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91_SB0666eng
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1 AN ACT in relation to 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 Qualified Technological Equipment Leasing Occupation and Use
6 Tax Act.
7 Section 5. Definitions. As used in this Act, the
8 following terms have the following meanings:
9 "Computer" means a programmable electronically activated
10 device that:
11 (a) is capable of accepting information, applying
12 prescribed processes as to the information, and supplying the
13 results of these processes with or without human
14 intervention, and
15 (b) consists of a central processing unit containing
16 extensive storage, logic, arithmetic, and control
17 capabilities.
18 "Computer or peripheral equipment" means:
19 (a) any computer, and
20 (b) any related peripheral equipment, however
21 (c) the term "computer or peripheral equipment" does not
22 include:
23 (i) any equipment that is an integral part of other
24 property that is not a computer,
25 (ii) typewriters, calculators, adding and
26 accounting machines, copiers, duplicating equipment, and
27 similar equipment, and
28 (iii) equipment of a kind used primarily for
29 amusement or entertainment of the user.
30 "Department" means the Department of Revenue.
31 "High technology medical equipment" means any electronic,
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1 electromechanical, or computer-based high technology
2 equipment used in the screening, monitoring, observation,
3 diagnosis, or treatment of patients in a laboratory, medical,
4 or hospital environment.
5 "Person" means any natural individual, limited liability
6 company, firm, partnership, association, joint stock company,
7 joint venture, public or private corporation, or a receiver,
8 executor, trustee, conservator, or other representatives
9 appointed by order of any court.
10 "Leasing" means any transfer of the possession or right
11 to possession of qualified technological equipment to a user
12 for valuable consideration, for the purpose of use and not
13 for the purpose of re-lease or sublease.
14 "Lessor" means any person engaged in the business of
15 leasing qualified technological equipment to users. For this
16 purpose, the objective of making a profit is not necessary to
17 make the leasing activity a business.
18 "Lessee" means any user to whom the possession, or the
19 right to possession, of qualified technological equipment is
20 transferred for a valuable consideration that is paid by such
21 "lessee" or by someone else.
22 "Gross receipts" means the total leasing price for the
23 lease of qualified technological equipment. In the case of
24 lease transactions in which the consideration is paid to the
25 lessor on an installment basis, the amounts of such payments
26 shall be included by the lessor in gross receipts only as and
27 when payments are received by the lessor.
28 "Leasing price" means the consideration for leasing
29 qualified technological equipment valued in money, whether
30 received in money or otherwise, including cash, credits,
31 property, and services, and shall be determined without any
32 deduction on account of the cost of the property leased, the
33 cost of materials used, labor or service cost, or any other
34 expense whatsoever, but does not include charges that are
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1 added by lessors on account of the lessor's tax liability
2 under this Act, or on account of the lessor's duty to
3 collect, from the lessee, the tax that is imposed by Section
4 20 of this Act.
5 "Maintaining a place of business in this State" means
6 having or maintaining within this State, directly or by a
7 subsidiary, an office, repair facilities, distribution house,
8 sales house, warehouse, or other place of business, or any
9 agent, or other representative, operating within this State,
10 irrespective of whether the place of business or agent or
11 other representative is located here permanently or
12 temporarily.
13 "Qualified technological equipment" for purposes of this
14 Act means the following:
15 (a) any computer or peripheral equipment, provided that
16 computers owned by, used by, leased by, or leased to a
17 telecommunications company are not subject to this Act; and
18 (b) any high technology medical equipment.
19 "Related peripheral equipment" means any auxiliary
20 machine (whether on-line or off-line) that is designed to be
21 placed under the control of the central processing unit of a
22 computer.
23 "Telecommunications company" means any entity, whether a
24 corporation, limited liability company, or partnership, that
25 is treated as a telecommunications company by the Federal
26 Communications Commission and under this treatment is subject
27 to the jurisdiction of the Federal Communications Commission
28 under the federal Telecommunications Act of 1996, 47 U.S.C.
29 151 et seq.
30 Section 10. Imposition of occupation tax. Beginning with
31 leases for periods of one year or more entered into on and
32 after July 1, 1999, a tax is imposed upon persons engaged in
33 this State in the business of leasing qualified technological
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1 equipment in Illinois at the rate of 8.25% of the gross
2 receipts received from the business.
3 The Department shall have full power to administer and
4 enforce this Section, to collect all taxes and penalties due
5 hereunder, to dispose of taxes and penalties so collected in
6 the manner hereinafter provided, and to determine all rights
7 to credit memoranda, arising on account of the erroneous
8 payment of tax or penalty hereunder. In the administration
9 of, and compliance with, this Section, the Department and
10 persons who are subject to this Section shall have the same
11 rights, remedies, privileges, immunities, powers and duties,
12 and be subject to the same conditions, restrictions,
13 limitations, penalties, and definitions of terms, and employ
14 the same modes of procedure, as are prescribed in Sections 1,
15 la, 2 through 2-65 (except as to the rate of tax), 2a, 2b,
16 2c, 3 (except provisions relating to transaction returns and
17 quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
18 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
19 Retailers' Occupation Tax Act that are not inconsistent with
20 this Act and all Sections of the Uniform Penalty and Interest
21 Act as fully as if those provisions were set forth herein.
22 For purposes of this Section, references in such incorporated
23 Sections of the Retailers' Occupation Tax Act to retailers,
24 sellers, or persons engaged in the business of selling
25 tangible personal property means persons engaged in the
26 leasing of qualified technological equipment under leases
27 subject to this Act.
28 Each month the Department shall pay into the Local
29 Government Distributive Fund 20% of the net revenue realized
30 for the preceding month from the 8.25% tax imposed in this
31 Section. These amounts shall be distributed in the manner
32 provided in Section 2 of the State Revenue Sharing Act. The
33 remaining 80% of the revenue shall be paid as provided for in
34 Section 3 of the Retailers' Occupation Tax Act.
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1 Section 15. Registration. Every person engaged in this
2 State in the business of leasing qualified technological
3 equipment shall apply to the Department (upon a form
4 prescribed and furnished by the Department) for a certificate
5 of registration under this Act. The certificate of
6 registration that is issued by the Department to a retailer
7 under the Retailers' Occupation Tax Act shall permit the
8 lessor to engage in a business that is taxable under this
9 Section without registering separately with the Department.
10 Section 20. Imposition of use tax. Beginning with leases
11 for periods of one year or more entered into on and after
12 July 1, 1999, a tax is imposed upon the privilege of using in
13 this State qualified technological equipment that is leased
14 from a lessor. The tax is at the rate of 8.25% of the leasing
15 price of the qualified technological equipment paid to the
16 lessor under any lease agreement.
17 The Department shall have full power to administer and
18 enforce this Section; to collect all taxes, penalties, and
19 interest due hereunder; to dispose of taxes, penalties, and
20 interest so collected in the manner hereinafter provided; and
21 to determine all rights to credit memoranda or refunds
22 arising on account of the erroneous payment of tax, penalty,
23 or interest hereunder. In the administration of, and
24 compliance with, this Section, the Department and persons who
25 are subject to this Section shall have the same rights,
26 remedies, privileges, immunities, powers, and duties, and be
27 subject to the same conditions, restrictions, limitations,
28 penalties, and definitions of terms, and employ the same
29 modes of procedure, as are prescribed in Sections 2, 3
30 through 3-80 (except as to the rate of tax), 4, 6, 7, 8, 9
31 (except provisions relating to transaction returns and
32 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
33 19, 20, 21 and 22 of the Use Tax Act that are not
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1 inconsistent with this Act as fully as if those provisions
2 were set forth herein. For purposes of this Section,
3 references in such incorporated Sections of the Use Tax Act
4 to users or purchasers means lessees of qualified
5 technological equipment under leases subject to this Act.
6 Each month the Department shall pay into the Local
7 Government Distributive Fund 20% of the net revenue realized
8 for the preceding month from the 8.25% tax imposed in this
9 Section. These amounts shall be distributed in the manner
10 provided in Section 2 of the State Revenue Sharing Act. The
11 remaining 80% of the revenue shall be paid as provided for in
12 Section 9 of the Use Tax Act.
13 Section 25. Exemption due to prior taxation. The taxes
14 imposed under Sections 10 and 20 of this Act do not apply to
15 leases of qualified technological equipment as defined in
16 this Act if the lessor had properly paid, prior to July 1,
17 1999, Illinois use tax or service use tax to a retailer or
18 directly to the Department on the purchase or use of such
19 leased property.
20 Section 30. Use tax collected. The use tax imposed by
21 Section 20 shall be collected from the lessee and remitted to
22 the Department by a lessor maintaining a place of business in
23 this State.
24 The use tax imposed by Section 20 and not paid to a
25 lessor pursuant to the preceding paragraph of this Section
26 shall be paid to the Department directly by any person using
27 the leased qualified technological equipment within this
28 State.
29 Lessors shall collect the tax from lessees by adding the
30 tax to the leasing price of the qualified technological
31 equipment in the manner prescribed by the Department. The
32 Department shall have the power to adopt and promulgate
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1 reasonable rules and regulations for the adding of the tax by
2 lessors to leasing prices by prescribing bracket systems for
3 the purpose of enabling the lessors to add and collect, as
4 far as practicable, the amount of the tax.
5 The tax imposed by this Act shall, when collected, be
6 stated as a distinct item on the customer's bill, separate
7 and apart from the leasing price of the qualified
8 technological equipment.
9 Section 35. Severability clause. If any clause, sentence,
10 Section, provision, or part thereof of this Act or the
11 application thereof to any person or circumstance shall be
12 adjudged to be unconstitutional, the remainder of this Act or
13 its application to persons or circumstances other than those
14 to which it is held invalid, shall not be affected thereby.
15 In particular, if any provision that exempts or has the
16 effect of exempting some class of users or some kind of use
17 from the tax imposed by this Act should be held to constitute
18 or to result in an invalid classification or to be
19 unconstitutional for some other reason, that provision shall
20 be deemed to be severable, with the remainder of this Act
21 without the provision being held constitutional.
22 Section 105. The State Revenue Sharing Act is amended by
23 changing Section 1 as follows:
24 (30 ILCS 115/1) (from Ch. 85, par. 611)
25 Sec. 1. Local Government Distributive Fund. Through June
26 30, 1994, as soon as may be after the first day of each month
27 the Department of Revenue shall certify to the Treasurer an
28 amount equal to 1/12 of the net revenue realized from the tax
29 imposed by subsections (a) and (b) of Section 201 of the
30 Illinois Income Tax Act during the preceding month.
31 Beginning July 1, 1994, and continuing through June 30, 1995,
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1 as soon as may be after the first day of each month, the
2 Department of Revenue shall certify to the Treasurer an
3 amount equal to 1/11 of the net revenue realized from the tax
4 imposed by subsections (a) and (b) of Section 201 of the
5 Illinois Income Tax Act during the preceding month. Beginning
6 July 1, 1995, as soon as may be after the first day of each
7 month, the Department of Revenue shall certify to the
8 Treasurer an amount equal to 1/10 of the net revenue realized
9 from the tax imposed by subsections (a) and (b) of Section
10 201 of the Illinois Income Tax Act during the preceding
11 month. Net revenue realized for a month shall be defined as
12 the revenue from the tax imposed by subsections (a) and (b)
13 of Section 201 of the Illinois Income Tax Act which is
14 deposited in the General Revenue Fund, the Education
15 Assistance Fund and the Income Tax Surcharge Local Government
16 Distributive Fund during the month minus the amount paid out
17 of the General Revenue Fund in State warrants during that
18 same month as refunds to taxpayers for overpayment of
19 liability under the tax imposed by subsections (a) and (b) of
20 Section 201 of the Illinois Income Tax Act. In addition,
21 beginning July 1, 1999, as soon as may be after the first day
22 of each month, the Department shall certify to the Treasurer
23 an amount equal to 1/5 of the net revenue realized under the
24 Qualified Technological Equipment Leasing Occupation and Use
25 Tax Act. Upon receipt of such certification, the Treasurer
26 shall transfer from the General Revenue Fund to a special
27 fund in the State treasury, to be known as the "Local
28 Government Distributive Fund", the amount shown on such
29 certification.
30 All amounts paid into the Local Government Distributive
31 Fund in accordance with this Section and allocated pursuant
32 to this Act are appropriated on a continuing basis.
33 (Source: P.A. 88-89.)
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1 Section 110. The Use Tax Act is amended by changing
2 Sections 3-5 and 9 and adding Section 9.5 as follows:
3 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
4 Sec. 3-5. Exemptions. Use of the following tangible
5 personal property is exempt from the tax imposed by this Act:
6 (1) Personal property purchased from a corporation,
7 society, association, foundation, institution, or
8 organization, other than a limited liability company, that is
9 organized and operated as a not-for-profit service enterprise
10 for the benefit of persons 65 years of age or older if the
11 personal property was not purchased by the enterprise for the
12 purpose of resale by the enterprise.
13 (2) Personal property purchased by a not-for-profit
14 Illinois county fair association for use in conducting,
15 operating, or promoting the county fair.
16 (3) Personal property purchased by a not-for-profit
17 music or dramatic arts organization that establishes, by
18 proof required by the Department by rule, that it has
19 received an exemption under Section 501(c)(3) of the Internal
20 Revenue Code and that is organized and operated for the
21 presentation of live public performances of musical or
22 theatrical works on a regular basis.
23 (4) Personal property purchased by a governmental body,
24 by a corporation, society, association, foundation, or
25 institution organized and operated exclusively for
26 charitable, religious, or educational purposes, or by a
27 not-for-profit corporation, society, association, foundation,
28 institution, or organization that has no compensated officers
29 or employees and that is organized and operated primarily for
30 the recreation of persons 55 years of age or older. A limited
31 liability company may qualify for the exemption under this
32 paragraph only if the limited liability company is organized
33 and operated exclusively for educational purposes. On and
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1 after July 1, 1987, however, no entity otherwise eligible for
2 this exemption shall make tax-free purchases unless it has an
3 active exemption identification number issued by the
4 Department.
5 (5) A passenger car that is a replacement vehicle to the
6 extent that the purchase price of the car is subject to the
7 Replacement Vehicle Tax.
8 (6) Graphic arts machinery and equipment, including
9 repair and replacement parts, both new and used, and
10 including that manufactured on special order, certified by
11 the purchaser to be used primarily for graphic arts
12 production, and including machinery and equipment purchased
13 for lease.
14 (7) Farm chemicals.
15 (8) Legal tender, currency, medallions, or gold or
16 silver coinage issued by the State of Illinois, the
17 government of the United States of America, or the government
18 of any foreign country, and bullion.
