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90_HB2333
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
35 ILCS 105/1a from Ch. 120, par. 439.1a
35 ILCS 105/3-10 from Ch. 120, par. 439.3-10
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 120/1c from Ch. 120, par. 440c
35 ILCS 120/2-10 from Ch. 120, par. 441-10
35 ILCS 120/3 from Ch. 120, par. 442
Creates the Automobile Leasing Occupation and Use Tax
Act. Imposes a tax at the rate of 5% of the gross receipts
of persons engaged in the business of leasing automobiles and
a tax at the rate of 5% of the leasing price upon the
privilege of using in this State an automobile that is leased
from a lessor. Amends the State Finance Act, the Use Tax
Act, and the Retailers' Occupation Tax Act. Imposes a use
tax and a retailers' occupation tax at the rate of 1.25% on
any motor vehicle that is sold to a lessor for the purpose of
leasing under a lease subject to the Automobile Leasing
Occupation and Use Tax Act. Imposes a tax at the rate of 5%
on a motor vehicle that has been leased by a lessor to a
lessee under a lease that is subject to the Automobile
Leasing Occupation and Use Tax Act and is subsequently sold
to the lessee of the vehicle. Provides for the distribution
of proceeds of the tax. Effective July 1, 1998.
LRB9007346KDpc
LRB9007346KDpc
1 AN ACT concerning taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Automobile Leasing Occupation and Use Tax Act.
6 Section 5. Definitions. As used in this Act:
7 "Automobile" means any motor vehicle of the first
8 division, a motor vehicle of the second division which is a
9 self-contained motor vehicle designed or permanently
10 converted to provide living quarters for recreational,
11 camping or travel use, with direct walk through access to the
12 living quarters from the driver's seat, or a motor vehicle of
13 the second division which is of the van configuration
14 designed for the transportation of not less than 7 nor more
15 than 16 passengers, as defined in Section 1-146 of the
16 Illinois Vehicle Code.
17 "Department" means the Department of Revenue.
18 "Person" means any natural individual, firm, partnership,
19 association, joint stock company, joint venture, public or
20 private corporation, or a receiver, executor, trustee,
21 conservator, or other representatives appointed by order of
22 any court.
23 "Leasing" means any transfer of the possession or right
24 to possession of an automobile to a user for a valuable
25 consideration for a period of more than 1 year.
26 "Lessor" means any person, firm, corporation, or
27 association engaged in the business of leasing automobiles to
28 users. For this purpose, the objective of making a profit is
29 not necessary to make the leasing activity a business.
30 "Lessee" means any user to whom the possession, or the
31 right to possession, of an automobile is transferred for a
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1 valuable consideration for a period more than one year which
2 is paid by such lessee or by someone else.
3 "Gross receipts" means the total leasing price for the
4 lease of an automobile. In the case of lease transactions in
5 which the consideration is paid to the lessor on an
6 installment basis, the amounts of such payments shall be
7 included by the lessor in gross receipts only as and when
8 payments are received by the lessor.
9 "Leasing price" means the consideration for leasing an
10 automobile valued in money, whether received in money or
11 otherwise, including cash, credits, property and services,
12 and shall be determined without any deduction on account of
13 the cost of the property leased, the cost of materials used,
14 labor or service cost or any other expense whatsoever, but
15 does not include charges that are added by lessors on account
16 of the lessor's tax liability under this Act, or on account
17 of the lessor's duty to collect, from the lessee, the tax
18 that is imposed by Section 20 of this Act. The phrase
19 "leasing price" does not include the residual value of the
20 automobile or any separately stated charge on the lessee's
21 bill for insurance.
22 "Maintaining a place of business in this State" means
23 having or maintaining within this State, directly or by a
24 subsidiary, an office, repair facilities, distribution house,
25 sales house, warehouse, or other place of business, or any
26 agent, or other representative, operating within this State,
27 irrespective of whether the place of business or agent or
28 other representative is located here permanently or
29 temporarily.
30 "Residual value" means the estimated value of the vehicle
31 at the end of the scheduled lease term, used by the lessor in
32 determining the base lease payment, as established by the
33 lessor at the time the lessor and lessee enter into the
34 lease.
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1 Section 10. Imposition of occupation tax. A tax is
2 imposed upon persons engaged in this State in the business of
3 leasing automobiles in Illinois at the rate of 5% of the
4 gross receipts received from such business. The tax herein
5 imposed does not apply to the leasing of automobiles to any
6 governmental body, nor to any corporation, society,
7 association, foundation or institution organized and operated
8 exclusively for charitable, religious or educational
9 purposes, nor to any not for profit corporation, society,
10 association, foundation, institution or organization which
11 has no compensated officers or employees and which is
12 organized and operated primarily for the recreation of
13 persons 55 years of age or older. Beginning July 1, 1998
14 through June 30, 1999, each month the Department shall pay
15 into the Tax Compliance and Administration Fund 3% of the
16 revenue realized from the tax imposed by this Section, and
17 the remaining such revenue shall be paid as provided for in
18 Section 3 of the Retailers' Occupation Tax Act. Beginning
19 July 1, 1999 and each month thereafter, the Department shall
20 pay into the Tax Compliance and Administration Fund 1% of the
21 revenue realized from the tax imposed by this Section, and
22 the remaining such revenue shall be paid as provided for in
23 Section 3 of the Retailers' Occupation Tax Act.
24 The Department shall have full power to administer and
25 enforce this Section, to collect all taxes and penalties due
26 hereunder, to dispose of taxes and penalties so collected in
27 the manner hereinafter provided, and to determine all rights
28 to credit memoranda, arising on account of the erroneous
29 payment of tax or penalty hereunder. In the administration
30 of, and compliance with, this Section, the Department and
31 persons who are subject to this Section shall have the same
32 rights, remedies, privileges, immunities, powers and duties,
33 and be subject to the same conditions, restrictions,
34 limitation, penalties and definitions of terms, and employ
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1 the same modes of procedure, as are prescribed in Sections 1,
2 1a, 2 through 2-65 (in respect to all provisions therein
3 other than the State rate of tax), 2a, 2b, 2c, 3 (except
4 provisions relating to transaction returns and quarter
5 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
6 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
7 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8 Penalty and Interest Act as fully as if those provisions were
9 set forth herein. For purposes of this Section, references
10 in such incorporated Sections of the Retailers' Occupation
11 Tax Act to retailers, sellers or persons engaged in the
12 business of selling tangible personal property means persons
13 engaged in the leasing of automobiles under leases subject to
14 this Act.
15 Section 15. Registration. Every person engaged in this
16 State in the business of leasing automobiles shall apply to
17 the Department (upon a form prescribed and furnished by the
18 Department) for a certificate of registration under this Act.
19 The certificate of registration that is issued by the
20 Department to a retailer under the Retailers' Occupation Tax
21 Act shall permit such lessor to engage in a business that is
22 taxable under this Section without registering separately
23 with the Department.
24 Section 20. Imposition of use tax. A tax is imposed upon
25 the privilege of using in this State, an automobile which is
26 leased from a lessor. Such tax is at the rate of 5% of the
27 leasing price of such automobile paid to the lessor under any
28 lease agreement. The tax herein imposed shall not apply to
29 any governmental body, nor to any corporation, society,
30 association, foundation or institution, organized and
31 operated exclusively for charitable, religious or educational
32 purposes, nor to any not for profit corporation, society,
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1 association, foundation, institution or organization which
2 has no compensated officers or employees and which is
3 organized and operated primarily for the recreation of
4 persons 55 years of age or older, when using tangible
5 personal property as a lessee. Beginning July 1, 1998
6 through June 30, 1999, each month the Department shall pay
7 into the Tax Compliance and Administration Fund 3% of the
8 revenue realized from the tax imposed by this Section, and
9 the remaining such revenue shall be paid as provided for in
10 Section 9 of the Use Tax Act. Beginning July 1, 1999 and
11 each month thereafter, the Department shall pay into the Tax
12 Compliance and Administration Fund 1% of the revenue realized
13 from the tax imposed by this Section, and the remaining such
14 revenue shall be paid as provided for in Section 9 of the Use
15 Tax Act.
16 The Department shall have full power to administer and
17 enforce this Section; to collect all taxes, penalties and
18 interest due hereunder; to dispose of taxes, penalties and
19 interest so collected in the manner hereinafter provided, and
20 to determine all rights to credit memoranda or refunds
21 arising on account of the erroneous payment of tax, penalty
22 or interest hereunder. In the administration of, and
23 compliance with, this Section, the Department and persons who
24 are subject to this Section shall have the same rights,
25 remedies, privileges, immunities, powers and duties, and be
26 subject to the same conditions, restrictions, limitations,
27 penalties and definitions of terms, and employ the same modes
28 of procedure, as are prescribed in Sections 2, 3 through
29 3-80, 4, 6, 7, 8, 9 (except provisions relating to
30 transaction returns and quarter monthly payments), 10, 11,
31 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
32 Act, and are not inconsistent with this Section, as fully as
33 if those provisions were set forth herein. For purposes of
34 this Section, references in such incorporated Sections of the
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1 Use Tax Act to users or purchasers means lessees of
2 automobiles under leases subject to this Act.
3 Section 25. Use tax collected. The use tax imposed by
4 Section 20 shall be collected from the lessee and remitted to
5 the Department by a lessor maintaining a place of business in
6 this State or who titles or registers an automobile with an
7 agency of this State's government that is used for leasing in
8 this State.
9 The use tax imposed by Section 20 and not paid to a
10 lessor pursuant to the preceding paragraph of this Section
11 shall be paid to the Department directly by any person using
12 such automobile within this State.
13 Lessors shall collect the tax from lessees by adding the
14 tax to the leasing price of the automobile, when leased for
15 use, in the manner prescribed by the Department. The
16 Department shall have the power to adopt and promulgate
17 reasonable rules and regulations for the adding of such tax
18 by lessors to leasing prices by prescribing bracket systems
19 for the purpose of enabling such lessors to add and collect,
20 as far as practicable, the amount of such tax.
21 The tax imposed by this Section shall, when collected, be
22 stated as a distinct item on the customer's bill, separate
23 and apart from the leasing price of the automobile.
24 Section 30. Severability clause. If any clause,
25 sentence, Section, provision or part thereof of this Act or
26 the application thereof to any person or circumstance shall
27 be adjudged to be unconstitutional, the remainder of this Act
28 or its application to persons or circumstances other than
29 those to which it is held invalid, shall not be affected
30 thereby. In particular, if any provision which exempts or
31 has the effect of exempting some class of users or some kind
32 of use from the tax imposed by this Act should be held to
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1 constitute or to result in an invalid classification or to be
2 unconstitutional for some other reason, such provision shall
3 be deemed to be severable with the remainder of this Act
4 without said provision being held constitutional.
5 Section 80. The State Finance Act is amended by changing
6 Sections 6z-18 and 6z-20 as follows:
7 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
8 Sec. 6z-18. A portion of the money paid into the Local
9 Government Tax Fund from sales of food for human consumption
10 which is to be consumed off the premises where it is sold
11 (other than alcoholic beverages, soft drinks and food which
12 has been prepared for immediate consumption) and prescription
13 and nonprescription medicines, drugs, medical appliances and
14 insulin, urine testing materials, syringes and needles used
15 by diabetics, which occurred in municipalities, shall be
16 distributed to each municipality based upon the sales which
17 occurred in that municipality. The remainder shall be
18 distributed to each county based upon the sales which
19 occurred in the unincorporated area of that county.
20 A portion of the money paid into the Local Government Tax
21 Fund from the 6.25% general use tax rate on the selling price
22 of tangible personal property which is purchased outside
23 Illinois at retail from a retailer and which is titled or
24 registered by any agency of this State's government shall be
25 distributed to municipalities as provided in this paragraph.
26 Each municipality shall receive the amount attributable to
27 sales for which Illinois addresses for titling or
28 registration purposes are given as being in such
29 municipality. The remainder of the money paid into the Local
30 Government Tax Fund from such sales shall be distributed to
31 counties. Each county shall receive the amount attributable
32 to sales for which Illinois addresses for titling or
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1 registration purposes are given as being located in the
2 unincorporated area of such county.
3 A portion of the money paid into the Local Government Tax
4 Fund from the 1.25% rate imposed under the Use Tax Act upon
5 the selling price of any motor vehicle that is purchased
6 outside of Illinois at retail by a lessor for purposes of
7 leasing under a lease subject to the Automobile Leasing
8 Occupation and Use Tax Act which is titled or registered by
9 any agency of this State's government shall be distributed as
10 provided in this paragraph, less 3% for the first 12 monthly
11 distributions and 1% for each monthly distribution
12 thereafter, which sum shall be paid into the Tax Compliance
13 and Administration Fund. Each municipality shall receive the
14 amount attributable to sales for which Illinois addresses for
15 titling or registration purposes are given as being in such
16 municipality. The remainder of the money paid into the Local
17 Government Tax Fund from such sales shall be distributed to
18 counties. Each county shall receive the amount attributable
19 to sales for which Illinois addresses for titling or
20 registration purposes are given as being located in the
21 unincorporated area of such county.
22 A portion of the money paid into the Local Government Tax
23 Fund from the 6.25% general rate on sales subject to taxation
24 under the Retailers' Occupation Tax Act and the Service
25 Occupation Tax Act, which occurred in municipalities, shall
26 be distributed to each municipality, based upon the sales
27 which occurred in that municipality. The remainder shall be
28 distributed to each county, based upon the sales which
29 occurred in the unincorporated area of such county.
30 A portion of the money paid into the Local Government Tax
31 Fund from the 1.25% rate imposed by the Retailers' Occupation
32 Tax Act upon the sale of any motor vehicle that is sold at
33 retail to a lessor for purposes of leasing under a lease
34 subject to the Automobile Leasing Occupation and Use Tax Act
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1 shall be distributed as provided in this paragraph, less 3%
2 for the first 12 monthly distributions and 1% for each
3 monthly distribution thereafter, which sum shall be paid into
4 the Tax Compliance and Administration Fund. The funds shall
5 be distributed to each municipality, based upon the sales
6 which occurred in that municipality. The remainder shall be
7 distributed to each county, based upon the sales which
8 occurred in the unincorporated area of such county.
9 For the purpose of determining allocation to the local
10 government unit, a retail sale by a producer of coal or other
11 mineral mined in Illinois is a sale at retail at the place
12 where the coal or other mineral mined in Illinois is
13 extracted from the earth. This paragraph does not apply to
14 coal or other mineral when it is delivered or shipped by the
15 seller to the purchaser at a point outside Illinois so that
16 the sale is exempt under the United States Constitution as a
17 sale in interstate or foreign commerce.
18 Whenever the Department determines that a refund of money
19 paid into the Local Government Tax Fund should be made to a
20 claimant instead of issuing a credit memorandum, the
21 Department shall notify the State Comptroller, who shall
22 cause the order to be drawn for the amount specified, and to
23 the person named, in such notification from the Department.
24 Such refund shall be paid by the State Treasurer out of the
25 Local Government Tax Fund.
26 On or before the 25th day of each calendar month, the
27 Department shall prepare and certify to the Comptroller the
28 disbursement of stated sums of money to named municipalities
29 and counties, the municipalities and counties to be those
30 entitled to distribution of taxes or penalties paid to the
31 Department during the second preceding calendar month. The
32 amount to be paid to each municipality or county shall be the
33 amount (not including credit memoranda) collected during the
34 second preceding calendar month by the Department and paid
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1 into the Local Government Tax Fund, plus an amount the
2 Department determines is necessary to offset any amounts
3 which were erroneously paid to a different taxing body, and
4 not including an amount equal to the amount of refunds made
5 during the second preceding calendar month by the Department,
6 and not including any amount which the Department determines
7 is necessary to offset any amounts which are payable to a
8 different taxing body but were erroneously paid to the
9 municipality or county. Within 10 days after receipt, by the
10 Comptroller, of the disbursement certification to the
11 municipalities and counties, provided for in this Section to
12 be given to the Comptroller by the Department, the
13 Comptroller shall cause the orders to be drawn for the
14 respective amounts in accordance with the directions
15 contained in such certification.
16 When certifying the amount of monthly disbursement to a
17 municipality or county under this Section, the Department
18 shall increase or decrease that amount by an amount necessary
19 to offset any misallocation of previous disbursements. The
20 offset amount shall be the amount erroneously disbursed
21 within the 6 months preceding the time a misallocation is
22 discovered.
23 The provisions directing the distributions from the
24 special fund in the State Treasury provided for in this
25 Section shall constitute an irrevocable and continuing
26 appropriation of all amounts as provided herein. The State
27 Treasurer and State Comptroller are hereby authorized to make
28 distributions as provided in this Section.
29 In construing any development, redevelopment, annexation,
30 preannexation or other lawful agreement in effect prior to
31 September 1, 1990, which describes or refers to receipts from
32 a county or municipal retailers' occupation tax, use tax or
33 service occupation tax which now cannot be imposed, such
34 description or reference shall be deemed to include the
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1 replacement revenue for such abolished taxes, distributed
2 from the Local Government Tax Fund.
3 (Source: P.A. 90-491, eff. 1-1-98.)
4 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
5 Sec. 6z-20. Of the money received from the 6.25% general
6 rate on sales subject to taxation under the Retailers'
7 Occupation Tax Act and Service Occupation Tax Act and paid
8 into the County and Mass Transit District Fund, distribution
9 to the Regional Transportation Authority tax fund, created
10 pursuant to Section 4.03 of the Regional Transportation
11 Authority Act, for deposit therein shall be made based upon
12 the retail sales occurring in a county having more than
13 3,000,000 inhabitants. The remainder shall be distributed to
14 each county having 3,000,000 or fewer inhabitants based upon
15 the retail sales occurring in each such county.
16 Of the money received from the 1.25% rate imposed by the
17 Retailers' Occupation Tax Act upon the sale of any motor
18 vehicle that is sold at retail to a lessor for purposes of
19 leasing under a lease subject to the Automobile Leasing
20 Occupation and Use Tax Act, and paid into the County and Mass
21 Transit District Fund shall be distributed as provided in
22 this paragraph, less 3% for the first 12 monthly
23 distributions and 1% for each monthly distribution
24 thereafter, which sum shall be paid into the Tax Compliance
25 and Administration Fund. Distribution to the Regional
26 Transportation Authority Tax Fund, created pursuant to
27 Section 4.03 of the Regional Transportation Authority Act,
28 for deposit therein shall be made based upon the retail sales
29 occurring in a county having more than 3,000,000 inhabitants.
30 The remainder shall be distributed to each county having
31 3,000,000 or fewer inhabitants based upon the retail sales
32 occurring in each such county.
33 For the purpose of determining allocation to the local
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1 government unit, a retail sale by a producer of coal or other
2 mineral mined in Illinois is a sale at retail at the place
3 where the coal or other mineral mined in Illinois is
4 extracted from the earth. This paragraph does not apply to
5 coal or other mineral when it is delivered or shipped by the
6 seller to the purchaser at a point outside Illinois so that
7 the sale is exempt under the United States Constitution as a
8 sale in interstate or foreign commerce.
