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91_SB1453enr
SB1453 Enrolled LRB9111084SMdv
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 Department of Revenue Law of the Civil
5 Administrative Code of Illinois is amended by adding Section
6 2505-710 as follows:
7 (20 ILCS 2505/2505-710 new)
8 Sec. 2505-710. Occupation and Use Tax Reporting and
9 Simplification Committee and report. The Department is
10 authorized and empowered to convene an Occupation and Use Tax
11 Reporting and Simplification Committee for the purpose of
12 reviewing proposed methods for simplifying Illinois
13 occupation and use tax reporting requirements. The Committee
14 shall consist of the Director or such person or persons as he
15 or she may designate, 3 representatives of the business
16 community appointed by the Director, and 3 representatives of
17 local government appointed by the Director. The Committee so
18 assembled shall study methods for simplifying occupation and
19 use tax reporting requirements in general and, in particular,
20 shall review the feasibility of reducing the number of
21 occupation and use tax returns required to be filed each
22 taxable year. The Committee shall submit a report of its
23 findings to the General Assembly on or before January 1,
24 2001.
25 Section 10. The Use Tax Act is amended by changing
26 Sections 3-5, 9, 10, and 22 as follows:
27 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
28 Sec. 3-5. Exemptions. Use of the following tangible
29 personal property is exempt from the tax imposed by this Act:
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1 (1) Personal property purchased from a corporation,
2 society, association, foundation, institution, or
3 organization, other than a limited liability company, that is
4 organized and operated as a not-for-profit service enterprise
5 for the benefit of persons 65 years of age or older if the
6 personal property was not purchased by the enterprise for the
7 purpose of resale by the enterprise.
8 (2) Personal property purchased by a not-for-profit
9 Illinois county fair association for use in conducting,
10 operating, or promoting the county fair.
11 (3) Personal property purchased by a not-for-profit arts
12 or cultural organization that establishes, by proof required
13 by the Department by rule, that it has received an exemption
14 under Section 501(c)(3) of the Internal Revenue Code and that
15 is organized and operated for the presentation or support of
16 arts or cultural programming, activities, or services. These
17 organizations include, but are not limited to, music and
18 dramatic arts organizations such as symphony orchestras and
19 theatrical groups, arts and cultural service organizations,
20 local arts councils, visual arts organizations, and media
21 arts organizations.
22 (4) Personal property purchased by a governmental body,
23 by a corporation, society, association, foundation, or
24 institution organized and operated exclusively for
25 charitable, religious, or educational purposes, or by a
26 not-for-profit corporation, society, association, foundation,
27 institution, or organization that has no compensated officers
28 or employees and that is organized and operated primarily for
29 the recreation of persons 55 years of age or older. A limited
30 liability company may qualify for the exemption under this
31 paragraph only if the limited liability company is organized
32 and operated exclusively for educational purposes. On and
33 after July 1, 1987, however, no entity otherwise eligible for
34 this exemption shall make tax-free purchases unless it has an
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1 active exemption identification number issued by the
2 Department.
3 (5) A passenger car that is a replacement vehicle to the
4 extent that the purchase price of the car is subject to the
5 Replacement Vehicle Tax.
6 (6) Graphic arts machinery and equipment, including
7 repair and replacement parts, both new and used, and
8 including that manufactured on special order, certified by
9 the purchaser to be used primarily for graphic arts
10 production, and including machinery and equipment purchased
11 for lease.
12 (7) Farm chemicals.
13 (8) Legal tender, currency, medallions, or gold or
14 silver coinage issued by the State of Illinois, the
15 government of the United States of America, or the government
16 of any foreign country, and bullion.
17 (9) Personal property purchased from a teacher-sponsored
18 student organization affiliated with an elementary or
19 secondary school located in Illinois.
20 (10) A motor vehicle of the first division, a motor
21 vehicle of the second division that is a self-contained motor
22 vehicle designed or permanently converted to provide living
23 quarters for recreational, camping, or travel use, with
24 direct walk through to the living quarters from the driver's
25 seat, or a motor vehicle of the second division that is of
26 the van configuration designed for the transportation of not
27 less than 7 nor more than 16 passengers, as defined in
28 Section 1-146 of the Illinois Vehicle Code, that is used for
29 automobile renting, as defined in the Automobile Renting
30 Occupation and Use Tax Act.
31 (11) Farm machinery and equipment, both new and used,
32 including that manufactured on special order, certified by
33 the purchaser to be used primarily for production agriculture
34 or State or federal agricultural programs, including
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1 individual replacement parts for the machinery and equipment,
2 including machinery and equipment purchased for lease, and
3 including implements of husbandry defined in Section 1-130 of
4 the Illinois Vehicle Code, farm machinery and agricultural
5 chemical and fertilizer spreaders, and nurse wagons required
6 to be registered under Section 3-809 of the Illinois Vehicle
7 Code, but excluding other motor vehicles required to be
8 registered under the Illinois Vehicle Code. Horticultural
9 polyhouses or hoop houses used for propagating, growing, or
10 overwintering plants shall be considered farm machinery and
11 equipment under this item (11). Agricultural chemical tender
12 tanks and dry boxes shall include units sold separately from
13 a motor vehicle required to be licensed and units sold
14 mounted on a motor vehicle required to be licensed if the
15 selling price of the tender is separately stated.
16 Farm machinery and equipment shall include precision
17 farming equipment that is installed or purchased to be
18 installed on farm machinery and equipment including, but not
19 limited to, tractors, harvesters, sprayers, planters,
20 seeders, or spreaders. Precision farming equipment includes,
21 but is not limited to, soil testing sensors, computers,
22 monitors, software, global positioning and mapping systems,
23 and other such equipment.
24 Farm machinery and equipment also includes computers,
25 sensors, software, and related equipment used primarily in
26 the computer-assisted operation of production agriculture
27 facilities, equipment, and activities such as, but not
28 limited to, the collection, monitoring, and correlation of
29 animal and crop data for the purpose of formulating animal
30 diets and agricultural chemicals. This item (11) is exempt
31 from the provisions of Section 3-90.
32 (12) Fuel and petroleum products sold to or used by an
33 air common carrier, certified by the carrier to be used for
34 consumption, shipment, or storage in the conduct of its
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1 business as an air common carrier, for a flight destined for
2 or returning from a location or locations outside the United
3 States without regard to previous or subsequent domestic
4 stopovers.
5 (13) Proceeds of mandatory service charges separately
6 stated on customers' bills for the purchase and consumption
7 of food and beverages purchased at retail from a retailer, to
8 the extent that the proceeds of the service charge are in
9 fact turned over as tips or as a substitute for tips to the
10 employees who participate directly in preparing, serving,
11 hosting or cleaning up the food or beverage function with
12 respect to which the service charge is imposed.
13 (14) Oil field exploration, drilling, and production
14 equipment, including (i) rigs and parts of rigs, rotary rigs,
15 cable tool rigs, and workover rigs, (ii) pipe and tubular
16 goods, including casing and drill strings, (iii) pumps and
17 pump-jack units, (iv) storage tanks and flow lines, (v) any
18 individual replacement part for oil field exploration,
19 drilling, and production equipment, and (vi) machinery and
20 equipment purchased for lease; but excluding motor vehicles
21 required to be registered under the Illinois Vehicle Code.
22 (15) Photoprocessing machinery and equipment, including
23 repair and replacement parts, both new and used, including
24 that manufactured on special order, certified by the
25 purchaser to be used primarily for photoprocessing, and
26 including photoprocessing machinery and equipment purchased
27 for lease.
28 (16) Coal exploration, mining, offhighway hauling,
29 processing, maintenance, and reclamation equipment, including
30 replacement parts and equipment, and including equipment
31 purchased for lease, but excluding motor vehicles required to
32 be registered under the Illinois Vehicle Code.
33 (17) Distillation machinery and equipment, sold as a
34 unit or kit, assembled or installed by the retailer,
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1 certified by the user to be used only for the production of
2 ethyl alcohol that will be used for consumption as motor fuel
3 or as a component of motor fuel for the personal use of the
4 user, and not subject to sale or resale.
5 (18) Manufacturing and assembling machinery and
6 equipment used primarily in the process of manufacturing or
7 assembling tangible personal property for wholesale or retail
8 sale or lease, whether that sale or lease is made directly by
9 the manufacturer or by some other person, whether the
10 materials used in the process are owned by the manufacturer
11 or some other person, or whether that sale or lease is made
12 apart from or as an incident to the seller's engaging in the
13 service occupation of producing machines, tools, dies, jigs,
14 patterns, gauges, or other similar items of no commercial
15 value on special order for a particular purchaser.
16 (19) Personal property delivered to a purchaser or
17 purchaser's donee inside Illinois when the purchase order for
18 that personal property was received by a florist located
19 outside Illinois who has a florist located inside Illinois
20 deliver the personal property.
21 (20) Semen used for artificial insemination of livestock
22 for direct agricultural production.
23 (21) Horses, or interests in horses, registered with and
24 meeting the requirements of any of the Arabian Horse Club
25 Registry of America, Appaloosa Horse Club, American Quarter
26 Horse Association, United States Trotting Association, or
27 Jockey Club, as appropriate, used for purposes of breeding or
28 racing for prizes.
29 (22) Computers and communications equipment utilized for
30 any hospital purpose and equipment used in the diagnosis,
31 analysis, or treatment of hospital patients purchased by a
32 lessor who leases the equipment, under a lease of one year or
33 longer executed or in effect at the time the lessor would
34 otherwise be subject to the tax imposed by this Act, to a
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1 hospital that has been issued an active tax exemption
2 identification number by the Department under Section 1g of
3 the Retailers' Occupation Tax Act. If the equipment is
4 leased in a manner that does not qualify for this exemption
5 or is used in any other non-exempt manner, the lessor shall
6 be liable for the tax imposed under this Act or the Service
7 Use Tax Act, as the case may be, based on the fair market
8 value of the property at the time the non-qualifying use
9 occurs. No lessor shall collect or attempt to collect an
10 amount (however designated) that purports to reimburse that
11 lessor for the tax imposed by this Act or the Service Use Tax
12 Act, as the case may be, if the tax has not been paid by the
13 lessor. If a lessor improperly collects any such amount from
14 the lessee, the lessee shall have a legal right to claim a
15 refund of that amount from the lessor. If, however, that
16 amount is not refunded to the lessee for any reason, the
17 lessor is liable to pay that amount to the Department.
18 (23) Personal property purchased by a lessor who leases
19 the property, under a lease of one year or longer executed
20 or in effect at the time the lessor would otherwise be
21 subject to the tax imposed by this Act, to a governmental
22 body that has been issued an active sales tax exemption
23 identification number by the Department under Section 1g of
24 the Retailers' Occupation Tax Act. If the property is leased
25 in a manner that does not qualify for this exemption or used
26 in any other non-exempt manner, the lessor shall be liable
27 for the tax imposed under this Act or the Service Use Tax
28 Act, as the case may be, based on the fair market value of
29 the property at the time the non-qualifying use occurs. No
30 lessor shall collect or attempt to collect an amount (however
31 designated) that purports to reimburse that lessor for the
32 tax imposed by this Act or the Service Use Tax Act, as the
33 case may be, if the tax has not been paid by the lessor. If
34 a lessor improperly collects any such amount from the lessee,
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1 the lessee shall have a legal right to claim a refund of that
2 amount from the lessor. If, however, that amount is not
3 refunded to the lessee for any reason, the lessor is liable
4 to pay that amount to the Department.
5 (24) Beginning with taxable years ending on or after
6 December 31, 1995 and ending with taxable years ending on or
7 before December 31, 2004, personal property that is donated
8 for disaster relief to be used in a State or federally
9 declared disaster area in Illinois or bordering Illinois by a
10 manufacturer or retailer that is registered in this State to
11 a corporation, society, association, foundation, or
12 institution that has been issued a sales tax exemption
13 identification number by the Department that assists victims
14 of the disaster who reside within the declared disaster area.
15 (25) Beginning with taxable years ending on or after
16 December 31, 1995 and ending with taxable years ending on or
17 before December 31, 2004, personal property that is used in
18 the performance of infrastructure repairs in this State,
19 including but not limited to municipal roads and streets,
20 access roads, bridges, sidewalks, waste disposal systems,
21 water and sewer line extensions, water distribution and
22 purification facilities, storm water drainage and retention
23 facilities, and sewage treatment facilities, resulting from a
24 State or federally declared disaster in Illinois or bordering
25 Illinois when such repairs are initiated on facilities
26 located in the declared disaster area within 6 months after
27 the disaster.
28 (26) Beginning July 1, 1999, game or game birds
29 purchased at a "game breeding and hunting preserve area" or
30 an "exotic game hunting area" as those terms are used in the
31 Wildlife Code or at a hunting enclosure approved through
32 rules adopted by the Department of Natural Resources. This
33 paragraph is exempt from the provisions of Section 3-90.
34 (27) (26) A motor vehicle, as that term is defined in
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1 Section 1-146 of the Illinois Vehicle Code, that is donated
2 to a corporation, limited liability company, society,
3 association, foundation, or institution that is determined by
4 the Department to be organized and operated exclusively for
5 educational purposes. For purposes of this exemption, "a
6 corporation, limited liability company, society, association,
7 foundation, or institution organized and operated exclusively
8 for educational purposes" means all tax-supported public
9 schools, private schools that offer systematic instruction in
10 useful branches of learning by methods common to public
11 schools and that compare favorably in their scope and
12 intensity with the course of study presented in tax-supported
13 schools, and vocational or technical schools or institutes
14 organized and operated exclusively to provide a course of
15 study of not less than 6 weeks duration and designed to
16 prepare individuals to follow a trade or to pursue a manual,
17 technical, mechanical, industrial, business, or commercial
18 occupation.
19 (28) (27) Beginning January 1, 2000, personal property,
20 including food, purchased through fundraising events for the
21 benefit of a public or private elementary or secondary
22 school, a group of those schools, or one or more school
23 districts if the events are sponsored by an entity recognized
24 by the school district that consists primarily of volunteers
25 and includes parents and teachers of the school children.
26 This paragraph does not apply to fundraising events (i) for
27 the benefit of private home instruction or (ii) for which the
28 fundraising entity purchases the personal property sold at
29 the events from another individual or entity that sold the
30 property for the purpose of resale by the fundraising entity
31 and that profits from the sale to the fundraising entity.
32 This paragraph is exempt from the provisions of Section 3-90.
33 (29) (26) Beginning January 1, 2000, new or used
34 automatic vending machines that prepare and serve hot food
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1 and beverages, including coffee, soup, and other items, and
2 replacement parts for these machines. This paragraph is
3 exempt from the provisions of Section 3-90.
4 (30) Food for human consumption that is to be consumed
5 off the premises where it is sold (other than alcoholic
6 beverages, soft drinks, and food that has been prepared for
7 immediate consumption) and prescription and nonprescription
8 medicines, drugs, medical appliances, and insulin, urine
9 testing materials, syringes, and needles used by diabetics,
10 for human use, when purchased for use by a person receiving
11 medical assistance under Article 5 of the Illinois Public Aid
12 Code who resides in a licensed long-term care facility, as
13 defined in the Nursing Home Care Act.
14 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
15 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
16 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
17 eff. 8-20-99; revised 9-29-99.)
18 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
19 Sec. 9. Except as to motor vehicles, watercraft,
20 aircraft, and trailers that are required to be registered
21 with an agency of this State, each retailer required or
22 authorized to collect the tax imposed by this Act shall pay
23 to the Department the amount of such tax (except as otherwise
24 provided) at the time when he is required to file his return
25 for the period during which such tax was collected, less a
26 discount of 2.1% prior to January 1, 1990, and 1.75% on and
27 after January 1, 1990, or $5 per calendar year, whichever is
28 greater, which is allowed to reimburse the retailer for
29 expenses incurred in collecting the tax, keeping records,
30 preparing and filing returns, remitting the tax and supplying
31 data to the Department on request. In the case of retailers
32 who report and pay the tax on a transaction by transaction
33 basis, as provided in this Section, such discount shall be
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1 taken with each such tax remittance instead of when such
2 retailer files his periodic return. A retailer need not
3 remit that part of any tax collected by him to the extent
4 that he is required to remit and does remit the tax imposed
5 by the Retailers' Occupation Tax Act, with respect to the
6 sale of the same property.
