HB4234 93RD GENERAL ASSEMBLY

LRB093 16236 SJM 41870 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4234

Introduced 1/28/2004, by Robert F. Flider

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-85
35 ILCS 110/3-70
35 ILCS 115/9	from Ch. 120, par. 439.109
35 ILCS 120/3	from Ch. 120, par. 442

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reinstates the manufacturer's purchase credit for a 2-year period beginning on July 1, 2004. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning taxes.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

4		Section 5. The Use Tax Act is amended by changing Section
5		3-85 as follows:
6		(35 ILCS 105/3-85)
7		Sec. 3-85. Manufacturer's Purchase Credit. For purchases
8		of machinery and equipment made on and after July 1, 2004 and
9		through June 30, 2006 January 1, 1995 and through June 30,
10		2003, a purchaser of manufacturing machinery and equipment that
11		qualifies for the exemption provided by paragraph (18) of
12		Section 3-5 of this Act earns a credit in an amount equal to a
13		fixed percentage of the tax which would have been incurred
14		under this Act on those purchases. For purchases of graphic
15		arts machinery and equipment made on or after July 1, 2004 and
16		through June 30, 2006 1996 and through June 30, 2003, a
17		purchaser of graphic arts machinery and equipment that
18		qualifies for the exemption provided by paragraph (6) of
19		Section 3-5 of this Act earns a credit in an amount equal to a
20		fixed percentage of the tax that would have been incurred under
21		this Act on those purchases. The credit earned for purchases of
22		manufacturing machinery and equipment or graphic arts
23		machinery and equipment shall be referred to as the
24		Manufacturer's Purchase Credit. A graphic arts producer is a
25		person engaged in graphic arts production as defined in Section
26		2-30 of the Retailers' Occupation Tax Act. Beginning July 1,
27		1996, all references in this Section to manufacturers or
28		manufacturing shall also be deemed to refer to graphic arts
29		producers or graphic arts production.
30		The amount of credit shall be a percentage of the tax that
31		would have been incurred on the purchase of manufacturing
32		machinery and equipment or graphic arts machinery and equipment

1		if the exemptions provided by paragraph (6) or paragraph (18)
2		of Section 3-5 of this Act had not been applicable. The
3		percentage shall be as follows:
4		(1) 15% for purchases made on or before June 30, 1995.
5		(2) 25% for purchases made after June 30, 1995, and on
6		or before June 30, 1996.
7		(3) 40% for purchases made after June 30, 1996, and on
8		or before June 30, 1997.
9		(4) 50% for purchases made on or after July 1, 1997.
10		A purchaser of production related tangible personal
11		property desiring to use the Manufacturer's Purchase Credit
12		shall certify to the seller prior to October 1, 2006 2003 that
13		the purchaser is satisfying all or part of the liability under
14		the Use Tax Act or the Service Use Tax Act that is due on the
15		purchase of the production related tangible personal property
16		by use of Manufacturer's Purchase Credit. The Manufacturer's
17		Purchase Credit certification must be dated and shall include
18		the name and address of the purchaser, the purchaser's
19		registration number, if registered, the credit being applied,
20		and a statement that the State Use Tax or Service Use Tax
21		liability is being satisfied with the manufacturer's or graphic
22		arts producer's accumulated purchase credit. Certification may
23		be incorporated into the manufacturer's or graphic arts
24		producer's purchase order. Manufacturer's Purchase Credit
25		certification provided by the manufacturer or graphic arts
26		producer prior to October 1, 2006 2003 may be used to satisfy
27		the retailer's or serviceman's liability under the Retailers'
28		Occupation Tax Act or Service Occupation Tax Act for the credit
29		claimed, not to exceed 6.25% of the receipts subject to tax
30		from a qualifying purchase, but only if the retailer or
31		serviceman reports the Manufacturer's Purchase Credit claimed
32		as required by the Department. A Manufacturer's Purchase Credit
33		reported on any original or amended return filed under this Act
34		after October 20, 2006 2003 shall be disallowed. The
35		Manufacturer's Purchase Credit earned by purchase of exempt
36		manufacturing machinery and equipment or graphic arts

1		machinery and equipment is a non-transferable credit. A
2		manufacturer or graphic arts producer that enters into a
3		contract involving the installation of tangible personal
4		property into real estate within a manufacturing or graphic
5		arts production facility may, prior to October 1, 2006 2003,
6		authorize a construction contractor to utilize credit
7		accumulated by the manufacturer or graphic arts producer to
8		purchase the tangible personal property. A manufacturer or
9		graphic arts producer intending to use accumulated credit to
10		purchase such tangible personal property shall execute a
11		written contract authorizing the contractor to utilize a
12		specified dollar amount of credit. The contractor shall
13		furnish, prior to October 1, 2006 2003, the supplier with the
14		manufacturer's or graphic arts producer's name, registration
15		or resale number, and a statement that a specific amount of the
16		Use Tax or Service Use Tax liability, not to exceed 6.25% of
17		the selling price, is being satisfied with the credit. The
18		manufacturer or graphic arts producer shall remain liable to
19		timely report all information required by the annual Report of
20		Manufacturer's Purchase Credit Used for all credit utilized by
21		a construction contractor.
22		The Manufacturer's Purchase Credit may be used to satisfy
23		liability under the Use Tax Act or the Service Use Tax Act due
24		on the purchase of production related tangible personal
25		property (including purchases by a manufacturer, by a graphic
26		arts producer, or by a lessor who rents or leases the use of
27		the property to a manufacturer or graphic arts producer) that
28		does not otherwise qualify for the manufacturing machinery and
29		equipment exemption or the graphic arts machinery and equipment
30		exemption. "Production related tangible personal property"
31		means (i) all tangible personal property used or consumed by
32		the purchaser in a manufacturing facility in which a
33		manufacturing process described in Section 2-45 of the
34		Retailers' Occupation Tax Act takes place, including tangible
35		personal property purchased for incorporation into real estate
36		within a manufacturing facility and including, but not limited