19 (9) Personal property purchased from a teacher-sponsored
20 student organization affiliated with an elementary or
21 secondary school located in Illinois.
22 (10) A motor vehicle of the first division, a motor
23 vehicle of the second division that is a self-contained motor
24 vehicle designed or permanently converted to provide living
25 quarters for recreational, camping, or travel use, with
26 direct walk through to the living quarters from the driver's
27 seat, or a motor vehicle of the second division that is of
28 the van configuration designed for the transportation of not
29 less than 7 nor more than 16 passengers, as defined in
30 Section 1-146 of the Illinois Vehicle Code, that is used for
31 automobile renting, as defined in the Automobile Renting
32 Occupation and Use Tax Act.
33 (11) Farm machinery and equipment, both new and used,
34 including that manufactured on special order, certified by
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1 the purchaser to be used primarily for production agriculture
2 or State or federal agricultural programs, including
3 individual replacement parts for the machinery and equipment,
4 including machinery and equipment purchased for lease, and
5 including implements of husbandry defined in Section 1-130 of
6 the Illinois Vehicle Code, farm machinery and agricultural
7 chemical and fertilizer spreaders, and nurse wagons required
8 to be registered under Section 3-809 of the Illinois Vehicle
9 Code, but excluding other motor vehicles required to be
10 registered under the Illinois Vehicle Code. Horticultural
11 polyhouses or hoop houses used for propagating, growing, or
12 overwintering plants shall be considered farm machinery and
13 equipment under this item (11). Agricultural chemical tender
14 tanks and dry boxes shall include units sold separately from
15 a motor vehicle required to be licensed and units sold
16 mounted on a motor vehicle required to be licensed if the
17 selling price of the tender is separately stated.
18 Farm machinery and equipment shall include precision
19 farming equipment that is installed or purchased to be
20 installed on farm machinery and equipment including, but not
21 limited to, tractors, harvesters, sprayers, planters,
22 seeders, or spreaders. Precision farming equipment includes,
23 but is not limited to, soil testing sensors, computers,
24 monitors, software, global positioning and mapping systems,
25 and other such equipment.
26 Farm machinery and equipment also includes computers,
27 sensors, software, and related equipment used primarily in
28 the computer-assisted operation of production agriculture
29 facilities, equipment, and activities such as, but not
30 limited to, the collection, monitoring, and correlation of
31 animal and crop data for the purpose of formulating animal
32 diets and agricultural chemicals. This item (11) is exempt
33 from the provisions of Section 3-90.
34 (12) Fuel and petroleum products sold to or used by an
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1 air common carrier, certified by the carrier to be used for
2 consumption, shipment, or storage in the conduct of its
3 business as an air common carrier, for a flight destined for
4 or returning from a location or locations outside the United
5 States without regard to previous or subsequent domestic
6 stopovers.
7 (13) Proceeds of mandatory service charges separately
8 stated on customers' bills for the purchase and consumption
9 of food and beverages purchased at retail from a retailer, to
10 the extent that the proceeds of the service charge are in
11 fact turned over as tips or as a substitute for tips to the
12 employees who participate directly in preparing, serving,
13 hosting or cleaning up the food or beverage function with
14 respect to which the service charge is imposed.
15 (14) Oil field exploration, drilling, and production
16 equipment, including (i) rigs and parts of rigs, rotary rigs,
17 cable tool rigs, and workover rigs, (ii) pipe and tubular
18 goods, including casing and drill strings, (iii) pumps and
19 pump-jack units, (iv) storage tanks and flow lines, (v) any
20 individual replacement part for oil field exploration,
21 drilling, and production equipment, and (vi) machinery and
22 equipment purchased for lease; but excluding motor vehicles
23 required to be registered under the Illinois Vehicle Code.
24 (15) Photoprocessing machinery and equipment, including
25 repair and replacement parts, both new and used, including
26 that manufactured on special order, certified by the
27 purchaser to be used primarily for photoprocessing, and
28 including photoprocessing machinery and equipment purchased
29 for lease.
30 (16) Coal exploration, mining, offhighway hauling,
31 processing, maintenance, and reclamation equipment, including
32 replacement parts and equipment, and including equipment
33 purchased for lease, but excluding motor vehicles required to
34 be registered under the Illinois Vehicle Code.
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1 (17) Distillation machinery and equipment, sold as a
2 unit or kit, assembled or installed by the retailer,
3 certified by the user to be used only for the production of
4 ethyl alcohol that will be used for consumption as motor fuel
5 or as a component of motor fuel for the personal use of the
6 user, and not subject to sale or resale.
7 (18) Manufacturing and assembling machinery and
8 equipment used primarily in the process of manufacturing or
9 assembling tangible personal property for wholesale or retail
10 sale or lease, whether that sale or lease is made directly by
11 the manufacturer or by some other person, whether the
12 materials used in the process are owned by the manufacturer
13 or some other person, or whether that sale or lease is made
14 apart from or as an incident to the seller's engaging in the
15 service occupation of producing machines, tools, dies, jigs,
16 patterns, gauges, or other similar items of no commercial
17 value on special order for a particular purchaser.
18 (19) Personal property delivered to a purchaser or
19 purchaser's donee inside Illinois when the purchase order for
20 that personal property was received by a florist located
21 outside Illinois who has a florist located inside Illinois
22 deliver the personal property.
23 (20) Semen used for artificial insemination of livestock
24 for direct agricultural production.
25 (21) Horses, or interests in horses, registered with and
26 meeting the requirements of any of the Arabian Horse Club
27 Registry of America, Appaloosa Horse Club, American Quarter
28 Horse Association, United States Trotting Association, or
29 Jockey Club, as appropriate, used for purposes of breeding or
30 racing for prizes.
31 (22) Computers and communications equipment utilized for
32 any hospital purpose and equipment used in the diagnosis,
33 analysis, or treatment of hospital patients purchased by a
34 lessor who leases the equipment, under a lease of one year or
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1 longer executed or in effect at the time the lessor would
2 otherwise be subject to the tax imposed by this Act, to a
3 hospital that has been issued an active tax exemption
4 identification number by the Department under Section 1g of
5 the Retailers' Occupation Tax Act. If the equipment is
6 leased in a manner that does not qualify for this exemption
7 or is used in any other non-exempt manner, the lessor shall
8 be liable for the tax imposed under this Act or the Service
9 Use Tax Act, as the case may be, based on the fair market
10 value of the property at the time the non-qualifying use
11 occurs. No lessor shall collect or attempt to collect an
12 amount (however designated) that purports to reimburse that
13 lessor for the tax imposed by this Act or the Service Use Tax
14 Act, as the case may be, if the tax has not been paid by the
15 lessor. If a lessor improperly collects any such amount from
16 the lessee, the lessee shall have a legal right to claim a
17 refund of that amount from the lessor. If, however, that
18 amount is not refunded to the lessee for any reason, the
19 lessor is liable to pay that amount to the Department. This
20 paragraph is exempt from the provisions of Section 3-90.
21 (23) Personal property purchased by a lessor who leases
22 the property, under a lease of one year or longer executed
23 or in effect at the time the lessor would otherwise be
24 subject to the tax imposed by this Act, to a governmental
25 body that has been issued an active sales tax exemption
26 identification number by the Department under Section 1g of
27 the Retailers' Occupation Tax Act. If the property is leased
28 in a manner that does not qualify for this exemption or used
29 in any other non-exempt manner, the lessor shall be liable
30 for the tax imposed under this Act or the Service Use Tax
31 Act, as the case may be, based on the fair market value of
32 the property at the time the non-qualifying use occurs. No
33 lessor shall collect or attempt to collect an amount (however
34 designated) that purports to reimburse that lessor for the
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1 tax imposed by this Act or the Service Use Tax Act, as the
2 case may be, if the tax has not been paid by the lessor. If
3 a lessor improperly collects any such amount from the lessee,
4 the lessee shall have a legal right to claim a refund of that
5 amount from the lessor. If, however, that amount is not
6 refunded to the lessee for any reason, the lessor is liable
7 to pay that amount to the Department. This paragraph is
8 exempt from the provisions of Section 3-90.
9 (24) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is donated
12 for disaster relief to be used in a State or federally
13 declared disaster area in Illinois or bordering Illinois by a
14 manufacturer or retailer that is registered in this State to
15 a corporation, society, association, foundation, or
16 institution that has been issued a sales tax exemption
17 identification number by the Department that assists victims
18 of the disaster who reside within the declared disaster area.
19 (25) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on or
21 before December 31, 2004, personal property that is used in
22 the performance of infrastructure repairs in this State,
23 including but not limited to municipal roads and streets,
24 access roads, bridges, sidewalks, waste disposal systems,
25 water and sewer line extensions, water distribution and
26 purification facilities, storm water drainage and retention
27 facilities, and sewage treatment facilities, resulting from a
28 State or federally declared disaster in Illinois or bordering
29 Illinois when such repairs are initiated on facilities
30 located in the declared disaster area within 6 months after
31 the disaster.
32 (26) Beginning July 1, 1999, qualified technological
33 equipment purchased for lease by lessors under leases subject
34 to the Qualified Technological Equipment Leasing Occupation
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1 and Use Tax Act. However, this exemption will last only as
2 long as the property continues to be leased by the lessor.
3 When the property is no longer used for lease and the
4 property reverts to the lessor, the property is subject to
5 the tax imposed by this Act upon the fair market value of the
6 property on the date of the reversion. The property will not
7 be considered to revert to the lessor as long as the lessor
8 holds the property in his or her lease inventory and does not
9 otherwise use the property, except for demonstration
10 purposes. In addition, property held in the lessor's lease
11 inventory that is subsequently leased for a period of less
12 than one year will not be considered to revert to the lessor
13 if the property is returned to lease inventory at the
14 termination of the lease. This paragraph is exempt from the
15 provisions of Section 3-90.
16 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
17 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
18 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
19 eff. 12-12-97; 90-605, eff. 6-30-98.)
20 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
21 Sec. 9. Except as to motor vehicles, watercraft,
22 aircraft, and trailers that are required to be registered
23 with an agency of this State, each retailer required or
24 authorized to collect the tax imposed by this Act shall pay
25 to the Department the amount of such tax (except as otherwise
26 provided) at the time when he is required to file his return
27 for the period during which such tax was collected, less a
28 discount of 2.1% prior to January 1, 1990, and 1.75% on and
29 after January 1, 1990, or $5 per calendar year, whichever is
30 greater, which is allowed to reimburse the retailer for
31 expenses incurred in collecting the tax, keeping records,
32 preparing and filing returns, remitting the tax and supplying
33 data to the Department on request. In the case of retailers
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1 who report and pay the tax on a transaction by transaction
2 basis, as provided in this Section, such discount shall be
3 taken with each such tax remittance instead of when such
4 retailer files his periodic return. A retailer need not
5 remit that part of any tax collected by him to the extent
6 that he is required to remit and does remit the tax imposed
7 by the Retailers' Occupation Tax Act, with respect to the
8 sale of the same property.
9 Where such tangible personal property is sold under a
10 conditional sales contract, or under any other form of sale
11 wherein the payment of the principal sum, or a part thereof,
12 is extended beyond the close of the period for which the
13 return is filed, the retailer, in collecting the tax (except
14 as to motor vehicles, watercraft, aircraft, and trailers that
15 are required to be registered with an agency of this State),
16 may collect for each tax return period, only the tax
17 applicable to that part of the selling price actually
18 received during such tax return period.
19 Except as provided in this Section, on or before the
20 twentieth day of each calendar month, such retailer shall
21 file a return for the preceding calendar month. Such return
22 shall be filed on forms prescribed by the Department and
23 shall furnish such information as the Department may
24 reasonably require.
25 The Department may require returns to be filed on a
26 quarterly basis. If so required, a return for each calendar
27 quarter shall be filed on or before the twentieth day of the
28 calendar month following the end of such calendar quarter.
29 The taxpayer shall also file a return with the Department for
30 each of the first two months of each calendar quarter, on or
31 before the twentieth day of the following calendar month,
32 stating:
33 1. The name of the seller;
34 2. The address of the principal place of business
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1 from which he engages in the business of selling tangible
2 personal property at retail in this State;
3 3. The total amount of taxable receipts received by
4 him during the preceding calendar month from sales of
5 tangible personal property by him during such preceding
6 calendar month, including receipts from charge and time
7 sales, but less all deductions allowed by law;
8 4. The amount of credit provided in Section 2d of
9 this Act;
10 5. The amount of tax due;
11 5-5. The signature of the taxpayer; and
12 6. Such other reasonable information as the
13 Department may require.
14 If a taxpayer fails to sign a return within 30 days after
15 the proper notice and demand for signature by the Department,
16 the return shall be considered valid and any amount shown to
17 be due on the return shall be deemed assessed.
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 has
22 an average monthly tax liability of $100,000 or more shall
23 make all payments required by rules of the Department by
24 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" means 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 required
2 to make payments by electronic funds transfer shall make
3 those payments for a minimum of one year beginning on October
4 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 If the taxpayer's average monthly tax liability to the
16 Department under this Act, the Retailers' Occupation Tax Act,
17 the Service Occupation Tax Act, the Service Use Tax Act was
18 $10,000 or more during the preceding 4 complete calendar
19 quarters, he shall file a return with the Department each
20 month by the 20th day of the month next following the month
21 during which such tax liability is incurred and shall make
22 payments to the Department on or before the 7th, 15th, 22nd
23 and last day of the month during which such liability is
24 incurred. If the month during which such tax liability is
25 incurred began prior to January 1, 1985, each payment shall
26 be in an amount equal to 1/4 of the taxpayer's actual
27 liability for the month or an amount set by the Department
28 not to exceed 1/4 of the average monthly liability of the
29 taxpayer to the Department for the preceding 4 complete
30 calendar quarters (excluding the month of highest liability
31 and the month of lowest liability in such 4 quarter period).
