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91_SB1118enr
SB1118 Enrolled LRB9102874PTpkA
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 changing Sections 203, 207, 304, 502, 601.1, 905, and 911 and
6 adding Section 405 as follows:
7 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
8 Sec. 203. Base income defined.
9 (a) Individuals.
10 (1) In general. In the case of an individual, base
11 income means an amount equal to the taxpayer's adjusted
12 gross income for the taxable year as modified by
13 paragraph (2).
14 (2) Modifications. The adjusted gross income
15 referred to in paragraph (1) shall be modified by adding
16 thereto the sum of the following amounts:
17 (A) An amount equal to all amounts paid or
18 accrued to the taxpayer as interest or dividends
19 during the taxable year to the extent excluded from
20 gross income in the computation of adjusted gross
21 income, except stock dividends of qualified public
22 utilities described in Section 305(e) of the
23 Internal Revenue Code;
24 (B) An amount equal to the amount of tax
25 imposed by this Act to the extent deducted from
26 gross income in the computation of adjusted gross
27 income for the taxable year;
28 (C) An amount equal to the amount received
29 during the taxable year as a recovery or refund of
30 real property taxes paid with respect to the
31 taxpayer's principal residence under the Revenue Act
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1 of 1939 and for which a deduction was previously
2 taken under subparagraph (L) of this paragraph (2)
3 prior to July 1, 1991, the retrospective application
4 date of Article 4 of Public Act 87-17. In the case
5 of multi-unit or multi-use structures and farm
6 dwellings, the taxes on the taxpayer's principal
7 residence shall be that portion of the total taxes
8 for the entire property which is attributable to
9 such principal residence;
10 (D) An amount equal to the amount of the
11 capital gain deduction allowable under the Internal
12 Revenue Code, to the extent deducted from gross
13 income in the computation of adjusted gross income;
14 (D-5) An amount, to the extent not included in
15 adjusted gross income, equal to the amount of money
16 withdrawn by the taxpayer in the taxable year from a
17 medical care savings account and the interest earned
18 on the account in the taxable year of a withdrawal
19 pursuant to subsection (b) of Section 20 of the
20 Medical Care Savings Account Act; and
21 (D-10) For taxable years ending after December
22 31, 1997, an amount equal to any eligible
23 remediation costs that the individual deducted in
24 computing adjusted gross income and for which the
25 individual claims a credit under subsection (l) of
26 Section 201;
27 and by deducting from the total so obtained the sum of
28 the following amounts:
29 (E) Any amount included in such total in
30 respect of any compensation (including but not
31 limited to any compensation paid or accrued to a
32 serviceman while a prisoner of war or missing in
33 action) paid to a resident by reason of being on
34 active duty in the Armed Forces of the United States
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1 and in respect of any compensation paid or accrued
2 to a resident who as a governmental employee was a
3 prisoner of war or missing in action, and in respect
4 of any compensation paid to a resident in 1971 or
5 thereafter for annual training performed pursuant to
6 Sections 502 and 503, Title 32, United States Code
7 as a member of the Illinois National Guard;
8 (F) An amount equal to all amounts included in
9 such total pursuant to the provisions of Sections
10 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
11 408 of the Internal Revenue Code, or included in
12 such total as distributions under the provisions of
13 any retirement or disability plan for employees of
14 any governmental agency or unit, or retirement
15 payments to retired partners, which payments are
16 excluded in computing net earnings from self
17 employment by Section 1402 of the Internal Revenue
18 Code and regulations adopted pursuant thereto;
19 (G) The valuation limitation amount;
20 (H) An amount equal to the amount of any tax
21 imposed by this Act which was refunded to the
22 taxpayer and included in such total for the taxable
23 year;
24 (I) An amount equal to all amounts included in
25 such total pursuant to the provisions of Section 111
26 of the Internal Revenue Code as a recovery of items
27 previously deducted from adjusted gross income in
28 the computation of taxable income;
29 (J) An amount equal to those dividends
30 included in such total which were paid by a
31 corporation which conducts business operations in an
32 Enterprise Zone or zones created under the Illinois
33 Enterprise Zone Act, and conducts substantially all
34 of its operations in an Enterprise Zone or zones;
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1 (K) An amount equal to those dividends
2 included in such total that were paid by a
3 corporation that conducts business operations in a
4 federally designated Foreign Trade Zone or Sub-Zone
5 and that is designated a High Impact Business
6 located in Illinois; provided that dividends
7 eligible for the deduction provided in subparagraph
8 (J) of paragraph (2) of this subsection shall not be
9 eligible for the deduction provided under this
10 subparagraph (K);
11 (L) For taxable years ending after December
12 31, 1983, an amount equal to all social security
13 benefits and railroad retirement benefits included
14 in such total pursuant to Sections 72(r) and 86 of
15 the Internal Revenue Code;
16 (M) With the exception of any amounts
17 subtracted under subparagraph (N), an amount equal
18 to the sum of all amounts disallowed as deductions
19 by (i) Sections 171(a)(2), and 265(2) of the
20 Internal Revenue Code of 1954, as now or hereafter
21 amended, and all amounts of expenses allocable to
22 interest and disallowed as deductions by Section
23 265(1) of the Internal Revenue Code of 1954, as now
24 or hereafter amended; and (ii) for taxable years
25 ending on or after the effective date of this
26 amendatory Act of the 91st General Assembly,
27 Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i)
28 of the Internal Revenue Code; the provisions of this
29 subparagraph are exempt from the provisions of
30 Section 250;
31 (N) An amount equal to all amounts included in
32 such total which are exempt from taxation by this
33 State either by reason of its statutes or
34 Constitution or by reason of the Constitution,
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1 treaties or statutes of the United States; provided
2 that, in the case of any statute of this State that
3 exempts income derived from bonds or other
4 obligations from the tax imposed under this Act, the
5 amount exempted shall be the interest net of bond
6 premium amortization;
7 (O) An amount equal to any contribution made
8 to a job training project established pursuant to
9 the Tax Increment Allocation Redevelopment Act;
10 (P) An amount equal to the amount of the
11 deduction used to compute the federal income tax
12 credit for restoration of substantial amounts held
13 under claim of right for the taxable year pursuant
14 to Section 1341 of the Internal Revenue Code of
15 1986;
16 (Q) An amount equal to any amounts included in
17 such total, received by the taxpayer as an
18 acceleration in the payment of life, endowment or
19 annuity benefits in advance of the time they would
20 otherwise be payable as an indemnity for a terminal
21 illness;
22 (R) An amount equal to the amount of any
23 federal or State bonus paid to veterans of the
24 Persian Gulf War;
25 (S) An amount, to the extent included in
26 adjusted gross income, equal to the amount of a
27 contribution made in the taxable year on behalf of
28 the taxpayer to a medical care savings account
29 established under the Medical Care Savings Account
30 Act to the extent the contribution is accepted by
31 the account administrator as provided in that Act;
32 (T) An amount, to the extent included in
33 adjusted gross income, equal to the amount of
34 interest earned in the taxable year on a medical
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1 care savings account established under the Medical
2 Care Savings Account Act on behalf of the taxpayer,
3 other than interest added pursuant to item (D-5) of
4 this paragraph (2);
5 (U) For one taxable year beginning on or after
6 January 1, 1994, an amount equal to the total amount
7 of tax imposed and paid under subsections (a) and
8 (b) of Section 201 of this Act on grant amounts
9 received by the taxpayer under the Nursing Home
10 Grant Assistance Act during the taxpayer's taxable
11 years 1992 and 1993;
12 (V) Beginning with tax years ending on or
13 after December 31, 1995 and ending with tax years
14 ending on or before December 31, 1999, an amount
15 equal to the amount paid by a taxpayer who is a
16 self-employed taxpayer, a partner of a partnership,
17 or a shareholder in a Subchapter S corporation for
18 health insurance or long-term care insurance for
19 that taxpayer or that taxpayer's spouse or
20 dependents, to the extent that the amount paid for
21 that health insurance or long-term care insurance
22 may be deducted under Section 213 of the Internal
23 Revenue Code of 1986, has not been deducted on the
24 federal income tax return of the taxpayer, and does
25 not exceed the taxable income attributable to that
26 taxpayer's income, self-employment income, or
27 Subchapter S corporation income; except that no
28 deduction shall be allowed under this item (V) if
29 the taxpayer is eligible to participate in any
30 health insurance or long-term care insurance plan of
31 an employer of the taxpayer or the taxpayer's
32 spouse. The amount of the health insurance and
33 long-term care insurance subtracted under this item
34 (V) shall be determined by multiplying total health
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1 insurance and long-term care insurance premiums paid
2 by the taxpayer times a number that represents the
3 fractional percentage of eligible medical expenses
4 under Section 213 of the Internal Revenue Code of
5 1986 not actually deducted on the taxpayer's federal
6 income tax return; and
7 (W) For taxable years beginning on or after
8 January 1, 1998, all amounts included in the
9 taxpayer's federal gross income in the taxable year
10 from amounts converted from a regular IRA to a Roth
11 IRA. This paragraph is exempt from the provisions of
12 Section 250.
13 (b) Corporations.
14 (1) In general. In the case of a corporation, base
15 income means an amount equal to the taxpayer's taxable
16 income for the taxable year as modified by paragraph (2).
17 (2) Modifications. The taxable income referred to
18 in paragraph (1) shall be modified by adding thereto the
19 sum of the following amounts:
20 (A) An amount equal to all amounts paid or
21 accrued to the taxpayer as interest and all
22 distributions received from regulated investment
23 companies during the taxable year to the extent
24 excluded from gross income in the computation of
25 taxable income;
26 (B) An amount equal to the amount of tax
27 imposed by this Act to the extent deducted from
28 gross income in the computation of taxable income
29 for the taxable year;
30 (C) In the case of a regulated investment
31 company, an amount equal to the excess of (i) the
32 net long-term capital gain for the taxable year,
33 over (ii) the amount of the capital gain dividends
34 designated as such in accordance with Section
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1 852(b)(3)(C) of the Internal Revenue Code and any
2 amount designated under Section 852(b)(3)(D) of the
3 Internal Revenue Code, attributable to the taxable
4 year. (this amendatory Act of 1995 (Public Act
5 89-89) is declarative of existing law and is not a
6 new enactment);.
7 (D) The amount of any net operating loss
8 deduction taken in arriving at taxable income, other
9 than a net operating loss carried forward from a
10 taxable year ending prior to December 31, 1986; and
11 (E) For taxable years in which a net operating
12 loss carryback or carryforward from a taxable year
13 ending prior to December 31, 1986 is an element of
14 taxable income under paragraph (1) of subsection (e)
15 or subparagraph (E) of paragraph (2) of subsection
16 (e), the amount by which addition modifications
17 other than those provided by this subparagraph (E)
18 exceeded subtraction modifications in such earlier
19 taxable year, with the following limitations applied
20 in the order that they are listed:
21 (i) the addition modification relating to
22 the net operating loss carried back or forward
23 to the taxable year from any taxable year
24 ending prior to December 31, 1986 shall be
25 reduced by the amount of addition modification
26 under this subparagraph (E) which related to
27 that net operating loss and which was taken
28 into account in calculating the base income of
29 an earlier taxable year, and
30 (ii) the addition modification relating
31 to the net operating loss carried back or
32 forward to the taxable year from any taxable
33 year ending prior to December 31, 1986 shall
34 not exceed the amount of such carryback or
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1 carryforward;
2 For taxable years in which there is a net
3 operating loss carryback or carryforward from more
4 than one other taxable year ending prior to December
5 31, 1986, the addition modification provided in this
6 subparagraph (E) shall be the sum of the amounts
7 computed independently under the preceding
8 provisions of this subparagraph (E) for each such
9 taxable year;, and
10 (E-5) For taxable years ending after December
11 31, 1997, an amount equal to any eligible
12 remediation costs that the corporation deducted in
13 computing adjusted gross income and for which the
14 corporation claims a credit under subsection (l) of
15 Section 201;
16 and by deducting from the total so obtained the sum of
17 the following amounts:
18 (F) An amount equal to the amount of any tax
19 imposed by this Act which was refunded to the
20 taxpayer and included in such total for the taxable
21 year;
22 (G) An amount equal to any amount included in
23 such total under Section 78 of the Internal Revenue
24 Code;
25 (H) In the case of a regulated investment
26 company, an amount equal to the amount of exempt
27 interest dividends as defined in subsection (b) (5)
28 of Section 852 of the Internal Revenue Code, paid to
29 shareholders for the taxable year;
30 (I) With the exception of any amounts
31 subtracted under subparagraph (J), an amount equal
32 to the sum of all amounts disallowed as deductions
33 by (i) Sections 171(a)(2), and 265(a)(2) and amounts
34 disallowed as interest expense by Section 291(a)(3)
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1 of the Internal Revenue Code, as now or hereafter
2 amended, and all amounts of expenses allocable to
3 interest and disallowed as deductions by Section
4 265(a)(1) of the Internal Revenue Code, as now or
5 hereafter amended; and (ii) for taxable years ending
6 on or after the effective date of this amendatory
7 Act of the 91st General Assembly, Sections
8 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
9 Internal Revenue Code; the provisions of this
10 subparagraph are exempt from the provisions of
11 Section 250;
12 (J) An amount equal to all amounts included in
13 such total which are exempt from taxation by this
14 State either by reason of its statutes or
15 Constitution or by reason of the Constitution,
16 treaties or statutes of the United States; provided
17 that, in the case of any statute of this State that
18 exempts income derived from bonds or other
19 obligations from the tax imposed under this Act, the
20 amount exempted shall be the interest net of bond
21 premium amortization;
22 (K) An amount equal to those dividends
23 included in such total which were paid by a
24 corporation which conducts business operations in an
25 Enterprise Zone or zones created under the Illinois
26 Enterprise Zone Act and conducts substantially all
27 of its operations in an Enterprise Zone or zones;
28 (L) An amount equal to those dividends
29 included in such total that were paid by a
30 corporation that conducts business operations in a
31 federally designated Foreign Trade Zone or Sub-Zone
32 and that is designated a High Impact Business
33 located in Illinois; provided that dividends
34 eligible for the deduction provided in subparagraph
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1 (K) of paragraph 2 of this subsection shall not be
2 eligible for the deduction provided under this
3 subparagraph (L);
4 (M) For any taxpayer that is a financial
5 organization within the meaning of Section 304(c) of
6 this Act, an amount included in such total as
7 interest income from a loan or loans made by such
8 taxpayer to a borrower, to the extent that such a
9 loan is secured by property which is eligible for
10 the Enterprise Zone Investment Credit. To determine
11 the portion of a loan or loans that is secured by
12 property eligible for a Section 201(h) investment
13 credit to the borrower, the entire principal amount
14 of the loan or loans between the taxpayer and the
15 borrower should be divided into the basis of the
16 Section 201(h) investment credit property which
17 secures the loan or loans, using for this purpose
18 the original basis of such property on the date that
19 it was placed in service in the Enterprise Zone.
20 The subtraction modification available to taxpayer
21 in any year under this subsection shall be that
22 portion of the total interest paid by the borrower
23 with respect to such loan attributable to the
24 eligible property as calculated under the previous
25 sentence;
26 (M-1) For any taxpayer that is a financial
27 organization within the meaning of Section 304(c) of
28 this Act, an amount included in such total as
29 interest income from a loan or loans made by such
30 taxpayer to a borrower, to the extent that such a
31 loan is secured by property which is eligible for
32 the High Impact Business Investment Credit. To
33 determine the portion of a loan or loans that is
34 secured by property eligible for a Section 201(i)
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1 investment credit to the borrower, the entire
2 principal amount of the loan or loans between the
3 taxpayer and the borrower should be divided into the
4 basis of the Section 201(i) investment credit
5 property which secures the loan or loans, using for
6 this purpose the original basis of such property on
7 the date that it was placed in service in a
8 federally designated Foreign Trade Zone or Sub-Zone
9 located in Illinois. No taxpayer that is eligible
10 for the deduction provided in subparagraph (M) of
11 paragraph (2) of this subsection shall be eligible
12 for the deduction provided under this subparagraph
13 (M-1). The subtraction modification available to
14 taxpayers in any year under this subsection shall be
15 that portion of the total interest paid by the
16 borrower with respect to such loan attributable to
17 the eligible property as calculated under the
18 previous sentence;
19 (N) Two times any contribution made during the
20 taxable year to a designated zone organization to
21 the extent that the contribution (i) qualifies as a
22 charitable contribution under subsection (c) of
23 Section 170 of the Internal Revenue Code and (ii)
24 must, by its terms, be used for a project approved
25 by the Department of Commerce and Community Affairs
26 under Section 11 of the Illinois Enterprise Zone
27 Act;
28 (O) An amount equal to: (i) 85% for taxable
29 years ending on or before December 31, 1992, or, a
30 percentage equal to the percentage allowable under
31 Section 243(a)(1) of the Internal Revenue Code of
32 1986 for taxable years ending after December 31,
33 1992, of the amount by which dividends included in
34 taxable income and received from a corporation that
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1 is not created or organized under the laws of the
2 United States or any state or political subdivision
3 thereof, including, for taxable years ending on or
4 after December 31, 1988, dividends received or
5 deemed received or paid or deemed paid under
6 Sections 951 through 964 of the Internal Revenue
7 Code, exceed the amount of the modification provided
8 under subparagraph (G) of paragraph (2) of this
9 subsection (b) which is related to such dividends;
10 plus (ii) 100% of the amount by which dividends,
11 included in taxable income and received, including,
12 for taxable years ending on or after December 31,
13 1988, dividends received or deemed received or paid
14 or deemed paid under Sections 951 through 964 of the
15 Internal Revenue Code, from any such corporation
16 specified in clause (i) that would but for the
17 provisions of Section 1504 (b) (3) of the Internal
18 Revenue Code be treated as a member of the
19 affiliated group which includes the dividend
20 recipient, exceed the amount of the modification
21 provided under subparagraph (G) of paragraph (2) of
22 this subsection (b) which is related to such
23 dividends;
24 (P) An amount equal to any contribution made
25 to a job training project established pursuant to
26 the Tax Increment Allocation Redevelopment Act; and
27 (Q) An amount equal to the amount of the
28 deduction used to compute the federal income tax
29 credit for restoration of substantial amounts held
30 under claim of right for the taxable year pursuant
31 to Section 1341 of the Internal Revenue Code of
32 1986.
33 (3) Special rule. For purposes of paragraph (2)
34 (A), "gross income" in the case of a life insurance
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1 company, for tax years ending on and after December 31,
2 1994, shall mean the gross investment income for the
3 taxable year.
4 (c) Trusts and estates.
5 (1) In general. In the case of a trust or estate,
6 base income means an amount equal to the taxpayer's
7 taxable income for the taxable year as modified by
8 paragraph (2).
9 (2) Modifications. Subject to the provisions of
10 paragraph (3), the taxable income referred to in
11 paragraph (1) shall be modified by adding thereto the sum
12 of the following amounts:
13 (A) An amount equal to all amounts paid or
14 accrued to the taxpayer as interest or dividends
15 during the taxable year to the extent excluded from
16 gross income in the computation of taxable income;
17 (B) In the case of (i) an estate, $600; (ii) a
18 trust which, under its governing instrument, is
19 required to distribute all of its income currently,
20 $300; and (iii) any other trust, $100, but in each
21 such case, only to the extent such amount was
22 deducted in the computation of taxable income;
23 (C) An amount equal to the amount of tax
24 imposed by this Act to the extent deducted from
25 gross income in the computation of taxable income
26 for the taxable year;
27 (D) The amount of any net operating loss
28 deduction taken in arriving at taxable income, other
29 than a net operating loss carried forward from a
30 taxable year ending prior to December 31, 1986;
31 (E) For taxable years in which a net operating
32 loss carryback or carryforward from a taxable year
33 ending prior to December 31, 1986 is an element of
34 taxable income under paragraph (1) of subsection (e)
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1 or subparagraph (E) of paragraph (2) of subsection
2 (e), the amount by which addition modifications
3 other than those provided by this subparagraph (E)
4 exceeded subtraction modifications in such taxable
5 year, with the following limitations applied in the
6 order that they are listed:
7 (i) the addition modification relating to
8 the net operating loss carried back or forward
9 to the taxable year from any taxable year
10 ending prior to December 31, 1986 shall be
11 reduced by the amount of addition modification
12 under this subparagraph (E) which related to
13 that net operating loss and which was taken
14 into account in calculating the base income of
15 an earlier taxable year, and
16 (ii) the addition modification relating
17 to the net operating loss carried back or
18 forward to the taxable year from any taxable
19 year ending prior to December 31, 1986 shall
20 not exceed the amount of such carryback or
21 carryforward;
22 For taxable years in which there is a net
23 operating loss carryback or carryforward from more
24 than one other taxable year ending prior to December
25 31, 1986, the addition modification provided in this
26 subparagraph (E) shall be the sum of the amounts
27 computed independently under the preceding
28 provisions of this subparagraph (E) for each such
29 taxable year;
30 (F) For taxable years ending on or after
31 January 1, 1989, an amount equal to the tax deducted
32 pursuant to Section 164 of the Internal Revenue Code
33 if the trust or estate is claiming the same tax for
34 purposes of the Illinois foreign tax credit under
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1 Section 601 of this Act;
2 (G) An amount equal to the amount of the
3 capital gain deduction allowable under the Internal
4 Revenue Code, to the extent deducted from gross
5 income in the computation of taxable income; and
6 (G-5) For taxable years ending after December
7 31, 1997, an amount equal to any eligible
8 remediation costs that the trust or estate deducted
9 in computing adjusted gross income and for which the
10 trust or estate claims a credit under subsection (l)
11 of Section 201;
12 and by deducting from the total so obtained the sum of
13 the following amounts:
14 (H) An amount equal to all amounts included in
15 such total pursuant to the provisions of Sections
16 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
17 408 of the Internal Revenue Code or included in such
18 total as distributions under the provisions of any
19 retirement or disability plan for employees of any
20 governmental agency or unit, or retirement payments
21 to retired partners, which payments are excluded in
22 computing net earnings from self employment by
23 Section 1402 of the Internal Revenue Code and
24 regulations adopted pursuant thereto;
25 (I) The valuation limitation amount;
26 (J) An amount equal to the amount of any tax
27 imposed by this Act which was refunded to the
28 taxpayer and included in such total for the taxable
29 year;
30 (K) An amount equal to all amounts included in
31 taxable income as modified by subparagraphs (A),
32 (B), (C), (D), (E), (F) and (G) which are exempt
33 from taxation by this State either by reason of its
34 statutes or Constitution or by reason of the
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1 Constitution, treaties or statutes of the United
2 States; provided that, in the case of any statute of
3 this State that exempts income derived from bonds or
4 other obligations from the tax imposed under this
5 Act, the amount exempted shall be the interest net
6 of bond premium amortization;
7 (L) With the exception of any amounts
8 subtracted under subparagraph (K), an amount equal
9 to the sum of all amounts disallowed as deductions
10 by (i) Sections 171(a)(2) and 265(a)(2) of the
11 Internal Revenue Code, as now or hereafter amended,
12 and all amounts of expenses allocable to interest
13 and disallowed as deductions by Section 265(1) of
14 the Internal Revenue Code of 1954, as now or
15 hereafter amended; and (ii) for taxable years ending
16 on or after the effective date of this amendatory
17 Act of the 91st General Assembly, Sections
18 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
19 Internal Revenue Code; the provisions of this
20 subparagraph are exempt from the provisions of
21 Section 250;
22 (M) An amount equal to those dividends
23 included in such total which were paid by a
24 corporation which conducts business operations in an
25 Enterprise Zone or zones created under the Illinois
26 Enterprise Zone Act and conducts substantially all
27 of its operations in an Enterprise Zone or Zones;
28 (N) An amount equal to any contribution made
29 to a job training project established pursuant to
30 the Tax Increment Allocation Redevelopment Act;
31 (O) An amount equal to those dividends
32 included in such total that were paid by a
33 corporation that conducts business operations in a
34 federally designated Foreign Trade Zone or Sub-Zone
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1 and that is designated a High Impact Business
2 located in Illinois; provided that dividends
3 eligible for the deduction provided in subparagraph
4 (M) of paragraph (2) of this subsection shall not be
5 eligible for the deduction provided under this
6 subparagraph (O); and
7 (P) An amount equal to the amount of the
8 deduction used to compute the federal income tax
9 credit for restoration of substantial amounts held
10 under claim of right for the taxable year pursuant
11 to Section 1341 of the Internal Revenue Code of
12 1986.
13 (3) Limitation. The amount of any modification
14 otherwise required under this subsection shall, under
15 regulations prescribed by the Department, be adjusted by
16 any amounts included therein which were properly paid,
17 credited, or required to be distributed, or permanently
18 set aside for charitable purposes pursuant to Internal
19 Revenue Code Section 642(c) during the taxable year.
20 (d) Partnerships.
21 (1) In general. In the case of a partnership, base
22 income means an amount equal to the taxpayer's taxable
23 income for the taxable year as modified by paragraph (2).