1		to, tangible personal property used or consumed in activities
2		such as preproduction material handling, receiving, quality
3		control, inventory control, storage, staging, and packaging
4		for shipping and transportation purposes; (ii) all tangible
5		personal property used or consumed by the purchaser in a
6		graphic arts facility in which graphic arts production as
7		described in Section 2-30 of the Retailers' Occupation Tax Act
8		takes place, including tangible personal property purchased
9		for incorporation into real estate within a graphic arts
10		facility and including, but not limited to, all tangible
11		personal property used or consumed in activities such as
12		graphic arts preliminary or pre-press production,
13		pre-production material handling, receiving, quality control,
14		inventory control, storage, staging, sorting, labeling,
15		mailing, tying, wrapping, and packaging; and (iii) all tangible
16		personal property used or consumed by the purchaser for
17		research and development. "Production related tangible
18		personal property" does not include (i) tangible personal
19		property used, within or without a manufacturing facility, in
20		sales, purchasing, accounting, fiscal management, marketing,
21		personnel recruitment or selection, or landscaping or (ii)
22		tangible personal property required to be titled or registered
23		with a department, agency, or unit of federal, state, or local
24		government. The Manufacturer's Purchase Credit may be used,
25		prior to October 1, 2006 2003, to satisfy the tax arising
26		either from the purchase of machinery and equipment on or after
27		January 1, 1995 for which the exemption provided by paragraph
28		(18) of Section 3-5 of this Act was erroneously claimed, or the
29		purchase of machinery and equipment on or after July 1, 1996
30		for which the exemption provided by paragraph (6) of Section
31		3-5 of this Act was erroneously claimed, but not in
32		satisfaction of penalty, if any, and interest for failure to
33		pay the tax when due. A purchaser of production related
34		tangible personal property who is required to pay Illinois Use
35		Tax or Service Use Tax on the purchase directly to the
36		Department may, prior to October 1, 2006 2003, utilize the

1		Manufacturer's Purchase Credit in satisfaction of the tax
2		arising from that purchase, but not in satisfaction of penalty
3		and interest. A purchaser who uses the Manufacturer's Purchase
4		Credit to purchase property which is later determined not to be
5		production related tangible personal property may be liable for
6		tax, penalty, and interest on the purchase of that property as
7		of the date of purchase but shall be entitled to use the
8		disallowed Manufacturer's Purchase Credit, so long as it has
9		not expired and is used prior to October 1, 2006 2003, on
10		qualifying purchases of production related tangible personal
11		property not previously subject to credit usage. The
12		Manufacturer's Purchase Credit earned by a manufacturer or
13		graphic arts producer expires the last day of the second
14		calendar year following the calendar year in which the credit
15		arose. No Manufacturer's Purchase Credit may be used after
16		September 30, 2006 2003 regardless of when that credit was
17		earned.
18		A purchaser earning Manufacturer's Purchase Credit shall
19		sign and file an annual Report of Manufacturer's Purchase
20		Credit Earned for each calendar year no later than the last day
21		of the sixth month following the calendar year in which a
22		Manufacturer's Purchase Credit is earned. A Report of
23		Manufacturer's Purchase Credit Earned shall be filed on forms
24		as prescribed or approved by the Department and shall state,
25		for each month of the calendar year: (i) the total purchase
26		price of all purchases of exempt manufacturing or graphic arts
27		machinery on which the credit was earned; (ii) the total State
28		Use Tax or Service Use Tax which would have been due on those
29		items; (iii) the percentage used to calculate the amount of
30		credit earned; (iv) the amount of credit earned; and (v) such
31		other information as the Department may reasonably require. A
32		purchaser earning Manufacturer's Purchase Credit shall
33		maintain records which identify, as to each purchase of
34		manufacturing or graphic arts machinery and equipment on which
35		the purchaser earned Manufacturer's Purchase Credit, the
36		vendor (including, if applicable, either the vendor's