32 If the month during which such tax liability is incurred
33 begins on or after January 1, 1985, and prior to January 1,
34 1987, each payment shall be in an amount equal to 22.5% of
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1 the taxpayer's actual liability for the month or 27.5% of the
2 taxpayer's liability for the same calendar month of the
3 preceding year. If the month during which such tax liability
4 is incurred begins on or after January 1, 1987, and prior to
5 January 1, 1988, each payment shall be in an amount equal to
6 22.5% of the taxpayer's actual liability for the month or
7 26.25% of the taxpayer's liability for the same calendar
8 month of the preceding year. If the month during which such
9 tax liability is incurred begins on or after January 1, 1988,
10 and prior to January 1, 1989, or begins on or after January
11 1, 1996, each payment shall be in an amount equal to 22.5% of
12 the taxpayer's actual liability for the month or 25% of the
13 taxpayer's liability for the same calendar month of the
14 preceding year. If the month during which such tax liability
15 is incurred begins on or after January 1, 1989, and prior to
16 January 1, 1996, each payment shall be in an amount equal to
17 22.5% of the taxpayer's actual liability for the month or 25%
18 of the taxpayer's liability for the same calendar month of
19 the preceding year or 100% of the taxpayer's actual liability
20 for the quarter monthly reporting period. The amount of such
21 quarter monthly payments shall be credited against the final
22 tax liability of the taxpayer's return for that month. Once
23 applicable, the requirement of the making of quarter monthly
24 payments to the Department shall continue until such
25 taxpayer's average monthly liability to the Department during
26 the preceding 4 complete calendar quarters (excluding the
27 month of highest liability and the month of lowest liability)
28 is less than $9,000, or until such taxpayer's average monthly
29 liability to the Department as computed for each calendar
30 quarter of the 4 preceding complete calendar quarter period
31 is less than $10,000. However, if a taxpayer can show the
32 Department that a substantial change in the taxpayer's
33 business has occurred which causes the taxpayer to anticipate
34 that his average monthly tax liability for the reasonably
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1 foreseeable future will fall below $10,000, then such
2 taxpayer may petition the Department for change in such
3 taxpayer's reporting status. The Department shall change
4 such taxpayer's reporting status unless it finds that such
5 change is seasonal in nature and not likely to be long term.
6 If any such quarter monthly payment is not paid at the time
7 or in the amount required by this Section, then the taxpayer
8 shall be liable for penalties and interest on the difference
9 between the minimum amount due and the amount of such quarter
10 monthly payment actually and timely paid, except insofar as
11 the taxpayer has previously made payments for that month to
12 the Department in excess of the minimum payments previously
13 due as provided in this Section. The Department shall make
14 reasonable rules and regulations to govern the quarter
15 monthly payment amount and quarter monthly payment dates for
16 taxpayers who file on other than a calendar monthly basis.
17 If any such payment provided for in this Section exceeds
18 the taxpayer's liabilities under this Act, the Retailers'
19 Occupation Tax Act, the Service Occupation Tax Act and the
20 Service Use Tax Act, as shown by an original monthly return,
21 the Department shall issue to the taxpayer a credit
22 memorandum no later than 30 days after the date of payment,
23 which memorandum may be submitted by the taxpayer to the
24 Department in payment of tax liability subsequently to be
25 remitted by the taxpayer to the Department or be assigned by
26 the taxpayer to a similar taxpayer under this Act, the
27 Retailers' Occupation Tax Act, the Service Occupation Tax Act
28 or the Service Use Tax Act, in accordance with reasonable
29 rules and regulations to be prescribed by the Department,
30 except that if such excess payment is shown on an original
31 monthly return and is made after December 31, 1986, no credit
32 memorandum shall be issued, unless requested by the taxpayer.
33 If no such request is made, the taxpayer may credit such
34 excess payment against tax liability subsequently to be
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1 remitted by the taxpayer to the Department under this Act,
2 the Retailers' Occupation Tax Act, the Service Occupation Tax
3 Act or the Service Use Tax Act, in accordance with reasonable
4 rules and regulations prescribed by the Department. If the
5 Department subsequently determines that all or any part of
6 the credit taken was not actually due to the taxpayer, the
7 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
8 by 2.1% or 1.75% of the difference between the credit taken
9 and that actually due, and the taxpayer shall be liable for
10 penalties and interest on such difference.
11 If the retailer is otherwise required to file a monthly
12 return and if the retailer's average monthly tax liability to
13 the Department does not exceed $200, the Department may
14 authorize his returns to be filed on a quarter annual basis,
15 with the return for January, February, and March of a given
16 year being due by April 20 of such year; with the return for
17 April, May and June of a given year being due by July 20 of
18 such year; with the return for July, August and September of
19 a given year being due by October 20 of such year, and with
20 the return for October, November and December of a given year
21 being due by January 20 of the following year.
22 If the retailer is otherwise required to file a monthly
23 or quarterly return and if the retailer's average monthly tax
24 liability to the Department does not exceed $50, the
25 Department may authorize his returns to be filed on an annual
26 basis, with the return for a given year being due by January
27 20 of the following year.
28 Such quarter annual and annual returns, as to form and
29 substance, shall be subject to the same requirements as
30 monthly returns.
31 Notwithstanding any other provision in this Act
32 concerning the time within which a retailer may file his
33 return, in the case of any retailer who ceases to engage in a
34 kind of business which makes him responsible for filing
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1 returns under this Act, such retailer shall file a final
2 return under this Act with the Department not more than one
3 month after discontinuing such business.
4 In addition, with respect to motor vehicles, watercraft,
5 aircraft, and trailers that are required to be registered
6 with an agency of this State, every retailer selling this
7 kind of tangible personal property shall file, with the
8 Department, upon a form to be prescribed and supplied by the
9 Department, a separate return for each such item of tangible
10 personal property which the retailer sells, except that
11 where, in the same transaction, a retailer of aircraft,
12 watercraft, motor vehicles or trailers transfers more than
13 one aircraft, watercraft, motor vehicle or trailer to another
14 aircraft, watercraft, motor vehicle or trailer retailer for
15 the purpose of resale, that seller for resale may report the
16 transfer of all the aircraft, watercraft, motor vehicles or
17 trailers involved in that transaction to the Department on
18 the same uniform invoice-transaction reporting return form.
19 For purposes of this Section, "watercraft" means a Class 2,
20 Class 3, or Class 4 watercraft as defined in Section 3-2 of
21 the Boat Registration and Safety Act, a personal watercraft,
22 or any boat equipped with an inboard motor.
23 The transaction reporting return in the case of motor
24 vehicles or trailers that are required to be registered with
25 an agency of this State, shall be the same document as the
26 Uniform Invoice referred to in Section 5-402 of the Illinois
27 Vehicle Code and must show the name and address of the
28 seller; the name and address of the purchaser; the amount of
29 the selling price including the amount allowed by the
30 retailer for traded-in property, if any; the amount allowed
31 by the retailer for the traded-in tangible personal property,
32 if any, to the extent to which Section 2 of this Act allows
33 an exemption for the value of traded-in property; the balance
34 payable after deducting such trade-in allowance from the
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1 total selling price; the amount of tax due from the retailer
2 with respect to such transaction; the amount of tax collected
3 from the purchaser by the retailer on such transaction (or
4 satisfactory evidence that such tax is not due in that
5 particular instance, if that is claimed to be the fact); the
6 place and date of the sale; a sufficient identification of
7 the property sold; such other information as is required in
8 Section 5-402 of the Illinois Vehicle Code, and such other
9 information as the Department may reasonably require.
10 The transaction reporting return in the case of
11 watercraft and aircraft must show the name and address of the
12 seller; the name and address of the purchaser; the amount of
13 the selling price including the amount allowed by the
14 retailer for traded-in property, if any; the amount allowed
15 by the retailer for the traded-in tangible personal property,
16 if any, to the extent to which Section 2 of this Act allows
17 an exemption for the value of traded-in property; the balance
18 payable after deducting such trade-in allowance from the
19 total selling price; the amount of tax due from the retailer
20 with respect to such transaction; the amount of tax collected
21 from the purchaser by the retailer on such transaction (or
22 satisfactory evidence that such tax is not due in that
23 particular instance, if that is claimed to be the fact); the
24 place and date of the sale, a sufficient identification of
25 the property sold, and such other information as the
26 Department may reasonably require.
27 Such transaction reporting return shall be filed not
28 later than 20 days after the date of delivery of the item
29 that is being sold, but may be filed by the retailer at any
30 time sooner than that if he chooses to do so. The
31 transaction reporting return and tax remittance or proof of
32 exemption from the tax that is imposed by this Act may be
33 transmitted to the Department by way of the State agency with
34 which, or State officer with whom, the tangible personal
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1 property must be titled or registered (if titling or
2 registration is required) if the Department and such agency
3 or State officer determine that this procedure will expedite
4 the processing of applications for title or registration.
5 With each such transaction reporting return, the retailer
6 shall remit the proper amount of tax due (or shall submit
7 satisfactory evidence that the sale is not taxable if that is
8 the case), to the Department or its agents, whereupon the
9 Department shall issue, in the purchaser's name, a tax
10 receipt (or a certificate of exemption if the Department is
11 satisfied that the particular sale is tax exempt) which such
12 purchaser may submit to the agency with which, or State
13 officer with whom, he must title or register the tangible
14 personal property that is involved (if titling or
15 registration is required) in support of such purchaser's
16 application for an Illinois certificate or other evidence of
17 title or registration to such tangible personal property.
18 No retailer's failure or refusal to remit tax under this
19 Act precludes a user, who has paid the proper tax to the
20 retailer, from obtaining his certificate of title or other
21 evidence of title or registration (if titling or registration
22 is required) upon satisfying the Department that such user
23 has paid the proper tax (if tax is due) to the retailer. The
24 Department shall adopt appropriate rules to carry out the
25 mandate of this paragraph.
26 If the user who would otherwise pay tax to the retailer
27 wants the transaction reporting return filed and the payment
28 of tax or proof of exemption made to the Department before
29 the retailer is willing to take these actions and such user
30 has not paid the tax to the retailer, such user may certify
31 to the fact of such delay by the retailer, and may (upon the
32 Department being satisfied of the truth of such
33 certification) transmit the information required by the
34 transaction reporting return and the remittance for tax or
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1 proof of exemption directly to the Department and obtain his
2 tax receipt or exemption determination, in which event the
3 transaction reporting return and tax remittance (if a tax
4 payment was required) shall be credited by the Department to
5 the proper retailer's account with the Department, but
6 without the 2.1% or 1.75% discount provided for in this
7 Section being allowed. When the user pays the tax directly
8 to the Department, he shall pay the tax in the same amount
9 and in the same form in which it would be remitted if the tax
10 had been remitted to the Department by the retailer.
11 Where a retailer collects the tax with respect to the
12 selling price of tangible personal property which he sells
13 and the purchaser thereafter returns such tangible personal
14 property and the retailer refunds the selling price thereof
15 to the purchaser, such retailer shall also refund, to the
16 purchaser, the tax so collected from the purchaser. When
17 filing his return for the period in which he refunds such tax
18 to the purchaser, the retailer may deduct the amount of the
19 tax so refunded by him to the purchaser from any other use
20 tax which such retailer may be required to pay or remit to
21 the Department, as shown by such return, if the amount of the
22 tax to be deducted was previously remitted to the Department
23 by such retailer. If the retailer has not previously
24 remitted the amount of such tax to the Department, he is
25 entitled to no deduction under this Act upon refunding such
26 tax to the purchaser.
27 Any retailer filing a return under this Section shall
28 also include (for the purpose of paying tax thereon) the
29 total tax covered by such return upon the selling price of
30 tangible personal property purchased by him at retail from a
31 retailer, but as to which the tax imposed by this Act was not
32 collected from the retailer filing such return, and such
33 retailer shall remit the amount of such tax to the Department
34 when filing such return.
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1 If experience indicates such action to be practicable,
2 the Department may prescribe and furnish a combination or
3 joint return which will enable retailers, who are required to
4 file returns hereunder and also under the Retailers'
5 Occupation Tax Act, to furnish all the return information
6 required by both Acts on the one form.
7 Where the retailer has more than one business registered
8 with the Department under separate registration under this
9 Act, such retailer may not file each return that is due as a
10 single return covering all such registered businesses, but
11 shall file separate returns for each such registered
12 business.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the State and Local Sales Tax Reform Fund, a
15 special fund in the State Treasury which is hereby created,
16 the net revenue realized for the preceding month from the 1%
17 tax on sales of food for human consumption which is to be
18 consumed off the premises where it is sold (other than
19 alcoholic beverages, soft drinks and food which has been
20 prepared for immediate consumption) and prescription and
21 nonprescription medicines, drugs, medical appliances and
22 insulin, urine testing materials, syringes and needles used
23 by diabetics.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the County and Mass Transit District Fund 4%
26 of the net revenue realized for the preceding month from the
27 6.25% general rate on the selling price of tangible personal
28 property which is purchased outside Illinois at retail from a
29 retailer and which is titled or registered by an agency of
30 this State's government.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the State and Local Sales Tax Reform Fund, a
33 special fund in the State Treasury, 20% of the net revenue
34 realized for the preceding month from the 6.25% general rate
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1 on the selling price of tangible personal property, other
2 than tangible personal property which is purchased outside
3 Illinois at retail from a retailer and which is titled or
4 registered by an agency of this State's government.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the Local Government Tax Fund 16% of the net
7 revenue realized for the preceding month from the 6.25%
8 general rate on the selling price of tangible personal
9 property which is purchased outside Illinois at retail from a
10 retailer and which is titled or registered by an agency of
11 this State's government.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act, (a) 1.75% thereof shall be paid into
14 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
15 and on and after July 1, 1989, 3.8% thereof shall be paid
16 into the Build Illinois Fund; provided, however, that if in
17 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
18 as the case may be, of the moneys received by the Department
19 and required to be paid into the Build Illinois Fund pursuant
20 to Section 3 of the Retailers' Occupation Tax Act, Section 9
21 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
22 Section 9 of the Service Occupation Tax Act, such Acts being
23 hereinafter called the "Tax Acts" and such aggregate of 2.2%
24 or 3.8%, as the case may be, of moneys being hereinafter
25 called the "Tax Act Amount", and (2) the amount transferred
26 to the Build Illinois Fund from the State and Local Sales Tax
27 Reform Fund shall be less than the Annual Specified Amount
28 (as defined in Section 3 of the Retailers' Occupation Tax
29 Act), an amount equal to the difference shall be immediately
30 paid into the Build Illinois Fund from other moneys received
31 by the Department pursuant to the Tax Acts; and further
32 provided, that if on the last business day of any month the
33 sum of (1) the Tax Act Amount required to be deposited into
34 the Build Illinois Bond Account in the Build Illinois Fund
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1 during such month and (2) the amount transferred during such
2 month to the Build Illinois Fund from the State and Local
3 Sales Tax Reform Fund shall have been less than 1/12 of the
4 Annual Specified Amount, an amount equal to the difference
5 shall be immediately paid into the Build Illinois Fund from
6 other moneys received by the Department pursuant to the Tax
7 Acts; and, further provided, that in no event shall the
8 payments required under the preceding proviso result in
9 aggregate payments into the Build Illinois Fund pursuant to
10 this clause (b) for any fiscal year in excess of the greater
11 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
12 for such fiscal year; and, further provided, that the amounts
13 payable into the Build Illinois Fund under this clause (b)
14 shall be payable only until such time as the aggregate amount
15 on deposit under each trust indenture securing Bonds issued
16 and outstanding pursuant to the Build Illinois Bond Act is
17 sufficient, taking into account any future investment income,
18 to fully provide, in accordance with such indenture, for the
19 defeasance of or the payment of the principal of, premium, if
20 any, and interest on the Bonds secured by such indenture and
21 on any Bonds expected to be issued thereafter and all fees
22 and costs payable with respect thereto, all as certified by
23 the Director of the Bureau of the Budget. If on the last
24 business day of any month in which Bonds are outstanding
25 pursuant to the Build Illinois Bond Act, the aggregate of the
26 moneys deposited in the Build Illinois Bond Account in the
27 Build Illinois Fund in such month shall be less than the
28 amount required to be transferred in such month from the
29 Build Illinois Bond Account to the Build Illinois Bond
30 Retirement and Interest Fund pursuant to Section 13 of the
31 Build Illinois Bond Act, an amount equal to such deficiency
32 shall be immediately paid from other moneys received by the
33 Department pursuant to the Tax Acts to the Build Illinois
34 Fund; provided, however, that any amounts paid to the Build
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1 Illinois Fund in any fiscal year pursuant to this sentence
2 shall be deemed to constitute payments pursuant to clause (b)
3 of the preceding sentence and shall reduce the amount
4 otherwise payable for such fiscal year pursuant to clause (b)
