State of Illinois
91st General Assembly
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Public Act 91-0872

SB1310 Enrolled                                LRB9110257SMdv

    AN ACT in relation to taxes.

    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
Sections 6z-18 and 6z-20 as follows:

    (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
    Sec.  6z-18.   A portion of the money paid into the Local
Government Tax Fund from 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,  which  occurred  in  municipalities, shall be
distributed to each municipality based upon the  sales  which
occurred  in  that  municipality.   The  remainder  shall  be
distributed  to  each  county  based  upon  the  sales  which
occurred in the unincorporated area of that county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price
of  tangible  personal  property  which  is purchased outside
Illinois at retail from a retailer and  which  is  titled  or
registered  by any agency of this State's government shall be
distributed to municipalities as provided in this  paragraph.
Each  municipality  shall  receive the amount attributable to
sales  for  which   Illinois   addresses   for   titling   or
registration   purposes   are   given   as   being   in  such
municipality.  The remainder of the money paid into the Local
Government Tax Fund from such sales shall be  distributed  to
counties.   Each county shall receive the amount attributable
to  sales  for  which  Illinois  addresses  for  titling   or
registration  purposes  are  given  as  being  located in the
unincorporated area of such county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on  motor  fuel
and   gasohol)   on  sales  subject  to  taxation  under  the
Retailers' Occupation Tax Act and the Service Occupation  Tax
Act,  which  occurred in municipalities, shall be distributed
to each municipality, based upon the sales which occurred  in
that municipality. The remainder shall be distributed to each
county,   based   upon   the  sales  which  occurred  in  the
unincorporated area of such county.
    For the purpose of determining allocation  to  the  local
government unit, a retail sale by a producer of coal or other
mineral  mined  in  Illinois is a sale at retail at the place
where  the  coal  or  other  mineral  mined  in  Illinois  is
extracted from the earth.  This paragraph does not  apply  to
coal  or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois  so  that
the  sale is exempt under the United States Constitution as a
sale in interstate or foreign commerce.
    Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made  to  a
claimant   instead   of  issuing  a  credit  memorandum,  the
Department shall notify  the  State  Comptroller,  who  shall
cause  the order to be drawn for the amount specified, and to
the person named, in such notification from  the  Department.
Such  refund  shall be paid by the State Treasurer out of the
Local Government Tax Fund.
    On or before the 25th day of  each  calendar  month,  the
Department  shall  prepare and certify to the Comptroller the
disbursement of stated sums of money to named  municipalities
and  counties,  the  municipalities  and counties to be those
entitled to distribution of taxes or penalties  paid  to  the
Department  during  the  second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during  the
second  preceding  calendar  month by the Department and paid
into the Local  Government  Tax  Fund,  plus  an  amount  the
Department  determines  is  necessary  to  offset any amounts
which were erroneously paid to a different taxing  body,  and
not  including  an amount equal to the amount of refunds made
during the second preceding calendar month by the Department,
and not including any amount which the Department  determines
is  necessary  to  offset  any amounts which are payable to a
different taxing  body  but  were  erroneously  paid  to  the
municipality or county.  Within 10 days after receipt, by the
Comptroller,   of   the  disbursement  certification  to  the
municipalities and counties,  provided for in this Section to
be  given  to  the  Comptroller  by   the   Department,   the
Comptroller  shall  cause  the  orders  to  be  drawn for the
respective  amounts  in  accordance   with   the   directions
contained in such certification.
    When  certifying  the amount of monthly disbursement to a
municipality or county under  this  Section,  the  Department
shall increase or decrease that amount by an amount necessary
to  offset  any  misallocation of previous disbursements. The
offset amount  shall  be  the  amount  erroneously  disbursed
within  the  6  months  preceding the time a misallocation is
discovered.
    The  provisions  directing  the  distributions  from  the
special fund in the  State  Treasury  provided  for  in  this
Section   shall  constitute  an  irrevocable  and  continuing
appropriation of all amounts as provided  herein.  The  State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation  or  other  lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use  tax  or
service  occupation  tax  which  now  cannot be imposed, such
description or reference  shall  be  deemed  to  include  the
replacement  revenue  for  such  abolished taxes, distributed
from the Local Government Tax Fund.
(Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99.)