9 Of the money received from the 6.25% general use tax rate
10 on tangible personal property which is purchased outside
11 Illinois at retail from a retailer and which is titled or
12 registered by any agency of this State's government and paid
13 into the County and Mass Transit District Fund, the amount
14 for which Illinois addresses for titling or registration
15 purposes are given as being in each county having more than
16 3,000,000 inhabitants shall be distributed into the Regional
17 Transportation Authority tax fund, created pursuant to
18 Section 4.03 of the Regional Transportation Authority Act.
19 The remainder of the money paid from such sales shall be
20 distributed to each county based on sales for which Illinois
21 addresses for titling or registration purposes are given as
22 being located in the county. Any money paid into the
23 Regional Transportation Authority Occupation and Use Tax
24 Replacement Fund from the County and Mass Transit District
25 Fund prior to January 14, 1991, which has not been paid to
26 the Authority prior to that date, shall be transferred to the
27 Regional Transportation Authority tax fund.
28 Of the money received from the 1.25% rate imposed under
29 the Use Tax Act upon the selling price of any motor vehicle
30 that is purchased outside of Illinois at retail by a lessor
31 for purposes of leasing under a lease subject to the
32 Automobile Leasing Occupation and Use Tax Act which is titled
33 or registered by any agency of this State's government and is
34 paid into the County and Mass Transit District Fund, shall be
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1 distributed as provided in this paragraph, less 3% for the
2 first 12 monthly distributions and 1% for each monthly
3 distribution thereafter, which sum shall be paid into the Tax
4 Compliance and Administration Fund. The amount for which
5 Illinois addresses for titling or registration purposes are
6 given as being in each county having more than 3,000,000
7 inhabitants shall be distributed into the Regional
8 Transportation Authority Tax Fund, created pursuant to
9 Section 4.03 of the Regional Transportation Authority Act.
10 The remainder of the moneys paid from such sales shall be
11 distributed to each county based on sales for which Illinois
12 addresses for titling or registration purposes are given as
13 being located in that county.
14 Whenever the Department determines that a refund of money
15 paid into the County and Mass Transit District Fund should be
16 made to a claimant instead of issuing a credit memorandum,
17 the Department shall notify the State Comptroller, who shall
18 cause the order to be drawn for the amount specified, and to
19 the person named, in such notification from the Department.
20 Such refund shall be paid by the State Treasurer out of the
21 County and Mass Transit District Fund.
22 On or before the 25th day of each calendar month, the
23 Department shall prepare and certify to the Comptroller the
24 disbursement of stated sums of money to the Regional
25 Transportation Authority and to named counties, the counties
26 to be those entitled to distribution, as hereinabove
27 provided, of taxes or penalties paid to the Department during
28 the second preceding calendar month. The amount to be paid
29 to the Regional Transportation Authority and each county
30 having 3,000,000 or fewer inhabitants shall be the amount
31 (not including credit memoranda) collected during the second
32 preceding calendar month by the Department and paid into the
33 County and Mass Transit District Fund, plus an amount the
34 Department determines is necessary to offset any amounts
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1 which were erroneously paid to a different taxing body, and
2 not including an amount equal to the amount of refunds made
3 during the second preceding calendar month by the Department,
4 and not including any amount which the Department determines
5 is necessary to offset any amounts which were payable to a
6 different taxing body but were erroneously paid to the
7 Regional Transportation Authority or county. Within 10 days
8 after receipt, by the Comptroller, of the disbursement
9 certification to the Regional Transportation Authority and
10 counties, provided for in this Section to be given to the
11 Comptroller by the Department, the Comptroller shall cause
12 the orders to be drawn for the respective amounts in
13 accordance with the directions contained in such
14 certification.
15 When certifying the amount of a monthly disbursement to
16 the Regional Transportation Authority or to a county under
17 this Section, the Department shall increase or decrease that
18 amount by an amount necessary to offset any misallocation of
19 previous disbursements. The offset amount shall be the
20 amount erroneously disbursed within the 6 months preceding
21 the time a misallocation is discovered.
22 The provisions directing the distributions from the
23 special fund in the State Treasury provided for in this
24 Section and from the Regional Transportation Authority tax
25 fund created by Section 4.03 of the Regional Transportation
26 Authority Act shall constitute an irrevocable and continuing
27 appropriation of all amounts as provided herein. The State
28 Treasurer and State Comptroller are hereby authorized to make
29 distributions as provided in this Section.
30 In construing any development, redevelopment, annexation,
31 preannexation or other lawful agreement in effect prior to
32 September 1, 1990, which describes or refers to receipts from
33 a county or municipal retailers' occupation tax, use tax or
34 service occupation tax which now cannot be imposed, such
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1 description or reference shall be deemed to include the
2 replacement revenue for such abolished taxes, distributed
3 from the County and Mass Transit District Fund or Local
4 Government Distributive Fund, as the case may be.
5 (Source: P.A. 90-491, eff. 1-1-98.)
6 Section 85. The Use Tax Act is amended by changing
7 Sections 1a, 3-10, and 9 as follows:
8 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
9 Sec. 1a. A person who is engaged in the business of
10 leasing or renting motor vehicles to others and who, in
11 connection with such business sells any used motor vehicle to
12 a purchaser for his use and not for the purpose of resale, is
13 a retailer engaged in the business of selling tangible
14 personal property at retail under this Act to the extent of
15 the value of the vehicle sold. For the purpose of this
16 Section, "motor vehicle" means any motor vehicle of the first
17 division, a motor vehicle of the second division which is a
18 self-contained motor vehicle designed or permanently
19 converted to provide living quarters for recreational,
20 camping or travel use, with direct walk through access to the
21 living quarters from the driver's seat, or a motor vehicle of
22 a second division which is of the van configuration designed
23 for the transportation of not less than 7 nor more than 16
24 passengers, as defined in Section 1-146 of the Illinois
25 Vehicle Code. For the purpose of this Section, "motor
26 vehicle" has the meaning prescribed in Section 1-157 of The
27 Illinois Vehicle Code, as now or hereafter amended. (Nothing
28 provided herein shall affect liability incurred under this
29 Act because of the use of such motor vehicles as a lessor.)
30 (Source: P.A. 80-598.)
31 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
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1 Sec. 3-10. Rate of tax. Unless otherwise provided in
2 this Section, the tax imposed by this Act is at the rate of
3 6.25% of either the selling price or the fair market value,
4 if any, of the tangible personal property. In all cases
5 where property functionally used or consumed is the same as
6 the property that was purchased at retail, then the tax is
7 imposed on the selling price of the property. In all cases
8 where property functionally used or consumed is a by-product
9 or waste product that has been refined, manufactured, or
10 produced from property purchased at retail, then the tax is
11 imposed on the lower of the fair market value, if any, of the
12 specific property so used in this State or on the selling
13 price of the property purchased at retail. For purposes of
14 this Section "fair market value" means the price at which
15 property would change hands between a willing buyer and a
16 willing seller, neither being under any compulsion to buy or
17 sell and both having reasonable knowledge of the relevant
18 facts. The fair market value shall be established by Illinois
19 sales by the taxpayer of the same property as that
20 functionally used or consumed, or if there are no such sales
21 by the taxpayer, then comparable sales or purchases of
22 property of like kind and character in Illinois.
23 With respect to gasohol, the tax imposed by this Act
24 applies to 70% of the proceeds of sales made on or after
25 January 1, 1990, and before July 1, 1999, and to 100% of the
26 proceeds of sales made thereafter, except that from July 1,
27 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
28 in this State during the 12 months beginning July 1 following
29 any calendar year for which the Department has determined
30 that the percentages in Section 10 of the Gasohol Fuels Tax
31 Abatement Act have not been met.
32 With respect to food for human consumption that is to be
33 consumed off the premises where it is sold (other than
34 alcoholic beverages, soft drinks, and food that has been
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1 prepared for immediate consumption) and prescription and
2 nonprescription medicines, drugs, medical appliances,
3 modifications to a motor vehicle for the purpose of rendering
4 it usable by a disabled person, and insulin, urine testing
5 materials, syringes, and needles used by diabetics, for human
6 use, the tax is imposed at the rate of 1%. For the purposes
7 of this Section, the term "soft drinks" means any complete,
8 finished, ready-to-use, non-alcoholic drink, whether
9 carbonated or not, including but not limited to soda water,
10 cola, fruit juice, vegetable juice, carbonated water, and all
11 other preparations commonly known as soft drinks of whatever
12 kind or description that are contained in any closed or
13 sealed bottle, can, carton, or container, regardless of size.
14 "Soft drinks" does not include coffee, tea, non-carbonated
15 water, infant formula, milk or milk products as defined in
16 the Grade A Pasteurized Milk and Milk Products Act, or drinks
17 containing 50% or more natural fruit or vegetable juice.
18 Notwithstanding any other provisions of this Act, "food
19 for human consumption that is to be consumed off the premises
20 where it is sold" includes all food sold through a vending
21 machine, except soft drinks and food products that are
22 dispensed hot from a vending machine, regardless of the
23 location of the vending machine.
24 With respect to any motor vehicle (as the term "motor
25 vehicle" is defined in Section 1a of this Act) that is
26 purchased by a lessor for purposes of leasing under a lease
27 subject to the Automobile Leasing Occupation and Use Tax Act,
28 the tax is imposed at the rate of 1.25%.
29 With respect to any motor vehicle (as the term "motor
30 vehicle" is defined in Section 1a of this Act) that has been
31 leased by a lessor to a lessee under a lease that is subject
32 to the Automobile Leasing Occupation and Use Tax Act, and is
33 subsequently purchased by the lessee of such vehicle, the tax
34 is imposed at the rate of 5%.
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1 If the property that is purchased at retail from a
2 retailer is acquired outside Illinois and used outside
3 Illinois before being brought to Illinois for use here and is
4 taxable under this Act, the "selling price" on which the tax
5 is computed shall be reduced by an amount that represents a
6 reasonable allowance for depreciation for the period of prior
7 out-of-state use.
8 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
9 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
10 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
11 (Text of Section before amendment by P.A. 90-491)
12 Sec. 9. Except as to motor vehicles, watercraft,
13 aircraft, and trailers that are required to be registered
14 with an agency of this State, each retailer required or
15 authorized to collect the tax imposed by this Act shall pay
16 to the Department the amount of such tax (except as otherwise
17 provided) at the time when he is required to file his return
18 for the period during which such tax was collected, less a
19 discount of 2.1% prior to January 1, 1990, and 1.75% on and
20 after January 1, 1990, or $5 per calendar year, whichever is
21 greater, which is allowed to reimburse the retailer for
22 expenses incurred in collecting the tax, keeping records,
23 preparing and filing returns, remitting the tax and supplying
24 data to the Department on request. In the case of retailers
25 who report and pay the tax on a transaction by transaction
26 basis, as provided in this Section, such discount shall be
27 taken with each such tax remittance instead of when such
28 retailer files his periodic return. A retailer need not
29 remit that part of any tax collected by him to the extent
30 that he is required to remit and does remit the tax imposed
31 by the Retailers' Occupation Tax Act, with respect to the
32 sale of the same property.
33 Where such tangible personal property is sold under a
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1 conditional sales contract, or under any other form of sale
2 wherein the payment of the principal sum, or a part thereof,
3 is extended beyond the close of the period for which the
4 return is filed, the retailer, in collecting the tax (except
5 as to motor vehicles, watercraft, aircraft, and trailers that
6 are required to be registered with an agency of this State),
7 may collect for each tax return period, only the tax
8 applicable to that part of the selling price actually
9 received during such tax return period.
10 Except as provided in this Section, on or before the
11 twentieth day of each calendar month, such retailer shall
12 file a return for the preceding calendar month. Such return
13 shall be filed on forms prescribed by the Department and
14 shall furnish such information as the Department may
15 reasonably require.
16 The Department may require returns to be filed on a
17 quarterly basis. If so required, a return for each calendar
18 quarter shall be filed on or before the twentieth day of the
19 calendar month following the end of such calendar quarter.
20 The taxpayer shall also file a return with the Department for
21 each of the first two months of each calendar quarter, on or
22 before the twentieth day of the following calendar month,
23 stating:
24 1. The name of the seller;
25 2. The address of the principal place of business
26 from which he engages in the business of selling tangible
27 personal property at retail in this State;
28 3. The total amount of taxable receipts received by
29 him during the preceding calendar month from sales of
30 tangible personal property by him during such preceding
31 calendar month, including receipts from charge and time
32 sales, but less all deductions allowed by law;
33 4. The amount of credit provided in Section 2d of
34 this Act;
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1 5. The amount of tax due;
2 5-5. The signature of the taxpayer; and
3 6. Such other reasonable information as the
4 Department may require.
5 If a taxpayer fails to sign a return within 30 days after
6 the proper notice and demand for signature by the Department,
7 the return shall be considered valid and any amount shown to
8 be due on the return shall be deemed assessed.
9 Beginning October 1, 1993, a taxpayer who has an average
10 monthly tax liability of $150,000 or more shall make all
11 payments required by rules of the Department by electronic
12 funds transfer. Beginning October 1, 1994, a taxpayer who has
13 an average monthly tax liability of $100,000 or more shall
14 make all payments required by rules of the Department by
15 electronic funds transfer. Beginning October 1, 1995, a
16 taxpayer who has an average monthly tax liability of $50,000
17 or more shall make all payments required by rules of the
18 Department by electronic funds transfer. The term "average
19 monthly tax liability" means the sum of the taxpayer's
20 liabilities under this Act, and under all other State and
21 local occupation and use tax laws administered by the
22 Department, for the immediately preceding calendar year
23 divided by 12.
24 Before August 1 of each year beginning in 1993, the
25 Department shall notify all taxpayers required to make
26 payments by electronic funds transfer. All taxpayers required
27 to make payments by electronic funds transfer shall make
28 those payments for a minimum of one year beginning on October
29 1.
30 Any taxpayer not required to make payments by electronic
31 funds transfer may make payments by electronic funds transfer
32 with the permission of the Department.
33 All taxpayers required to make payment by electronic
34 funds transfer and any taxpayers authorized to voluntarily
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1 make payments by electronic funds transfer shall make those
2 payments in the manner authorized by the Department.
3 The Department shall adopt such rules as are necessary to
4 effectuate a program of electronic funds transfer and the
5 requirements of this Section.
6 If the taxpayer's average monthly tax liability to the
7 Department under this Act, the Retailers' Occupation Tax Act,
8 the Service Occupation Tax Act, the Service Use Tax Act was
9 $10,000 or more during the preceding 4 complete calendar
10 quarters, he shall file a return with the Department each
11 month by the 20th day of the month next following the month
12 during which such tax liability is incurred and shall make
13 payments to the Department on or before the 7th, 15th, 22nd
14 and last day of the month during which such liability is
15 incurred. If the month during which such tax liability is
16 incurred began prior to January 1, 1985, each payment shall
17 be in an amount equal to 1/4 of the taxpayer's actual
18 liability for the month or an amount set by the Department
19 not to exceed 1/4 of the average monthly liability of the
20 taxpayer to the Department for the preceding 4 complete
21 calendar quarters (excluding the month of highest liability
22 and the month of lowest liability in such 4 quarter period).
23 If the month during which such tax liability is incurred
24 begins on or after January 1, 1985, and prior to January 1,
25 1987, each payment shall be in an amount equal to 22.5% of
26 the taxpayer's actual liability for the month or 27.5% of the
27 taxpayer's liability for the same calendar month of the
28 preceding year. If the month during which such tax liability
29 is incurred begins on or after January 1, 1987, and prior to
30 January 1, 1988, each payment shall be in an amount equal to
31 22.5% of the taxpayer's actual liability for the month or
32 26.25% of the taxpayer's liability for the same calendar
33 month of the preceding year. If the month during which such
34 tax liability is incurred begins on or after January 1, 1988,
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1 and prior to January 1, 1989, or begins on or after January
2 1, 1996, each payment shall be in an amount equal to 22.5% of
3 the taxpayer's actual liability for the month or 25% of the
4 taxpayer's liability for the same calendar month of the
5 preceding year. If the month during which such tax liability
6 is incurred begins on or after January 1, 1989, and prior to
7 January 1, 1996, each payment shall be in an amount equal to
8 22.5% of the taxpayer's actual liability for the month or 25%
9 of the taxpayer's liability for the same calendar month of
10 the preceding year or 100% of the taxpayer's actual liability
11 for the quarter monthly reporting period. The amount of such
12 quarter monthly payments shall be credited against the final
13 tax liability of the taxpayer's return for that month. Once
14 applicable, the requirement of the making of quarter monthly
15 payments to the Department shall continue until such
16 taxpayer's average monthly liability to the Department during
17 the preceding 4 complete calendar quarters (excluding the
18 month of highest liability and the month of lowest liability)
19 is less than $9,000, or until such taxpayer's average monthly
20 liability to the Department as computed for each calendar
21 quarter of the 4 preceding complete calendar quarter period
22 is less than $10,000. However, if a taxpayer can show the
23 Department that a substantial change in the taxpayer's
24 business has occurred which causes the taxpayer to anticipate
25 that his average monthly tax liability for the reasonably
26 foreseeable future will fall below $10,000, then such
27 taxpayer may petition the Department for change in such
28 taxpayer's reporting status. The Department shall change
29 such taxpayer's reporting status unless it finds that such
30 change is seasonal in nature and not likely to be long term.
31 If any such quarter monthly payment is not paid at the time
32 or in the amount required by this Section, then the
33 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
34 by 2.1% or 1.75%, as the case may be, of the difference
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1 between the minimum amount due and the amount of such quarter
2 monthly payment actually and timely paid and the taxpayer
3 shall be liable for penalties and interest on such
4 difference, except insofar as the taxpayer has previously
5 made payments for that month to the Department in excess of
6 the minimum payments previously due as provided in this
7 Section. The Department shall make reasonable rules and
8 regulations to govern the quarter monthly payment amount and
9 quarter monthly payment dates for taxpayers who file on other
10 than a calendar monthly basis.
11 If any such payment provided for in this Section exceeds
12 the taxpayer's liabilities under this Act, the Retailers'
13 Occupation Tax Act, the Service Occupation Tax Act and the
14 Service Use Tax Act, as shown by an original monthly return,
15 the Department shall issue to the taxpayer a credit
16 memorandum no later than 30 days after the date of payment,
17 which memorandum may be submitted by the taxpayer to the
18 Department in payment of tax liability subsequently to be
19 remitted by the taxpayer to the Department or be assigned by
20 the taxpayer to a similar taxpayer under this Act, the
21 Retailers' Occupation Tax Act, the Service Occupation Tax Act
22 or the Service Use Tax Act, in accordance with reasonable
23 rules and regulations to be prescribed by the Department,
24 except that if such excess payment is shown on an original
25 monthly return and is made after December 31, 1986, no credit
26 memorandum shall be issued, unless requested by the taxpayer.
27 If no such request is made, the taxpayer may credit such
28 excess payment against tax liability subsequently to be
29 remitted by the taxpayer to the Department under this Act,
30 the Retailers' Occupation Tax Act, the Service Occupation Tax
31 Act or the Service Use Tax Act, in accordance with reasonable
32 rules and regulations prescribed by the Department. If the
33 Department subsequently determines that all or any part of
34 the credit taken was not actually due to the taxpayer, the
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1 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
2 by 2.1% or 1.75% of the difference between the credit taken
3 and that actually due, and the taxpayer shall be liable for
4 penalties and interest on such difference.
5 If the retailer is otherwise required to file a monthly
6 return and if the retailer's average monthly tax liability to
7 the Department does not exceed $200, the Department may
8 authorize his returns to be filed on a quarter annual basis,
9 with the return for January, February, and March of a given
10 year being due by April 20 of such year; with the return for
11 April, May and June of a given year being due by July 20 of
12 such year; with the return for July, August and September of
13 a given year being due by October 20 of such year, and with
14 the return for October, November and December of a given year
15 being due by January 20 of the following year.
16 If the retailer is otherwise required to file a monthly
17 or quarterly return and if the retailer's average monthly tax
18 liability to the Department does not exceed $50, the
19 Department may authorize his returns to be filed on an annual
20 basis, with the return for a given year being due by January
21 20 of the following year.
22 Such quarter annual and annual returns, as to form and
23 substance, shall be subject to the same requirements as
24 monthly returns.
25 Notwithstanding any other provision in this Act
26 concerning the time within which a retailer may file his
27 return, in the case of any retailer who ceases to engage in a
28 kind of business which makes him responsible for filing
29 returns under this Act, such retailer shall file a final
30 return under this Act with the Department not more than one
31 month after discontinuing such business.