7 Where such tangible personal property is sold under a
8 conditional sales contract, or under any other form of sale
9 wherein the payment of the principal sum, or a part thereof,
10 is extended beyond the close of the period for which the
11 return is filed, the retailer, in collecting the tax (except
12 as to motor vehicles, watercraft, aircraft, and trailers that
13 are required to be registered with an agency of this State),
14 may collect for each tax return period, only the tax
15 applicable to that part of the selling price actually
16 received during such tax return period.
17 Except as provided in this Section, on or before the
18 twentieth day of each calendar month, such retailer shall
19 file a return for the preceding calendar month. Such return
20 shall be filed on forms prescribed by the Department and
21 shall furnish such information as the Department may
22 reasonably require.
23 The Department may require returns to be filed on a
24 quarterly basis. If so required, a return for each calendar
25 quarter shall be filed on or before the twentieth day of the
26 calendar month following the end of such calendar quarter.
27 The taxpayer shall also file a return with the Department for
28 each of the first two months of each calendar quarter, on or
29 before the twentieth day of the following calendar month,
30 stating:
31 1. The name of the seller;
32 2. The address of the principal place of business
33 from which he engages in the business of selling tangible
34 personal property at retail in this State;
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1 3. The total amount of taxable receipts received by
2 him during the preceding calendar month from sales of
3 tangible personal property by him during such preceding
4 calendar month, including receipts from charge and time
5 sales, but less all deductions allowed by law;
6 4. The amount of credit provided in Section 2d of
7 this Act;
8 5. The amount of tax due;
9 5-5. The signature of the taxpayer; and
10 6. Such other reasonable information as the
11 Department may require.
12 If a taxpayer fails to sign a return within 30 days after
13 the proper notice and demand for signature by the Department,
14 the return shall be considered valid and any amount shown to
15 be due on the return shall be deemed assessed.
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 has
20 an average monthly tax liability of $100,000 or more shall
21 make all payments required by rules of the Department by
22 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 1,
26 2000, a taxpayer who has an annual tax liability of $200,000
27 or more shall make all payments required by rules of the
28 Department by electronic funds transfer. The term "annual
29 tax liability" shall be the sum of the taxpayer's liabilities
30 under this Act, and under all other State and local
31 occupation and use tax laws administered by the Department,
32 for the immediately preceding calendar year. The term
33 "average monthly tax liability" means 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 required
7 to make payments by electronic funds transfer shall make
8 those payments for a minimum of one year beginning on October
9 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 Before October 1, 2000, if the taxpayer's average monthly
21 tax liability to the Department under this Act, the
22 Retailers' Occupation Tax Act, the Service Occupation Tax
23 Act, the Service Use Tax Act was $10,000 or more during the
24 preceding 4 complete calendar quarters, he shall file a
25 return with the Department each month by the 20th day of the
26 month next following the month during which such tax
27 liability is incurred and shall make payments to the
28 Department on or before the 7th, 15th, 22nd and last day of
29 the month during which such liability is incurred. On and
30 after October 1, 2000, if the taxpayer's average monthly tax
31 liability to the Department under this Act, the Retailers'
32 Occupation Tax Act, the Service Occupation Tax Act, and the
33 Service Use Tax Act was $20,000 or more during the preceding
34 4 complete calendar quarters, he shall file a return with the
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1 Department each month by the 20th day of the month next
2 following the month during which such tax liability is
3 incurred and shall make payment to the Department on or
4 before the 7th, 15th, 22nd and last day of or the month
5 during which such liability is incurred. If the month during
6 which such tax liability is incurred began prior to January
7 1, 1985, each payment shall be in an amount equal to 1/4 of
8 the taxpayer's actual liability for the month or an amount
9 set by the Department not to exceed 1/4 of the average
10 monthly liability of the taxpayer to the Department for the
11 preceding 4 complete calendar quarters (excluding the month
12 of highest liability and the month of lowest liability in
13 such 4 quarter period). If the month during which such tax
14 liability is incurred begins on or after January 1, 1985, and
15 prior to January 1, 1987, each payment shall be in an amount
16 equal to 22.5% of the taxpayer's actual liability for the
17 month or 27.5% of the taxpayer's liability for the same
18 calendar month of the preceding year. If the month during
19 which such tax liability is incurred begins on or after
20 January 1, 1987, and prior to January 1, 1988, each payment
21 shall be in an amount equal to 22.5% of the taxpayer's actual
22 liability for the month or 26.25% of the taxpayer's liability
23 for the same calendar month of the preceding year. If the
24 month during which such tax liability is incurred begins on
25 or after January 1, 1988, and prior to January 1, 1989, or
26 begins on or after January 1, 1996, each payment shall be in
27 an amount equal to 22.5% of the taxpayer's actual liability
28 for the month or 25% of the taxpayer's liability for the same
29 calendar month of the preceding year. If the month during
30 which such tax liability is incurred begins on or after
31 January 1, 1989, and prior to January 1, 1996, each payment
32 shall be in an amount equal to 22.5% of the taxpayer's actual
33 liability for the month or 25% of the taxpayer's liability
34 for the same calendar month of the preceding year or 100% of
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1 the taxpayer's actual liability for the quarter monthly
2 reporting period. The amount of such quarter monthly
3 payments shall be credited against the final tax liability of
4 the taxpayer's return for that month. Before October 1,
5 2000, once applicable, the requirement of the making of
6 quarter monthly payments to the Department shall continue
7 until such taxpayer's average monthly liability to the
8 Department during the preceding 4 complete calendar quarters
9 (excluding the month of highest liability and the month of
10 lowest liability) is less than $9,000, or until such
11 taxpayer's average monthly liability to the Department as
12 computed for each calendar quarter of the 4 preceding
13 complete calendar quarter period is less than $10,000.
14 However, if a taxpayer can show the Department that a
15 substantial change in the taxpayer's business has occurred
16 which causes the taxpayer to anticipate that his average
17 monthly tax liability for the reasonably foreseeable future
18 will fall below the $10,000 threshold stated above, then such
19 taxpayer may petition the Department for change in such
20 taxpayer's reporting status. On and after October 1, 2000,
21 once applicable, the requirement of the making of quarter
22 monthly payments to the Department shall continue until such
23 taxpayer's average monthly liability to the Department during
24 the preceding 4 complete calendar quarters (excluding the
25 month of highest liability and the month of lowest liability)
26 is less than $19,000 or until such taxpayer's average monthly
27 liability to the Department as computed for each calendar
28 quarter of the 4 preceding complete calendar quarter period
29 is less than $20,000. However, if a taxpayer can show the
30 Department that a substantial change in the taxpayer's
31 business has occurred which causes the taxpayer to anticipate
32 that his average monthly tax liability for the reasonably
33 foreseeable future will fall below the $20,000 threshold
34 stated above, then such taxpayer may petition the Department
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1 for a change in such taxpayer's reporting status. The
2 Department shall change such taxpayer's reporting status
3 unless it finds that such change is seasonal in nature and
4 not likely to be long term. If any such quarter monthly
5 payment is not paid at the time or in the amount required by
6 this Section, then the taxpayer shall be liable for penalties
7 and interest on the difference between the minimum amount due
8 and the amount of such quarter monthly payment actually and
9 timely paid, except insofar as the taxpayer has previously
10 made payments for that month to the Department in excess of
11 the minimum payments previously due as provided in this
12 Section. The Department shall make reasonable rules and
13 regulations to govern the quarter monthly payment amount and
14 quarter monthly payment dates for taxpayers who file on other
15 than a calendar monthly basis.
16 If any such payment provided for in this Section exceeds
17 the taxpayer's liabilities under this Act, the Retailers'
18 Occupation Tax Act, the Service Occupation Tax Act and the
19 Service Use Tax Act, as shown by an original monthly return,
20 the Department shall issue to the taxpayer a credit
21 memorandum no later than 30 days after the date of payment,
22 which memorandum may be submitted by the taxpayer to the
23 Department in payment of tax liability subsequently to be
24 remitted by the taxpayer to the Department or be assigned by
25 the taxpayer to a similar taxpayer under this Act, the
26 Retailers' Occupation Tax Act, the Service Occupation Tax Act
27 or the Service Use Tax Act, in accordance with reasonable
28 rules and regulations to be prescribed by the Department,
29 except that if such excess payment is shown on an original
30 monthly return and is made after December 31, 1986, no credit
31 memorandum shall be issued, unless requested by the taxpayer.
32 If no such request is made, the taxpayer may credit such
33 excess payment against tax liability subsequently to be
34 remitted by the taxpayer to the Department under this Act,
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1 the Retailers' Occupation Tax Act, the Service Occupation Tax
2 Act or the Service Use Tax Act, in accordance with reasonable
3 rules and regulations prescribed by the Department. If the
4 Department subsequently determines that all or any part of
5 the credit taken was not actually due to the taxpayer, the
6 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
7 by 2.1% or 1.75% of the difference between the credit taken
8 and that actually due, and the taxpayer shall be liable for
9 penalties and interest on such difference.
10 If the retailer is otherwise required to file a monthly
11 return and if the retailer's average monthly tax liability to
12 the Department does not exceed $200, the Department may
13 authorize his returns to be filed on a quarter annual basis,
14 with the return for January, February, and March of a given
15 year being due by April 20 of such year; with the return for
16 April, May and June of a given year being due by July 20 of
17 such year; with the return for July, August and September of
18 a given year being due by October 20 of such year, and with
19 the return for October, November and December of a given year
20 being due by January 20 of the following year.
21 If the retailer is otherwise required to file a monthly
22 or quarterly return and if the retailer's average monthly tax
23 liability to the Department does not exceed $50, the
24 Department may authorize his returns to be filed on an annual
25 basis, with the return for a given year being due by January
26 20 of the following year.
27 Such quarter annual and annual returns, as to form and
28 substance, shall be subject to the same requirements as
29 monthly returns.
30 Notwithstanding any other provision in this Act
31 concerning the time within which a retailer may file his
32 return, in the case of any retailer who ceases to engage in a
33 kind of business which makes him responsible for filing
34 returns under this Act, such retailer shall file a final
SB1453 Enrolled -18- LRB9111084SMdv
1 return under this Act with the Department not more than one
2 month after discontinuing such business.
3 In addition, with respect to motor vehicles, watercraft,
4 aircraft, and trailers that are required to be registered
5 with an agency of this State, every retailer selling this
6 kind of tangible personal property shall file, with the
7 Department, upon a form to be prescribed and supplied by the
8 Department, a separate return for each such item of tangible
9 personal property which the retailer sells, except that if
10 where, in the same transaction, (i) a retailer of aircraft,
11 watercraft, motor vehicles or trailers transfers more than
12 one aircraft, watercraft, motor vehicle or trailer to another
13 aircraft, watercraft, motor vehicle or trailer retailer for
14 the purpose of resale or (ii) a retailer of aircraft,
15 watercraft, motor vehicles, or trailers transfers more than
16 one aircraft, watercraft, motor vehicle, or trailer to a
17 purchaser for use as a qualifying rolling stock as provided
18 in Section 3-55 of this Act, then that seller for resale may
19 report the transfer of all the aircraft, watercraft, motor
20 vehicles or trailers involved in that transaction to the
21 Department on the same uniform invoice-transaction reporting
22 return form. For purposes of this Section, "watercraft"
23 means a Class 2, Class 3, or Class 4 watercraft as defined in
24 Section 3-2 of the Boat Registration and Safety Act, a
25 personal watercraft, or any boat equipped with an inboard
26 motor.
27 The transaction reporting return in the case of motor
28 vehicles or trailers that are required to be registered with
29 an agency of this State, shall be the same document as the
30 Uniform Invoice referred to in Section 5-402 of the Illinois
31 Vehicle Code and must show the name and address of the
32 seller; the name and address of the purchaser; the amount of
33 the selling price including the amount allowed by the
34 retailer for traded-in property, if any; the amount allowed
SB1453 Enrolled -19- LRB9111084SMdv
1 by the retailer for the traded-in tangible personal property,
2 if any, to the extent to which Section 2 of this Act allows
3 an exemption for the value of traded-in property; the balance
4 payable after deducting such trade-in allowance from the
5 total selling price; the amount of tax due from the retailer
6 with respect to such transaction; the amount of tax collected
7 from the purchaser by the retailer on such transaction (or
8 satisfactory evidence that such tax is not due in that
9 particular instance, if that is claimed to be the fact); the
10 place and date of the sale; a sufficient identification of
11 the property sold; such other information as is required in
12 Section 5-402 of the Illinois Vehicle Code, and such other
13 information as the Department may reasonably require.
14 The transaction reporting return in the case of
15 watercraft and aircraft must show the name and address of the
16 seller; the name and address of the purchaser; the amount of
17 the selling price including the amount allowed by the
18 retailer for traded-in property, if any; the amount allowed
19 by the retailer for the traded-in tangible personal property,
20 if any, to the extent to which Section 2 of this Act allows
21 an exemption for the value of traded-in property; the balance
22 payable after deducting such trade-in allowance from the
23 total selling price; the amount of tax due from the retailer
24 with respect to such transaction; the amount of tax collected
25 from the purchaser by the retailer on such transaction (or
26 satisfactory evidence that such tax is not due in that
27 particular instance, if that is claimed to be the fact); the
28 place and date of the sale, a sufficient identification of
29 the property sold, and such other information as the
30 Department may reasonably require.
31 Such transaction reporting return shall be filed not
32 later than 20 days after the date of delivery of the item
33 that is being sold, but may be filed by the retailer at any
34 time sooner than that if he chooses to do so. The
SB1453 Enrolled -20- LRB9111084SMdv
1 transaction reporting return and tax remittance or proof of
2 exemption from the tax that is imposed by this Act may be
3 transmitted to the Department by way of the State agency with
4 which, or State officer with whom, the tangible personal
5 property must be titled or registered (if titling or
6 registration is required) if the Department and such agency
7 or State officer determine that this procedure will expedite
8 the processing of applications for title or registration.
9 With each such transaction reporting return, the retailer
10 shall remit the proper amount of tax due (or shall submit
11 satisfactory evidence that the sale is not taxable if that is
12 the case), to the Department or its agents, whereupon the
13 Department shall issue, in the purchaser's name, a tax
14 receipt (or a certificate of exemption if the Department is
15 satisfied that the particular sale is tax exempt) which such
16 purchaser may submit to the agency with which, or State
17 officer with whom, he must title or register the tangible
18 personal property that is involved (if titling or
19 registration is required) in support of such purchaser's
20 application for an Illinois certificate or other evidence of
21 title or registration to such tangible personal property.
22 No retailer's failure or refusal to remit tax under this
23 Act precludes a user, who has paid the proper tax to the
24 retailer, from obtaining his certificate of title or other
25 evidence of title or registration (if titling or registration
26 is required) upon satisfying the Department that such user
27 has paid the proper tax (if tax is due) to the retailer. The
28 Department shall adopt appropriate rules to carry out the
29 mandate of this paragraph.
30 If the user who would otherwise pay tax to the retailer
31 wants the transaction reporting return filed and the payment
32 of tax or proof of exemption made to the Department before
33 the retailer is willing to take these actions and such user
34 has not paid the tax to the retailer, such user may certify
SB1453 Enrolled -21- LRB9111084SMdv
1 to the fact of such delay by the retailer, and may (upon the
2 Department being satisfied of the truth of such
3 certification) transmit the information required by the
4 transaction reporting return and the remittance for tax or
5 proof of exemption directly to the Department and obtain his
6 tax receipt or exemption determination, in which event the
7 transaction reporting return and tax remittance (if a tax
8 payment was required) shall be credited by the Department to
9 the proper retailer's account with the Department, but
10 without the 2.1% or 1.75% discount provided for in this
11 Section being allowed. When the user pays the tax directly
12 to the Department, he shall pay the tax in the same amount
13 and in the same form in which it would be remitted if the tax
14 had been remitted to the Department by the retailer.