    (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
    Sec. 6z-20. Of the money received from the 6.25%  general
rate  (and,  beginning  July 1, 2000 and through December 31,
2000, the 1.25% rate on motor  fuel  and  gasohol)  on  sales
subject  to  taxation under the Retailers' Occupation Tax Act
and Service Occupation Tax Act and paid into the  County  and
Mass  Transit  District  Fund,  distribution  to the Regional
Transportation  Authority  tax  fund,  created  pursuant   to
Section  4.03  of  the Regional Transportation Authority Act,
for deposit therein shall be made based upon the retail sales
occurring in a county having more than 3,000,000 inhabitants.
The remainder shall be  distributed  to  each  county  having
3,000,000  or  fewer  inhabitants based upon the retail sales
occurring in each such county.
    For the purpose of determining allocation  to  the  local
government unit, a retail sale by a producer of coal or other
mineral  mined  in  Illinois is a sale at retail at the place
where  the  coal  or  other  mineral  mined  in  Illinois  is
extracted from the earth.  This paragraph does not  apply  to
coal  or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois  so  that
the  sale is exempt under the United States Constitution as a
sale in interstate or foreign commerce.
    Of the money received from the 6.25% general use tax rate
on tangible personal  property  which  is  purchased  outside
Illinois  at  retail  from  a retailer and which is titled or
registered by any agency of this State's government and  paid
into  the  County  and Mass Transit District Fund, the amount
for which Illinois  addresses  for  titling  or  registration
purposes  are  given as being in each county having more than
3,000,000 inhabitants shall be distributed into the  Regional
Transportation   Authority  tax  fund,  created  pursuant  to
Section 4.03 of the Regional  Transportation  Authority  Act.
The  remainder  of  the  money  paid from such sales shall be
distributed to each county based on sales for which  Illinois
addresses  for  titling or registration purposes are given as
being located  in  the  county.   Any  money  paid  into  the
Regional  Transportation  Authority  Occupation  and  Use Tax
Replacement Fund from the County and  Mass  Transit  District
Fund  prior  to  January 14, 1991, which has not been paid to
the Authority prior to that date, shall be transferred to the
Regional Transportation Authority tax fund.
    Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be
made to a claimant instead of issuing  a  credit  memorandum,
the  Department shall notify the State Comptroller, who shall
cause the order to be drawn for the amount specified, and  to
the  person  named, in such notification from the Department.
Such refund shall be paid by the State Treasurer out  of  the
County and Mass Transit District Fund.
    On  or  before  the  25th day of each calendar month, the
Department shall prepare and certify to the  Comptroller  the
disbursement   of  stated  sums  of  money  to  the  Regional
Transportation Authority and to named counties, the  counties
to   be   those  entitled  to  distribution,  as  hereinabove
provided, of taxes or penalties paid to the Department during
the second preceding calendar month.  The amount to  be  paid
to  the  Regional  Transportation  Authority  and each county
having 3,000,000 or fewer inhabitants  shall  be  the  amount
(not  including credit memoranda) collected during the second
preceding calendar month by the Department and paid into  the
County  and  Mass  Transit  District Fund, plus an amount the
Department determines is  necessary  to  offset  any  amounts
which  were  erroneously paid to a different taxing body, and
not including an amount equal to the amount of  refunds  made
during the second preceding calendar month by the Department,
and  not including any amount which the Department determines
is necessary to offset any amounts which were  payable  to  a
different  taxing  body  but  were  erroneously  paid  to the
Regional Transportation Authority or county.  Within 10  days
after  receipt,  by  the  Comptroller,  of  the  disbursement
certification  to  the  Regional Transportation Authority and
counties, provided for in this Section to  be  given  to  the
Comptroller  by  the  Department, the Comptroller shall cause
the  orders  to  be  drawn  for  the  respective  amounts  in
accordance   with   the   directions   contained   in    such
certification.
    When  certifying  the amount of a monthly disbursement to
the Regional Transportation Authority or to  a  county  under
this  Section, the Department shall increase or decrease that
amount by an amount necessary to offset any misallocation  of
previous  disbursements.   The  offset  amount  shall  be the
amount erroneously disbursed within the  6  months  preceding
the time a misallocation is discovered.
    The  provisions  directing  the  distributions  from  the
special  fund  in  the  State  Treasury  provided for in this
Section and from the Regional  Transportation  Authority  tax
fund  created  by Section 4.03 of the Regional Transportation
Authority Act shall constitute an irrevocable and  continuing
appropriation  of  all  amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in  effect  prior  to
September 1, 1990, which describes or refers to receipts from
a  county  or municipal retailers' occupation tax, use tax or
service occupation tax which  now  cannot  be  imposed,  such
description  or  reference  shall  be  deemed  to include the
replacement revenue for  such  abolished  taxes,  distributed
from  the  County  and  Mass  Transit  District Fund or Local
Government Distributive Fund, as the case may be.
(Source: P.A. 90-491, eff. 1-1-98.)

    Section 5.  The  Use  Tax  Act  is  amended  by  changing
Sections 3-10 and 9 as follows:

    (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
    Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
this Section, the tax imposed by this Act is at the  rate  of
6.25%  of  either the selling price or the fair market value,
if any, of the tangible  personal  property.   In  all  cases
where  property  functionally used or consumed is the same as
the property that was purchased at retail, then  the  tax  is
imposed  on  the selling price of the property.  In all cases
where property functionally used or consumed is a  by-product
or  waste  product  that  has  been refined, manufactured, or
produced from property purchased at retail, then the  tax  is
imposed on the lower of the fair market value, if any, of the
specific  property  so  used  in this State or on the selling
price of the property purchased at retail.  For  purposes  of
this  Section  "fair  market  value" means the price at which
property would change hands between a  willing  buyer  and  a
willing  seller, neither being under any compulsion to buy or
sell and both having reasonable  knowledge  of  the  relevant
facts. The fair market value shall be established by Illinois
sales   by   the  taxpayer  of  the  same  property  as  that
functionally used or consumed, or if there are no such  sales
by  the  taxpayer,  then  comparable  sales  or  purchases of
property of like kind and character in Illinois.
    Beginning on July 1, 2000 and through December 31,  2000,
with  respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With  respect  to  gasohol,  the  tax imposed by this Act
applies to 70% of the proceeds of  sales  made  on  or  after
January  1, 1990, and before July 1, 2003, and to 100% of the
proceeds of sales made thereafter.
    With respect to food for human consumption that is to  be
consumed  off  the  premises  where  it  is  sold (other than
alcoholic beverages, soft drinks,  and  food  that  has  been
prepared  for  immediate  consumption)  and  prescription and
nonprescription   medicines,   drugs,   medical   appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and  insulin,  urine  testing
materials, syringes, and needles used by diabetics, for human
use,  the  tax is imposed at the rate of 1%. For the purposes
of this Section, the term "soft drinks" means  any  complete,
finished,    ready-to-use,   non-alcoholic   drink,   whether
carbonated or not, including but not limited to  soda  water,
cola, fruit juice, vegetable juice, carbonated water, and all
other  preparations commonly known as soft drinks of whatever
kind or description that  are  contained  in  any  closed  or
sealed bottle, can, carton, or container, regardless of size.
"Soft  drinks"  does  not include coffee, tea, non-carbonated
water, infant formula, milk or milk products  as  defined  in
the Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding  any  other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold  through  a  vending
machine,  except  soft  drinks  and  food  products  that are
dispensed hot from  a  vending  machine,  regardless  of  the
location of the vending machine.
    If  the  property  that  is  purchased  at  retail from a
retailer  is  acquired  outside  Illinois  and  used  outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the  tax
is  computed  shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
91-51, eff. 6-30-99.)

