Public Act 096-1388
 
SB0459 EnrolledLRB096 06500 RCE 16584 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Income Tax Act is amended by adding
Section 502.1 as follows:
 
    (35 ILCS 5/502.1 new)
    Sec. 502.1. Use tax. Beginning with taxable years ending on
or after December 31, 2010, individual purchasers with an
annual use tax liability that does not exceed $600 may, in lieu
of the filing and payment requirements of Section 10 of the Use
Tax Act, file and pay in compliance with this Section.
    Beginning with taxable years ending on or after December
31, 2010, the Department shall print on its standard individual
income tax form a provision indicating that if the taxpayer's
annual individual use tax liability does not exceed $600, he or
she may report and pay individual use tax liability at the same
time as his or her individual income tax liability. If the
taxpayer elects to report and pay his or her individual use tax
liability at the same time as his or her standard individual
income tax liability in accordance with this Section, then the
use tax shown due on the return may be (i) treated as being due
at the same time as the income tax obligation, (ii) assessed,
collected, and deposited in the same manner as income taxes,
and (iii) treated as an income tax liability for all purposes.
    The individual income tax return instructions shall
include information explaining the tax imposed under the Use
Tax Act and informing taxpayers how to report and pay their use
tax obligations, including specific information on how to
report and pay individual use tax at the same time as the
individual income tax return is filed.
    This Section shall not apply to any amended return.
 
    Section 10. The Use Tax Act is amended by changing Section
10 and by adding Section 10.5 as follows:
 
    (35 ILCS 105/10)  (from Ch. 120, par. 439.10)
    Sec. 10. Except as to motor vehicles, aircraft, watercraft,
and trailers, and except as to cigarettes as defined in the
Cigarette Use Tax Act, when tangible personal property is
purchased from a retailer for use in this State by a purchaser
who did not pay the tax imposed by this Act to the retailer,
and who does not file returns with the Department as a retailer
under Section 9 of this Act, such purchaser (by the last day of
the month following the calendar month in which such purchaser
makes any payment upon the selling price of such property)
shall, except as otherwise provided in this Section, file a
return with the Department and pay the tax upon that portion of
the selling price so paid by the purchaser during the preceding
calendar month. When tangible personal property, including but
not limited to motor vehicles and aircraft, is purchased by a
lessor, under a lease for one year or longer, executed or in
effect at the time of purchase to an interstate carrier for
hire, who did not pay the tax imposed by this Act to the
retailer, such lessor (by the last day of the month following
the calendar month in which such property reverts to the use of
such lessor) shall file a return with the Department and pay
the tax upon the fair market value of such property on the date
of such reversion. However, in determining the fair market
value at the time of reversion, the fair market value of such
property shall not exceed the original purchase price of the
property that was paid by the lessor at the time of purchase.
Such return shall be filed on a form prescribed by the
Department and shall contain such information as the Department
may reasonably require. Such return and payment from the
purchaser shall be submitted to the Department sooner than the
last day of the month after the month in which the purchase is
made to the extent that that may be necessary in order to
secure the title to a motor vehicle or the certificate of
registration for an aircraft. However, except as to motor
vehicles and aircraft, and except as to cigarettes as defined
in the Cigarette Use Tax Act, if the purchaser's annual use tax
liability does not exceed $600, the purchaser may file the
return on an annual basis on or before April 15th of the year
following the year use tax liability was incurred. Individual
purchasers with an annual use tax liability that does not
exceed $600 may, in lieu of the filing and payment requirements
in this Section, file and pay in compliance with Section 502.1
of the Illinois Income Tax Act.
    If cigarettes, as defined in the Cigarette Use Tax Act, are
purchased from a retailer for use in this State by a purchaser
who did not pay the tax imposed by this Act to the retailer,
and who does not file returns with the Department as a retailer
under Section 9 of this Act, such purchaser must, within 30
days after acquiring the cigarettes, file a return with the
Department and pay the tax upon that portion of the selling
price so paid by the purchaser for the cigarettes.
    In addition with respect to motor vehicles, aircraft,
watercraft, and trailers, a purchaser of such tangible personal
property for use in this State, who purchases such tangible
personal property from an out-of-state retailer, shall file
with the Department, upon a form to be prescribed and supplied
by the Department, a return for each such item of tangible
personal property purchased, except that if, in the same
transaction, (i) a purchaser of motor vehicles, aircraft,
watercraft, or trailers who is a retailer of motor vehicles,
aircraft, watercraft, or trailers purchases more than one motor
vehicle, aircraft, watercraft, or trailer for the purpose of
resale or (ii) a purchaser of motor vehicles, aircraft,
watercraft, or trailers purchases more than one motor vehicle,
aircraft, watercraft, or trailer for use as qualifying rolling
stock as provided in Section 3-55 of this Act, then the
purchaser may report the purchase of all motor vehicles,
aircraft, watercraft, or trailers involved in that transaction
to the Department on a single return prescribed by the
Department. Such return in the case of motor vehicles and
aircraft must show the name and address of the seller, the
name, address of purchaser, the amount of the selling price
including the amount allowed by the retailer for traded in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the purchaser with respect to such transaction;
the amount of tax collected from the purchaser by the retailer
on such transaction (or satisfactory evidence that such tax is
not due in that particular instance if that is claimed to be
the fact); the place and date of the sale, a sufficient
identification of the property sold, and such other information
as the Department may reasonably require.
    Such return shall be filed not later than 30 days after
such motor vehicle or aircraft is brought into this State for
use.
    For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
    The return and tax remittance or proof of exemption from
the tax that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
    With each such return, the purchaser shall remit the proper
amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department
or its agents, whereupon the Department shall issue, in the
purchaser's name, a tax receipt (or a certificate of exemption
if the Department is satisfied that the particular sale is tax
exempt) which such purchaser may submit to the agency with
which, or State officer with whom, he must title or register
the tangible personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of
title or registration to such tangible personal property.
    When a purchaser pays a tax imposed by this Act directly to
the Department, the Department (upon request therefor from such
purchaser) shall issue an appropriate receipt to such purchaser
showing that he has paid such tax to the Department. Such
receipt shall be sufficient to relieve the purchaser from
further liability for the tax to which such receipt may refer.
    A user who is liable to pay use tax directly to the
Department only occasionally and not on a frequently recurring
basis, and who is not required to file returns with the
Department as a retailer under Section 9 of this Act, or under
the "Retailers' Occupation Tax Act", or as a registrant with
the Department under the "Service Occupation Tax Act" or the
"Service Use Tax Act", need not register with the Department.
However, if such a user has a frequently recurring direct use
tax liability to pay to the Department, such user shall be
required to register with the Department on forms prescribed by
the Department and to obtain and display a certificate of
registration from the Department. In that event, all of the
provisions of Section 9 of this Act concerning the filing of
regular monthly, quarterly or annual tax returns and all of the
provisions of Section 2a of the "Retailers' Occupation Tax Act"
concerning the requirements for registrants to post bond or
other security with the Department, as the provisions of such
sections now exist or may hereafter be amended, shall apply to
such users to the same extent as if such provisions were
included herein.
(Source: P.A. 96-520, eff. 8-14-09; revised 10-30-09.)
 