15 Where a retailer collects the tax with respect to the
16 selling price of tangible personal property which he sells
17 and the purchaser thereafter returns such tangible personal
18 property and the retailer refunds the selling price thereof
19 to the purchaser, such retailer shall also refund, to the
20 purchaser, the tax so collected from the purchaser. When
21 filing his return for the period in which he refunds such tax
22 to the purchaser, the retailer may deduct the amount of the
23 tax so refunded by him to the purchaser from any other use
24 tax which such retailer may be required to pay or remit to
25 the Department, as shown by such return, if the amount of the
26 tax to be deducted was previously remitted to the Department
27 by such retailer. If the retailer has not previously
28 remitted the amount of such tax to the Department, he is
29 entitled to no deduction under this Act upon refunding such
30 tax to the purchaser.
31 Any retailer filing a return under this Section shall
32 also include (for the purpose of paying tax thereon) the
33 total tax covered by such return upon the selling price of
34 tangible personal property purchased by him at retail from a
SB1453 Enrolled -22- LRB9111084SMdv
1 retailer, but as to which the tax imposed by this Act was not
2 collected from the retailer filing such return, and such
3 retailer shall remit the amount of such tax to the Department
4 when filing such return.
5 If experience indicates such action to be practicable,
6 the Department may prescribe and furnish a combination or
7 joint return which will enable retailers, who are required to
8 file returns hereunder and also under the Retailers'
9 Occupation Tax Act, to furnish all the return information
10 required by both Acts on the one form.
11 Where the retailer has more than one business registered
12 with the Department under separate registration under this
13 Act, such retailer may not file each return that is due as a
14 single return covering all such registered businesses, but
15 shall file separate returns for each such registered
16 business.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the State and Local Sales Tax Reform Fund, a
19 special fund in the State Treasury which is hereby created,
20 the net revenue realized for the preceding month from the 1%
21 tax on sales of food for human consumption which is to be
22 consumed off the premises where it is sold (other than
23 alcoholic beverages, soft drinks and food which has been
24 prepared for immediate consumption) and prescription and
25 nonprescription medicines, drugs, medical appliances and
26 insulin, urine testing materials, syringes and needles used
27 by diabetics.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the County and Mass Transit District Fund 4%
30 of the net revenue realized for the preceding month from the
31 6.25% general rate on the selling price of tangible personal
32 property which is purchased outside Illinois at retail from a
33 retailer and which is titled or registered by an agency of
34 this State's government.
SB1453 Enrolled -23- LRB9111084SMdv
1 Beginning January 1, 1990, each month the Department
2 shall pay into the State and Local Sales Tax Reform Fund, a
3 special fund in the State Treasury, 20% of the net revenue
4 realized for the preceding month from the 6.25% general rate
5 on the selling price of tangible personal property, other
6 than tangible personal property which is purchased outside
7 Illinois at retail from a retailer and which is titled or
8 registered by an agency of this State's government.
9 Beginning January 1, 1990, each month the Department
10 shall pay into the Local Government Tax Fund 16% 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 which is purchased outside Illinois at retail from a
14 retailer and which is titled or registered by an agency of
15 this State's government.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, (a) 1.75% thereof shall be paid into
18 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
19 and on and after July 1, 1989, 3.8% thereof shall be paid
20 into the Build Illinois Fund; provided, however, that if in
21 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
22 as the case may be, of the moneys received by the Department
23 and required to be paid into the Build Illinois Fund pursuant
24 to Section 3 of the Retailers' Occupation Tax Act, Section 9
25 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
26 Section 9 of the Service Occupation Tax Act, such Acts being
27 hereinafter called the "Tax Acts" and such aggregate of 2.2%
28 or 3.8%, as the case may be, of moneys being hereinafter
29 called the "Tax Act Amount", and (2) the amount transferred
30 to the Build Illinois Fund from the State and Local Sales Tax
31 Reform Fund shall be less than the Annual Specified Amount
32 (as defined in Section 3 of the Retailers' Occupation Tax
33 Act), an amount equal to the difference shall be immediately
34 paid into the Build Illinois Fund from other moneys received
SB1453 Enrolled -24- LRB9111084SMdv
1 by the Department pursuant to the Tax Acts; and further
2 provided, that if on the last business day of any month the
3 sum of (1) the Tax Act Amount required to be deposited into
4 the Build Illinois Bond Account in the Build Illinois Fund
5 during such month and (2) the amount transferred during such
6 month to the Build Illinois Fund from the State and Local
7 Sales Tax Reform Fund shall have been less than 1/12 of the
8 Annual Specified Amount, an amount equal to the difference
9 shall be immediately paid into the Build Illinois Fund from
10 other moneys received by the Department pursuant to the Tax
11 Acts; and, further provided, that in no event shall the
12 payments required under the preceding proviso result in
13 aggregate payments into the Build Illinois Fund pursuant to
14 this clause (b) for any fiscal year in excess of the greater
15 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
16 for such fiscal year; and, further provided, that the amounts
17 payable into the Build Illinois Fund under this clause (b)
18 shall be payable only until such time as the aggregate amount
19 on deposit under each trust indenture securing Bonds issued
20 and outstanding pursuant to the Build Illinois Bond Act is
21 sufficient, taking into account any future investment income,
22 to fully provide, in accordance with such indenture, for the
23 defeasance of or the payment of the principal of, premium, if
24 any, and interest on the Bonds secured by such indenture and
25 on any Bonds expected to be issued thereafter and all fees
26 and costs payable with respect thereto, all as certified by
27 the Director of the Bureau of the Budget. If on the last
28 business day of any month in which Bonds are outstanding
29 pursuant to the Build Illinois Bond Act, the aggregate of the
30 moneys deposited in the Build Illinois Bond Account in the
31 Build Illinois Fund in such month shall be less than the
32 amount required to be transferred in such month from the
33 Build Illinois Bond Account to the Build Illinois Bond
34 Retirement and Interest Fund pursuant to Section 13 of the
SB1453 Enrolled -25- LRB9111084SMdv
1 Build Illinois Bond Act, an amount equal to such deficiency
2 shall be immediately paid from other moneys received by the
3 Department pursuant to the Tax Acts to the Build Illinois
4 Fund; provided, however, that any amounts paid to the Build
5 Illinois Fund in any fiscal year pursuant to this sentence
6 shall be deemed to constitute payments pursuant to clause (b)
7 of the preceding sentence and shall reduce the amount
8 otherwise payable for such fiscal year pursuant to clause (b)
9 of the preceding sentence. The moneys received by the
10 Department pursuant to this Act and required to be deposited
11 into the Build Illinois Fund are subject to the pledge, claim
12 and charge set forth in Section 12 of the Build Illinois Bond
13 Act.
14 Subject to payment of amounts into the Build Illinois
15 Fund as provided in the preceding paragraph or in any
16 amendment thereto hereafter enacted, the following specified
17 monthly installment of the amount requested in the
18 certificate of the Chairman of the Metropolitan Pier and
19 Exposition Authority provided under Section 8.25f of the
20 State Finance Act, but not in excess of the sums designated
21 as "Total Deposit", shall be deposited in the aggregate from
22 collections under Section 9 of the Use Tax Act, Section 9 of
23 the Service Use Tax Act, Section 9 of the Service Occupation
24 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
25 into the McCormick Place Expansion Project Fund in the
26 specified fiscal years.
27 Fiscal Year Total Deposit
28 1993 $0
29 1994 53,000,000
30 1995 58,000,000
31 1996 61,000,000
32 1997 64,000,000
33 1998 68,000,000
34 1999 71,000,000
SB1453 Enrolled -26- LRB9111084SMdv
1 2000 75,000,000
2 2001 80,000,000
3 2002 84,000,000
4 2003 89,000,000
5 2004 93,000,000
6 2005 97,000,000
7 2006 102,000,000
8 2007 108,000,000
9 2008 115,000,000
10 2009 120,000,000
11 2010 126,000,000
12 2011 132,000,000
13 2012 138,000,000
14 2013 and 145,000,000
15 each fiscal year
16 thereafter that bonds
17 are outstanding under
18 Section 13.2 of the
19 Metropolitan Pier and
20 Exposition Authority
21 Act, but not after fiscal year 2029.
22 Beginning July 20, 1993 and in each month of each fiscal
23 year thereafter, one-eighth of the amount requested in the
24 certificate of the Chairman of the Metropolitan Pier and
25 Exposition Authority for that fiscal year, less the amount
26 deposited into the McCormick Place Expansion Project Fund by
27 the State Treasurer in the respective month under subsection
28 (g) of Section 13 of the Metropolitan Pier and Exposition
29 Authority Act, plus cumulative deficiencies in the deposits
30 required under this Section for previous months and years,
31 shall be deposited into the McCormick Place Expansion Project
32 Fund, until the full amount requested for the fiscal year,
33 but not in excess of the amount specified above as "Total
34 Deposit", has been deposited.
SB1453 Enrolled -27- LRB9111084SMdv
1 Subject to payment of amounts into the Build Illinois
2 Fund and the McCormick Place Expansion Project Fund pursuant
3 to the preceding paragraphs or in any amendment thereto
4 hereafter enacted, each month the Department shall pay into
5 the Local Government Distributive Fund .4% of the net revenue
6 realized for the preceding month from the 5% general rate, or
7 .4% of 80% of the net revenue realized for the preceding
8 month from the 6.25% general rate, as the case may be, on the
9 selling price of tangible personal property which amount
10 shall, subject to appropriation, be distributed as provided
11 in Section 2 of the State Revenue Sharing Act. No payments or
12 distributions pursuant to this paragraph shall be made if the
13 tax imposed by this Act on photoprocessing products is
14 declared unconstitutional, or if the proceeds from such tax
15 are unavailable for distribution because of litigation.
16 Subject to payment of amounts into the Build Illinois
17 Fund, the McCormick Place Expansion Project Fund, and the
18 Local Government Distributive Fund pursuant to the preceding
19 paragraphs or in any amendments thereto hereafter enacted,
20 beginning July 1, 1993, the Department shall each month pay
21 into the Illinois Tax Increment Fund 0.27% of 80% of the net
22 revenue realized for the preceding month from the 6.25%
23 general rate on the selling price of tangible personal
24 property.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, 75% thereof shall be paid into the
27 State Treasury and 25% shall be reserved in a special account
28 and used only for the transfer to the Common School Fund as
29 part of the monthly transfer from the General Revenue Fund in
30 accordance with Section 8a of the State Finance Act.
31 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
SB1453 Enrolled -28- LRB9111084SMdv
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 Beginning April 1, 2000, this transfer is no longer required
4 and shall not be made.
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, manufacturers,
10 importers and wholesalers whose products are sold at retail
11 in Illinois by numerous retailers, and who wish to do so, may
12 assume the responsibility for accounting and paying to the
13 Department all tax accruing under this Act with respect to
14 such sales, if the retailers who are affected do not make
15 written objection to the Department to this arrangement.
16 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
17 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
18 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
19 (35 ILCS 105/10) (from Ch. 120, par. 439.10)
20 Sec. 10. Except as to motor vehicles, and aircraft,
21 watercraft, and trailers, when tangible personal property is
22 purchased from a retailer for use in this State by a
23 purchaser who did not pay the tax imposed by this Act to the
24 retailer, and who does not file returns with the Department
25 as a retailer under Section 9 of this Act, such purchaser (by
26 the last day of the month following the calendar month in
27 which such purchaser makes any payment upon the selling price
28 of such property) shall, except as provided in this Section,
29 file a return with the Department and pay the tax upon that
30 portion of the selling price so paid by the purchaser during
31 the preceding calendar month. When tangible personal
32 property, including but not limited to motor vehicles and
33 aircraft, is purchased by a lessor, under a lease for one
SB1453 Enrolled -29- LRB9111084SMdv
1 year or longer, executed or in effect at the time of purchase
2 to an interstate carrier for hire, who did not pay the tax
3 imposed by this Act to the retailer, such lessor (by the last
4 day of the month following the calendar month in which such
5 property reverts to the use of such lessor) shall file a
6 return with the Department and pay the tax upon the fair
7 market value of such property on the date of such reversion.
8 However, in determining the fair market value at the time of
9 reversion, the fair market value of such property shall not
10 exceed the original purchase price of the property that was
11 paid by the lessor at the time of purchase. Such return shall
12 be filed on a form prescribed by the Department and shall
13 contain such information as the Department may reasonably
14 require. Such return and payment from the purchaser shall be
15 submitted to the Department sooner than the last day of the
16 month after the month in which the purchase is made to the
17 extent that that may be necessary in order to secure the
18 title to a motor vehicle or the certificate of registration
19 for an aircraft. However, except as to motor vehicles and
20 aircraft, if the purchaser's annual use tax liability does
21 not exceed $600, the purchaser may file the return on an
22 annual basis on or before April 15th of the year following
23 the year use tax liability was incurred.
24 In addition with respect to motor vehicles, and aircraft,
25 watercraft, and trailers, a purchaser of such tangible
26 personal property for use in this State, who purchases such
27 tangible personal property from an out-of-state retailer,
28 shall file with the Department, upon a form to be prescribed
29 and supplied by the Department, a return for each such item
30 of tangible personal property purchased, except that if, in
31 the same transaction, (i) a purchaser of motor vehicles,
32 aircraft, watercraft, or trailers who is a retailer of motor
33 vehicles, aircraft, watercraft, or trailers purchases more
34 than one motor vehicle, aircraft, watercraft, or trailer for
SB1453 Enrolled -30- LRB9111084SMdv
1 the purpose of resale or (ii) a purchaser of motor vehicles,
2 aircraft, watercraft, or trailers purchases more than one
3 motor vehicle, aircraft, watercraft, or trailer for use as
4 qualifying rolling stock as provided in Section 3-55 of this
5 Act, then the purchaser may report the purchase of all motor
6 vehicles, aircraft, watercraft, or trailers involved in that
7 transaction to the Department on a single return prescribed
8 by the Department. Such return in the case of motor vehicles
9 and aircraft must show the name and address of the seller,
10 the name, address of purchaser, the amount of the selling
11 price including the amount allowed by the retailer for traded
12 in property, if any; the amount allowed by the retailer for
13 the traded-in tangible personal property, if any, to the
14 extent to which Section 2 of this Act allows an exemption for
15 the value of traded-in property; the balance payable after
16 deducting such trade-in allowance from the total selling
17 price; the amount of tax due from the purchaser with respect
18 to such transaction; the amount of tax collected from the
19 purchaser by the retailer on such transaction (or
20 satisfactory evidence that such tax is not due in that
21 particular instance if that is claimed to be the fact); the
22 place and date of the sale, a sufficient identification of
23 the property sold, and such other information as the
24 Department may reasonably require.
25 Such return shall be filed not later than 30 days after
26 such motor vehicle or aircraft is brought into this State for
27 use.
28 For purposes of this Section, "watercraft" means a Class
29 2, Class 3, or Class 4 watercraft as defined in Section 3-2
30 of the Boat Registration and Safety Act, a personal
31 watercraft, or any boat equipped with an inboard motor.
32 The return and tax remittance or proof of exemption from
33 the tax that is imposed by this Act may be transmitted to the
34 Department by way of the State agency with which, or State
SB1453 Enrolled -31- LRB9111084SMdv
1 officer with whom, the tangible personal property must be
2 titled or registered (if titling or registration is required)
3 if the Department and such agency or State officer determine
4 that this procedure will expedite the processing of
5 applications for title or registration.
6 With each such return, the purchaser shall remit the
7 proper amount of tax due (or shall submit satisfactory
8 evidence that the sale is not taxable if that is the case),
9 to the Department or its agents, whereupon the Department
10 shall issue, in the purchaser's name, a tax receipt (or a
11 certificate of exemption if the Department is satisfied that
12 the particular sale is tax exempt) which such purchaser may
13 submit to the agency with which, or State officer with whom,
14 he must title or register the tangible personal property that
15 is involved (if titling or registration is required) in
16 support of such purchaser's application for an Illinois
17 certificate or other evidence of title or registration to
18 such tangible personal property.
19 When a purchaser pays a tax imposed by this Act directly
20 to the Department, the Department (upon request therefor from
21 such purchaser) shall issue an appropriate receipt to such
22 purchaser showing that he has paid such tax to the
23 Department. Such receipt shall be sufficient to relieve the
24 purchaser from further liability for the tax to which such
25 receipt may refer.