1		registration number or Federal Employer Identification
2		Number), the purchase price, and the amount of Manufacturer's
3		Purchase Credit earned on each purchase.
4		A purchaser using Manufacturer's Purchase Credit shall
5		sign and file an annual Report of Manufacturer's Purchase
6		Credit Used for each calendar year no later than the last day
7		of the sixth month following the calendar year in which a
8		Manufacturer's Purchase Credit is used. A Report of
9		Manufacturer's Purchase Credit Used shall be filed on forms as
10		prescribed or approved by the Department and shall state, for
11		each month of the calendar year: (i) the total purchase price
12		of production related tangible personal property purchased
13		from Illinois suppliers; (ii) the total purchase price of
14		production related tangible personal property purchased from
15		out-of-state suppliers; (iii) the total amount of credit used
16		during such month; and (iv) such other information as the
17		Department may reasonably require. A purchaser using
18		Manufacturer's Purchase Credit shall maintain records that
19		identify, as to each purchase of production related tangible
20		personal property on which the purchaser used Manufacturer's
21		Purchase Credit, the vendor (including, if applicable, either
22		the vendor's registration number or Federal Employer
23		Identification Number), the purchase price, and the amount of
24		Manufacturer's Purchase Credit used on each purchase.
25		No annual report shall be filed before May 1, 1996 or after
26		June 30, 2007 2004. A purchaser that fails to file an annual
27		Report of Manufacturer's Purchase Credit Earned or an annual
28		Report of Manufacturer's Purchase Credit Used by the last day
29		of the sixth month following the end of the calendar year shall
30		forfeit all Manufacturer's Purchase Credit for that calendar
31		year unless it establishes that its failure to file was due to
32		reasonable cause. Manufacturer's Purchase Credit reports may
33		be amended to report and claim credit on qualifying purchases
34		not previously reported at any time before the credit would
35		have expired, unless both the Department and the purchaser have
36		agreed to an extension of the statute of limitations for the

1		issuance of a notice of tax liability as provided in Section 4
2		of the Retailers' Occupation Tax Act. If the time for
3		assessment or refund has been extended, then amended reports
4		for a calendar year may be filed at any time prior to the date
5		to which the statute of limitations for the calendar year or
6		portion thereof has been extended. No Manufacturer's Purchase
7		Credit report filed with the Department for periods prior to
8		January 1, 1995 shall be approved. Manufacturer's Purchase
9		Credit claimed on an amended report may be used, until October
10		1, 2006 2003, to satisfy tax liability under the Use Tax Act or
11		the Service Use Tax Act (i) on qualifying purchases of
12		production related tangible personal property made after the
13		date the amended report is filed or (ii) assessed by the
14		Department on qualifying purchases of production related
15		tangible personal property made in the case of manufacturers on
16		or after January 1, 1995, or in the case of graphic arts
17		producers on or after July 1, 1996.
18		If the purchaser is not the manufacturer or a graphic arts
19		producer, but rents or leases the use of the property to a
20		manufacturer or graphic arts producer, the purchaser may earn,
21		report, and use Manufacturer's Purchase Credit in the same
22		manner as a manufacturer or graphic arts producer.
23		A purchaser shall not be entitled to any Manufacturer's
24		Purchase Credit for a purchase that is required to be reported
25		and is not timely reported as provided in this Section. A
26		purchaser remains liable for (i) any tax that was satisfied by
27		use of a Manufacturer's Purchase Credit, as of the date of
28		purchase, if that use is not timely reported as required in
29		this Section and (ii) for any applicable penalties and interest
30		for failing to pay the tax when due. No Manufacturer's Purchase
31		Credit may be used after September 30, 2006 2003 to satisfy any
32		tax liability imposed under this Act, including any audit
33		liability.
34		(Source: P.A. 93-24, eff. 6-20-03.)

35

Section 10. The Service Use Tax Act is amended by changing

1		Section 3-70 as follows:
2		(35 ILCS 110/3-70)
3		Sec. 3-70. Manufacturer's Purchase Credit. For purchases
4		of machinery and equipment made on and after July 1, 2004 and
5		through June 30, 2006 January 1, 1995 and through June 30,
6		2003, a purchaser of manufacturing machinery and equipment that
7		qualifies for the exemption provided by Section 2 of this Act
8		earns a credit in an amount equal to a fixed percentage of the
9		tax which would have been incurred under this Act on those
10		purchases. For purchases of graphic arts machinery and
11		equipment made on or after July 1, 2004 and through June 30,
12		2006 1996 and through June 30, 2003, a purchase of graphic arts
13		machinery and equipment that qualifies for the exemption
14		provided by paragraph (5) of Section 3-5 of this Act earns a
15		credit in an amount equal to a fixed percentage of the tax that
16		would have been incurred under this Act on those purchases. The
17		credit earned for the purchase of manufacturing machinery and
18		equipment and graphic arts machinery and equipment shall be
19		referred to as the Manufacturer's Purchase Credit. A graphic
20		arts producer is a person engaged in graphic arts production as
21		defined in Section 3-30 of the Service Occupation Tax Act.
22		Beginning July 1, 1996, all references in this Section to
23		manufacturers or manufacturing shall also refer to graphic arts
24		producers or graphic arts production.
25		The amount of credit shall be a percentage of the tax that
26		would have been incurred on the purchase of the manufacturing
27		machinery and equipment or graphic arts machinery and equipment
28		if the exemptions provided by Section 2 or paragraph (5) of
29		Section 3-5 of this Act had not been applicable.
30		All purchases prior to October 1, 2006 2003 of
31		manufacturing machinery and equipment and graphic arts
32		machinery and equipment that qualify for the exemptions
33		provided by paragraph (5) of Section 2 or paragraph (5) of
34		Section 3-5 of this Act qualify for the credit without regard
35		to whether the serviceman elected, or could have elected, under