32 In addition, with respect to motor vehicles, watercraft,
33 aircraft, and trailers that are required to be registered
34 with an agency of this State, every retailer selling this
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1 kind of tangible personal property shall file, with the
2 Department, upon a form to be prescribed and supplied by the
3 Department, a separate return for each such item of tangible
4 personal property which the retailer sells, except that
5 where, in the same transaction, a retailer of aircraft,
6 watercraft, motor vehicles or trailers transfers more than
7 one aircraft, watercraft, motor vehicle or trailer to another
8 aircraft, watercraft, motor vehicle or trailer retailer for
9 the purpose of resale, that seller for resale may report the
10 transfer of all the aircraft, watercraft, motor vehicles or
11 trailers involved in that transaction to the Department on
12 the same uniform invoice-transaction reporting return form.
13 For purposes of this Section, "watercraft" means a Class 2,
14 Class 3, or Class 4 watercraft as defined in Section 3-2 of
15 the Boat Registration and Safety Act, a personal watercraft,
16 or any boat equipped with an inboard motor.
17 The transaction reporting return in the case of motor
18 vehicles or trailers that are required to be registered with
19 an agency of this State, shall be the same document as the
20 Uniform Invoice referred to in Section 5-402 of the Illinois
21 Vehicle Code and must show the name and address of the
22 seller; the name and address of the purchaser; the amount of
23 the selling price including the amount allowed by the
24 retailer for traded-in property, if any; the amount allowed
25 by the retailer for the traded-in tangible personal property,
26 if any, to the extent to which Section 2 of this Act allows
27 an exemption for the value of traded-in property; the balance
28 payable after deducting such trade-in allowance from the
29 total selling price; the amount of tax due from the retailer
30 with respect to such transaction; the amount of tax collected
31 from the purchaser by the retailer on such transaction (or
32 satisfactory evidence that such tax is not due in that
33 particular instance, if that is claimed to be the fact); the
34 place and date of the sale; a sufficient identification of
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1 the property sold; such other information as is required in
2 Section 5-402 of the Illinois Vehicle Code, and such other
3 information as the Department may reasonably require.
4 The transaction reporting return in the case of
5 watercraft and aircraft must show the name and address of the
6 seller; the name and address of the purchaser; the amount of
7 the selling price including the amount allowed by the
8 retailer for traded-in property, if any; the amount allowed
9 by the retailer for the traded-in tangible personal property,
10 if any, to the extent to which Section 2 of this Act allows
11 an exemption for the value of traded-in property; the balance
12 payable after deducting such trade-in allowance from the
13 total selling price; the amount of tax due from the retailer
14 with respect to such transaction; the amount of tax collected
15 from the purchaser by the retailer on such transaction (or
16 satisfactory evidence that such tax is not due in that
17 particular instance, if that is claimed to be the fact); the
18 place and date of the sale, a sufficient identification of
19 the property sold, and such other information as the
20 Department may reasonably require.
21 Such transaction reporting return shall be filed not
22 later than 20 days after the date of delivery of the item
23 that is being sold, but may be filed by the retailer at any
24 time sooner than that if he chooses to do so. The
25 transaction reporting return and tax remittance or proof of
26 exemption from the tax that is imposed by this Act may be
27 transmitted to the Department by way of the State agency with
28 which, or State officer with whom, the tangible personal
29 property must be titled or registered (if titling or
30 registration is required) if the Department and such agency
31 or State officer determine that this procedure will expedite
32 the processing of applications for title or registration.
33 With each such transaction reporting return, the retailer
34 shall remit the proper amount of tax due (or shall submit
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1 satisfactory evidence that the sale is not taxable if that is
2 the case), to the Department or its agents, whereupon the
3 Department shall issue, in the purchaser's name, a tax
4 receipt (or a certificate of exemption if the Department is
5 satisfied that the particular sale is tax exempt) which such
6 purchaser may submit to the agency with which, or State
7 officer with whom, he must title or register the tangible
8 personal property that is involved (if titling or
9 registration is required) in support of such purchaser's
10 application for an Illinois certificate or other evidence of
11 title or registration to such tangible personal property.
12 No retailer's failure or refusal to remit tax under this
13 Act precludes a user, who has paid the proper tax to the
14 retailer, from obtaining his certificate of title or other
15 evidence of title or registration (if titling or registration
16 is required) upon satisfying the Department that such user
17 has paid the proper tax (if tax is due) to the retailer. The
18 Department shall adopt appropriate rules to carry out the
19 mandate of this paragraph.
20 If the user who would otherwise pay tax to the retailer
21 wants the transaction reporting return filed and the payment
22 of tax or proof of exemption made to the Department before
23 the retailer is willing to take these actions and such user
24 has not paid the tax to the retailer, such user may certify
25 to the fact of such delay by the retailer, and may (upon the
26 Department being satisfied of the truth of such
27 certification) transmit the information required by the
28 transaction reporting return and the remittance for tax or
29 proof of exemption directly to the Department and obtain his
30 tax receipt or exemption determination, in which event the
31 transaction reporting return and tax remittance (if a tax
32 payment was required) shall be credited by the Department to
33 the proper retailer's account with the Department, but
34 without the 2.1% or 1.75% discount provided for in this
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1 Section being allowed. When the user pays the tax directly
2 to the Department, he shall pay the tax in the same amount
3 and in the same form in which it would be remitted if the tax
4 had been remitted to the Department by the retailer.
5 Where a retailer collects the tax with respect to the
6 selling price of tangible personal property which he sells
7 and the purchaser thereafter returns such tangible personal
8 property and the retailer refunds the selling price thereof
9 to the purchaser, such retailer shall also refund, to the
10 purchaser, the tax so collected from the purchaser. When
11 filing his return for the period in which he refunds such tax
12 to the purchaser, the retailer may deduct the amount of the
13 tax so refunded by him to the purchaser from any other use
14 tax which such retailer may be required to pay or remit to
15 the Department, as shown by such return, if the amount of the
16 tax to be deducted was previously remitted to the Department
17 by such retailer. If the retailer has not previously
18 remitted the amount of such tax to the Department, he is
19 entitled to no deduction under this Act upon refunding such
20 tax to the purchaser.
21 Any retailer filing a return under this Section shall
22 also include (for the purpose of paying tax thereon) the
23 total tax covered by such return upon the selling price of
24 tangible personal property purchased by him at retail from a
25 retailer, but as to which the tax imposed by this Act was not
26 collected from the retailer filing such return, and such
27 retailer shall remit the amount of such tax to the Department
28 when filing such return.
29 If experience indicates such action to be practicable,
30 the Department may prescribe and furnish a combination or
31 joint return which will enable retailers, who are required to
32 file returns hereunder and also under the Retailers'
33 Occupation Tax Act, to furnish all the return information
34 required by both Acts on the one form.
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1 Where the retailer has more than one business registered
2 with the Department under separate registration under this
3 Act, such retailer may not file each return that is due as a
4 single return covering all such registered businesses, but
5 shall file separate returns for each such registered
6 business.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the State and Local Sales Tax Reform Fund, a
9 special fund in the State Treasury which is hereby created,
10 the net revenue realized for the preceding month from the 1%
11 tax on sales of food for human consumption which is to be
12 consumed off the premises where it is sold (other than
13 alcoholic beverages, soft drinks and food which has been
14 prepared for immediate consumption) and prescription and
15 nonprescription medicines, drugs, medical appliances and
16 insulin, urine testing materials, syringes and needles used
17 by diabetics.
18 Beginning January 1, 1990, each month the Department
19 shall pay into the County and Mass Transit District Fund 4%
20 of the net revenue realized for the preceding month from the
21 6.25% general rate on the selling price of tangible personal
22 property which is purchased outside Illinois at retail from a
23 retailer and which is titled or registered by an agency of
24 this State's government.
25 Each month the Department shall pay into the County and
26 Mass Transit District Fund 20% the net revenue realized for
27 the preceding month from the 1.25% rate imposed upon the
28 selling price of any motor vehicle that is purchased outside
29 Illinois at retail by a lessor for purposes of leasing under
30 a lease subject to the Automobile Leasing Occupation and Use
31 Tax Act and which is titled or registered by an agency of
32 this State's government.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the State and Local Sales Tax Reform Fund, a
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1 special fund in the State Treasury, 20% of the net revenue
2 realized for the preceding month from the 6.25% general rate
3 on the selling price of tangible personal property, other
4 than tangible personal property which is purchased outside
5 Illinois at retail from a retailer and which is titled or
6 registered by an agency of this State's government.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the Local Government Tax Fund 16% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property which is purchased outside Illinois at retail from a
12 retailer and which is titled or registered by an agency of
13 this State's government.
14 Each month the Department shall pay into the Local
15 Government Tax Fund 80% of the net revenue realized for the
16 preceding month from the 1.25% rate imposed upon the selling
17 price of any motor vehicle that is purchased outside Illinois
18 at retail by a lessor for purposes of leasing under a lease
19 subject to the Automobile Leasing Occupation and Use Tax Act
20 and which is titled or registered by an agency of this
21 State's government.
22 Of the remainder of the moneys received by the Department
23 pursuant to this Act, and including all moneys received by
24 the Department under Section 20 of the Automobile Leasing
25 Occupation and Use Tax Act and including all of the moneys
26 received pursuant to the 5% rate imposed upon the selling
27 price of any motor vehicle that is purchased from lessors by
28 lessees of such vehicles in connection with a lease that was
29 subject to the Automobile Leasing Occupation and Use Tax Act
30 Of the remainder of the moneys received by the Department
31 pursuant to this Act, (a) 1.75% thereof shall be paid into
32 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
33 and on and after July 1, 1989, 3.8% thereof shall be paid
34 into the Build Illinois Fund; provided, however, that if in
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1 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
2 as the case may be, of the moneys received by the Department
3 and required to be paid into the Build Illinois Fund pursuant
4 to Section 3 of the Retailers' Occupation Tax Act, Section 9
5 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
6 Section 9 of the Service Occupation Tax Act, such Acts being
7 hereinafter called the "Tax Acts" and such aggregate of 2.2%
8 or 3.8%, as the case may be, of moneys being hereinafter
9 called the "Tax Act Amount", and (2) the amount transferred
10 to the Build Illinois Fund from the State and Local Sales Tax
11 Reform Fund shall be less than the Annual Specified Amount
12 (as defined in Section 3 of the Retailers' Occupation Tax
13 Act), an amount equal to the difference shall be immediately
14 paid into the Build Illinois Fund from other moneys received
15 by the Department pursuant to the Tax Acts; and further
16 provided, that if on the last business day of any month the
17 sum of (1) the Tax Act Amount required to be deposited into
18 the Build Illinois Bond Account in the Build Illinois Fund
19 during such month and (2) the amount transferred during such
20 month to the Build Illinois Fund from the State and Local
21 Sales Tax Reform Fund shall have been less than 1/12 of the
22 Annual Specified Amount, an amount equal to the difference
23 shall be immediately paid into the Build Illinois Fund from
24 other moneys received by the Department pursuant to the Tax
25 Acts; and, further provided, that in no event shall the
26 payments required under the preceding proviso result in
27 aggregate payments into the Build Illinois Fund pursuant to
28 this clause (b) for any fiscal year in excess of the greater
29 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
30 for such fiscal year; and, further provided, that the amounts
31 payable into the Build Illinois Fund under this clause (b)
32 shall be payable only until such time as the aggregate amount
33 on deposit under each trust indenture securing Bonds issued
34 and outstanding pursuant to the Build Illinois Bond Act is
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1 sufficient, taking into account any future investment income,
2 to fully provide, in accordance with such indenture, for the
3 defeasance of or the payment of the principal of, premium, if
4 any, and interest on the Bonds secured by such indenture and
5 on any Bonds expected to be issued thereafter and all fees
6 and costs payable with respect thereto, all as certified by
7 the Director of the Bureau of the Budget. If on the last
8 business day of any month in which Bonds are outstanding
9 pursuant to the Build Illinois Bond Act, the aggregate of the
10 moneys deposited in the Build Illinois Bond Account in the
11 Build Illinois Fund in such month shall be less than the
12 amount required to be transferred in such month from the
13 Build Illinois Bond Account to the Build Illinois Bond
14 Retirement and Interest Fund pursuant to Section 13 of the
15 Build Illinois Bond Act, an amount equal to such deficiency
16 shall be immediately paid from other moneys received by the
17 Department pursuant to the Tax Acts to the Build Illinois
18 Fund; provided, however, that any amounts paid to the Build
19 Illinois Fund in any fiscal year pursuant to this sentence
20 shall be deemed to constitute payments pursuant to clause (b)
21 of the preceding sentence and shall reduce the amount
22 otherwise payable for such fiscal year pursuant to clause (b)
23 of the preceding sentence. The moneys received by the
24 Department pursuant to this Act and required to be deposited
25 into the Build Illinois Fund are subject to the pledge, claim
26 and charge set forth in Section 12 of the Build Illinois Bond
27 Act.
28 Subject to payment of amounts into the Build Illinois
29 Fund as provided in the preceding paragraph or in any
30 amendment thereto hereafter enacted, the following specified
31 monthly installment of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority provided under Section 8.25f of the
34 State Finance Act, but not in excess of the sums designated
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1 as "Total Deposit", shall be deposited in the aggregate from
2 collections under Section 9 of the Use Tax Act, Section 9 of
3 the Service Use Tax Act, Section 9 of the Service Occupation
4 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
5 into the McCormick Place Expansion Project Fund in the
6 specified fiscal years.
7 Fiscal Year Total Deposit
8 1993 $0
9 1994 53,000,000
10 1995 58,000,000
11 1996 61,000,000
12 1997 64,000,000
13 1998 68,000,000
14 1999 71,000,000
15 2000 75,000,000
16 2001 80,000,000
17 2002 84,000,000
18 2003 89,000,000
19 2004 and 93,000,000
20 each fiscal year
21 thereafter that bonds
22 are outstanding under
23 Section 13.2 of the
24 Metropolitan Pier and
25 Exposition Authority
26 Act.
27 Beginning July 20, 1993 and in each month of each fiscal
28 year thereafter, one-eighth of the amount requested in the
29 certificate of the Chairman of the Metropolitan Pier and
30 Exposition Authority for that fiscal year, less the amount
31 deposited into the McCormick Place Expansion Project Fund by
32 the State Treasurer in the respective month under subsection
33 (g) of Section 13 of the Metropolitan Pier and Exposition
34 Authority Act, plus cumulative deficiencies in the deposits
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1 required under this Section for previous months and years,
2 shall be deposited into the McCormick Place Expansion Project
3 Fund, until the full amount requested for the fiscal year,
4 but not in excess of the amount specified above as "Total
5 Deposit", has been deposited.
6 Subject to payment of amounts into the Build Illinois
7 Fund and the McCormick Place Expansion Project Fund pursuant
8 to the preceding paragraphs or in any amendment thereto
9 hereafter enacted, each month the Department shall pay into
10 the Local Government Distributive Fund .4% of the net revenue
11 realized for the preceding month from the 5% general rate, or
12 .4% of 80% of the net revenue realized for the preceding
13 month from the 6.25% general rate, as the case may be, on the
14 selling price of tangible personal property which amount
15 shall, subject to appropriation, be distributed as provided
16 in Section 2 of the State Revenue Sharing Act. No payments or
17 distributions pursuant to this paragraph shall be made if the
18 tax imposed by this Act on photoprocessing products is
19 declared unconstitutional, or if the proceeds from such tax
20 are unavailable for distribution because of litigation.
21 Subject to payment of amounts into the Build Illinois
22 Fund, the McCormick Place Expansion Project Fund, and the
23 Local Government Distributive Fund pursuant to the preceding
24 paragraphs or in any amendments thereto hereafter enacted,
25 beginning July 1, 1993, the Department shall each month pay
26 into the Illinois Tax Increment Fund 0.27% of 80% of the net
27 revenue realized for the preceding month from the 6.25%
28 general rate on the selling price of tangible personal
29 property.
30 Of the remainder of the moneys received by the Department
31 pursuant to this Act, 75% thereof shall be paid into the
32 State Treasury and 25% shall be reserved in a special account
33 and used only for the transfer to the Common School Fund as
34 part of the monthly transfer from the General Revenue Fund in
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1 accordance with Section 8a of the State Finance Act.
2 As soon as possible after the first day of each month,
3 upon certification of the Department of Revenue, the
4 Comptroller shall order transferred and the Treasurer shall
5 transfer from the General Revenue Fund to the Motor Fuel Tax
6 Fund an amount equal to 1.7% of 80% of the net revenue
7 realized under this Act for the second preceding month;
8 except that this transfer shall not be made for the months
9 February through June of 1992.
10 Net revenue realized for a month shall be the revenue
11 collected by the State pursuant to this Act, less the amount
12 paid out during that month as refunds to taxpayers for
13 overpayment of liability.
14 For greater simplicity of administration, manufacturers,
15 importers and wholesalers whose products are sold at retail
16 in Illinois by numerous retailers, and who wish to do so, may
17 assume the responsibility for accounting and paying to the
18 Department all tax accruing under this Act with respect to
19 such sales, if the retailers who are affected do not make
20 written objection to the Department to this arrangement.
21 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
22 (Text of Section after amendment by P.A. 90-491)
23 Sec. 9. Except as to motor vehicles, watercraft,
24 aircraft, and trailers that are required to be registered
25 with an agency of this State, each retailer required or
26 authorized to collect the tax imposed by this Act shall pay
27 to the Department the amount of such tax (except as otherwise
28 provided) at the time when he is required to file his return
29 for the period during which such tax was collected, less a
30 discount of 2.1% prior to January 1, 1990, and 1.75% on and
31 after January 1, 1990, or $5 per calendar year, whichever is
32 greater, which is allowed to reimburse the retailer for
33 expenses incurred in collecting the tax, keeping records,
34 preparing and filing returns, remitting the tax and supplying
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1 data to the Department on request. In the case of retailers
2 who report and pay the tax on a transaction by transaction
3 basis, as provided in this Section, such discount shall be
4 taken with each such tax remittance instead of when such
5 retailer files his periodic return. A retailer need not
6 remit that part of any tax collected by him to the extent
7 that he is required to remit and does remit the tax imposed
8 by the Retailers' Occupation Tax Act, with respect to the
9 sale of the same property.
10 Where such tangible personal property is sold under a
11 conditional sales contract, or under any other form of sale
12 wherein the payment of the principal sum, or a part thereof,
13 is extended beyond the close of the period for which the
14 return is filed, the retailer, in collecting the tax (except
15 as to motor vehicles, watercraft, aircraft, and trailers that
16 are required to be registered with an agency of this State),
17 may collect for each tax return period, only the tax
18 applicable to that part of the selling price actually
19 received during such tax return period.
20 Except as provided in this Section, on or before the
21 twentieth day of each calendar month, such retailer shall
22 file a return for the preceding calendar month. Such return
23 shall be filed on forms prescribed by the Department and
24 shall furnish such information as the Department may
25 reasonably require.
26 The Department may require returns to be filed on a
27 quarterly basis. If so required, a return for each calendar
28 quarter shall be filed on or before the twentieth day of the
29 calendar month following the end of such calendar quarter.
30 The taxpayer shall also file a return with the Department for
31 each of the first two months of each calendar quarter, on or
32 before the twentieth day of the following calendar month,
33 stating:
34 1. The name of the seller;
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1 2. The address of the principal place of business
2 from which he engages in the business of selling tangible
3 personal property at retail in this State;
4 3. The total amount of taxable receipts received by
5 him during the preceding calendar month from sales of
6 tangible personal property by him during such preceding
7 calendar month, including receipts from charge and time
8 sales, but less all deductions allowed by law;
9 4. The amount of credit provided in Section 2d of
10 this Act;
11 5. The amount of tax due;
12 5-5. The signature of the taxpayer; and
13 6. Such other reasonable information as the
14 Department may require.
15 If a taxpayer fails to sign a return within 30 days after
16 the proper notice and demand for signature by the Department,
17 the return shall be considered valid and any amount shown to
18 be due on the return shall be deemed assessed.