5 of the preceding sentence. The moneys received by the
6 Department pursuant to this Act and required to be deposited
7 into the Build Illinois Fund are subject to the pledge, claim
8 and charge set forth in Section 12 of the Build Illinois Bond
9 Act.
10 Subject to payment of amounts into the Build Illinois
11 Fund as provided in the preceding paragraph or in any
12 amendment thereto hereafter enacted, the following specified
13 monthly installment of the amount requested in the
14 certificate of the Chairman of the Metropolitan Pier and
15 Exposition Authority provided under Section 8.25f of the
16 State Finance Act, but not in excess of the sums designated
17 as "Total Deposit", shall be deposited in the aggregate from
18 collections under Section 9 of the Use Tax Act, Section 9 of
19 the Service Use Tax Act, Section 9 of the Service Occupation
20 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
21 into the McCormick Place Expansion Project Fund in the
22 specified fiscal years.
23 Fiscal Year Total Deposit
24 1993 $0
25 1994 53,000,000
26 1995 58,000,000
27 1996 61,000,000
28 1997 64,000,000
29 1998 68,000,000
30 1999 71,000,000
31 2000 75,000,000
32 2001 80,000,000
33 2002 84,000,000
34 2003 89,000,000
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1 2004 93,000,000
2 2005 97,000,000
3 2006 102,000,000
4 2007 and 106,000,000
5 each fiscal year
6 thereafter that bonds
7 are outstanding under
8 Section 13.2 of the
9 Metropolitan Pier and
10 Exposition Authority
11 Act, but not after fiscal year 2029.
12 Beginning July 20, 1993 and in each month of each fiscal
13 year thereafter, one-eighth of the amount requested in the
14 certificate of the Chairman of the Metropolitan Pier and
15 Exposition Authority for that fiscal year, less the amount
16 deposited into the McCormick Place Expansion Project Fund by
17 the State Treasurer in the respective month under subsection
18 (g) of Section 13 of the Metropolitan Pier and Exposition
19 Authority Act, plus cumulative deficiencies in the deposits
20 required under this Section for previous months and years,
21 shall be deposited into the McCormick Place Expansion Project
22 Fund, until the full amount requested for the fiscal year,
23 but not in excess of the amount specified above as "Total
24 Deposit", has been deposited.
25 Subject to payment of amounts into the Build Illinois
26 Fund and the McCormick Place Expansion Project Fund pursuant
27 to the preceding paragraphs or in any amendment thereto
28 hereafter enacted, each month the Department shall pay into
29 the Local Government Distributive Fund .4% of the net revenue
30 realized for the preceding month from the 5% general rate, or
31 .4% of 80% of the net revenue realized for the preceding
32 month from the 6.25% general rate, as the case may be, on the
33 selling price of tangible personal property which amount
34 shall, subject to appropriation, be distributed as provided
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1 in Section 2 of the State Revenue Sharing Act. No payments or
2 distributions pursuant to this paragraph shall be made if the
3 tax imposed by this Act on photoprocessing products is
4 declared unconstitutional, or if the proceeds from such tax
5 are unavailable for distribution because of litigation.
6 Subject to payment of amounts into the Build Illinois
7 Fund, the McCormick Place Expansion Project Fund, and the
8 Local Government Distributive Fund pursuant to the preceding
9 paragraphs or in any amendments thereto hereafter enacted,
10 beginning July 1, 1993, the Department shall each month pay
11 into the Illinois Tax Increment Fund 0.27% of 80% of the net
12 revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property.
15 Of the remainder of the moneys received by the Department
16 pursuant to this Act and the moneys received by the
17 Department from the 80% of the 8.25% rate of use tax imposed
18 in Section 20 of the Qualified Technological Equipment
19 Leasing Occupation and Use Tax Act, 75% thereof shall be paid
20 into the State Treasury and 25% shall be reserved in a
21 special account and used only for the transfer to the Common
22 School Fund as part of the monthly transfer from the General
23 Revenue Fund in accordance with Section 8a of the State
24 Finance Act.
25 As soon as possible after the first day of each month,
26 upon certification of the Department of Revenue, the
27 Comptroller shall order transferred and the Treasurer shall
28 transfer from the General Revenue Fund to the Motor Fuel Tax
29 Fund an amount equal to 1.7% of 80% of the net revenue
30 realized under this Act for the second preceding month;
31 except that this transfer shall not be made for the months
32 February through June of 1992.
33 Net revenue realized for a month shall be the revenue
34 collected by the State pursuant to this Act, less the amount
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1 paid out during that month as refunds to taxpayers for
2 overpayment of liability.
3 For greater simplicity of administration, manufacturers,
4 importers and wholesalers whose products are sold at retail
5 in Illinois by numerous retailers, and who wish to do so, may
6 assume the responsibility for accounting and paying to the
7 Department all tax accruing under this Act with respect to
8 such sales, if the retailers who are affected do not make
9 written objection to the Department to this arrangement.
10 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
11 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
12 (35 ILCS 105/9.5 new)
13 Sec. 9.5. Refund; leaseback transaction. A purchaser of
14 qualified technological equipment, as defined in Section 5 of
15 the Qualified Technological Equipment Leasing Occupation and
16 Use Tax Act, may obtain a refund of all tax paid to a seller
17 under this Act or any other tax administered by the
18 Department if the purchaser sells the property to a rentor
19 under a bona fide sale and leaseback transaction (to such
20 purchaser) within 90 days of the first functional use of the
21 property. The purchaser shall request the refund from the
22 seller to whom he or she has paid the tax in the same manner
23 and subject to the same requirements as other refunds
24 provided in Section 9 of this Act. For purposes of this
25 Section, the first functional use of property shall be the
26 use for which the property is intended, which shall, in the
27 absence of other evidence, be presumed to be the date of
28 delivery of the property.
29 Section 115. The Service Use Tax Act is amended by
30 changing Section 3-5 as follows:
31 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
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1 Sec. 3-5. Exemptions. Use of the following tangible
2 personal property is exempt from the tax imposed by this Act:
3 (1) Personal property purchased from a corporation,
4 society, association, foundation, institution, or
5 organization, other than a limited liability company, that is
6 organized and operated as a not-for-profit service enterprise
7 for the benefit of persons 65 years of age or older if the
8 personal property was not purchased by the enterprise for the
9 purpose of resale by the enterprise.
10 (2) Personal property purchased by a non-profit Illinois
11 county fair association for use in conducting, operating, or
12 promoting the county fair.
13 (3) Personal property purchased by a not-for-profit
14 music or dramatic arts organization that establishes, by
15 proof required by the Department by rule, that it has
16 received an exemption under Section 501(c)(3) of the Internal
17 Revenue Code and that is organized and operated for the
18 presentation of live public performances of musical or
19 theatrical works on a regular basis.
20 (4) Legal tender, currency, medallions, or gold or
21 silver coinage issued by the State of Illinois, the
22 government of the United States of America, or the government
23 of any foreign country, and bullion.
24 (5) Graphic arts machinery and equipment, including
25 repair and replacement parts, both new and used, and
26 including that manufactured on special order or purchased for
27 lease, certified by the purchaser to be used primarily for
28 graphic arts production.
29 (6) Personal property purchased from a teacher-sponsored
30 student organization affiliated with an elementary or
31 secondary school located in Illinois.
32 (7) Farm machinery and equipment, both new and used,
33 including that manufactured on special order, certified by
34 the purchaser to be used primarily for production agriculture
SB666 Engrossed -35- LRB9104001PTpk
1 or State or federal agricultural programs, including
2 individual replacement parts for the machinery and equipment,
3 including machinery and equipment purchased for lease, and
4 including implements of husbandry defined in Section 1-130 of
5 the Illinois Vehicle Code, farm machinery and agricultural
6 chemical and fertilizer spreaders, and nurse wagons required
7 to be registered under Section 3-809 of the Illinois Vehicle
8 Code, but excluding other motor vehicles required to be
9 registered under the Illinois Vehicle Code. Horticultural
10 polyhouses or hoop houses used for propagating, growing, or
11 overwintering plants shall be considered farm machinery and
12 equipment under this item (7). Agricultural chemical tender
13 tanks and dry boxes shall include units sold separately from
14 a motor vehicle required to be licensed and units sold
15 mounted on a motor vehicle required to be licensed if the
16 selling price of the tender is separately stated.
17 Farm machinery and equipment shall include precision
18 farming equipment that is installed or purchased to be
19 installed on farm machinery and equipment including, but not
20 limited to, tractors, harvesters, sprayers, planters,
21 seeders, or spreaders. Precision farming equipment includes,
22 but is not limited to, soil testing sensors, computers,
23 monitors, software, global positioning and mapping systems,
24 and other such equipment.
25 Farm machinery and equipment also includes computers,
26 sensors, software, and related equipment used primarily in
27 the computer-assisted operation of production agriculture
28 facilities, equipment, and activities such as, but not
29 limited to, the collection, monitoring, and correlation of
30 animal and crop data for the purpose of formulating animal
31 diets and agricultural chemicals. This item (7) is exempt
32 from the provisions of Section 3-75.
33 (8) Fuel and petroleum products sold to or used by an
34 air common carrier, certified by the carrier to be used for
SB666 Engrossed -36- LRB9104001PTpk
1 consumption, shipment, or storage in the conduct of its
2 business as an air common carrier, for a flight destined for
3 or returning from a location or locations outside the United
4 States without regard to previous or subsequent domestic
5 stopovers.
6 (9) Proceeds of mandatory service charges separately
7 stated on customers' bills for the purchase and consumption
8 of food and beverages acquired as an incident to the purchase
9 of a service from a serviceman, to the extent that the
10 proceeds of the service charge are in fact turned over as
11 tips or as a substitute for tips to the employees who
12 participate directly in preparing, serving, hosting or
13 cleaning up the food or beverage function with respect to
14 which the service charge is imposed.
15 (10) Oil field exploration, drilling, and production
16 equipment, including (i) rigs and parts of rigs, rotary rigs,
17 cable tool rigs, and workover rigs, (ii) pipe and tubular
18 goods, including casing and drill strings, (iii) pumps and
19 pump-jack units, (iv) storage tanks and flow lines, (v) any
20 individual replacement part for oil field exploration,
21 drilling, and production equipment, and (vi) machinery and
22 equipment purchased for lease; but excluding motor vehicles
23 required to be registered under the Illinois Vehicle Code.
24 (11) Proceeds from the sale of photoprocessing machinery
25 and equipment, including repair and replacement parts, both
26 new and used, including that manufactured on special order,
27 certified by the purchaser to be used primarily for
28 photoprocessing, and including photoprocessing machinery and
29 equipment purchased for lease.
30 (12) Coal exploration, mining, offhighway hauling,
31 processing, maintenance, and reclamation equipment, including
32 replacement parts and equipment, and including equipment
33 purchased for lease, but excluding motor vehicles required to
34 be registered under the Illinois Vehicle Code.
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1 (13) Semen used for artificial insemination of livestock
2 for direct agricultural production.
3 (14) Horses, or interests in horses, registered with and
4 meeting the requirements of any of the Arabian Horse Club
5 Registry of America, Appaloosa Horse Club, American Quarter
6 Horse Association, United States Trotting Association, or
7 Jockey Club, as appropriate, used for purposes of breeding or
8 racing for prizes.
9 (15) Computers and communications equipment utilized for
10 any hospital purpose and equipment used in the diagnosis,
11 analysis, or treatment of hospital patients purchased by a
12 lessor who leases the equipment, under a lease of one year or
13 longer executed or in effect at the time the lessor would
14 otherwise be subject to the tax imposed by this Act, to a
15 hospital that has been issued an active tax exemption
16 identification number by the Department under Section 1g of
17 the Retailers' Occupation Tax Act. If the equipment is leased
18 in a manner that does not qualify for this exemption or is
19 used in any other non-exempt manner, the lessor shall be
20 liable for the tax imposed under this Act or the Use Tax Act,
21 as the case may be, based on the fair market value of the
22 property at the time the non-qualifying use occurs. No
23 lessor shall collect or attempt to collect an amount (however
24 designated) that purports to reimburse that lessor for the
25 tax imposed by this Act or the Use Tax Act, as the case may
26 be, if the tax has not been paid by the lessor. If a lessor
27 improperly collects any such amount from the lessee, the
28 lessee shall have a legal right to claim a refund of that
29 amount from the lessor. If, however, that amount is not
30 refunded to the lessee for any reason, the lessor is liable
31 to pay that amount to the Department. This paragraph is
32 exempt from the provisions of Section 3-75.