    (35 ILCS 105/9) (from Ch. 120, par. 439.9)
    Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
aircraft, and trailers that are  required  to  be  registered
with  an  agency  of  this  State,  each retailer required or
authorized to collect the tax imposed by this Act  shall  pay
to the Department the amount of such tax (except as otherwise
provided)  at the time when he is required to file his return
for the period during which such tax was  collected,  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
expenses incurred in collecting  the  tax,  keeping  records,
preparing and filing returns, remitting the tax and supplying
data  to the Department on request.  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.   A retailer need not
remit that part of any tax collected by  him  to  the  extent
that  he  is required to remit and does remit the tax imposed
by the Retailers' Occupation Tax Act,  with  respect  to  the
sale of the same property.
    Where  such  tangible  personal  property is sold under a
conditional sales contract, or under any other form  of  sale
wherein  the payment of the principal sum, or a part thereof,
is extended beyond the close of  the  period  for  which  the
return  is filed, the retailer, in collecting the tax (except
as to motor vehicles, watercraft, aircraft, and trailers that
are required to be registered with an agency of this  State),
may  collect  for  each  tax  return  period,  only  the  tax
applicable  to  that  part  of  the  selling  price  actually
received during such tax return period.
    Except  as  provided  in  this  Section, on or before the
twentieth day of each calendar  month,  such  retailer  shall
file  a return for the preceding calendar month.  Such return
shall be filed on forms  prescribed  by  the  Department  and
shall   furnish   such  information  as  the  Department  may
reasonably require.
    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;
         5-5.  The signature of the taxpayer; and
         6.  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.
    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"  means  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.
    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.
    Before October 1, 2000, if the taxpayer's average monthly
tax  liability  to  the  Department  under  this   Act,   the
Retailers'  Occupation  Tax  Act,  the Service Occupation Tax
Act, the Service Use Tax 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  Retailers'
Occupation  Tax  Act, the Service Occupation Tax Act, and the
Service Use Tax 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  or  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  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  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 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
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.
    If  any such payment provided for in this Section exceeds
the taxpayer's liabilities under  this  Act,  the  Retailers'
Occupation  Tax  Act,  the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly  return,
the   Department   shall  issue  to  the  taxpayer  a  credit
memorandum no later than 30 days after the date  of  payment,
which  memorandum  may  be  submitted  by the taxpayer to the
Department in payment of tax  liability  subsequently  to  be
remitted  by the taxpayer to the Department or be assigned by
the taxpayer to  a  similar  taxpayer  under  this  Act,  the
Retailers' Occupation 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,
except  that  if  such excess payment is shown on an original
monthly return and is made after December 31, 1986, no credit
memorandum shall be issued, unless requested by the taxpayer.
If no such request is made,  the  taxpayer  may  credit  such
excess  payment  against  tax  liability  subsequently  to be
remitted by the taxpayer to the Department  under  this  Act,
the Retailers' Occupation 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 determines that all or  any  part  of
the  credit  taken  was not actually due to the taxpayer, the
taxpayer's 2.1% or 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 the taxpayer shall be  liable  for
penalties and interest on such difference.
    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  to  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.
    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
where, in the  same  transaction,  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 or trailer  retailer  for
the  purpose of resale, that seller for resale may report the
transfer of all the 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.
    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 2 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 and 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 2 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 date 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 tax that is imposed by  this  Act  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 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 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.
    Where a retailer collects the tax  with  respect  to  the
selling  price  of  tangible personal property which he sells
and the purchaser thereafter returns such  tangible  personal
property  and  the retailer refunds the selling price thereof
to the purchaser, such retailer shall  also  refund,  to  the
purchaser,  the  tax  so  collected  from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount  of  the
tax  so  refunded  by him to the purchaser from any other use
tax which such retailer may be required to pay  or  remit  to
the Department, as shown by such return, if the amount of the
tax  to be deducted was previously remitted to the Department
by  such  retailer.   If  the  retailer  has  not  previously
remitted the amount of such tax  to  the  Department,  he  is
entitled  to  no deduction under this Act upon refunding such
tax to the purchaser.
    Any retailer filing a return  under  this  Section  shall
also  include  (for  the  purpose  of paying tax thereon) the
total tax covered by such return upon the  selling  price  of
tangible  personal property purchased by him at retail from a
retailer, but as to which the tax imposed by this Act was not
collected from the retailer  filing  such  return,  and  such
retailer shall remit the amount of such tax to the Department
when filing such return.
    If  experience  indicates  such action to be practicable,
the Department may prescribe and  furnish  a  combination  or
joint return which will enable retailers, who are required to
file   returns   hereunder  and  also  under  the  Retailers'
Occupation Tax Act, to furnish  all  the  return  information
required by both Acts on the one form.
    Where  the retailer has more than one business registered
with the Department under separate  registration  under  this
Act,  such retailer 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.
    Beginning January 1,  1990,  each  month  the  Department
shall  pay  into the State and Local Sales Tax Reform 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  4%
of  the net revenue realized for the preceding month from the
6.25% general rate on the selling price of tangible  personal
property which is purchased outside Illinois at retail from a
retailer  and  which  is titled or registered by an agency of
this State's government.
    Beginning January 1,  1990,  each  month  the  Department
shall  pay  into the State and Local Sales Tax Reform Fund, a
special fund in the State Treasury, 20% of  the  net  revenue
realized  for the preceding month from the 6.25% general rate
on the selling price of  tangible  personal  property,  other
than  tangible  personal  property which is purchased outside
Illinois at retail from a retailer and  which  is  titled  or
registered by an agency of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay  into  the  State and Local Sales Tax Reform Fund 100% 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 which is purchased outside Illinois at retail from a
retailer  and  which  is titled or registered by an agency of
this State's government.
    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  Section 3 of the Retailers' Occupation Tax 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  defined  in  Section  3 of the Retailers' Occupation Tax
Act), 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  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 during  such
month  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; and, further provided, that the amounts
payable into the Build Illinois Fund under  this  clause  (b)
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 the
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  preceding  sentence  and  shall  reduce  the  amount
otherwise payable for such fiscal year pursuant to clause (b)
of  the  preceding  sentence.   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 the 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                        84,000,000
             2003                        89,000,000
             2004                        93,000,000
             2005                        97,000,000
             2006                       102,000,000
             2007                       108,000,000
             2008                       115,000,000
             2009                       120,000,000
             2010                       126,000,000
             2011                       132,000,000
             2012                       138,000,000
             2013 and                   145,000,000
    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 2029.
    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  amendment  thereto
hereafter  enacted,  each month the Department shall pay into
the Local Government Distributive Fund .4% of the net revenue
realized for the preceding month from the 5% general rate, or
.4% of 80% of the net  revenue  realized  for  the  preceding
month from the 6.25% general rate, as the case may be, on the
selling  price  of  tangible  personal  property which amount
shall, subject to appropriation, be distributed  as  provided
in Section 2 of the State Revenue Sharing Act. No payments or
distributions pursuant to this paragraph shall be made if the
tax  imposed  by  this  Act  on  photoprocessing  products is
declared unconstitutional, or if the proceeds from  such  tax
are unavailable for distribution because of litigation.
    Subject  to  payment  of  amounts into the Build Illinois
Fund, the McCormick Place Expansion  Project  Fund,  and  the
Local  Government Distributive 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.
    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.
    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.
(Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