24 (2) Modifications. The taxable income referred to
25 in paragraph (1) shall be modified by adding thereto the
26 sum of the following amounts:
27 (A) An amount equal to all amounts paid or
28 accrued to the taxpayer as interest or dividends
29 during the taxable year to the extent excluded from
30 gross income in the computation of taxable income;
31 (B) An amount equal to the amount of tax
32 imposed by this Act to the extent deducted from
33 gross income for the taxable year; and
34 (C) The amount of deductions allowed to the
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1 partnership pursuant to Section 707 (c) of the
2 Internal Revenue Code in calculating its taxable
3 income; and
4 (D) An amount equal to the amount of the
5 capital gain deduction allowable under the Internal
6 Revenue Code, to the extent deducted from gross
7 income in the computation of taxable income;
8 and by deducting from the total so obtained the following
9 amounts:
10 (E) The valuation limitation amount;
11 (F) An amount equal to the amount of any tax
12 imposed by this Act which was refunded to the
13 taxpayer and included in such total for the taxable
14 year;
15 (G) An amount equal to all amounts included in
16 taxable income as modified by subparagraphs (A),
17 (B), (C) and (D) which are exempt from taxation by
18 this State either by reason of its statutes or
19 Constitution or by reason of the Constitution,
20 treaties or statutes of the United States; provided
21 that, in the case of any statute of this State that
22 exempts income derived from bonds or other
23 obligations from the tax imposed under this Act, the
24 amount exempted shall be the interest net of bond
25 premium amortization;
26 (H) Any income of the partnership which
27 constitutes personal service income as defined in
28 Section 1348 (b) (1) of the Internal Revenue Code
29 (as in effect December 31, 1981) or a reasonable
30 allowance for compensation paid or accrued for
31 services rendered by partners to the partnership,
32 whichever is greater;
33 (I) An amount equal to all amounts of income
34 distributable to an entity subject to the Personal
SB1118 Enrolled -20- LRB9102874PTpkA
1 Property Tax Replacement Income Tax imposed by
2 subsections (c) and (d) of Section 201 of this Act
3 including amounts distributable to organizations
4 exempt from federal income tax by reason of Section
5 501(a) of the Internal Revenue Code;
6 (J) With the exception of any amounts
7 subtracted under subparagraph (G), an amount equal
8 to the sum of all amounts disallowed as deductions
9 by (i) Sections 171(a)(2), and 265(2) of the
10 Internal Revenue Code of 1954, as now or hereafter
11 amended, and all amounts of expenses allocable to
12 interest and disallowed as deductions by Section
13 265(1) of the Internal Revenue Code, as now or
14 hereafter amended; and (ii) for taxable years
15 _ending on or after the effective date of this
16 amendatory Act of the 91st General Assembly,
17 Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i)
18 of the Internal Revenue Code; the provisions of this
19 subparagraph are exempt from the provisions of
20 Section 250;
21 (K) An amount equal to those dividends
22 included in such total which were paid by a
23 corporation which conducts business operations in an
24 Enterprise Zone or zones created under the Illinois
25 Enterprise Zone Act, enacted by the 82nd General
26 Assembly, and which does not conduct such operations
27 other than in an Enterprise Zone or Zones;
28 (L) An amount equal to any contribution made
29 to a job training project established pursuant to
30 the Real Property Tax Increment Allocation
31 Redevelopment Act;
32 (M) An amount equal to those dividends
33 included in such total that were paid by a
34 corporation that conducts business operations in a
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1 federally designated Foreign Trade Zone or Sub-Zone
2 and that is designated a High Impact Business
3 located in Illinois; provided that dividends
4 eligible for the deduction provided in subparagraph
5 (K) of paragraph (2) of this subsection shall not be
6 eligible for the deduction provided under this
7 subparagraph (M); and
8 (N) An amount equal to the amount of the
9 deduction used to compute the federal income tax
10 credit for restoration of substantial amounts held
11 under claim of right for the taxable year pursuant
12 to Section 1341 of the Internal Revenue Code of
13 1986.
14 (e) Gross income; adjusted gross income; taxable income.
15 (1) In general. Subject to the provisions of
16 paragraph (2) and subsection (b) (3), for purposes of
17 this Section and Section 803(e), a taxpayer's gross
18 income, adjusted gross income, or taxable income for the
19 taxable year shall mean the amount of gross income,
20 adjusted gross income or taxable income properly
21 reportable for federal income tax purposes for the
22 taxable year under the provisions of the Internal Revenue
23 Code. Taxable income may be less than zero. However, for
24 taxable years ending on or after December 31, 1986, net
25 operating loss carryforwards from taxable years ending
26 prior to December 31, 1986, may not exceed the sum of
27 federal taxable income for the taxable year before net
28 operating loss deduction, plus the excess of addition
29 modifications over subtraction modifications for the
30 taxable year. For taxable years ending prior to December
31 31, 1986, taxable income may never be an amount in excess
32 of the net operating loss for the taxable year as defined
33 in subsections (c) and (d) of Section 172 of the Internal
34 Revenue Code, provided that when taxable income of a
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1 corporation (other than a Subchapter S corporation),
2 trust, or estate is less than zero and addition
3 modifications, other than those provided by subparagraph
4 (E) of paragraph (2) of subsection (b) for corporations
5 or subparagraph (E) of paragraph (2) of subsection (c)
6 for trusts and estates, exceed subtraction modifications,
7 an addition modification must be made under those
8 subparagraphs for any other taxable year to which the
9 taxable income less than zero (net operating loss) is
10 applied under Section 172 of the Internal Revenue Code or
11 under subparagraph (E) of paragraph (2) of this
12 subsection (e) applied in conjunction with Section 172 of
13 the Internal Revenue Code.
14 (2) Special rule. For purposes of paragraph (1) of
15 this subsection, the taxable income properly reportable
16 for federal income tax purposes shall mean:
17 (A) Certain life insurance companies. In the
18 case of a life insurance company subject to the tax
19 imposed by Section 801 of the Internal Revenue Code,
20 life insurance company taxable income, plus the
21 amount of distribution from pre-1984 policyholder
22 surplus accounts as calculated under Section 815a of
23 the Internal Revenue Code;
24 (B) Certain other insurance companies. In the
25 case of mutual insurance companies subject to the
26 tax imposed by Section 831 of the Internal Revenue
27 Code, insurance company taxable income;
28 (C) Regulated investment companies. In the
29 case of a regulated investment company subject to
30 the tax imposed by Section 852 of the Internal
31 Revenue Code, investment company taxable income;
32 (D) Real estate investment trusts. In the
33 case of a real estate investment trust subject to
34 the tax imposed by Section 857 of the Internal
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1 Revenue Code, real estate investment trust taxable
2 income;
3 (E) Consolidated corporations. In the case of
4 a corporation which is a member of an affiliated
5 group of corporations filing a consolidated income
6 tax return for the taxable year for federal income
7 tax purposes, taxable income determined as if such
8 corporation had filed a separate return for federal
9 income tax purposes for the taxable year and each
10 preceding taxable year for which it was a member of
11 an affiliated group. For purposes of this
12 subparagraph, the taxpayer's separate taxable income
13 shall be determined as if the election provided by
14 Section 243(b) (2) of the Internal Revenue Code had
15 been in effect for all such years;
16 (F) Cooperatives. In the case of a
17 cooperative corporation or association, the taxable
18 income of such organization determined in accordance
19 with the provisions of Section 1381 through 1388 of
20 the Internal Revenue Code;
21 (G) Subchapter S corporations. In the case
22 of: (i) a Subchapter S corporation for which there
23 is in effect an election for the taxable year under
24 Section 1362 of the Internal Revenue Code, the
25 taxable income of such corporation determined in
26 accordance with Section 1363(b) of the Internal
27 Revenue Code, except that taxable income shall take
28 into account those items which are required by
29 Section 1363(b)(1) of the Internal Revenue Code to
30 be separately stated; and (ii) a Subchapter S
31 corporation for which there is in effect a federal
32 election to opt out of the provisions of the
33 Subchapter S Revision Act of 1982 and have applied
34 instead the prior federal Subchapter S rules as in
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1 effect on July 1, 1982, the taxable income of such
2 corporation determined in accordance with the
3 federal Subchapter S rules as in effect on July 1,
4 1982; and
5 (H) Partnerships. In the case of a
6 partnership, taxable income determined in accordance
7 with Section 703 of the Internal Revenue Code,
8 except that taxable income shall take into account
9 those items which are required by Section 703(a)(1)
10 to be separately stated but which would be taken
11 into account by an individual in calculating his
12 taxable income.
13 (f) Valuation limitation amount.
14 (1) In general. The valuation limitation amount
15 referred to in subsections (a) (2) (G), (c) (2) (I) and
16 (d)(2) (E) is an amount equal to:
17 (A) The sum of the pre-August 1, 1969
18 appreciation amounts (to the extent consisting of
19 gain reportable under the provisions of Section 1245
20 or 1250 of the Internal Revenue Code) for all
21 property in respect of which such gain was reported
22 for the taxable year; plus
23 (B) The lesser of (i) the sum of the
24 pre-August 1, 1969 appreciation amounts (to the
25 extent consisting of capital gain) for all property
26 in respect of which such gain was reported for
27 federal income tax purposes for the taxable year, or
28 (ii) the net capital gain for the taxable year,
29 reduced in either case by any amount of such gain
30 included in the amount determined under subsection
31 (a) (2) (F) or (c) (2) (H).
32 (2) Pre-August 1, 1969 appreciation amount.
33 (A) If the fair market value of property
34 referred to in paragraph (1) was readily
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1 ascertainable on August 1, 1969, the pre-August 1,
2 1969 appreciation amount for such property is the
3 lesser of (i) the excess of such fair market value
4 over the taxpayer's basis (for determining gain) for
5 such property on that date (determined under the
6 Internal Revenue Code as in effect on that date), or
7 (ii) the total gain realized and reportable for
8 federal income tax purposes in respect of the sale,
9 exchange or other disposition of such property.
10 (B) If the fair market value of property
11 referred to in paragraph (1) was not readily
12 ascertainable on August 1, 1969, the pre-August 1,
13 1969 appreciation amount for such property is that
14 amount which bears the same ratio to the total gain
15 reported in respect of the property for federal
16 income tax purposes for the taxable year, as the
17 number of full calendar months in that part of the
18 taxpayer's holding period for the property ending
19 July 31, 1969 bears to the number of full calendar
20 months in the taxpayer's entire holding period for
21 the property.
22 (C) The Department shall prescribe such
23 regulations as may be necessary to carry out the
24 purposes of this paragraph.
25 (g) Double deductions. Unless specifically provided
26 otherwise, nothing in this Section shall permit the same item
27 to be deducted more than once.
28 (h) Legislative intention. Except as expressly provided
29 by this Section there shall be no modifications or
30 limitations on the amounts of income, gain, loss or deduction
31 taken into account in determining gross income, adjusted
32 gross income or taxable income for federal income tax
33 purposes for the taxable year, or in the amount of such items
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1 entering into the computation of base income and net income
2 under this Act for such taxable year, whether in respect of
3 property values as of August 1, 1969 or otherwise.
4 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
5 89-418, eff. 11-15-95; 89-460, eff. 5-24-96; 89-626, eff.
6 8-9-96; 90-491, eff. 1-1-98; 90-717, eff. 8-7-98; 90-770,
7 eff. 8-14-98; revised 9-21-98.)
8 (35 ILCS 5/207) (from Ch. 120, par. 2-207)
9 Sec. 207. Net Losses.
10 (a) If after applying all of the modifications provided
11 for in paragraph (2) of Section 203(b), paragraph (2) of
12 Section 203(c) and paragraph (2) of Section 203(d) and the
13 allocation and apportionment provisions of Article 3 of this
14 Act, the taxpayer's net income results in a loss;
15 (1) for any taxable year ending prior to December
16 31, 1999, such loss shall be allowed as a carryover or
17 carryback deduction in the manner allowed under Section
18 172 of the Internal Revenue Code; and
19 (2) for any taxable year ending on or after
20 December 31, 1999, such loss shall be allowed as a
21 carryback to each of the 2 taxable years preceding the
22 taxable year of such loss and shall be a net operating
23 carryover to each of the 20 taxable years following the
24 taxable year of such loss.
25 (A) The taxpayer may elect to relinquish the
26 entire carryback period with respect to such loss.
27 Such election shall be made in the form and manner
28 prescribed by the Department and shall be made by
29 the due date (including extensions of time) for
30 filing the taxpayer's return for the taxable year in
31 which such loss is incurred, and such election, once
32 made, shall be irrevocable.
33 (B) The entire amount of such loss shall be
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1 carried to the earliest taxable year to which such
2 loss may be carried. The amount of such loss which
3 shall be carried to each of the other taxable years
4 shall be the excess, if any, of the amount of such
5 loss over the sum of the deductions for carryback or
6 carryover of such loss allowable for each of the
7 prior taxable years to which such loss may be
8 carried.
9 (b) Any loss determined under subsection (a) of this
10 Section must be carried back or carried forward in the same
11 manner for purposes of subsections (a) and (b) of Section 201
12 of this Act as for purposes of subsections (c) and (d) of
13 Section 201 of this Act.
14 (Source: P.A. 85-731.)
15 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
16 Sec. 304. Business income of persons other than
17 residents.
18 (a) In general. The business income of a person other
19 than a resident shall be allocated to this State if such
20 person's business income is derived solely from this State.
21 If a person other than a resident derives business income
22 from this State and one or more other states, then, for tax
23 years ending on or before December 30, 1998, and except as
24 otherwise provided by this Section, such person's business
25 income shall be apportioned to this State by multiplying the
26 income by a fraction, the numerator of which is the sum of
27 the property factor (if any), the payroll factor (if any) and
28 200% of the sales factor (if any), and the denominator of
29 which is 4 reduced by the number of factors other than the
30 sales factor which have a denominator of zero and by an
31 additional 2 if the sales factor has a denominator of zero.
32 For tax years ending on or after December 31, 1998, and
33 except as otherwise provided by this Section, persons other
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1 than residents who derive business income from this State and
2 one or more other states shall compute their apportionment
3 factor by weighting their property, payroll, and sales
4 factors as provided in subsection (h) of this Section.
5 (1) Property factor.
6 (A) The property factor is a fraction, the
7 numerator of which is the average value of the person's
8 real and tangible personal property owned or rented and
9 used in the trade or business in this State during the
10 taxable year and the denominator of which is the average
11 value of all the person's real and tangible personal
12 property owned or rented and used in the trade or
13 business during the taxable year.
14 (B) Property owned by the person is valued at its
15 original cost. Property rented by the person is valued at
16 8 times the net annual rental rate. Net annual rental
17 rate is the annual rental rate paid by the person less
18 any annual rental rate received by the person from
19 sub-rentals.
20 (C) The average value of property shall be
21 determined by averaging the values at the beginning and
22 ending of the taxable year but the Director may require
23 the averaging of monthly values during the taxable year
24 if reasonably required to reflect properly the average
25 value of the person's property.
26 (2) Payroll factor.
27 (A) The payroll factor is a fraction, the numerator
28 of which is the total amount paid in this State during
29 the taxable year by the person for compensation, and the
30 denominator of which is the total compensation paid
31 everywhere during the taxable year.
32 (B) Compensation is paid in this State if:
33 (i) The individual's service is performed
34 entirely within this State;
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1 (ii) The individual's service is performed
2 both within and without this State, but the service
3 performed without this State is incidental to the
4 individual's service performed within this State; or
5 (iii) Some of the service is performed within
6 this State and either the base of operations, or if
7 there is no base of operations, the place from which
8 the service is directed or controlled is within this
9 State, or the base of operations or the place from
10 which the service is directed or controlled is not
11 in any state in which some part of the service is
12 performed, but the individual's residence is in this
13 State.
14 Beginning with taxable years ending on or after
15 December 31, 1992, for residents of states that impose a
16 comparable tax liability on residents of this State, for
17 purposes of item (i) of this paragraph (B), in the case
18 of persons who perform personal services under personal
19 service contracts for sports performances, services by
20 that person at a sporting event taking place in Illinois
21 shall be deemed to be a performance entirely within this
22 State.
23 (3) Sales factor.
24 (A) The sales factor is a fraction, the numerator
25 of which is the total sales of the person in this State
26 during the taxable year, and the denominator of which is
27 the total sales of the person everywhere during the
28 taxable year.
29 (B) Sales of tangible personal property are in this
30 State if:
31 (i) The property is delivered or shipped to a
32 purchaser, other than the United States government,
33 within this State regardless of the f. o. b. point
34 or other conditions of the sale; or
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1 (ii) The property is shipped from an office,
2 store, warehouse, factory or other place of storage
3 in this State and either the purchaser is the United
4 States government or the person is not taxable in
5 the state of the purchaser; provided, however, that
6 premises owned or leased by a person who has
7 independently contracted with the seller for the
8 printing of newspapers, periodicals or books shall
9 not be deemed to be an office, store, warehouse,
10 factory or other place of storage for purposes of
11 this Section. Sales of tangible personal property
12 are not in this State if the seller and purchaser
13 would be members of the same unitary business group
14 but for the fact that either the seller or purchaser
15 is a person with 80% or more of total business
16 activity outside of the United States and the
17 property is purchased for resale.
18 (B-1) Patents, copyrights, trademarks, and similar
19 items of intangible personal property.
20 (i) Gross receipts from the licensing, sale,
21 or other disposition of a patent, copyright,
22 trademark, or similar item of intangible personal
23 property are in this State to the extent the item is
24 utilized in this State during the year the gross
25 receipts are included in gross income.
26 (ii) Place of utilization.
27 (I) A patent is utilized in a state to
28 the extent that it is employed in production,
29 fabrication, manufacturing, or other processing
30 in the state or to the extent that a patented
31 product is produced in the state. If a patent
32 is utilized in more than one state, the extent
33 to which it is utilized in any one state shall
34 be a fraction equal to the gross receipts of
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1 the licensee or purchaser from sales or leases
2 of items produced, fabricated, manufactured, or
3 processed within that state using the patent
4 and of patented items produced within that
5 state, divided by the total of such gross
6 receipts for all states in which the patent is
7 utilized.
8 (II) A copyright is utilized in a state
9 to the extent that printing or other
10 publication originates in the state. If a
11 copyright is utilized in more than one state,
12 the extent to which it is utilized in any one
13 state shall be a fraction equal to the gross
14 receipts from sales or licenses of materials
15 printed or published in that state divided by
16 the total of such gross receipts for all states
17 in which the copyright is utilized.
18 (III) Trademarks and other items of
19 intangible personal property governed by this
20 paragraph (B-1) are utilized in the state in
21 which the commercial domicile of the licensee
22 or purchaser is located.
23 (iii) If the state of utilization of an item
24 of property governed by this paragraph (B-1) cannot
25 be determined from the taxpayer's books and records
26 or from the books and records of any person related
27 to the taxpayer within the meaning of Section 267(b)
28 of the Internal Revenue Code, 26 U.S.C. 267, the
29 gross receipts attributable to that item shall be
30 excluded from both the numerator and the denominator
31 of the sales factor.
32 (B-2) Gross receipts from the license, sale, or
33 other disposition of patents, copyrights, trademarks, and
34 similar items of intangible personal property may be
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1 included in the numerator or denominator of the sales
2 factor only if gross receipts from licenses, sales, or
3 other disposition of such items comprise more than 50% of
4 the taxpayer's total gross receipts included in gross
5 income during the tax year and during each of the 2
6 immediately preceding tax years; provided that, when a
7 taxpayer is a member of a unitary business group, such
8 determination shall be made on the basis of the gross
9 receipts of the entire unitary business group.
10 (C) Sales, other than sales governed by paragraphs
11 (B) and (B-1) of tangible personal property, are in this
12 State if:
13 (i) The income-producing activity is performed
14 in this State; or
15 (ii) The income-producing activity is
16 performed both within and without this State and a
17 greater proportion of the income-producing activity
18 is performed within this State than without this
19 State, based on performance costs.
20 (D) For taxable years ending on or after December
21 31, 1995, the following items of income shall not be
22 included in the numerator or denominator of the sales
23 factor: dividends; amounts included under Section 78 of
24 the Internal Revenue Code; and Subpart F income as
25 defined in Section 952 of the Internal Revenue Code. No
26 inference shall be drawn from the enactment of this
27 paragraph (D) in construing this Section for taxable
28 years ending before December 31, 1995.
29 (E) Paragraphs (B-1) and (B-2) shall apply to tax
30 years ending on or after December 31, 1999, provided that
31 a taxpayer may elect to apply the provisions of these
32 paragraphs to prior tax years. Such election shall be
33 made in the form and manner prescribed by the Department,
34 shall be irrevocable, and shall apply to all tax years;
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1 provided that, if a taxpayer's Illinois income tax
2 liability for any tax year, as assessed under Section 903
3 prior to January 1, 1999, was computed in a manner
4 contrary to the provisions of paragraphs (B-1) or (B-2),
5 no refund shall be payable to the taxpayer for that tax
6 year to the extent such refund is the result of applying
7 the provisions of paragraph (B-1) or (B-2) retroactively.
8 In the case of a unitary business group, such election
9 shall apply to all members of such group for every tax
10 year such group is in existence, but shall not apply to
11 any taxpayer for any period during which that taxpayer is
12 not a member of such group.
13 (b) Insurance companies.
14 (1) In general. Except as otherwise provided by
15 paragraph (2), business income of an insurance company
16 for a taxable year shall be apportioned to this State by
17 multiplying such income by a fraction, the numerator of
18 which is the direct premiums written for insurance upon
19 property or risk in this State, and the denominator of
20 which is the direct premiums written for insurance upon
21 property or risk everywhere. For purposes of this
22 subsection, the term "direct premiums written" means the
23 total amount of direct premiums written, assessments and
24 annuity considerations as reported for the taxable year
25 on the annual statement filed by the company with the
26 Illinois Director of Insurance in the form approved by
27 the National Convention of Insurance Commissioners or
28 such other form as may be prescribed in lieu thereof.
29 (2) Reinsurance. If the principal source of
30 premiums written by an insurance company consists of
31 premiums for reinsurance accepted by it, the business
32 income of such company shall be apportioned to this State
33 by multiplying such income by a fraction, the numerator
34 of which is the sum of (i) direct premiums written for
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1 insurance upon property or risk in this State, plus (ii)
2 premiums written for reinsurance accepted in respect of
3 property or risk in this State, and the denominator of
4 which is the sum of (iii) direct premiums written for
5 insurance upon property or risk everywhere, plus (iv)
6 premiums written for reinsurance accepted in respect of
7 property or risk everywhere. For purposes of this
8 paragraph, premiums written for reinsurance accepted in
9 respect of property or risk in this State, whether or not
10 otherwise determinable, may, at the election of the
11 company, be determined on the basis of the proportion
12 which premiums written for reinsurance accepted from
13 companies commercially domiciled in Illinois bears to
14 premiums written for reinsurance accepted from all
15 sources, or, alternatively, in the proportion which the
16 sum of the direct premiums written for insurance upon
17 property or risk in this State by each ceding company
18 from which reinsurance is accepted bears to the sum of
19 the total direct premiums written by each such ceding
20 company for the taxable year.
21 (c) Financial organizations.
22 (1) In general. Business income of a financial
23 organization shall be apportioned to this State by
24 multiplying such income by a fraction, the numerator of
25 which is its business income from sources within this
26 State, and the denominator of which is its business
27 income from all sources. For the purposes of this
28 subsection, the business income of a financial
29 organization from sources within this State is the sum of
30 the amounts referred to in subparagraphs (A) through (E)
31 following, but excluding the adjusted income of an
32 international banking facility as determined in paragraph
33 (2):
34 (A) Fees, commissions or other compensation
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1 for financial services rendered within this State;
2 (B) Gross profits from trading in stocks,
3 bonds or other securities managed within this State;
4 (C) Dividends, and interest from Illinois
5 customers, which are received within this State;
6 (D) Interest charged to customers at places of
7 business maintained within this State for carrying
8 debit balances of margin accounts, without deduction
9 of any costs incurred in carrying such accounts; and
10 (E) Any other gross income resulting from the
11 operation as a financial organization within this
12 State. In computing the amounts referred to in
13 paragraphs (A) through (E) of this subsection, any
14 amount received by a member of an affiliated group
15 (determined under Section 1504(a) of the Internal
16 Revenue Code but without reference to whether any
17 such corporation is an "includible corporation"
18 under Section 1504(b) of the Internal Revenue Code)
19 from another member of such group shall be included
20 only to the extent such amount exceeds expenses of
21 the recipient directly related thereto.
22 (2) International Banking Facility.
23 (A) Adjusted Income. The adjusted income of
24 an international banking facility is its income
25 reduced by the amount of the floor amount.