19 Beginning October 1, 1993, a taxpayer who has an average
20 monthly tax liability of $150,000 or more shall make all
21 payments required by rules of the Department by electronic
22 funds transfer. Beginning October 1, 1994, a taxpayer who has
23 an average monthly tax liability of $100,000 or more shall
24 make all payments required by rules of the Department by
25 electronic funds transfer. Beginning October 1, 1995, a
26 taxpayer who has an average monthly tax liability of $50,000
27 or more shall make all payments required by rules of the
28 Department by electronic funds transfer. The term "average
29 monthly tax liability" means the sum of the taxpayer's
30 liabilities under this Act, and under all other State and
31 local occupation and use tax laws administered by the
32 Department, for the immediately preceding calendar year
33 divided by 12.
34 Before August 1 of each year beginning in 1993, the
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1 Department shall notify all taxpayers required to make
2 payments by electronic funds transfer. All taxpayers required
3 to make payments by electronic funds transfer shall make
4 those payments for a minimum of one year beginning on October
5 1.
6 Any taxpayer not required to make payments by electronic
7 funds transfer may make payments by electronic funds transfer
8 with the permission of the Department.
9 All taxpayers required to make payment by electronic
10 funds transfer and any taxpayers authorized to voluntarily
11 make payments by electronic funds transfer shall make those
12 payments in the manner authorized by the Department.
13 The Department shall adopt such rules as are necessary to
14 effectuate a program of electronic funds transfer and the
15 requirements of this Section.
16 If the taxpayer's average monthly tax liability to the
17 Department under this Act, the Retailers' Occupation Tax Act,
18 the Service Occupation Tax Act, the Service Use Tax Act was
19 $10,000 or more during the preceding 4 complete calendar
20 quarters, he shall file a return with the Department each
21 month by the 20th day of the month next following the month
22 during which such tax liability is incurred and shall make
23 payments to the Department on or before the 7th, 15th, 22nd
24 and last day of the month during which such liability is
25 incurred. If the month during which such tax liability is
26 incurred began prior to January 1, 1985, each payment shall
27 be in an amount equal to 1/4 of the taxpayer's actual
28 liability for the month or an amount set by the Department
29 not to exceed 1/4 of the average monthly liability of the
30 taxpayer to the Department for the preceding 4 complete
31 calendar quarters (excluding the month of highest liability
32 and the month of lowest liability in such 4 quarter period).
33 If the month during which such tax liability is incurred
34 begins on or after January 1, 1985, and prior to January 1,
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1 1987, each payment shall be in an amount equal to 22.5% of
2 the taxpayer's actual liability for the month or 27.5% of the
3 taxpayer's liability for the same calendar month of the
4 preceding year. If the month during which such tax liability
5 is incurred begins on or after January 1, 1987, and prior to
6 January 1, 1988, each payment shall be in an amount equal to
7 22.5% of the taxpayer's actual liability for the month or
8 26.25% of the taxpayer's liability for the same calendar
9 month of the preceding year. If the month during which such
10 tax liability is incurred begins on or after January 1, 1988,
11 and prior to January 1, 1989, or begins on or after January
12 1, 1996, each payment shall be in an amount equal to 22.5% of
13 the taxpayer's actual liability for the month or 25% of the
14 taxpayer's liability for the same calendar month of the
15 preceding year. If the month during which such tax liability
16 is incurred begins on or after January 1, 1989, and prior to
17 January 1, 1996, each payment shall be in an amount equal to
18 22.5% of the taxpayer's actual liability for the month or 25%
19 of the taxpayer's liability for the same calendar month of
20 the preceding year or 100% of the taxpayer's actual liability
21 for the quarter monthly reporting period. The amount of such
22 quarter monthly payments shall be credited against the final
23 tax liability of the taxpayer's return for that month. Once
24 applicable, the requirement of the making of quarter monthly
25 payments to the Department shall continue until such
26 taxpayer's average monthly liability to the Department during
27 the preceding 4 complete calendar quarters (excluding the
28 month of highest liability and the month of lowest liability)
29 is less than $9,000, or until such taxpayer's average monthly
30 liability to the Department as computed for each calendar
31 quarter of the 4 preceding complete calendar quarter period
32 is less than $10,000. However, if a taxpayer can show the
33 Department that a substantial change in the taxpayer's
34 business has occurred which causes the taxpayer to anticipate
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1 that his average monthly tax liability for the reasonably
2 foreseeable future will fall below $10,000, then such
3 taxpayer may petition the Department for change in such
4 taxpayer's reporting status. The Department shall change
5 such taxpayer's reporting status unless it finds that such
6 change is seasonal in nature and not likely to be long term.
7 If any such quarter monthly payment is not paid at the time
8 or in the amount required by this Section, then the taxpayer
9 shall be liable for penalties and interest on the difference
10 between the minimum amount due and the amount of such quarter
11 monthly payment actually and timely paid, except insofar as
12 the taxpayer has previously made payments for that month to
13 the Department in excess of the minimum payments previously
14 due as provided in this Section. The Department shall make
15 reasonable rules and regulations to govern the quarter
16 monthly payment amount and quarter monthly payment dates for
17 taxpayers who file on other than a calendar monthly basis.
18 If any such payment provided for in this Section exceeds
19 the taxpayer's liabilities under this Act, the Retailers'
20 Occupation Tax Act, the Service Occupation Tax Act and the
21 Service Use Tax Act, as shown by an original monthly return,
22 the Department shall issue to the taxpayer a credit
23 memorandum no later than 30 days after the date of payment,
24 which memorandum may be submitted by the taxpayer to the
25 Department in payment of tax liability subsequently to be
26 remitted by the taxpayer to the Department or be assigned by
27 the taxpayer to a similar taxpayer under this Act, the
28 Retailers' Occupation Tax Act, the Service Occupation Tax Act
29 or the Service Use Tax Act, in accordance with reasonable
30 rules and regulations to be prescribed by the Department,
31 except that if such excess payment is shown on an original
32 monthly return and is made after December 31, 1986, no credit
33 memorandum shall be issued, unless requested by the taxpayer.
34 If no such request is made, the taxpayer may credit such
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1 excess payment against tax liability subsequently to be
2 remitted by the taxpayer to the Department under this Act,
3 the Retailers' Occupation Tax Act, the Service Occupation Tax
4 Act or the Service Use Tax Act, in accordance with reasonable
5 rules and regulations prescribed by the Department. If the
6 Department subsequently determines that all or any part of
7 the credit taken was not actually due to the taxpayer, the
8 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
9 by 2.1% or 1.75% of the difference between the credit taken
10 and that actually due, and the taxpayer shall be liable for
11 penalties and interest on such difference.
12 If the retailer is otherwise required to file a monthly
13 return and if the retailer's average monthly tax liability to
14 the Department does not exceed $200, the Department may
15 authorize his returns to be filed on a quarter annual basis,
16 with the return for January, February, and March of a given
17 year being due by April 20 of such year; with the return for
18 April, May and June of a given year being due by July 20 of
19 such year; with the return for July, August and September of
20 a given year being due by October 20 of such year, and with
21 the return for October, November and December of a given year
22 being due by January 20 of the following year.
23 If the retailer is otherwise required to file a monthly
24 or quarterly return and if the retailer's average monthly tax
25 liability to the Department does not exceed $50, the
26 Department may authorize his returns to be filed on an annual
27 basis, with the return for a given year being due by January
28 20 of the following year.
29 Such quarter annual and annual returns, as to form and
30 substance, shall be subject to the same requirements as
31 monthly returns.
32 Notwithstanding any other provision in this Act
33 concerning the time within which a retailer may file his
34 return, in the case of any retailer who ceases to engage in a
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1 kind of business which makes him responsible for filing
2 returns under this Act, such retailer shall file a final
3 return under this Act with the Department not more than one
4 month after discontinuing such business.
5 In addition, with respect to motor vehicles, watercraft,
6 aircraft, and trailers that are required to be registered
7 with an agency of this State, every retailer selling this
8 kind of tangible personal property shall file, with the
9 Department, upon a form to be prescribed and supplied by the
10 Department, a separate return for each such item of tangible
11 personal property which the retailer sells, except that
12 where, in the same transaction, a retailer of aircraft,
13 watercraft, motor vehicles or trailers transfers more than
14 one aircraft, watercraft, motor vehicle or trailer to another
15 aircraft, watercraft, motor vehicle or trailer retailer for
16 the purpose of resale, that seller for resale may report the
17 transfer of all the aircraft, watercraft, motor vehicles or
18 trailers involved in that transaction to the Department on
19 the same uniform invoice-transaction reporting return form.
20 For purposes of this Section, "watercraft" means a Class 2,
21 Class 3, or Class 4 watercraft as defined in Section 3-2 of
22 the Boat Registration and Safety Act, a personal watercraft,
23 or any boat equipped with an inboard motor.
24 The transaction reporting return in the case of motor
25 vehicles or trailers that are required to be registered with
26 an agency of this State, shall be the same document as the
27 Uniform Invoice referred to in Section 5-402 of the Illinois
28 Vehicle Code and must show the name and address of the
29 seller; the name and address of the purchaser; the amount of
30 the selling price including the amount allowed by the
31 retailer for traded-in property, if any; the amount allowed
32 by the retailer for the traded-in tangible personal property,
33 if any, to the extent to which Section 2 of this Act allows
34 an exemption for the value of traded-in property; the balance
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1 payable after deducting such trade-in allowance from the
2 total selling price; the amount of tax due from the retailer
3 with respect to such transaction; the amount of tax collected
4 from the purchaser by the retailer on such transaction (or
5 satisfactory evidence that such tax is not due in that
6 particular instance, if that is claimed to be the fact); the
7 place and date of the sale; a sufficient identification of
8 the property sold; such other information as is required in
9 Section 5-402 of the Illinois Vehicle Code, and such other
10 information as the Department may reasonably require.
11 The transaction reporting return in the case of
12 watercraft and aircraft must show the name and address of the
13 seller; the name and address of the purchaser; the amount of
14 the selling price including the amount allowed by the
15 retailer for traded-in property, if any; the amount allowed
16 by the retailer for the traded-in tangible personal property,
17 if any, to the extent to which Section 2 of this Act allows
18 an exemption for the value of traded-in property; the balance
19 payable after deducting such trade-in allowance from the
20 total selling price; the amount of tax due from the retailer
21 with respect to such transaction; the amount of tax collected
22 from the purchaser by the retailer on such transaction (or
23 satisfactory evidence that such tax is not due in that
24 particular instance, if that is claimed to be the fact); the
25 place and date of the sale, a sufficient identification of
26 the property sold, and such other information as the
27 Department may reasonably require.
28 Such transaction reporting return shall be filed not
29 later than 20 days after the date of delivery of the item
30 that is being sold, but may be filed by the retailer at any
31 time sooner than that if he chooses to do so. The
32 transaction reporting return and tax remittance or proof of
33 exemption from the tax that is imposed by this Act may be
34 transmitted to the Department by way of the State agency with
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1 which, or State officer with whom, the tangible personal
2 property must be titled or registered (if titling or
3 registration is required) if the Department and such agency
4 or State officer determine that this procedure will expedite
5 the processing of applications for title or registration.
6 With each such transaction reporting return, the retailer
7 shall remit the proper amount of tax due (or shall submit
8 satisfactory evidence that the sale is not taxable if that is
9 the case), to the Department or its agents, whereupon the
10 Department shall issue, in the purchaser's name, a tax
11 receipt (or a certificate of exemption if the Department is
12 satisfied that the particular sale is tax exempt) which such
13 purchaser may submit to the agency with which, or State
14 officer with whom, he must title or register the tangible
15 personal property that is involved (if titling or
16 registration is required) in support of such purchaser's
17 application for an Illinois certificate or other evidence of
18 title or registration to such tangible personal property.
19 No retailer's failure or refusal to remit tax under this
20 Act precludes a user, who has paid the proper tax to the
21 retailer, from obtaining his certificate of title or other
22 evidence of title or registration (if titling or registration
23 is required) upon satisfying the Department that such user
24 has paid the proper tax (if tax is due) to the retailer. The
25 Department shall adopt appropriate rules to carry out the
26 mandate of this paragraph.
27 If the user who would otherwise pay tax to the retailer
28 wants the transaction reporting return filed and the payment
29 of tax or proof of exemption made to the Department before
30 the retailer is willing to take these actions and such user
31 has not paid the tax to the retailer, such user may certify
32 to the fact of such delay by the retailer, and may (upon the
33 Department being satisfied of the truth of such
34 certification) transmit the information required by the
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1 transaction reporting return and the remittance for tax or
2 proof of exemption directly to the Department and obtain his
3 tax receipt or exemption determination, in which event the
4 transaction reporting return and tax remittance (if a tax
5 payment was required) shall be credited by the Department to
6 the proper retailer's account with the Department, but
7 without the 2.1% or 1.75% discount provided for in this
8 Section being allowed. When the user pays the tax directly
9 to the Department, he shall pay the tax in the same amount
10 and in the same form in which it would be remitted if the tax
11 had been remitted to the Department by the retailer.
12 Where a retailer collects the tax with respect to the
13 selling price of tangible personal property which he sells
14 and the purchaser thereafter returns such tangible personal
15 property and the retailer refunds the selling price thereof
16 to the purchaser, such retailer shall also refund, to the
17 purchaser, the tax so collected from the purchaser. When
18 filing his return for the period in which he refunds such tax
19 to the purchaser, the retailer may deduct the amount of the
20 tax so refunded by him to the purchaser from any other use
21 tax which such retailer may be required to pay or remit to
22 the Department, as shown by such return, if the amount of the
23 tax to be deducted was previously remitted to the Department
24 by such retailer. If the retailer has not previously
25 remitted the amount of such tax to the Department, he is
26 entitled to no deduction under this Act upon refunding such
27 tax to the purchaser.
28 Any retailer filing a return under this Section shall
29 also include (for the purpose of paying tax thereon) the
30 total tax covered by such return upon the selling price of
31 tangible personal property purchased by him at retail from a
32 retailer, but as to which the tax imposed by this Act was not
33 collected from the retailer filing such return, and such
34 retailer shall remit the amount of such tax to the Department
-46- LRB9007347KDpc
1 when filing such return.
2 If experience indicates such action to be practicable,
3 the Department may prescribe and furnish a combination or
4 joint return which will enable retailers, who are required to
5 file returns hereunder and also under the Retailers'
6 Occupation Tax Act, to furnish all the return information
7 required by both Acts on the one form.
8 Where the retailer has more than one business registered
9 with the Department under separate registration under this
10 Act, such retailer may not file each return that is due as a
11 single return covering all such registered businesses, but
12 shall file separate returns for each such registered
13 business.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the State and Local Sales Tax Reform Fund, a
16 special fund in the State Treasury which is hereby created,
17 the net revenue realized for the preceding month from the 1%
18 tax on sales of food for human consumption which is to be
19 consumed off the premises where it is sold (other than
20 alcoholic beverages, soft drinks and food which has been
21 prepared for immediate consumption) and prescription and
22 nonprescription medicines, drugs, medical appliances and
23 insulin, urine testing materials, syringes and needles used
24 by diabetics.
25 Beginning January 1, 1990, each month the Department
26 shall pay into the County and Mass Transit District Fund 4%
27 of the net revenue realized for the preceding month from the
28 6.25% general rate on the selling price of tangible personal
29 property which is purchased outside Illinois at retail from a
30 retailer and which is titled or registered by an agency of
31 this State's government.
32 Each month the Department shall pay into the County and
33 Mass Transit District Fund 20% the net revenue realized for
34 the preceding month from the 1.25% rate imposed upon the
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1 selling price of any motor vehicle that is purchased outside
2 Illinois at retail by a lessor for purposes of leasing under
3 a lease subject to the Automobile Leasing Occupation and Use
4 Tax Act and which is titled or registered by an agency of
5 this State's government.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the State and Local Sales Tax Reform Fund, a
8 special fund in the State Treasury, 20% of the net revenue
9 realized for the preceding month from the 6.25% general rate
10 on the selling price of tangible personal property, other
11 than tangible personal property which is purchased outside
12 Illinois at retail from a retailer and which is titled or
13 registered by an agency of this State's government.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund 16% of the net
16 revenue realized for the preceding month from the 6.25%
17 general rate on the selling price of tangible personal
18 property which is purchased outside Illinois at retail from a
19 retailer and which is titled or registered by an agency of
20 this State's government.
21 Each month the Department shall pay into the Local
22 Government Tax Fund 80% of the net revenue realized for the
23 preceding month from the 1.25% rate imposed upon the selling
24 price of any motor vehicle that is purchased outside Illinois
25 at retail by a lessor for purposes of leasing under a lease
26 subject to the Automobile Leasing Occupation and Use Tax Act
27 and which is titled or registered by an agency of this
28 State's government.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, and including all moneys received by
31 the Department under Section 20 of the Automobile Leasing
32 Occupation and Use Tax Act and including all of the moneys
33 received pursuant to the 5% rate imposed upon the selling
34 price of any motor vehicle that is purchased from lessors by
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1 lessees of such vehicles in connection with a lease that was
2 subject to the Automobile Leasing Occupation and Use Tax Act
3 Of the remainder of the moneys received by the Department
4 pursuant to this Act, (a) 1.75% thereof shall be paid into
5 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
6 and on and after July 1, 1989, 3.8% thereof shall be paid
7 into the Build Illinois Fund; provided, however, that if in
8 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
9 as the case may be, of the moneys received by the Department
10 and required to be paid into the Build Illinois Fund pursuant
11 to Section 3 of the Retailers' Occupation Tax Act, Section 9
12 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
13 Section 9 of the Service Occupation Tax Act, such Acts being
14 hereinafter called the "Tax Acts" and such aggregate of 2.2%
15 or 3.8%, as the case may be, of moneys being hereinafter
16 called the "Tax Act Amount", and (2) the amount transferred
17 to the Build Illinois Fund from the State and Local Sales Tax
18 Reform Fund shall be less than the Annual Specified Amount
19 (as defined in Section 3 of the Retailers' Occupation Tax
20 Act), an amount equal to the difference shall be immediately
21 paid into the Build Illinois Fund from other moneys received
22 by the Department pursuant to the Tax Acts; and further
23 provided, that if on the last business day of any month the
24 sum of (1) the Tax Act Amount required to be deposited into
25 the Build Illinois Bond Account in the Build Illinois Fund
26 during such month and (2) the amount transferred during such
27 month to the Build Illinois Fund from the State and Local
28 Sales Tax Reform Fund shall have been less than 1/12 of the
29 Annual Specified Amount, an amount equal to the difference
30 shall be immediately paid into the Build Illinois Fund from
31 other moneys received by the Department pursuant to the Tax
32 Acts; and, further provided, that in no event shall the
33 payments required under the preceding proviso result in
34 aggregate payments into the Build Illinois Fund pursuant to
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1 this clause (b) for any fiscal year in excess of the greater
2 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
3 for such fiscal year; and, further provided, that the amounts
4 payable into the Build Illinois Fund under this clause (b)
5 shall be payable only until such time as the aggregate amount
6 on deposit under each trust indenture securing Bonds issued
7 and outstanding pursuant to the Build Illinois Bond Act is
8 sufficient, taking into account any future investment income,
9 to fully provide, in accordance with such indenture, for the
10 defeasance of or the payment of the principal of, premium, if
11 any, and interest on the Bonds secured by such indenture and
12 on any Bonds expected to be issued thereafter and all fees
13 and costs payable with respect thereto, all as certified by
14 the Director of the Bureau of the Budget. If on the last
15 business day of any month in which Bonds are outstanding
16 pursuant to the Build Illinois Bond Act, the aggregate of the
17 moneys deposited in the Build Illinois Bond Account in the
18 Build Illinois Fund in such month shall be less than the
19 amount required to be transferred in such month from the
20 Build Illinois Bond Account to the Build Illinois Bond
21 Retirement and Interest Fund pursuant to Section 13 of the
22 Build Illinois Bond Act, an amount equal to such deficiency
23 shall be immediately paid from other moneys received by the
24 Department pursuant to the Tax Acts to the Build Illinois
25 Fund; provided, however, that any amounts paid to the Build
26 Illinois Fund in any fiscal year pursuant to this sentence
27 shall be deemed to constitute payments pursuant to clause (b)
28 of the preceding sentence and shall reduce the amount
29 otherwise payable for such fiscal year pursuant to clause (b)
30 of the preceding sentence. The moneys received by the
31 Department pursuant to this Act and required to be deposited
32 into the Build Illinois Fund are subject to the pledge, claim
33 and charge set forth in Section 12 of the Build Illinois Bond
34 Act.
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1 Subject to payment of amounts into the Build Illinois
2 Fund as provided in the preceding paragraph or in any
3 amendment thereto hereafter enacted, the following specified
4 monthly installment of the amount requested in the
5 certificate of the Chairman of the Metropolitan Pier and
6 Exposition Authority provided under Section 8.25f of the
7 State Finance Act, but not in excess of the sums designated
8 as "Total Deposit", shall be deposited in the aggregate from
9 collections under Section 9 of the Use Tax Act, Section 9 of
10 the Service Use Tax Act, Section 9 of the Service Occupation
11 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
12 into the McCormick Place Expansion Project Fund in the
13 specified fiscal years.