    Section  10.   The  Service  Use  Tax  Act  is amended by
changing Sections 3-10 and 9 as follows:

    (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
    Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
this  Section,  the tax imposed by this Act is at the rate of
6.25% of the selling  price  of  tangible  personal  property
transferred  as  an incident to the sale of service, but, for
the purpose of computing this tax,  in  no  event  shall  the
selling  price be less than the cost price of the property to
the serviceman.
    Beginning on July 1, 2000 and through December 31,  2000,
with  respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With  respect  to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act applies to  70%  of  the  selling
price  of  property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
and to 100% of the selling price thereafter.
    At the election of any  registered  serviceman  made  for
each  fiscal  year,  sales  of service in which the aggregate
annual cost price of tangible personal  property  transferred
as  an  incident to the sales of service is less than 35%, or
75% in the case of servicemen transferring prescription drugs
or servicemen engaged in  graphic  arts  production,  of  the
aggregate  annual  total  gross  receipts  from  all sales of
service, the tax imposed by this Act shall be  based  on  the
serviceman's  cost  price  of  the tangible personal property
transferred as an incident to the sale of those services.
    The tax shall be imposed  at  the  rate  of  1%  on  food
prepared  for  immediate consumption and transferred incident
to a sale of service subject  to  this  Act  or  the  Service
Occupation  Tax  Act by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, or the  Child  Care
Act of 1969.  The tax shall also be imposed at the rate of 1%
on  food for human consumption that is to be consumed off the
premises where it is sold (other  than  alcoholic  beverages,
soft  drinks,  and  food that has been prepared for immediate
consumption and is not otherwise included in this  paragraph)
and   prescription   and  nonprescription  medicines,  drugs,
medical appliances, modifications to a motor vehicle for  the
purpose  of  rendering  it  usable  by a disabled person, and
insulin, urine testing materials, syringes, and needles  used
by  diabetics,  for  human  use.  For  the  purposes  of this
Section, the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including but not limited to soda water, cola,  fruit  juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that  are  contained  in  any  closed  or sealed bottle, can,
carton, or container, regardless of size.  "Soft drinks" does
not  include  coffee,  tea,  non-carbonated   water,   infant
formula,  milk  or  milk  products  as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks  containing
50% or more natural fruit or vegetable juice.
    Notwithstanding  any  other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold  through  a  vending
machine,  except  soft  drinks  and  food  products  that are
dispensed hot from  a  vending  machine,  regardless  of  the
location of the vending machine.
    If  the  property  that  is acquired from a serviceman is
acquired outside Illinois and used  outside  Illinois  before
being  brought  to Illinois for use here and is taxable under
this Act, the "selling price" on which the  tax  is  computed
shall  be  reduced  by an amount that represents a reasonable
allowance  for  depreciation  for   the   period   of   prior
out-of-state use.
(Source: P.A.  90-605,  eff.  6-30-98;  90-606, eff. 6-30-98;
91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)