26 (B) Floor Amount. The floor amount shall be
27 the amount, if any, determined by multiplying the
28 income of the international banking facility by a
29 fraction, not greater than one, which is determined
30 as follows:
31 (i) The numerator shall be:
32 The average aggregate, determined on a
33 quarterly basis, of the financial
34 organization's loans to banks in foreign
SB1118 Enrolled -36- LRB9102874PTpkA
1 countries, to foreign domiciled borrowers
2 (except where secured primarily by real estate)
3 and to foreign governments and other foreign
4 official institutions, as reported for its
5 branches, agencies and offices within the state
6 on its "Consolidated Report of Condition",
7 Schedule A, Lines 2.c., 5.b., and 7.a., which
8 was filed with the Federal Deposit Insurance
9 Corporation and other regulatory authorities,
10 for the year 1980, minus
11 The average aggregate, determined on a
12 quarterly basis, of such loans (other than
13 loans of an international banking facility), as
14 reported by the financial institution for its
15 branches, agencies and offices within the
16 state, on the corresponding Schedule and lines
17 of the Consolidated Report of Condition for the
18 current taxable year, provided, however, that
19 in no case shall the amount determined in this
20 clause (the subtrahend) exceed the amount
21 determined in the preceding clause (the
22 minuend); and
23 (ii) the denominator shall be the average
24 aggregate, determined on a quarterly basis, of
25 the international banking facility's loans to
26 banks in foreign countries, to foreign
27 domiciled borrowers (except where secured
28 primarily by real estate) and to foreign
29 governments and other foreign official
30 institutions, which were recorded in its
31 financial accounts for the current taxable
32 year.
33 (C) Change to Consolidated Report of Condition
34 and in Qualification. In the event the Consolidated
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1 Report of Condition which is filed with the Federal
2 Deposit Insurance Corporation and other regulatory
3 authorities is altered so that the information
4 required for determining the floor amount is not
5 found on Schedule A, lines 2.c., 5.b. and 7.a., the
6 financial institution shall notify the Department
7 and the Department may, by regulations or otherwise,
8 prescribe or authorize the use of an alternative
9 source for such information. The financial
10 institution shall also notify the Department should
11 its international banking facility fail to qualify
12 as such, in whole or in part, or should there be any
13 amendment or change to the Consolidated Report of
14 Condition, as originally filed, to the extent such
15 amendment or change alters the information used in
16 determining the floor amount.
17 (d) Transportation services. Business income derived
18 from furnishing transportation services shall be apportioned
19 to this State in accordance with paragraphs (1) and (2):
20 (1) Such business income (other than that derived
21 from transportation by pipeline) shall be apportioned to
22 this State by multiplying such income by a fraction, the
23 numerator of which is the revenue miles of the person in
24 this State, and the denominator of which is the revenue
25 miles of the person everywhere. For purposes of this
26 paragraph, a revenue mile is the transportation of 1
27 passenger or 1 net ton of freight the distance of 1 mile
28 for a consideration. Where a person is engaged in the
29 transportation of both passengers and freight, the
30 fraction above referred to shall be determined by means
31 of an average of the passenger revenue mile fraction and
32 the freight revenue mile fraction, weighted to reflect
33 the person's
34 (A) relative railway operating income from
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1 total passenger and total freight service, as
2 reported to the Interstate Commerce Commission, in
3 the case of transportation by railroad, and
4 (B) relative gross receipts from passenger and
5 freight transportation, in case of transportation
6 other than by railroad.
7 (2) Such business income derived from
8 transportation by pipeline shall be apportioned to this
9 State by multiplying such income by a fraction, the
10 numerator of which is the revenue miles of the person in
11 this State, and the denominator of which is the revenue
12 miles of the person everywhere. For the purposes of this
13 paragraph, a revenue mile is the transportation by
14 pipeline of 1 barrel of oil, 1,000 cubic feet of gas, or
15 of any specified quantity of any other substance, the
16 distance of 1 mile for a consideration.
17 (e) Combined apportionment. Where 2 or more persons are
18 engaged in a unitary business as described in subsection
19 (a)(27) of Section 1501, a part of which is conducted in this
20 State by one or more members of the group, the business
21 income attributable to this State by any such member or
22 members shall be apportioned by means of the combined
23 apportionment method.
24 (f) Alternative allocation. If the allocation and
25 apportionment provisions of subsections (a) through (e) and
26 of subsection (h) do not fairly represent the extent of a
27 person's business activity in this State, the person may
28 petition for, or the Director may require, in respect of all
29 or any part of the person's business activity, if reasonable:
30 (1) Separate accounting;
31 (2) The exclusion of any one or more factors;
32 (3) The inclusion of one or more additional factors
33 which will fairly represent the person's business
34 activities in this State; or
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1 (4) The employment of any other method to
2 effectuate an equitable allocation and apportionment of
3 the person's business income.
4 (g) Cross reference. For allocation of business income
5 by residents, see Section 301(a).
6 (h) For tax years ending on or after December 31, 1998,
7 the apportionment factor of persons who apportion their
8 business income to this State under subsection (a) shall be
9 equal to:
10 (1) for tax years ending on or after December 31,
11 1998 and before December 31, 1999, 16 2/3% of the
12 property factor plus 16 2/3% of the payroll factor plus
13 66 2/3% of the sales factor;
14 (2) for tax years ending on or after December 31,
15 1999 and before December 31, 2000, 8 1/3% of the property
16 factor plus 8 1/3% of the payroll factor plus 83 1/3% of
17 the sales factor;
18 (3) for tax years ending on or after December 31,
19 2000, the sales factor.
20 If, in any tax year ending on or after December 31, 1998 and
21 before December 31, 2000, the denominator of the payroll,
22 property, or sales factor is zero, the apportionment factor
23 computed in paragraph (1) or (2) of this subsection for that
24 year shall be divided by an amount equal to 100% minus the
25 percentage weight given to each factor whose denominator is
26 equal to zero.
27 (Source: P.A. 89-379, eff. 1-1-96; 89-399, eff. 8-20-95;
28 89-626, eff. 8-9-96; 90-562, eff. 12-16-97; 90-613, eff.
29 7-9-98.)
30 (35 ILCS 5/405 new)
31 Sec. 405. Carryovers in certain acquisitions.
32 (a) In the case of the acquisition of assets of a
33 corporation by another corporation described in Section
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1 381(a) of the Internal Revenue Code, the acquiring
2 corporation shall succeed to and take into account, as of the
3 close of the day of distribution or transfer, all Article 2
4 credits and net losses under Section 207 of the corporation
5 from which the assets where acquired, without limitation
6 under Section 382 of the Internal Revenue Code or the
7 separate return limitation year regulations promulgated under
8 Section 1502 of the Internal Revenue Code.
9 (b) In the case of the acquisition of assets of a
10 partnership by another partnership in a transaction in which
11 the acquiring partnership is considered to be a continuation
12 of the partnership from which the assets were acquired under
13 the provisions of Section 708 of the Internal Revenue Code
14 and any regulations promulgated under that Section, the
15 acquiring partnership shall succeed to and take into account,
16 as of the close of the day of distribution or transfer, all
17 Article 2 credits and net losses under Section 207 of the
18 partnership from which the assets were acquired.
19 (c) The provisions of this amendatory Act of the 91st
20 General Assembly shall apply to all acquisitions occurring in
21 taxable years ending on or after December 31, 1986; provided
22 that if a taxpayer's Illinois income tax liability for any
23 taxable year, as assessed under Section 903 prior to January
24 1, 1999, was computed without taking into account all of the
25 Article 2 credits and net losses under Section 207 as allowed
26 by this Section:
27 (1) no refund shall be payable to the taxpayer for
28 that taxable year as the result of allowing any portion
29 of the Article 2 credits or net losses under Section 207
30 that were not taken into account in computing the tax
31 assessed prior to January 1, 1999;
32 (2) any deficiency which has not been paid may be
33 reduced (but not below zero) by the allowance of some or
34 all of the Article 2 credits or net losses under Section
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1 207 that were not taken into account in computing the tax
2 assessed prior to January 1, 1999; and
3 (3) in the case of any Article 2 credit or net loss
4 under Section 207 that, pursuant to this subsection (c),
5 could not be taken into account either in computing the
6 tax assessed prior to January 1, 1999 for a taxable year
7 or in reducing a deficiency for that taxable year under
8 paragraph (2) of subsection (c), the allowance of such
9 credit or loss in any other taxable year shall not be
10 denied on the grounds that such credit or loss should
11 properly have been claimed in that taxable year under
12 subsection (a) or (b).
13 (35 ILCS 5/502) (from Ch. 120, par. 5-502)
14 Sec. 502. Returns and notices.
15 (a) In general. A return with respect to the taxes
16 imposed by this Act shall be made by every person for any
17 taxable year:
18 (1) For which such person is liable for a tax
19 imposed by this Act, or
20 (2) In the case of a resident or in the case of a
21 corporation which is qualified to do business in this
22 State, for which such person is required to make a
23 federal income tax return, regardless of whether such
24 person is liable for a tax imposed by this Act. However,
25 this paragraph shall not require a resident to make a
26 return if such person has an Illinois base income of the
27 basic amount in Section 204(b) or less and is either
28 claimed as a dependent on another person's tax return
29 under the Internal Revenue Code of 1986, or is claimed as
30 a dependent on another person's tax return under this
31 Act.
32 (b) Fiduciaries and receivers.
33 (1) Decedents. If an individual is deceased, any
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1 return or notice required of such individual under this
2 Act shall be made by his executor, administrator, or
3 other person charged with the property of such decedent.
4 (2) Individuals under a disability. If an
5 individual is unable to make a return or notice required
6 under this Act, the return or notice required of such
7 individual shall be made by his duly authorized agent,
8 guardian, fiduciary or other person charged with the care
9 of the person or property of such individual.
10 (3) Estates and trusts. Returns or notices required
11 of an estate or a trust shall be made by the fiduciary
12 thereof.
13 (4) Receivers, trustees and assignees for
14 corporations. In a case where a receiver, trustee in
15 bankruptcy, or assignee, by order of a court of competent
16 jurisdiction, by operation of law, or otherwise, has
17 possession of or holds title to all or substantially all
18 the property or business of a corporation, whether or not
19 such property or business is being operated, such
20 receiver, trustee, or assignee shall make the returns and
21 notices required of such corporation in the same manner
22 and form as corporations are required to make such
23 returns and notices.
24 (c) Joint returns by husband and wife.
25 (1) Except as provided in paragraph (3), if a
26 husband and wife file a joint federal income tax return
27 for a taxable year they shall file a joint return under
28 this Act for such taxable year and their liabilities
29 shall be joint and several, but if the federal income tax
30 liability of either spouse is determined on a separate
31 federal income tax return, they shall file separate
32 returns under this Act.
33 (2) If neither spouse is required to file a federal
34 income tax return and either or both are required to file
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1 a return under this Act, they may elect to file separate
2 or joint returns and pursuant to such election their
3 liabilities shall be separate or joint and several.
4 (3) If either husband or wife is a resident and the
5 other is a nonresident, they shall file separate returns
6 in this State on such forms as may be required by the
7 Department in which event their tax liabilities shall be
8 separate; but they may elect to determine their joint net
9 income and file a joint return as if both were residents
10 and in such case, their liabilities shall be joint and
11 several.
12 (4) Innocent spouses.
13 (A) However, for tax liabilities arising and
14 paid prior to the effective date of this amendatory
15 Act of the 91st General Assembly, an innocent spouse
16 shall be relieved of liability for tax (including
17 interest and penalties) for any taxable year for
18 which a joint return has been made, upon submission
19 of proof that the Internal Revenue Service has made
20 a determination under Section 6013(e) of the
21 Internal Revenue Code, for the same taxable year,
22 which determination relieved the spouse from
23 liability for federal income taxes. If there is no
24 federal income tax liability at issue for the same
25 taxable year, the Department shall rely on the
26 provisions of Section 6013(e) to determine whether
27 the person requesting innocent spouse abatement of
28 tax, penalty, and interest is entitled to that
29 relief.
30 (B) For tax liabilities arising after the
31 effective date of this amendatory Act of the 91st
32 General Assembly or which arose prior to that
33 effective date, but remain unpaid as of the
34 effective date, if an individual who filed a joint
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1 return for any taxable year has made an election
2 under this paragraph, the individual's liability for
3 any tax shown on the joint return shall not exceed
4 the individual's separate return amount and the
5 individual's liability for any deficiency assessed
6 for that taxable year shall not exceed the portion
7 of the deficiency properly allocable to the
8 individual. For purposes of this paragraph:
9 (i) An election properly made pursuant to
10 Section 6015 of the Internal Revenue Code shall
11 constitute an election under this paragraph,
12 provided that the election shall not be
13 effective until the individual has notified the
14 Department of the election in the form and
15 manner prescribed by the Department.
16 (ii) If no election has been made under
17 Section 6015, the individual may make an
18 election under this paragraph in the form and
19 manner prescribed by the Department, provided
20 that no election may be made if the Department
21 finds that assets were transferred between
22 individuals filing a joint return as part of a
23 scheme by such individuals to avoid payment of
24 Illinois income tax and the election shall not
25 eliminate the individual's liability for any
26 portion of a deficiency attributable to an
27 error on the return of which the individual had
28 actual knowledge as of the date of filing.
29 (iii) In determining the separate return
30 amount or portion of any deficiency
31 attributable to an individual, the Department
32 shall follow the provisions in Section 6015(b)
33 and (c) of the Internal Revenue Code.
34 (iv) In determining the validity of an
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1 individual's election under subparagraph (ii)
2 and in determining an electing individual's
3 separate return amount or portion of any
4 deficiency under subparagraph (iii), any
5 determination made by the Secretary of the
6 Treasury under Section 6015(a) of the Internal
7 Revenue Code regarding criteria for eligibility
8 or under Section 6015(b) or (c) of the Internal
9 Revenue Code regarding the allocation of any
10 item of income, deduction, payment, or credit
11 between an individual making the federal
12 election and that individual's spouse shall be
13 conclusively presumed to be correct. With
14 respect to any item that is not the subject of
15 a determination by the Secretary of the
16 Treasury, in any proceeding involving this
17 subsection, the individual making the election
18 shall have the burden of proof with respect to
19 any item except that the Department shall have
20 the burden of proof with respect to items in
21 subdivision (ii).
22 (v) Any election made by an individual
23 under this subsection shall apply to all years
24 for which that individual and the spouse named
25 in the election have filed a joint return.
26 (vi) After receiving a notice that the
27 federal election has been made or after
28 receiving an election under subdivision (ii),
29 the Department shall take no collection action
30 against the electing individual for any
31 liability arising from a joint return covered
32 by the election until the Department has
33 notified the electing individual in writing
34 that the election is invalid or of the portion
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1 of the liability the Department has allocated
2 to the electing individual. Within 60 days
3 (150 days if the individual is outside the
4 United States) after the issuance of such
5 notification, the individual may file a written
6 protest of the denial of the election or of the
7 Department's determination of the liability
8 allocated to him or her and shall be granted a
9 hearing within the Department under the
10 provisions of Section 908. If a protest is
11 filed, the Department shall take no collection
12 action against the electing individual until
13 the decision regarding the protest has become
14 final under subsection (d) of Section 908 or,
15 if administrative review of the Department's
16 decision is requested under Section 1201, until
17 the decision of the court becomes final.
18 (d) Partnerships. Every partnership having any base
19 income allocable to this State in accordance with section
20 305(c) shall retain information concerning all items of
21 income, gain, loss and deduction; the names and addresses of
22 all of the partners, or names and addresses of members of a
23 limited liability company, or other persons who would be
24 entitled to share in the base income of the partnership if
25 distributed; the amount of the distributive share of each;
26 and such other pertinent information as the Department may by
27 forms or regulations prescribe. The partnership shall make
28 that information available to the Department when requested
29 by the Department.
30 (e) For taxable years ending on or after December 31,
31 1985, and before December 31, 1993, taxpayers that are
32 corporations (other than Subchapter S corporations) having
33 the same taxable year and that are members of the same
34 unitary business group may elect to be treated as one
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1 taxpayer for purposes of any original return, amended return
2 which includes the same taxpayers of the unitary group which
3 joined in the election to file the original return,
4 extension, claim for refund, assessment, collection and
5 payment and determination of the group's tax liability under
6 this Act. This subsection (e) does not permit the election to
7 be made for some, but not all, of the purposes enumerated
8 above. For taxable years ending on or after December 31,
9 1987, corporate members (other than Subchapter S
10 corporations) of the same unitary business group making this
11 subsection (e) election are not required to have the same
12 taxable year.
13 For taxable years ending on or after December 31, 1993,
14 taxpayers that are corporations (other than Subchapter S
15 corporations) and that are members of the same unitary
16 business group shall be treated as one taxpayer for purposes
17 of any original return, amended return which includes the
18 same taxpayers of the unitary group which joined in filing
19 the original return, extension, claim for refund, assessment,
20 collection and payment and determination of the group's tax
21 liability under this Act.
22 (f) The Department may promulgate regulations to permit
23 nonresident individual partners of the same partnership,
24 nonresident Subchapter S corporation shareholders of the same
25 Subchapter S corporation, and nonresident individuals
26 transacting an insurance business in Illinois under a Lloyds
27 plan of operation, and nonresident individual members of the
28 same limited liability company that is treated as a
29 partnership under Section 1501 (a)(16) of this Act, to file
30 composite individual income tax returns reflecting the
31 composite income of such individuals allocable to Illinois
32 and to make composite individual income tax payments. The
33 Department may by regulation also permit such composite
34 returns to include the income tax owed by Illinois residents
SB1118 Enrolled -48- LRB9102874PTpkA
1 attributable to their income from partnerships, Subchapter S
2 corporations, insurance businesses organized under a Lloyds
3 plan of operation, or limited liability companies that are
4 treated as partnership under Section 1501 (a)(16) of this
5 Act, in which case such Illinois residents will be permitted
6 to claim credits on their individual returns for their shares
7 of the composite tax payments. This subsection (f) applies
8 to taxable years ending on or after December 31, 1987.
9 (g) The Department may adopt rules to authorize the
10 electronic filing of any return required to be filed under
11 this Section.
12 (Source: P.A. 90-613, eff. 7-9-98.)
13 (35 ILCS 5/601.1) (Ch. 120, par. 6-601.1)
14 Sec. 601.1. (a) Beginning on October 1, 1993, a taxpayer
15 who has an average monthly tax liability of $150,000 or more
16 under Article 7 of this Act shall make all payments required
17 by rules of the Department by electronic funds transfer.
18 Beginning October 1, 1993, a taxpayer who has an average
19 quarterly estimated tax payment obligation of $450,000 or
20 more under Article 8 of this Act shall make all payments
21 required by rules of the Department by electronic funds
22 transfer. Beginning on October 1, 1994, a taxpayer who has
23 an average monthly tax liability of $100,000 or more under
24 Article 7 of this Act shall make all payments required by
25 rules of the Department by electronic funds transfer.
26 Beginning October 1, 1994, a taxpayer who has an average
27 quarterly estimated tax payment obligation of $300,000 or
28 more under Article 8 of this Act shall make all payments
29 required by rules of the Department by electronic funds
30 transfer. Beginning on October 1, 1995, a taxpayer who has
31 an average monthly tax liability of $50,000 or more under
32 Article 7 of this Act shall make all payments required by
33 rules of the Department by electronic funds transfer.
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1 Beginning October 1, 1995, a taxpayer who has an average
2 quarterly estimated tax payment obligation of $150,000 or
3 more under Article 8 of this Act shall make all payments
4 required by rules of the Department by electronic funds
5 transfer. Beginning on October 1, 2000, and for all liability
6 periods thereafter, a taxpayer who has an average annual tax
7 liability of $200,000 or more under Article 7 of this Act
8 shall make all payments required by rules of the Department
9 by electronic funds transfer. Beginning October 1, 2000, a
10 taxpayer who has an average quarterly estimated tax payment
11 obligation of $50,000 or more under Article 8 of this Act
12 shall make all payments required by rules of the Department
13 by electronic funds transfer.
14 (b) Any taxpayer who is not required to make payments by
15 electronic funds transfer may make payments by electronic
16 funds transfer with the permission of the Department.
17 (c) All taxpayers required to make payments by
18 electronic funds transfer and any taxpayers who wish to
19 voluntarily make payments by electronic funds transfer shall
20 make those payments in the manner authorized by the
21 Department.
22 (d) The Department shall notify all taxpayers required
23 to make payments by electronic funds transfer. All
24 taxpayers notified by the Department shall make payments by
25 electronic funds transfer for a minimum of one year beginning
26 on October 1. In determining the threshold amounts under
27 subsection (a), the Department shall calculate the averages
28 as follows:
29 (1) the total liability under Article 7 for the
30 preceding tax year (and, prior to October 1, 2000,
31 divided by 12); or
32 (2) for purposes of estimated payments under
33 Article 8, the total tax obligation of the taxpayer for
34 the previous tax year divided by 4.
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1 (e) The Department shall adopt such rules as are
2 necessary to effectuate a program of electronic funds
3 transfer and the requirements of this Section.
4 (Source: P.A. 87-1132; 87-1246.)
5 (35 ILCS 5/905) (from Ch. 120, par. 9-905)
6 Sec. 905. Limitations on Notices of Deficiency.
7 (a) In general. Except as otherwise provided in this
8 Act:
9 (1) A notice of deficiency shall be issued not
10 later than 3 years after the date the return was filed,
11 and
12 (2) No deficiency shall be assessed or collected
13 with respect to the year for which the return was filed
14 unless such notice is issued within such period.
15 (b) Omission of more than 25% of income. If the taxpayer
16 omits from base income an amount properly includible therein
17 which is in excess of 25% of the amount of base income stated
18 in the return, a notice of deficiency may be issued not later
19 than 6 years after the return was filed. For purposes of this
20 paragraph, there shall not be taken into account any amount
21 which is omitted in the return if such amount is disclosed in
22 the return, or in a statement attached to the return, in a
23 manner adequate to apprise the Department of the nature and
24 the amount of such item.
25 (c) No return or fraudulent return. If no return is
26 filed or a false and fraudulent return is filed with intent
27 to evade the tax imposed by this Act, a notice of deficiency
28 may be issued at any time.
29 (d) Failure to report federal change. If a taxpayer
30 fails to notify the Department in any case where notification
31 is required by Section 304(c) or 506(b), or fails to report a
32 change or correction which is treated in the same manner as
33 if it were a deficiency for federal income tax purposes, a
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1 notice of deficiency may be issued (i) at any time or (ii) on
2 or after the effective date of this amendatory Act of the
3 91st General Assembly, at any time for the taxable year for
4 which the notification is required or for any taxable year to
5 which the taxpayer may carry an Article 2 credit, or a
6 Section 207 loss, earned, incurred, or used in the year for
7 which the notification is required; provided, however, that
8 the amount of any proposed assessment set forth in the notice
9 shall be limited to the amount of any deficiency resulting
10 under this Act from the recomputation of the taxpayer's net
11 income, Article 2 credits, or Section 207 loss earned,
12 incurred, or used in the taxable year for which the
13 notification is required after giving effect to the item or
14 items required to be reported.
15 (e) Report of federal change.
16 (1) Before the effective date of this amendatory
17 Act of the 91st General Assembly, in any case where
18 notification of an alteration is given as required by
19 Section 506(b), a notice of deficiency may be issued at
20 any time within 2 years after the date such notification
21 is given, provided, however, that the amount of any
22 proposed assessment set forth in such notice shall be
23 limited to the amount of any deficiency resulting under
24 this Act from recomputation of the taxpayer's net income,
25 net loss, or Article 2 credits for the taxable year after
26 giving effect to the item or items reflected in the
27 reported alteration.
28 (2) On and after the effective date of this
29 amendatory Act of the 91st General Assembly, in any case
30 where notification of an alteration is given as required
31 by Section 506(b), a notice of deficiency may be issued
32 at any time within 2 years after the date such
33 notification is given for the taxable year for which the
34 notification is given or for any taxable year to which
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1 the taxpayer may carry an Article 2 credit, or a Section
2 207 loss, earned, incurred, or used in the year for which
3 the notification is given, provided, however, that the
4 amount of any proposed assessment set forth in such
5 notice shall be limited to the amount of any deficiency
6 resulting under this Act from recomputation of the
7 taxpayer's net income, Article 2 credits, or Section 207
8 loss earned, incurred, or used in the taxable year for
9 which the notification is given after giving effect to
10 the item or items reflected in the reported alteration.
11 (f) Extension by agreement. Where, before the expiration
12 of the time prescribed in this section for the issuance of a
13 notice of deficiency, both the Department and the taxpayer
14 shall have consented in writing to its issuance after such
15 time, such notice may be issued at any time prior to the
16 expiration of the period agreed upon. The period so agreed
17 upon may be extended by subsequent agreements in writing made
18 before the expiration of the period previously agreed upon.
19 (g) Erroneous refunds. In any case in which there has
20 been an erroneous refund of tax payable under this Act, a
21 notice of deficiency may be issued at any time within 2 years
22 from the making of such refund, or within 5 years from the
23 making of such refund if it appears that any part of the
24 refund was induced by fraud or the misrepresentation of a
25 material fact, provided, however, that the amount of any
26 proposed assessment set forth in such notice shall be limited
27 to the amount of such erroneous refund.
28 Beginning July 1, 1993, in any case in which there has
29 been a refund of tax payable under this Act attributable to a
30 net loss carryback as provided for in Section 207, and that
31 refund is subsequently determined to be an erroneous refund
32 due to a reduction in the amount of the net loss which was
33 originally carried back, a notice of deficiency for the
34 erroneous refund amount may be issued at any time during the
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1 same time period in which a notice of deficiency can be
2 issued on the loss year creating the carryback amount and
3 subsequent erroneous refund. The amount of any proposed
4 assessment set forth in the notice shall be limited to the
5 amount of such erroneous refund.