33 (16) Personal property purchased by a lessor who leases
34 the property, under a lease of one year or longer executed or
SB666 Engrossed -38- LRB9104001PTpk
1 in effect at the time the lessor would otherwise be subject
2 to the tax imposed by this Act, to a governmental body that
3 has been issued an active tax exemption identification number
4 by the Department under Section 1g of the Retailers'
5 Occupation Tax Act. If the property is leased in a manner
6 that does not qualify for this exemption or is used in any
7 other non-exempt manner, the lessor shall be liable for the
8 tax imposed under this Act or the Use Tax Act, as the case
9 may be, based on the fair market value of the property at the
10 time the non-qualifying use occurs. No lessor shall collect
11 or attempt to collect an amount (however designated) that
12 purports to reimburse that lessor for the tax imposed by this
13 Act or the Use Tax Act, as the case may be, if the tax has
14 not been paid by the lessor. If a lessor improperly collects
15 any such amount from the lessee, the lessee shall have a
16 legal right to claim a refund of that amount from the lessor.
17 If, however, that amount is not refunded to the lessee for
18 any reason, the lessor is liable to pay that amount to the
19 Department. This paragraph is exempt from the provisions of
20 Section 3-75.
21 (17) Beginning with taxable years ending on or after
22 December 31, 1995 and ending with taxable years ending on or
23 before December 31, 2004, personal property that is donated
24 for disaster relief to be used in a State or federally
25 declared disaster area in Illinois or bordering Illinois by a
26 manufacturer or retailer that is registered in this State to
27 a corporation, society, association, foundation, or
28 institution that has been issued a sales tax exemption
29 identification number by the Department that assists victims
30 of the disaster who reside within the declared disaster area.
31 (18) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is used in
34 the performance of infrastructure repairs in this State,
SB666 Engrossed -39- LRB9104001PTpk
1 including but not limited to municipal roads and streets,
2 access roads, bridges, sidewalks, waste disposal systems,
3 water and sewer line extensions, water distribution and
4 purification facilities, storm water drainage and retention
5 facilities, and sewage treatment facilities, resulting from a
6 State or federally declared disaster in Illinois or bordering
7 Illinois when such repairs are initiated on facilities
8 located in the declared disaster area within 6 months after
9 the disaster.
10 (19) Beginning July 1, 1999, qualified technological
11 equipment purchased for lease by lessors under leases subject
12 to the Qualified Technological Equipment Leasing Occupation
13 and Use Tax Act. However, this exemption will last only as
14 long as the property continues to be leased by the lessor.
15 When the property is no longer used for lease and the
16 property reverts to the lessor, the property is subject to
17 the tax imposed by this Act upon the fair market value of the
18 property on the date of the reversion. The property will not
19 be considered to revert to the lessor as long as the lessor
20 holds the property in his or her lease inventory and does not
21 otherwise use the property, except for demonstration
22 purposes. In addition, property held in the lessor's lease
23 inventory that is subsequently leased for a period of less
24 than one year will not be considered to revert to the lessor
25 if the property is returned to lease inventory at the
26 termination of the lease. This paragraph is exempt from the
27 provisions of Section 3-75.
28 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
29 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
30 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
31 eff. 12-12-97; 90-605, eff. 6-30-98.)
32 Section 120. The Service Occupation Tax Act is amended
33 by changing Section 3-5 as follows:
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1 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
2 Sec. 3-5. Exemptions. The following tangible personal
3 property is exempt from the tax imposed by this Act:
4 (1) Personal property sold by a corporation, society,
5 association, foundation, institution, or organization, other
6 than a limited liability company, that is organized and
7 operated as a not-for-profit service enterprise for the
8 benefit of persons 65 years of age or older if the personal
9 property was not purchased by the enterprise for the purpose
10 of resale by the enterprise.
11 (2) Personal property purchased by a not-for-profit
12 Illinois county fair association for use in conducting,
13 operating, or promoting the county fair.
14 (3) Personal property purchased by any not-for-profit
15 music or dramatic arts organization that establishes, by
16 proof required by the Department by rule, that it has
17 received an exemption under Section 501(c)(3) of the
18 Internal Revenue Code and that is organized and operated for
19 the presentation of live public performances of musical or
20 theatrical works on a regular basis.
21 (4) Legal tender, currency, medallions, or gold or
22 silver coinage issued by the State of Illinois, the
23 government of the United States of America, or the government
24 of any foreign country, and bullion.
25 (5) Graphic arts machinery and equipment, including
26 repair and replacement parts, both new and used, and
27 including that manufactured on special order or purchased for
28 lease, certified by the purchaser to be used primarily for
29 graphic arts production.
30 (6) Personal property sold by a teacher-sponsored
31 student organization affiliated with an elementary or
32 secondary school located in Illinois.
33 (7) Farm machinery and equipment, both new and used,
34 including that manufactured on special order, certified by
SB666 Engrossed -41- LRB9104001PTpk
1 the purchaser to be used primarily for production agriculture
2 or State or federal agricultural programs, including
3 individual replacement parts for the machinery and equipment,
4 including machinery and equipment purchased for lease, and
5 including implements of husbandry defined in Section 1-130 of
6 the Illinois Vehicle Code, farm machinery and agricultural
7 chemical and fertilizer spreaders, and nurse wagons required
8 to be registered under Section 3-809 of the Illinois Vehicle
9 Code, but excluding other motor vehicles required to be
10 registered under the Illinois Vehicle Code. Horticultural
11 polyhouses or hoop houses used for propagating, growing, or
12 overwintering plants shall be considered farm machinery and
13 equipment under this item (7). Agricultural chemical tender
14 tanks and dry boxes shall include units sold separately from
15 a motor vehicle required to be licensed and units sold
16 mounted on a motor vehicle required to be licensed if the
17 selling price of the tender is separately stated.
18 Farm machinery and equipment shall include precision
19 farming equipment that is installed or purchased to be
20 installed on farm machinery and equipment including, but not
21 limited to, tractors, harvesters, sprayers, planters,
22 seeders, or spreaders. Precision farming equipment includes,
23 but is not limited to, soil testing sensors, computers,
24 monitors, software, global positioning and mapping systems,
25 and other such equipment.
26 Farm machinery and equipment also includes computers,
27 sensors, software, and related equipment used primarily in
28 the computer-assisted operation of production agriculture
29 facilities, equipment, and activities such as, but not
30 limited to, the collection, monitoring, and correlation of
31 animal and crop data for the purpose of formulating animal
32 diets and agricultural chemicals. This item (7) is exempt
33 from the provisions of Section 3-75.
34 (8) Fuel and petroleum products sold to or used by an
SB666 Engrossed -42- LRB9104001PTpk
1 air common carrier, certified by the carrier to be used for
2 consumption, shipment, or storage in the conduct of its
3 business as an air common carrier, for a flight destined for
4 or returning from a location or locations outside the United
5 States without regard to previous or subsequent domestic
6 stopovers.
7 (9) Proceeds of mandatory service charges separately
8 stated on customers' bills for the purchase and consumption
9 of food and beverages, to the extent that the proceeds of the
10 service charge are in fact turned over as tips or as a
11 substitute for tips to the employees who participate directly
12 in preparing, serving, hosting or cleaning up the food or
13 beverage function with respect to which the service charge is
14 imposed.
15 (10) Oil field exploration, drilling, and production
16 equipment, including (i) rigs and parts of rigs, rotary rigs,
17 cable tool rigs, and workover rigs, (ii) pipe and tubular
18 goods, including casing and drill strings, (iii) pumps and
19 pump-jack units, (iv) storage tanks and flow lines, (v) any
20 individual replacement part for oil field exploration,
21 drilling, and production equipment, and (vi) machinery and
22 equipment purchased for lease; but excluding motor vehicles
23 required to be registered under the Illinois Vehicle Code.
24 (11) Photoprocessing machinery and equipment, including
25 repair and replacement parts, both new and used, including
26 that manufactured on special order, certified by the
27 purchaser to be used primarily for photoprocessing, and
28 including photoprocessing machinery and equipment purchased
29 for lease.
30 (12) Coal exploration, mining, offhighway hauling,
31 processing, maintenance, and reclamation equipment, including
32 replacement parts and equipment, and including equipment
33 purchased for lease, but excluding motor vehicles required to
34 be registered under the Illinois Vehicle Code.
SB666 Engrossed -43- LRB9104001PTpk
1 (13) Food for human consumption that is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, soft drinks and food that has been prepared for
4 immediate consumption) and prescription and non-prescription
5 medicines, drugs, medical appliances, and insulin, urine
6 testing materials, syringes, and needles used by diabetics,
7 for human use, when purchased for use by a person receiving
8 medical assistance under Article 5 of the Illinois Public Aid
9 Code who resides in a licensed long-term care facility, as
10 defined in the Nursing Home Care Act.
11 (14) Semen used for artificial insemination of livestock
12 for direct agricultural production.
13 (15) Horses, or interests in horses, registered with and
14 meeting the requirements of any of the Arabian Horse Club
15 Registry of America, Appaloosa Horse Club, American Quarter
16 Horse Association, United States Trotting Association, or
17 Jockey Club, as appropriate, used for purposes of breeding or
18 racing for prizes.
19 (16) Computers and communications equipment utilized for
20 any hospital purpose and equipment used in the diagnosis,
21 analysis, or treatment of hospital patients sold to a lessor
22 who leases the equipment, under a lease of one year or longer
23 executed or in effect at the time of the purchase, to a
24 hospital that has been issued an active tax exemption
25 identification number by the Department under Section 1g of
26 the Retailers' Occupation Tax Act. This paragraph is exempt
27 from the provisions of Section 3-55.
28 (17) Personal property sold to a lessor who leases the
29 property, under a lease of one year or longer executed or in
30 effect at the time of the purchase, to a governmental body
31 that has been issued an active tax exemption identification
32 number by the Department under Section 1g of the Retailers'
33 Occupation Tax Act. This paragraph is exempt from the
34 provisions of Section 3-55.
SB666 Engrossed -44- LRB9104001PTpk
1 (18) Beginning with taxable years ending on or after
2 December 31, 1995 and ending with taxable years ending on or
3 before December 31, 2004, personal property that is donated
4 for disaster relief to be used in a State or federally
5 declared disaster area in Illinois or bordering Illinois by a
6 manufacturer or retailer that is registered in this State to
7 a corporation, society, association, foundation, or
8 institution that has been issued a sales tax exemption
9 identification number by the Department that assists victims
10 of the disaster who reside within the declared disaster area.
11 (19) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on or
13 before December 31, 2004, personal property that is used in
14 the performance of infrastructure repairs in this State,
15 including but not limited to municipal roads and streets,
16 access roads, bridges, sidewalks, waste disposal systems,
17 water and sewer line extensions, water distribution and
18 purification facilities, storm water drainage and retention
19 facilities, and sewage treatment facilities, resulting from a
20 State or federally declared disaster in Illinois or bordering
21 Illinois when such repairs are initiated on facilities
22 located in the declared disaster area within 6 months after
23 the disaster.
24 (20) Beginning July 1, 1999, qualified technological
25 equipment sold to lessors for lease under leases subject to
26 the Qualified Technological Equipment Leasing Occupation and
27 Use Tax Act. This paragraph is exempt from the provisions of
28 Section 3-55.
29 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
30 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
31 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
32 eff. 12-12-97; 90-605, eff. 6-30-98.)
33 Section 125. The Retailers' Occupation Tax Act is
SB666 Engrossed -45- LRB9104001PTpk
1 amended by adding Sections 1c-5 and 3.5 and changing
2 Sections 2-5 and 3 as follows:
3 (35 ILCS 120/1c-5 new)
4 Sec. 1c-5. Sale of used qualified technological
5 equipment by lessors. A person who is engaged in the
6 business of leasing qualified technological equipment under
7 leases subject to the Qualified Technological Equipment
8 Leasing Occupation and Use Tax Act and who, in connection
9 with that business, sells the property to a purchaser for his
10 or her use and not for the purpose of resale, is a retailer
11 engaged in the business of selling tangible personal property
12 at retail under this Act to the extent of the value of the
13 property sold.
14 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
15 Sec. 2-5. Exemptions. Gross receipts from proceeds from
16 the sale of the following tangible personal property are
17 exempt from the tax imposed by this Act:
18 (1) Farm chemicals.
19 (2) Farm machinery and equipment, both new and used,
20 including that manufactured on special order, certified by
21 the purchaser to be used primarily for production agriculture
22 or State or federal agricultural programs, including
23 individual replacement parts for the machinery and equipment,
24 including machinery and equipment purchased for lease, and
25 including implements of husbandry defined in Section 1-130 of
26 the Illinois Vehicle Code, farm machinery and agricultural
27 chemical and fertilizer spreaders, and nurse wagons required
28 to be registered under Section 3-809 of the Illinois Vehicle
29 Code, but excluding other motor vehicles required to be
30 registered under the Illinois Vehicle Code. Horticultural
31 polyhouses or hoop houses used for propagating, growing, or
32 overwintering plants shall be considered farm machinery and
SB666 Engrossed -46- LRB9104001PTpk
1 equipment under this item (2). Agricultural chemical tender
2 tanks and dry boxes shall include units sold separately from
3 a motor vehicle required to be licensed and units sold
4 mounted on a motor vehicle required to be licensed, if the
5 selling price of the tender is separately stated.
6 Farm machinery and equipment shall include precision
7 farming equipment that is installed or purchased to be
8 installed on farm machinery and equipment including, but not
9 limited to, tractors, harvesters, sprayers, planters,
10 seeders, or spreaders. Precision farming equipment includes,
11 but is not limited to, soil testing sensors, computers,
12 monitors, software, global positioning and mapping systems,
13 and other such equipment.
14 Farm machinery and equipment also includes computers,
15 sensors, software, and related equipment used primarily in
16 the computer-assisted operation of production agriculture
17 facilities, equipment, and activities such as, but not
18 limited to, the collection, monitoring, and correlation of
19 animal and crop data for the purpose of formulating animal
20 diets and agricultural chemicals. This item (7) is exempt
21 from the provisions of Section 3-75.
22 (3) Distillation machinery and equipment, sold as a unit
23 or kit, assembled or installed by the retailer, certified by
24 the user to be used only for the production of ethyl alcohol
25 that will be used for consumption as motor fuel or as a
26 component of motor fuel for the personal use of the user, and
27 not subject to sale or resale.
28 (4) Graphic arts machinery and equipment, including
29 repair and replacement parts, both new and used, and
30 including that manufactured on special order or purchased for
31 lease, certified by the purchaser to be used primarily for
32 graphic arts production.
33 (5) A motor vehicle of the first division, a motor
34 vehicle of the second division that is a self-contained motor
SB666 Engrossed -47- LRB9104001PTpk
1 vehicle designed or permanently converted to provide living
2 quarters for recreational, camping, or travel use, with
3 direct walk through access to the living quarters from the
4 driver's seat, or a motor vehicle of the second division that
5 is of the van configuration designed for the transportation
6 of not less than 7 nor more than 16 passengers, as defined in
7 Section 1-146 of the Illinois Vehicle Code, that is used for
8 automobile renting, as defined in the Automobile Renting
9 Occupation and Use Tax Act.
10 (6) Personal property sold by a teacher-sponsored
11 student organization affiliated with an elementary or
12 secondary school located in Illinois.