    (35 ILCS 110/9) (from Ch. 120, par. 439.39)
    Sec.  9.  Each  serviceman  required  or  authorized   to
collect  the  tax  herein imposed shall pay to the Department
the amount of such tax (except as otherwise provided) at  the
time  when  he  is required to file his return for the period
during which such tax was collected, 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 serviceman for expenses incurred  in
collecting  the  tax,  keeping  records, preparing and filing
returns,  remitting  the  tax  and  supplying  data  to   the
Department  on request. A serviceman need not remit that part
of any tax collected by him to the extent that he is required
to pay and does pay the tax imposed by the Service Occupation
Tax Act with respect to his sale  of  service  involving  the
incidental transfer by him of the same property.
    Except  as  provided  hereinafter  in this Section, on or
before  the  twentieth  day  of  each  calendar  month,  such
serviceman shall file a return  for  the  preceding  calendar
month  in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be  filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require.
    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 business as a serviceman in this
    State;
         3.  The total amount of taxable receipts received by
    him  during  the  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;
         5-5.  The signature of the taxpayer; and
         6.  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.
    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"  means  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.
    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.
    If the serviceman is otherwise required to file a monthly
return and if the serviceman'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 serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's  average  monthly
tax  liability  to  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 serviceman  may  file  his
return, in the case of any serviceman who ceases to engage in
a  kind  of  business  which makes him responsible for filing
returns under this Act, such serviceman shall  file  a  final
return  under  this  Act  with the Department not more than 1
month after discontinuing such business.
    Where a serviceman collects the tax with respect  to  the
selling  price  of  property which he sells and the purchaser
thereafter returns such property and the  serviceman  refunds
the  selling  price thereof to the purchaser, such serviceman
shall also refund, to the purchaser,  the  tax  so  collected
from  the purchaser. When filing his return for the period in
which he refunds such tax to the  purchaser,  the  serviceman
may  deduct  the  amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service  Occupation
Tax,   retailers'  occupation  tax  or  use  tax  which  such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the  tax
to  be  deducted  shall  previously have been remitted to the
Department by such serviceman. If the  serviceman  shall  not
previously  have  remitted  the  amount  of  such  tax to the
Department, he shall be entitled to  no  deduction  hereunder
upon refunding such tax to the purchaser.
    Any  serviceman  filing  a  return  hereunder  shall also
include the total tax upon  the  selling  price  of  tangible
personal  property purchased for use by him as an incident to
a sale of service, and such serviceman shall remit the amount
of such tax to the Department when filing such return.
    If experience indicates such action  to  be  practicable,
the  Department  may  prescribe  and furnish a combination or
joint return which will enable servicemen, who  are  required
to   file  returns  hereunder  and  also  under  the  Service
Occupation Tax Act, to furnish  all  the  return  information
required by both Acts on the one form.
    Where   the   serviceman   has  more  than  one  business
registered with the Department  under  separate  registration
hereunder, such serviceman shall 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.
    Beginning  January  1,  1990,  each  month the Department
shall pay into the State and Local Tax Reform Fund, a special
fund in the State Treasury, 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 State and Local Sales Tax Reform Fund  20%
of  the net revenue realized for the preceding month from the
6.25%  general  rate  on  transfers  of   tangible   personal
property,  other  than  tangible  personal  property which is
purchased outside Illinois at  retail  from  a  retailer  and
which  is  titled  or registered by an agency of this State's
government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform  Fund  100%  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  Section 3 of the Retailers' Occupation Tax 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  defined  in  Section  3 of the Retailers' Occupation Tax
Act), 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  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 during  such
month  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; and, further provided, that the amounts
payable into the Build Illinois Fund under  this  clause  (b)
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 the
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  preceding  sentence  and  shall  reduce  the  amount
otherwise payable for such fiscal year pursuant to clause (b)
of  the  preceding  sentence.   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 the 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                           84,000,000
         2003                           89,000,000
         2004                           93,000,000
         2005                           97,000,000
         2006                           102,000,000
         2007                           108,000,000
         2008                           115,000,000
         2009                           120,000,000
         2010                           126,000,000
         2011                           132,000,000
         2012                           138,000,000
         2013 and                       145,000,000
    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 2029.
    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  amendment  thereto
hereafter  enacted,  each month the Department shall pay into
the Local  Government  Distributive  Fund  0.4%  of  the  net
revenue  realized for the preceding month from the 5% general
rate or 0.4% of 80% of  the  net  revenue  realized  for  the
preceding  month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property  which
amount  shall,  subject  to  appropriation, be distributed as
provided in Section 2 of the State Revenue  Sharing  Act.  No
payments or distributions pursuant to this paragraph shall be
made  if  the  tax  imposed  by  this Act on photo processing
products is declared unconstitutional,  or  if  the  proceeds
from  such  tax  are  unavailable for distribution because of
litigation.
    Subject to payment of amounts  into  the  Build  Illinois
Fund,  the  McCormick  Place  Expansion Project Fund, and the
Local Government Distributive 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.
    All remaining moneys received by the Department  pursuant
to  this  Act  shall be paid into the General Revenue Fund of
the State Treasury.
    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.
(Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
revised 9-27-99.)