6 (h) Time return deemed filed. For purposes of this
7 Section a tax return filed before the last day prescribed by
8 law (including any extension thereof) shall be deemed to have
9 been filed on such last day.
10 (i) Request for prompt determination of liability. For
11 purposes of Subsection (a)(1), in the case of a tax return
12 required under this Act in respect of a decedent, or by his
13 estate during the period of administration, or by a
14 corporation, the period referred to in such Subsection shall
15 be 18 months after a written request for prompt determination
16 of liability is filed with the Department (at such time and
17 in such form and manner as the Department shall by
18 regulations prescribe) by the executor, administrator, or
19 other fiduciary representing the estate of such decedent, or
20 by such corporation, but not more than 3 years after the date
21 the return was filed. This Subsection shall not apply in the
22 case of a corporation unless:
23 (1) (A) Such written request notifies the
24 Department that the corporation contemplates dissolution
25 at or before the expiration of such 18-month period, (B)
26 the dissolution is begun in good faith before the
27 expiration of such 18-month period, and (C) the
28 dissolution is completed;
29 (2) (A) Such written request notifies the
30 Department that a dissolution has in good faith been
31 begun, and (B) the dissolution is completed; or
32 (3) A dissolution has been completed at the time
33 such written request is made.
34 (j) Withholding tax. In the case of returns required
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1 under Article 7 of this Act (with respect to any amounts
2 withheld as tax or any amounts required to have been withheld
3 as tax) a notice of deficiency shall be issued not later than
4 3 years after the 15th day of the 4th month following the
5 close of the calendar year in which such withholding was
6 required.
7 (k) Penalties for failure to make information reports.
8 A notice of deficiency for the penalties provided by
9 Subsection 1405.1(c) of this Act may not be issued more than
10 3 years after the due date of the reports with respect to
11 which the penalties are asserted.
12 (l) Penalty for failure to file withholding returns. A
13 notice of deficiency for penalties provided by Section 1004
14 of this Act for taxpayer's failure to file withholding
15 returns may not be issued more than three years after the
16 15th day of the 4th month following the close of the calendar
17 year in which the withholding giving rise to taxpayer's
18 obligation to file those returns occurred.
19 (m) Transferee liability. A notice of deficiency may be
20 issued to a transferee relative to a liability asserted under
21 Section 1405 during time periods defined as follows:
22 1) Initial Transferee. In the case of the
23 liability of an initial transferee, up to 2 years after
24 the expiration of the period of limitation for assessment
25 against the transferor, except that if a court proceeding
26 for review of the assessment against the transferor has
27 begun, then up to 2 years after the return of the
28 certified copy of the judgment in the court proceeding.
29 2) Transferee of Transferee. In the case of the
30 liability of a transferee, up to 2 years after the
31 expiration of the period of limitation for assessment
32 against the preceding transferee, but not more than 3
33 years after the expiration of the period of limitation
34 for assessment against the initial transferor; except
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1 that if, before the expiration of the period of
2 limitation for the assessment of the liability of the
3 transferee, a court proceeding for the collection of the
4 tax or liability in respect thereof has been begun
5 against the initial transferor or the last preceding
6 transferee, as the case may be, then the period of
7 limitation for assessment of the liability of the
8 transferee shall expire 2 years after the return of the
9 certified copy of the judgment in the court proceeding.
10 (Source: P.A. 90-491, eff. 1-1-98.)
11 (35 ILCS 5/911) (from Ch. 120, par. 9-911)
12 Sec. 911. Limitations on Claims for Refund.
13 (a) In general. Except as otherwise provided in this
14 Act:
15 (1) A claim for refund shall be filed not later
16 than 3 years after the date the return was filed (in the
17 case of returns required under Article 7 of this Act
18 respecting any amounts withheld as tax, not later than 3
19 years after the 15th day of the 4th month following the
20 close of the calendar year in which such withholding was
21 made), or one year after the date the tax was paid,
22 whichever is the later; and
23 (2) No credit or refund shall be allowed or made
24 with respect to the year for which the claim was filed
25 unless such claim is filed within such period.
26 (b) Federal changes.
27 (1) In general. In any case where notification of
28 an alteration is required by Section 506 (b), a claim for
29 refund may be filed within 2 years after the date on
30 which such notification was due (regardless of whether
31 such notice was given), but the amount recoverable
32 pursuant to a claim filed under this Section shall be
33 limited to the amount of any overpayment resulting under
SB1118 Enrolled -56- LRB9102874PTpkA
1 this Act from recomputation of the taxpayer's net income,
2 net loss, or Article 2 credits for the taxable year after
3 giving effect to the item or items reflected in the
4 alteration required to be reported.
5 (2) Tentative carryback adjustments paid before
6 January 1, 1974. If, as the result of the payment before
7 January 1, 1974 of a federal tentative carryback
8 adjustment, a notification of an alteration is required
9 under Section 506 (b), a claim for refund may be filed at
10 any time before January 1, 1976, but the amount
11 recoverable pursuant to a claim filed under this Section
12 shall be limited to the amount of any overpayment
13 resulting under this Act from recomputation of the
14 taxpayer's base income for the taxable year after giving
15 effect to the federal alteration resulting from the
16 tentative carryback adjustment irrespective of any
17 limitation imposed in paragraph (l) of this subsection.
18 (c) Extension by agreement. Where, before the
19 expiration of the time prescribed in this section for the
20 filing of a claim for refund, both the Department and the
21 claimant shall have consented in writing to its filing after
22 such time, such claim may be filed at any time prior to the
23 expiration of the period agreed upon. The period so agreed
24 upon may be extended by subsequent agreements in writing made
25 before the expiration of the period previously agreed upon.
26 (d) Limit on amount of credit or refund.
27 (1) Limit where claim filed within 3-year period.
28 If the claim was filed by the claimant during the 3-year
29 period prescribed in subsection (a), the amount of the
30 credit or refund shall not exceed the portion of the tax
31 paid within the period, immediately preceding the filing
32 of the claim, equal to 3 years plus the period of any
33 extension of time for filing the return.
34 (2) Limit where claim not filed within 3-year
SB1118 Enrolled -57- LRB9102874PTpkA
1 period. If the claim was not filed within such 3-year
2 period, the amount of the credit or refund shall not
3 exceed the portion of the tax paid during the one year
4 immediately preceding the filing of the claim.
5 (e) Time return deemed filed. For purposes of this
6 section a tax return filed before the last day prescribed by
7 law for the filing of such return (including any extensions
8 thereof) shall be deemed to have been filed on such last day.
9 (f) No claim for refund based on the taxpayer's taking a
10 credit for estimated tax payments as provided by Section 601
11 (b) (2) or for any amount paid by a taxpayer pursuant to
12 Section 602(a) or for any amount of credit for tax withheld
13 pursuant to Section 701 may be filed more than 3 years after
14 the due date, as provided by Section 505, of the return which
15 was required to be filed relative to the taxable year for
16 which the payments were made or for which the tax was
17 withheld. The changes in this subsection (f) made by this
18 amendatory Act of 1987 shall apply to all taxable years
19 ending on or after December 31, 1969.
20 (g) Special Period of Limitation with Respect to Net
21 Loss Carrybacks. If the claim for refund relates to an
22 overpayment attributable to a net loss carryback as provided
23 by Section 207, in lieu of the 3 year period of limitation
24 prescribed in subsection (a), the period shall be that period
25 which ends 3 years after the time prescribed by law for
26 filing the return (including extensions thereof) for the
27 taxable year of the net loss which results in such carryback
28 (or, on and after the effective date of this amendatory Act
29 of the 91st General Assembly, with respect to a change in the
30 carryover of an Article 2 credit to a taxable year resulting
31 from the carryback of a Section 207 loss incurred in a
32 taxable year beginning on or after January 1, 2000, the
33 period shall be that period that ends 3 years after the time
34 prescribed by law for filing the return (including extensions
SB1118 Enrolled -58- LRB9102874PTpkA
1 of that time) for that subsequent taxable year), or the
2 period prescribed in subsection (c) in respect of such
3 taxable year, whichever expires later. In the case of such a
4 claim, the amount of the refund may exceed the portion of the
5 tax paid within the period provided in subsection (d) to the
6 extent of the amount of the overpayment attributable to such
7 carryback. On and after the effective date of this amendatory
8 Act of the 91st General Assembly, if the claim for refund
9 relates to an overpayment attributable to the carryover of an
10 Article 2 credit, or of a Section 207 loss, earned, incurred
11 (in a taxable year beginning on or after January 1, 2000), or
12 used in a year for which a notification of a change affecting
13 federal taxable income must be filed under subsection (b) of
14 Section 506, the claim may be filed within the period
15 prescribed in paragraph (1) of subsection (b) in respect of
16 the year for which the notification is required. In the case
17 of such a claim, the amount of the refund may exceed the
18 portion of the tax paid within the period provided in
19 subsection (d) to the extent of the amount of the overpayment
20 attributable to the recomputation of the taxpayer's Article 2
21 credits, or Section 207 loss, earned, incurred, or used in
22 the taxable year for which the notification is given.
23 (Source: P.A. 90-491, eff. 1-1-98.)
24 Section 10. The Use Tax Act is amended by changing
25 Sections 3-30, 9, and 10 as follows:
26 (35 ILCS 105/3-30) (from Ch. 120, par. 439.3-30)
27 Sec. 3-30. Graphic arts production. For the purposes of
28 this Act, "graphic arts production" means printing, including
29 ink jet printing, by one or more of the common processes
30 described in Groups 323110 through 323122 of Subsector 323,
31 Groups 511110 through 511199 of Subsector 511, and Group
32 512230 of Subsector 512 of the North American Industry
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1 Classification System published by the U.S. Office of
2 Management and Budget, 1997 edition or graphic arts
3 production services as those processes and services are
4 defined in Major Group 27 of the U. S. Standard Industrial
5 Classification Manual. Graphic arts production does not
6 include (i) the transfer of images onto paper or other
7 tangible personal property by means of photocopying or (ii)
8 final printed products in electronic or audio form, including
9 the production of software or audio-books.
10 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
11 86-953; 86-1394; 86-1475.)
12 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
13 Sec. 9. Except as to motor vehicles, watercraft,
14 aircraft, and trailers that are required to be registered
15 with an agency of this State, each retailer required or
16 authorized to collect the tax imposed by this Act shall pay
17 to the Department the amount of such tax (except as otherwise
18 provided) at the time when he is required to file his return
19 for the period during which such tax was collected, less a
20 discount of 2.1% prior to January 1, 1990, and 1.75% on and
21 after January 1, 1990, or $5 per calendar year, whichever is
22 greater, which is allowed to reimburse the retailer for
23 expenses incurred in collecting the tax, keeping records,
24 preparing and filing returns, remitting the tax and supplying
25 data to the Department on request. In the case of retailers
26 who report and pay the tax on a transaction by transaction
27 basis, as provided in this Section, such discount shall be
28 taken with each such tax remittance instead of when such
29 retailer files his periodic return. A retailer need not
30 remit that part of any tax collected by him to the extent
31 that he is required to remit and does remit the tax imposed
32 by the Retailers' Occupation Tax Act, with respect to the
33 sale of the same property.
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1 Where such tangible personal property is sold under a
2 conditional sales contract, or under any other form of sale
3 wherein the payment of the principal sum, or a part thereof,
4 is extended beyond the close of the period for which the
5 return is filed, the retailer, in collecting the tax (except
6 as to motor vehicles, watercraft, aircraft, and trailers that
7 are required to be registered with an agency of this State),
8 may collect for each tax return period, only the tax
9 applicable to that part of the selling price actually
10 received during such tax return period.
11 Except as provided in this Section, on or before the
12 twentieth day of each calendar month, such retailer shall
13 file a return for the preceding calendar month. Such return
14 shall be filed on forms prescribed by the Department and
15 shall furnish such information as the Department may
16 reasonably require.
17 The Department may require returns to be filed on a
18 quarterly basis. If so required, a return for each calendar
19 quarter shall be filed on or before the twentieth day of the
20 calendar month following the end of such calendar quarter.
21 The taxpayer shall also file a return with the Department for
22 each of the first two months of each calendar quarter, on or
23 before the twentieth day of the following calendar month,
24 stating:
25 1. The name of the seller;
26 2. The address of the principal place of business
27 from which he engages in the business of selling tangible
28 personal property at retail in this State;
29 3. The total amount of taxable receipts received by
30 him during the preceding calendar month from sales of
31 tangible personal property by him during such preceding
32 calendar month, including receipts from charge and time
33 sales, but less all deductions allowed by law;
34 4. The amount of credit provided in Section 2d of
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1 this Act;
2 5. The amount of tax due;
3 5-5. The signature of the taxpayer; and
4 6. Such other reasonable information as the
5 Department may require.
6 If a taxpayer fails to sign a return within 30 days after
7 the proper notice and demand for signature by the Department,
8 the return shall be considered valid and any amount shown to
9 be due on the return shall be deemed assessed.
10 Beginning October 1, 1993, a taxpayer who has an average
11 monthly tax liability of $150,000 or more shall make all
12 payments required by rules of the Department by electronic
13 funds transfer. Beginning October 1, 1994, a taxpayer who has
14 an average monthly tax liability of $100,000 or more shall
15 make all payments required by rules of the Department by
16 electronic funds transfer. Beginning October 1, 1995, a
17 taxpayer who has an average monthly tax liability of $50,000
18 or more shall make all payments required by rules of the
19 Department by electronic funds transfer. Beginning October 1,
20 2000, a taxpayer who has an annual tax liability of $200,000
21 or more shall make all payments required by rules of the
22 Department by electronic funds transfer. The term "annual
23 tax liability" shall be the sum of the taxpayer's liabilities
24 under this Act, and under all other State and local
25 occupation and use tax laws administered by the Department,
26 for the immediately preceding calendar year. The term
27 "average monthly tax liability" means the sum of the
28 taxpayer's liabilities under this Act, and under all other
29 State and local occupation and use tax laws administered by
30 the Department, for the immediately preceding calendar year
31 divided by 12.
32 Before August 1 of each year beginning in 1993, the
33 Department shall notify all taxpayers required to make
34 payments by electronic funds transfer. All taxpayers required
SB1118 Enrolled -62- LRB9102874PTpkA
1 to make payments by electronic funds transfer shall make
2 those payments for a minimum of one year beginning on October
3 1.
4 Any taxpayer not required to make payments by electronic
5 funds transfer may make payments by electronic funds transfer
6 with the permission of the Department.
7 All taxpayers required to make payment by electronic
8 funds transfer and any taxpayers authorized to voluntarily
9 make payments by electronic funds transfer shall make those
10 payments in the manner authorized by the Department.
11 The Department shall adopt such rules as are necessary to
12 effectuate a program of electronic funds transfer and the
13 requirements of this Section.
14 Before October 1, 2000, if the taxpayer's average monthly
15 tax liability to the Department under this Act, the
16 Retailers' Occupation Tax Act, the Service Occupation Tax
17 Act, the Service Use Tax Act was $10,000 or more during the
18 preceding 4 complete calendar quarters, he shall file a
19 return with the Department each month by the 20th day of the
20 month next following the month during which such tax
21 liability is incurred and shall make payments to the
22 Department on or before the 7th, 15th, 22nd and last day of
23 the month during which such liability is incurred. On and
24 after October 1, 2000, if the taxpayer's average monthly tax
25 liability to the Department under this Act, the Retailers'
26 Occupation Tax Act, the Service Occupation Tax Act, and the
27 Service Use Tax Act was $20,000 or more during the preceding
28 4 complete calendar quarters, he shall file a return with the
29 Department each month by the 20th day of the month next
30 following the month during which such tax liability is
31 incurred and shall make payment to the Department on or
32 before the 7th, 15th, 22nd and last day or the month during
33 which such liability is incurred. If the month during which
34 such tax liability is incurred began prior to January 1,
SB1118 Enrolled -63- LRB9102874PTpkA
1 1985, each payment shall be in an amount equal to 1/4 of the
2 taxpayer's actual liability for the month or an amount set by
3 the Department not to exceed 1/4 of the average monthly
4 liability of the taxpayer to the Department for the preceding
5 4 complete calendar quarters (excluding the month of highest
6 liability and the month of lowest liability in such 4 quarter
7 period). If the month during which such tax liability is
8 incurred begins on or after January 1, 1985, and prior to
9 January 1, 1987, each payment shall be in an amount equal to
10 22.5% of the taxpayer's actual liability for the month or
11 27.5% of the taxpayer's liability for the same calendar month
12 of the preceding year. If the month during which such tax
13 liability is incurred begins on or after January 1, 1987, and
14 prior to January 1, 1988, each payment shall be in an amount
15 equal to 22.5% of the taxpayer's actual liability for the
16 month or 26.25% of the taxpayer's liability for the same
17 calendar month of the preceding year. If the month during
18 which such tax liability is incurred begins on or after
19 January 1, 1988, and prior to January 1, 1989, or begins on
20 or after January 1, 1996, each payment shall be in an amount
21 equal to 22.5% of the taxpayer's actual liability for the
22 month or 25% of the taxpayer's liability for the same
23 calendar month of the preceding year. If the month during
24 which such tax liability is incurred begins on or after
25 January 1, 1989, and prior to January 1, 1996, each payment
26 shall be in an amount equal to 22.5% of the taxpayer's actual
27 liability for the month or 25% of the taxpayer's liability
28 for the same calendar month of the preceding year or 100% of
29 the taxpayer's actual liability for the quarter monthly
30 reporting period. The amount of such quarter monthly
31 payments shall be credited against the final tax liability of
32 the taxpayer's return for that month. Before October 1,
33 2000, once applicable, the requirement of the making of
34 quarter monthly payments to the Department shall continue
SB1118 Enrolled -64- LRB9102874PTpkA
1 until such taxpayer's average monthly liability to the
2 Department during the preceding 4 complete calendar quarters
3 (excluding the month of highest liability and the month of
4 lowest liability) is less than $9,000, or until such
5 taxpayer's average monthly liability to the Department as
6 computed for each calendar quarter of the 4 preceding
7 complete calendar quarter period is less than $10,000.
8 However, if a taxpayer can show the Department that a
9 substantial change in the taxpayer's business has occurred
10 which causes the taxpayer to anticipate that his average
11 monthly tax liability for the reasonably foreseeable future
12 will fall below the $10,000 threshold stated above, then such
13 taxpayer may petition the Department for change in such
14 taxpayer's reporting status. On and after October 1, 2000,
15 once applicable, the requirement of the making of quarter
16 monthly payments to the Department shall continue until such
17 taxpayer's average monthly liability to the Department during
18 the preceding 4 complete calendar quarters (excluding the
19 month of highest liability and the month of lowest liability)
20 is less than $19,000 or until such taxpayer's average monthly
21 liability to the Department as computed for each calendar
22 quarter of the 4 preceding complete calendar quarter period
23 is less than $20,000. However, if a taxpayer can show the
24 Department that a substantial change in the taxpayer's
25 business has occurred which causes the taxpayer to anticipate
26 that his average monthly tax liability for the reasonably
27 foreseeable future will fall below the $20,000 threshold
28 stated above, then such taxpayer may petition the Department
29 for a change in such taxpayer's reporting status. The
30 Department shall change such taxpayer's reporting status
31 unless it finds that such change is seasonal in nature and
32 not likely to be long term. If any such quarter monthly
33 payment is not paid at the time or in the amount required by
34 this Section, then the taxpayer shall be liable for penalties
SB1118 Enrolled -65- LRB9102874PTpkA
1 and interest on the difference between the minimum amount due
2 and the amount of such quarter monthly payment actually and
3 timely paid, except insofar as the taxpayer has previously
4 made payments for that month to the Department in excess of
5 the minimum payments previously due as provided in this
6 Section. The Department shall make reasonable rules and
7 regulations to govern the quarter monthly payment amount and
8 quarter monthly payment dates for taxpayers who file on other
9 than a calendar monthly basis.
10 If any such payment provided for in this Section exceeds
11 the taxpayer's liabilities under this Act, the Retailers'
12 Occupation Tax Act, the Service Occupation Tax Act and the
13 Service Use Tax Act, as shown by an original monthly return,
14 the Department shall issue to the taxpayer a credit
15 memorandum no later than 30 days after the date of payment,
16 which memorandum may be submitted by the taxpayer to the
17 Department in payment of tax liability subsequently to be
18 remitted by the taxpayer to the Department or be assigned by
19 the taxpayer to a similar taxpayer under this Act, the
20 Retailers' Occupation Tax Act, the Service Occupation Tax Act
21 or the Service Use Tax Act, in accordance with reasonable
22 rules and regulations to be prescribed by the Department,
23 except that if such excess payment is shown on an original
24 monthly return and is made after December 31, 1986, no credit
25 memorandum shall be issued, unless requested by the taxpayer.
26 If no such request is made, the taxpayer may credit such
27 excess payment against tax liability subsequently to be
28 remitted by the taxpayer to the Department under this Act,
29 the Retailers' Occupation Tax Act, the Service Occupation Tax
30 Act or the Service Use Tax Act, in accordance with reasonable
31 rules and regulations prescribed by the Department. If the
32 Department subsequently determines that all or any part of
33 the credit taken was not actually due to the taxpayer, the
34 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
SB1118 Enrolled -66- LRB9102874PTpkA
1 by 2.1% or 1.75% of the difference between the credit taken
2 and that actually due, and the taxpayer shall be liable for
3 penalties and interest on such difference.
4 If the retailer is otherwise required to file a monthly
5 return and if the retailer's average monthly tax liability to
6 the Department does not exceed $200, the Department may
7 authorize his returns to be filed on a quarter annual basis,
8 with the return for January, February, and March of a given
9 year being due by April 20 of such year; with the return for
10 April, May and June of a given year being due by July 20 of
11 such year; with the return for July, August and September of
12 a given year being due by October 20 of such year, and with
13 the return for October, November and December of a given year
14 being due by January 20 of the following year.
15 If the retailer is otherwise required to file a monthly
16 or quarterly return and if the retailer's average monthly tax
17 liability to the Department does not exceed $50, the
18 Department may authorize his returns to be filed on an annual
19 basis, with the return for a given year being due by January
20 20 of the following year.
21 Such quarter annual and annual returns, as to form and
22 substance, shall be subject to the same requirements as
23 monthly returns.
24 Notwithstanding any other provision in this Act
25 concerning the time within which a retailer may file his
26 return, in the case of any retailer who ceases to engage in a
27 kind of business which makes him responsible for filing
28 returns under this Act, such retailer shall file a final
29 return under this Act with the Department not more than one
30 month after discontinuing such business.
31 In addition, with respect to motor vehicles, watercraft,
32 aircraft, and trailers that are required to be registered
33 with an agency of this State, every retailer selling this
34 kind of tangible personal property shall file, with the
SB1118 Enrolled -67- LRB9102874PTpkA
1 Department, upon a form to be prescribed and supplied by the
2 Department, a separate return for each such item of tangible
3 personal property which the retailer sells, except that
4 where, in the same transaction, a retailer of aircraft,
5 watercraft, motor vehicles or trailers transfers more than
6 one aircraft, watercraft, motor vehicle or trailer to another
7 aircraft, watercraft, motor vehicle or trailer retailer for
8 the purpose of resale, that seller for resale may report the
9 transfer of all the aircraft, watercraft, motor vehicles or
10 trailers involved in that transaction to the Department on
11 the same uniform invoice-transaction reporting return form.
12 For purposes of this Section, "watercraft" means a Class 2,
13 Class 3, or Class 4 watercraft as defined in Section 3-2 of
14 the Boat Registration and Safety Act, a personal watercraft,
15 or any boat equipped with an inboard motor.
16 The transaction reporting return in the case of motor
17 vehicles or trailers that are required to be registered with
18 an agency of this State, shall be the same document as the
19 Uniform Invoice referred to in Section 5-402 of the Illinois
20 Vehicle Code and must show the name and address of the
21 seller; the name and address of the purchaser; the amount of
22 the selling price including the amount allowed by the
23 retailer for traded-in property, if any; the amount allowed
24 by the retailer for the traded-in tangible personal property,
25 if any, to the extent to which Section 2 of this Act allows
26 an exemption for the value of traded-in property; the balance
27 payable after deducting such trade-in allowance from the
28 total selling price; the amount of tax due from the retailer
29 with respect to such transaction; the amount of tax collected
30 from the purchaser by the retailer on such transaction (or
31 satisfactory evidence that such tax is not due in that
32 particular instance, if that is claimed to be the fact); the
33 place and date of the sale; a sufficient identification of
34 the property sold; such other information as is required in
SB1118 Enrolled -68- LRB9102874PTpkA
1 Section 5-402 of the Illinois Vehicle Code, and such other
2 information as the Department may reasonably require.