26 A user who is liable to pay use tax directly to the
27 Department only occasionally and not on a frequently
28 recurring basis, and who is not required to file returns with
29 the Department as a retailer under Section 9 of this Act, or
30 under the "Retailers' Occupation Tax Act", or as a registrant
31 with the Department under the "Service Occupation Tax Act" or
32 the "Service Use Tax Act", need not register with the
33 Department. However, if such a user has a frequently
34 recurring direct use tax liability to pay to the Department,
SB1453 Enrolled -32- LRB9111084SMdv
1 such user shall be required to register with the Department
2 on forms prescribed by the Department and to obtain and
3 display a certificate of registration from the Department.
4 In that event, all of the provisions of Section 9 of this Act
5 concerning the filing of regular monthly, quarterly or annual
6 tax returns and all of the provisions of Section 2a of the
7 "Retailers' Occupation Tax Act" concerning the requirements
8 for registrants to post bond or other security with the
9 Department, as the provisions of such sections now exist or
10 may hereafter be amended, shall apply to such users to the
11 same extent as if such provisions were included herein.
12 (Source: P.A. 91-541, eff. 8-13-99.)
13 (35 ILCS 105/22) (from Ch. 120, par. 439.22)
14 Sec. 22. If it is determined that the Department should
15 issue a credit or refund under this Act, the Department may
16 first apply the amount thereof against any amount of tax or
17 penalty or interest due hereunder, or under the "Retailers'
18 Occupation Tax Act", the "Service Occupation Tax Act", the
19 "Service Use Tax Act", any local occupation or use tax
20 administered by the Department the "Municipal Retailers'
21 Occupation Tax Act", the "Municipal Use Tax Act", the
22 "Municipal Service Occupation Tax Act", the "County
23 Retailers' Occupation Tax Act", the "County Supplementary
24 Retailers' Occupation Tax Act", the "County Service
25 Occupation Tax Act", the "County Supplementary Service
26 Occupation Tax Act", the "County Use Tax Act", the "County
27 Supplementary Use Tax Act", Section 4 of the "Water
28 Commission Act of 1985", subsections (b), (c) and (d) of
29 Section 5.01 of the "Local Mass Transit District Act", or
30 subsections (e), (f) and (g) of Section 4.03 of the "Regional
31 Transportation Authority Act", from the person entitled to
32 such credit or refund. For this purpose, if proceedings are
33 pending to determine whether or not any tax or penalty or
SB1453 Enrolled -33- LRB9111084SMdv
1 interest is due under this Act or under the "Retailers'
2 Occupation Tax Act", the "Service Occupation Tax Act", the
3 "Service Use Tax Act", any local occupation or use tax
4 administered by the Department the "Municipal Retailers'
5 Occupation Tax Act", the "Municipal Use Tax Act", the
6 "Municipal Service Occupation Tax Act", the "County
7 Retailers' Occupation Tax Act", the "County Supplementary
8 Retailers' Occupation Tax Act", the "County Service
9 Occupation Tax Act", the "County Supplementary Service
10 Occupation Tax Act", the "County Use Tax Act", the "County
11 Supplementary Use Tax Act", Section 4 of the "Water
12 Commission Act of 1985", subsections (b), (c) and (d) of
13 Section 5.01 of the "Local Mass Transit District Act", or
14 subsections (e), (f) and (g) of Section 4.03 of the "Regional
15 Transportation Authority Act", from such person, the
16 Department may withhold issuance of the credit or refund
17 pending the final disposition of such proceedings and may
18 apply such credit or refund against any amount found to be
19 due to the Department as a result of such proceedings. The
20 balance, if any, of the credit or refund shall be issued to
21 the person entitled thereto.
22 Any credit memorandum issued hereunder may be used by the
23 authorized holder thereof to pay any tax or penalty or
24 interest due or to become due under this Act or under the
25 "Retailers' Occupation Tax Act", the "Service Occupation Tax
26 Act", the "Service Use Tax Act", any local occupation or use
27 tax administered by the Department the "Municipal Retailers'
28 Occupation Tax Act", the "Municipal Use Tax Act", the
29 "Municipal Service Occupation Tax Act", the "County
30 Retailers' Occupation Tax Act", the "County Supplementary
31 Retailers' Occupation Tax Act", the "County Service
32 Occupation Tax Act", the "County Supplementary Service
33 Occupation Tax Act", the "County Use Tax Act", the "County
34 Supplementary Use Tax Act", Section 4 of the "Water
SB1453 Enrolled -34- LRB9111084SMdv
1 Commission Act of 1985", subsections (b), (c) and (d) of
2 Section 5.01 of the "Local Mass Transit District Act", or
3 subsections (e), (f) and (g) of Section 4.03 of the "Regional
4 Transportation Authority Act", from such holder. Subject to
5 reasonable rules of the Department, a credit memorandum
6 issued hereunder may be assigned by the holder thereof to any
7 other person for use in paying tax or penalty or interest
8 which may be due or become due under this Act or under the
9 "Retailers' Occupation Tax Act", the "Service Occupation Tax
10 Act" or the "Service Use Tax Act", from the assignee.
11 In any case in which there has been an erroneous refund
12 of tax payable under this Act, a notice of tax liability may
13 be issued at any time within 3 years from the making of that
14 refund, or within 5 years from the making of that refund if
15 it appears that any part of the refund was induced by fraud
16 or the misrepresentation of a material fact. The amount of
17 any proposed assessment set forth in the notice shall be
18 limited to the amount of the erroneous refund.
19 (Source: P.A. 87-876.)
20 Section 15. The Service Use Tax Act is amended by
21 changing Section 20 as follows:
22 (35 ILCS 110/20) (from Ch. 120, par. 439.50)
23 Sec. 20. If it is determined that the Department should
24 issue a credit or refund hereunder, the Department may first
25 apply the amount thereof against any amount of tax or penalty
26 or interest due hereunder, or under the Service Occupation
27 Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act,
28 any local occupation or use tax administered by the
29 Department the Municipal Retailers' Occupation Tax Act, the
30 Municipal Use Tax Act, the Municipal Service Occupation Tax
31 Act, the County Retailers' Occupation Tax Act, the County
32 Supplementary Retailers' Occupation Tax Act, the County
SB1453 Enrolled -35- LRB9111084SMdv
1 Service Occupation Tax Act, the County Supplementary Service
2 Occupation Tax Act, the County Use Tax Act, the County
3 Supplementary Use Tax Act, Section 4 of the Water Commission
4 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
5 the Local Mass Transit District Act, or subsections (e), (f)
6 and (g) of Section 4.03 of the Regional Transportation
7 Authority Act, from the person entitled to such credit or
8 refund. For this purpose, if proceedings are pending to
9 determine whether or not any tax or penalty or interest is
10 due hereunder, or under the Service Occupation Tax Act, the
11 Retailers' Occupation Tax Act, the Use Tax Act, any local
12 occupation or use tax administered by the Department the
13 Municipal Retailers' Occupation Tax Act, the Municipal Use
14 Tax Act, the Municipal Service Occupation Tax Act, the County
15 Retailers' Occupation Tax Act, the County Supplementary
16 Retailers' Occupation Tax Act, the County Service Occupation
17 Tax Act, the County Supplementary Service Occupation Tax Act,
18 the County Use Tax Act, the County Supplementary Use Tax Act,
19 Section 4 of the Water Commission Act of 1985, subsections
20 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
21 District Act, or subsections (e), (f) and (g) of Section 4.03
22 of the Regional Transportation Authority Act, from such
23 person, the Department may withhold issuance of the credit or
24 refund pending the final disposition of such proceedings and
25 may apply such credit or refund against any amount found to
26 be due to the Department as a result of such proceedings. The
27 balance, if any, of the credit or refund shall be issued to
28 the person entitled thereto.
29 Any credit memorandum issued hereunder may be used by the
30 authorized holder thereof to pay any tax or penalty or
31 interest due or to become due under this Act, the Service
32 Occupation Tax Act, the Retailers' Occupation Tax Act, the
33 Use Tax Act, any local occupation or use tax administered by
34 the Department the Municipal Retailers' Occupation Tax Act,
SB1453 Enrolled -36- LRB9111084SMdv
1 the Municipal Use Tax Act, the Municipal Service Occupation
2 Tax Act, the County Retailers' Occupation Tax Act, the County
3 Supplementary Retailers' Occupation Tax Act, the County
4 Service Occupation Tax Act, the County Supplementary Service
5 Occupation Tax Act, the County Use Tax Act, the County
6 Supplementary Use Tax Act, Section 4 of the Water Commission
7 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
8 the Local Mass Transit District Act, or subsections (e), (f)
9 and (g) of Section 4.03 of the Regional Transportation
10 Authority Act, from such holder. Subject to reasonable rules
11 of the Department, a credit memorandum issued hereunder may
12 be assigned by the holder thereof to any other person for use
13 in paying tax or penalty or interest which may be due or
14 become due under this Act, the Service Occupation Tax Act,
15 the Retailers' Occupation Tax Act, the Use Tax Act, any local
16 occupation or use tax administered by the Department the
17 Municipal Retailers' Occupation Tax Act, the Municipal Use
18 Tax Act, the Municipal Service Occupation Tax Act, the County
19 Retailers' Occupation Tax Act, the County Supplementary
20 Retailers' Occupation Tax Act, the County Service Occupation
21 Tax Act, the County Supplementary Service Occupation Tax Act,
22 the County Use Tax Act, the County Supplementary Use Tax Act,
23 Section 4 of the Water Commission Act of 1985, subsections
24 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
25 District Act, or subsections (e), (f) and (g) of Section 4.03
26 of the Regional Transportation Authority Act, from the
27 assignee.
28 In any case which there has been an erroneous refund of
29 tax payable under this Act, a notice of tax liability may be
30 issued at any time within 3 years from the making of that
31 refund, or within 5 years from the making of that refund if
32 it appears that any part of the refund was induced by fraud
33 or the misrepresentation of a material fact. The amount of
34 any proposed assessment set forth in the notice shall be
SB1453 Enrolled -37- LRB9111084SMdv
1 limited to the amount of the erroneous refund.
2 (Source: P.A. 87-876.)
3 Section 20. The Service Occupation Tax Act is amended by
4 changing Section 20 as follows:
5 (35 ILCS 115/20) (from Ch. 120, par. 439.120)
6 Sec. 20. If it is determined that the Department should
7 issue a credit or refund hereunder, the Department may first
8 apply the amount thereof against any amount of tax or penalty
9 or interest due hereunder, or under the Service Use Tax Act,
10 the Retailers' Occupation Tax Act, the Use Tax Act, any local
11 occupation or use tax administered by the Department the
12 Municipal Retailers' Occupation Tax Act, the Municipal Use
13 Tax Act, the Municipal Service Occupation Tax Act, the County
14 Retailers' Occupation Tax Act, the County Supplementary
15 Retailers' Occupation Tax Act, the County Service Occupation
16 Tax Act, the County Supplementary Service Occupation Tax Act,
17 the County Use Tax Act, the County Supplementary Use Tax Act,
18 Section 4 of the Water Commission Act of 1985, subsections
19 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
20 District Act, or subsections (e), (f) and (g) of Section 4.03
21 of the Regional Transportation Authority Act, from the person
22 entitled to such credit or refund. For this purpose, if
23 proceedings are pending to determine whether or not any tax
24 or penalty or interest is due hereunder, or under the Service
25 Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax
26 Act, any local occupation or use tax administered by the
27 Department the Municipal Retailers' Occupation Tax Act, the
28 Municipal Use Tax Act, the Municipal Service Occupation Tax
29 Act, the County Retailers' Occupation Tax Act, the County
30 Supplementary Retailers' Occupation Tax Act, the County
31 Service Occupation Tax Act, the County Supplementary Service
32 Occupation Tax Act, the County Use Tax Act, the County
SB1453 Enrolled -38- LRB9111084SMdv
1 Supplementary Use Tax Act, Section 4 of the Water Commission
2 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
3 the Local Mass Transit District Act, or subsections (e), (f)
4 and (g) of Section 4.03 of the Regional Transportation
5 Authority Act, from such person, the Department may withhold
6 issuance of the credit or refund pending the final
7 disposition of such proceedings and may apply such credit or
8 refund against any amount found to be due to the Department
9 as a result of such proceedings. The balance, if any, of the
10 credit or refund shall be issued to the person entitled
11 thereto.
12 Any credit memorandum issued hereunder may be used by the
13 authorized holder thereof to pay any tax or penalty or
14 interest due or to become due under this Act, or under the
15 Service Use Tax Act, the Retailers' Occupation Tax Act, the
16 Use Tax Act, any local occupation or use tax administered by
17 the Department the Municipal Retailers' Occupation Tax Act,
18 the Municipal Use Tax Act, the Municipal Service Occupation
19 Tax Act, the County Retailers' Occupation Tax Act, the County
20 Supplementary Retailers' Occupation Tax Act, the County
21 Service Occupation Tax Act, the County Supplementary Service
22 Occupation Tax Act, the County Use Tax Act, the County
23 Supplementary Use Tax Act, Section 4 of the Water Commission
24 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
25 the Local Mass Transit District Act, or subsections (e), (f)
26 and (g) of Section 4.03 of the Regional Transportation
27 Authority Act, from such holder. Subject to reasonable rules
28 of the Department, a credit memorandum issued hereunder may
29 be assigned by the holder thereof to any other person for use
30 in paying tax or penalty or interest which may be due or
31 become due under this Act, the Service Use Tax Act, the
32 Retailers' Occupation Tax Act, the Use Tax Act, any local
33 occupation or use tax administered by the Department the
34 Municipal Retailers' Occupation Tax Act, the Municipal Use
SB1453 Enrolled -39- LRB9111084SMdv
1 Tax Act, the Municipal Service Occupation Tax Act, the County
2 Retailers' Occupation Tax Act, the County Supplementary
3 Retailers' Occupation Tax Act, the County Service Occupation
4 Tax Act, the County Supplementary Service Occupation Tax Act,
5 the County Use Tax Act, the County Supplementary Use Tax Act,
6 Section 4 of the Water Commission Act of 1985, subsections
7 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
8 District Act, or subsections (e), (f) and (g) of Section 4.03
9 of the Regional Transportation Authority Act, from the
10 assignee.
11 In any case in which there has been an erroneous refund
12 of tax payable under this Act, a notice of tax liability may
13 be issued at any time within 3 years from the making of that
14 refund, or within 5 years from the making of that refund if
15 it appears that any part of the refund was induced by fraud
16 or the misrepresentation of a material fact. The amount of
17 any proposed assessment set forth in the notice shall be
18 limited to the amount of the erroneous refund.
19 (Source: P.A. 87-876.)
20 Section 25. The Retailers' Occupation Tax Act is amended
21 by changing Sections 3 and 6 as follows:
22 (35 ILCS 120/3) (from Ch. 120, par. 442)
23 Sec. 3. Except as provided in this Section, on or before
24 the twentieth day of each calendar month, every person
25 engaged in the business of selling tangible personal property
26 at retail in this State during the preceding calendar month
27 shall file a return with the Department, stating:
28 1. The name of the seller;
29 2. His residence address and the address of his
30 principal place of business and the address of the
31 principal place of business (if that is a different
32 address) from which he engages in the business of selling
SB1453 Enrolled -40- LRB9111084SMdv
1 tangible personal property at retail in this State;
2 3. Total amount of receipts received by him during
3 the preceding calendar month or quarter, as the case may
4 be, from sales of tangible personal property, and from
5 services furnished, by him during such preceding calendar
6 month or quarter;
7 4. Total amount received by him during the
8 preceding calendar month or quarter on charge and time
9 sales of tangible personal property, and from services
10 furnished, by him prior to the month or quarter for which
11 the return is filed;
12 5. Deductions allowed by law;
13 6. Gross receipts which were received by him during
14 the preceding calendar month or quarter and upon the
15 basis of which the tax is imposed;
16 7. The amount of credit provided in Section 2d of
17 this Act;
18 8. The amount of tax due;
19 9. The signature of the taxpayer; and
20 10. 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 Each return shall be accompanied by the statement of
27 prepaid tax issued pursuant to Section 2e for which credit is
28 claimed.