    Section 15.  The Service Occupation Tax Act is amended by
changing Sections 3-10 and 9 as follows:

    (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
    Sec.  3-10.  Rate  of  tax.  Unless otherwise provided in
this Section, the tax imposed by this Act is at the  rate  of
6.25%  of the "selling price", as defined in Section 2 of the
Service Use Tax Act, of the tangible personal property.   For
the  purpose  of  computing  this  tax, in no event shall the
"selling price" be less than the cost price to the serviceman
of the tangible personal property transferred.   The  selling
price  of each item of tangible personal property transferred
as an incident of a  sale  of  service  may  be  shown  as  a
distinct and separate item on the serviceman's billing to the
service  customer.  If the selling price is not so shown, the
selling price of the tangible personal property is deemed  to
be  50%  of  the  serviceman's  entire billing to the service
customer.  When, however, a serviceman contracts  to  design,
develop,  and  produce  special order machinery or equipment,
the  tax  imposed  by  this  Act  shall  be  based   on   the
serviceman's  cost  price  of  the tangible personal property
transferred incident to the completion of the contract.
    Beginning on July 1, 2000 and through December 31,  2000,
with  respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With  respect  to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act shall apply to 70%  of  the  cost
price  of  property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
and to 100% of the cost price thereafter.
    At the election of any  registered  serviceman  made  for
each  fiscal  year,  sales  of service in which the aggregate
annual cost price of tangible personal  property  transferred
as  an  incident to the sales of service is less than 35%, or
75% in the case of servicemen transferring prescription drugs
or servicemen engaged in  graphic  arts  production,  of  the
aggregate  annual  total  gross  receipts  from  all sales of
service, the tax imposed by this Act shall be  based  on  the
serviceman's  cost  price  of  the tangible personal property
transferred incident to the sale of those services.
    The tax shall be imposed  at  the  rate  of  1%  on  food
prepared  for  immediate consumption and transferred incident
to a sale of service subject  to  this  Act  or  the  Service
Occupation  Tax  Act by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, or the  Child  Care
Act of 1969.  The tax shall also be imposed at the rate of 1%
on  food for human consumption that is to be consumed off the
premises where it is sold (other  than  alcoholic  beverages,
soft  drinks,  and  food that has been prepared for immediate
consumption and is not otherwise included in this  paragraph)
and   prescription   and  nonprescription  medicines,  drugs,
medical appliances, modifications to a motor vehicle for  the
purpose  of  rendering  it  usable  by a disabled person, and
insulin, urine testing materials, syringes, and needles  used
by  diabetics,  for  human  use.   For  the  purposes of this
Section, the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including but not limited to soda water, cola,  fruit  juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that  are  contained  in any closed or sealed can, carton, or
container,  regardless  of  size.   "Soft  drinks"  does  not
include coffee, tea, non-carbonated  water,  infant  formula,
milk  or  milk products as defined in the Grade A Pasteurized
Milk and Milk Products Act, or drinks containing 50% or  more
natural fruit or vegetable juice.
    Notwithstanding  any  other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold  through  a  vending
machine,  except  soft  drinks  and  food  products  that are
dispensed hot from  a  vending  machine,  regardless  of  the
location of the vending machine.
(Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
91-51, 6-30-99; 91-541, eff. 8-13-99.)