3 The transaction reporting return in the case of
4 watercraft and aircraft must show the name and address of the
5 seller; the name and address of the purchaser; the amount of
6 the selling price including the amount allowed by the
7 retailer for traded-in property, if any; the amount allowed
8 by the retailer for the traded-in tangible personal property,
9 if any, to the extent to which Section 2 of this Act allows
10 an exemption for the value of traded-in property; the balance
11 payable after deducting such trade-in allowance from the
12 total selling price; the amount of tax due from the retailer
13 with respect to such transaction; the amount of tax collected
14 from the purchaser by the retailer on such transaction (or
15 satisfactory evidence that such tax is not due in that
16 particular instance, if that is claimed to be the fact); the
17 place and date of the sale, a sufficient identification of
18 the property sold, and such other information as the
19 Department may reasonably require.
20 Such transaction reporting return shall be filed not
21 later than 20 days after the date of delivery of the item
22 that is being sold, but may be filed by the retailer at any
23 time sooner than that if he chooses to do so. The
24 transaction reporting return and tax remittance or proof of
25 exemption from the tax that is imposed by this Act may be
26 transmitted to the Department by way of the State agency with
27 which, or State officer with whom, the tangible personal
28 property must be titled or registered (if titling or
29 registration is required) if the Department and such agency
30 or State officer determine that this procedure will expedite
31 the processing of applications for title or registration.
32 With each such transaction reporting return, the retailer
33 shall remit the proper amount of tax due (or shall submit
34 satisfactory evidence that the sale is not taxable if that is
SB1118 Enrolled -69- LRB9102874PTpkA
1 the case), to the Department or its agents, whereupon the
2 Department shall issue, in the purchaser's name, a tax
3 receipt (or a certificate of exemption if the Department is
4 satisfied that the particular sale is tax exempt) which such
5 purchaser may submit to the agency with which, or State
6 officer with whom, he must title or register the tangible
7 personal property that is involved (if titling or
8 registration is required) in support of such purchaser's
9 application for an Illinois certificate or other evidence of
10 title or registration to such tangible personal property.
11 No retailer's failure or refusal to remit tax under this
12 Act precludes a user, who has paid the proper tax to the
13 retailer, from obtaining his certificate of title or other
14 evidence of title or registration (if titling or registration
15 is required) upon satisfying the Department that such user
16 has paid the proper tax (if tax is due) to the retailer. The
17 Department shall adopt appropriate rules to carry out the
18 mandate of this paragraph.
19 If the user who would otherwise pay tax to the retailer
20 wants the transaction reporting return filed and the payment
21 of tax or proof of exemption made to the Department before
22 the retailer is willing to take these actions and such user
23 has not paid the tax to the retailer, such user may certify
24 to the fact of such delay by the retailer, and may (upon the
25 Department being satisfied of the truth of such
26 certification) transmit the information required by the
27 transaction reporting return and the remittance for tax or
28 proof of exemption directly to the Department and obtain his
29 tax receipt or exemption determination, in which event the
30 transaction reporting return and tax remittance (if a tax
31 payment was required) shall be credited by the Department to
32 the proper retailer's account with the Department, but
33 without the 2.1% or 1.75% discount provided for in this
34 Section being allowed. When the user pays the tax directly
SB1118 Enrolled -70- LRB9102874PTpkA
1 to the Department, he shall pay the tax in the same amount
2 and in the same form in which it would be remitted if the tax
3 had been remitted to the Department by the retailer.
4 Where a retailer collects the tax with respect to the
5 selling price of tangible personal property which he sells
6 and the purchaser thereafter returns such tangible personal
7 property and the retailer refunds the selling price thereof
8 to the purchaser, such retailer shall also refund, to the
9 purchaser, the tax so collected from the purchaser. When
10 filing his return for the period in which he refunds such tax
11 to the purchaser, the retailer may deduct the amount of the
12 tax so refunded by him to the purchaser from any other use
13 tax which such retailer may be required to pay or remit to
14 the Department, as shown by such return, if the amount of the
15 tax to be deducted was previously remitted to the Department
16 by such retailer. If the retailer has not previously
17 remitted the amount of such tax to the Department, he is
18 entitled to no deduction under this Act upon refunding such
19 tax to the purchaser.
20 Any retailer filing a return under this Section shall
21 also include (for the purpose of paying tax thereon) the
22 total tax covered by such return upon the selling price of
23 tangible personal property purchased by him at retail from a
24 retailer, but as to which the tax imposed by this Act was not
25 collected from the retailer filing such return, and such
26 retailer shall remit the amount of such tax to the Department
27 when filing such return.
28 If experience indicates such action to be practicable,
29 the Department may prescribe and furnish a combination or
30 joint return which will enable retailers, who are required to
31 file returns hereunder and also under the Retailers'
32 Occupation Tax Act, to furnish all the return information
33 required by both Acts on the one form.
34 Where the retailer has more than one business registered
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1 with the Department under separate registration under this
2 Act, such retailer may not file each return that is due as a
3 single return covering all such registered businesses, but
4 shall file separate returns for each such registered
5 business.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the State and Local Sales Tax Reform Fund, a
8 special fund in the State Treasury which is hereby created,
9 the net revenue realized for the preceding month from the 1%
10 tax on sales of food for human consumption which is to be
11 consumed off the premises where it is sold (other than
12 alcoholic beverages, soft drinks and food which has been
13 prepared for immediate consumption) and prescription and
14 nonprescription medicines, drugs, medical appliances and
15 insulin, urine testing materials, syringes and needles used
16 by diabetics.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the County and Mass Transit District Fund 4%
19 of the net revenue realized for the preceding month from the
20 6.25% general rate on the selling price of tangible personal
21 property which is purchased outside Illinois at retail from a
22 retailer and which is titled or registered by an agency of
23 this State's government.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the State and Local Sales Tax Reform Fund, a
26 special fund in the State Treasury, 20% of the net revenue
27 realized for the preceding month from the 6.25% general rate
28 on the selling price of tangible personal property, other
29 than tangible personal property which is purchased outside
30 Illinois at retail from a retailer and which is titled or
31 registered by an agency of this State's government.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund 16% of the net
34 revenue realized for the preceding month from the 6.25%
SB1118 Enrolled -72- LRB9102874PTpkA
1 general rate on the selling price of tangible personal
2 property which is purchased outside Illinois at retail from a
3 retailer and which is titled or registered by an agency of
4 this State's government.
5 Of the remainder of the moneys received by the Department
6 pursuant to this Act, (a) 1.75% thereof shall be paid into
7 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
8 and on and after July 1, 1989, 3.8% thereof shall be paid
9 into the Build Illinois Fund; provided, however, that if in
10 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
11 as the case may be, of the moneys received by the Department
12 and required to be paid into the Build Illinois Fund pursuant
13 to Section 3 of the Retailers' Occupation Tax Act, Section 9
14 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
15 Section 9 of the Service Occupation Tax Act, such Acts being
16 hereinafter called the "Tax Acts" and such aggregate of 2.2%
17 or 3.8%, as the case may be, of moneys being hereinafter
18 called the "Tax Act Amount", and (2) the amount transferred
19 to the Build Illinois Fund from the State and Local Sales Tax
20 Reform Fund shall be less than the Annual Specified Amount
21 (as defined in Section 3 of the Retailers' Occupation Tax
22 Act), an amount equal to the difference shall be immediately
23 paid into the Build Illinois Fund from other moneys received
24 by the Department pursuant to the Tax Acts; and further
25 provided, that if on the last business day of any month the
26 sum of (1) the Tax Act Amount required to be deposited into
27 the Build Illinois Bond Account in the Build Illinois Fund
28 during such month and (2) the amount transferred during such
29 month to the Build Illinois Fund from the State and Local
30 Sales Tax Reform Fund shall have been less than 1/12 of the
31 Annual Specified Amount, an amount equal to the difference
32 shall be immediately paid into the Build Illinois Fund from
33 other moneys received by the Department pursuant to the Tax
34 Acts; and, further provided, that in no event shall the
SB1118 Enrolled -73- LRB9102874PTpkA
1 payments required under the preceding proviso result in
2 aggregate payments into the Build Illinois Fund pursuant to
3 this clause (b) for any fiscal year in excess of the greater
4 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
5 for such fiscal year; and, further provided, that the amounts
6 payable into the Build Illinois Fund under this clause (b)
7 shall be payable only until such time as the aggregate amount
8 on deposit under each trust indenture securing Bonds issued
9 and outstanding pursuant to the Build Illinois Bond Act is
10 sufficient, taking into account any future investment income,
11 to fully provide, in accordance with such indenture, for the
12 defeasance of or the payment of the principal of, premium, if
13 any, and interest on the Bonds secured by such indenture and
14 on any Bonds expected to be issued thereafter and all fees
15 and costs payable with respect thereto, all as certified by
16 the Director of the Bureau of the Budget. If on the last
17 business day of any month in which Bonds are outstanding
18 pursuant to the Build Illinois Bond Act, the aggregate of the
19 moneys deposited in the Build Illinois Bond Account in the
20 Build Illinois Fund in such month shall be less than the
21 amount required to be transferred in such month from the
22 Build Illinois Bond Account to the Build Illinois Bond
23 Retirement and Interest Fund pursuant to Section 13 of the
24 Build Illinois Bond Act, an amount equal to such deficiency
25 shall be immediately paid from other moneys received by the
26 Department pursuant to the Tax Acts to the Build Illinois
27 Fund; provided, however, that any amounts paid to the Build
28 Illinois Fund in any fiscal year pursuant to this sentence
29 shall be deemed to constitute payments pursuant to clause (b)
30 of the preceding sentence and shall reduce the amount
31 otherwise payable for such fiscal year pursuant to clause (b)
32 of the preceding sentence. The moneys received by the
33 Department pursuant to this Act and required to be deposited
34 into the Build Illinois Fund are subject to the pledge, claim
SB1118 Enrolled -74- LRB9102874PTpkA
1 and charge set forth in Section 12 of the Build Illinois Bond
2 Act.
3 Subject to payment of amounts into the Build Illinois
4 Fund as provided in the preceding paragraph or in any
5 amendment thereto hereafter enacted, the following specified
6 monthly installment of the amount requested in the
7 certificate of the Chairman of the Metropolitan Pier and
8 Exposition Authority provided under Section 8.25f of the
9 State Finance Act, but not in excess of the sums designated
10 as "Total Deposit", shall be deposited in the aggregate from
11 collections under Section 9 of the Use Tax Act, Section 9 of
12 the Service Use Tax Act, Section 9 of the Service Occupation
13 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
14 into the McCormick Place Expansion Project Fund in the
15 specified fiscal years.
16 Fiscal Year Total Deposit
17 1993 $0
18 1994 53,000,000
19 1995 58,000,000
20 1996 61,000,000
21 1997 64,000,000
22 1998 68,000,000
23 1999 71,000,000
24 2000 75,000,000
25 2001 80,000,000
26 2002 84,000,000
27 2003 89,000,000
28 2004 93,000,000
29 2005 97,000,000
30 2006 102,000,000
31 2007 and 106,000,000
32 each fiscal year
33 thereafter that bonds
34 are outstanding under
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1 Section 13.2 of the
2 Metropolitan Pier and
3 Exposition Authority
4 Act, but not after fiscal year 2029.
5 Beginning July 20, 1993 and in each month of each fiscal
6 year thereafter, one-eighth of the amount requested in the
7 certificate of the Chairman of the Metropolitan Pier and
8 Exposition Authority for that fiscal year, less the amount
9 deposited into the McCormick Place Expansion Project Fund by
10 the State Treasurer in the respective month under subsection
11 (g) of Section 13 of the Metropolitan Pier and Exposition
12 Authority Act, plus cumulative deficiencies in the deposits
13 required under this Section for previous months and years,
14 shall be deposited into the McCormick Place Expansion Project
15 Fund, until the full amount requested for the fiscal year,
16 but not in excess of the amount specified above as "Total
17 Deposit", has been deposited.
18 Subject to payment of amounts into the Build Illinois
19 Fund and the McCormick Place Expansion Project Fund pursuant
20 to the preceding paragraphs or in any amendment thereto
21 hereafter enacted, each month the Department shall pay into
22 the Local Government Distributive Fund .4% of the net revenue
23 realized for the preceding month from the 5% general rate, or
24 .4% of 80% of the net revenue realized for the preceding
25 month from the 6.25% general rate, as the case may be, on the
26 selling price of tangible personal property which amount
27 shall, subject to appropriation, be distributed as provided
28 in Section 2 of the State Revenue Sharing Act. No payments or
29 distributions pursuant to this paragraph shall be made if the
30 tax imposed by this Act on photoprocessing products is
31 declared unconstitutional, or if the proceeds from such tax
32 are unavailable for distribution because of litigation.
33 Subject to payment of amounts into the Build Illinois
34 Fund, the McCormick Place Expansion Project Fund, and the
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1 Local Government Distributive Fund pursuant to the preceding
2 paragraphs or in any amendments thereto hereafter enacted,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% of the net
5 revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property.
8 Of the remainder of the moneys received by the Department
9 pursuant to this Act, 75% thereof shall be paid into the
10 State Treasury and 25% shall be reserved in a special account
11 and used only for the transfer to the Common School Fund as
12 part of the monthly transfer from the General Revenue Fund in
13 accordance with Section 8a of the State Finance Act.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under this Act for the second preceding month;
20 except that this transfer shall not be made for the months
21 February through June of 1992.
22 Net revenue realized for a month shall be the revenue
23 collected by the State pursuant to this Act, less the amount
24 paid out during that month as refunds to taxpayers for
25 overpayment of liability.
26 For greater simplicity of administration, manufacturers,
27 importers and wholesalers whose products are sold at retail
28 in Illinois by numerous retailers, and who wish to do so, may
29 assume the responsibility for accounting and paying to the
30 Department all tax accruing under this Act with respect to
31 such sales, if the retailers who are affected do not make
32 written objection to the Department to this arrangement.
33 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
34 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
SB1118 Enrolled -77- LRB9102874PTpkA
1 (35 ILCS 105/10) (from Ch. 120, par. 439.10)
2 Sec. 10. Except as to motor vehicles and aircraft, when
3 tangible personal property is purchased from a retailer for
4 use in this State by a purchaser who did not pay the tax
5 imposed by this Act to the retailer, and who does not file
6 returns with the Department as a retailer under Section 9 of
7 this Act, such purchaser (by the last day of the month
8 following the calendar month in which such purchaser makes
9 any payment upon the selling price of such property) shall,
10 except as provided in this Section, file a return with the
11 Department and pay the tax upon that portion of the selling
12 price so paid by the purchaser during the preceding calendar
13 month. When tangible personal property, including but not
14 limited to motor vehicles and aircraft, is purchased by a
15 lessor, under a lease for one year or longer, executed or in
16 effect at the time of purchase to an interstate carrier for
17 hire, who did not pay the tax imposed by this Act to the
18 retailer, such lessor (by the last day of the month following
19 the calendar month in which such property reverts to the use
20 of such lessor) shall file a return with the Department and
21 pay the tax upon the fair market value of such property on
22 the date of such reversion. However, in determining the fair
23 market value at the time of reversion, the fair market value
24 of such property shall not exceed the original purchase price
25 of the property that was paid by the lessor at the time of
26 purchase. Such return shall be filed on a form prescribed
27 by the Department and shall contain such information as the
28 Department may reasonably require. Such return and payment
29 from the purchaser shall be submitted to the Department
30 sooner than the last day of the month after the month in
31 which the purchase is made to the extent that that may be
32 necessary in order to secure the title to a motor vehicle or
33 the certificate of registration for an aircraft. However,
34 except as to motor vehicles and aircraft, if the purchaser's
SB1118 Enrolled -78- LRB9102874PTpkA
1 annual use tax liability does not exceed $600, the purchaser
2 may file the return on an annual basis on or before April
3 15th of the year following the year use tax liability was
4 incurred.
5 In addition with respect to motor vehicles and aircraft,
6 a purchaser of such tangible personal property for use in
7 this State, who purchases such tangible personal property
8 from an out-of-state retailer, shall file with the
9 Department, upon a form to be prescribed and supplied by the
10 Department, a return for each such item of tangible personal
11 property purchased. Such return in the case of motor
12 vehicles and aircraft must show the name and address of the
13 seller, the name, address of purchaser, the amount of the
14 selling price including the amount allowed by the retailer
15 for traded in property, if any; the amount allowed by the
16 retailer for the traded-in tangible personal property, if
17 any, to the extent to which Section 2 of this Act allows an
18 exemption for the value of traded-in property; the balance
19 payable after deducting such trade-in allowance from the
20 total selling price; the amount of tax due from the purchaser
21 with respect to such transaction; the amount of tax collected
22 from the purchaser by the retailer on such transaction (or
23 satisfactory evidence that such tax is not due in that
24 particular instance if that is claimed to be the fact); the
25 place and date of the sale, a sufficient identification of
26 the property sold, and such other information as the
27 Department may reasonably require.
28 Such return shall be filed not later than 30 days after
29 such motor vehicle or aircraft is brought into this State for
30 use.
31 The return and tax remittance or proof of exemption from
32 the tax that is imposed by this Act may be transmitted to the
33 Department by way of the State agency with which, or State
34 officer with whom, the tangible personal property must be
SB1118 Enrolled -79- LRB9102874PTpkA
1 titled or registered (if titling or registration is required)
2 if the Department and such agency or State officer determine
3 that this procedure will expedite the processing of
4 applications for title or registration.
5 With each such return, the purchaser shall remit the
6 proper amount of tax due (or shall submit satisfactory
7 evidence that the sale is not taxable if that is the case),
8 to the Department or its agents, whereupon the Department
9 shall issue, in the purchaser's name, a tax receipt (or a
10 certificate of exemption if the Department is satisfied that
11 the particular sale is tax exempt) which such purchaser may
12 submit to the agency with which, or State officer with whom,
13 he must title or register the tangible personal property that
14 is involved (if titling or registration is required) in
15 support of such purchaser's application for an Illinois
16 certificate or other evidence of title or registration to
17 such tangible personal property.
18 When a purchaser pays a tax imposed by this Act directly
19 to the Department, the Department (upon request therefor from
20 such purchaser) shall issue an appropriate receipt to such
21 purchaser showing that he has paid such tax to the
22 Department. Such receipt shall be sufficient to relieve the
23 purchaser from further liability for the tax to which such
24 receipt may refer.
25 A user who is liable to pay use tax directly to the
26 Department only occasionally and not on a frequently
27 recurring basis, and who is not required to file returns with
28 the Department as a retailer under Section 9 of this Act, or
29 under the "Retailers' Occupation Tax Act", or as a registrant
30 with the Department under the "Service Occupation Tax Act" or
31 the "Service Use Tax Act", need not register with the
32 Department. However, if such a user has a frequently
33 recurring direct use tax liability to pay to the Department,
34 such user shall be required to register with the Department
SB1118 Enrolled -80- LRB9102874PTpkA
1 on forms prescribed by the Department and to obtain and
2 display a certificate of registration from the Department.
3 In that event, all of the provisions of Section 9 of this Act
4 concerning the filing of regular monthly, quarterly or annual
5 tax returns and all of the provisions of Section 2a of the
6 "Retailers' Occupation Tax Act" concerning the requirements
7 for registrants to post bond or other security with the
8 Department, as the provisions of such sections now exist or
9 may hereafter be amended, shall apply to such users to the
10 same extent as if such provisions were included herein.
11 (Source: P.A. 87-876.)
12 Section 15. The Service Use Tax Act is amended by
13 changing Sections 3-10, 3-30, and 9 as follows:
14 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
15 Sec. 3-10. Rate of tax. Unless otherwise provided in
16 this Section, the tax imposed by this Act is at the rate of
17 6.25% of the selling price of tangible personal property
18 transferred as an incident to the sale of service, but, for
19 the purpose of computing this tax, in no event shall the
20 selling price be less than the cost price of the property to
21 the serviceman.
22 With respect to gasohol, as defined in the Use Tax Act,
23 the tax imposed by this Act applies to 70% of the selling
24 price of property transferred as an incident to the sale of
25 service on or after January 1, 1990, and before July 1, 2003,
26 and to 100% of the selling price thereafter.
27 At the election of any registered serviceman made for
28 each fiscal year, sales of service in which the aggregate
29 annual cost price of tangible personal property transferred
30 as an incident to the sales of service is less than 35%, or
31 75% in the case of servicemen transferring prescription drugs
32 or servicemen engaged in graphic arts production, of the
SB1118 Enrolled -81- LRB9102874PTpkA
1 aggregate annual total gross receipts from all sales of
2 service, the tax imposed by this Act shall be based on the
3 serviceman's cost price of the tangible personal property
4 transferred as an incident to the sale of those services.
5 The tax shall be imposed at the rate of 1% on food
6 prepared for immediate consumption and transferred incident
7 to a sale of service subject to this Act or the Service
8 Occupation Tax Act by an entity licensed under the Hospital
9 Licensing Act, or the Nursing Home Care Act, or the Child
10 Care Act of 1969. The tax shall also be imposed at the rate
11 of 1% on food for human consumption that is to be consumed
12 off the premises where it is sold (other than alcoholic
13 beverages, soft drinks, and food that has been prepared for
14 immediate consumption and is not otherwise included in this
15 paragraph) and prescription and nonprescription medicines,
16 drugs, medical appliances, modifications to a motor vehicle
17 for the purpose of rendering it usable by a disabled person,
18 and insulin, urine testing materials, syringes, and needles
19 used by diabetics, for human use. For the purposes of this
20 Section, the term "soft drinks" means any complete, finished,
21 ready-to-use, non-alcoholic drink, whether carbonated or not,
22 including but not limited to soda water, cola, fruit juice,
23 vegetable juice, carbonated water, and all other preparations
24 commonly known as soft drinks of whatever kind or description
25 that are contained in any closed or sealed bottle, can,
26 carton, or container, regardless of size. "Soft drinks" does
27 not include coffee, tea, non-carbonated water, infant
28 formula, milk or milk products as defined in the Grade A
29 Pasteurized Milk and Milk Products Act, or drinks containing
30 50% or more natural fruit or vegetable juice.
31 Notwithstanding any other provisions of this Act, "food
32 for human consumption that is to be consumed off the premises
33 where it is sold" includes all food sold through a vending
34 machine, except soft drinks and food products that are
SB1118 Enrolled -82- LRB9102874PTpkA
1 dispensed hot from a vending machine, regardless of the
2 location of the vending machine.
3 If the property that is acquired from a serviceman is
4 acquired outside Illinois and used outside Illinois before
5 being brought to Illinois for use here and is taxable under
6 this Act, the "selling price" on which the tax is computed
7 shall be reduced by an amount that represents a reasonable
8 allowance for depreciation for the period of prior
9 out-of-state use.
10 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
11 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
12 6-30-98; 90-606, eff. 6-30-98.)
13 (35 ILCS 110/3-30) (from Ch. 120, par. 439.33-30)
14 Sec. 3-30. Graphic arts production. For the purposes of
15 this Act, "graphic arts production" means printing, including
16 ink jet printing, by one or more of the common processes
17 described in Groups 323110 through 323122 of Subsector 323,
18 Groups 511110 through 511199 of Subsector 511, and Group
19 512230 of Subsector 512 of the North American Industry
20 Classification System published by the U.S. Office of
21 Management and Budget, 1997 edition or graphic arts
22 production services as those processes and services are
23 defined in the Major Group 27 of the U.S. Standard Industrial
24 Classification Manual. Graphic arts production does not
25 include (i) the transfer of images onto paper or other
26 tangible personal property by means of photocopying or (ii)
27 final printed products in electronic or audio form, including
28 the production of software or audio-books.
29 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
30 86-1028; 86-1475.)
31 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
32 Sec. 9. Each serviceman required or authorized to
SB1118 Enrolled -83- LRB9102874PTpkA
1 collect the tax herein imposed shall pay to the Department
2 the amount of such tax (except as otherwise provided) at the
3 time when he is required to file his return for the period
4 during which such tax was collected, less a discount of 2.1%
5 prior to January 1, 1990 and 1.75% on and after January 1,
6 1990, or $5 per calendar year, whichever is greater, which is
7 allowed to reimburse the serviceman for expenses incurred in
8 collecting the tax, keeping records, preparing and filing
9 returns, remitting the tax and supplying data to the
10 Department on request. A serviceman need not remit that part
11 of any tax collected by him to the extent that he is required
12 to pay and does pay the tax imposed by the Service Occupation
13 Tax Act with respect to his sale of service involving the
14 incidental transfer by him of the same property.
15 Except as provided hereinafter in this Section, on or
16 before the twentieth day of each calendar month, such
17 serviceman shall file a return for the preceding calendar
18 month in accordance with reasonable Rules and Regulations to
19 be promulgated by the Department. Such return shall be filed
20 on a form prescribed by the Department and shall contain such
21 information as the Department may reasonably require.
22 The Department may require returns to be filed on a
23 quarterly basis. If so required, a return for each calendar
24 quarter shall be filed on or before the twentieth day of the
25 calendar month following the end of such calendar quarter.