1		paragraph (7) of Section 2 of this Act to exclude the
2		transaction from this Act. If the serviceman's billing to the
3		service customer separately states a selling price for the
4		exempt manufacturing machinery or equipment or the exempt
5		graphic arts machinery and equipment, the credit shall be
6		calculated, as otherwise provided herein, based on that selling
7		price. If the serviceman's billing does not separately state a
8		selling price for the exempt manufacturing machinery and
9		equipment or the exempt graphic arts machinery and equipment,
10		the credit shall be calculated, as otherwise provided herein,
11		based on 50% of the entire billing. If the serviceman contracts
12		to design, develop, and produce special order manufacturing
13		machinery and equipment or special order graphic arts machinery
14		and equipment, and the billing does not separately state a
15		selling price for such special order machinery and equipment,
16		the credit shall be calculated, as otherwise provided herein,
17		based on 50% of the entire billing. The provisions of this
18		paragraph are effective for purchases made on or after January
19		1, 1995.
20		The percentage shall be as follows:
21		(1) 15% for purchases made on or before June 30, 1995.
22		(2) 25% for purchases made after June 30, 1995, and on
23		or before June 30, 1996.
24		(3) 40% for purchases made after June 30, 1996, and on
25		or before June 30, 1997.
26		(4) 50% for purchases made on or after July 1, 1997.
27		A purchaser of production related tangible personal
28		property desiring to use the Manufacturer's Purchase Credit
29		shall certify to the seller prior to October 1, 2006 2003 that
30		the purchaser is satisfying all or part of the liability under
31		the Use Tax Act or the Service Use Tax Act that is due on the
32		purchase of the production related tangible personal property
33		by use of a Manufacturer's Purchase Credit. The Manufacturer's
34		Purchase Credit certification must be dated and shall include
35		the name and address of the purchaser, the purchaser's
36		registration number, if registered, the credit being applied,

1		and a statement that the State Use Tax or Service Use Tax
2		liability is being satisfied with the manufacturer's or graphic
3		arts producer's accumulated purchase credit. Certification may
4		be incorporated into the manufacturer's or graphic arts
5		producer's purchase order. Manufacturer's Purchase Credit
6		certification provided by the manufacturer or graphic arts
7		producer prior to October 1, 2006 2003 may be used to satisfy
8		the retailer's or serviceman's liability under the Retailers'
9		Occupation Tax Act or Service Occupation Tax Act for the credit
10		claimed, not to exceed 6.25% of the receipts subject to tax
11		from a qualifying purchase, but only if the retailer or
12		serviceman reports the Manufacturer's Purchase Credit claimed
13		as required by the Department. A Manufacturer's Purchase Credit
14		reported on any original or amended return filed under this Act
15		after October 20, 2006 2003 shall be disallowed. The
16		Manufacturer's Purchase Credit earned by purchase of exempt
17		manufacturing machinery and equipment or graphic arts
18		machinery and equipment is a non-transferable credit. A
19		manufacturer or graphic arts producer that enters into a
20		contract involving the installation of tangible personal
21		property into real estate within a manufacturing or graphic
22		arts production facility, prior to October 1, 2006 2003, may
23		authorize a construction contractor to utilize credit
24		accumulated by the manufacturer or graphic arts producer to
25		purchase the tangible personal property. A manufacturer or
26		graphic arts producer intending to use accumulated credit to
27		purchase such tangible personal property shall execute a
28		written contract authorizing the contractor to utilize a
29		specified dollar amount of credit. The contractor shall
30		furnish, prior to October 1, 2006 2003, the supplier with the
31		manufacturer's or graphic arts producer's name, registration
32		or resale number, and a statement that a specific amount of the
33		Use Tax or Service Use Tax liability, not to exceed 6.25% of
34		the selling price, is being satisfied with the credit. The
35		manufacturer or graphic arts producer shall remain liable to
36		timely report all information required by the annual Report of