    (35 ILCS 115/9) (from Ch. 120, par. 439.109)
    Sec.  9.   Each  serviceman  required  or  authorized  to
collect the tax herein imposed shall pay  to  the  Department
the  amount  of  such  tax at the time when he is required to
file his return for the period  during  which  such  tax  was
collectible,  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 serviceman for expenses incurred in  collecting
the  tax,  keeping  records,  preparing  and  filing returns,
remitting the tax and supplying data  to  the  Department  on
request.
    Where  such  tangible  personal  property is sold under a
conditional sales contract, or under any other form  of  sale
wherein  the payment of the principal sum, or a part thereof,
is extended beyond the close of  the  period  for  which  the
return  is  filed,  the serviceman, in collecting the tax may
collect, for each tax return period, only the tax  applicable
to  the  part  of  the selling price actually received during
such tax return period.
    Except as provided hereinafter in  this  Section,  on  or
before  the  twentieth  day  of  each  calendar  month,  such
serviceman  shall  file  a  return for the preceding calendar
month in accordance with reasonable rules and regulations  to
be  promulgated  by  the  Department of Revenue.  Such return
shall be filed on a form prescribed  by  the  Department  and
shall   contain   such  information  as  the  Department  may
reasonably require.
    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 business as a serviceman in this
    State;
         3.  The total amount of taxable receipts received by
    him   during  the  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;
         5-5.  The signature of the taxpayer; and
         6.  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.
    A  serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the  purchaser  provides  the  appropriate  documentation  as
required by Section 3-70 of the  Service  Use  Tax  Act.    A
Manufacturer's  Purchase  Credit certification, accepted by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be  used  by  that  serviceman  to  satisfy  Service
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.
    If  the serviceman'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 serviceman's average monthly tax liability to 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 serviceman  may  file  his
return, in the case of any serviceman who ceases to engage in
a  kind  of  business  which makes him responsible for filing
returns under this Act, such serviceman shall  file  a  final
return  under  this  Act  with the Department not more than 1
month after discontinuing such business.
    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" means  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.
    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.
    Where  a  serviceman collects the tax with respect to the
selling price of tangible personal property  which  he  sells
and  the  purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund,  to  the
purchaser,  the  tax  so  collected from the purchaser.  When
filing his return for the period in which he refunds such tax
to the purchaser, the serviceman may deduct the amount of the
tax so refunded by  him  to  the  purchaser  from  any  other
Service   Occupation   Tax,   Service   Use  Tax,  Retailers'
Occupation Tax or  Use  Tax  which  such  serviceman  may  be
required  to pay or remit to the Department, as shown by such
return, provided that the amount of the tax  to  be  deducted
shall previously have been remitted to the Department by such
serviceman.   If  the  serviceman  shall  not previously have
remitted the amount of such tax to the Department,  he  shall
be entitled to no deduction hereunder upon refunding such tax
to the purchaser.
    If  experience  indicates  such action to be practicable,
the Department may prescribe and  furnish  a  combination  or
joint  return  which will enable servicemen, who are required
to file returns  hereunder  and  also  under  the  Retailers'
Occupation  Tax  Act,  the Use Tax Act or the Service Use Tax
Act, to furnish all the return information  required  by  all
said Acts on the one form.
    Where   the   serviceman   has  more  than  one  business
registered with the Department under  separate  registrations
hereunder,  such  serviceman  shall file separate returns for
each registered business.
    Beginning January 1,  1990,  each  month  the  Department
shall  pay  into  the  Local  Government Tax Fund the 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 4%
of the 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
revenue realized for  the  preceding  month  from  the  6.25%
general rate on transfers 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  Section 3 of the Retailers' Occupation Tax 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  defined  in  Section  3 of the Retailers' Occupation Tax
Act), 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  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 Account in the Build Illinois Fund during
such month and (2) the amount transferred during  such  month
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; and, further provided, that the amounts payable
into the Build Illinois Fund under this clause (b)  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 the
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  preceding  sentence  and  shall  reduce  the  amount
otherwise payable for such fiscal year pursuant to clause (b)
of the  preceding  sentence.   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 the  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                        84,000,000
             2003                        89,000,000
             2004                        93,000,000
             2005                        97,000,000
             2006                       102,000,000
             2007                       108,000,000
             2008                       115,000,000
             2009                       120,000,000
             2010                       126,000,000
             2011                       132,000,000
             2012                       138,000,000
             2013 and                   145,000,000
    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 2029.
    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 amendment thereto
hereafter enacted, each month the Department shall  pay  into
the  Local  Government  Distributive  Fund  0.4%  of  the net
revenue realized for the preceding month from the 5%  general
rate  or  0.4%  of  80%  of  the net revenue realized for the
preceding month from the 6.25% general rate, as the case  may
be,  on the selling price of tangible personal property which
amount shall, subject to  appropriation,  be  distributed  as
provided  in  Section 2 of the State Revenue Sharing Act.  No
payments or distributions pursuant to this paragraph shall be
made if the  tax  imposed  by  this  Act  on  photoprocessing
products  is  declared  unconstitutional,  or if the proceeds
from such tax are unavailable  for  distribution  because  of
litigation.
    Subject  to  payment  of  amounts into the Build Illinois
Fund, the McCormick Place Expansion  Project  Fund,  and  the
Local  Government Distributive 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.
    Remaining  moneys  received by the Department pursuant to
this Act shall be paid into the General Revenue Fund  of  the
State Treasury.
    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 taxpayer'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 taxpayer shall attach to his
annual  return  a  schedule showing a reconciliation of the 2
amounts and the reasons for the difference.   The  taxpayer's
annual  return to the Department shall also disclose the cost
of goods sold by the taxpayer during the year covered by such
return, opening and closing inventories  of  such  goods  for
such  year, cost of goods used from stock or taken from stock
and given away by the taxpayer during  such  year,  pay  roll
information  of  the taxpayer'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  taxpayer
as hereinbefore 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 foregoing portion  of  this  Section  concerning  the
filing  of  an annual information return shall not apply to a
serviceman 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, it shall be
permissible  for  manufacturers,  importers  and  wholesalers
whose products are sold by numerous servicemen  in  Illinois,
and  who  wish  to  do  so,  to assume the responsibility for
accounting and paying to  the  Department  all  tax  accruing
under  this Act with respect to such sales, if the servicemen
who are  affected  do  not  make  written  objection  to  the
Department to this arrangement.
(Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
revised 9-28-99.)

    Section 20.  The Retailers' Occupation Tax Act is amended
by changing Sections 2-10, 2d, and 3 as follows:

    (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
    Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
this  Section,  the tax imposed by this Act is at the rate of
6.25% of gross  receipts  from  sales  of  tangible  personal
property made in the course of business.
    Beginning  on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of  the
Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
of the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Within  14  days  after  the  effective  date   of   this
amendatory Act of the 91st General Assembly, each retailer of
motor fuel and gasohol shall cause the following notice to be
posted   in  a  prominently  visible  place  on  each  retail
dispensing device that is used  to  dispense  motor  fuel  or
gasohol  in  the State of Illinois:  "As of July 1, 2000, the
State of Illinois has eliminated the State's share  of  sales
tax  on motor fuel and gasohol through December 31, 2000. The
price on this pump should  reflect  the  elimination  of  the
tax."   The  notice  shall be printed in bold print on a sign
that is no smaller than 4 inches by 8 inches.  The sign shall
be clearly visible to customers.  Any retailer who  fails  to
post or maintain a required sign through December 31, 2000 is
guilty  of  a  petty offense for which the fine shall be $500
per day per each retail premises where a violation occurs.
    With respect to gasohol, as defined in the Use  Tax  Act,
the tax imposed by this Act applies to 70% of the proceeds of
sales  made  on  or after January 1, 1990, and before July 1,
2003, and to 100% of the proceeds of sales made thereafter.
    With respect to food for human consumption that is to  be
consumed  off  the  premises  where  it  is  sold (other than
alcoholic beverages, soft drinks,  and  food  that  has  been
prepared  for  immediate  consumption)  and  prescription and
nonprescription   medicines,   drugs,   medical   appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and  insulin,  urine  testing
materials, syringes, and needles used by diabetics, for human
use,  the  tax is imposed at the rate of 1%. For the purposes
of this Section, the term "soft drinks" means  any  complete,
finished,    ready-to-use,   non-alcoholic   drink,   whether
carbonated or not, including but not limited to  soda  water,
cola, fruit juice, vegetable juice, carbonated water, and all
other  preparations commonly known as soft drinks of whatever
kind or description that  are  contained  in  any  closed  or
sealed bottle, can, carton, or container, regardless of size.
"Soft  drinks"  does  not include coffee, tea, non-carbonated
water, infant formula, milk or milk products  as  defined  in
the Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding  any  other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold  through  a  vending
machine,  except  soft  drinks  and  food  products  that are
dispensed hot from  a  vending  machine,  regardless  of  the
location of the vending machine.
(Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
91-51, eff. 6-30-99.)