26 The taxpayer shall also file a return with the Department for
27 each of the first two months of each calendar quarter, on or
28 before the twentieth day of the following calendar month,
29 stating:
30 1. The name of the seller;
31 2. The address of the principal place of business
32 from which he engages in business as a serviceman in this
33 State;
34 3. The total amount of taxable receipts received by
SB1118 Enrolled -84- LRB9102874PTpkA
1 him during the preceding calendar month, including
2 receipts from charge and time sales, but less all
3 deductions allowed by law;
4 4. The amount of credit provided in Section 2d of
5 this Act;
6 5. The amount of tax due;
7 5-5. The signature of the taxpayer; and
8 6. Such other reasonable information as the
9 Department may require.
10 If a taxpayer fails to sign a return within 30 days after
11 the proper notice and demand for signature by the Department,
12 the return shall be considered valid and any amount shown to
13 be due on the return shall be deemed assessed.
14 Beginning October 1, 1993, a taxpayer who has an average
15 monthly tax liability of $150,000 or more shall make all
16 payments required by rules of the Department by electronic
17 funds transfer. Beginning October 1, 1994, a taxpayer who
18 has an average monthly tax liability of $100,000 or more
19 shall make all payments required by rules of the Department
20 by electronic funds transfer. Beginning October 1, 1995, a
21 taxpayer who has an average monthly tax liability of $50,000
22 or more shall make all payments required by rules of the
23 Department by electronic funds transfer. Beginning October 1,
24 2000, a taxpayer who has an annual tax liability of $200,000
25 or more shall make all payments required by rules of the
26 Department by electronic funds transfer. The term "annual
27 tax liability" shall be the sum of the taxpayer's liabilities
28 under this Act, and under all other State and local
29 occupation and use tax laws administered by the Department,
30 for the immediately preceding calendar year. The term
31 "average monthly tax liability" means the sum of the
32 taxpayer's liabilities under this Act, and under all other
33 State and local occupation and use tax laws administered by
34 the Department, for the immediately preceding calendar year
SB1118 Enrolled -85- LRB9102874PTpkA
1 divided by 12.
2 Before August 1 of each year beginning in 1993, the
3 Department shall notify all taxpayers required to make
4 payments by electronic funds transfer. All taxpayers required
5 to make payments by electronic funds transfer shall make
6 those payments for a minimum of one year beginning on October
7 1.
8 Any taxpayer not required to make payments by electronic
9 funds transfer may make payments by electronic funds transfer
10 with the permission of the Department.
11 All taxpayers required to make payment by electronic
12 funds transfer and any taxpayers authorized to voluntarily
13 make payments by electronic funds transfer shall make those
14 payments in the manner authorized by the Department.
15 The Department shall adopt such rules as are necessary to
16 effectuate a program of electronic funds transfer and the
17 requirements of this Section.
18 If the serviceman is otherwise required to file a monthly
19 return and if the serviceman's average monthly tax liability
20 to the Department does not exceed $200, the Department may
21 authorize his returns to be filed on a quarter annual basis,
22 with the return for January, February and March of a given
23 year being due by April 20 of such year; with the return for
24 April, May and June of a given year being due by July 20 of
25 such year; with the return for July, August and September of
26 a given year being due by October 20 of such year, and with
27 the return for October, November and December of a given year
28 being due by January 20 of the following year.
29 If the serviceman is otherwise required to file a monthly
30 or quarterly return and if the serviceman's average monthly
31 tax liability to the Department does not exceed $50, the
32 Department may authorize his returns to be filed on an annual
33 basis, with the return for a given year being due by January
34 20 of the following year.
SB1118 Enrolled -86- LRB9102874PTpkA
1 Such quarter annual and annual returns, as to form and
2 substance, shall be subject to the same requirements as
3 monthly returns.
4 Notwithstanding any other provision in this Act
5 concerning the time within which a serviceman may file his
6 return, in the case of any serviceman who ceases to engage in
7 a kind of business which makes him responsible for filing
8 returns under this Act, such serviceman shall file a final
9 return under this Act with the Department not more than 1
10 month after discontinuing such business.
11 Where a serviceman collects the tax with respect to the
12 selling price of property which he sells and the purchaser
13 thereafter returns such property and the serviceman refunds
14 the selling price thereof to the purchaser, such serviceman
15 shall also refund, to the purchaser, the tax so collected
16 from the purchaser. When filing his return for the period in
17 which he refunds such tax to the purchaser, the serviceman
18 may deduct the amount of the tax so refunded by him to the
19 purchaser from any other Service Use Tax, Service Occupation
20 Tax, retailers' occupation tax or use tax which such
21 serviceman may be required to pay or remit to the Department,
22 as shown by such return, provided that the amount of the tax
23 to be deducted shall previously have been remitted to the
24 Department by such serviceman. If the serviceman shall not
25 previously have remitted the amount of such tax to the
26 Department, he shall be entitled to no deduction hereunder
27 upon refunding such tax to the purchaser.
28 Any serviceman filing a return hereunder shall also
29 include the total tax upon the selling price of tangible
30 personal property purchased for use by him as an incident to
31 a sale of service, and such serviceman shall remit the amount
32 of such tax to the Department when filing such return.
33 If experience indicates such action to be practicable,
34 the Department may prescribe and furnish a combination or
SB1118 Enrolled -87- LRB9102874PTpkA
1 joint return which will enable servicemen, who are required
2 to file returns hereunder and also under the Service
3 Occupation Tax Act, to furnish all the return information
4 required by both Acts on the one form.
5 Where the serviceman has more than one business
6 registered with the Department under separate registration
7 hereunder, such serviceman shall not file each return that is
8 due as a single return covering all such registered
9 businesses, but shall file separate returns for each such
10 registered business.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the State and Local Tax Reform Fund, a special
13 fund in the State Treasury, the net revenue realized for the
14 preceding month from the 1% tax on sales of food for human
15 consumption which is to be consumed off the premises where it
16 is sold (other than alcoholic beverages, soft drinks and food
17 which has been prepared for immediate consumption) and
18 prescription and nonprescription medicines, drugs, medical
19 appliances and insulin, urine testing materials, syringes and
20 needles used by diabetics.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the State and Local Sales Tax Reform Fund 20%
23 of the net revenue realized for the preceding month from the
24 6.25% general rate on transfers of tangible personal
25 property, other than tangible personal property which is
26 purchased outside Illinois at retail from a retailer and
27 which is titled or registered by an agency of this State's
28 government.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, (a) 1.75% thereof shall be paid into
31 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
32 and on and after July 1, 1989, 3.8% thereof shall be paid
33 into the Build Illinois Fund; provided, however, that if in
34 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
SB1118 Enrolled -88- LRB9102874PTpkA
1 as the case may be, of the moneys received by the Department
2 and required to be paid into the Build Illinois Fund pursuant
3 to Section 3 of the Retailers' Occupation Tax Act, Section 9
4 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
5 Section 9 of the Service Occupation Tax Act, such Acts being
6 hereinafter called the "Tax Acts" and such aggregate of 2.2%
7 or 3.8%, as the case may be, of moneys being hereinafter
8 called the "Tax Act Amount", and (2) the amount transferred
9 to the Build Illinois Fund from the State and Local Sales Tax
10 Reform Fund shall be less than the Annual Specified Amount
11 (as defined in Section 3 of the Retailers' Occupation Tax
12 Act), an amount equal to the difference shall be immediately
13 paid into the Build Illinois Fund from other moneys received
14 by the Department pursuant to the Tax Acts; and further
15 provided, that if on the last business day of any month the
16 sum of (1) the Tax Act Amount required to be deposited into
17 the Build Illinois Bond Account in the Build Illinois Fund
18 during such month and (2) the amount transferred during such
19 month to the Build Illinois Fund from the State and Local
20 Sales Tax Reform Fund shall have been less than 1/12 of the
21 Annual Specified Amount, an amount equal to the difference
22 shall be immediately paid into the Build Illinois Fund from
23 other moneys received by the Department pursuant to the Tax
24 Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to
27 this clause (b) for any fiscal year in excess of the greater
28 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
29 for such fiscal year; and, further provided, that the amounts
30 payable into the Build Illinois Fund under this clause (b)
31 shall be payable only until such time as the aggregate amount
32 on deposit under each trust indenture securing Bonds issued
33 and outstanding pursuant to the Build Illinois Bond Act is
34 sufficient, taking into account any future investment income,
SB1118 Enrolled -89- LRB9102874PTpkA
1 to fully provide, in accordance with such indenture, for the
2 defeasance of or the payment of the principal of, premium, if
3 any, and interest on the Bonds secured by such indenture and
4 on any Bonds expected to be issued thereafter and all fees
5 and costs payable with respect thereto, all as certified by
6 the 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 the
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 preceding sentence and shall reduce the amount
21 otherwise payable for such fiscal year pursuant to clause (b)
22 of the preceding sentence. The moneys received by the
23 Department pursuant to this Act and required to be deposited
24 into the Build Illinois Fund are subject to the pledge, claim
25 and 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 the sums designated
34 as "Total Deposit", shall be deposited in the aggregate from
SB1118 Enrolled -90- LRB9102874PTpkA
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 Act,
28 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
SB1118 Enrolled -91- LRB9102874PTpkA
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 photo processing
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 Fund, and the
26 Local Government Distributive Fund pursuant to the preceding
27 paragraphs or in any amendments thereto hereafter enacted,
28 beginning July 1, 1993, the Department shall each month pay
29 into the Illinois Tax Increment Fund 0.27% of 80% of the net
30 revenue realized for the preceding month from the 6.25%
31 general rate on the selling price of tangible personal
32 property.
33 All remaining moneys received by the Department pursuant
34 to this Act shall be paid into the General Revenue Fund of
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1 the State Treasury.
2 As soon as possible after the first day of each month,
3 upon certification of the Department of Revenue, the
4 Comptroller shall order transferred and the Treasurer shall
5 transfer from the General Revenue Fund to the Motor Fuel Tax
6 Fund an amount equal to 1.7% of 80% of the net revenue
7 realized under this Act for the second preceding month;
8 except that this transfer shall not be made for the months
9 February through June, 1992.
10 Net revenue realized for a month shall be the revenue
11 collected by the State pursuant to this Act, less the amount
12 paid out during that month as refunds to taxpayers for
13 overpayment of liability.
14 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
15 Section 20. The Service Occupation Tax Act is amended by
16 changing Sections 3-10, 3-30, and 9 as follows:
17 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
18 Sec. 3-10. Rate of tax. Unless otherwise provided in
19 this Section, the tax imposed by this Act is at the rate of
20 6.25% of the "selling price", as defined in Section 2 of the
21 Service Use Tax Act, of the tangible personal property. For
22 the purpose of computing this tax, in no event shall the
23 "selling price" be less than the cost price to the serviceman
24 of the tangible personal property transferred. The selling
25 price of each item of tangible personal property transferred
26 as an incident of a sale of service may be shown as a
27 distinct and separate item on the serviceman's billing to the
28 service customer. If the selling price is not so shown, the
29 selling price of the tangible personal property is deemed to
30 be 50% of the serviceman's entire billing to the service
31 customer. When, however, a serviceman contracts to design,
32 develop, and produce special order machinery or equipment,
SB1118 Enrolled -93- LRB9102874PTpkA
1 the tax imposed by this Act shall be based on the
2 serviceman's cost price of the tangible personal property
3 transferred incident to the completion of the contract.
4 With respect to gasohol, as defined in the Use Tax Act,
5 the tax imposed by this Act shall apply to 70% of the cost
6 price of property transferred as an incident to the sale of
7 service on or after January 1, 1990, and before July 1, 2003,
8 and to 100% of the cost price thereafter.
9 At the election of any registered serviceman made for
10 each fiscal year, sales of service in which the aggregate
11 annual cost price of tangible personal property transferred
12 as an incident to the sales of service is less than 35%, or
13 75% in the case of servicemen transferring prescription drugs
14 or servicemen engaged in graphic arts production, of the
15 aggregate annual total gross receipts from all sales of
16 service, the tax imposed by this Act shall be based on the
17 serviceman's cost price of the tangible personal property
18 transferred incident to the sale of those services.
19 The tax shall be imposed at the rate of 1% on food
20 prepared for immediate consumption and transferred incident
21 to a sale of service subject to this Act or the Service
22 Occupation Tax Act by an entity licensed under the Hospital
23 Licensing Act, or the Nursing Home Care Act, or the Child
24 Care Act of 1969. The tax shall also be imposed at the rate
25 of 1% on food for human consumption that is to be consumed
26 off the premises where it is sold (other than alcoholic
27 beverages, soft drinks, and food that has been prepared for
28 immediate consumption and is not otherwise included in this
29 paragraph) and prescription and nonprescription medicines,
30 drugs, medical appliances, modifications to a motor vehicle
31 for the purpose of rendering it usable by a disabled person,
32 and insulin, urine testing materials, syringes, and needles
33 used by diabetics, for human use. For the purposes of this
34 Section, the term "soft drinks" means any complete, finished,
SB1118 Enrolled -94- LRB9102874PTpkA
1 ready-to-use, non-alcoholic drink, whether carbonated or not,
2 including but not limited to soda water, cola, fruit juice,
3 vegetable juice, carbonated water, and all other preparations
4 commonly known as soft drinks of whatever kind or description
5 that are contained in any closed or sealed can, carton, or
6 container, regardless of size. "Soft drinks" does not
7 include coffee, tea, non-carbonated water, infant formula,
8 milk or milk products as defined in the Grade A Pasteurized
9 Milk and Milk Products Act, or drinks containing 50% or more
10 natural fruit or vegetable juice.
11 Notwithstanding any other provisions of this Act, "food
12 for human consumption that is to be consumed off the premises
13 where it is sold" includes all food sold through a vending
14 machine, except soft drinks and food products that are
15 dispensed hot from a vending machine, regardless of the
16 location of the vending machine.
17 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
18 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
19 6-30-98; 90-606, eff. 6-30-98.)
20 (35 ILCS 115/3-30) (from Ch. 120, par. 439.103-30)
21 Sec. 3-30. Graphic arts production. For purposes of this
22 Act, "graphic arts production" means printing, including ink
23 jet printing, by one or more of the common processes
24 described in Groups 323110 through 323122 of Subsector 323,
25 Groups 511110 through 511199 of Subsector 511, and Group
26 512230 of Subsector 512 of the North American Industry
27 Classification System published by the U.S. Office of
28 Management and Budget, 1997 edition or graphic arts
29 production services as those processes and services are
30 defined in Major Group 27 of the U.S. Standard Industrial
31 Classification Manual. Graphic arts production does not
32 include (i) the transfer of images onto paper or other
33 tangible personal property by means of photocopying or (ii)
SB1118 Enrolled -95- LRB9102874PTpkA
1 final printed products in electronic or audio form, including
2 the production of software or audio-books.
3 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
4 86-1028; 86-1475.)
5 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
6 Sec. 9. Each serviceman required or authorized to
7 collect the tax herein imposed shall pay to the Department
8 the amount of such tax at the time when he is required to
9 file his return for the period during which such tax was
10 collectible, less a discount of 2.1% prior to January 1,
11 1990, and 1.75% on and after January 1, 1990, or $5 per
12 calendar year, whichever is greater, which is allowed to
13 reimburse the serviceman for expenses incurred in collecting
14 the tax, keeping records, preparing and filing returns,
15 remitting the tax and supplying data to the Department on
16 request.
17 Where such tangible personal property is sold under a
18 conditional sales contract, or under any other form of sale
19 wherein the payment of the principal sum, or a part thereof,
20 is extended beyond the close of the period for which the
21 return is filed, the serviceman, in collecting the tax may
22 collect, for each tax return period, only the tax applicable
23 to the part of the selling price actually received during
24 such tax return period.
25 Except as provided hereinafter in this Section, on or
26 before the twentieth day of each calendar month, such
27 serviceman shall file a return for the preceding calendar
28 month in accordance with reasonable rules and regulations to
29 be promulgated by the Department of Revenue. Such return
30 shall be filed on a form prescribed by the Department and
31 shall contain such information as the Department may
32 reasonably require.
33 The Department may require returns to be filed on a
SB1118 Enrolled -96- LRB9102874PTpkA
1 quarterly basis. If so required, a return for each calendar
2 quarter shall be filed on or before the twentieth day of the
3 calendar month following the end of such calendar quarter.
4 The taxpayer shall also file a return with the Department for
5 each of the first two months of each calendar quarter, on or
6 before the twentieth day of the following calendar month,
7 stating:
8 1. The name of the seller;
9 2. The address of the principal place of business
10 from which he engages in business as a serviceman in this
11 State;
12 3. The total amount of taxable receipts received by
13 him during the preceding calendar month, including
14 receipts from charge and time sales, but less all
15 deductions allowed by law;
16 4. The amount of credit provided in Section 2d of
17 this Act;
18 5. The amount of tax due;
19 5-5. The signature of the taxpayer; and
20 6. Such other reasonable information as the
21 Department may require.
22 If a taxpayer fails to sign a return within 30 days after
23 the proper notice and demand for signature by the Department,
24 the return shall be considered valid and any amount shown to
25 be due on the return shall be deemed assessed.
26 A serviceman may accept a Manufacturer's Purchase Credit
27 certification from a purchaser in satisfaction of Service Use
28 Tax as provided in Section 3-70 of the Service Use Tax Act if
29 the purchaser provides the appropriate documentation as
30 required by Section 3-70 of the Service Use Tax Act. A
31 Manufacturer's Purchase Credit certification, accepted by a
32 serviceman as provided in Section 3-70 of the Service Use Tax
33 Act, may be used by that serviceman to satisfy Service
34 Occupation Tax liability in the amount claimed in the
SB1118 Enrolled -97- LRB9102874PTpkA
1 certification, not to exceed 6.25% of the receipts subject to
2 tax from a qualifying purchase.
3 If the serviceman's average monthly tax liability to the
4 Department does not exceed $200, the Department may authorize
5 his returns to be filed on a quarter annual basis, with the
6 return for January, February and March of a given year being
7 due by April 20 of such year; with the return for April, May
8 and June of a given year being due by July 20 of such year;
9 with the return for July, August and September of a given
10 year being due by October 20 of such year, and with the
11 return for October, November and December of a given year
12 being due by January 20 of the following year.
13 If the serviceman's average monthly tax liability to the
14 Department does not exceed $50, the Department may authorize
15 his returns to be filed on an annual basis, with the return
16 for a given year being due by January 20 of the following
17 year.
18 Such quarter annual and annual returns, as to form and
19 substance, shall be subject to the same requirements as
20 monthly returns.
21 Notwithstanding any other provision in this Act
22 concerning the time within which a serviceman may file his
23 return, in the case of any serviceman who ceases to engage in
24 a kind of business which makes him responsible for filing
25 returns under this Act, such serviceman shall file a final
26 return under this Act with the Department not more than 1
27 month after discontinuing such business.
28 Beginning October 1, 1993, a taxpayer who has an average
29 monthly tax liability of $150,000 or more shall make all
30 payments required by rules of the Department by electronic
31 funds transfer. Beginning October 1, 1994, a taxpayer who
32 has an average monthly tax liability of $100,000 or more
33 shall make all payments required by rules of the Department
34 by electronic funds transfer. Beginning October 1, 1995, a
SB1118 Enrolled -98- LRB9102874PTpkA
1 taxpayer who has an average monthly tax liability of $50,000
2 or more shall make all payments required by rules of the
3 Department by electronic funds transfer. Beginning October
4 1, 2000, a taxpayer who has an annual tax liability of
5 $200,000 or more shall make all payments required by rules of
6 the Department by electronic funds transfer. The term
7 "annual tax liability" shall be the sum of the taxpayer's
8 liabilities under this Act, and under all other State and
9 local occupation and use tax laws administered by the
10 Department, for the immediately preceding calendar year. The
11 term "average monthly tax liability" means the sum of the
12 taxpayer's liabilities under this Act, and under all other
13 State and local occupation and use tax laws administered by
14 the Department, for the immediately preceding calendar year
15 divided by 12.
16 Before August 1 of each year beginning in 1993, the
17 Department shall notify all taxpayers required to make
18 payments by electronic funds transfer. All taxpayers
19 required to make payments by electronic funds transfer shall
20 make those payments for a minimum of one year beginning on
21 October 1.
22 Any taxpayer not required to make payments by electronic
23 funds transfer may make payments by electronic funds transfer
24 with the permission of the Department.
25 All taxpayers required to make payment by electronic
26 funds transfer and any taxpayers authorized to voluntarily
27 make payments by electronic funds transfer shall make those
28 payments in the manner authorized by the Department.
29 The Department shall adopt such rules as are necessary to
30 effectuate a program of electronic funds transfer and the
31 requirements of this Section.
32 Where a serviceman collects the tax with respect to the
33 selling price of tangible personal property which he sells
34 and the purchaser thereafter returns such tangible personal
SB1118 Enrolled -99- LRB9102874PTpkA
1 property and the serviceman refunds the selling price thereof
2 to the purchaser, such serviceman shall also refund, to the
3 purchaser, the tax so collected from the purchaser. When
4 filing his return for the period in which he refunds such tax
5 to the purchaser, the serviceman may deduct the amount of the
6 tax so refunded by him to the purchaser from any other
7 Service Occupation Tax, Service Use Tax, Retailers'
8 Occupation Tax or Use Tax which such serviceman may be
9 required to pay or remit to the Department, as shown by such
10 return, provided that the amount of the tax to be deducted
11 shall previously have been remitted to the Department by such
12 serviceman. If the serviceman shall not previously have
13 remitted the amount of such tax to the Department, he shall
14 be entitled to no deduction hereunder upon refunding such tax
15 to the purchaser.
16 If experience indicates such action to be practicable,
17 the Department may prescribe and furnish a combination or
18 joint return which will enable servicemen, who are required
19 to file returns hereunder and also under the Retailers'
20 Occupation Tax Act, the Use Tax Act or the Service Use Tax
21 Act, to furnish all the return information required by all
22 said Acts on the one form.
23 Where the serviceman has more than one business
24 registered with the Department under separate registrations
25 hereunder, such serviceman shall file separate returns for
26 each registered business.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the Local Government Tax Fund the revenue
29 realized for the preceding month from the 1% tax on sales of
30 food for human consumption which is to be consumed off the
31 premises where it is sold (other than alcoholic beverages,
32 soft drinks and food which has been prepared for immediate
33 consumption) and prescription and nonprescription medicines,
34 drugs, medical appliances and insulin, urine testing
SB1118 Enrolled -100- LRB9102874PTpkA
1 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 4%
4 of the revenue realized for the preceding month from the
5 6.25% general rate.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the Local Government Tax Fund 16% of the
8 revenue realized for the preceding month from the 6.25%
9 general rate on transfers of tangible personal property.
10 Of the remainder of the moneys received by the Department
11 pursuant to this Act, (a) 1.75% thereof shall be paid into
12 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
13 and on and after July 1, 1989, 3.8% thereof shall be paid
14 into the Build Illinois Fund; provided, however, that if in
15 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
16 as the case may be, of the moneys received by the Department
17 and required to be paid into the Build Illinois Fund pursuant
18 to Section 3 of the Retailers' Occupation Tax Act, Section 9
19 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
20 Section 9 of the Service Occupation Tax Act, such Acts being
21 hereinafter called the "Tax Acts" and such aggregate of 2.2%
22 or 3.8%, as the case may be, of moneys being hereinafter
23 called the "Tax Act Amount", and (2) the amount transferred
24 to the Build Illinois Fund from the State and Local Sales Tax
25 Reform Fund shall be less than the Annual Specified Amount
26 (as defined in Section 3 of the Retailers' Occupation Tax
27 Act), an amount equal to the difference shall be immediately
28 paid into the Build Illinois Fund from other moneys received
29 by the Department pursuant to the Tax Acts; and further
30 provided, that if on the last business day of any month the
31 sum of (1) the Tax Act Amount required to be deposited into
32 the Build Illinois Account in the Build Illinois Fund during
33 such month and (2) the amount transferred during such month
34 to the Build Illinois Fund from the State and Local Sales Tax
SB1118 Enrolled -101- LRB9102874PTpkA
1 Reform Fund shall have been less than 1/12 of the Annual
2 Specified Amount, an amount equal to the difference shall be
3 immediately paid into the Build Illinois Fund from other
4 moneys received by the Department pursuant to the Tax Acts;
5 and, further provided, that in no event shall the payments
6 required under the preceding proviso result in aggregate
7 payments into the Build Illinois Fund pursuant to this clause
8 (b) for any fiscal year in excess of the greater of (i) the
9 Tax Act Amount or (ii) the Annual Specified Amount for such
10 fiscal year; and, further provided, that the amounts payable
11 into the Build Illinois Fund under this clause (b) shall be
12 payable only until such time as the aggregate amount on
13 deposit under each trust indenture securing Bonds issued and
14 outstanding pursuant to the Build Illinois Bond Act is
15 sufficient, taking into account any future investment income,
16 to fully provide, in accordance with such indenture, for the
17 defeasance of or the payment of the principal of, premium, if
18 any, and interest on the Bonds secured by such indenture and
19 on any Bonds expected to be issued thereafter and all fees
20 and costs payable with respect thereto, all as certified by
21 the Director of the Bureau of the Budget. If on the last
22 business day of any month in which Bonds are outstanding
23 pursuant to the Build Illinois Bond Act, the aggregate of the
24 moneys deposited in the Build Illinois Bond Account in the
25 Build Illinois Fund in such month shall be less than the
26 amount required to be transferred in such month from the
27 Build Illinois Bond Account to the Build Illinois Bond
28 Retirement and Interest Fund pursuant to Section 13 of the
29 Build Illinois Bond Act, an amount equal to such deficiency
30 shall be immediately paid from other moneys received by the
31 Department pursuant to the Tax Acts to the Build Illinois
32 Fund; provided, however, that any amounts paid to the Build
33 Illinois Fund in any fiscal year pursuant to this sentence
34 shall be deemed to constitute payments pursuant to clause (b)
SB1118 Enrolled -102- LRB9102874PTpkA
1 of the preceding sentence and shall reduce the amount
2 otherwise payable for such fiscal year pursuant to clause (b)
3 of the preceding sentence. The moneys received by the
4 Department pursuant to this Act and required to be deposited
5 into the Build Illinois Fund are subject to the pledge, claim
6 and charge set forth in Section 12 of the Build Illinois Bond
7 Act.
8 Subject to payment of amounts into the Build Illinois
9 Fund as provided in the preceding paragraph or in any
10 amendment thereto hereafter enacted, the following specified
11 monthly installment of the amount requested in the
12 certificate of the Chairman of the Metropolitan Pier and
13 Exposition Authority provided under Section 8.25f of the
14 State Finance Act, but not in excess of the sums designated
15 as "Total Deposit", shall be deposited in the aggregate from
16 collections under Section 9 of the Use Tax Act, Section 9 of
17 the Service Use Tax Act, Section 9 of the Service Occupation
18 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
19 into the McCormick Place Expansion Project Fund in the
20 specified fiscal years.