14 Fiscal Year Total Deposit
15 1993 $0
16 1994 53,000,000
17 1995 58,000,000
18 1996 61,000,000
19 1997 64,000,000
20 1998 68,000,000
21 1999 71,000,000
22 2000 75,000,000
23 2001 80,000,000
24 2002 84,000,000
25 2003 89,000,000
26 2004 and 93,000,000
27 each fiscal year
28 thereafter that bonds
29 are outstanding under
30 Section 13.2 of the
31 Metropolitan Pier and
32 Exposition Authority
33 Act.
34 Beginning July 20, 1993 and in each month of each fiscal
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1 year thereafter, one-eighth of the amount requested in the
2 certificate of the Chairman of the Metropolitan Pier and
3 Exposition Authority for that fiscal year, less the amount
4 deposited into the McCormick Place Expansion Project Fund by
5 the State Treasurer in the respective month under subsection
6 (g) of Section 13 of the Metropolitan Pier and Exposition
7 Authority Act, plus cumulative deficiencies in the deposits
8 required under this Section for previous months and years,
9 shall be deposited into the McCormick Place Expansion Project
10 Fund, until the full amount requested for the fiscal year,
11 but not in excess of the amount specified above as "Total
12 Deposit", has been deposited.
13 Subject to payment of amounts into the Build Illinois
14 Fund and the McCormick Place Expansion Project Fund pursuant
15 to the preceding paragraphs or in any amendment thereto
16 hereafter enacted, each month the Department shall pay into
17 the Local Government Distributive Fund .4% of the net revenue
18 realized for the preceding month from the 5% general rate, or
19 .4% of 80% of the net revenue realized for the preceding
20 month from the 6.25% general rate, as the case may be, on the
21 selling price of tangible personal property which amount
22 shall, subject to appropriation, be distributed as provided
23 in Section 2 of the State Revenue Sharing Act. No payments or
24 distributions pursuant to this paragraph shall be made if the
25 tax imposed by this Act on photoprocessing products is
26 declared unconstitutional, or if the proceeds from such tax
27 are unavailable for distribution because of litigation.
28 Subject to payment of amounts into the Build Illinois
29 Fund, the McCormick Place Expansion Project Fund, and the
30 Local Government Distributive Fund pursuant to the preceding
31 paragraphs or in any amendments thereto hereafter enacted,
32 beginning July 1, 1993, the Department shall each month pay
33 into the Illinois Tax Increment Fund 0.27% of 80% of the net
34 revenue realized for the preceding month from the 6.25%
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1 general rate on the selling price of tangible personal
2 property.
3 Of the remainder of the moneys received by the Department
4 pursuant to this Act, 75% thereof shall be paid into the
5 State Treasury and 25% shall be reserved in a special account
6 and used only for the transfer to the Common School Fund as
7 part of the monthly transfer from the General Revenue Fund in
8 accordance with Section 8a of the State Finance Act.
9 As soon as possible after the first day of each month,
10 upon certification of the Department of Revenue, the
11 Comptroller shall order transferred and the Treasurer shall
12 transfer from the General Revenue Fund to the Motor Fuel Tax
13 Fund an amount equal to 1.7% of 80% of the net revenue
14 realized under this Act for the second preceding month;
15 except that this transfer shall not be made for the months
16 February through June of 1992.
17 Net revenue realized for a month shall be the revenue
18 collected by the State pursuant to this Act, less the amount
19 paid out during that month as refunds to taxpayers for
20 overpayment of liability.
21 For greater simplicity of administration, manufacturers,
22 importers and wholesalers whose products are sold at retail
23 in Illinois by numerous retailers, and who wish to do so, may
24 assume the responsibility for accounting and paying to the
25 Department all tax accruing under this Act with respect to
26 such sales, if the retailers who are affected do not make
27 written objection to the Department to this arrangement.
28 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
29 90-491, eff. 1-1-99.)
30 Section 90. The Retailers' Occupation Tax Act is amended
31 by changing Sections 1c, 2-10, and 3 as follows:
32 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
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1 Sec. 1c. A person who is engaged in the business of
2 leasing or renting motor vehicles to others and who, in
3 connection with such business sells any used motor vehicle to
4 a purchaser for his use and not for the purpose of resale, is
5 a retailer engaged in the business of selling tangible
6 personal property at retail under this Act to the extent of
7 the value of the vehicle sold. For the purpose of this
8 Section, "motor vehicle" means any motor vehicle of the first
9 division, a motor vehicle of the second division which is a
10 self-contained motor vehicle designed or permanently
11 converted to provide living quarters for recreational,
12 camping or travel use, with direct walk through access to the
13 living quarters from the driver's seat, or a motor vehicle of
14 a second division which is of the van configuration designed
15 for the transportation of not less than 7 nor more than 16
16 passengers, as defined in Section 1-146 of the Illinois
17 Vehicle Code. For the purpose of this Section "motor vehicle"
18 has the meaning prescribed in Section 1-157 of The Illinois
19 Vehicle Code, as now or hereafter amended. (Nothing provided
20 herein shall affect liability incurred under this Act because
21 of the sale at retail of such motor vehicles to a lessor.)
22 (Source: P.A. 80-598.)
23 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
24 Sec. 2-10. Rate of tax. Unless otherwise provided in
25 this Section, the tax imposed by this Act is at the rate of
26 6.25% of gross receipts from sales of tangible personal
27 property made in the course of business.
28 With respect to gasohol, as defined in the Use Tax Act,
29 the tax imposed by this Act applies to 70% of the proceeds of
30 sales made on or after January 1, 1990, and before July 1,
31 1999, and to 100% of the proceeds of sales made thereafter,
32 except that from July 1, 1997 to July 1, 1999, the rate shall
33 be 85% for gasohol sold in this State during the 12 months
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1 beginning July 1 following any calendar year for which the
2 Department has determined that the percentages in Section 10
3 of the Gasohol Fuels Tax Abatement Act have not been met.
4 With respect to food for human consumption that is to be
5 consumed off the premises where it is sold (other than
6 alcoholic beverages, soft drinks, and food that has been
7 prepared for immediate consumption) and prescription and
8 nonprescription medicines, drugs, medical appliances,
9 modifications to a motor vehicle for the purpose of rendering
10 it usable by a disabled person, and insulin, urine testing
11 materials, syringes, and needles used by diabetics, for human
12 use, the tax is imposed at the rate of 1%. For the purposes
13 of this Section, the term "soft drinks" means any complete,
14 finished, ready-to-use, non-alcoholic drink, whether
15 carbonated or not, including but not limited to soda water,
16 cola, fruit juice, vegetable juice, carbonated water, and all
17 other preparations commonly known as soft drinks of whatever
18 kind or description that are contained in any closed or
19 sealed bottle, can, carton, or container, regardless of size.
20 "Soft drinks" does not include coffee, tea, non-carbonated
21 water, infant formula, milk or milk products as defined in
22 the Grade A Pasteurized Milk and Milk Products Act, or drinks
23 containing 50% or more natural fruit or vegetable juice.
24 Notwithstanding any other provisions of this Act, "food
25 for human consumption that is to be consumed off the premises
26 where it is sold" includes all food sold through a vending
27 machine, except soft drinks and food products that are
28 dispensed hot from a vending machine, regardless of the
29 location of the vending machine.
30 With respect to any motor vehicle (as the term "motor
31 vehicle" is defined in Section 1c of this Act) that is sold
32 to a lessor for purposes of leasing under a lease subject to
33 the Automobile Leasing Occupation and Use Tax Act, the tax is
34 imposed at the rate of 1.25%.
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1 With respect to any motor vehicle (as the term "motor
2 vehicle" is defined in Section 1c of this Act) that has been
3 leased by a lessor to a lessee under a lease that is subject
4 to the Automobile Leasing Occupation and Use Tax Act, and is
5 subsequently sold to the lessee of such vehicle, the tax is
6 imposed at the rate of 5%.
7 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
8 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
9 (35 ILCS 120/3) (from Ch. 120, par. 442)
10 (Text of Section before amendment by P.A. 90-491)
11 Sec. 3. Except as provided in this Section, on or before
12 the twentieth day of each calendar month, every person
13 engaged in the business of selling tangible personal property
14 at retail in this State during the preceding calendar month
15 shall file a return with the Department, stating:
16 1. The name of the seller;
17 2. His residence address and the address of his
18 principal place of business and the address of the
19 principal place of business (if that is a different
20 address) from which he engages in the business of selling
21 tangible personal property at retail in this State;
22 3. Total amount of receipts received by him during
23 the preceding calendar month or quarter, as the case may
24 be, from sales of tangible personal property, and from
25 services furnished, by him during such preceding calendar
26 month or quarter;
27 4. Total amount received by him during the
28 preceding calendar month or quarter on charge and time
29 sales of tangible personal property, and from services
30 furnished, by him prior to the month or quarter for which
31 the return is filed;
32 5. Deductions allowed by law;
33 6. Gross receipts which were received by him during
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1 the preceding calendar month or quarter and upon the
2 basis of which the tax is imposed;
3 7. The amount of credit provided in Section 2d of
4 this Act;
5 8. The amount of tax due;
6 9. The signature of the taxpayer; and
7 10. Such other reasonable information as the
8 Department may require.
9 If a taxpayer fails to sign a return within 30 days after
10 the proper notice and demand for signature by the Department,
11 the return shall be considered valid and any amount shown to
12 be due on the return shall be deemed assessed.
13 Each return shall be accompanied by the statement of
14 prepaid tax issued pursuant to Section 2e for which credit is
15 claimed.
16 A retailer may accept a Manufacturer's Purchase Credit
17 certification from a purchaser in satisfaction of Use Tax as
18 provided in Section 3-85 of the Use Tax Act if the purchaser
19 provides the appropriate documentation as required by Section
20 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
21 certification, accepted by a retailer as provided in Section
22 3-85 of the Use Tax Act, may be used by that retailer to
23 satisfy Retailers' Occupation Tax liability in the amount
24 claimed in the certification, not to exceed 6.25% of the
25 receipts subject to tax from a qualifying purchase.
26 The Department may require returns to be filed on a
27 quarterly basis. If so required, a return for each calendar
28 quarter shall be filed on or before the twentieth day of the
29 calendar month following the end of such calendar quarter.
30 The taxpayer shall also file a return with the Department for
31 each of the first two months of each calendar quarter, on or
32 before the twentieth day of the following calendar month,
33 stating:
34 1. The name of the seller;
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1 2. The address of the principal place of business
2 from which he engages in the business of selling tangible
3 personal property at retail in this State;
4 3. The total amount of taxable receipts received by
5 him during the preceding calendar month from sales of
6 tangible personal property by him during such preceding
7 calendar month, including receipts from charge and time
8 sales, but less all deductions allowed by law;
9 4. The amount of credit provided in Section 2d of
10 this Act;
11 5. The amount of tax due; and
12 6. Such other reasonable information as the
13 Department may require.
14 If a total amount of less than $1 is payable, refundable
15 or creditable, such amount shall be disregarded if it is less
16 than 50 cents and shall be increased to $1 if it is 50 cents
17 or more.
18 Beginning October 1, 1993, a taxpayer who has an average
19 monthly tax liability of $150,000 or more shall make all
20 payments required by rules of the Department by electronic
21 funds transfer. Beginning October 1, 1994, a taxpayer who
22 has an average monthly tax liability of $100,000 or more
23 shall make all payments required by rules of the Department
24 by electronic funds transfer. Beginning October 1, 1995, a
25 taxpayer who has an average monthly tax liability of $50,000
26 or more shall make all payments required by rules of the
27 Department by electronic funds transfer. The term "average
28 monthly tax liability" shall be the sum of the taxpayer's
29 liabilities under this Act, and under all other State and
30 local occupation and use tax laws administered by the
31 Department, for the immediately preceding calendar year
32 divided by 12.
33 Before August 1 of each year beginning in 1993, the
34 Department shall notify all taxpayers required to make
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1 payments by electronic funds transfer. All taxpayers
2 required to make payments by electronic funds transfer shall
3 make those payments for a minimum of one year beginning on
4 October 1.
5 Any taxpayer not required to make payments by electronic
6 funds transfer may make payments by electronic funds transfer
7 with the permission of the Department.
8 All taxpayers required to make payment by electronic
9 funds transfer and any taxpayers authorized to voluntarily
10 make payments by electronic funds transfer shall make those
11 payments in the manner authorized by the Department.
12 The Department shall adopt such rules as are necessary to
13 effectuate a program of electronic funds transfer and the
14 requirements of this Section.
15 Any amount which is required to be shown or reported on
16 any return or other document under this Act shall, if such
17 amount is not a whole-dollar amount, be increased to the
18 nearest whole-dollar amount in any case where the fractional
19 part of a dollar is 50 cents or more, and decreased to the
20 nearest whole-dollar amount where the fractional part of a
21 dollar is less than 50 cents.
22 If the retailer is otherwise required to file a monthly
23 return and if the retailer's average monthly tax liability to
24 the Department does not exceed $200, the Department may
25 authorize his returns to be filed on a quarter annual basis,
26 with the return for January, February and March of a given
27 year being due by April 20 of such year; with the return for
28 April, May and June of a given year being due by July 20 of
29 such year; with the return for July, August and September of
30 a given year being due by October 20 of such year, and with
31 the return for October, November and December of a given year
32 being due by January 20 of the following year.
33 If the retailer is otherwise required to file a monthly
34 or quarterly return and if the retailer's average monthly tax
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1 liability with the Department does not exceed $50, the
2 Department may authorize his returns to be filed on an annual
3 basis, with the return for a given year being due by January
4 20 of the following year.
5 Such quarter annual and annual returns, as to form and
6 substance, shall be subject to the same requirements as
7 monthly returns.
8 Notwithstanding any other provision in this Act
9 concerning the time within which a retailer may file his
10 return, in the case of any retailer who ceases to engage in a
11 kind of business which makes him responsible for filing
12 returns under this Act, such retailer shall file a final
13 return under this Act with the Department not more than one
14 month after discontinuing such business.
15 Where the same person has more than one business
16 registered with the Department under separate registrations
17 under this Act, such person may not file each return that is
18 due as a single return covering all such registered
19 businesses, but shall file separate returns for each such
20 registered business.
21 In addition, with respect to motor vehicles, watercraft,
22 aircraft, and trailers that are required to be registered
23 with an agency of this State, every retailer selling this
24 kind of tangible personal property shall file, with the
25 Department, upon a form to be prescribed and supplied by the
26 Department, a separate return for each such item of tangible
27 personal property which the retailer sells, except that
28 where, in the same transaction, a retailer of aircraft,
29 watercraft, motor vehicles or trailers transfers more than
30 one aircraft, watercraft, motor vehicle or trailer to another
31 aircraft, watercraft, motor vehicle retailer or trailer
32 retailer for the purpose of resale, that seller for resale
33 may report the transfer of all aircraft, watercraft, motor
34 vehicles or trailers involved in that transaction to the
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1 Department on the same uniform invoice-transaction reporting
2 return form. For purposes of this Section, "watercraft"
3 means a Class 2, Class 3, or Class 4 watercraft as defined in
4 Section 3-2 of the Boat Registration and Safety Act, a
5 personal watercraft, or any boat equipped with an inboard
6 motor.
7 Any retailer who sells only motor vehicles, watercraft,
8 aircraft, or trailers that are required to be registered with
9 an agency of this State, so that all retailers' occupation
10 tax liability is required to be reported, and is reported, on
11 such transaction reporting returns and who is not otherwise
12 required to file monthly or quarterly returns, need not file
13 monthly or quarterly returns. However, those retailers shall
14 be required to file returns on an annual basis.
15 The transaction reporting return, in the case of motor
16 vehicles or trailers that are required to be registered with
17 an agency of this State, shall be the same document as the
18 Uniform Invoice referred to in Section 5-402 of The Illinois
19 Vehicle Code and must show the name and address of the
20 seller; the name and address of the purchaser; the amount of
21 the selling price including the amount allowed by the
22 retailer for traded-in property, if any; the amount allowed
23 by the retailer for the traded-in tangible personal property,
24 if any, to the extent to which Section 1 of this Act allows
25 an exemption for the value of traded-in property; the balance
26 payable after deducting such trade-in allowance from the
27 total selling price; the amount of tax due from the retailer
28 with respect to such transaction; the amount of tax collected
29 from the purchaser by the retailer on such transaction (or
30 satisfactory evidence that such tax is not due in that
31 particular instance, if that is claimed to be the fact); the
32 place and date of the sale; a sufficient identification of
33 the property sold; such other information as is required in
34 Section 5-402 of The Illinois Vehicle Code, and such other
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1 information as the Department may reasonably require.
2 The transaction reporting return in the case of
3 watercraft or aircraft must show the name and address of the
4 seller; the name and address of the purchaser; the amount of
5 the selling price including the amount allowed by the
6 retailer for traded-in property, if any; the amount allowed
7 by the retailer for the traded-in tangible personal property,
8 if any, to the extent to which Section 1 of this Act allows
9 an exemption for the value of traded-in property; the balance
10 payable after deducting such trade-in allowance from the
11 total selling price; the amount of tax due from the retailer
12 with respect to such transaction; the amount of tax collected
13 from the purchaser by the retailer on such transaction (or
14 satisfactory evidence that such tax is not due in that
15 particular instance, if that is claimed to be the fact); the
16 place and date of the sale, a sufficient identification of
17 the property sold, and such other information as the
18 Department may reasonably require.
19 Such transaction reporting return shall be filed not
20 later than 20 days after the day of delivery of the item that
21 is being sold, but may be filed by the retailer at any time
22 sooner than that if he chooses to do so. The transaction
23 reporting return and tax remittance or proof of exemption
24 from the Illinois use tax may be transmitted to the
25 Department by way of the State agency with which, or State
26 officer with whom the tangible personal property must be
27 titled or registered (if titling or registration is required)
28 if the Department and such agency or State officer determine
29 that this procedure will expedite the processing of
30 applications for title or registration.