29 A retailer may accept a Manufacturer's Purchase Credit
30 certification from a purchaser in satisfaction of Use Tax as
31 provided in Section 3-85 of the Use Tax Act if the purchaser
32 provides the appropriate documentation as required by Section
33 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
34 certification, accepted by a retailer as provided in Section
SB1453 Enrolled -41- LRB9111084SMdv
1 3-85 of the Use Tax Act, may be used by that retailer to
2 satisfy Retailers' Occupation Tax liability in the amount
3 claimed in the certification, not to exceed 6.25% of the
4 receipts subject to tax from a qualifying purchase.
5 The Department may require returns to be filed on a
6 quarterly basis. If so required, a return for each calendar
7 quarter shall be filed on or before the twentieth day of the
8 calendar month following the end of such calendar quarter.
9 The taxpayer shall also file a return with the Department for
10 each of the first two months of each calendar quarter, on or
11 before the twentieth day of the following calendar month,
12 stating:
13 1. The name of the seller;
14 2. The address of the principal place of business
15 from which he engages in the business of selling tangible
16 personal property at retail in this State;
17 3. The total amount of taxable receipts received by
18 him during the preceding calendar month from sales of
19 tangible personal property by him during such preceding
20 calendar month, including receipts from charge and time
21 sales, but less all deductions allowed by law;
22 4. The amount of credit provided in Section 2d of
23 this Act;
24 5. The amount of tax due; and
25 6. Such other reasonable information as the
26 Department may require.
27 If a total amount of less than $1 is payable, refundable
28 or creditable, such amount shall be disregarded if it is less
29 than 50 cents and shall be increased to $1 if it is 50 cents
30 or more.
31 Beginning October 1, 1993, a taxpayer who has an average
32 monthly tax liability of $150,000 or more shall make all
33 payments required by rules of the Department by electronic
34 funds transfer. Beginning October 1, 1994, a taxpayer who
SB1453 Enrolled -42- LRB9111084SMdv
1 has an average monthly tax liability of $100,000 or more
2 shall make all payments required by rules of the Department
3 by electronic funds transfer. Beginning October 1, 1995, a
4 taxpayer who has an average monthly tax liability of $50,000
5 or more shall make all payments required by rules of the
6 Department by electronic funds transfer. Beginning October
7 1, 2000, a taxpayer who has an annual tax liability of
8 $200,000 or more shall make all payments required by rules of
9 the Department by electronic funds transfer. The term
10 "annual tax liability" shall be the sum of the taxpayer's
11 liabilities under this Act, and under all other State and
12 local occupation and use tax laws administered by the
13 Department, for the immediately preceding calendar year. The
14 term "average monthly tax liability" shall be the sum of the
15 taxpayer's liabilities under this Act, and under all other
16 State and local occupation and use tax laws administered by
17 the Department, for the immediately preceding calendar year
18 divided by 12.
19 Before August 1 of each year beginning in 1993, the
20 Department shall notify all taxpayers required to make
21 payments by electronic funds transfer. All taxpayers
22 required to make payments by electronic funds transfer shall
23 make those payments for a minimum of one year beginning on
24 October 1.
25 Any taxpayer not required to make payments by electronic
26 funds transfer may make payments by electronic funds transfer
27 with the permission of the Department.
28 All taxpayers required to make payment by electronic
29 funds transfer and any taxpayers authorized to voluntarily
30 make payments by electronic funds transfer shall make those
31 payments in the manner authorized by the Department.
32 The Department shall adopt such rules as are necessary to
33 effectuate a program of electronic funds transfer and the
34 requirements of this Section.
SB1453 Enrolled -43- LRB9111084SMdv
1 Any amount which is required to be shown or reported on
2 any return or other document under this Act shall, if such
3 amount is not a whole-dollar amount, be increased to the
4 nearest whole-dollar amount in any case where the fractional
5 part of a dollar is 50 cents or more, and decreased to the
6 nearest whole-dollar amount where the fractional part of a
7 dollar is less than 50 cents.
8 If the retailer is otherwise required to file a monthly
9 return and if the retailer's average monthly tax liability to
10 the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the retailer is otherwise required to file a monthly
20 or quarterly return and if the retailer's average monthly tax
21 liability with the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a retailer may file his
30 return, in the case of any retailer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such retailer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
SB1453 Enrolled -44- LRB9111084SMdv
1 Where the same person has more than one business
2 registered with the Department under separate registrations
3 under this Act, such person may not file each return that is
4 due as a single return covering all such registered
5 businesses, but shall file separate returns for each such
6 registered business.
7 In addition, with respect to motor vehicles, watercraft,
8 aircraft, and trailers that are required to be registered
9 with an agency of this State, every retailer selling this
10 kind of tangible personal property shall file, with the
11 Department, upon a form to be prescribed and supplied by the
12 Department, a separate return for each such item of tangible
13 personal property which the retailer sells, except that if
14 where, in the same transaction, (i) a retailer of aircraft,
15 watercraft, motor vehicles or trailers transfers more than
16 one aircraft, watercraft, motor vehicle or trailer to another
17 aircraft, watercraft, motor vehicle retailer or trailer
18 retailer for the purpose of resale or (ii) a retailer of
19 aircraft, watercraft, motor vehicles, or trailers transfers
20 more than one aircraft, watercraft, motor vehicle, or trailer
21 to a purchaser for use as a qualifying rolling stock as
22 provided in Section 2-5 of this Act, then that seller for
23 resale may report the transfer of all aircraft, watercraft,
24 motor vehicles or trailers involved in that transaction to
25 the Department on the same uniform invoice-transaction
26 reporting return form. For purposes of this Section,
27 "watercraft" means a Class 2, Class 3, or Class 4 watercraft
28 as defined in Section 3-2 of the Boat Registration and Safety
29 Act, a personal watercraft, or any boat equipped with an
30 inboard motor.
31 Any retailer who sells only motor vehicles, watercraft,
32 aircraft, or trailers that are required to be registered with
33 an agency of this State, so that all retailers' occupation
34 tax liability is required to be reported, and is reported, on
SB1453 Enrolled -45- LRB9111084SMdv
1 such transaction reporting returns and who is not otherwise
2 required to file monthly or quarterly returns, need not file
3 monthly or quarterly returns. However, those retailers shall
4 be required to file returns on an annual basis.
5 The transaction reporting return, in the case of motor
6 vehicles or trailers that are required to be registered with
7 an agency of this State, shall be the same document as the
8 Uniform Invoice referred to in Section 5-402 of The Illinois
9 Vehicle Code and must show the name and address of the
10 seller; the name and address of the purchaser; the amount of
11 the selling price including the amount allowed by the
12 retailer for traded-in property, if any; the amount allowed
13 by the retailer for the traded-in tangible personal property,
14 if any, to the extent to which Section 1 of this Act allows
15 an exemption for the value of traded-in property; the balance
16 payable after deducting such trade-in allowance from the
17 total selling price; the amount of tax due from the retailer
18 with respect to such transaction; the amount of tax collected
19 from the purchaser by the retailer on such transaction (or
20 satisfactory evidence that such tax is not due in that
21 particular instance, if that is claimed to be the fact); the
22 place and date of the sale; a sufficient identification of
23 the property sold; such other information as is required in
24 Section 5-402 of The Illinois Vehicle Code, and such other
25 information as the Department may reasonably require.
26 The transaction reporting return in the case of
27 watercraft or aircraft must show the name and address of the
28 seller; the name and address of the purchaser; the amount of
29 the selling price including the amount allowed by the
30 retailer for traded-in property, if any; the amount allowed
31 by the retailer for the traded-in tangible personal property,
32 if any, to the extent to which Section 1 of this Act allows
33 an exemption for the value of traded-in property; the balance
34 payable after deducting such trade-in allowance from the
SB1453 Enrolled -46- LRB9111084SMdv
1 total selling price; the amount of tax due from the retailer
2 with respect to such transaction; the amount of tax collected
3 from the purchaser by the retailer on such transaction (or
4 satisfactory evidence that such tax is not due in that
5 particular instance, if that is claimed to be the fact); the
6 place and date of the sale, a sufficient identification of
7 the property sold, and such other information as the
8 Department may reasonably require.
9 Such transaction reporting return shall be filed not
10 later than 20 days after the day of delivery of the item that
11 is being sold, but may be filed by the retailer at any time
12 sooner than that if he chooses to do so. The transaction
13 reporting return and tax remittance or proof of exemption
14 from the Illinois use tax may be transmitted to the
15 Department by way of the State agency with which, or State
16 officer with whom the tangible personal property must be
17 titled or registered (if titling or registration is required)
18 if the Department and such agency or State officer determine
19 that this procedure will expedite the processing of
20 applications for title or registration.
21 With each such transaction reporting return, the retailer
22 shall remit the proper amount of tax due (or shall submit
23 satisfactory evidence that the sale is not taxable if that is
24 the case), to the Department or its agents, whereupon the
25 Department shall issue, in the purchaser's name, a use tax
26 receipt (or a certificate of exemption if the Department is
27 satisfied that the particular sale is tax exempt) which such
28 purchaser may submit to the agency with which, or State
29 officer with whom, he must title or register the tangible
30 personal property that is involved (if titling or
31 registration is required) in support of such purchaser's
32 application for an Illinois certificate or other evidence of
33 title or registration to such tangible personal property.
34 No retailer's failure or refusal to remit tax under this
SB1453 Enrolled -47- LRB9111084SMdv
1 Act precludes a user, who has paid the proper tax to the
2 retailer, from obtaining his certificate of title or other
3 evidence of title or registration (if titling or registration
4 is required) upon satisfying the Department that such user
5 has paid the proper tax (if tax is due) to the retailer. The
6 Department shall adopt appropriate rules to carry out the
7 mandate of this paragraph.
8 If the user who would otherwise pay tax to the retailer
9 wants the transaction reporting return filed and the payment
10 of the tax or proof of exemption made to the Department
11 before the retailer is willing to take these actions and such
12 user has not paid the tax to the retailer, such user may
13 certify to the fact of such delay by the retailer and may
14 (upon the Department being satisfied of the truth of such
15 certification) transmit the information required by the
16 transaction reporting return and the remittance for tax or
17 proof of exemption directly to the Department and obtain his
18 tax receipt or exemption determination, in which event the
19 transaction reporting return and tax remittance (if a tax
20 payment was required) shall be credited by the Department to
21 the proper retailer's account with the Department, but
22 without the 2.1% or 1.75% discount provided for in this
23 Section being allowed. When the user pays the tax directly
24 to the Department, he shall pay the tax in the same amount
25 and in the same form in which it would be remitted if the tax
26 had been remitted to the Department by the retailer.
27 Refunds made by the seller during the preceding return
28 period to purchasers, on account of tangible personal
29 property returned to the seller, shall be allowed as a
30 deduction under subdivision 5 of his monthly or quarterly
31 return, as the case may be, in case the seller had
32 theretofore included the receipts from the sale of such
33 tangible personal property in a return filed by him and had
34 paid the tax imposed by this Act with respect to such
SB1453 Enrolled -48- LRB9111084SMdv
1 receipts.
2 Where the seller is a corporation, the return filed on
3 behalf of such corporation shall be signed by the president,
4 vice-president, secretary or treasurer or by the properly
5 accredited agent of such corporation.
6 Where the seller is a limited liability company, the
7 return filed on behalf of the limited liability company shall
8 be signed by a manager, member, or properly accredited agent
9 of the limited liability company.
10 Except as provided in this Section, the retailer filing
11 the return under this Section shall, at the time of filing
12 such return, pay to the Department the amount of tax imposed
13 by this Act less a discount of 2.1% prior to January 1, 1990
14 and 1.75% on and after January 1, 1990, or $5 per calendar
15 year, whichever is greater, which is allowed to reimburse the
16 retailer for the expenses incurred in keeping records,
17 preparing and filing returns, remitting the tax and supplying
18 data to the Department on request. Any prepayment made
19 pursuant to Section 2d of this Act shall be included in the
20 amount on which such 2.1% or 1.75% discount is computed. In
21 the case of retailers who report and pay the tax on a
22 transaction by transaction basis, as provided in this
23 Section, such discount shall be taken with each such tax
24 remittance instead of when such retailer files his periodic
25 return.
26 Before October 1, 2000, if the taxpayer's average monthly
27 tax liability to the Department under this Act, the Use Tax
28 Act, the Service Occupation Tax Act, and the Service Use Tax
29 Act, excluding any liability for prepaid sales tax to be
30 remitted in accordance with Section 2d of this Act, was
31 $10,000 or more during the preceding 4 complete calendar
32 quarters, he shall file a return with the Department each
33 month by the 20th day of the month next following the month
34 during which such tax liability is incurred and shall make
SB1453 Enrolled -49- LRB9111084SMdv
1 payments to the Department on or before the 7th, 15th, 22nd
2 and last day of the month during which such liability is
3 incurred. On and after October 1, 2000, if the taxpayer's
4 average monthly tax liability to the Department under this
5 Act, the Use Tax Act, the Service Occupation Tax Act, and the
6 Service Use Tax Act, excluding any liability for prepaid
7 sales tax to be remitted in accordance with Section 2d of
8 this Act, was $20,000 or more during the preceding 4 complete
9 calendar quarters, he shall file a return with the Department
10 each month by the 20th day of the month next following the
11 month during which such tax liability is incurred and shall
12 make payment to the Department on or before the 7th, 15th,
13 22nd and last day of the month during which such liability is
14 incurred. If the month during which such tax liability is
15 incurred began prior to January 1, 1985, each payment shall
16 be in an amount equal to 1/4 of the taxpayer's actual
17 liability for the month or an amount set by the Department
18 not to exceed 1/4 of the average monthly liability of the
19 taxpayer to the Department for the preceding 4 complete
20 calendar quarters (excluding the month of highest liability
21 and the month of lowest liability in such 4 quarter period).
22 If the month during which such tax liability is incurred
23 begins on or after January 1, 1985 and prior to January 1,
24 1987, each payment shall be in an amount equal to 22.5% of
25 the taxpayer's actual liability for the month or 27.5% of the
26 taxpayer's liability for the same calendar month of the
27 preceding year. If the month during which such tax liability
28 is incurred begins on or after January 1, 1987 and prior to
29 January 1, 1988, each payment shall be in an amount equal to
30 22.5% of the taxpayer's actual liability for the month or
31 26.25% of the taxpayer's liability for the same calendar
32 month of the preceding year. If the month during which such
33 tax liability is incurred begins on or after January 1, 1988,
34 and prior to January 1, 1989, or begins on or after January
SB1453 Enrolled -50- LRB9111084SMdv
1 1, 1996, each payment shall be in an amount equal to 22.5% of
2 the taxpayer's actual liability for the month or 25% of the
3 taxpayer's liability for the same calendar month of the
4 preceding year. If the month during which such tax liability
5 is incurred begins on or after January 1, 1989, and prior to
6 January 1, 1996, each payment shall be in an amount equal to
7 22.5% of the taxpayer's actual liability for the month or 25%
8 of the taxpayer's liability for the same calendar month of
9 the preceding year or 100% of the taxpayer's actual liability
10 for the quarter monthly reporting period. The amount of such
11 quarter monthly payments shall be credited against the final
12 tax liability of the taxpayer's return for that month.
13 Before October 1, 2000, once applicable, the requirement of
14 the making of quarter monthly payments to the Department by
15 taxpayers having an average monthly tax liability of $10,000
16 or more as determined in the manner provided above shall
17 continue until such taxpayer's average monthly liability to
18 the Department during the preceding 4 complete calendar
19 quarters (excluding the month of highest liability and the
20 month of lowest liability) is less than $9,000, or until such
21 taxpayer's average monthly liability to the Department as
22 computed for each calendar quarter of the 4 preceding
23 complete calendar quarter period is less than $10,000.