1		Manufacturer's Purchase Credit Used for credit utilized by a
2		construction contractor.
3		The Manufacturer's Purchase Credit may be used to satisfy
4		liability under the Use Tax Act or the Service Use Tax Act due
5		on the purchase of production related tangible personal
6		property (including purchases by a manufacturer, by a graphic
7		arts producer, or a lessor who rents or leases the use of the
8		property to a manufacturer or graphic arts producer) that does
9		not otherwise qualify for the manufacturing machinery and
10		equipment exemption or the graphic arts machinery and equipment
11		exemption. "Production related tangible personal property"
12		means (i) all tangible personal property used or consumed by
13		the purchaser in a manufacturing facility in which a
14		manufacturing process described in Section 2-45 of the
15		Retailers' Occupation Tax Act takes place, including tangible
16		personal property purchased for incorporation into real estate
17		within a manufacturing facility and including, but not limited
18		to, tangible personal property used or consumed in activities
19		such as pre-production material handling, receiving, quality
20		control, inventory control, storage, staging, and packaging
21		for shipping and transportation purposes; (ii) all tangible
22		personal property used or consumed by the purchaser in a
23		graphic arts facility in which graphic arts production as
24		described in Section 2-30 of the Retailers' Occupation Tax Act
25		takes place, including tangible personal property purchased
26		for incorporation into real estate within a graphic arts
27		facility and including, but not limited to, all tangible
28		personal property used or consumed in activities such as
29		graphic arts preliminary or pre-press production,
30		pre-production material handling, receiving, quality control,
31		inventory control, storage, staging, sorting, labeling,
32		mailing, tying, wrapping, and packaging; and (iii) all tangible
33		personal property used or consumed by the purchaser for
34		research and development. "Production related tangible
35		personal property" does not include (i) tangible personal
36		property used, within or without a manufacturing or graphic

1		arts facility, in sales, purchasing, accounting, fiscal
2		management, marketing, personnel recruitment or selection, or
3		landscaping or (ii) tangible personal property required to be
4		titled or registered with a department, agency, or unit of
5		federal, state, or local government. The Manufacturer's
6		Purchase Credit may be used, prior to October 1, 2006 2003, to
7		satisfy the tax arising either from the purchase of machinery
8		and equipment on or after January 1, 1995 for which the
9		manufacturing machinery and equipment exemption provided by
10		Section 2 of this Act was erroneously claimed, or the purchase
11		of machinery and equipment on or after July 1, 1996 for which
12		the exemption provided by paragraph (5) of Section 3-5 of this
13		Act was erroneously claimed, but not in satisfaction of
14		penalty, if any, and interest for failure to pay the tax when
15		due. A purchaser of production related tangible personal
16		property who is required to pay Illinois Use Tax or Service Use
17		Tax on the purchase directly to the Department may, prior to
18		October 1, 2006 2003, utilize the Manufacturer's Purchase
19		Credit in satisfaction of the tax arising from that purchase,
20		but not in satisfaction of penalty and interest. A purchaser
21		who uses the Manufacturer's Purchase Credit to purchase
22		property which is later determined not to be production related
23		tangible personal property may be liable for tax, penalty, and
24		interest on the purchase of that property as of the date of
25		purchase but shall be entitled to use the disallowed
26		Manufacturer's Purchase Credit, so long as it has not expired
27		and is used prior to October 1, 2006 2003, on qualifying
28		purchases of production related tangible personal property not
29		previously subject to credit usage. The Manufacturer's
30		Purchase Credit earned by a manufacturer or graphic arts
31		producer expires the last day of the second calendar year
32		following the calendar year in which the credit arose. No
33		Manufacturer's Purchase Credit may be used after September 30,
34		2006 2003 regardless of when that credit was earned.
35		A purchaser earning Manufacturer's Purchase Credit shall
36		sign and file an annual Report of Manufacturer's Purchase

1		Credit Earned for each calendar year no later than the last day
2		of the sixth month following the calendar year in which a
3		Manufacturer's Purchase Credit is earned. A Report of
4		Manufacturer's Purchase Credit Earned shall be filed on forms
5		as prescribed or approved by the Department and shall state,
6		for each month of the calendar year: (i) the total purchase
7		price of all purchases of exempt manufacturing or graphic arts
8		machinery on which the credit was earned; (ii) the total State
9		Use Tax or Service Use Tax which would have been due on those
10		items; (iii) the percentage used to calculate the amount of
11		credit earned; (iv) the amount of credit earned; and (v) such
12		other information as the Department may reasonably require. A
13		purchaser earning Manufacturer's Purchase Credit shall
14		maintain records which identify, as to each purchase of
15		manufacturing or graphic arts machinery and equipment on which
16		the purchaser earned Manufacturer's Purchase Credit, the
17		vendor (including, if applicable, either the vendor's
18		registration number or Federal Employer Identification
19		Number), the purchase price, and the amount of Manufacturer's
20		Purchase Credit earned on each purchase.
21		A purchaser using Manufacturer's Purchase Credit shall
22		sign and file an annual Report of Manufacturer's Purchase
23		Credit Used for each calendar year no later than the last day
24		of the sixth month following the calendar year in which a
25		Manufacturer's Purchase Credit is used. A Report of
26		Manufacturer's Purchase Credit Used shall be filed on forms as
27		prescribed or approved by the Department and shall state, for
28		each month of the calendar year: (i) the total purchase price
29		of production related tangible personal property purchased
30		from Illinois suppliers; (ii) the total purchase price of
31		production related tangible personal property purchased from
32		out-of-state suppliers; (iii) the total amount of credit used
33		during such month; and (iv) such other information as the
34		Department may reasonably require. A purchaser using
35		Manufacturer's Purchase Credit shall maintain records that
36		identify, as to each purchase of production related tangible