21 Fiscal Year Total Deposit
22 1993 $0
23 1994 53,000,000
24 1995 58,000,000
25 1996 61,000,000
26 1997 64,000,000
27 1998 68,000,000
28 1999 71,000,000
29 2000 75,000,000
30 2001 80,000,000
31 2002 84,000,000
32 2003 89,000,000
33 2004 93,000,000
34 2005 97,000,000
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1 2006 102,000,000
2 2007 and 106,000,000
3 each fiscal year
4 thereafter that bonds
5 are outstanding under
6 Section 13.2 of the
7 Metropolitan Pier and
8 Exposition Authority
9 Act, but not after fiscal year 2029.
10 Beginning July 20, 1993 and in each month of each fiscal
11 year thereafter, one-eighth of the amount requested in the
12 certificate of the Chairman of the Metropolitan Pier and
13 Exposition Authority for that fiscal year, less the amount
14 deposited into the McCormick Place Expansion Project Fund by
15 the State Treasurer in the respective month under subsection
16 (g) of Section 13 of the Metropolitan Pier and Exposition
17 Authority Act, plus cumulative deficiencies in the deposits
18 required under this Section for previous months and years,
19 shall be deposited into the McCormick Place Expansion Project
20 Fund, until the full amount requested for the fiscal year,
21 but not in excess of the amount specified above as "Total
22 Deposit", has been deposited.
23 Subject to payment of amounts into the Build Illinois
24 Fund and the McCormick Place Expansion Project Fund pursuant
25 to the preceding paragraphs or in any amendment thereto
26 hereafter enacted, each month the Department shall pay into
27 the Local Government Distributive Fund 0.4% of the net
28 revenue realized for the preceding month from the 5% general
29 rate or 0.4% of 80% of the net revenue realized for the
30 preceding month from the 6.25% general rate, as the case may
31 be, on the selling price of tangible personal property which
32 amount shall, subject to appropriation, be distributed as
33 provided in Section 2 of the State Revenue Sharing Act. No
34 payments or distributions pursuant to this paragraph shall be
SB1118 Enrolled -104- LRB9102874PTpkA
1 made if the tax imposed by this Act on photoprocessing
2 products is declared unconstitutional, or if the proceeds
3 from such tax are unavailable for distribution because of
4 litigation.
5 Subject to payment of amounts into the Build Illinois
6 Fund, the McCormick Place Expansion Project Fund, and the
7 Local Government Distributive Fund pursuant to the preceding
8 paragraphs or in any amendments thereto hereafter enacted,
9 beginning July 1, 1993, the Department shall each month pay
10 into the Illinois Tax Increment Fund 0.27% of 80% of the net
11 revenue realized for the preceding month from the 6.25%
12 general rate on the selling price of tangible personal
13 property.
14 Remaining moneys received by the Department pursuant to
15 this Act shall be paid into the General Revenue Fund of the
16 State Treasury.
17 The Department may, upon separate written notice to a
18 taxpayer, require the taxpayer to prepare and file with the
19 Department on a form prescribed by the Department within not
20 less than 60 days after receipt of the notice an annual
21 information return for the tax year specified in the notice.
22 Such annual return to the Department shall include a
23 statement of gross receipts as shown by the taxpayer's last
24 Federal income tax return. If the total receipts of the
25 business as reported in the Federal income tax return do not
26 agree with the gross receipts reported to the Department of
27 Revenue for the same period, the taxpayer shall attach to his
28 annual return a schedule showing a reconciliation of the 2
29 amounts and the reasons for the difference. The taxpayer's
30 annual return to the Department shall also disclose the cost
31 of goods sold by the taxpayer during the year covered by such
32 return, opening and closing inventories of such goods for
33 such year, cost of goods used from stock or taken from stock
34 and given away by the taxpayer during such year, pay roll
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1 information of the taxpayer's business during such year and
2 any additional reasonable information which the Department
3 deems would be helpful in determining the accuracy of the
4 monthly, quarterly or annual returns filed by such taxpayer
5 as hereinbefore provided for in this Section.
6 If the annual information return required by this Section
7 is not filed when and as required, the taxpayer shall be
8 liable as follows:
9 (i) Until January 1, 1994, the taxpayer shall be
10 liable for a penalty equal to 1/6 of 1% of the tax due
11 from such taxpayer under this Act during the period to be
12 covered by the annual return for each month or fraction
13 of a month until such return is filed as required, the
14 penalty to be assessed and collected in the same manner
15 as any other penalty provided for in this Act.
16 (ii) On and after January 1, 1994, the taxpayer
17 shall be liable for a penalty as described in Section 3-4
18 of the Uniform Penalty and Interest Act.
19 The chief executive officer, proprietor, owner or highest
20 ranking manager shall sign the annual return to certify the
21 accuracy of the information contained therein. Any person
22 who willfully signs the annual return containing false or
23 inaccurate information shall be guilty of perjury and
24 punished accordingly. The annual return form prescribed by
25 the Department shall include a warning that the person
26 signing the return may be liable for perjury.
27 The foregoing portion of this Section concerning the
28 filing of an annual information return shall not apply to a
29 serviceman who is not required to file an income tax return
30 with the United States Government.
31 As soon as possible after the first day of each month,
32 upon certification of the Department of Revenue, the
33 Comptroller shall order transferred and the Treasurer shall
34 transfer from the General Revenue Fund to the Motor Fuel Tax
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1 Fund an amount equal to 1.7% of 80% of the net revenue
2 realized under this Act for the second preceding month;
3 except that this transfer shall not be made for the months
4 February through June, 1992.
5 Net revenue realized for a month shall be the revenue
6 collected by the State pursuant to this Act, less the amount
7 paid out during that month as refunds to taxpayers for
8 overpayment of liability.
9 For greater simplicity of administration, it shall be
10 permissible for manufacturers, importers and wholesalers
11 whose products are sold by numerous servicemen in Illinois,
12 and who wish to do so, to assume the responsibility for
13 accounting and paying to the Department all tax accruing
14 under this Act with respect to such sales, if the servicemen
15 who are affected do not make written objection to the
16 Department to this arrangement.
17 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
18 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
19 7-8-98.)
20 Section 25. The Retailers' Occupation Tax Act is amended
21 by changing Sections 2-30 and 3 as follows:
22 (35 ILCS 120/2-30) (from Ch. 120, par. 441-30)
23 Sec. 2-30. Graphic arts production. For purposes of
24 this Act, "graphic arts production" means printing, including
25 ink jet printing, by one or more of the common processes
26 described in Groups 323110 through 323122 of Subsector 323,
27 Groups 511110 through 511199 of Subsector 511, and Group
28 512230 of Subsector 512 of the North American Industry
29 Classification System published by the U.S. Office of
30 Management and Budget, 1997 edition or graphic arts
31 production services as those processes and services are
32 defined in Major Group 27 of the U.S. Standard Industrial
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1 Classification Manual. Graphic arts production does not
2 include (i) the transfer of images onto paper or other
3 tangible personal property by means of photocopying or (ii)
4 final printed products in electronic or audio form, including
5 the production of software or audio-books.
6 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
7 86-928; 86-953; 86-1394; 86-1475.)
8 (35 ILCS 120/3) (from Ch. 120, par. 442)
9 Sec. 3. Except as provided in this Section, on or before
10 the twentieth day of each calendar month, every person
11 engaged in the business of selling tangible personal property
12 at retail in this State during the preceding calendar month
13 shall file a return with the Department, stating:
14 1. The name of the seller;
15 2. His residence address and the address of his
16 principal place of business and the address of the
17 principal place of business (if that is a different
18 address) from which he engages in the business of selling
19 tangible personal property at retail in this State;
20 3. Total amount of receipts received by him during
21 the preceding calendar month or quarter, as the case may
22 be, from sales of tangible personal property, and from
23 services furnished, by him during such preceding calendar
24 month or quarter;
25 4. Total amount received by him during the
26 preceding calendar month or quarter on charge and time
27 sales of tangible personal property, and from services
28 furnished, by him prior to the month or quarter for which
29 the return is filed;
30 5. Deductions allowed by law;
31 6. Gross receipts which were received by him during
32 the preceding calendar month or quarter and upon the
33 basis of which the tax is imposed;
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1 7. The amount of credit provided in Section 2d of
2 this Act;
3 8. The amount of tax due;
4 9. The signature of the taxpayer; and
5 10. Such other reasonable information as the
6 Department may require.
7 If a taxpayer fails to sign a return within 30 days after
8 the proper notice and demand for signature by the Department,
9 the return shall be considered valid and any amount shown to
10 be due on the return shall be deemed assessed.
11 Each return shall be accompanied by the statement of
12 prepaid tax issued pursuant to Section 2e for which credit is
13 claimed.
14 A retailer may accept a Manufacturer's Purchase Credit
15 certification from a purchaser in satisfaction of Use Tax as
16 provided in Section 3-85 of the Use Tax Act if the purchaser
17 provides the appropriate documentation as required by Section
18 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
19 certification, accepted by a retailer as provided in Section
20 3-85 of the Use Tax Act, may be used by that retailer to
21 satisfy Retailers' Occupation Tax liability in the amount
22 claimed in the certification, not to exceed 6.25% of the
23 receipts subject to tax from a qualifying purchase.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in the business of selling tangible
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1 personal property at retail in this State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month from sales of
4 tangible personal property by him during such preceding
5 calendar month, including receipts from charge and time
6 sales, but less all deductions allowed by law;
7 4. The amount of credit provided in Section 2d of
8 this Act;
9 5. The amount of tax due; and
10 6. Such other reasonable information as the
11 Department may require.
12 If a total amount of less than $1 is payable, refundable
13 or creditable, such amount shall be disregarded if it is less
14 than 50 cents and shall be increased to $1 if it is 50 cents
15 or more.
16 Beginning October 1, 1993, a taxpayer who has an average
17 monthly tax liability of $150,000 or more shall make all
18 payments required by rules of the Department by electronic
19 funds transfer. Beginning October 1, 1994, a taxpayer who
20 has an average monthly tax liability of $100,000 or more
21 shall make all payments required by rules of the Department
22 by electronic funds transfer. Beginning October 1, 1995, a
23 taxpayer who has an average monthly tax liability of $50,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. Beginning October
26 1, 2000, a taxpayer who has an annual tax liability of
27 $200,000 or more shall make all payments required by rules of
28 the Department by electronic funds transfer. The term
29 "annual tax liability" shall be the sum of the taxpayer's
30 liabilities under this Act, and under all other State and
31 local occupation and use tax laws administered by the
32 Department, for the immediately preceding calendar year. The
33 term "average monthly tax liability" shall be the sum of the
34 taxpayer's liabilities under this Act, and under all other
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1 State and local occupation and use tax laws administered by
2 the Department, for the immediately preceding calendar year
3 divided by 12.
4 Before August 1 of each year beginning in 1993, the
5 Department shall notify all taxpayers required to make
6 payments by electronic funds transfer. All taxpayers
7 required to make payments by electronic funds transfer shall
8 make those payments for a minimum of one year beginning on
9 October 1.
10 Any taxpayer not required to make payments by electronic
11 funds transfer may make payments by electronic funds transfer
12 with the permission of the Department.
13 All taxpayers required to make payment by electronic
14 funds transfer and any taxpayers authorized to voluntarily
15 make payments by electronic funds transfer shall make those
16 payments in the manner authorized by the Department.
17 The Department shall adopt such rules as are necessary to
18 effectuate a program of electronic funds transfer and the
19 requirements of this Section.
20 Any amount which is required to be shown or reported on
21 any return or other document under this Act shall, if such
22 amount is not a whole-dollar amount, be increased to the
23 nearest whole-dollar amount in any case where the fractional
24 part of a dollar is 50 cents or more, and decreased to the
25 nearest whole-dollar amount where the fractional part of a
26 dollar is less than 50 cents.
27 If the retailer is otherwise required to file a monthly
28 return and if the retailer's average monthly tax liability to
29 the Department does not exceed $200, the Department may
30 authorize his returns to be filed on a quarter annual basis,
31 with the return for January, February and March of a given
32 year being due by April 20 of such year; with the return for
33 April, May and June of a given year being due by July 20 of
34 such year; with the return for July, August and September of
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1 a given year being due by October 20 of such year, and with
2 the return for October, November and December of a given year
3 being due by January 20 of the following year.
4 If the retailer is otherwise required to file a monthly
5 or quarterly return and if the retailer's average monthly tax
6 liability with the Department does not exceed $50, the
7 Department may authorize his returns to be filed on an annual
8 basis, with the return for a given year being due by January
9 20 of the following year.
10 Such quarter annual and annual returns, as to form and
11 substance, shall be subject to the same requirements as
12 monthly returns.
13 Notwithstanding any other provision in this Act
14 concerning the time within which a retailer may file his
15 return, in the case of any retailer who ceases to engage in a
16 kind of business which makes him responsible for filing
17 returns under this Act, such retailer shall file a final
18 return under this Act with the Department not more than one
19 month after discontinuing such business.
20 Where the same person has more than one business
21 registered with the Department under separate registrations
22 under this Act, such person may not file each return that is
23 due as a single return covering all such registered
24 businesses, but shall file separate returns for each such
25 registered business.
26 In addition, with respect to motor vehicles, watercraft,
27 aircraft, and trailers that are required to be registered
28 with an agency of this State, every retailer selling this
29 kind of tangible personal property shall file, with the
30 Department, upon a form to be prescribed and supplied by the
31 Department, a separate return for each such item of tangible
32 personal property which the retailer sells, except that
33 where, in the same transaction, a retailer of aircraft,
34 watercraft, motor vehicles or trailers transfers more than
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1 one aircraft, watercraft, motor vehicle or trailer to another
2 aircraft, watercraft, motor vehicle retailer or trailer
3 retailer for the purpose of resale, that seller for resale
4 may report the transfer of all aircraft, watercraft, motor
5 vehicles or trailers involved in that transaction to the
6 Department on the same uniform invoice-transaction reporting
7 return form. For purposes of this Section, "watercraft"
8 means a Class 2, Class 3, or Class 4 watercraft as defined in
9 Section 3-2 of the Boat Registration and Safety Act, a
10 personal watercraft, or any boat equipped with an inboard
11 motor.
12 Any retailer who sells only motor vehicles, watercraft,
13 aircraft, or trailers that are required to be registered with
14 an agency of this State, so that all retailers' occupation
15 tax liability is required to be reported, and is reported, on
16 such transaction reporting returns and who is not otherwise
17 required to file monthly or quarterly returns, need not file
18 monthly or quarterly returns. However, those retailers shall
19 be required to file returns on an annual basis.
20 The transaction reporting return, in the case of motor
21 vehicles or trailers that are required to be registered with
22 an agency of this State, shall be the same document as the
23 Uniform Invoice referred to in Section 5-402 of The Illinois
24 Vehicle Code and must show the name and address of the
25 seller; the name and address of the purchaser; the amount of
26 the selling price including the amount allowed by the
27 retailer for traded-in property, if any; the amount allowed
28 by the retailer for the traded-in tangible personal property,
29 if any, to the extent to which Section 1 of this Act allows
30 an exemption for the value of traded-in property; the balance
31 payable after deducting such trade-in allowance from the
32 total selling price; the amount of tax due from the retailer
33 with respect to such transaction; the amount of tax collected
34 from the purchaser by the retailer on such transaction (or
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1 satisfactory evidence that such tax is not due in that
2 particular instance, if that is claimed to be the fact); the
3 place and date of the sale; a sufficient identification of
4 the property sold; such other information as is required in
5 Section 5-402 of The Illinois Vehicle Code, and such other
6 information as the Department may reasonably require.
7 The transaction reporting return in the case of
8 watercraft or aircraft must show the name and address of the
9 seller; the name and address of the purchaser; the amount of
10 the selling price including the amount allowed by the
11 retailer for traded-in property, if any; the amount allowed
12 by the retailer for the traded-in tangible personal property,
13 if any, to the extent to which Section 1 of this Act allows
14 an exemption for the value of traded-in property; the balance
15 payable after deducting such trade-in allowance from the
16 total selling price; the amount of tax due from the retailer
17 with respect to such transaction; the amount of tax collected
18 from the purchaser by the retailer on such transaction (or
19 satisfactory evidence that such tax is not due in that
20 particular instance, if that is claimed to be the fact); the
21 place and date of the sale, a sufficient identification of
22 the property sold, and such other information as the
23 Department may reasonably require.
24 Such transaction reporting return shall be filed not
25 later than 20 days after the day of delivery of the item that
26 is being sold, but may be filed by the retailer at any time
27 sooner than that if he chooses to do so. The transaction
28 reporting return and tax remittance or proof of exemption
29 from the Illinois use tax may be transmitted to the
30 Department by way of the State agency with which, or State
31 officer with whom the tangible personal property must be
32 titled or registered (if titling or registration is required)
33 if the Department and such agency or State officer determine
34 that this procedure will expedite the processing of
SB1118 Enrolled -114- LRB9102874PTpkA
1 applications for title or registration.
2 With each such transaction reporting return, the retailer
3 shall remit the proper amount of tax due (or shall submit
4 satisfactory evidence that the sale is not taxable if that is
5 the case), to the Department or its agents, whereupon the
6 Department shall issue, in the purchaser's name, a use tax
7 receipt (or a certificate of exemption if the Department is
8 satisfied that the particular sale is tax exempt) which such
9 purchaser may submit to the agency with which, or State
10 officer with whom, he must title or register the tangible
11 personal property that is involved (if titling or
12 registration is required) in support of such purchaser's
13 application for an Illinois certificate or other evidence of
14 title or registration to such tangible personal property.
15 No retailer's failure or refusal to remit tax under this
16 Act precludes a user, who has paid the proper tax to the
17 retailer, from obtaining his certificate of title or other
18 evidence of title or registration (if titling or registration
19 is required) upon satisfying the Department that such user
20 has paid the proper tax (if tax is due) to the retailer. The
21 Department shall adopt appropriate rules to carry out the
22 mandate of this paragraph.
23 If the user who would otherwise pay tax to the retailer
24 wants the transaction reporting return filed and the payment
25 of the tax or proof of exemption made to the Department
26 before the retailer is willing to take these actions and such
27 user has not paid the tax to the retailer, such user may
28 certify to the fact of such delay by the retailer and may
29 (upon the Department being satisfied of the truth of such
30 certification) transmit the information required by the
31 transaction reporting return and the remittance for tax or
32 proof of exemption directly to the Department and obtain his
33 tax receipt or exemption determination, in which event the
34 transaction reporting return and tax remittance (if a tax
SB1118 Enrolled -115- LRB9102874PTpkA
1 payment was required) shall be credited by the Department to
2 the proper retailer's account with the Department, but
3 without the 2.1% or 1.75% discount provided for in this
4 Section being allowed. When the user pays the tax directly
5 to the Department, he shall pay the tax in the same amount
6 and in the same form in which it would be remitted if the tax
7 had been remitted to the Department by the retailer.
8 Refunds made by the seller during the preceding return
9 period to purchasers, on account of tangible personal
10 property returned to the seller, shall be allowed as a
11 deduction under subdivision 5 of his monthly or quarterly
12 return, as the case may be, in case the seller had
13 theretofore included the receipts from the sale of such
14 tangible personal property in a return filed by him and had
15 paid the tax imposed by this Act with respect to such
16 receipts.
17 Where the seller is a corporation, the return filed on
18 behalf of such corporation shall be signed by the president,
19 vice-president, secretary or treasurer or by the properly
20 accredited agent of such corporation.
21 Where the seller is a limited liability company, the
22 return filed on behalf of the limited liability company shall
23 be signed by a manager, member, or properly accredited agent
24 of the limited liability company.
25 Except as provided in this Section, the retailer filing
26 the return under this Section shall, at the time of filing
27 such return, pay to the Department the amount of tax imposed
28 by this Act less a discount of 2.1% prior to January 1, 1990
29 and 1.75% on and after January 1, 1990, or $5 per calendar
30 year, whichever is greater, which is allowed to reimburse the
31 retailer for the expenses incurred in keeping records,
32 preparing and filing returns, remitting the tax and supplying
33 data to the Department on request. Any prepayment made
34 pursuant to Section 2d of this Act shall be included in the
SB1118 Enrolled -116- LRB9102874PTpkA
1 amount on which such 2.1% or 1.75% discount is computed. In
2 the case of retailers who report and pay the tax on a
3 transaction by transaction basis, as provided in this
4 Section, such discount shall be taken with each such tax
5 remittance instead of when such retailer files his periodic
6 return.
7 Before October 1, 2000, if the taxpayer's average monthly
8 tax liability to the Department under this Act, the Use Tax
9 Act, the Service Occupation Tax Act, and the Service Use Tax
10 Act, excluding any liability for prepaid sales tax to be
11 remitted in accordance with Section 2d of this Act, was
12 $10,000 or more during the preceding 4 complete calendar
13 quarters, he shall file a return with the Department each
14 month by the 20th day of the month next following the month
15 during which such tax liability is incurred and shall make
16 payments to the Department on or before the 7th, 15th, 22nd
17 and last day of the month during which such liability is
18 incurred. On and after October 1, 2000, if the taxpayer's
19 average monthly tax liability to the Department under this
20 Act, the Use Tax Act, the Service Occupation Tax Act, and the
21 Service Use Tax Act, excluding any liability for prepaid
22 sales tax to be remitted in accordance with Section 2d of
23 this Act, was $20,000 or more during the preceding 4 complete
24 calendar quarters, he shall file a return with the Department
25 each month by the 20th day of the month next following the
26 month during which such tax liability is incurred and shall
27 make payment to the Department on or before the 7th, 15th,
28 22nd and last day of the month during which such liability is
29 incurred. If the month during which such tax liability is
30 incurred began prior to January 1, 1985, each payment shall
31 be in an amount equal to 1/4 of the taxpayer's actual
32 liability for the month or an amount set by the Department
33 not to exceed 1/4 of the average monthly liability of the
34 taxpayer to the Department for the preceding 4 complete
SB1118 Enrolled -117- LRB9102874PTpkA
1 calendar quarters (excluding the month of highest liability
2 and the month of lowest liability in such 4 quarter period).
3 If the month during which such tax liability is incurred
4 begins on or after January 1, 1985 and prior to January 1,
5 1987, each payment shall be in an amount equal to 22.5% of
6 the taxpayer's actual liability for the month or 27.5% of the
7 taxpayer's liability for the same calendar month of the
8 preceding year. If the month during which such tax liability
9 is incurred begins on or after January 1, 1987 and prior to
10 January 1, 1988, each payment shall be in an amount equal to
11 22.5% of the taxpayer's actual liability for the month or
12 26.25% of the taxpayer's liability for the same calendar
13 month of the preceding year. If the month during which such
14 tax liability is incurred begins on or after January 1, 1988,
15 and prior to January 1, 1989, or begins on or after January
16 1, 1996, each payment shall be in an amount equal to 22.5% of
17 the taxpayer's actual liability for the month or 25% of the
18 taxpayer's liability for the same calendar month of the
19 preceding year. If the month during which such tax liability
20 is incurred begins on or after January 1, 1989, and prior to
21 January 1, 1996, each payment shall be in an amount equal to
22 22.5% of the taxpayer's actual liability for the month or 25%
23 of the taxpayer's liability for the same calendar month of
24 the preceding year or 100% of the taxpayer's actual liability
25 for the quarter monthly reporting period. The amount of such
26 quarter monthly payments shall be credited against the final
27 tax liability of the taxpayer's return for that month.