31 With each such transaction reporting return, the retailer
32 shall remit the proper amount of tax due (or shall submit
33 satisfactory evidence that the sale is not taxable if that is
34 the case), to the Department or its agents, whereupon the
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1 Department shall issue, in the purchaser's name, a use tax
2 receipt (or a certificate of exemption if the Department is
3 satisfied that the particular sale is tax exempt) which such
4 purchaser may submit to the agency with which, or State
5 officer with whom, he must title or register the tangible
6 personal property that is involved (if titling or
7 registration is required) in support of such purchaser's
8 application for an Illinois certificate or other evidence of
9 title or registration to such tangible personal property.
10 No retailer's failure or refusal to remit tax under this
11 Act precludes a user, who has paid the proper tax to the
12 retailer, from obtaining his certificate of title or other
13 evidence of title or registration (if titling or registration
14 is required) upon satisfying the Department that such user
15 has paid the proper tax (if tax is due) to the retailer. The
16 Department shall adopt appropriate rules to carry out the
17 mandate of this paragraph.
18 If the user who would otherwise pay tax to the retailer
19 wants the transaction reporting return filed and the payment
20 of the tax or proof of exemption made to the Department
21 before the retailer is willing to take these actions and such
22 user has not paid the tax to the retailer, such user may
23 certify to the fact of such delay by the retailer and may
24 (upon the Department being satisfied of the truth of such
25 certification) transmit the information required by the
26 transaction reporting return and the remittance for tax or
27 proof of exemption directly to the Department and obtain his
28 tax receipt or exemption determination, in which event the
29 transaction reporting return and tax remittance (if a tax
30 payment was required) shall be credited by the Department to
31 the proper retailer's account with the Department, but
32 without the 2.1% or 1.75% discount provided for in this
33 Section being allowed. When the user pays the tax directly
34 to the Department, he shall pay the tax in the same amount
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1 and in the same form in which it would be remitted if the tax
2 had been remitted to the Department by the retailer.
3 Refunds made by the seller during the preceding return
4 period to purchasers, on account of tangible personal
5 property returned to the seller, shall be allowed as a
6 deduction under subdivision 5 of his monthly or quarterly
7 return, as the case may be, in case the seller had
8 theretofore included the receipts from the sale of such
9 tangible personal property in a return filed by him and had
10 paid the tax imposed by this Act with respect to such
11 receipts.
12 Where the seller is a corporation, the return filed on
13 behalf of such corporation shall be signed by the president,
14 vice-president, secretary or treasurer or by the properly
15 accredited agent of such corporation.
16 Where the seller is a limited liability company, the
17 return filed on behalf of the limited liability company shall
18 be signed by a manager, member, or properly accredited agent
19 of the limited liability company.
20 Except as provided in this Section, the retailer filing
21 the return under this Section shall, at the time of filing
22 such return, pay to the Department the amount of tax imposed
23 by this Act less a discount of 2.1% prior to January 1, 1990
24 and 1.75% on and after January 1, 1990, or $5 per calendar
25 year, whichever is greater, which is allowed to reimburse the
26 retailer for the expenses incurred in keeping records,
27 preparing and filing returns, remitting the tax and supplying
28 data to the Department on request. Any prepayment made
29 pursuant to Section 2d of this Act shall be included in the
30 amount on which such 2.1% or 1.75% discount is computed. In
31 the case of retailers who report and pay the tax on a
32 transaction by transaction basis, as provided in this
33 Section, such discount shall be taken with each such tax
34 remittance instead of when such retailer files his periodic
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1 return.
2 If the taxpayer's average monthly tax liability to the
3 Department under this Act, the Use Tax Act, the Service
4 Occupation Tax Act, and the Service Use Tax Act, excluding
5 any liability for prepaid sales tax to be remitted in
6 accordance with Section 2d of this Act, was $10,000 or more
7 during the preceding 4 complete calendar quarters, he shall
8 file a return with the Department each month by the 20th day
9 of the month next following the month during which such tax
10 liability is incurred and shall make payments to the
11 Department on or before the 7th, 15th, 22nd and last day of
12 the month during which such liability is incurred. If the
13 month during which such tax liability is incurred began prior
14 to January 1, 1985, each payment shall be in an amount equal
15 to 1/4 of the taxpayer's actual liability for the month or an
16 amount set by the Department not to exceed 1/4 of the average
17 monthly liability of the taxpayer to the Department for the
18 preceding 4 complete calendar quarters (excluding the month
19 of highest liability and the month of lowest liability in
20 such 4 quarter period). If the month during which such tax
21 liability is incurred begins on or after January 1, 1985 and
22 prior to January 1, 1987, each payment shall be in an amount
23 equal to 22.5% of the taxpayer's actual liability for the
24 month or 27.5% of the taxpayer's liability for the same
25 calendar month of the preceding year. If the month during
26 which such tax liability is incurred begins on or after
27 January 1, 1987 and prior to January 1, 1988, each payment
28 shall be in an amount equal to 22.5% of the taxpayer's actual
29 liability for the month or 26.25% of the taxpayer's liability
30 for the same calendar month of the preceding year. If the
31 month during which such tax liability is incurred begins on
32 or after January 1, 1988, and prior to January 1, 1989, or
33 begins on or after January 1, 1996, each payment shall be in
34 an amount equal to 22.5% of the taxpayer's actual liability
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1 for the month or 25% of the taxpayer's liability for the same
2 calendar month of the preceding year. If the month during
3 which such tax liability is incurred begins on or after
4 January 1, 1989, and prior to January 1, 1996, each payment
5 shall be in an amount equal to 22.5% of the taxpayer's actual
6 liability for the month or 25% of the taxpayer's liability
7 for the same calendar month of the preceding year or 100% of
8 the taxpayer's actual liability for the quarter monthly
9 reporting period. The amount of such quarter monthly
10 payments shall be credited against the final tax liability of
11 the taxpayer's return for that month. Once applicable, the
12 requirement of the making of quarter monthly payments to the
13 Department by taxpayers having an average monthly tax
14 liability of $10,000 or more as determined in the manner
15 provided above shall continue until such taxpayer's average
16 monthly liability to the Department during the preceding 4
17 complete calendar quarters (excluding the month of highest
18 liability and the month of lowest liability) is less than
19 $9,000, or until such taxpayer's average monthly liability to
20 the Department as computed for each calendar quarter of the 4
21 preceding complete calendar quarter period is less than
22 $10,000. However, if a taxpayer can show the Department that
23 a substantial change in the taxpayer's business has occurred
24 which causes the taxpayer to anticipate that his average
25 monthly tax liability for the reasonably foreseeable future
26 will fall below $10,000, then such taxpayer may petition the
27 Department for a change in such taxpayer's reporting status.
28 The Department shall change such taxpayer's reporting status
29 unless it finds that such change is seasonal in nature and
30 not likely to be long term. If any such quarter monthly
31 payment is not paid at the time or in the amount required by
32 this Section, then the taxpayer's 2.1% or 1.75% vendors'
33 discount shall be reduced by 2.1% or 1.75% of the difference
34 between the minimum amount due as a payment and the amount of
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1 such quarter monthly payment actually and timely paid, and
2 the taxpayer shall be liable for penalties and interest on
3 such difference, except insofar as the taxpayer has
4 previously made payments for that month to the Department in
5 excess of the minimum payments previously due as provided in
6 this Section. The Department shall make reasonable rules and
7 regulations to govern the quarter monthly payment amount and
8 quarter monthly payment dates for taxpayers who file on other
9 than a calendar monthly basis.
10 Without regard to whether a taxpayer is required to make
11 quarter monthly payments as specified above, any taxpayer who
12 is required by Section 2d of this Act to collect and remit
13 prepaid taxes and has collected prepaid taxes which average
14 in excess of $25,000 per month during the preceding 2
15 complete calendar quarters, shall file a return with the
16 Department as required by Section 2f and shall make payments
17 to the Department on or before the 7th, 15th, 22nd and last
18 day of the month during which such liability is incurred. If
19 the month during which such tax liability is incurred began
20 prior to the effective date of this amendatory Act of 1985,
21 each payment shall be in an amount not less than 22.5% of the
22 taxpayer's actual liability under Section 2d. If the month
23 during which such tax liability is incurred begins on or
24 after January 1, 1986, each payment shall be in an amount
25 equal to 22.5% of the taxpayer's actual liability for the
26 month or 27.5% of the taxpayer's liability for the same
27 calendar month of the preceding calendar year. If the month
28 during which such tax liability is incurred begins on or
29 after January 1, 1987, each payment shall be in an amount
30 equal to 22.5% of the taxpayer's actual liability for the
31 month or 26.25% of the taxpayer's liability for the same
32 calendar month of the preceding year. The amount of such
33 quarter monthly payments shall be credited against the final
34 tax liability of the taxpayer's return for that month filed
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1 under this Section or Section 2f, as the case may be. Once
2 applicable, the requirement of the making of quarter monthly
3 payments to the Department pursuant to this paragraph shall
4 continue until such taxpayer's average monthly prepaid tax
5 collections during the preceding 2 complete calendar quarters
6 is $25,000 or less. If any such quarter monthly payment is
7 not paid at the time or in the amount required, the taxpayer
8 shall be liable for penalties and interest on such
9 difference, except insofar as the taxpayer has previously
10 made payments for that month in excess of the minimum
11 payments previously due.
12 If any payment provided for in this Section exceeds the
13 taxpayer's liabilities under this Act, the Use Tax Act, the
14 Service Occupation Tax Act and the Service Use Tax Act, as
15 shown on an original monthly return, the Department shall, if
16 requested by the taxpayer, issue to the taxpayer a credit
17 memorandum no later than 30 days after the date of payment.
18 The credit evidenced by such credit memorandum may be
19 assigned by the taxpayer to a similar taxpayer under this
20 Act, the Use Tax Act, the Service Occupation Tax Act or the
21 Service Use Tax Act, in accordance with reasonable rules and
22 regulations to be prescribed by the Department. If no such
23 request is made, the taxpayer may credit such excess payment
24 against tax liability subsequently to be remitted to the
25 Department under this Act, the Use Tax Act, the Service
26 Occupation Tax Act or the Service Use Tax Act, in accordance
27 with reasonable rules and regulations prescribed by the
28 Department. If the Department subsequently determined that
29 all or any part of the credit taken was not actually due to
30 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
31 shall be reduced by 2.1% or 1.75% of the difference between
32 the credit taken and that actually due, and that taxpayer
33 shall be liable for penalties and interest on such
34 difference.
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1 If a retailer of motor fuel is entitled to a credit under
2 Section 2d of this Act which exceeds the taxpayer's liability
3 to the Department under this Act for the month which the
4 taxpayer is filing a return, the Department shall issue the
5 taxpayer a credit memorandum for the excess.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the Local Government Tax Fund, a special fund
8 in the State treasury which is hereby created, the net
9 revenue realized for the preceding month from the 1% tax on
10 sales of food for human consumption which is to be consumed
11 off the premises where it is sold (other than alcoholic
12 beverages, soft drinks and food which has been prepared for
13 immediate consumption) and prescription and nonprescription
14 medicines, drugs, medical appliances and insulin, urine
15 testing materials, syringes and needles used by diabetics.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the County and Mass Transit District Fund, a
18 special fund in the State treasury which is hereby created,
19 4% of the net revenue realized for the preceding month from
20 the 6.25% general rate.
21 Each month the Department shall pay into the County and
22 Mass Transit District Fund 20% of the net revenue realized
23 for the preceding month from the 1.25% rate imposed upon the
24 sale of any motor vehicle that is sold at retail to a lessor
25 for purposes of leasing under a lease subject to the
26 Automobile Leasing Occupation and Use Tax Act.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the Local Government Tax Fund 16% of the net
29 revenue realized for the preceding month from the 6.25%
30 general rate on the selling price of tangible personal
31 property.
32 Each month the Department shall pay into the Local
33 Government Tax Fund 80% of the net revenue realized for the
34 preceding month from the 1.25% rate imposed upon the sale of
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1 any motor vehicle that is sold at retail to a lessor for
2 purposes of leasing under a lease subject to the Automobile
3 Leasing Occupation and Use Tax Act.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, and including all moneys received by
6 the Department pursuant to Section 10 of the Automobile
7 Leasing Occupation and Use Tax Act, and including all of the
8 moneys received pursuant to the 5% rate imposed upon sales of
9 motor vehicles by lessors to the lessees of such vehicles in
10 connection with a lease that was subject to the Automobile
11 Leasing Occupation and Use Tax Act Of the remainder of the
12 moneys received by the Department pursuant to this Act, (a)
13 1.75% thereof shall be paid into the Build Illinois Fund and
14 (b) prior to July 1, 1989, 2.2% and on and after July 1,
15 1989, 3.8% thereof shall be paid into the Build Illinois
16 Fund; provided, however, that if in any fiscal year the sum
17 of (1) the aggregate of 2.2% or 3.8%, as the case may be, of
18 the moneys received by the Department and required to be paid
19 into the Build Illinois Fund pursuant to this Act, Section 9
20 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
21 Section 9 of the Service Occupation Tax Act, such Acts being
22 hereinafter called the "Tax Acts" and such aggregate of 2.2%
23 or 3.8%, as the case may be, of moneys being hereinafter
24 called the "Tax Act Amount", and (2) the amount transferred
25 to the Build Illinois Fund from the State and Local Sales Tax
26 Reform Fund shall be less than the Annual Specified Amount
27 (as hereinafter defined), an amount equal to the difference
28 shall be immediately paid into the Build Illinois Fund from
29 other moneys received by the Department pursuant to the Tax
30 Acts; the "Annual Specified Amount" means the amounts
31 specified below for fiscal years 1986 through 1993:
32 Fiscal Year Annual Specified Amount
33 1986 $54,800,000
34 1987 $76,650,000
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1 1988 $80,480,000
2 1989 $88,510,000
3 1990 $115,330,000
4 1991 $145,470,000
5 1992 $182,730,000
6 1993 $206,520,000;
7 and means the Certified Annual Debt Service Requirement (as
8 defined in Section 13 of the Build Illinois Bond Act) or the
9 Tax Act Amount, whichever is greater, for fiscal year 1994
10 and each fiscal year thereafter; and further provided, that
11 if on the last business day of any month the sum of (1) the
12 Tax Act Amount required to be deposited into the Build
13 Illinois Bond Account in the Build Illinois Fund during such
14 month and (2) the amount transferred to the Build Illinois
15 Fund from the State and Local Sales Tax Reform Fund shall
16 have been less than 1/12 of the Annual Specified Amount, an
17 amount equal to the difference shall be immediately paid into
18 the Build Illinois Fund from other moneys received by the
19 Department pursuant to the Tax Acts; and, further provided,
20 that in no event shall the payments required under the
21 preceding proviso result in aggregate payments into the Build
22 Illinois Fund pursuant to this clause (b) for any fiscal year
23 in excess of the greater of (i) the Tax Act Amount or (ii)
24 the Annual Specified Amount for such fiscal year. The
25 amounts payable into the Build Illinois Fund under clause (b)
26 of the first sentence in this paragraph shall be payable only
27 until such time as the aggregate amount on deposit under each
28 trust indenture securing Bonds issued and outstanding
29 pursuant to the Build Illinois Bond Act is sufficient, taking
30 into account any future investment income, to fully provide,
31 in accordance with such indenture, for the defeasance of or
32 the payment of the principal of, premium, if any, and
33 interest on the Bonds secured by such indenture and on any
34 Bonds expected to be issued thereafter and all fees and costs
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1 payable with respect thereto, all as certified by the
2 Director of the Bureau of the Budget. If on the last
3 business day of any month in which Bonds are outstanding
4 pursuant to the Build Illinois Bond Act, the aggregate of
5 moneys deposited in the Build Illinois Bond Account in the
6 Build Illinois Fund in such month shall be less than the
7 amount required to be transferred in such month from the
8 Build Illinois Bond Account to the Build Illinois Bond
9 Retirement and Interest Fund pursuant to Section 13 of the
10 Build Illinois Bond Act, an amount equal to such deficiency
11 shall be immediately paid from other moneys received by the
12 Department pursuant to the Tax Acts to the Build Illinois
13 Fund; provided, however, that any amounts paid to the Build
14 Illinois Fund in any fiscal year pursuant to this sentence
15 shall be deemed to constitute payments pursuant to clause (b)
16 of the first sentence of this paragraph and shall reduce the
17 amount otherwise payable for such fiscal year pursuant to
18 that clause (b). The moneys received by the Department
19 pursuant to this Act and required to be deposited into the
20 Build Illinois Fund are subject to the pledge, claim and
21 charge set forth in Section 12 of the Build Illinois Bond
22 Act.
23 Subject to payment of amounts into the Build Illinois
24 Fund as provided in the preceding paragraph or in any
25 amendment thereto hereafter enacted, the following specified
26 monthly installment of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority provided under Section 8.25f of the
29 State Finance Act, but not in excess of sums designated as
30 "Total Deposit", shall be deposited in the aggregate from
31 collections under Section 9 of the Use Tax Act, Section 9 of
32 the Service Use Tax Act, Section 9 of the Service Occupation
33 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
34 into the McCormick Place Expansion Project Fund in the
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1 specified fiscal years.
2 Fiscal Year Total Deposit
3 1993 $0
4 1994 53,000,000
5 1995 58,000,000
6 1996 61,000,000
7 1997 64,000,000
8 1998 68,000,000
9 1999 71,000,000
10 2000 75,000,000
11 2001 80,000,000
12 2002 84,000,000
13 2003 89,000,000
14 2004 and 93,000,000
15 each fiscal year
16 thereafter that bonds
17 are outstanding under
18 Section 13.2 of the
19 Metropolitan Pier and
20 Exposition Authority
21 Act.
22 Beginning July 20, 1993 and in each month of each fiscal
23 year thereafter, one-eighth of the amount requested in the
24 certificate of the Chairman of the Metropolitan Pier and
25 Exposition Authority for that fiscal year, less the amount
26 deposited into the McCormick Place Expansion Project Fund by
27 the State Treasurer in the respective month under subsection
28 (g) of Section 13 of the Metropolitan Pier and Exposition
29 Authority Act, plus cumulative deficiencies in the deposits
30 required under this Section for previous months and years,
31 shall be deposited into the McCormick Place Expansion Project
32 Fund, until the full amount requested for the fiscal year,
33 but not in excess of the amount specified above as "Total
34 Deposit", has been deposited.
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1 Subject to payment of amounts into the Build Illinois
2 Fund and the McCormick Place Expansion Project Fund pursuant
3 to the preceding paragraphs or in any amendment thereto
4 hereafter enacted, each month the Department shall pay into
5 the Local Government Distributive Fund 0.4% of the net
6 revenue realized for the preceding month from the 5% general
7 rate or 0.4% of 80% of the net revenue realized for the
8 preceding month from the 6.25% general rate, as the case may
9 be, on the selling price of tangible personal property which
10 amount shall, subject to appropriation, be distributed as
11 provided in Section 2 of the State Revenue Sharing Act. No
12 payments or distributions pursuant to this paragraph shall be
13 made if the tax imposed by this Act on photoprocessing
14 products is declared unconstitutional, or if the proceeds
15 from such tax are unavailable for distribution because of
16 litigation.
17 Subject to payment of amounts into the Build Illinois
18 Fund, the McCormick Place Expansion Project to the preceding
19 paragraphs or in any amendments thereto hereafter enacted,
20 beginning July 1, 1993, the Department shall each month pay
21 into the Illinois Tax Increment Fund 0.27% of 80% of the net
22 revenue realized for the preceding month from the 6.25%
23 general rate on the selling price of tangible personal
24 property.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, 75% thereof shall be paid into the
27 State Treasury and 25% shall be reserved in a special account
28 and used only for the transfer to the Common School Fund as
29 part of the monthly transfer from the General Revenue Fund in
30 accordance with Section 8a of the State Finance Act.