1		personal property on which the purchaser used Manufacturer's
2		Purchase Credit, the vendor (including, if applicable, either
3		the vendor's registration number or Federal Employer
4		Identification Number), the purchase price, and the amount of
5		Manufacturer's Purchase Credit used on each purchase.
6		No annual report shall be filed before May 1, 1996 or after
7		June 30, 2007 2004. A purchaser that fails to file an annual
8		Report of Manufacturer's Purchase Credit Earned or an annual
9		Report of Manufacturer's Purchase Credit Used by the last day
10		of the sixth month following the end of the calendar year shall
11		forfeit all Manufacturer's Purchase Credit for that calendar
12		year unless it establishes that its failure to file was due to
13		reasonable cause. Manufacturer's Purchase Credit reports may
14		be amended to report and claim credit on qualifying purchases
15		not previously reported at any time before the credit would
16		have expired, unless both the Department and the purchaser have
17		agreed to an extension of the statute of limitations for the
18		issuance of a notice of tax liability as provided in Section 4
19		of the Retailers' Occupation Tax Act. If the time for
20		assessment or refund has been extended, then amended reports
21		for a calendar year may be filed at any time prior to the date
22		to which the statute of limitations for the calendar year or
23		portion thereof has been extended. No Manufacturer's Purchase
24		Credit report filed with the Department for periods prior to
25		January 1, 1995 shall be approved. Manufacturer's Purchase
26		Credit claimed on an amended report may be used, prior to
27		October 1, 2006 2003, to satisfy tax liability under the Use
28		Tax Act or the Service Use Tax Act (i) on qualifying purchases
29		of production related tangible personal property made after the
30		date the amended report is filed or (ii) assessed by the
31		Department on qualifying purchases of production related
32		tangible personal property made in the case of manufacturers on
33		or after January 1, 1995, or in the case of graphic arts
34		producers on or after July 1, 1996.
35		If the purchaser is not the manufacturer or a graphic arts
36		producer, but rents or leases the use of the property to a

1		manufacturer or a graphic arts producer, the purchaser may
2		earn, report, and use Manufacturer's Purchase Credit in the
3		same manner as a manufacturer or graphic arts producer.
4		A purchaser shall not be entitled to any Manufacturer's
5		Purchase Credit for a purchase that is required to be reported
6		and is not timely reported as provided in this Section. A
7		purchaser remains liable for (i) any tax that was satisfied by
8		use of a Manufacturer's Purchase Credit, as of the date of
9		purchase, if that use is not timely reported as required in
10		this Section and (ii) for any applicable penalties and interest
11		for failing to pay the tax when due. No Manufacturer's Purchase
12		Credit may be used after September 30, 2006 2003 to satisfy any
13		tax liability imposed under this Act, including any audit
14		liability.
15		(Source: P.A. 93-24, eff. 6-20-03.)

16		Section 15. The Service Occupation Tax Act is amended by
17		changing Section 9 as follows:
18		(35 ILCS 115/9) (from Ch. 120, par. 439.109)
19		Sec. 9. Each serviceman required or authorized to collect
20		the tax herein imposed shall pay to the Department the amount
21		of such tax at the time when he is required to file his return
22		for the period during which such tax was collectible, less a
23		discount of 2.1% prior to January 1, 1990, and 1.75% on and
24		after January 1, 1990, or $5 per calendar year, whichever is
25		greater, which is allowed to reimburse the serviceman for
26		expenses incurred in collecting the tax, keeping records,
27		preparing and filing returns, remitting the tax and supplying
28		data to the Department on request.
29		Where such tangible personal property is sold under a
30		conditional sales contract, or under any other form of sale
31		wherein the payment of the principal sum, or a part thereof, is
32		extended beyond the close of the period for which the return is
33		filed, the serviceman, in collecting the tax may collect, for
34		each tax return period, only the tax applicable to the part of

1		the selling price actually received during such tax return
2		period.
3		Except as provided hereinafter in this Section, on or
4		before the twentieth day of each calendar month, such
5		serviceman shall file a return for the preceding calendar month
6		in accordance with reasonable rules and regulations to be
7		promulgated by the Department of Revenue. Such return shall be
8		filed on a form prescribed by the Department and shall contain
9		such information as the Department may reasonably require.
10		The Department may require returns to be filed on a
11		quarterly basis. If so required, a return for each calendar
12		quarter shall be filed on or before the twentieth day of the
13		calendar month following the end of such calendar quarter. The
14		taxpayer shall also file a return with the Department for each
15		of the first two months of each calendar quarter, on or before
16		the twentieth day of the following calendar month, stating:
17		1. The name of the seller;
18		2. The address of the principal place of business from
19		which he engages in business as a serviceman in this State;
20		3. The total amount of taxable receipts received by him
21		during the preceding calendar month, including receipts
22		from charge and time sales, but less all deductions allowed
23		by law;
24		4. The amount of credit provided in Section 2d of this
25		Act;
26		5. The amount of tax due;
27		5-5. The signature of the taxpayer; and
28		6. Such other reasonable information as the Department
29		may require.
30		If a taxpayer fails to sign a return within 30 days after
31		the proper notice and demand for signature by the Department,
32		the return shall be considered valid and any amount shown to be
33		due on the return shall be deemed assessed.
34		After July 1, 2004 and prior to October 1, 2006 2003, a
35		serviceman may accept a Manufacturer's Purchase Credit
36		certification from a purchaser in satisfaction of Service Use