    (35 ILCS 105/10.5 new)
    Sec. 10.5. Individual use tax amnesty. The Department shall
establish an amnesty program for all individual taxpayers owing
any tax imposed under this Act for their purchases of tangible
personal property from a retailer for use in this State
(eligible taxes). The amnesty program shall be for a period
from January 1, 2011 through October 15, 2011. The amnesty
program shall provide that, upon payment by an individual
taxpayer of all eligible taxes due from that taxpayer under
this Act for any taxable period ending after June 30, 2004 and
prior to January 1, 2011, the Department shall abate and not
seek to collect any interest or penalties that may be
applicable and the Department shall not seek civil or criminal
prosecution for any taxpayer for these taxes for the period of
time for which amnesty has been granted to the taxpayer.
Failure to pay all eligible taxes due to the State for a
taxable period shall invalidate any amnesty granted under this
Section. Amnesty shall be granted only if all amnesty
conditions are satisfied by the taxpayer.
    Amnesty shall not be granted to business taxpayers. Amnesty
shall not be granted to taxpayers who are a party to any
criminal investigation or to any civil or criminal litigation
that is pending in any circuit court or appellate court or the
Supreme Court of this State for nonpayment, delinquency, or
fraud in relation to eligible taxes under this Act. Amnesty
shall not be granted to any taxpayer who is under audit for
eligible taxes or who is contacted in writing by the Department
concerning eligible taxes prior to the taxpayer reporting and
paying the eligible taxes.
    Voluntary payments made under this Section shall be made by
cash, check, guaranteed remittance, or ACH debit.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.