31 The Department may, upon separate written notice to a
32 taxpayer, require the taxpayer to prepare and file with the
33 Department on a form prescribed by the Department within not
34 less than 60 days after receipt of the notice an annual
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1 information return for the tax year specified in the notice.
2 Such annual return to the Department shall include a
3 statement of gross receipts as shown by the retailer's last
4 Federal income tax return. If the total receipts of the
5 business as reported in the Federal income tax return do not
6 agree with the gross receipts reported to the Department of
7 Revenue for the same period, the retailer shall attach to his
8 annual return a schedule showing a reconciliation of the 2
9 amounts and the reasons for the difference. The retailer's
10 annual return to the Department shall also disclose the cost
11 of goods sold by the retailer during the year covered by such
12 return, opening and closing inventories of such goods for
13 such year, costs of goods used from stock or taken from stock
14 and given away by the retailer during such year, payroll
15 information of the retailer's business during such year and
16 any additional reasonable information which the Department
17 deems would be helpful in determining the accuracy of the
18 monthly, quarterly or annual returns filed by such retailer
19 as provided for in this Section.
20 If the annual information return required by this Section
21 is not filed when and as required, the taxpayer shall be
22 liable as follows:
23 (i) Until January 1, 1994, the taxpayer shall be
24 liable for a penalty equal to 1/6 of 1% of the tax due
25 from such taxpayer under this Act during the period to be
26 covered by the annual return for each month or fraction
27 of a month until such return is filed as required, the
28 penalty to be assessed and collected in the same manner
29 as any other penalty provided for in this Act.
30 (ii) On and after January 1, 1994, the taxpayer
31 shall be liable for a penalty as described in Section 3-4
32 of the Uniform Penalty and Interest Act.
33 The chief executive officer, proprietor, owner or highest
34 ranking manager shall sign the annual return to certify the
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1 accuracy of the information contained therein. Any person
2 who willfully signs the annual return containing false or
3 inaccurate information shall be guilty of perjury and
4 punished accordingly. The annual return form prescribed by
5 the Department shall include a warning that the person
6 signing the return may be liable for perjury.
7 The provisions of this Section concerning the filing of
8 an annual information return do not apply to a retailer who
9 is not required to file an income tax return with the United
10 States Government.
11 As soon as possible after the first day of each month,
12 upon certification of the Department of Revenue, the
13 Comptroller shall order transferred and the Treasurer shall
14 transfer from the General Revenue Fund to the Motor Fuel Tax
15 Fund an amount equal to 1.7% of 80% of the net revenue
16 realized under this Act for the second preceding month;
17 except that this transfer shall not be made for the months
18 February through June, 1992.
19 Net revenue realized for a month shall be the revenue
20 collected by the State pursuant to this Act, less the amount
21 paid out during that month as refunds to taxpayers for
22 overpayment of liability.
23 For greater simplicity of administration, manufacturers,
24 importers and wholesalers whose products are sold at retail
25 in Illinois by numerous retailers, and who wish to do so, may
26 assume the responsibility for accounting and paying to the
27 Department all tax accruing under this Act with respect to
28 such sales, if the retailers who are affected do not make
29 written objection to the Department to this arrangement.
30 Any person who promotes, organizes, provides retail
31 selling space for concessionaires or other types of sellers
32 at the Illinois State Fair, DuQuoin State Fair, county fairs,
33 local fairs, art shows, flea markets and similar exhibitions
34 or events, including any transient merchant as defined by
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1 Section 2 of the Transient Merchant Act of 1987, is required
2 to file a report with the Department providing the name of
3 the merchant's business, the name of the person or persons
4 engaged in merchant's business, the permanent address and
5 Illinois Retailers Occupation Tax Registration Number of the
6 merchant, the dates and location of the event and other
7 reasonable information that the Department may require. The
8 report must be filed not later than the 20th day of the month
9 next following the month during which the event with retail
10 sales was held. Any person who fails to file a report
11 required by this Section commits a business offense and is
12 subject to a fine not to exceed $250.
13 Any person engaged in the business of selling tangible
14 personal property at retail as a concessionaire or other type
15 of seller at the Illinois State Fair, county fairs, art
16 shows, flea markets and similar exhibitions or events, or any
17 transient merchants, as defined by Section 2 of the Transient
18 Merchant Act of 1987, may be required to make a daily report
19 of the amount of such sales to the Department and to make a
20 daily payment of the full amount of tax due. The Department
21 shall impose this requirement when it finds that there is a
22 significant risk of loss of revenue to the State at such an
23 exhibition or event. Such a finding shall be based on
24 evidence that a substantial number of concessionaires or
25 other sellers who are not residents of Illinois will be
26 engaging in the business of selling tangible personal
27 property at retail at the exhibition or event, or other
28 evidence of a significant risk of loss of revenue to the
29 State. The Department shall notify concessionaires and other
30 sellers affected by the imposition of this requirement. In
31 the absence of notification by the Department, the
32 concessionaires and other sellers shall file their returns as
33 otherwise required in this Section.
34 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
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1 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
2 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
3 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
4 (Text of Section after amendment by P.A. 90-491)
5 Sec. 3. Except as provided in this Section, on or before
6 the twentieth day of each calendar month, every person
7 engaged in the business of selling tangible personal property
8 at retail in this State during the preceding calendar month
9 shall file a return with the Department, stating:
10 1. The name of the seller;
11 2. His residence address and the address of his
12 principal place of business and the address of the
13 principal place of business (if that is a different
14 address) from which he engages in the business of selling
15 tangible personal property at retail in this State;
16 3. Total amount of receipts received by him during
17 the preceding calendar month or quarter, as the case may
18 be, from sales of tangible personal property, and from
19 services furnished, by him during such preceding calendar
20 month or quarter;
21 4. Total amount received by him during the
22 preceding calendar month or quarter on charge and time
23 sales of tangible personal property, and from services
24 furnished, by him prior to the month or quarter for which
25 the return is filed;
26 5. Deductions allowed by law;
27 6. Gross receipts which were received by him during
28 the preceding calendar month or quarter and upon the
29 basis of which the tax is imposed;
30 7. The amount of credit provided in Section 2d of
31 this Act;
32 8. The amount of tax due;
33 9. The signature of the taxpayer; and
34 10. Such other reasonable information as the
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1 Department may require.
2 If a taxpayer fails to sign a return within 30 days after
3 the proper notice and demand for signature by the Department,
4 the return shall be considered valid and any amount shown to
5 be due on the return shall be deemed assessed.
6 Each return shall be accompanied by the statement of
7 prepaid tax issued pursuant to Section 2e for which credit is
8 claimed.
9 A retailer may accept a Manufacturer's Purchase Credit
10 certification from a purchaser in satisfaction of Use Tax as
11 provided in Section 3-85 of the Use Tax Act if the purchaser
12 provides the appropriate documentation as required by Section
13 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
14 certification, accepted by a retailer as provided in Section
15 3-85 of the Use Tax Act, may be used by that retailer to
16 satisfy Retailers' Occupation Tax liability in the amount
17 claimed in the certification, not to exceed 6.25% of the
18 receipts subject to tax from a qualifying purchase.
19 The Department may require returns to be filed on a
20 quarterly basis. If so required, a return for each calendar
21 quarter shall be filed on or before the twentieth day of the
22 calendar month following the end of such calendar quarter.
23 The taxpayer shall also file a return with the Department for
24 each of the first two months of each calendar quarter, on or
25 before the twentieth day of the following calendar month,
26 stating:
27 1. The name of the seller;
28 2. The address of the principal place of business
29 from which he engages in the business of selling tangible
30 personal property at retail in this State;
31 3. The total amount of taxable receipts received by
32 him during the preceding calendar month from sales of
33 tangible personal property by him during such preceding
34 calendar month, including receipts from charge and time
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1 sales, but less all deductions allowed by law;
2 4. The amount of credit provided in Section 2d of
3 this Act;
4 5. The amount of tax due; and
5 6. Such other reasonable information as the
6 Department may require.
7 If a total amount of less than $1 is payable, refundable
8 or creditable, such amount shall be disregarded if it is less
9 than 50 cents and shall be increased to $1 if it is 50 cents
10 or more.
11 Beginning October 1, 1993, a taxpayer who has an average
12 monthly tax liability of $150,000 or more shall make all
13 payments required by rules of the Department by electronic
14 funds transfer. Beginning October 1, 1994, a taxpayer who
15 has an average monthly tax liability of $100,000 or more
16 shall make all payments required by rules of the Department
17 by electronic funds transfer. Beginning October 1, 1995, a
18 taxpayer who has an average monthly tax liability of $50,000
19 or more shall make all payments required by rules of the
20 Department by electronic funds transfer. The term "average
21 monthly tax liability" shall be the sum of the taxpayer's
22 liabilities under this Act, and under all other State and
23 local occupation and use tax laws administered by the
24 Department, for the immediately preceding calendar year
25 divided by 12.
26 Before August 1 of each year beginning in 1993, the
27 Department shall notify all taxpayers required to make
28 payments by electronic funds transfer. All taxpayers
29 required to make payments by electronic funds transfer shall
30 make those payments for a minimum of one year beginning on
31 October 1.
32 Any taxpayer not required to make payments by electronic
33 funds transfer may make payments by electronic funds transfer
34 with the permission of the Department.
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1 All taxpayers required to make payment by electronic
2 funds transfer and any taxpayers authorized to voluntarily
3 make payments by electronic funds transfer shall make those
4 payments in the manner authorized by the Department.
5 The Department shall adopt such rules as are necessary to
6 effectuate a program of electronic funds transfer and the
7 requirements of this Section.
8 Any amount which is required to be shown or reported on
9 any return or other document under this Act shall, if such
10 amount is not a whole-dollar amount, be increased to the
11 nearest whole-dollar amount in any case where the fractional
12 part of a dollar is 50 cents or more, and decreased to the
13 nearest whole-dollar amount where the fractional part of a
14 dollar is less than 50 cents.
15 If the retailer is otherwise required to file a monthly
16 return and if the retailer's average monthly tax liability to
17 the Department does not exceed $200, the Department may
18 authorize his returns to be filed on a quarter annual basis,
19 with the return for January, February and March of a given
20 year being due by April 20 of such year; with the return for
21 April, May and June of a given year being due by July 20 of
22 such year; with the return for July, August and September of
23 a given year being due by October 20 of such year, and with
24 the return for October, November and December of a given year
25 being due by January 20 of the following year.
26 If the retailer is otherwise required to file a monthly
27 or quarterly return and if the retailer's average monthly tax
28 liability with the Department does not exceed $50, the
29 Department may authorize his returns to be filed on an annual
30 basis, with the return for a given year being due by January
31 20 of the following year.
32 Such quarter annual and annual returns, as to form and
33 substance, shall be subject to the same requirements as
34 monthly returns.
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1 Notwithstanding any other provision in this Act
2 concerning the time within which a retailer may file his
3 return, in the case of any retailer who ceases to engage in a
4 kind of business which makes him responsible for filing
5 returns under this Act, such retailer shall file a final
6 return under this Act with the Department not more than one
7 month after discontinuing such business.
8 Where the same person has more than one business
9 registered with the Department under separate registrations
10 under this Act, such person may not file each return that is
11 due as a single return covering all such registered
12 businesses, but shall file separate returns for each such
13 registered business.
14 In addition, with respect to motor vehicles, watercraft,
15 aircraft, and trailers that are required to be registered
16 with an agency of this State, every retailer selling this
17 kind of tangible personal property shall file, with the
18 Department, upon a form to be prescribed and supplied by the
19 Department, a separate return for each such item of tangible
20 personal property which the retailer sells, except that
21 where, in the same transaction, a retailer of aircraft,
22 watercraft, motor vehicles or trailers transfers more than
23 one aircraft, watercraft, motor vehicle or trailer to another
24 aircraft, watercraft, motor vehicle retailer or trailer
25 retailer for the purpose of resale, that seller for resale
26 may report the transfer of all aircraft, watercraft, motor
27 vehicles or trailers involved in that transaction to the
28 Department on the same uniform invoice-transaction reporting
29 return form. For purposes of this Section, "watercraft"
30 means a Class 2, Class 3, or Class 4 watercraft as defined in
31 Section 3-2 of the Boat Registration and Safety Act, a
32 personal watercraft, or any boat equipped with an inboard
33 motor.
34 Any retailer who sells only motor vehicles, watercraft,
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1 aircraft, or trailers that are required to be registered with
2 an agency of this State, so that all retailers' occupation
3 tax liability is required to be reported, and is reported, on
4 such transaction reporting returns and who is not otherwise
5 required to file monthly or quarterly returns, need not file
6 monthly or quarterly returns. However, those retailers shall
7 be required to file returns on an annual basis.
8 The transaction reporting return, in the case of motor
9 vehicles or trailers that are required to be registered with
10 an agency of this State, shall be the same document as the
11 Uniform Invoice referred to in Section 5-402 of The Illinois
12 Vehicle Code and must show the name and address of the
13 seller; the name and address of the purchaser; the amount of
14 the selling price including the amount allowed by the
15 retailer for traded-in property, if any; the amount allowed
16 by the retailer for the traded-in tangible personal property,
17 if any, to the extent to which Section 1 of this Act allows
18 an exemption for the value of traded-in property; the balance
19 payable after deducting such trade-in allowance from the
20 total selling price; the amount of tax due from the retailer
21 with respect to such transaction; the amount of tax collected
22 from the purchaser by the retailer on such transaction (or
23 satisfactory evidence that such tax is not due in that
24 particular instance, if that is claimed to be the fact); the
25 place and date of the sale; a sufficient identification of
26 the property sold; such other information as is required in
27 Section 5-402 of The Illinois Vehicle Code, and such other
28 information as the Department may reasonably require.
29 The transaction reporting return in the case of
30 watercraft or aircraft must show the name and address of the
31 seller; the name and address of the purchaser; the amount of
32 the selling price including the amount allowed by the
33 retailer for traded-in property, if any; the amount allowed
34 by the retailer for the traded-in tangible personal property,
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1 if any, to the extent to which Section 1 of this Act allows
2 an exemption for the value of traded-in property; the balance
3 payable after deducting such trade-in allowance from the
4 total selling price; the amount of tax due from the retailer
5 with respect to such transaction; the amount of tax collected
6 from the purchaser by the retailer on such transaction (or
7 satisfactory evidence that such tax is not due in that
8 particular instance, if that is claimed to be the fact); the
9 place and date of the sale, a sufficient identification of
10 the property sold, and such other information as the
11 Department may reasonably require.
12 Such transaction reporting return shall be filed not
13 later than 20 days after the day of delivery of the item that
14 is being sold, but may be filed by the retailer at any time
15 sooner than that if he chooses to do so. The transaction
16 reporting return and tax remittance or proof of exemption
17 from the Illinois use tax may be transmitted to the
18 Department by way of the State agency with which, or State
19 officer with whom the tangible personal property must be
20 titled or registered (if titling or registration is required)
21 if the Department and such agency or State officer determine
22 that this procedure will expedite the processing of
23 applications for title or registration.
24 With each such transaction reporting return, the retailer
25 shall remit the proper amount of tax due (or shall submit
26 satisfactory evidence that the sale is not taxable if that is
27 the case), to the Department or its agents, whereupon the
28 Department shall issue, in the purchaser's name, a use tax
29 receipt (or a certificate of exemption if the Department is
30 satisfied that the particular sale is tax exempt) which such
31 purchaser may submit to the agency with which, or State
32 officer with whom, he must title or register the tangible
33 personal property that is involved (if titling or
34 registration is required) in support of such purchaser's
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1 application for an Illinois certificate or other evidence of
2 title or registration to such tangible personal property.
3 No retailer's failure or refusal to remit tax under this
4 Act precludes a user, who has paid the proper tax to the
5 retailer, from obtaining his certificate of title or other
6 evidence of title or registration (if titling or registration
7 is required) upon satisfying the Department that such user
8 has paid the proper tax (if tax is due) to the retailer. The
9 Department shall adopt appropriate rules to carry out the
10 mandate of this paragraph.
11 If the user who would otherwise pay tax to the retailer
12 wants the transaction reporting return filed and the payment
13 of the tax or proof of exemption made to the Department
14 before the retailer is willing to take these actions and such
15 user has not paid the tax to the retailer, such user may
16 certify to the fact of such delay by the retailer and may
17 (upon the Department being satisfied of the truth of such
18 certification) transmit the information required by the
19 transaction reporting return and the remittance for tax or
20 proof of exemption directly to the Department and obtain his
21 tax receipt or exemption determination, in which event the
22 transaction reporting return and tax remittance (if a tax
23 payment was required) shall be credited by the Department to
24 the proper retailer's account with the Department, but
25 without the 2.1% or 1.75% discount provided for in this
26 Section being allowed. When the user pays the tax directly
27 to the Department, he shall pay the tax in the same amount
28 and in the same form in which it would be remitted if the tax
29 had been remitted to the Department by the retailer.
30 Refunds made by the seller during the preceding return
31 period to purchasers, on account of tangible personal
32 property returned to the seller, shall be allowed as a
33 deduction under subdivision 5 of his monthly or quarterly
34 return, as the case may be, in case the seller had
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1 theretofore included the receipts from the sale of such
2 tangible personal property in a return filed by him and had
3 paid the tax imposed by this Act with respect to such
4 receipts.
5 Where the seller is a corporation, the return filed on
6 behalf of such corporation shall be signed by the president,
7 vice-president, secretary or treasurer or by the properly
8 accredited agent of such corporation.
9 Where the seller is a limited liability company, the
10 return filed on behalf of the limited liability company shall
11 be signed by a manager, member, or properly accredited agent
12 of the limited liability company.
13 Except as provided in this Section, the retailer filing
14 the return under this Section shall, at the time of filing
15 such return, pay to the Department the amount of tax imposed
16 by this Act less a discount of 2.1% prior to January 1, 1990
17 and 1.75% on and after January 1, 1990, or $5 per calendar
18 year, whichever is greater, which is allowed to reimburse the
19 retailer for the expenses incurred in keeping records,
20 preparing and filing returns, remitting the tax and supplying
21 data to the Department on request. Any prepayment made
22 pursuant to Section 2d of this Act shall be included in the
23 amount on which such 2.1% or 1.75% discount is computed. In
24 the case of retailers who report and pay the tax on a
25 transaction by transaction basis, as provided in this
26 Section, such discount shall be taken with each such tax
27 remittance instead of when such retailer files his periodic
28 return.