1		Tax as provided in Section 3-70 of the Service Use Tax Act if
2		the purchaser provides the appropriate documentation as
3		required by Section 3-70 of the Service Use Tax Act. A
4		Manufacturer's Purchase Credit certification, accepted prior
5		to October 1, 2006 2003 by a serviceman as provided in Section
6		3-70 of the Service Use Tax Act, may be used by that serviceman
7		to satisfy Service Occupation Tax liability in the amount
8		claimed in the certification, not to exceed 6.25% of the
9		receipts subject to tax from a qualifying purchase. A
10		Manufacturer's Purchase Credit reported on any original or
11		amended return filed under this Act after October 20, 2006 2003
12		shall be disallowed. No Manufacturer's Purchase Credit may be
13		used after September 30, 2006 2003 to satisfy any tax liability
14		imposed under this Act, including any audit liability.
15		If the serviceman's average monthly tax liability to the
16		Department does not exceed $200, the Department may authorize
17		his returns to be filed on a quarter annual basis, with the
18		return for January, February and March of a given year being
19		due by April 20 of such year; with the return for April, May
20		and June of a given year being due by July 20 of such year; with
21		the return for July, August and September of a given year being
22		due by October 20 of such year, and with the return for
23		October, November and December of a given year being due by
24		January 20 of the following year.
25		If the serviceman's average monthly tax liability to the
26		Department does not exceed $50, the Department may authorize
27		his returns to be filed on an annual basis, with the return for
28		a given year being due by January 20 of the following year.
29		Such quarter annual and annual returns, as to form and
30		substance, shall be subject to the same requirements as monthly
31		returns.
32		Notwithstanding any other provision in this Act concerning
33		the time within which a serviceman may file his return, in the
34		case of any serviceman who ceases to engage in a kind of
35		business which makes him responsible for filing returns under
36		this Act, such serviceman shall file a final return under this

1		Act with the Department not more than 1 month after
2		discontinuing such business.
3		Beginning October 1, 1993, a taxpayer who has an average
4		monthly tax liability of $150,000 or more shall make all
5		payments required by rules of the Department by electronic
6		funds transfer. Beginning October 1, 1994, a taxpayer who has
7		an average monthly tax liability of $100,000 or more shall make
8		all payments required by rules of the Department by electronic
9		funds transfer. Beginning October 1, 1995, a taxpayer who has
10		an average monthly tax liability of $50,000 or more shall make
11		all payments required by rules of the Department by electronic
12		funds transfer. Beginning October 1, 2000, a taxpayer who has
13		an annual tax liability of $200,000 or more shall make all
14		payments required by rules of the Department by electronic
15		funds transfer. The term "annual tax liability" shall be the
16		sum of the taxpayer's liabilities under this Act, and under all
17		other State and local occupation and use tax laws administered
18		by the Department, for the immediately preceding calendar year.
19		The term "average monthly tax liability" means the sum of the
20		taxpayer's liabilities under this Act, and under all other
21		State and local occupation and use tax laws administered by the
22		Department, for the immediately preceding calendar year
23		divided by 12. Beginning on October 1, 2002, a taxpayer who has
24		a tax liability in the amount set forth in subsection (b) of
25		Section 2505-210 of the Department of Revenue Law shall make
26		all payments required by rules of the Department by electronic
27		funds transfer.
28		Before August 1 of each year beginning in 1993, the
29		Department shall notify all taxpayers required to make payments
30		by electronic funds transfer. All taxpayers required to make
31		payments by electronic funds transfer shall make those payments
32		for a minimum of one year beginning on October 1.
33		Any taxpayer not required to make payments by electronic
34		funds transfer may make payments by electronic funds transfer
35		with the permission of the Department.
36		All taxpayers required to make payment by electronic funds

1		transfer and any taxpayers authorized to voluntarily make
2		payments by electronic funds transfer shall make those payments
3		in the manner authorized by the Department.
4		The Department shall adopt such rules as are necessary to
5		effectuate a program of electronic funds transfer and the
6		requirements of this Section.
7		Where a serviceman collects the tax with respect to the
8		selling price of tangible personal property which he sells and
9		the purchaser thereafter returns such tangible personal
10		property and the serviceman refunds the selling price thereof
11		to the purchaser, such serviceman shall also refund, to the
12		purchaser, the tax so collected from the purchaser. When filing
13		his return for the period in which he refunds such tax to the
14		purchaser, the serviceman may deduct the amount of the tax so
15		refunded by him to the purchaser from any other Service
16		Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
17		Use Tax which such serviceman may be required to pay or remit
18		to the Department, as shown by such return, provided that the
19		amount of the tax to be deducted shall previously have been
20		remitted to the Department by such serviceman. If the
21		serviceman shall not previously have remitted the amount of
22		such tax to the Department, he shall be entitled to no
23		deduction hereunder upon refunding such tax to the purchaser.
24		If experience indicates such action to be practicable, the
25		Department may prescribe and furnish a combination or joint
26		return which will enable servicemen, who are required to file
27		returns hereunder and also under the Retailers' Occupation Tax
28		Act, the Use Tax Act or the Service Use Tax Act, to furnish all
29		the return information required by all said Acts on the one
30		form.
31		Where the serviceman has more than one business registered
32		with the Department under separate registrations hereunder,
33		such serviceman shall file separate returns for each registered
34		business.
35		Beginning January 1, 1990, each month the Department shall
36		pay into the Local Government Tax Fund the revenue realized for