24 However, if a taxpayer can show the Department that a
25 substantial change in the taxpayer's business has occurred
26 which causes the taxpayer to anticipate that his average
27 monthly tax liability for the reasonably foreseeable future
28 will fall below the $10,000 threshold stated above, then such
29 taxpayer may petition the Department for a change in such
30 taxpayer's reporting status. On and after October 1, 2000,
31 once applicable, the requirement of the making of quarter
32 monthly payments to the Department by taxpayers having an
33 average monthly tax liability of $20,000 or more as
34 determined in the manner provided above shall continue until
SB1453 Enrolled -51- LRB9111084SMdv
1 such taxpayer's average monthly liability to the Department
2 during the preceding 4 complete calendar quarters (excluding
3 the month of highest liability and the month of lowest
4 liability) is less than $19,000 or until such taxpayer's
5 average monthly liability to the Department as computed for
6 each calendar quarter of the 4 preceding complete calendar
7 quarter period is less than $20,000. However, if a taxpayer
8 can show the Department that a substantial change in the
9 taxpayer's business has occurred which causes the taxpayer to
10 anticipate that his average monthly tax liability for the
11 reasonably foreseeable future will fall below the $20,000
12 threshold stated above, then such taxpayer may petition the
13 Department for a change in such taxpayer's reporting status.
14 The Department shall change such taxpayer's reporting status
15 unless it finds that such change is seasonal in nature and
16 not likely to be long term. If any such quarter monthly
17 payment is not paid at the time or in the amount required by
18 this Section, then the taxpayer shall be liable for penalties
19 and interest on the difference between the minimum amount due
20 as a payment and the amount of such quarter monthly payment
21 actually and timely paid, except insofar as the taxpayer has
22 previously made payments for that month to the Department in
23 excess of the minimum payments previously due as provided in
24 this Section. The Department shall make reasonable rules and
25 regulations to govern the quarter monthly payment amount and
26 quarter monthly payment dates for taxpayers who file on other
27 than a calendar monthly basis.
28 Without regard to whether a taxpayer is required to make
29 quarter monthly payments as specified above, any taxpayer who
30 is required by Section 2d of this Act to collect and remit
31 prepaid taxes and has collected prepaid taxes which average
32 in excess of $25,000 per month during the preceding 2
33 complete calendar quarters, shall file a return with the
34 Department as required by Section 2f and shall make payments
SB1453 Enrolled -52- LRB9111084SMdv
1 to the Department on or before the 7th, 15th, 22nd and last
2 day of the month during which such liability is incurred. If
3 the month during which such tax liability is incurred began
4 prior to the effective date of this amendatory Act of 1985,
5 each payment shall be in an amount not less than 22.5% of the
6 taxpayer's actual liability under Section 2d. If the month
7 during which such tax liability is incurred begins on or
8 after January 1, 1986, each payment shall be in an amount
9 equal to 22.5% of the taxpayer's actual liability for the
10 month or 27.5% of the taxpayer's liability for the same
11 calendar month of the preceding calendar year. If the month
12 during which such tax liability is incurred begins on or
13 after January 1, 1987, each payment shall be in an amount
14 equal to 22.5% of the taxpayer's actual liability for the
15 month or 26.25% of the taxpayer's liability for the same
16 calendar month of the preceding year. The amount of such
17 quarter monthly payments shall be credited against the final
18 tax liability of the taxpayer's return for that month filed
19 under this Section or Section 2f, as the case may be. Once
20 applicable, the requirement of the making of quarter monthly
21 payments to the Department pursuant to this paragraph shall
22 continue until such taxpayer's average monthly prepaid tax
23 collections during the preceding 2 complete calendar quarters
24 is $25,000 or less. If any such quarter monthly payment is
25 not paid at the time or in the amount required, the taxpayer
26 shall be liable for penalties and interest on such
27 difference, except insofar as the taxpayer has previously
28 made payments for that month in excess of the minimum
29 payments previously due.
30 If any payment provided for in this Section exceeds the
31 taxpayer's liabilities under this Act, the Use Tax Act, the
32 Service Occupation Tax Act and the Service Use Tax Act, as
33 shown on an original monthly return, the Department shall, if
34 requested by the taxpayer, issue to the taxpayer a credit
SB1453 Enrolled -53- LRB9111084SMdv
1 memorandum no later than 30 days after the date of payment.
2 The credit evidenced by such credit memorandum may be
3 assigned by the taxpayer to a similar taxpayer under this
4 Act, the Use Tax Act, the Service Occupation Tax Act or the
5 Service Use Tax Act, in accordance with reasonable rules and
6 regulations to be prescribed by the Department. If no such
7 request is made, the taxpayer may credit such excess payment
8 against tax liability subsequently to be remitted to the
9 Department under this Act, the Use Tax Act, the Service
10 Occupation Tax Act or the Service Use Tax Act, in accordance
11 with reasonable rules and regulations prescribed by the
12 Department. If the Department subsequently determined that
13 all or any part of the credit taken was not actually due to
14 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
15 shall be reduced by 2.1% or 1.75% of the difference between
16 the credit taken and that actually due, and that taxpayer
17 shall be liable for penalties and interest on such
18 difference.
19 If a retailer of motor fuel is entitled to a credit under
20 Section 2d of this Act which exceeds the taxpayer's liability
21 to the Department under this Act for the month which the
22 taxpayer is filing a return, the Department shall issue the
23 taxpayer a credit memorandum for the excess.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the Local Government Tax Fund, a special fund
26 in the State treasury which is hereby created, the net
27 revenue realized for the preceding month from the 1% tax on
28 sales of food for human consumption which is to be consumed
29 off the premises where it is sold (other than alcoholic
30 beverages, soft drinks and food which has been prepared for
31 immediate consumption) and prescription and nonprescription
32 medicines, drugs, medical appliances and insulin, urine
33 testing materials, syringes and needles used by diabetics.
34 Beginning January 1, 1990, each month the Department
SB1453 Enrolled -54- LRB9111084SMdv
1 shall pay into the County and Mass Transit District Fund, a
2 special fund in the State treasury which is hereby created,
3 4% of the net revenue realized for the preceding month from
4 the 6.25% general rate.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the Local Government Tax Fund 16% of the net
7 revenue realized for the preceding month from the 6.25%
8 general rate on the selling price of tangible personal
9 property.
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 this Act, Section 9 of the Use Tax Act, Section 9 of the
19 Service Use Tax Act, and Section 9 of the Service Occupation
20 Tax Act, such Acts being hereinafter called the "Tax Acts"
21 and such aggregate of 2.2% or 3.8%, as the case may be, of
22 moneys being hereinafter called the "Tax Act Amount", and (2)
23 the amount transferred to the Build Illinois Fund from the
24 State and Local Sales Tax Reform Fund shall be less than the
25 Annual Specified Amount (as hereinafter defined), an amount
26 equal to the difference shall be immediately paid into the
27 Build Illinois Fund from other moneys received by the
28 Department pursuant to the Tax Acts; the "Annual Specified
29 Amount" means the amounts specified below for fiscal years
30 1986 through 1993:
31 Fiscal Year Annual Specified Amount
32 1986 $54,800,000
33 1987 $76,650,000
34 1988 $80,480,000
SB1453 Enrolled -55- LRB9111084SMdv
1 1989 $88,510,000
2 1990 $115,330,000
3 1991 $145,470,000
4 1992 $182,730,000
5 1993 $206,520,000;
6 and means the Certified Annual Debt Service Requirement (as
7 defined in Section 13 of the Build Illinois Bond Act) or the
8 Tax Act Amount, whichever is greater, for fiscal year 1994
9 and each fiscal year thereafter; and further provided, that
10 if on the last business day of any month the sum of (1) the
11 Tax Act Amount required to be deposited into the Build
12 Illinois Bond Account in the Build Illinois Fund during such
13 month and (2) the amount transferred to the Build Illinois
14 Fund from the State and Local Sales Tax Reform Fund shall
15 have been less than 1/12 of the Annual Specified Amount, an
16 amount equal to the difference shall be immediately paid into
17 the Build Illinois Fund from other moneys received by the
18 Department pursuant to the Tax Acts; and, further provided,
19 that in no event shall the payments required under the
20 preceding proviso result in aggregate payments into the Build
21 Illinois Fund pursuant to this clause (b) for any fiscal year
22 in excess of the greater of (i) the Tax Act Amount or (ii)
23 the Annual Specified Amount for such fiscal year. The
24 amounts payable into the Build Illinois Fund under clause (b)
25 of the first sentence in this paragraph shall be payable only
26 until such time as the aggregate amount on deposit under each
27 trust indenture securing Bonds issued and outstanding
28 pursuant to the Build Illinois Bond Act is sufficient, taking
29 into account any future investment income, to fully provide,
30 in accordance with such indenture, for the defeasance of or
31 the payment of the principal of, premium, if any, and
32 interest on the Bonds secured by such indenture and on any
33 Bonds expected to be issued thereafter and all fees and costs
34 payable with respect thereto, all as certified by the
SB1453 Enrolled -56- LRB9111084SMdv
1 Director of the Bureau of the Budget. If on the last
2 business day of any month in which Bonds are outstanding
3 pursuant to the Build Illinois Bond Act, the aggregate of
4 moneys deposited in the Build Illinois Bond Account in the
5 Build Illinois Fund in such month shall be less than the
6 amount required to be transferred in such month from the
7 Build Illinois Bond Account to the Build Illinois Bond
8 Retirement and Interest Fund pursuant to Section 13 of the
9 Build Illinois Bond Act, an amount equal to such deficiency
10 shall be immediately paid from other moneys received by the
11 Department pursuant to the Tax Acts to the Build Illinois
12 Fund; provided, however, that any amounts paid to the Build
13 Illinois Fund in any fiscal year pursuant to this sentence
14 shall be deemed to constitute payments pursuant to clause (b)
15 of the first sentence of this paragraph and shall reduce the
16 amount otherwise payable for such fiscal year pursuant to
17 that clause (b). The moneys received by the Department
18 pursuant to this Act and required to be deposited into the
19 Build Illinois Fund are subject to the pledge, claim and
20 charge set forth in Section 12 of the Build Illinois Bond
21 Act.
22 Subject to payment of amounts into the Build Illinois
23 Fund as provided in the preceding paragraph or in any
24 amendment thereto hereafter enacted, the following specified
25 monthly installment of the amount requested in the
26 certificate of the Chairman of the Metropolitan Pier and
27 Exposition Authority provided under Section 8.25f of the
28 State Finance Act, but not in excess of sums designated as
29 "Total Deposit", shall be deposited in the aggregate from
30 collections under Section 9 of the Use Tax Act, Section 9 of
31 the Service Use Tax Act, Section 9 of the Service Occupation
32 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
33 into the McCormick Place Expansion Project Fund in the
34 specified fiscal years.
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1 Fiscal Year Total Deposit
2 1993 $0
3 1994 53,000,000
4 1995 58,000,000
5 1996 61,000,000
6 1997 64,000,000
7 1998 68,000,000
8 1999 71,000,000
9 2000 75,000,000
10 2001 80,000,000
11 2002 84,000,000
12 2003 89,000,000
13 2004 93,000,000
14 2005 97,000,000
15 2006 102,000,000
16 2007 108,000,000
17 2008 115,000,000
18 2009 120,000,000
19 2010 126,000,000
20 2011 132,000,000
21 2012 138,000,000
22 2013 and 145,000,000
23 each fiscal year
24 thereafter that bonds
25 are outstanding under
26 Section 13.2 of the
27 Metropolitan Pier and
28 Exposition Authority
29 Act, but not after fiscal year 2029.
30 Beginning July 20, 1993 and in each month of each fiscal
31 year thereafter, one-eighth of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority for that fiscal year, less the amount
34 deposited into the McCormick Place Expansion Project Fund by
SB1453 Enrolled -58- LRB9111084SMdv
1 the State Treasurer in the respective month under subsection
2 (g) of Section 13 of the Metropolitan Pier and Exposition
3 Authority Act, plus cumulative deficiencies in the deposits
4 required under this Section for previous months and years,
5 shall be deposited into the McCormick Place Expansion Project
6 Fund, until the full amount requested for the fiscal year,
7 but not in excess of the amount specified above as "Total
8 Deposit", has been deposited.
9 Subject to payment of amounts into the Build Illinois
10 Fund and the McCormick Place Expansion Project Fund pursuant
11 to the preceding paragraphs or in any amendment thereto
12 hereafter enacted, each month the Department shall pay into
13 the Local Government Distributive Fund 0.4% of the net
14 revenue realized for the preceding month from the 5% general
15 rate or 0.4% of 80% of the net revenue realized for the
16 preceding month from the 6.25% general rate, as the case may
17 be, on the selling price of tangible personal property which
18 amount shall, subject to appropriation, be distributed as
19 provided in Section 2 of the State Revenue Sharing Act. No
20 payments or distributions pursuant to this paragraph shall be
21 made if the tax imposed by this Act on photoprocessing
22 products is declared unconstitutional, or if the proceeds
23 from such tax are unavailable for distribution because of
24 litigation.
25 Subject to payment of amounts into the Build Illinois
26 Fund, the McCormick Place Expansion Project 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 Of the remainder of the moneys received by the Department
34 pursuant to this Act, 75% thereof shall be paid into the
SB1453 Enrolled -59- LRB9111084SMdv
1 State Treasury and 25% shall be reserved in a special account
2 and used only for the transfer to the Common School Fund as
3 part of the monthly transfer from the General Revenue Fund in
4 accordance with Section 8a of the State Finance Act.
5 The Department may, upon separate written notice to a
6 taxpayer, require the taxpayer to prepare and file with the
7 Department on a form prescribed by the Department within not
8 less than 60 days after receipt of the notice an annual
9 information return for the tax year specified in the notice.
10 Such annual return to the Department shall include a
11 statement of gross receipts as shown by the retailer's last
12 Federal income tax return. If the total receipts of the
13 business as reported in the Federal income tax return do not
14 agree with the gross receipts reported to the Department of
15 Revenue for the same period, the retailer shall attach to his
16 annual return a schedule showing a reconciliation of the 2
17 amounts and the reasons for the difference. The retailer's
18 annual return to the Department shall also disclose the cost
19 of goods sold by the retailer during the year covered by such
20 return, opening and closing inventories of such goods for
21 such year, costs of goods used from stock or taken from stock
22 and given away by the retailer during such year, payroll
23 information of the retailer's business during such year and
24 any additional reasonable information which the Department
25 deems would be helpful in determining the accuracy of the
26 monthly, quarterly or annual returns filed by such retailer
27 as provided for in this Section.
28 If the annual information return required by this Section
29 is not filed when and as required, the taxpayer shall be
30 liable as follows:
31 (i) Until January 1, 1994, the taxpayer shall be
32 liable for a penalty equal to 1/6 of 1% of the tax due
33 from such taxpayer under this Act during the period to be
34 covered by the annual return for each month or fraction
SB1453 Enrolled -60- LRB9111084SMdv
1 of a month until such return is filed as required, the
2 penalty to be assessed and collected in the same manner
3 as any other penalty provided for in this Act.
4 (ii) On and after January 1, 1994, the taxpayer
5 shall be liable for a penalty as described in Section 3-4
6 of the Uniform Penalty and Interest Act.
7 The chief executive officer, proprietor, owner or highest
8 ranking manager shall sign the annual return to certify the
9 accuracy of the information contained therein. Any person
10 who willfully signs the annual return containing false or
11 inaccurate information shall be guilty of perjury and
12 punished accordingly. The annual return form prescribed by
13 the Department shall include a warning that the person
14 signing the return may be liable for perjury.
15 The provisions of this Section concerning the filing of
16 an annual information return do not apply to a retailer who
17 is not required to file an income tax return with the United
18 States Government.
19 As soon as possible after the first day of each month,
20 upon certification of the Department of Revenue, the
21 Comptroller shall order transferred and the Treasurer shall
22 transfer from the General Revenue Fund to the Motor Fuel Tax
23 Fund an amount equal to 1.7% of 80% of the net revenue
24 realized under this Act for the second preceding month.
25 Beginning April 1, 2000, this transfer is no longer required
26 and shall not be made.
27 Net revenue realized for a month shall be the revenue
28 collected by the State pursuant to this Act, less the amount
29 paid out during that month as refunds to taxpayers for
30 overpayment of liability.
31 For greater simplicity of administration, manufacturers,
32 importers and wholesalers whose products are sold at retail
33 in Illinois by numerous retailers, and who wish to do so, may
34 assume the responsibility for accounting and paying to the
SB1453 Enrolled -61- LRB9111084SMdv
1 Department all tax accruing under this Act with respect to
2 such sales, if the retailers who are affected do not make
3 written objection to the Department to this arrangement.