13 (7) Proceeds of that portion of the selling price of a
14 passenger car the sale of which is subject to the Replacement
15 Vehicle Tax.
16 (8) Personal property sold to an Illinois county fair
17 association for use in conducting, operating, or promoting
18 the county fair.
19 (9) Personal property sold to a not-for-profit music or
20 dramatic arts organization that establishes, by proof
21 required by the Department by rule, that it has received an
22 exemption under Section 501(c) (3) of the Internal Revenue
23 Code and that is organized and operated for the presentation
24 of live public performances of musical or theatrical works on
25 a regular basis.
26 (10) Personal property sold by a corporation, society,
27 association, foundation, institution, or organization, other
28 than a limited liability company, that is organized and
29 operated as a not-for-profit service enterprise for the
30 benefit of persons 65 years of age or older if the personal
31 property was not purchased by the enterprise for the purpose
32 of resale by the enterprise.
33 (11) Personal property sold to a governmental body, to a
34 corporation, society, association, foundation, or institution
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1 organized and operated exclusively for charitable, religious,
2 or educational purposes, or to a not-for-profit corporation,
3 society, association, foundation, institution, or
4 organization that has no compensated officers or employees
5 and that is organized and operated primarily for the
6 recreation of persons 55 years of age or older. A limited
7 liability company may qualify for the exemption under this
8 paragraph only if the limited liability company is organized
9 and operated exclusively for educational purposes. On and
10 after July 1, 1987, however, no entity otherwise eligible for
11 this exemption shall make tax-free purchases unless it has an
12 active identification number issued by the Department.
13 (12) Personal property sold to interstate carriers for
14 hire for use as rolling stock moving in interstate commerce
15 or to lessors under leases of one year or longer executed or
16 in effect at the time of purchase by interstate carriers for
17 hire for use as rolling stock moving in interstate commerce
18 and equipment operated by a telecommunications provider,
19 licensed as a common carrier by the Federal Communications
20 Commission, which is permanently installed in or affixed to
21 aircraft moving in interstate commerce.
22 (13) Proceeds from sales to owners, lessors, or shippers
23 of tangible personal property that is utilized by interstate
24 carriers for hire for use as rolling stock moving in
25 interstate commerce and equipment operated by a
26 telecommunications provider, licensed as a common carrier by
27 the Federal Communications Commission, which is permanently
28 installed in or affixed to aircraft moving in interstate
29 commerce.
30 (14) Machinery and equipment that will be used by the
31 purchaser, or a lessee of the purchaser, primarily in the
32 process of manufacturing or assembling tangible personal
33 property for wholesale or retail sale or lease, whether the
34 sale or lease is made directly by the manufacturer or by some
SB666 Engrossed -49- LRB9104001PTpk
1 other person, whether the materials used in the process are
2 owned by the manufacturer or some other person, or whether
3 the sale or lease is made apart from or as an incident to the
4 seller's engaging in the service occupation of producing
5 machines, tools, dies, jigs, patterns, gauges, or other
6 similar items of no commercial value on special order for a
7 particular purchaser.
8 (15) Proceeds of mandatory service charges separately
9 stated on customers' bills for purchase and consumption of
10 food and beverages, to the extent that the proceeds of the
11 service charge are in fact turned over as tips or as a
12 substitute for tips to the employees who participate directly
13 in preparing, serving, hosting or cleaning up the food or
14 beverage function with respect to which the service charge is
15 imposed.
16 (16) Petroleum products sold to a purchaser if the
17 seller is prohibited by federal law from charging tax to the
18 purchaser.
19 (17) Tangible personal property sold to a common carrier
20 by rail or motor that receives the physical possession of the
21 property in Illinois and that transports the property, or
22 shares with another common carrier in the transportation of
23 the property, out of Illinois on a standard uniform bill of
24 lading showing the seller of the property as the shipper or
25 consignor of the property to a destination outside Illinois,
26 for use outside Illinois.
27 (18) Legal tender, currency, medallions, or gold or
28 silver coinage issued by the State of Illinois, the
29 government of the United States of America, or the government
30 of any foreign country, and bullion.
31 (19) Oil field exploration, drilling, and production
32 equipment, including (i) rigs and parts of rigs, rotary rigs,
33 cable tool rigs, and workover rigs, (ii) pipe and tubular
34 goods, including casing and drill strings, (iii) pumps and
SB666 Engrossed -50- LRB9104001PTpk
1 pump-jack units, (iv) storage tanks and flow lines, (v) any
2 individual replacement part for oil field exploration,
3 drilling, and production equipment, and (vi) machinery and
4 equipment purchased for lease; but excluding motor vehicles
5 required to be registered under the Illinois Vehicle Code.
6 (20) Photoprocessing machinery and equipment, including
7 repair and replacement parts, both new and used, including
8 that manufactured on special order, certified by the
9 purchaser to be used primarily for photoprocessing, and
10 including photoprocessing machinery and equipment purchased
11 for lease.
12 (21) Coal exploration, mining, offhighway hauling,
13 processing, maintenance, and reclamation equipment, including
14 replacement parts and equipment, and including equipment
15 purchased for lease, but excluding motor vehicles required to
16 be registered under the Illinois Vehicle Code.
17 (22) Fuel and petroleum products sold to or used by an
18 air carrier, certified by the carrier to be used for
19 consumption, shipment, or storage in the conduct of its
20 business as an air common carrier, for a flight destined for
21 or returning from a location or locations outside the United
22 States without regard to previous or subsequent domestic
23 stopovers.
24 (23) A transaction in which the purchase order is
25 received by a florist who is located outside Illinois, but
26 who has a florist located in Illinois deliver the property to
27 the purchaser or the purchaser's donee in Illinois.
28 (24) Fuel consumed or used in the operation of ships,
29 barges, or vessels that are used primarily in or for the
30 transportation of property or the conveyance of persons for
31 hire on rivers bordering on this State if the fuel is
32 delivered by the seller to the purchaser's barge, ship, or
33 vessel while it is afloat upon that bordering river.
34 (25) A motor vehicle sold in this State to a nonresident
SB666 Engrossed -51- LRB9104001PTpk
1 even though the motor vehicle is delivered to the nonresident
2 in this State, if the motor vehicle is not to be titled in
3 this State, and if a driveaway decal permit is issued to the
4 motor vehicle as provided in Section 3-603 of the Illinois
5 Vehicle Code or if the nonresident purchaser has vehicle
6 registration plates to transfer to the motor vehicle upon
7 returning to his or her home state. The issuance of the
8 driveaway decal permit or having the out-of-state
9 registration plates to be transferred is prima facie evidence
10 that the motor vehicle will not be titled in this State.
11 (26) Semen used for artificial insemination of livestock
12 for direct agricultural production.
13 (27) Horses, or interests in horses, registered with and
14 meeting the requirements of any of the Arabian Horse Club
15 Registry of America, Appaloosa Horse Club, American Quarter
16 Horse Association, United States Trotting Association, or
17 Jockey Club, as appropriate, used for purposes of breeding or
18 racing for prizes.
19 (28) Computers and communications equipment utilized for
20 any hospital purpose and equipment used in the diagnosis,
21 analysis, or treatment of hospital patients sold to a lessor
22 who leases the equipment, under a lease of one year or longer
23 executed or in effect at the time of the purchase, to a
24 hospital that has been issued an active tax exemption
25 identification number by the Department under Section 1g of
26 this Act. This paragraph is exempt from the provisions of
27 Section 2-70.
28 (29) Personal property sold to a lessor who leases the
29 property, under a lease of one year or longer executed or in
30 effect at the time of the purchase, to a governmental body
31 that has been issued an active tax exemption identification
32 number by the Department under Section 1g of this Act. This
33 paragraph is exempt from the provisions of Section 2-70.
34 (30) Beginning with taxable years ending on or after
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1 December 31, 1995 and ending with taxable years ending on or
2 before December 31, 2004, personal property that is donated
3 for disaster relief to be used in a State or federally
4 declared disaster area in Illinois or bordering Illinois by a
5 manufacturer or retailer that is registered in this State to
6 a corporation, society, association, foundation, or
7 institution that has been issued a sales tax exemption
8 identification number by the Department that assists victims
9 of the disaster who reside within the declared disaster area.
10 (31) Beginning with taxable years ending on or after
11 December 31, 1995 and ending with taxable years ending on or
12 before December 31, 2004, personal property that is used in
13 the performance of infrastructure repairs in this State,
14 including but not limited to municipal roads and streets,
15 access roads, bridges, sidewalks, waste disposal systems,
16 water and sewer line extensions, water distribution and
17 purification facilities, storm water drainage and retention
18 facilities, and sewage treatment facilities, resulting from a
19 State or federally declared disaster in Illinois or bordering
20 Illinois when such repairs are initiated on facilities
21 located in the declared disaster area within 6 months after
22 the disaster.
23 (32) Beginning July 1, 1999, qualified technological
24 equipment sold to lessors for lease under leases subject to
25 the Qualified Technological Equipment Leasing Occupation and
26 Use Tax Act. This paragraph is exempt from the provisions of
27 Section 2-70.
28 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
29 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
30 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
31 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
32 (35 ILCS 120/3) (from Ch. 120, par. 442)
33 Sec. 3. Except as provided in this Section, on or before
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1 the twentieth day of each calendar month, every person
2 engaged in the business of selling tangible personal property
3 at retail in this State during the preceding calendar month
4 shall file a return with the Department, stating:
5 1. The name of the seller;
6 2. His residence address and the address of his
7 principal place of business and the address of the
8 principal place of business (if that is a different
9 address) from which he engages in the business of selling
10 tangible personal property at retail in this State;
11 3. Total amount of receipts received by him during
12 the preceding calendar month or quarter, as the case may
13 be, from sales of tangible personal property, and from
14 services furnished, by him during such preceding calendar
15 month or quarter;
16 4. Total amount received by him during the
17 preceding calendar month or quarter on charge and time
18 sales of tangible personal property, and from services
19 furnished, by him prior to the month or quarter for which
20 the return is filed;
21 5. Deductions allowed by law;
22 6. Gross receipts which were received by him during
23 the preceding calendar month or quarter and upon the
24 basis of which the tax is imposed;
25 7. The amount of credit provided in Section 2d of
26 this Act;
27 8. The amount of tax due;
28 9. The signature of the taxpayer; and
29 10. Such other reasonable information as the
30 Department may require.
31 If a taxpayer fails to sign a return within 30 days after
32 the proper notice and demand for signature by the Department,
33 the return shall be considered valid and any amount shown to
34 be due on the return shall be deemed assessed.
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1 Each return shall be accompanied by the statement of
2 prepaid tax issued pursuant to Section 2e for which credit is
3 claimed.
4 A retailer may accept a Manufacturer's Purchase Credit
5 certification from a purchaser in satisfaction of Use Tax as
6 provided in Section 3-85 of the Use Tax Act if the purchaser
7 provides the appropriate documentation as required by Section
8 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
9 certification, accepted by a retailer as provided in Section
10 3-85 of the Use Tax Act, may be used by that retailer to
11 satisfy Retailers' Occupation Tax liability in the amount
12 claimed in the certification, not to exceed 6.25% of the
13 receipts subject to tax from a qualifying purchase.
14 The Department may require returns to be filed on a
15 quarterly basis. If so required, a return for each calendar
16 quarter shall be filed on or before the twentieth day of the
17 calendar month following the end of such calendar quarter.
18 The taxpayer shall also file a return with the Department for
19 each of the first two months of each calendar quarter, on or
20 before the twentieth day of the following calendar month,
21 stating:
22 1. The name of the seller;
23 2. The address of the principal place of business
24 from which he engages in the business of selling tangible
25 personal property at retail in this State;
26 3. The total amount of taxable receipts received by
27 him during the preceding calendar month from sales of
28 tangible personal property by him during such preceding
29 calendar month, including receipts from charge and time
30 sales, but less all deductions allowed by law;
31 4. The amount of credit provided in Section 2d of
32 this Act;
33 5. The amount of tax due; and
34 6. Such other reasonable information as the
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1 Department may require.
2 If a total amount of less than $1 is payable, refundable
3 or creditable, such amount shall be disregarded if it is less
4 than 50 cents and shall be increased to $1 if it is 50 cents
5 or more.
6 Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who
10 has an average monthly tax liability of $100,000 or more
11 shall make all payments required by rules of the Department
12 by electronic funds transfer. Beginning October 1, 1995, a
13 taxpayer who has an average monthly tax liability of $50,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. The term "average
16 monthly tax liability" shall be the sum of the taxpayer's
17 liabilities under this Act, and under all other State and
18 local occupation and use tax laws administered by the
19 Department, for the immediately preceding calendar year
20 divided by 12.
21 Before August 1 of each year beginning in 1993, the
22 Department shall notify all taxpayers required to make
23 payments by electronic funds transfer. All taxpayers
24 required to make payments by electronic funds transfer shall
25 make those payments for a minimum of one year beginning on
26 October 1.
27 Any taxpayer not required to make payments by electronic
28 funds transfer may make payments by electronic funds transfer
29 with the permission of the Department.
30 All taxpayers required to make payment by electronic
31 funds transfer and any taxpayers authorized to voluntarily
32 make payments by electronic funds transfer shall make those
33 payments in the manner authorized by the Department.
34 The Department shall adopt such rules as are necessary to
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1 effectuate a program of electronic funds transfer and the
2 requirements of this Section.
3 Any amount which is required to be shown or reported on
4 any return or other document under this Act shall, if such
5 amount is not a whole-dollar amount, be increased to the
6 nearest whole-dollar amount in any case where the fractional
7 part of a dollar is 50 cents or more, and decreased to the
8 nearest whole-dollar amount where the fractional part of a
9 dollar is less than 50 cents.
10 If the retailer is otherwise required to file a monthly
11 return and if the retailer's average monthly tax liability to
12 the Department does not exceed $200, the Department may
13 authorize his returns to be filed on a quarter annual basis,
14 with the return for January, February and March of a given
15 year being due by April 20 of such year; with the return for
16 April, May and June of a given year being due by July 20 of
17 such year; with the return for July, August and September of
18 a given year being due by October 20 of such year, and with
19 the return for October, November and December of a given year
20 being due by January 20 of the following year.
