Section 125.120 Returns and Payment of Tax

a)         Each person who is required to pay the tax imposed by the RPOT Act shall make a return to the Department on or before the 20^th day of each month for the preceding calendar month stating the following:

1)         the taxpayer's name;

2)         the address of the taxpayer's principal place of business and the address of the principal place of business (if that is a different address) from which the taxpayer is engaged in the business of renting merchandise subject to the RPOT;

3)         the total amount of receipts received by the taxpayer during the preceding calendar month from renting merchandise subject to RPOT by the taxpayer;

4)         the total amount received by the taxpayer during the preceding calendar month from the renting of merchandise on an installment basis subject to the RPOT by the taxpayer;

5)         deductions allowed by the RPOT Act;

6)         gross receipts that were received by the taxpayer during the preceding calendar month and upon the basis of which the RPOT is imposed;

7)         the amount of RPOT due;

8)         the signature of the taxpayer; and

9)         any other information as the Department may request on the application form prescribed and furnished by the Department.

b)         Any return or document that is required to be filed under the RPOT Act shall be filed electronically, in the form and manner required by the Department.  Any payment required to be made under the RPOT Act shall be paid electronically, in the form and manner required by the Department.  The Department shall grant a waiver of the electronic filing or payment requirement under Section 20 of the Act for any taxpayer who petitions the Department and demonstrates undue hardship in complying with the electronic filing or payment requirement.  The waiver shall be for a period not to exceed 2 years but may be renewed an unlimited number of times for periods not to exceed 2 years each.  [35 ILCS 180/20]

c)         The taxpayer making the return provided for in this Section shall also pay to the Department, in accordance with this Section, the amount of tax, less a discount of 1.75%, not to exceed $1,000 per month beginning on January 1, 2025, which is allowed to reimburse the taxpayer for the expenses incurred in keeping records, collecting tax, preparing and filing returns, remitting the tax, and supplying data to the Department upon request.  No discount may be claimed by a taxpayer on returns not timely filed and for taxes not timely remitted.  No discount may be claimed by a taxpayer for any return that is not filed electronically.  No discount may be claimed by a taxpayer for any payment that is not made electronically, unless a waiver has been granted under subsection (b).

d)         Any amount that is required to be shown or reported on any return or other document under the RPOT Act shall, if the amount is not a whole-dollar amount, be increased to the nearest whole-dollar amount if the fractional part of a dollar is $0.50 or more and decreased to the nearest whole-dollar amount if the fractional part of a dollar is less than $0.50.  If a total amount of less than $1 is payable, refundable, or creditable, the amount shall be disregarded if it is less than $0.50 and shall be increased to $1 if it is $0.50 or more.

e)         Any taxpayer who ceases to engage in the kind of business that makes the person responsible for filing returns under the RPOT Act shall file a final return under the RPOT Act with the Department within one month after discontinuing business.

f)         Each taxpayer under the RPOT Act shall make estimated payments to the Department on or before the 7^th, 15^th, 22^nd, and last day of the month during which tax liability to the Department is incurred 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 the Retailers' Occupation Tax Act, was $20,000 or more during the preceding 4 complete calendar quarters, the taxpayer 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 7^th, 15^th, 22^nd and last day of the month during which such liability is incurred.  The payments shall be in an amount not less than the lower of either 22.5% of the taxpayer's actual tax liability for the month or 25% of the taxpayer's actual tax liability for the same calendar month of the preceding year.  The amount of the quarter-monthly payments shall be credited against the final tax liability of the taxpayer's return for that month.  If any quarter-monthly payment is not paid at the time or in the amount required by this subsection, 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 the 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 subsection.

g)         If any payment provided for in this Section exceeds the taxpayer's liabilities under the RPOT 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 the credit memorandum may be assigned by the taxpayer to a similar taxpayer under the RPOT Act.  If no such request is made, the taxpayer may credit the excess payment against tax liability subsequently to be remitted to the Department under the RPOT Act.  If the Department subsequently determines that all or any part of the credit taken was not actually due to the taxpayer, the taxpayer's discount shall be reduced, if necessary, to reflect the difference between the credit taken and that actually due, and that taxpayer shall be liable for penalties and interest on the difference.

h)         If a taxpayer fails to sign a return within 30 days after the proper notice and demand for signature by the Department is received by the taxpayer, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

(Source:  Amended at 49 Ill. Reg. 10759, effective August 8, 2025)

