provisions of
this Act.
Every manufacturer or importing distributor who has, as
verified by the Department, continuously complied with the
conditions of the bond under this Act for a period of 2 years
shall be considered to be a prior continuous compliance
taxpayer. In determining the consecutive period of time for
qualification as a prior continuous compliance taxpayer, any
consecutive period of time of qualifying compliance
immediately prior to the effective date of this amendatory
Act of 1987 shall be credited to any manufacturer or
importing distributor.
Every prior continuous compliance taxpayer shall be
exempt from the bond requirements of this Act until the
Department has determined the taxpayer to be delinquent in
the filing of any return or deficient in the payment of any
tax under this Act. Any taxpayer who fails to pay an
admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
The Department shall discharge any surety and shall
release and return any bond or security deposit assigned,
pledged or otherwise provided to it by a taxpayer under this
Section within 30 days after: (1) such taxpayer becomes a
prior continuous compliance taxpayer; or (2) such taxpayer
has ceased to collect receipts on which he is required to
remit tax to the Department, has filed a final tax return,
and has paid to the Department an amount sufficient to
discharge his remaining tax liability as determined by the
Department under this Act.
(Source: P.A. 92-393, eff. 1-1-03.)
Section 99. Effective date. This Act takes effect upon
becoming law.