29 If the taxpayer's average monthly tax liability to the
30 Department under this Act, the Use Tax Act, the Service
31 Occupation Tax Act, and the Service Use Tax Act, excluding
32 any liability for prepaid sales tax to be remitted in
33 accordance with Section 2d of this Act, was $10,000 or more
34 during the preceding 4 complete calendar quarters, he shall
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1 file a return with the Department each month by the 20th day
2 of the month next following the month during which such tax
3 liability is incurred and shall make payments to the
4 Department on or before the 7th, 15th, 22nd and last day of
5 the month during which such liability is incurred. If the
6 month during which such tax liability is incurred began prior
7 to January 1, 1985, each payment shall be in an amount equal
8 to 1/4 of the taxpayer's actual liability for the month or an
9 amount set by the Department not to exceed 1/4 of the average
10 monthly liability of the taxpayer to the Department for the
11 preceding 4 complete calendar quarters (excluding the month
12 of highest liability and the month of lowest liability in
13 such 4 quarter period). If the month during which such tax
14 liability is incurred begins on or after January 1, 1985 and
15 prior to January 1, 1987, each payment shall be in an amount
16 equal to 22.5% of the taxpayer's actual liability for the
17 month or 27.5% of the taxpayer's liability for the same
18 calendar month of the preceding year. If the month during
19 which such tax liability is incurred begins on or after
20 January 1, 1987 and prior to January 1, 1988, each payment
21 shall be in an amount equal to 22.5% of the taxpayer's actual
22 liability for the month or 26.25% of the taxpayer's liability
23 for the same calendar month of the preceding year. If the
24 month during which such tax liability is incurred begins on
25 or after January 1, 1988, and prior to January 1, 1989, or
26 begins on or after January 1, 1996, each payment shall be in
27 an amount equal to 22.5% of the taxpayer's actual liability
28 for the month or 25% of the taxpayer's liability for the same
29 calendar month of the preceding year. If the month during
30 which such tax liability is incurred begins on or after
31 January 1, 1989, and prior to January 1, 1996, each payment
32 shall be in an amount equal to 22.5% of the taxpayer's actual
33 liability for the month or 25% of the taxpayer's liability
34 for the same calendar month of the preceding year or 100% of
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1 the taxpayer's actual liability for the quarter monthly
2 reporting period. The amount of such quarter monthly
3 payments shall be credited against the final tax liability of
4 the taxpayer's return for that month. Once applicable, the
5 requirement of the making of quarter monthly payments to the
6 Department by taxpayers having an average monthly tax
7 liability of $10,000 or more as determined in the manner
8 provided above shall continue until such taxpayer's average
9 monthly liability to the Department during the preceding 4
10 complete calendar quarters (excluding the month of highest
11 liability and the month of lowest liability) is less than
12 $9,000, or until such taxpayer's average monthly liability to
13 the Department as computed for each calendar quarter of the 4
14 preceding complete calendar quarter period is less than
15 $10,000. However, if a taxpayer can show the Department that
16 a substantial change in the taxpayer's business has occurred
17 which causes the taxpayer to anticipate that his average
18 monthly tax liability for the reasonably foreseeable future
19 will fall below $10,000, then such taxpayer may petition the
20 Department for a change in such taxpayer's reporting status.
21 The Department shall change such taxpayer's reporting status
22 unless it finds that such change is seasonal in nature and
23 not likely to be long term. If any such quarter monthly
24 payment is not paid at the time or in the amount required by
25 this Section, then the taxpayer shall be liable for penalties
26 and interest on the difference between the minimum amount due
27 as a payment and the amount of such quarter monthly payment
28 actually and timely paid, except insofar as the taxpayer has
29 previously made payments for that month to the Department in
30 excess of the minimum payments previously due as provided in
31 this Section. The Department shall make reasonable rules and
32 regulations to govern the quarter monthly payment amount and
33 quarter monthly payment dates for taxpayers who file on other
34 than a calendar monthly basis.
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1 Without regard to whether a taxpayer is required to make
2 quarter monthly payments as specified above, any taxpayer who
3 is required by Section 2d of this Act to collect and remit
4 prepaid taxes and has collected prepaid taxes which average
5 in excess of $25,000 per month during the preceding 2
6 complete calendar quarters, shall file a return with the
7 Department as required by Section 2f and shall make payments
8 to the Department on or before the 7th, 15th, 22nd and last
9 day of the month during which such liability is incurred. If
10 the month during which such tax liability is incurred began
11 prior to the effective date of this amendatory Act of 1985,
12 each payment shall be in an amount not less than 22.5% of the
13 taxpayer's actual liability under Section 2d. If the month
14 during which such tax liability is incurred begins on or
15 after January 1, 1986, each payment shall be in an amount
16 equal to 22.5% of the taxpayer's actual liability for the
17 month or 27.5% of the taxpayer's liability for the same
18 calendar month of the preceding calendar year. If the month
19 during which such tax liability is incurred begins on or
20 after January 1, 1987, each payment shall be in an amount
21 equal to 22.5% of the taxpayer's actual liability for the
22 month or 26.25% of the taxpayer's liability for the same
23 calendar month of the preceding year. The amount of such
24 quarter monthly payments shall be credited against the final
25 tax liability of the taxpayer's return for that month filed
26 under this Section or Section 2f, as the case may be. Once
27 applicable, the requirement of the making of quarter monthly
28 payments to the Department pursuant to this paragraph shall
29 continue until such taxpayer's average monthly prepaid tax
30 collections during the preceding 2 complete calendar quarters
31 is $25,000 or less. If any such quarter monthly payment is
32 not paid at the time or in the amount required, the taxpayer
33 shall be liable for penalties and interest on such
34 difference, except insofar as the taxpayer has previously
-89- LRB9007347KDpc
1 made payments for that month in excess of the minimum
2 payments previously due.
3 If any payment provided for in this Section exceeds the
4 taxpayer's liabilities under this Act, the Use Tax Act, the
5 Service Occupation Tax Act and the Service Use Tax Act, as
6 shown on an original monthly return, the Department shall, if
7 requested by the taxpayer, issue to the taxpayer a credit
8 memorandum no later than 30 days after the date of payment.
9 The credit evidenced by such credit memorandum may be
10 assigned by the taxpayer to a similar taxpayer under this
11 Act, the Use Tax Act, the Service Occupation Tax Act or the
12 Service Use Tax Act, in accordance with reasonable rules and
13 regulations to be prescribed by the Department. If no such
14 request is made, the taxpayer may credit such excess payment
15 against tax liability subsequently to be remitted to the
16 Department under this Act, the Use Tax Act, the Service
17 Occupation Tax Act or the Service Use Tax Act, in accordance
18 with reasonable rules and regulations prescribed by the
19 Department. If the Department subsequently determined that
20 all or any part of the credit taken was not actually due to
21 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
22 shall be reduced by 2.1% or 1.75% of the difference between
23 the credit taken and that actually due, and that taxpayer
24 shall be liable for penalties and interest on such
25 difference.
26 If a retailer of motor fuel is entitled to a credit under
27 Section 2d of this Act which exceeds the taxpayer's liability
28 to the Department under this Act for the month which the
29 taxpayer is filing a return, the Department shall issue the
30 taxpayer a credit memorandum for the excess.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund, a special fund
33 in the State treasury which is hereby created, the net
34 revenue realized for the preceding month from the 1% tax on
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1 sales of food for human consumption which is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, soft drinks and food which has been prepared for
4 immediate consumption) and prescription and nonprescription
5 medicines, drugs, medical appliances and insulin, urine
6 testing materials, syringes and needles used by diabetics.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the County and Mass Transit District Fund, a
9 special fund in the State treasury which is hereby created,
10 4% of the net revenue realized for the preceding month from
11 the 6.25% general rate.
12 Each month the Department shall pay into the County and
13 Mass Transit District Fund 20% of the net revenue realized
14 for the preceding month from the 1.25% rate imposed upon the
15 sale of any motor vehicle that is sold at retail to a lessor
16 for purposes of leasing under a lease subject to the
17 Automobile Leasing Occupation and Use Tax Act.
18 Beginning January 1, 1990, each month the Department
19 shall pay into the Local Government Tax Fund 16% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property.
23 Each month the Department shall pay into the Local
24 Government Tax Fund 80% of the net revenue realized for the
25 preceding month from the 1.25% rate imposed upon the sale of
26 any motor vehicle that is sold at retail to a lessor for
27 purposes of leasing under a lease subject to the Automobile
28 Leasing Occupation and Use Tax Act.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, and including all moneys received by
31 the Department pursuant to Section 10 of the Automobile
32 Leasing Occupation and Use Tax Act, and including all of the
33 moneys received pursuant to the 5% rate imposed upon sales of
34 motor vehicles by lessors to the lessees of such vehicles in
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1 connection with a lease that was subject to the Automobile
2 Leasing Occupation and Use Tax Act
3 Of the remainder of the moneys received by the Department
4 pursuant to this Act, (a) 1.75% thereof shall be paid into
5 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
6 and on and after July 1, 1989, 3.8% thereof shall be paid
7 into the Build Illinois Fund; provided, however, that if in
8 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
9 as the case may be, of the moneys received by the Department
10 and required to be paid into the Build Illinois Fund pursuant
11 to this Act, Section 9 of the Use Tax Act, Section 9 of the
12 Service Use Tax Act, and Section 9 of the Service Occupation
13 Tax Act, such Acts being hereinafter called the "Tax Acts"
14 and such aggregate of 2.2% or 3.8%, as the case may be, of
15 moneys being hereinafter called the "Tax Act Amount", and (2)
16 the amount transferred to the Build Illinois Fund from the
17 State and Local Sales Tax Reform Fund shall be less than the
18 Annual Specified Amount (as hereinafter defined), an amount
19 equal to the difference shall be immediately paid into the
20 Build Illinois Fund from other moneys received by the
21 Department pursuant to the Tax Acts; the "Annual Specified
22 Amount" means the amounts specified below for fiscal years
23 1986 through 1993:
24 Fiscal Year Annual Specified Amount
25 1986 $54,800,000
26 1987 $76,650,000
27 1988 $80,480,000
28 1989 $88,510,000
29 1990 $115,330,000
30 1991 $145,470,000
31 1992 $182,730,000
32 1993 $206,520,000;
33 and means the Certified Annual Debt Service Requirement (as
34 defined in Section 13 of the Build Illinois Bond Act) or the
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1 Tax Act Amount, whichever is greater, for fiscal year 1994
2 and each fiscal year thereafter; and further provided, that
3 if on the last business day of any month the sum of (1) the
4 Tax Act Amount required to be deposited into the Build
5 Illinois Bond Account in the Build Illinois Fund during such
6 month and (2) the amount transferred to the Build Illinois
7 Fund from the State and Local Sales Tax Reform Fund shall
8 have been less than 1/12 of the Annual Specified Amount, an
9 amount equal to the difference shall be immediately paid into
10 the Build Illinois Fund from other moneys received by the
11 Department pursuant to the Tax Acts; and, further provided,
12 that in no event shall the payments required under the
13 preceding proviso result in aggregate payments into the Build
14 Illinois Fund pursuant to this clause (b) for any fiscal year
15 in excess of the greater of (i) the Tax Act Amount or (ii)
16 the Annual Specified Amount for such fiscal year. The
17 amounts payable into the Build Illinois Fund under clause (b)
18 of the first sentence in this paragraph shall be payable only
19 until such time as the aggregate amount on deposit under each
20 trust indenture securing Bonds issued and outstanding
21 pursuant to the Build Illinois Bond Act is sufficient, taking
22 into account any future investment income, to fully provide,
23 in accordance with such indenture, for the defeasance of or
24 the payment of the principal of, premium, if any, and
25 interest on the Bonds secured by such indenture and on any
26 Bonds expected to be issued thereafter and all fees and costs
27 payable with respect thereto, all as certified by the
28 Director of the Bureau of the Budget. If on the last
29 business day of any month in which Bonds are outstanding
30 pursuant to the Build Illinois Bond Act, the aggregate of
31 moneys deposited in the Build Illinois Bond Account in the
32 Build Illinois Fund in such month shall be less than the
33 amount required to be transferred in such month from the
34 Build Illinois Bond Account to the Build Illinois Bond
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1 Retirement and Interest Fund pursuant to Section 13 of the
2 Build Illinois Bond Act, an amount equal to such deficiency
3 shall be immediately paid from other moneys received by the
4 Department pursuant to the Tax Acts to the Build Illinois
5 Fund; provided, however, that any amounts paid to the Build
6 Illinois Fund in any fiscal year pursuant to this sentence
7 shall be deemed to constitute payments pursuant to clause (b)
8 of the first sentence of this paragraph and shall reduce the
9 amount otherwise payable for such fiscal year pursuant to
10 that clause (b). The moneys received by the Department
11 pursuant to this Act and required to be deposited into the
12 Build Illinois Fund are subject to the pledge, claim and
13 charge set forth in Section 12 of the Build Illinois Bond
14 Act.
15 Subject to payment of amounts into the Build Illinois
16 Fund as provided in the preceding paragraph or in any
17 amendment thereto hereafter enacted, the following specified
18 monthly installment of the amount requested in the
19 certificate of the Chairman of the Metropolitan Pier and
20 Exposition Authority provided under Section 8.25f of the
21 State Finance Act, but not in excess of sums designated as
22 "Total Deposit", shall be deposited in the aggregate from
23 collections under Section 9 of the Use Tax Act, Section 9 of
24 the Service Use Tax Act, Section 9 of the Service Occupation
25 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
26 into the McCormick Place Expansion Project Fund in the
27 specified fiscal years.
28 Fiscal Year Total Deposit
29 1993 $0
30 1994 53,000,000
31 1995 58,000,000
32 1996 61,000,000
33 1997 64,000,000
34 1998 68,000,000
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1 1999 71,000,000
2 2000 75,000,000
3 2001 80,000,000
4 2002 84,000,000
5 2003 89,000,000
6 2004 and 93,000,000
7 each fiscal year
8 thereafter that bonds
9 are outstanding under
10 Section 13.2 of the
11 Metropolitan Pier and
12 Exposition Authority
13 Act.
14 Beginning July 20, 1993 and in each month of each fiscal
15 year thereafter, one-eighth of the amount requested in the
16 certificate of the Chairman of the Metropolitan Pier and
17 Exposition Authority for that fiscal year, less the amount
18 deposited into the McCormick Place Expansion Project Fund by
19 the State Treasurer in the respective month under subsection
20 (g) of Section 13 of the Metropolitan Pier and Exposition
21 Authority Act, plus cumulative deficiencies in the deposits
22 required under this Section for previous months and years,
23 shall be deposited into the McCormick Place Expansion Project
24 Fund, until the full amount requested for the fiscal year,
25 but not in excess of the amount specified above as "Total
26 Deposit", has been deposited.
27 Subject to payment of amounts into the Build Illinois
28 Fund and the McCormick Place Expansion Project Fund pursuant
29 to the preceding paragraphs or in any amendment thereto
30 hereafter enacted, each month the Department shall pay into
31 the Local Government Distributive Fund 0.4% of the net
32 revenue realized for the preceding month from the 5% general
33 rate or 0.4% of 80% of the net revenue realized for the
34 preceding month from the 6.25% general rate, as the case may
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1 be, on the selling price of tangible personal property which
2 amount shall, subject to appropriation, be distributed as
3 provided in Section 2 of the State Revenue Sharing Act. No
4 payments or distributions pursuant to this paragraph shall be
5 made if the tax imposed by this Act on photoprocessing
6 products is declared unconstitutional, or if the proceeds
7 from such tax are unavailable for distribution because of
8 litigation.
9 Subject to payment of amounts into the Build Illinois
10 Fund, the McCormick Place Expansion Project to the preceding
11 paragraphs or in any amendments thereto hereafter enacted,
12 beginning July 1, 1993, the Department shall each month pay
13 into the Illinois Tax Increment Fund 0.27% of 80% of the net
14 revenue realized for the preceding month from the 6.25%
15 general rate on the selling price of tangible personal
16 property.
17 Of the remainder of the moneys received by the Department
18 pursuant to this Act, 75% thereof shall be paid into the
19 State Treasury and 25% shall be reserved in a special account
20 and used only for the transfer to the Common School Fund as
21 part of the monthly transfer from the General Revenue Fund in
22 accordance with Section 8a of the State Finance Act.
23 The Department may, upon separate written notice to a
24 taxpayer, require the taxpayer to prepare and file with the
25 Department on a form prescribed by the Department within not
26 less than 60 days after receipt of the notice an annual
27 information return for the tax year specified in the notice.
28 Such annual return to the Department shall include a
29 statement of gross receipts as shown by the retailer's last
30 Federal income tax return. If the total receipts of the
31 business as reported in the Federal income tax return do not
32 agree with the gross receipts reported to the Department of
33 Revenue for the same period, the retailer shall attach to his
34 annual return a schedule showing a reconciliation of the 2
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1 amounts and the reasons for the difference. The retailer's
2 annual return to the Department shall also disclose the cost
3 of goods sold by the retailer during the year covered by such
4 return, opening and closing inventories of such goods for
5 such year, costs of goods used from stock or taken from stock
6 and given away by the retailer during such year, payroll
7 information of the retailer's business during such year and
8 any additional reasonable information which the Department
9 deems would be helpful in determining the accuracy of the
10 monthly, quarterly or annual returns filed by such retailer
11 as provided for in this Section.
12 If the annual information return required by this Section
13 is not filed when and as required, the taxpayer shall be
14 liable as follows:
15 (i) Until January 1, 1994, the taxpayer shall be
16 liable for a penalty equal to 1/6 of 1% of the tax due
17 from such taxpayer under this Act during the period to be
18 covered by the annual return for each month or fraction
19 of a month until such return is filed as required, the
20 penalty to be assessed and collected in the same manner
21 as any other penalty provided for in this Act.
22 (ii) On and after January 1, 1994, the taxpayer
23 shall be liable for a penalty as described in Section 3-4
24 of the Uniform Penalty and Interest Act.
25 The chief executive officer, proprietor, owner or highest
26 ranking manager shall sign the annual return to certify the
27 accuracy of the information contained therein. Any person
28 who willfully signs the annual return containing false or
29 inaccurate information shall be guilty of perjury and
30 punished accordingly. The annual return form prescribed by
31 the Department shall include a warning that the person
32 signing the return may be liable for perjury.
33 The provisions of this Section concerning the filing of
34 an annual information return do not apply to a retailer who
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1 is not required to file an income tax return with the United
2 States Government.
3 As soon as possible after the first day of each month,
4 upon certification of the Department of Revenue, the
5 Comptroller shall order transferred and the Treasurer shall
6 transfer from the General Revenue Fund to the Motor Fuel Tax
7 Fund an amount equal to 1.7% of 80% of the net revenue
8 realized under this Act for the second preceding month;
9 except that this transfer shall not be made for the months
10 February through June, 1992.
11 Net revenue realized for a month shall be the revenue
12 collected by the State pursuant to this Act, less the amount
13 paid out during that month as refunds to taxpayers for
14 overpayment of liability.
15 For greater simplicity of administration, manufacturers,
16 importers and wholesalers whose products are sold at retail
17 in Illinois by numerous retailers, and who wish to do so, may
18 assume the responsibility for accounting and paying to the
19 Department all tax accruing under this Act with respect to
20 such sales, if the retailers who are affected do not make
21 written objection to the Department to this arrangement.
22 Any person who promotes, organizes, provides retail
23 selling space for concessionaires or other types of sellers
24 at the Illinois State Fair, DuQuoin State Fair, county fairs,
25 local fairs, art shows, flea markets and similar exhibitions
26 or events, including any transient merchant as defined by
27 Section 2 of the Transient Merchant Act of 1987, is required
28 to file a report with the Department providing the name of
29 the merchant's business, the name of the person or persons
30 engaged in merchant's business, the permanent address and
31 Illinois Retailers Occupation Tax Registration Number of the
32 merchant, the dates and location of the event and other
33 reasonable information that the Department may require. The
34 report must be filed not later than the 20th day of the month
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1 next following the month during which the event with retail
2 sales was held. Any person who fails to file a report
3 required by this Section commits a business offense and is
4 subject to a fine not to exceed $250.
5 Any person engaged in the business of selling tangible
6 personal property at retail as a concessionaire or other type
7 of seller at the Illinois State Fair, county fairs, art
8 shows, flea markets and similar exhibitions or events, or any
9 transient merchants, as defined by Section 2 of the Transient
10 Merchant Act of 1987, may be required to make a daily report
11 of the amount of such sales to the Department and to make a
12 daily payment of the full amount of tax due. The Department
13 shall impose this requirement when it finds that there is a
14 significant risk of loss of revenue to the State at such an
15 exhibition or event. Such a finding shall be based on
16 evidence that a substantial number of concessionaires or
17 other sellers who are not residents of Illinois will be
18 engaging in the business of selling tangible personal
19 property at retail at the exhibition or event, or other
20 evidence of a significant risk of loss of revenue to the
21 State. The Department shall notify concessionaires and other
22 sellers affected by the imposition of this requirement. In
23 the absence of notification by the Department, the
24 concessionaires and other sellers shall file their returns as
25 otherwise required in this Section.
26 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
27 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
28 1-1-99.)
29 Section 99. Effective date. This Act takes effect July
30 1, 1998.
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