21 If the retailer is otherwise required to file a monthly
22 or quarterly return and if the retailer's average monthly tax
23 liability with the Department does not exceed $50, the
24 Department may authorize his returns to be filed on an annual
25 basis, with the return for a given year being due by January
26 20 of the following year.
27 Such quarter annual and annual returns, as to form and
28 substance, shall be subject to the same requirements as
29 monthly returns.
30 Notwithstanding any other provision in this Act
31 concerning the time within which a retailer may file his
32 return, in the case of any retailer who ceases to engage in a
33 kind of business which makes him responsible for filing
34 returns under this Act, such retailer shall file a final
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1 return under this Act with the Department not more than one
2 month after discontinuing such business.
3 Where the same person has more than one business
4 registered with the Department under separate registrations
5 under this Act, such person may not file each return that is
6 due as a single return covering all such registered
7 businesses, but shall file separate returns for each such
8 registered business.
9 In addition, with respect to motor vehicles, watercraft,
10 aircraft, and trailers that are required to be registered
11 with an agency of this State, every retailer selling this
12 kind of tangible personal property shall file, with the
13 Department, upon a form to be prescribed and supplied by the
14 Department, a separate return for each such item of tangible
15 personal property which the retailer sells, except that
16 where, in the same transaction, a retailer of aircraft,
17 watercraft, motor vehicles or trailers transfers more than
18 one aircraft, watercraft, motor vehicle or trailer to another
19 aircraft, watercraft, motor vehicle retailer or trailer
20 retailer for the purpose of resale, that seller for resale
21 may report the transfer of all aircraft, watercraft, motor
22 vehicles or trailers involved in that transaction to the
23 Department on the same uniform invoice-transaction reporting
24 return form. For purposes of this Section, "watercraft"
25 means a Class 2, Class 3, or Class 4 watercraft as defined in
26 Section 3-2 of the Boat Registration and Safety Act, a
27 personal watercraft, or any boat equipped with an inboard
28 motor.
29 Any retailer who sells only motor vehicles, watercraft,
30 aircraft, or trailers that are required to be registered with
31 an agency of this State, so that all retailers' occupation
32 tax liability is required to be reported, and is reported, on
33 such transaction reporting returns and who is not otherwise
34 required to file monthly or quarterly returns, need not file
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1 monthly or quarterly returns. However, those retailers shall
2 be required to file returns on an annual basis.
3 The transaction reporting return, in the case of motor
4 vehicles or trailers that are required to be registered with
5 an agency of this State, shall be the same document as the
6 Uniform Invoice referred to in Section 5-402 of The Illinois
7 Vehicle Code and must show the name and address of the
8 seller; the name and address of the purchaser; the amount of
9 the selling price including the amount allowed by the
10 retailer for traded-in property, if any; the amount allowed
11 by the retailer for the traded-in tangible personal property,
12 if any, to the extent to which Section 1 of this Act allows
13 an exemption for the value of traded-in property; the balance
14 payable after deducting such trade-in allowance from the
15 total selling price; the amount of tax due from the retailer
16 with respect to such transaction; the amount of tax collected
17 from the purchaser by the retailer on such transaction (or
18 satisfactory evidence that such tax is not due in that
19 particular instance, if that is claimed to be the fact); the
20 place and date of the sale; a sufficient identification of
21 the property sold; such other information as is required in
22 Section 5-402 of The Illinois Vehicle Code, and such other
23 information as the Department may reasonably require.
24 The transaction reporting return in the case of
25 watercraft or aircraft must show the name and address of the
26 seller; the name and address of the purchaser; the amount of
27 the selling price including the amount allowed by the
28 retailer for traded-in property, if any; the amount allowed
29 by the retailer for the traded-in tangible personal property,
30 if any, to the extent to which Section 1 of this Act allows
31 an exemption for the value of traded-in property; the balance
32 payable after deducting such trade-in allowance from the
33 total selling price; the amount of tax due from the retailer
34 with respect to such transaction; the amount of tax collected
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1 from the purchaser by the retailer on such transaction (or
2 satisfactory evidence that such tax is not due in that
3 particular instance, if that is claimed to be the fact); the
4 place and date of the sale, a sufficient identification of
5 the property sold, and such other information as the
6 Department may reasonably require.
7 Such transaction reporting return shall be filed not
8 later than 20 days after the day of delivery of the item that
9 is being sold, but may be filed by the retailer at any time
10 sooner than that if he chooses to do so. The transaction
11 reporting return and tax remittance or proof of exemption
12 from the Illinois use tax may be transmitted to the
13 Department by way of the State agency with which, or State
14 officer with whom the tangible personal property must be
15 titled or registered (if titling or registration is required)
16 if the Department and such agency or State officer determine
17 that this procedure will expedite the processing of
18 applications for title or registration.
19 With each such transaction reporting return, the retailer
20 shall remit the proper amount of tax due (or shall submit
21 satisfactory evidence that the sale is not taxable if that is
22 the case), to the Department or its agents, whereupon the
23 Department shall issue, in the purchaser's name, a use tax
24 receipt (or a certificate of exemption if the Department is
25 satisfied that the particular sale is tax exempt) which such
26 purchaser may submit to the agency with which, or State
27 officer with whom, he must title or register the tangible
28 personal property that is involved (if titling or
29 registration is required) in support of such purchaser's
30 application for an Illinois certificate or other evidence of
31 title or registration to such tangible personal property.
32 No retailer's failure or refusal to remit tax under this
33 Act precludes a user, who has paid the proper tax to the
34 retailer, from obtaining his certificate of title or other
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1 evidence of title or registration (if titling or registration
2 is required) upon satisfying the Department that such user
3 has paid the proper tax (if tax is due) to the retailer. The
4 Department shall adopt appropriate rules to carry out the
5 mandate of this paragraph.
6 If the user who would otherwise pay tax to the retailer
7 wants the transaction reporting return filed and the payment
8 of the tax or proof of exemption made to the Department
9 before the retailer is willing to take these actions and such
10 user has not paid the tax to the retailer, such user may
11 certify to the fact of such delay by the retailer and may
12 (upon the Department being satisfied of the truth of such
13 certification) transmit the information required by the
14 transaction reporting return and the remittance for tax or
15 proof of exemption directly to the Department and obtain his
16 tax receipt or exemption determination, in which event the
17 transaction reporting return and tax remittance (if a tax
18 payment was required) shall be credited by the Department to
19 the proper retailer's account with the Department, but
20 without the 2.1% or 1.75% discount provided for in this
21 Section being allowed. When the user pays the tax directly
22 to the Department, he shall pay the tax in the same amount
23 and in the same form in which it would be remitted if the tax
24 had been remitted to the Department by the retailer.
25 Refunds made by the seller during the preceding return
26 period to purchasers, on account of tangible personal
27 property returned to the seller, shall be allowed as a
28 deduction under subdivision 5 of his monthly or quarterly
29 return, as the case may be, in case the seller had
30 theretofore included the receipts from the sale of such
31 tangible personal property in a return filed by him and had
32 paid the tax imposed by this Act with respect to such
33 receipts.
34 Where the seller is a corporation, the return filed on
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1 behalf of such corporation shall be signed by the president,
2 vice-president, secretary or treasurer or by the properly
3 accredited agent of such corporation.
4 Where the seller is a limited liability company, the
5 return filed on behalf of the limited liability company shall
6 be signed by a manager, member, or properly accredited agent
7 of the limited liability company.
8 Except as provided in this Section, the retailer filing
9 the return under this Section shall, at the time of filing
10 such return, pay to the Department the amount of tax imposed
11 by this Act less a discount of 2.1% prior to January 1, 1990
12 and 1.75% on and after January 1, 1990, or $5 per calendar
13 year, whichever is greater, which is allowed to reimburse the
14 retailer for the expenses incurred in keeping records,
15 preparing and filing returns, remitting the tax and supplying
16 data to the Department on request. Any prepayment made
17 pursuant to Section 2d of this Act shall be included in the
18 amount on which such 2.1% or 1.75% discount is computed. In
19 the case of retailers who report and pay the tax on a
20 transaction by transaction basis, as provided in this
21 Section, such discount shall be taken with each such tax
22 remittance instead of when such retailer files his periodic
23 return.
24 If the taxpayer's average monthly tax liability to the
25 Department under this Act, the Use Tax Act, the Service
26 Occupation Tax Act, and the Service Use Tax Act, excluding
27 any liability for prepaid sales tax to be remitted in
28 accordance with Section 2d of this Act, was $10,000 or more
29 during the preceding 4 complete calendar quarters, he shall
30 file a return with the Department each month by the 20th day
31 of the month next following the month during which such tax
32 liability is incurred and shall make payments to the
33 Department on or before the 7th, 15th, 22nd and last day of
34 the month during which such liability is incurred. If the
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1 month during which such tax liability is incurred began prior
2 to January 1, 1985, each payment shall be in an amount equal
3 to 1/4 of the taxpayer's actual liability for the month or an
4 amount set by the Department not to exceed 1/4 of the average
5 monthly liability of the taxpayer to the Department for the
6 preceding 4 complete calendar quarters (excluding the month
7 of highest liability and the month of lowest liability in
8 such 4 quarter period). If the month during which such tax
9 liability is incurred begins on or after January 1, 1985 and
10 prior to January 1, 1987, each payment shall be in an amount
11 equal to 22.5% of the taxpayer's actual liability for the
12 month or 27.5% of the taxpayer's liability for the same
13 calendar month of the preceding year. If the month during
14 which such tax liability is incurred begins on or after
15 January 1, 1987 and prior to January 1, 1988, each payment
16 shall be in an amount equal to 22.5% of the taxpayer's actual
17 liability for the month or 26.25% of the taxpayer's liability
18 for the same calendar month of the preceding year. If the
19 month during which such tax liability is incurred begins on
20 or after January 1, 1988, and prior to January 1, 1989, or
21 begins on or after January 1, 1996, each payment shall be in
22 an amount equal to 22.5% of the taxpayer's actual liability
23 for the month or 25% of the taxpayer's liability for the same
24 calendar month of the preceding year. If the month during
25 which such tax liability is incurred begins on or after
26 January 1, 1989, and prior to January 1, 1996, each payment
27 shall be in an amount equal to 22.5% of the taxpayer's actual
28 liability for the month or 25% of the taxpayer's liability
29 for the same calendar month of the preceding year or 100% of
30 the taxpayer's actual liability for the quarter monthly
31 reporting period. The amount of such quarter monthly
32 payments shall be credited against the final tax liability of
33 the taxpayer's return for that month. Once applicable, the
34 requirement of the making of quarter monthly payments to the
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1 Department by taxpayers having an average monthly tax
2 liability of $10,000 or more as determined in the manner
3 provided above shall continue until such taxpayer's average
4 monthly liability to the Department during the preceding 4
5 complete calendar quarters (excluding the month of highest
6 liability and the month of lowest liability) is less than
7 $9,000, or until such taxpayer's average monthly liability to
8 the Department as computed for each calendar quarter of the 4
9 preceding complete calendar quarter period is less than
10 $10,000. However, if a taxpayer can show the Department that
11 a substantial change in the taxpayer's business has occurred
12 which causes the taxpayer to anticipate that his average
13 monthly tax liability for the reasonably foreseeable future
14 will fall below $10,000, then such taxpayer may petition the
15 Department for a change in such taxpayer's reporting status.
16 The Department shall change such taxpayer's reporting status
17 unless it finds that such change is seasonal in nature and
18 not likely to be long term. If any such quarter monthly
19 payment is not paid at the time or in the amount required by
20 this Section, then the taxpayer shall be liable for penalties
21 and interest on the difference between the minimum amount due
22 as a payment and the amount of such quarter monthly payment
23 actually and timely paid, except insofar as the taxpayer has
24 previously made payments for that month to the Department in
25 excess of the minimum payments previously due as provided in
26 this Section. The Department shall make reasonable rules and
27 regulations to govern the quarter monthly payment amount and
28 quarter monthly payment dates for taxpayers who file on other
29 than a calendar monthly basis.
30 Without regard to whether a taxpayer is required to make
31 quarter monthly payments as specified above, any taxpayer who
32 is required by Section 2d of this Act to collect and remit
33 prepaid taxes and has collected prepaid taxes which average
34 in excess of $25,000 per month during the preceding 2
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1 complete calendar quarters, shall file a return with the
2 Department as required by Section 2f and shall make payments
3 to the Department on or before the 7th, 15th, 22nd and last
4 day of the month during which such liability is incurred. If
5 the month during which such tax liability is incurred began
6 prior to the effective date of this amendatory Act of 1985,
7 each payment shall be in an amount not less than 22.5% of the
8 taxpayer's actual liability under Section 2d. If the month
9 during which such tax liability is incurred begins on or
10 after January 1, 1986, each payment shall be in an amount
11 equal to 22.5% of the taxpayer's actual liability for the
12 month or 27.5% of the taxpayer's liability for the same
13 calendar month of the preceding calendar year. If the month
14 during which such tax liability is incurred begins on or
15 after 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 26.25% of the taxpayer's liability for the same
18 calendar month of the preceding year. The amount of such
19 quarter monthly payments shall be credited against the final
20 tax liability of the taxpayer's return for that month filed
21 under this Section or Section 2f, as the case may be. Once
22 applicable, the requirement of the making of quarter monthly
23 payments to the Department pursuant to this paragraph shall
24 continue until such taxpayer's average monthly prepaid tax
25 collections during the preceding 2 complete calendar quarters
26 is $25,000 or less. If any such quarter monthly payment is
27 not paid at the time or in the amount required, the taxpayer
28 shall be liable for penalties and interest on such
29 difference, except insofar as the taxpayer has previously
30 made payments for that month in excess of the minimum
31 payments previously due.
32 If any payment provided for in this Section exceeds the
33 taxpayer's liabilities under this Act, the Use Tax Act, the
34 Service Occupation Tax Act and the Service Use Tax Act, as
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1 shown on an original monthly return, the Department shall, if
2 requested by the taxpayer, issue to the taxpayer a credit
3 memorandum no later than 30 days after the date of payment.
4 The credit evidenced by such credit memorandum may be
5 assigned by the taxpayer to a similar taxpayer under this
6 Act, the Use Tax Act, the Service Occupation Tax Act or the
7 Service Use Tax Act, in accordance with reasonable rules and
8 regulations to be prescribed by the Department. If no such
9 request is made, the taxpayer may credit such excess payment
10 against tax liability subsequently to be remitted to the
11 Department under this Act, the Use Tax Act, the Service
12 Occupation Tax Act or the Service Use Tax Act, in accordance
13 with reasonable rules and regulations prescribed by the
14 Department. If the Department subsequently determined that
15 all or any part of the credit taken was not actually due to
16 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
17 shall be reduced by 2.1% or 1.75% of the difference between
18 the credit taken and that actually due, and that taxpayer
19 shall be liable for penalties and interest on such
20 difference.