    (35 ILCS 120/2d) (from Ch. 120, par. 441d)
    Sec. 2d.  Tax prepayment  by  motor  fuel  retailer.  Any
person  engaged  in  the  business  of  selling motor fuel at
retail, as defined in the Motor Fuel Tax Law, and who is  not
a  licensed  distributor or supplier, as defined in the Motor
Fuel Tax  Law,  shall  prepay  to  his  or  her  distributor,
supplier,  or  other  reseller of motor fuel a portion of the
tax imposed by this Act  if  the  distributor,  supplier,  or
other  reseller  of motor fuel is registered under Section 2a
or Section  2c  of  this  Act.   The  prepayment  requirement
provided for in this Section does not apply to liquid propane
gas.
    Beginning  on July 1, 2000 and through December 31, 2000,
the  Retailers'  Occupation  Tax  paid  to  the  distributor,
supplier, or other reseller shall be an amount equal to $0.01
$0.04 per gallon of the motor fuel, except gasohol as defined
in Section 2-10 of this Act which shall be an amount equal to
$0.01 $0.03  per  gallon,  purchased  from  the  distributor,
supplier, or other reseller.
    Before July 1, 2000 and then beginning on January 1, 2001
and  thereafter,  the  Retailers'  Occupation Tax paid to the
distributor, supplier, or other reseller shall be  an  amount
equal  to  $0.04 per gallon of the motor fuel, except gasohol
as defined in Section 2-10 of this  Act  which  shall  be  an
amount   equal  to  $0.03  per  gallon,  purchased  from  the
distributor, supplier, or other reseller.
    Any person engaged in the business of selling motor  fuel
at retail shall be entitled to a credit against tax due under
this  Act  in  an  amount  equal  to  the  tax  paid  to  the
distributor, supplier, or other reseller.
    Every distributor, supplier, or other reseller registered
as  provided  in  Section  2a or Section 2c of this Act shall
remit the prepaid tax on all motor fuel that is due from  any
person  engaged  in  the  business of selling at retail motor
fuel with the returns filed under Section 2f or Section 3  of
this  Act,  but  the  vendors  discount provided in Section 3
shall not  apply  to  the  amount  of  prepaid  tax  that  is
remitted.  Any  distributor or supplier who fails to properly
collect and remit the tax shall be liable for the  tax.   For
purposes  of this Section, the prepaid tax is due on invoiced
gallons sold during a month by the 20th day of the  following
month.
(Source: P.A. 86-1475; 87-14.)

    (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.
    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.
    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
where, in the  same  transaction,  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, that  seller  for  resale
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.
    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.
    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                        84,000,000
             2003                        89,000,000
             2004                        93,000,000
             2005                        97,000,000
             2006                       102,000,000
             2007                       108,000,000
             2008                       115,000,000
             2009                       120,000,000
             2010                       126,000,000
             2011                       132,000,000
             2012                       138,000,000
             2013 and                   145,000,000
    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 2029.
    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  amendment  thereto
hereafter  enacted,  each month the Department shall pay into
the Local  Government  Distributive  Fund  0.4%  of  the  net
revenue  realized for the preceding month from the 5% general
rate or 0.4% of 80% of  the  net  revenue  realized  for  the
preceding  month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property  which
amount  shall,  subject  to  appropriation, be distributed as
provided in Section 2 of the State Revenue Sharing  Act.   No
payments or distributions pursuant to this paragraph shall be
made  if  the  tax  imposed  by  this  Act on photoprocessing
products is declared unconstitutional,  or  if  the  proceeds
from  such  tax  are  unavailable for distribution because of
litigation.
    Subject to payment of amounts  into  the  Build  Illinois
Fund,  the McCormick Place Expansion Project 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.
    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.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

    Section 22.   The  Motor  Fuel  Tax  Law  is  amended  by
changing Section 13a as follows:

    (35 ILCS 505/13a) (from Ch. 120, par. 429a)
    Sec.  13a.   (1)  A tax is hereby imposed upon the use of
motor fuel upon highways of this State  by  commercial  motor
vehicles.  The  tax  shall be comprised of 2 parts.  Part (a)
shall be at the rate established by Section 2 of this Act, as
heretofore or hereafter amended.  Part (b) shall  be  at  the
rate  established by subsection (2) of this Section as now or
hereafter amended.
    (2)  A rate shall be established by the Department as  of
January 1  of each year using the average "selling price", as
defined  in  the Retailers' Occupation Tax Act, per gallon of
motor fuel sold in this State during the previous  12  months
and  multiplying  it  by  6  1/4%  to determine the cents per
gallon rate. For the period beginning on  July  1,  2000  and
through  December  31, 2000, the Department shall establish a
rate using the average "selling price",  as  defined  in  the
Retailers'  Occupation Tax Act, per gallon of motor fuel sold
in this State during calendar year 1999 and multiplying it by
1.25% to determine the cents per gallon rate.
(Source: P.A. 88-480.)
    Section 99.  Effective date.  This Act  takes  effect  on
July 1, 2000.

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