4 Any person who promotes, organizes, provides retail
5 selling space for concessionaires or other types of sellers
6 at the Illinois State Fair, DuQuoin State Fair, county fairs,
7 local fairs, art shows, flea markets and similar exhibitions
8 or events, including any transient merchant as defined by
9 Section 2 of the Transient Merchant Act of 1987, is required
10 to file a report with the Department providing the name of
11 the merchant's business, the name of the person or persons
12 engaged in merchant's business, the permanent address and
13 Illinois Retailers Occupation Tax Registration Number of the
14 merchant, the dates and location of the event and other
15 reasonable information that the Department may require. The
16 report must be filed not later than the 20th day of the month
17 next following the month during which the event with retail
18 sales was held. Any person who fails to file a report
19 required by this Section commits a business offense and is
20 subject to a fine not to exceed $250.
21 Any person engaged in the business of selling tangible
22 personal property at retail as a concessionaire or other type
23 of seller at the Illinois State Fair, county fairs, art
24 shows, flea markets and similar exhibitions or events, or any
25 transient merchants, as defined by Section 2 of the Transient
26 Merchant Act of 1987, may be required to make a daily report
27 of the amount of such sales to the Department and to make a
28 daily payment of the full amount of tax due. The Department
29 shall impose this requirement when it finds that there is a
30 significant risk of loss of revenue to the State at such an
31 exhibition or event. Such a finding shall be based on
32 evidence that a substantial number of concessionaires or
33 other sellers who are not residents of Illinois will be
34 engaging in the business of selling tangible personal
SB1453 Enrolled -62- LRB9111084SMdv
1 property at retail at the exhibition or event, or other
2 evidence of a significant risk of loss of revenue to the
3 State. The Department shall notify concessionaires and other
4 sellers affected by the imposition of this requirement. In
5 the absence of notification by the Department, the
6 concessionaires and other sellers shall file their returns as
7 otherwise required in this Section.
8 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
9 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
10 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
11 (35 ILCS 120/6) (from Ch. 120, par. 445)
12 Sec. 6. Credit memorandum or refund. If it appears, after
13 claim therefor filed with the Department, that an amount of
14 tax or penalty or interest has been paid which was not due
15 under this Act, whether as the result of a mistake of fact or
16 an error of law, except as hereinafter provided, then the
17 Department shall issue a credit memorandum or refund to the
18 person who made the erroneous payment or, if that person died
19 or became a person under legal disability, to his or her
20 legal representative, as such. For purposes of this Section,
21 the tax is deemed to be erroneously paid by a retailer when
22 the manufacturer of a motor vehicle sold by the retailer
23 accepts the return of that automobile and refunds to the
24 purchaser the selling price of that vehicle as provided in
25 the New Vehicle Buyer Protection Act. When a motor vehicle is
26 returned for a refund of the purchase price under the New
27 Vehicle Buyer Protection Act, the Department shall issue a
28 credit memorandum or a refund for the amount of tax paid by
29 the retailer under this Act attributable to the initial sale
30 of that vehicle. Claims submitted by the retailer are subject
31 to the same restrictions and procedures provided for in this
32 Act. If it is determined that the Department should issue a
33 credit memorandum or refund, the Department may first apply
SB1453 Enrolled -63- LRB9111084SMdv
1 the amount thereof against any tax or penalty or interest due
2 or to become due under this Act or under the Use Tax Act, the
3 Service Occupation Tax Act, the Service Use Tax Act, any
4 local occupation or use tax administered by the Department
5 the Municipal Retailers' Occupation Tax Act, the Municipal
6 Use Tax Act, the Municipal Service Occupation Tax Act, the
7 County Retailers' Occupation Tax Act, the County
8 Supplementary Retailers' Occupation Tax Act, the County
9 Service Occupation Tax Act, the County Supplementary Service
10 Occupation Tax Act, the County Use Tax Act, the County
11 Supplementary Use Tax Act, Section 4 of the Water Commission
12 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
13 the Local Mass Transit District Act, or subsections (e), (f)
14 and (g) of Section 4.03 of the Regional Transportation
15 Authority Act, from the person who made the erroneous
16 payment. If no tax or penalty or interest is due and no
17 proceeding is pending to determine whether such person is
18 indebted to the Department for tax or penalty or interest,
19 the credit memorandum or refund shall be issued to the
20 claimant; or (in the case of a credit memorandum) the credit
21 memorandum may be assigned and set over by the lawful holder
22 thereof, subject to reasonable rules of the Department, to
23 any other person who is subject to this Act, the Use Tax Act,
24 the Service Occupation Tax Act, the Service Use Tax Act, any
25 local occupation or use tax administered by the Department
26 the Municipal Retailers' Occupation Tax Act, the Municipal
27 Use Tax Act, the Municipal Service Occupation Tax Act, the
28 County Retailers' Occupation Tax Act, the County
29 Supplementary Retailers' Occupation Tax Act, the County
30 Service Occupation Tax Act, the County Supplementary Service
31 Occupation Tax Act, the County Use Tax Act, the County
32 Supplementary Use Tax Act, Section 4 of the Water Commission
33 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
34 the Local Mass Transit District Act, or subsections (e), (f)
SB1453 Enrolled -64- LRB9111084SMdv
1 and (g) of Section 4.03 of the Regional Transportation
2 Authority Act, and the amount thereof applied by the
3 Department against any tax or penalty or interest due or to
4 become due under this Act or under the Use Tax Act, the
5 Service Occupation Tax Act, the Service Use Tax Act, any
6 local occupation or use tax administered by the Department
7 the Municipal Retailers' Occupation Tax Act, the Municipal
8 Use Tax Act, the Municipal Service Occupation Tax Act, the
9 County Retailers' Occupation Tax Act, the County
10 Supplementary Retailers' Occupation Tax Act, the County
11 Service Occupation Tax Act, the County Supplementary Service
12 Occupation Tax Act, the County Use Tax Act, the County
13 Supplementary Use Tax Act, Section 4 of the Water Commission
14 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
15 the Local Mass Transit District Act, or subsections (e), (f)
16 and (g) of Section 4.03 of the Regional Transportation
17 Authority Act, from such assignee. However, as to any claim
18 for credit or refund filed with the Department on and after
19 each January 1 and July 1 no amount of tax or penalty or
20 interest erroneously paid (either in total or partial
21 liquidation of a tax or penalty or amount of interest under
22 this Act) more than 3 years prior to such January 1 and July
23 1, respectively, shall be credited or refunded, except that
24 if both the Department and the taxpayer have agreed to an
25 extension of time to issue a notice of tax liability as
26 provided in Section 4 of this Act, such claim may be filed at
27 any time prior to the expiration of the period agreed upon.
28 No claim may be allowed for any amount paid to the
29 Department, whether paid voluntarily or involuntarily, if
30 paid in total or partial liquidation of an assessment which
31 had become final before the claim for credit or refund to
32 recover the amount so paid is filed with the Department, or
33 if paid in total or partial liquidation of a judgment or
34 order of court. No credit may be allowed or refund made for
SB1453 Enrolled -65- LRB9111084SMdv
1 any amount paid by or collected from any claimant unless it
2 appears (a) that the claimant bore the burden of such amount
3 and has not been relieved thereof nor reimbursed therefor and
4 has not shifted such burden directly or indirectly through
5 inclusion of such amount in the price of the tangible
6 personal property sold by him or her or in any manner
7 whatsoever; and that no understanding or agreement, written
8 or oral, exists whereby he or she or his or her legal
9 representative may be relieved of the burden of such amount,
10 be reimbursed therefor or may shift the burden thereof; or
11 (b) that he or she or his or her legal representative has
12 repaid unconditionally such amount to his or her vendee (1)
13 who bore the burden thereof and has not shifted such burden
14 directly or indirectly, in any manner whatsoever; (2) who, if
15 he or she has shifted such burden, has repaid unconditionally
16 such amount to his own vendee; and (3) who is not entitled to
17 receive any reimbursement therefor from any other source than
18 from his or her vendor, nor to be relieved of such burden in
19 any manner whatsoever. No credit may be allowed or refund
20 made for any amount paid by or collected from any claimant
21 unless it appears that the claimant has unconditionally
22 repaid, to the purchaser, any amount collected from the
23 purchaser and retained by the claimant with respect to the
24 same transaction under the Use Tax Act.
25 Any credit or refund that is allowed under this Section
26 shall bear interest at the rate and in the manner specified
27 in the Uniform Penalty and Interest Act.
28 In case the Department determines that the claimant is
29 entitled to a refund, such refund shall be made only from
30 such appropriation as may be available for that purpose. If
31 it appears unlikely that the amount appropriated would permit
32 everyone having a claim allowed during the period covered by
33 such appropriation to elect to receive a cash refund, the
34 Department, by rule or regulation, shall provide for the
SB1453 Enrolled -66- LRB9111084SMdv
1 payment of refunds in hardship cases and shall define what
2 types of cases qualify as hardship cases.
3 If a retailer who has failed to pay retailers' occupation
4 tax on gross receipts from retail sales is required by the
5 Department to pay such tax, such retailer, without filing any
6 formal claim with the Department, shall be allowed to take
7 credit against such retailers' occupation tax liability to
8 the extent, if any, to which such retailer has paid an amount
9 equivalent to retailers' occupation tax or has paid use tax
10 in error to his or her vendor or vendors of the same tangible
11 personal property which such retailer bought for resale and
12 did not first use before selling it, and no penalty or
13 interest shall be charged to such retailer on the amount of
14 such credit. However, when such credit is allowed to the
15 retailer by the Department, the vendor is precluded from
16 refunding any of that tax to the retailer and filing a claim
17 for credit or refund with respect thereto with the
18 Department. The provisions of this amendatory Act shall be
19 applied retroactively, regardless of the date of the
20 transaction.
21 (Source: P.A. 89-359, eff. 8-17-95.)
22 Section 30. The Cigarette Tax Act is amended by changing
23 Sections 4 and 6 as follows:
24 (35 ILCS 130/4) (from Ch. 120, par. 453.4)
25 Sec. 4. Distributor's license. No person may engage in
26 business as a distributor of cigarettes in this State within
27 the meaning of the first 2 definitions of distributor in
28 Section 1 of this Act without first having obtained a license
29 therefor from the Department. Application for license shall
30 be made to the Department in form as furnished and prescribed
31 by the Department. Each applicant for a license under this
32 Section shall furnish to the Department on the form signed
SB1453 Enrolled -67- LRB9111084SMdv
1 and verified by the applicant the following information:
2 (a) The name and address of the applicant;
3 (b) The address of the location at which the applicant
4 proposes to engage in business as a distributor of cigarettes
5 in this State;
6 (c) Such other additional information as the Department
7 may lawfully require by its rules and regulations.
8 The annual license fee payable to the Department for each
9 distributor's license shall be $250. The purpose of such
10 annual license fee is to defray the cost, to the Department,
11 of coding, serializing or coding and serializing cigarette
12 tax stamps. Each applicant for license shall pay such fee to
13 the Department at the time of submitting his application for
14 license to the Department.
15 Every applicant who is required to procure a
16 distributor's license shall file with his application a joint
17 and several bond. Such bond shall be executed to the
18 Department of Revenue, with good and sufficient surety or
19 sureties residing or licensed to do business within the State
20 of Illinois, in the amount of $2,500, conditioned upon the
21 true and faithful compliance by the licensee with all of the
22 provisions of this Act. Such bond, or a reissue thereof, or a
23 substitute therefor, shall be kept in effect during the
24 entire period covered by the license. A separate application
25 for license shall be made, a separate annual license fee
26 paid, and a separate bond filed, for each place of business
27 at which a person who is required to procure a distributor's
28 license under this Section proposes to engage in business as
29 a distributor in Illinois under this Act.
30 The following are ineligible to receive a distributor's
31 license under this Act:
32 (1) a person who is not of good character and reputation
33 in the community in which he resides;
34 (2) a person who has been convicted of a felony under
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1 any Federal or State law, if the Department, after
2 investigation and a hearing, if requested by the applicant,
3 determines that such person has not been sufficiently
4 rehabilitated to warrant the public trust;
5 (3) a corporation, if any officer, manager or director
6 thereof, or any stockholder or stockholders owning in the
7 aggregate more than 5% of the stock of such corporation,
8 would not be eligible to receive a license under this Act for
9 any reason.
10 The Department, upon receipt of an application, license
11 fee and bond in proper form, from a person who is eligible to
12 receive a distributor's license under this Act, shall issue
13 to such applicant a license in form as prescribed by the
14 Department, which license shall permit the applicant to which
15 it is issued to engage in business as a distributor at the
16 place shown in his application. All licenses issued by the
17 Department under this Act shall be valid for not to exceed
18 one year after issuance unless sooner revoked, canceled or
19 suspended as provided in this Act. No license issued under
20 this Act is transferable or assignable. Such license shall be
21 conspicuously displayed in the place of business conducted by
22 the licensee in Illinois under such license.
23 Any person aggrieved by any decision of the Department
24 under this Section may, within 20 days after notice of the
25 decision, protest and request a hearing. Upon receiving a
26 request for a hearing, the Department shall give notice to
27 the person requesting the hearing of the time and place fixed
28 for the hearing and shall hold a hearing in conformity with
29 the provisions of this Act and then issue its final
30 administrative decision in the matter to that person. In the
31 absence of a protest and request for a hearing within 20
32 days, the Department's decision shall become final without
33 any further determination being made or notice given.
34 (Source: P.A. 78-255.)
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1 (35 ILCS 130/6) (from Ch. 120, par. 453.6)
2 Sec. 6. Revocation, cancellation, or suspension of
3 license. The Department may, after notice and hearing as
4 provided for by this Act, revoke, cancel or suspend the
5 license of any distributor for the violation of any provision
6 of this Act, or for noncompliance with any provision herein
7 contained, or for any noncompliance with any lawful rule or
8 regulation promulgated by the Department under Section 8 of
9 this Act, or because the licensee is determined to be
10 ineligible for a distributor's license for any one or more of
11 the reasons provided for in Section 4 of this Act. However,
12 no such license shall be revoked, cancelled or suspended,
13 except after a hearing by the Department with notice to the
14 distributor, as aforesaid, and affording such distributor a
15 reasonable opportunity to appear and defend, and any
16 distributor aggrieved by any decision of the Department with
17 respect thereto may have the determination of the Department
18 judicially reviewed, as herein provided. Notice of such
19 hearing shall be in writing and shall contain a statement of
20 the charges preferred against the distributor.
21 Any distributor aggrieved by any decision of the
22 Department under this Section may, within 20 days after
23 notice of the decision, protest and request a hearing. Upon
24 receiving a request for a hearing, the Department shall give
25 notice in writing to the distributor requesting the hearing
26 that contains a statement of the charges preferred against
27 the distributor and that states the time and place fixed for
28 the hearing. The Department shall hold the hearing in
29 conformity with the provisions of this Act and then issue its
30 final administrative decision in the matter to the
31 distributor. In the absence of a protest and request for a
32 hearing within 20 days, the Department's decision shall
33 become final without any further determination being made or
34 notice given.
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1 No license so revoked, as aforesaid, shall be reissued to
2 any such distributor within a period of 6 months after the
3 date of the final determination of such revocation. No such
4 license shall be reissued at all so long as the person who
5 would receive the license is ineligible to receive a
6 distributor's license under this Act for any one or more of
7 the reasons provided for in Section 4 of this Act.
8 The Department upon complaint filed in the circuit court
9 may by injunction restrain any person who fails, or refuses,
10 to comply with any of the provisions of this Act from acting
11 as a distributor of cigarettes in this State.
12 (Source: P.A. 79-1365; 79-1366.)
13 Section 35. The Cigarette Use Tax Act is amended by
14 changing Sections 4 and 6 as follows:
15 (35 ILCS 135/4) (from Ch. 120, par. 453.34)
16 Sec. 4. Distributor's license. A distributor maintaining
17 a place of business in this State, if required to procure a
18 license or allowed to obtain a permit as a distributor under
19 the Cigarette Tax Act, need not obtain an additional license
20 or permit under this Act, but shall be deemed to be
21 sufficiently licensed or registered by virtue of his being
22 licensed or registered under the Cigarette Tax Act.