21 If a retailer of motor fuel is entitled to a credit under
22 Section 2d of this Act which exceeds the taxpayer's liability
23 to the Department under this Act for the month which the
24 taxpayer is filing a return, the Department shall issue the
25 taxpayer a credit memorandum for the excess.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the Local Government Tax Fund, a special fund
28 in the State treasury which is hereby created, the net
29 revenue realized for the preceding month from the 1% tax on
30 sales of food for human consumption which is to be consumed
31 off the premises where it is sold (other than alcoholic
32 beverages, soft drinks and food which has been prepared for
33 immediate consumption) and prescription and nonprescription
34 medicines, drugs, medical appliances and insulin, urine
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1 testing materials, syringes and needles used by diabetics.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the County and Mass Transit District Fund, a
4 special fund in the State treasury which is hereby created,
5 4% of the net revenue realized for the preceding month from
6 the 6.25% general rate.
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.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act and the moneys received by the
14 Department from the 80% of the 8.25% occupation tax imposed
15 in Section 10 of the Qualified Technological Equipment
16 Leasing Occupation and Use Tax Act, (a) 1.75% thereof shall
17 be paid into the Build Illinois Fund and (b) prior to July 1,
18 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
19 be paid into the Build Illinois Fund; provided, however, that
20 if in any fiscal year the sum of (1) the aggregate of 2.2% or
21 3.8%, as the case may be, of the moneys received by the
22 Department and required to be paid into the Build Illinois
23 Fund pursuant to this Act, Section 9 of the Use Tax Act,
24 Section 9 of the Service Use Tax Act, and Section 9 of the
25 Service Occupation Tax Act, such Acts being hereinafter
26 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
27 the case may be, of moneys being hereinafter called the "Tax
28 Act Amount", and (2) the amount transferred to the Build
29 Illinois Fund from the State and Local Sales Tax Reform Fund
30 shall be less than the Annual Specified Amount (as
31 hereinafter defined), an amount equal to the difference shall
32 be immediately paid into the Build Illinois Fund from other
33 moneys received by the Department pursuant to the Tax Acts;
34 the "Annual Specified Amount" means the amounts specified
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1 below for fiscal years 1986 through 1993:
2 Fiscal Year Annual Specified Amount
3 1986 $54,800,000
4 1987 $76,650,000
5 1988 $80,480,000
6 1989 $88,510,000
7 1990 $115,330,000
8 1991 $145,470,000
9 1992 $182,730,000
10 1993 $206,520,000;
11 and means the Certified Annual Debt Service Requirement (as
12 defined in Section 13 of the Build Illinois Bond Act) or the
13 Tax Act Amount, whichever is greater, for fiscal year 1994
14 and each fiscal year thereafter; and further provided, that
15 if on the last business day of any month the sum of (1) the
16 Tax Act Amount required to be deposited into the Build
17 Illinois Bond Account in the Build Illinois Fund during such
18 month and (2) the amount transferred to the Build Illinois
19 Fund from the State and Local Sales Tax Reform Fund shall
20 have been less than 1/12 of the Annual Specified Amount, an
21 amount equal to the difference shall be immediately paid into
22 the Build Illinois Fund from other moneys received by the
23 Department pursuant to the Tax Acts; and, further provided,
24 that in no event shall the payments required under the
25 preceding proviso result in aggregate payments into the Build
26 Illinois Fund pursuant to this clause (b) for any fiscal year
27 in excess of the greater of (i) the Tax Act Amount or (ii)
28 the Annual Specified Amount for such fiscal year. The
29 amounts payable into the Build Illinois Fund under clause (b)
30 of the first sentence in this paragraph shall be payable only
31 until such time as the aggregate amount on deposit under each
32 trust indenture securing Bonds issued and outstanding
33 pursuant to the Build Illinois Bond Act is sufficient, taking
34 into account any future investment income, to fully provide,
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1 in accordance with such indenture, for the defeasance of or
2 the payment of the principal of, premium, if any, and
3 interest on the Bonds secured by such indenture and on any
4 Bonds expected to be issued thereafter and all fees and costs
5 payable with respect thereto, all as certified by the
6 Director of the Bureau of the Budget. If on the last
7 business day of any month in which Bonds are outstanding
8 pursuant to the Build Illinois Bond Act, the aggregate of
9 moneys deposited in the Build Illinois Bond Account in the
10 Build Illinois Fund in such month shall be less than the
11 amount required to be transferred in such month from the
12 Build Illinois Bond Account to the Build Illinois Bond
13 Retirement and Interest Fund pursuant to Section 13 of the
14 Build Illinois Bond Act, an amount equal to such deficiency
15 shall be immediately paid from other moneys received by the
16 Department pursuant to the Tax Acts to the Build Illinois
17 Fund; provided, however, that any amounts paid to the Build
18 Illinois Fund in any fiscal year pursuant to this sentence
19 shall be deemed to constitute payments pursuant to clause (b)
20 of the first sentence of this paragraph and shall reduce the
21 amount otherwise payable for such fiscal year pursuant to
22 that clause (b). The moneys received by the Department
23 pursuant to this Act and required to be deposited into the
24 Build Illinois Fund are subject to the pledge, claim and
25 charge set forth in Section 12 of the Build Illinois Bond
26 Act.
27 Subject to payment of amounts into the Build Illinois
28 Fund as provided in the preceding paragraph or in any
29 amendment thereto hereafter enacted, the following specified
30 monthly installment of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority provided under Section 8.25f of the
33 State Finance Act, but not in excess of sums designated as
34 "Total Deposit", shall be deposited in the aggregate from
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1 collections under Section 9 of the Use Tax Act, Section 9 of
2 the Service Use Tax Act, Section 9 of the Service Occupation
3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
4 into the McCormick Place Expansion Project Fund in the
5 specified fiscal years.
6 Fiscal Year Total Deposit
7 1993 $0
8 1994 53,000,000
9 1995 58,000,000
10 1996 61,000,000
11 1997 64,000,000
12 1998 68,000,000
13 1999 71,000,000
14 2000 75,000,000
15 2001 80,000,000
16 2002 84,000,000
17 2003 89,000,000
18 2004 93,000,000
19 2005 97,000,000
20 2006 102,000,000
21 2007 and 106,000,000
22 each fiscal year
23 thereafter that bonds
24 are outstanding under
25 Section 13.2 of the
26 Metropolitan Pier and
27 Exposition Authority
28 Act, but not after fiscal year 2029.
29 Beginning July 20, 1993 and in each month of each fiscal
30 year thereafter, one-eighth of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority for that fiscal year, less the amount
33 deposited into the McCormick Place Expansion Project Fund by
34 the State Treasurer in the respective month under subsection
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1 (g) of Section 13 of the Metropolitan Pier and Exposition
2 Authority Act, plus cumulative deficiencies in the deposits
3 required under this Section for previous months and years,
4 shall be deposited into the McCormick Place Expansion Project
5 Fund, until the full amount requested for the fiscal year,
6 but not in excess of the amount specified above as "Total
7 Deposit", has been deposited.
8 Subject to payment of amounts into the Build Illinois
9 Fund and the McCormick Place Expansion Project Fund pursuant
10 to the preceding paragraphs or in any amendment thereto
11 hereafter enacted, each month the Department shall pay into
12 the Local Government Distributive Fund 0.4% of the net
13 revenue realized for the preceding month from the 5% general
14 rate or 0.4% of 80% of the net revenue realized for the
15 preceding month from the 6.25% general rate, as the case may
16 be, on the selling price of tangible personal property which
17 amount shall, subject to appropriation, be distributed as
18 provided in Section 2 of the State Revenue Sharing Act. No
19 payments or distributions pursuant to this paragraph shall be
20 made if the tax imposed by this Act on photoprocessing
21 products is declared unconstitutional, or if the proceeds
22 from such tax are unavailable for distribution because of
23 litigation.
24 Subject to payment of amounts into the Build Illinois
25 Fund, the McCormick Place Expansion Project to the preceding
26 paragraphs or in any amendments thereto hereafter enacted,
27 beginning July 1, 1993, the Department shall each month pay
28 into the Illinois Tax Increment Fund 0.27% of 80% 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 Of the remainder of the moneys received by the Department
33 pursuant to this Act, 75% thereof shall be paid into the
34 State Treasury and 25% shall be reserved in a special account
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1 and used only for the transfer to the Common School Fund as
2 part of the monthly transfer from the General Revenue Fund in
3 accordance with Section 8a of the State Finance Act.
4 The Department may, upon separate written notice to a
5 taxpayer, require the taxpayer to prepare and file with the
6 Department on a form prescribed by the Department within not
7 less than 60 days after receipt of the notice an annual
8 information return for the tax year specified in the notice.
9 Such annual return to the Department shall include a
10 statement of gross receipts as shown by the retailer's last
11 Federal income tax return. If the total receipts of the
12 business as reported in the Federal income tax return do not
13 agree with the gross receipts reported to the Department of
14 Revenue for the same period, the retailer shall attach to his
15 annual return a schedule showing a reconciliation of the 2
16 amounts and the reasons for the difference. The retailer's
17 annual return to the Department shall also disclose the cost
18 of goods sold by the retailer during the year covered by such
19 return, opening and closing inventories of such goods for
20 such year, costs of goods used from stock or taken from stock
21 and given away by the retailer during such year, payroll
22 information of the retailer's business during such year and
23 any additional reasonable information which the Department
24 deems would be helpful in determining the accuracy of the
25 monthly, quarterly or annual returns filed by such retailer
26 as provided for in this Section.
27 If the annual information return required by this Section
28 is not filed when and as required, the taxpayer shall be
29 liable as follows:
30 (i) Until January 1, 1994, the taxpayer shall be
31 liable for a penalty equal to 1/6 of 1% of the tax due
32 from such taxpayer under this Act during the period to be
33 covered by the annual return for each month or fraction
34 of a month until such return is filed as required, the
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1 penalty to be assessed and collected in the same manner
2 as any other penalty provided for in this Act.
3 (ii) On and after January 1, 1994, the taxpayer
4 shall be liable for a penalty as described in Section 3-4
5 of the Uniform Penalty and Interest Act.
6 The chief executive officer, proprietor, owner or highest
7 ranking manager shall sign the annual return to certify the
8 accuracy of the information contained therein. Any person
9 who willfully signs the annual return containing false or
10 inaccurate information shall be guilty of perjury and
11 punished accordingly. The annual return form prescribed by
12 the Department shall include a warning that the person
13 signing the return may be liable for perjury.
14 The provisions of this Section concerning the filing of
15 an annual information return do not apply to a retailer who
16 is not required to file an income tax return with the United
17 States Government.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June, 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 For greater simplicity of administration, manufacturers,
31 importers and wholesalers whose products are sold at retail
32 in Illinois by numerous retailers, and who wish to do so, may
33 assume the responsibility for accounting and paying to the
34 Department all tax accruing under this Act with respect to
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1 such sales, if the retailers who are affected do not make
2 written objection to the Department to this arrangement.
3 Any person who promotes, organizes, provides retail
4 selling space for concessionaires or other types of sellers
5 at the Illinois State Fair, DuQuoin State Fair, county fairs,
6 local fairs, art shows, flea markets and similar exhibitions
7 or events, including any transient merchant as defined by
8 Section 2 of the Transient Merchant Act of 1987, is required
9 to file a report with the Department providing the name of
10 the merchant's business, the name of the person or persons
11 engaged in merchant's business, the permanent address and
12 Illinois Retailers Occupation Tax Registration Number of the
13 merchant, the dates and location of the event and other
14 reasonable information that the Department may require. The
15 report must be filed not later than the 20th day of the month
16 next following the month during which the event with retail
17 sales was held. Any person who fails to file a report
18 required by this Section commits a business offense and is
19 subject to a fine not to exceed $250.
20 Any person engaged in the business of selling tangible
21 personal property at retail as a concessionaire or other type
22 of seller at the Illinois State Fair, county fairs, art
23 shows, flea markets and similar exhibitions or events, or any
24 transient merchants, as defined by Section 2 of the Transient
25 Merchant Act of 1987, may be required to make a daily report
26 of the amount of such sales to the Department and to make a
27 daily payment of the full amount of tax due. The Department
28 shall impose this requirement when it finds that there is a
29 significant risk of loss of revenue to the State at such an
30 exhibition or event. Such a finding shall be based on
31 evidence that a substantial number of concessionaires or
32 other sellers who are not residents of Illinois will be
33 engaging in the business of selling tangible personal
34 property at retail at the exhibition or event, or other
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1 evidence of a significant risk of loss of revenue to the
2 State. The Department shall notify concessionaires and other
3 sellers affected by the imposition of this requirement. In
4 the absence of notification by the Department, the
5 concessionaires and other sellers shall file their returns as
6 otherwise required in this Section.
7 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
8 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
9 1-1-99; 90-612, eff. 7-8-98.)
10 (35 ILCS 120/3.5 new)
11 Sec. 3.5. Refund; leaseback transaction. A purchaser of
12 qualified technological equipment, as defined in Section 5 of
13 the Qualified Technological Equipment Leasing Occupation and
14 Use Tax Act, may obtain a refund of all tax paid to a seller
15 under this Act or any other tax administered by the
16 Department if the purchaser sells the property to a rentor
17 under a bona fide sale and leaseback transaction (to such
18 purchaser) within 90 days of the first functional use of the
19 property. The purchaser shall request the refund from the
20 seller to whom he or she has paid the tax in the same manner
21 and subject to the same requirements as other refunds
22 provided in Section 3 of this Act. For purposes of this
23 Section, the first functional use of property shall be the
24 use for which the property is intended, which shall, in the
25 absence of other evidence, be presumed to be the date of
26 delivery of the property.
27 Section 999. Effective date. This Act takes effect July
28 1, 1999.
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1 INDEX
2 Statutes amended in order of appearance
3 New Act
4 30 ILCS 115/1 from Ch. 85, par. 611
5 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
6 35 ILCS 105/9 from Ch. 120, par. 439.9
7 35 ILCS 105/9.5 new
8 35 ILCS 110/3-5 from Ch. 120, par. 439.33-5
9 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5
10 35 ILCS 120/1c-5 new
11 35 ILCS 120/2-5 from Ch. 120, par. 441-5
12 35 ILCS 120/3 from Ch. 120, par. 442
13 35 ILCS 120/3.5 new
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