28 Before October 1, 2000, once applicable, the requirement of
29 the making of quarter monthly payments to the Department by
30 taxpayers having an average monthly tax liability of $10,000
31 or more as determined in the manner provided above shall
32 continue until such taxpayer's average monthly liability to
33 the Department during the preceding 4 complete calendar
34 quarters (excluding the month of highest liability and the
SB1118 Enrolled -118- LRB9102874PTpkA
1 month of lowest liability) is less than $9,000, or until such
2 taxpayer's average monthly liability to the Department as
3 computed for each calendar quarter of the 4 preceding
4 complete calendar quarter period is less than $10,000.
5 However, if a taxpayer can show the Department that a
6 substantial change in the taxpayer's business has occurred
7 which causes the taxpayer to anticipate that his average
8 monthly tax liability for the reasonably foreseeable future
9 will fall below the $10,000 threshold stated above, then such
10 taxpayer may petition the Department for a change in such
11 taxpayer's reporting status. On and after October 1, 2000,
12 once applicable, the requirement of the making of quarter
13 monthly payments to the Department by taxpayers having an
14 average monthly tax liability of $20,000 or more as
15 determined in the manner provided above shall continue until
16 such taxpayer's average monthly liability to the Department
17 during the preceding 4 complete calendar quarters (excluding
18 the month of highest liability and the month of lowest
19 liability) is less than $19,000 or until such taxpayer's
20 average monthly liability to the Department as computed for
21 each calendar quarter of the 4 preceding complete calendar
22 quarter period is less than $20,000. However, if a taxpayer
23 can show the Department that a substantial change in the
24 taxpayer's business has occurred which causes the taxpayer to
25 anticipate that his average monthly tax liability for the
26 reasonably foreseeable future will fall below the $20,000
27 threshold stated above, then such taxpayer may petition the
28 Department for a change in such taxpayer's reporting status.
29 The Department shall change such taxpayer's reporting status
30 unless it finds that such change is seasonal in nature and
31 not likely to be long term. If any such quarter monthly
32 payment is not paid at the time or in the amount required by
33 this Section, then the taxpayer shall be liable for penalties
34 and interest on the difference between the minimum amount due
SB1118 Enrolled -119- LRB9102874PTpkA
1 as a payment and the amount of such quarter monthly payment
2 actually and timely paid, except insofar as the taxpayer has
3 previously made payments for that month to the Department in
4 excess of the minimum payments previously due as provided in
5 this Section. The Department shall make reasonable rules and
6 regulations to govern the quarter monthly payment amount and
7 quarter monthly payment dates for taxpayers who file on other
8 than a calendar monthly basis.
9 Without regard to whether a taxpayer is required to make
10 quarter monthly payments as specified above, any taxpayer who
11 is required by Section 2d of this Act to collect and remit
12 prepaid taxes and has collected prepaid taxes which average
13 in excess of $25,000 per month during the preceding 2
14 complete calendar quarters, shall file a return with the
15 Department as required by Section 2f and shall make payments
16 to the Department on or before the 7th, 15th, 22nd and last
17 day of the month during which such liability is incurred. If
18 the month during which such tax liability is incurred began
19 prior to the effective date of this amendatory Act of 1985,
20 each payment shall be in an amount not less than 22.5% of the
21 taxpayer's actual liability under Section 2d. If the month
22 during which such tax liability is incurred begins on or
23 after January 1, 1986, each payment shall be in an amount
24 equal to 22.5% of the taxpayer's actual liability for the
25 month or 27.5% of the taxpayer's liability for the same
26 calendar month of the preceding calendar year. If the month
27 during which such tax liability is incurred begins on or
28 after January 1, 1987, each payment shall be in an amount
29 equal to 22.5% of the taxpayer's actual liability for the
30 month or 26.25% of the taxpayer's liability for the same
31 calendar month of the preceding year. The amount of such
32 quarter monthly payments shall be credited against the final
33 tax liability of the taxpayer's return for that month filed
34 under this Section or Section 2f, as the case may be. Once
SB1118 Enrolled -120- LRB9102874PTpkA
1 applicable, the requirement of the making of quarter monthly
2 payments to the Department pursuant to this paragraph shall
3 continue until such taxpayer's average monthly prepaid tax
4 collections during the preceding 2 complete calendar quarters
5 is $25,000 or less. If any such quarter monthly payment is
6 not paid at the time or in the amount required, the taxpayer
7 shall be liable for penalties and interest on such
8 difference, except insofar as the taxpayer has previously
9 made payments for that month in excess of the minimum
10 payments previously due.
11 If any payment provided for in this Section exceeds the
12 taxpayer's liabilities under this Act, the Use Tax Act, the
13 Service Occupation Tax Act and the Service Use Tax Act, as
14 shown on an original monthly return, the Department shall, if
15 requested by the taxpayer, issue to the taxpayer a credit
16 memorandum no later than 30 days after the date of payment.
17 The credit evidenced by such credit memorandum may be
18 assigned by the taxpayer to a similar taxpayer under this
19 Act, the Use Tax Act, the Service Occupation Tax Act or the
20 Service Use Tax Act, in accordance with reasonable rules and
21 regulations to be prescribed by the Department. If no such
22 request is made, the taxpayer may credit such excess payment
23 against tax liability subsequently to be remitted to the
24 Department under this Act, the Use Tax Act, the Service
25 Occupation Tax Act or the Service Use Tax Act, in accordance
26 with reasonable rules and regulations prescribed by the
27 Department. If the Department subsequently determined that
28 all or any part of the credit taken was not actually due to
29 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
30 shall be reduced by 2.1% or 1.75% of the difference between
31 the credit taken and that actually due, and that taxpayer
32 shall be liable for penalties and interest on such
33 difference.
34 If a retailer of motor fuel is entitled to a credit under
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1 Section 2d of this Act which exceeds the taxpayer's liability
2 to the Department under this Act for the month which the
3 taxpayer is filing a return, the Department shall issue the
4 taxpayer a credit memorandum for the excess.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the Local Government Tax Fund, a special fund
7 in the State treasury which is hereby created, the net
8 revenue realized for the preceding month from the 1% tax on
9 sales of food for human consumption which is to be consumed
10 off the premises where it is sold (other than alcoholic
11 beverages, soft drinks and food which has been prepared for
12 immediate consumption) and prescription and nonprescription
13 medicines, drugs, medical appliances and insulin, urine
14 testing materials, syringes and needles used by diabetics.
15 Beginning January 1, 1990, each month the Department
16 shall pay into the County and Mass Transit District Fund, a
17 special fund in the State treasury which is hereby created,
18 4% of the net revenue realized for the preceding month from
19 the 6.25% general rate.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the Local Government Tax Fund 16% of the net
22 revenue realized for the preceding month from the 6.25%
23 general rate on the selling price of tangible personal
24 property.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, (a) 1.75% thereof shall be paid into
27 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
28 and on and after July 1, 1989, 3.8% thereof shall be paid
29 into the Build Illinois Fund; provided, however, that if in
30 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31 as the case may be, of the moneys received by the Department
32 and required to be paid into the Build Illinois Fund pursuant
33 to this Act, Section 9 of the Use Tax Act, Section 9 of the
34 Service Use Tax Act, and Section 9 of the Service Occupation
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1 Tax Act, such Acts being hereinafter called the "Tax Acts"
2 and such aggregate of 2.2% or 3.8%, as the case may be, of
3 moneys being hereinafter called the "Tax Act Amount", and (2)
4 the amount transferred to the Build Illinois Fund from the
5 State and Local Sales Tax Reform Fund shall be less than the
6 Annual Specified Amount (as hereinafter defined), an amount
7 equal to the difference shall be immediately paid into the
8 Build Illinois Fund from other moneys received by the
9 Department pursuant to the Tax Acts; the "Annual Specified
10 Amount" means the amounts specified below for fiscal years
11 1986 through 1993:
12 Fiscal Year Annual Specified Amount
13 1986 $54,800,000
14 1987 $76,650,000
15 1988 $80,480,000
16 1989 $88,510,000
17 1990 $115,330,000
18 1991 $145,470,000
19 1992 $182,730,000
20 1993 $206,520,000;
21 and means the Certified Annual Debt Service Requirement (as
22 defined in Section 13 of the Build Illinois Bond Act) or the
23 Tax Act Amount, whichever is greater, for fiscal year 1994
24 and each fiscal year thereafter; and further provided, that
25 if on the last business day of any month the sum of (1) the
26 Tax Act Amount required to be deposited into the Build
27 Illinois Bond Account in the Build Illinois Fund during such
28 month and (2) the amount transferred to the Build Illinois
29 Fund from the State and Local Sales Tax Reform Fund shall
30 have been less than 1/12 of the Annual Specified Amount, an
31 amount equal to the difference shall be immediately paid into
32 the Build Illinois Fund from other moneys received by the
33 Department pursuant to the Tax Acts; and, further provided,
34 that in no event shall the payments required under the
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1 preceding proviso result in aggregate payments into the Build
2 Illinois Fund pursuant to this clause (b) for any fiscal year
3 in excess of the greater of (i) the Tax Act Amount or (ii)
4 the Annual Specified Amount for such fiscal year. The
5 amounts payable into the Build Illinois Fund under clause (b)
6 of the first sentence in this paragraph shall be payable only
7 until such time as the aggregate amount on deposit under each
8 trust indenture securing Bonds issued and outstanding
9 pursuant to the Build Illinois Bond Act is sufficient, taking
10 into account any future investment income, to fully provide,
11 in accordance with such indenture, for the defeasance of or
12 the payment of the principal of, premium, if any, and
13 interest on the Bonds secured by such indenture and on any
14 Bonds expected to be issued thereafter and all fees and costs
15 payable with respect thereto, all as certified by the
16 Director of the Bureau of the Budget. If on the last
17 business day of any month in which Bonds are outstanding
18 pursuant to the Build Illinois Bond Act, the aggregate of
19 moneys deposited in the Build Illinois Bond Account in the
20 Build Illinois Fund in such month shall be less than the
21 amount required to be transferred in such month from the
22 Build Illinois Bond Account to the Build Illinois Bond
23 Retirement and Interest Fund pursuant to Section 13 of the
24 Build Illinois Bond Act, an amount equal to such deficiency
25 shall be immediately paid from other moneys received by the
26 Department pursuant to the Tax Acts to the Build Illinois
27 Fund; provided, however, that any amounts paid to the Build
28 Illinois Fund in any fiscal year pursuant to this sentence
29 shall be deemed to constitute payments pursuant to clause (b)
30 of the first sentence of this paragraph and shall reduce the
31 amount otherwise payable for such fiscal year pursuant to
32 that clause (b). The moneys received by the Department
33 pursuant to this Act and required to be deposited into the
34 Build Illinois Fund are subject to the pledge, claim and
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1 charge set forth in Section 12 of the Build Illinois Bond
2 Act.
3 Subject to payment of amounts into the Build Illinois
4 Fund as provided in the preceding paragraph or in any
5 amendment thereto hereafter enacted, the following specified
6 monthly installment of the amount requested in the
7 certificate of the Chairman of the Metropolitan Pier and
8 Exposition Authority provided under Section 8.25f of the
9 State Finance Act, but not in excess of sums designated as
10 "Total Deposit", shall be deposited in the aggregate from
11 collections under Section 9 of the Use Tax Act, Section 9 of
12 the Service Use Tax Act, Section 9 of the Service Occupation
13 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
14 into the McCormick Place Expansion Project Fund in the
15 specified fiscal years.
16 Fiscal Year Total Deposit
17 1993 $0
18 1994 53,000,000
19 1995 58,000,000
20 1996 61,000,000
21 1997 64,000,000
22 1998 68,000,000
23 1999 71,000,000
24 2000 75,000,000
25 2001 80,000,000
26 2002 84,000,000
27 2003 89,000,000
28 2004 93,000,000
29 2005 97,000,000
30 2006 102,000,000
31 2007 and 106,000,000
32 each fiscal year
33 thereafter that bonds
34 are outstanding under
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1 Section 13.2 of the
2 Metropolitan Pier and
3 Exposition Authority
4 Act, but not after fiscal year 2029.
5 Beginning July 20, 1993 and in each month of each fiscal
6 year thereafter, one-eighth of the amount requested in the
7 certificate of the Chairman of the Metropolitan Pier and
8 Exposition Authority for that fiscal year, less the amount
9 deposited into the McCormick Place Expansion Project Fund by
10 the State Treasurer in the respective month under subsection
11 (g) of Section 13 of the Metropolitan Pier and Exposition
12 Authority Act, plus cumulative deficiencies in the deposits
13 required under this Section for previous months and years,
14 shall be deposited into the McCormick Place Expansion Project
15 Fund, until the full amount requested for the fiscal year,
16 but not in excess of the amount specified above as "Total
17 Deposit", has been deposited.
18 Subject to payment of amounts into the Build Illinois
19 Fund and the McCormick Place Expansion Project Fund pursuant
20 to the preceding paragraphs or in any amendment thereto
21 hereafter enacted, each month the Department shall pay into
22 the Local Government Distributive Fund 0.4% of the net
23 revenue realized for the preceding month from the 5% general
24 rate or 0.4% of 80% of the net revenue realized for the
25 preceding month from the 6.25% general rate, as the case may
26 be, on the selling price of tangible personal property which
27 amount shall, subject to appropriation, be distributed as
28 provided in Section 2 of the State Revenue Sharing Act. No
29 payments or distributions pursuant to this paragraph shall be
30 made if the tax imposed by this Act on photoprocessing
31 products is declared unconstitutional, or if the proceeds
32 from such tax are unavailable for distribution because of
33 litigation.
34 Subject to payment of amounts into the Build Illinois
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1 Fund, the McCormick Place Expansion Project to the preceding
2 paragraphs or in any amendments thereto hereafter enacted,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% of the net
5 revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property.
8 Of the remainder of the moneys received by the Department
9 pursuant to this Act, 75% thereof shall be paid into the
10 State Treasury and 25% shall be reserved in a special account
11 and used only for the transfer to the Common School Fund as
12 part of the monthly transfer from the General Revenue Fund in
13 accordance with Section 8a of the State Finance Act.
14 The Department may, upon separate written notice to a
15 taxpayer, require the taxpayer to prepare and file with the
16 Department on a form prescribed by the Department within not
17 less than 60 days after receipt of the notice an annual
18 information return for the tax year specified in the notice.
19 Such annual return to the Department shall include a
20 statement of gross receipts as shown by the retailer's last
21 Federal income tax return. If the total receipts of the
22 business as reported in the Federal income tax return do not
23 agree with the gross receipts reported to the Department of
24 Revenue for the same period, the retailer shall attach to his
25 annual return a schedule showing a reconciliation of the 2
26 amounts and the reasons for the difference. The retailer's
27 annual return to the Department shall also disclose the cost
28 of goods sold by the retailer during the year covered by such
29 return, opening and closing inventories of such goods for
30 such year, costs of goods used from stock or taken from stock
31 and given away by the retailer during such year, payroll
32 information of the retailer's business during such year and
33 any additional reasonable information which the Department
34 deems would be helpful in determining the accuracy of the
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1 monthly, quarterly or annual returns filed by such retailer
2 as provided for in this Section.
3 If the annual information return required by this Section
4 is not filed when and as required, the taxpayer shall be
5 liable as follows:
6 (i) Until January 1, 1994, the taxpayer shall be
7 liable for a penalty equal to 1/6 of 1% of the tax due
8 from such taxpayer under this Act during the period to be
9 covered by the annual return for each month or fraction
10 of a month until such return is filed as required, the
11 penalty to be assessed and collected in the same manner
12 as any other penalty provided for in this Act.
13 (ii) On and after January 1, 1994, the taxpayer
14 shall be liable for a penalty as described in Section 3-4
15 of the Uniform Penalty and Interest Act.
16 The chief executive officer, proprietor, owner or highest
17 ranking manager shall sign the annual return to certify the
18 accuracy of the information contained therein. Any person
19 who willfully signs the annual return containing false or
20 inaccurate information shall be guilty of perjury and
21 punished accordingly. The annual return form prescribed by
22 the Department shall include a warning that the person
23 signing the return may be liable for perjury.
24 The provisions of this Section concerning the filing of
25 an annual information return do not apply to a retailer who
26 is not required to file an income tax return with the United
27 States Government.
28 As soon as possible after the first day of each month,
29 upon certification of the Department of Revenue, the
30 Comptroller shall order transferred and the Treasurer shall
31 transfer from the General Revenue Fund to the Motor Fuel Tax
32 Fund an amount equal to 1.7% of 80% of the net revenue
33 realized under this Act for the second preceding month;
34 except that this transfer shall not be made for the months
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1 February through June, 1992.
2 Net revenue realized for a month shall be the revenue
3 collected by the State pursuant to this Act, less the amount
4 paid out during that month as refunds to taxpayers for
5 overpayment of liability.
6 For greater simplicity of administration, manufacturers,
7 importers and wholesalers whose products are sold at retail
8 in Illinois by numerous retailers, and who wish to do so, may
9 assume the responsibility for accounting and paying to the
10 Department all tax accruing under this Act with respect to
11 such sales, if the retailers who are affected do not make
12 written objection to the Department to this arrangement.
13 Any person who promotes, organizes, provides retail
14 selling space for concessionaires or other types of sellers
15 at the Illinois State Fair, DuQuoin State Fair, county fairs,
16 local fairs, art shows, flea markets and similar exhibitions
17 or events, including any transient merchant as defined by
18 Section 2 of the Transient Merchant Act of 1987, is required
19 to file a report with the Department providing the name of
20 the merchant's business, the name of the person or persons
21 engaged in merchant's business, the permanent address and
22 Illinois Retailers Occupation Tax Registration Number of the
23 merchant, the dates and location of the event and other
24 reasonable information that the Department may require. The
25 report must be filed not later than the 20th day of the month
26 next following the month during which the event with retail
27 sales was held. Any person who fails to file a report
28 required by this Section commits a business offense and is
29 subject to a fine not to exceed $250.
30 Any person engaged in the business of selling tangible
31 personal property at retail as a concessionaire or other type
32 of seller at the Illinois State Fair, county fairs, art
33 shows, flea markets and similar exhibitions or events, or any
34 transient merchants, as defined by Section 2 of the Transient
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1 Merchant Act of 1987, may be required to make a daily report
2 of the amount of such sales to the Department and to make a
3 daily payment of the full amount of tax due. The Department
4 shall impose this requirement when it finds that there is a
5 significant risk of loss of revenue to the State at such an
6 exhibition or event. Such a finding shall be based on
7 evidence that a substantial number of concessionaires or
8 other sellers who are not residents of Illinois will be
9 engaging in the business of selling tangible personal
10 property at retail at the exhibition or event, or other
11 evidence of a significant risk of loss of revenue to the
12 State. The Department shall notify concessionaires and other
13 sellers affected by the imposition of this requirement. In
14 the absence of notification by the Department, the
15 concessionaires and other sellers shall file their returns as
16 otherwise required in this Section.
17 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
18 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
19 1-1-99; 90-612, eff. 7-8-98.)
20 Section 30. The Telecommunications Excise Tax Act is
21 amended by changing Section 6 as follows:
22 (35 ILCS 630/6) (from Ch. 120, par. 2006)
23 Sec. 6. Except as provided hereinafter in this Section,
24 on or before the 15th day of each month each retailer
25 maintaining a place of business in this State shall make a
26 return to the Department for the preceding calendar month,
27 stating:
28 1. His name;
29 2. The address of his principal place of business,
30 and the address of the principal place of business (if
31 that is a different address) from which he engages in the
32 business of transmitting telecommunications;
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1 3. Total amount of gross charges billed by him
2 during the preceding calendar month for providing
3 telecommunications during such calendar month;
4 4. Total amount received by him during the
5 preceding calendar month on credit extended;
6 5. Deductions allowed by law;
7 6. Gross charges which were billed by him during
8 the preceding calendar month and upon the basis of which
9 the tax is imposed;
10 7. Amount of tax (computed upon Item 6);
11 8. Such other reasonable information as the
12 Department may require.
13 Any taxpayer required to make payments under this Section
14 may make the payments by electronic funds transfer. The
15 Department shall adopt rules necessary to effectuate a
16 program of electronic funds transfer.
17 If the retailer's average monthly tax billings due to the
18 Department do not exceed $200 $100, the Department may
19 authorize his returns to be filed on a quarter annual basis,
20 with the return for January, February and March of a given
21 year being due by April 15 of such year; with the return for
22 April, May and June of a given year being due by July 15 of
23 such year; with the return for July, August and September of
24 a given year being due by October 15 of such year; and with
25 the return of October, November and December of a given year
26 being due by January 15 of the following year.
27 If the retailer is otherwise required to file a monthly
28 or quarterly return and if the retailer's average monthly tax
29 billings due to the Department do not exceed $50, the
30 Department may authorize his or her return to be filed on an
31 annual basis, with the return for a given year being due by
32 January 15th of the following year.
33 Notwithstanding any other provision of this Article
34 containing the time within which a retailer may file his
SB1118 Enrolled -131- LRB9102874PTpkA
1 return, in the case of any retailer who ceases to engage in a
2 kind of business which makes him responsible for filing
3 returns under this Article, such retailer shall file a final
4 return under this Article with the Department not more than
5 one month after discontinuing such business.
6 In making such return, the retailer shall determine the
7 value of any consideration other than money received by him
8 and he shall include such value in his return. Such
9 determination shall be subject to review and revision by the
10 Department in the manner hereinafter provided for the
11 correction of returns.
12 Each retailer whose average monthly liability to the
13 Department under this Article was $10,000 or more during the
14 preceding calendar year, excluding the month of highest
15 liability and the month of lowest liability in such calendar
16 year, and who is not operated by a unit of local government,
17 shall make estimated payments to the Department on or before
18 the 7th, 15th, 22nd and last day of the month during which
19 tax collection liability to the Department is incurred in an
20 amount not less than the lower of either 22.5% of the
21 retailer's actual tax collections for the month or 25% of the
22 retailer's actual tax collections for the same calendar month
23 of the preceding year. The amount of such quarter monthly
24 payments shall be credited against the final liability of the
25 retailer's return for that month. Any outstanding credit,
26 approved by the Department, arising from the retailer's
27 overpayment of its final liability for any month may be
28 applied to reduce the amount of any subsequent quarter
29 monthly payment or credited against the final liability of
30 the retailer's return for any subsequent month. If any
31 quarter monthly payment is not paid at the time or in the
32 amount required by this Section, the retailer shall be liable
33 for penalty and interest on the difference between the
34 minimum amount due as a payment and the amount of such
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1 payment actually and timely paid, except insofar as the
2 retailer has previously made payments for that month to the
3 Department in excess of the minimum payments previously due.
4 If the Director finds that the information required for
5 the making of an accurate return cannot reasonably be
6 compiled by a retailer within 15 days after the close of the
7 calendar month for which a return is to be made, he may grant
8 an extension of time for the filing of such return for a
9 period of not to exceed 31 calendar days. The granting of
10 such an extension may be conditioned upon the deposit by the
11 retailer with the Department of an amount of money not
12 exceeding the amount estimated by the Director to be due with
13 the return so extended. All such deposits, including any
14 heretofore made with the Department, shall be credited
15 against the retailer's liabilities under this Article. If
16 any such deposit exceeds the retailer's present and probable
17 future liabilities under this Article, the Department shall
18 issue to the retailer a credit memorandum, which may be
19 assigned by the retailer to a similar retailer under this
20 Article, in accordance with reasonable rules and regulations
21 to be prescribed by the Department.
22 The retailer making the return herein provided for shall,
23 at the time of making such return, pay to the Department the
24 amount of tax herein imposed. On and after the effective date
25 of this Article of 1985, $1,000,000 of the moneys received by
26 the Department of Revenue pursuant to this Article shall be
27 paid each month into the Common School Fund and the remainder
28 into the General Revenue Fund. On and after February 1, 1998,
29 however, of the moneys received by the Department of Revenue
30 pursuant to the additional taxes imposed by this amendatory
31 Act of 1997 one-half shall be deposited into the School
32 Infrastructure Fund and one-half shall be deposited into the
33 Common School Fund.
34 (Source: P.A. 90-16, eff. 6-16-97; 90-548, eff. 12-4-97.)
SB1118 Enrolled -133- LRB9102874PTpkA
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.
SB1118 Enrolled -134- LRB9102874PTpkA
1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 5/203 from Ch. 120, par. 2-203
4 35 ILCS 5/207 from Ch. 120, par. 2-207
5 35 ILCS 5/405 new
6 35 ILCS 5/502 from Ch. 120, par. 5-502
7 35 ILCS 5/601.1 Ch. 120, par. 6-601.1
8 35 ILCS 5/905 from Ch. 120, par. 9-905
9 35 ILCS 5/911 from Ch. 120, par. 9-911
10 35 ILCS 105/9 from Ch. 120, par. 439.9
11 35 ILCS 105/10 from Ch. 120, par. 439.10
12 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
13 35 ILCS 110/9 from Ch. 120, par. 439.39
14 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
15 35 ILCS 115/9 from Ch. 120, par. 439.109
16 35 ILCS 120/3 from Ch. 120, par. 442
17 35 ILCS 630/6 from Ch. 120, par. 2006
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