Section 125.125  Registration of Merchants

a)         It shall be unlawful for any merchant to engage in this State in the business of renting merchandise under a rental-purchase agreement in Illinois without a certificate of registration from the Department.  Every person engaged in this State in the business of renting merchandise shall apply to the Department (upon a form prescribed and furnished by the Department) for a certificate of registration under the RPOT Act.  The certificate of registration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act shall permit the merchant to engage in a business that is taxable under the RPOT Act without registering separately with the Department.  [35 ILCS 180/10]

b)         Each application shall be signed and verified and shall state:

1)         the name and social security number of the applicant;

2)         the address of the merchant's principal place of business;

3)         the address of the place of business from which the merchant engages in the business of renting merchandise in this State and the addresses of all other places of business, if any (enumerating such addresses, if any, in a separate list attached to and made a part of the application) from which the merchant engages in the business of renting merchandise in this State;

4)         the name and address of the person or persons who will be responsible for filing returns and payment of taxes due under the Act (see 35 ILCS 735/3-7);

5)         in the case of a publicly traded corporation, the name and title of the Chief Financial Officer, Chief Operating Officer, and any other officer or employee with responsibility for preparing tax returns under the Act; and, in the case of all other corporations, the name, title, and social security number of each corporate officer;

6)         in the case of a limited liability company, the name, social security number, and FEIN of each manager and member; and

7)         any other information as the Department may request on the application form prescribed and furnished by the Department.

c)         Upon completion, in proper form, of the application for certificate of registration, the Department shall issue to the applicant a certificate of registration that shall permit the person to whom it is issued to engage in the business of renting merchandise taxable under the Act in this State.  If an applicant engages in the business of renting merchandise at another location in this State, the Department shall furnish the applicant with a sub-certificate of registration for that place of business, and the applicant shall display the appropriate sub-certificate of registration at that place of business.  The sub-certificate of registration shall bear the same registration number as that appearing upon the certificate of registration to which the sub-certificate relates.

d)         A certificate of registration shall automatically be renewed, subject to revocation as provided by the RPOT Act and Section 125.130, for an additional 1 year from the date of its expiration, unless otherwise notified by the Department as provided by this Section.

e)         The Department may require an applicant for a certificate of registration to furnish a bond at the time of filing an application.  No certificate of registration under the RPOT Act will be issued by the Department until the applicant provides the Department with satisfactory security, if required.

f)         The Department may refuse to issue, reissue, or renew a certificate of registration authorized to be issued by the Department if a person who is named as the owner, a partner, a corporate officer, or, in the case of a limited liability company, a manager or member, of the applicant on the application for the certificate of registration is or has been named as the owner, a partner, a corporate officer, or, in the case of a limited liability company, a manager or member, on the application for the certificate of registration of a person that is in default for moneys due under the Act or any other tax or fee Act administered by the Department.  For purposes of this Section only, in determining whether a person is in default for moneys due, the Department shall include only amounts established as a final liability within the 23 years prior to the date of the Department's notice of refusal to issue or reissue the certificate of registration, permit, or license.  [20 ILCS 2505/2505-380(b)]

g)         When a taxpayer to whom a certificate of registration is issued under the RPOT Act is in default to the State of Illinois for delinquent returns or for moneys due under the Act or any other State tax act or municipal or county ordinance administered or enforced by the Department, the Department shall, not less than 60 days before the expiration of the certificate of registration, give notice to the taxpayer to whom the certificate was issued:

1)         of the account period of the delinquent returns;

2)         of the amount of tax, penalty and interest due and owing from the taxpayer; and

3)         that the certificate of registration shall not be automatically renewed upon its expiration date unless the taxpayer, on or before the date of expiration, has filed and paid the tax shown due on the delinquent returns or paid the defaulted amount in full.

h)         The Department may, in its discretion, approve renewal by a taxpayer who is in default if, at the time of renewal, the taxpayer files all of the delinquent returns or pays to the Department the percentage of the defaulted amount as may be determined by the Department and agrees in writing to a payment plan for paying the balance of the defaulted amount.

i)          Any person aggrieved by any decision of the Department under this Section may, within 20 days after notice of the decision, protest and request a hearing.  After receipt of the request for a hearing, the Department shall give notice to the person of the time and place fixed for the hearing, shall hold a hearing, and shall issue its final administrative decision in the matter to the person.  In the absence of a protest within 20 days, the Department's decision shall become final without any further determination being made or notice given.