23 Every distributor maintaining a place of business in this
24 State, if not required to procure a license or allowed to
25 obtain a permit as a distributor under the Cigarette Tax Act,
26 shall make a verified application to the Department (upon a
27 form prescribed and furnished by the Department) for a
28 license to act as a distributor under this Act. In completing
29 such application, the applicant shall furnish such
30 information as the Department may reasonably require.
31 The annual license fee payable to the Department for each
32 distributor's license shall be $250. The purpose of such
SB1453 Enrolled -71- LRB9111084SMdv
1 annual license fee is to defray the cost, to the Department,
2 of coding, serializing or coding and serializing cigarette
3 tax stamps. The applicant for license shall pay such fee to
4 the Department at the time of submitting the application for
5 license to the Department.
6 Such applicant shall file, with his application, a joint
7 and several bond. Such bond shall be executed to the
8 Department of Revenue, with good and sufficient surety or
9 sureties residing or licensed to do business within the State
10 of Illinois, in the amount of $2,500, conditioned upon the
11 true and faithful compliance by the licensee with all of the
12 provisions of this Act. Such bond, or a reissue thereof, or a
13 substitute therefor, shall be kept in effect during the
14 entire period covered by the license. A separate application
15 for license shall be made, a separate annual license fee
16 paid, and a separate bond filed, for each place of business
17 at or from which the applicant proposes to act as a
18 distributor under this Act and for which the applicant is not
19 required to procure a license or allowed to obtain a permit
20 as a distributor under the Cigarette Tax Act.
21 The following are ineligible to receive a distributor's
22 license under this Act:
23 (1) a person who is not of good character and reputation
24 in the community in which he resides;
25 (2) a person who has been convicted of a felony under
26 any Federal or State law, if the Department, after
27 investigation and a hearing, if requested by the applicant,
28 determines that such person has not been sufficiently
29 rehabilitated to warrant the public trust;
30 (3) a corporation, if any officer, manager or director
31 thereof, or any stockholder or stockholders owning in the
32 aggregate more than 5% of the stock of such corporation,
33 would not be eligible to receive a license hereunder for any
34 reason.
SB1453 Enrolled -72- LRB9111084SMdv
1 Upon approval of such application and bond and payment of
2 the required annual license fee, the Department shall issue a
3 license to the applicant. Such license shall permit the
4 applicant to engage in business as a distributor at or from
5 the place shown in his application. All licenses issued by
6 the Department under this Act shall be valid for not to
7 exceed one year after issuance unless sooner revoked,
8 canceled or suspended as in this Act provided. No license
9 issued under this Act is transferable or assignable. Such
10 license shall be conspicuously displayed at the place of
11 business for which it is issued.
12 Any person aggrieved by any decision of the Department
13 under this Section may, within 20 days after notice of the
14 decision, protest and request a hearing. Upon receiving a
15 request for a hearing, the Department shall give notice to
16 the person requesting the hearing of the time and place fixed
17 for the hearing and shall hold a hearing in conformity with
18 the provisions of this Act and then issue its final
19 administrative decision in the matter to that person. In the
20 absence of a protest and request for a hearing within 20
21 days, the Department's decision shall become final without
22 any further determination being made or notice given.
23 (Source: P.A. 78-255.)
24 (35 ILCS 135/6) (from Ch. 120, par. 453.36)
25 Sec. 6. Revocation, cancellation, or suspension of
26 license. The Department may, after notice and hearing as
27 provided for by this Act, revoke, cancel or suspend the
28 license of any distributor for the violation of any provision
29 of this Act, or for non-compliance with any provision herein
30 contained, or for any non-compliance with any lawful rule or
31 regulation promulgated by the Department under Section 21 of
32 this Act, or because the licensee is determined to be
33 ineligible for a distributor's license for any one or more of
SB1453 Enrolled -73- LRB9111084SMdv
1 the reasons provided for in Section 4 of this Act. However,
2 no such license shall be revoked, canceled or suspended,
3 except after a hearing by the Department with notice to the
4 distributor, as aforesaid, and affording such distributor a
5 reasonable opportunity to appear and defend, and any
6 distributor aggrieved by any decision of the Department with
7 respect thereto may have the determination of the Department
8 judicially reviewed, as herein provided. Notice of such
9 hearing shall be in writing and shall contain a statement of
10 the charges preferred against the distributor.
11 Any distributor aggrieved by any decision of the
12 Department under this Section may, within 20 days after
13 notice of the decision, protest and request a hearing. Upon
14 receiving a request for a hearing, the Department shall give
15 notice in writing to the distributor requesting the hearing
16 that contains a statement of the charges preferred against
17 the distributor and that states the time and place fixed for
18 the hearing. The Department shall hold the hearing in
19 conformity with the provisions of this Act and then issue its
20 final administrative decision in the matter to the
21 distributor. In the absence of a protest and request for a
22 hearing within 20 days, the Department's decision shall
23 become final without any further determination being made or
24 notice given.
25 No license so revoked, shall be reissued to any such
26 distributor within a period of 6 months after the date of the
27 final determination of such revocation. No such license
28 shall be reissued at all so long as the person who would
29 receive the license is ineligible to receive a distributor's
30 license under this Act for any one or more of the reasons
31 provided for in Section 4 of this Act.
32 The Department upon complaint filed in the circuit court
33 may by injunction restrain any person who fails, or refuses,
34 to comply with this Act from acting as a distributor of
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1 cigarettes in this State.
2 (Source: P.A. 79-1365; 79-1366.)
3 Section 40. The Public Utilities Act is amended by
4 changing Section 8-403.1 as follows:
5 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
6 Sec. 8-403.1. Electricity purchased from qualified solid
7 waste energy facility; tax credit; distributions for economic
8 development.
9 (a) It is hereby declared to be the policy of this State
10 to encourage the development of alternate energy production
11 facilities in order to conserve our energy resources and to
12 provide for their most efficient use.
13 (b) For the purpose of this Section and Section 9-215.1,
14 "qualified solid waste energy facility" means a facility
15 determined by the Illinois Commerce Commission to qualify as
16 such under the Local Solid Waste Disposal Act, to use methane
17 gas generated from landfills as its primary fuel, and to
18 possess characteristics that would enable it to qualify as a
19 cogeneration or small power production facility under federal
20 law.
21 (c) In furtherance of the policy declared in this
22 Section, the Illinois Commerce Commission shall require
23 electric utilities to enter into long-term contracts to
24 purchase electricity from qualified solid waste energy
25 facilities located in the electric utility's service area,
26 for a period beginning on the date that the facility begins
27 generating electricity and having a duration of not less than
28 10 years in the case of facilities fueled by
29 landfill-generated methane, or 20 years in the case of
30 facilities fueled by methane generated from a landfill owned
31 by a forest preserve district. The purchase rate contained
32 in such contracts shall be equal to the average amount per
SB1453 Enrolled -75- LRB9111084SMdv
1 kilowatt-hour paid from time to time by the unit or units of
2 local government in which the electricity generating
3 facilities are located, excluding amounts paid for street
4 lighting and pumping service.
5 (d) Whenever a public utility is required to purchase
6 electricity pursuant to subsection (c) above, it shall be
7 entitled to credits in respect of its obligations to remit to
8 the State taxes it has collected under the Electricity Excise
9 Tax Law equal to the amounts, if any, by which payments for
10 such electricity exceed (i) the then current rate at which
11 the utility must purchase the output of qualified facilities
12 pursuant to the federal Public Utility Regulatory Policies
13 Act of 1978, less (ii) any costs, expenses, losses, damages
14 or other amounts incurred by the utility, or for which it
15 becomes liable, arising out of its failure to obtain such
16 electricity from such other sources. The amount of any such
17 credit shall, in the first instance, be determined by the
18 utility, which shall make a monthly report of such credits to
19 the Illinois Commerce Commission and, on its monthly tax
20 return, to the Illinois Department of Revenue. Under no
21 circumstances shall a utility be required to purchase
22 electricity from a qualified solid waste energy facility at
23 the rate prescribed in subsection (c) of this Section if such
24 purchase would result in estimated tax credits that exceed,
25 on a monthly basis, the utility's estimated obligation to
26 remit to the State taxes it has collected under the
27 Electricity Excise Tax Law. The owner or operator shall
28 negotiate facility operating conditions with the purchasing
29 utility in accordance with that utility's posted standard
30 terms and conditions for small power producers. If the
31 Department of Revenue disputes the amount of any such credit,
32 such dispute shall be decided by the Illinois Commerce
33 Commission. Whenever a qualified solid waste energy facility
34 has paid or otherwise satisfied in full the capital costs or
SB1453 Enrolled -76- LRB9111084SMdv
1 indebtedness incurred in developing and implementing the
2 qualified facility, the qualified facility shall reimburse
3 the Public Utility Fund and the General Revenue Fund in the
4 State treasury for the actual reduction in payments to those
5 Funds caused by this subsection (d) in a manner to be
6 determined by the Illinois Commerce Commission and based on
7 the manner in which revenues for those Funds were reduced.
8 (e) The Illinois Commerce Commission shall not require
9 an electric utility to purchase electricity from any
10 qualified solid waste energy facility which is owned or
11 operated by an entity that is primarily engaged in the
12 business of producing or selling electricity, gas, or useful
13 thermal energy from a source other than one or more qualified
14 solid waste energy facilities.
15 (f) This Section does not require an electric utility to
16 construct additional facilities unless those facilities are
17 paid for by the owner or operator of the affected qualified
18 solid waste energy facility.
19 (g) The Illinois Commerce Commission shall require that:
20 (1) electric utilities use the electricity purchased from a
21 qualified solid waste energy facility to displace electricity
22 generated from nuclear power or coal mined and purchased
23 outside the boundaries of the State of Illinois before
24 displacing electricity generated from coal mined and
25 purchased within the State of Illinois, to the extent
26 possible, and (2) electric utilities report annually to the
27 Commission on the extent of such displacements.
28 (h) Nothing in this Section is intended to cause an
29 electric utility that is required to purchase power hereunder
30 to incur any economic loss as a result of its purchase. All
31 amounts paid for power which a utility is required to
32 purchase pursuant to subparagraph (c) shall be deemed to be
33 costs prudently incurred for purposes of computing charges
34 under rates authorized by Section 9-220 of this Act. Tax
SB1453 Enrolled -77- LRB9111084SMdv
1 credits provided for herein shall be reflected in charges
2 made pursuant to rates so authorized to the extent such
3 credits are based upon a cost which is also reflected in such
4 charges.
5 (i) Beginning in February 1999 and through January 2009,
6 each qualified solid waste energy facility that sells
7 electricity to an electric utility at the purchase rate
8 described in subsection (c) shall file with the Department of
9 Revenue State Treasurer on or before the 15th of each month a
10 form, prescribed by the Department of Revenue State
11 Treasurer, that states the number of kilowatt hours of
12 electricity for which payment was received at that purchase
13 rate from electric utilities in Illinois during the
14 immediately preceding month. This form shall be accompanied
15 by a payment from the qualified solid waste energy facility
16 in an amount equal to six-tenths of a mill ($0.0006) per
17 kilowatt hour of electricity stated on the form. Payments
18 received by the Department of Revenue State Treasurer shall
19 be deposited into the Municipal Economic Development Fund, a
20 trust fund created outside the State treasury. The State
21 Treasurer may invest the moneys in the Fund in any investment
22 authorized by the Public Funds Investment Act, and investment
23 income shall be deposited into and become part of the Fund.
24 Moneys in the Fund shall be used by the State Treasurer as
25 provided in subsection (j). The obligation of a qualified
26 solid waste energy facility to make payments into the
27 Municipal Economic Development Fund shall terminate upon
28 either: (1) expiration or termination of a facility's
29 contract to sell electricity to an electric utility at the
30 purchase rate described in subsection (c); or (2) entry of an
31 enforceable, final, and non-appealable order by a court of
32 competent jurisdiction that Public Act 89-448 is invalid.
33 Payments by a qualified solid waste energy facility into the
34 Municipal Economic Development Fund do not relieve the
SB1453 Enrolled -78- LRB9111084SMdv
1 qualified solid waste energy facility of its obligation to
2 reimburse the Public Utility Fund and the General Revenue
3 Fund for the actual reduction in payments to those Funds as a
4 result of credits received by electric utilities under
5 subsection (d).
6 (j) The State Treasurer, without appropriation, must
7 make distributions immediately after January 15, April 15,
8 July 15, and October 15 of each year, up to maximum aggregate
9 distributions of $500,000 for the distributions made in the 4
10 quarters beginning with the April distribution and ending
11 with the January distribution, from the Municipal Economic
12 Development Fund to each city, village, or incorporated town
13 that has within its boundaries an incinerator that: (1) uses
14 municipal waste as its primary fuel to generate electricity;
15 (2) was determined by the Illinois Commerce Commission to
16 qualify as a qualified solid waste energy facility prior to
17 the effective date of Public Act 89-448; and (3) commenced
18 operation prior to January 1, 1998. Total distributions in
19 the aggregate to all qualified cities, villages, and
20 incorporated towns in the 4 quarters beginning with the April
21 distribution and ending with the January distribution shall
22 not exceed $500,000. The amount of each distribution shall
23 be determined pro rata based on the population of the city,
24 village, or incorporated town compared to the total
25 population of all cities, villages, and incorporated towns
26 eligible to receive a distribution. Distributions received
27 by a city, village, or incorporated town must be held in a
28 separate account and may be used only to promote and enhance
29 industrial, commercial, residential, service, transportation,
30 and recreational activities and facilities within its
31 boundaries, thereby enhancing the employment opportunities,
32 public health and general welfare, and economic development
33 within the community, including administrative expenditures
34 exclusively to further these activities. These funds,
SB1453 Enrolled -79- LRB9111084SMdv
1 however, shall not be used by the city, village, or
2 incorporated town, directly or indirectly, to purchase,
3 lease, operate, or in any way subsidize the operation of any
4 incinerator, and these funds shall not be paid, directly or
5 indirectly, by the city, village, or incorporated town to the
6 owner, operator, lessee, shareholder, or bondholder of any
7 incinerator. Moreover, these funds shall not be used to pay
8 attorneys fees in any litigation relating to the validity of
9 Public Act 89-448. Nothing in this Section prevents a city,
10 village, or incorporated town from using other corporate
11 funds for any legitimate purpose. For purposes of this
12 subsection, the term "municipal waste" has the meaning
13 ascribed to it in Section 3.21 of the Environmental
14 Protection Act.
15 (k) If maximum aggregate distributions of $500,000 under
16 subsection (j) have been made after the January distribution
17 from the Municipal Economic Development Fund, then the
18 balance in the Fund shall be refunded to the qualified solid
19 waste energy facilities that made payments that were
20 deposited into the Fund during the previous 12-month period.
21 The refunds shall be prorated based upon the facility's
22 payments in relation to total payments for that 12-month
23 period.
24 (l) Beginning January 1, 2000, and each January 1
25 thereafter, each city, village, or incorporated town that
26 received distributions from the Municipal Economic
27 Development Fund, continued to hold any of those
28 distributions, or made expenditures from those distributions
29 during the immediately preceding year shall submit to a
30 financial and compliance and program audit of those
31 distributions performed by the Auditor General at no cost to
32 the city, village, or incorporated town that received the
33 distributions. The audit should be completed by June 30 or
34 as soon thereafter as possible. The audit shall be submitted
SB1453 Enrolled -80- LRB9111084SMdv
1 to the State Treasurer and those officers enumerated in
2 Section 3-14 of the Illinois State Auditing Act. If the
3 Auditor General finds that distributions have been expended
4 in violation of this Section, the Auditor General shall refer
5 the matter to the Attorney General. The Attorney General may
6 recover, in a civil action, 3 times the amount of any
7 distributions illegally expended. For purposes of this
8 subsection, the terms "financial audit," "compliance audit",
9 and "program audit" have the meanings ascribed to them in
10 Sections 1-13 and 1-15 of the Illinois State Auditing Act.
11 (Source: P.A. 89-448, eff. 3-14-96; 90-813, eff. 1-29-99.)
12 Section 99. Effective date. This Act takes effect
13 January 1, 2001, except that this Section and Section 5 take
14 effect upon becoming law.
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