1		the preceding month from the 1% tax on sales of food for human
2		consumption which is to be consumed off the premises where it
3		is sold (other than alcoholic beverages, soft drinks and food
4		which has been prepared for immediate consumption) and
5		prescription and nonprescription medicines, drugs, medical
6		appliances and insulin, urine testing materials, syringes and
7		needles used by diabetics.
8		Beginning January 1, 1990, each month the Department shall
9		pay into the County and Mass Transit District Fund 4% of the
10		revenue realized for the preceding month from the 6.25% general
11		rate.
12		Beginning August 1, 2000, each month the Department shall
13		pay into the County and Mass Transit District Fund 20% of the
14		net revenue realized for the preceding month from the 1.25%
15		rate on the selling price of motor fuel and gasohol.
16		Beginning January 1, 1990, each month the Department shall
17		pay into the Local Government Tax Fund 16% of the revenue
18		realized for the preceding month from the 6.25% general rate on
19		transfers of tangible personal property.
20		Beginning August 1, 2000, each month the Department shall
21		pay into the Local Government Tax Fund 80% of the net revenue
22		realized for the preceding month from the 1.25% rate on the
23		selling price of motor fuel and gasohol.
24		Of the remainder of the moneys received by the Department
25		pursuant to this Act, (a) 1.75% thereof shall be paid into the
26		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
27		and after July 1, 1989, 3.8% thereof shall be paid into the
28		Build Illinois Fund; provided, however, that if in any fiscal
29		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
30		may be, of the moneys received by the Department and required
31		to be paid into the Build Illinois Fund pursuant to Section 3
32		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
33		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
34		Service Occupation Tax Act, such Acts being hereinafter called
35		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
36		may be, of moneys being hereinafter called the "Tax Act

1		Amount", and (2) the amount transferred to the Build Illinois
2		Fund from the State and Local Sales Tax Reform Fund shall be
3		less than the Annual Specified Amount (as defined in Section 3
4		of the Retailers' Occupation Tax Act), an amount equal to the
5		difference shall be immediately paid into the Build Illinois
6		Fund from other moneys received by the Department pursuant to
7		the Tax Acts; and further provided, that if on the last
8		business day of any month the sum of (1) the Tax Act Amount
9		required to be deposited into the Build Illinois Account in the
10		Build Illinois Fund during such month and (2) the amount
11		transferred during such month to the Build Illinois Fund from
12		the State and Local Sales Tax Reform Fund shall have been less
13		than 1/12 of the Annual Specified Amount, an amount equal to
14		the difference shall be immediately paid into the Build
15		Illinois Fund from other moneys received by the Department
16		pursuant to the Tax Acts; and, further provided, that in no
17		event shall the payments required under the preceding proviso
18		result in aggregate payments into the Build Illinois Fund
19		pursuant to this clause (b) for any fiscal year in excess of
20		the greater of (i) the Tax Act Amount or (ii) the Annual
21		Specified Amount for such fiscal year; and, further provided,
22		that the amounts payable into the Build Illinois Fund under
23		this clause (b) shall be payable only until such time as the
24		aggregate amount on deposit under each trust indenture securing
25		Bonds issued and outstanding pursuant to the Build Illinois
26		Bond Act is sufficient, taking into account any future
27		investment income, to fully provide, in accordance with such
28		indenture, for the defeasance of or the payment of the
29		principal of, premium, if any, and interest on the Bonds
30		secured by such indenture and on any Bonds expected to be
31		issued thereafter and all fees and costs payable with respect
32		thereto, all as certified by the Director of the Bureau of the
33		Budget (now Governor's Office of Management and Budget). If on
34		the last business day of any month in which Bonds are
35		outstanding pursuant to the Build Illinois Bond Act, the
36		aggregate of the moneys deposited in the Build Illinois Bond

1		Account in the Build Illinois Fund in such month shall be less
2		than the amount required to be transferred in such month from
3		the Build Illinois Bond Account to the Build Illinois Bond
4		Retirement and Interest Fund pursuant to Section 13 of the
5		Build Illinois Bond Act, an amount equal to such deficiency
6		shall be immediately paid from other moneys received by the
7		Department pursuant to the Tax Acts to the Build Illinois Fund;
8		provided, however, that any amounts paid to the Build Illinois
9		Fund in any fiscal year pursuant to this sentence shall be
10		deemed to constitute payments pursuant to clause (b) of the
11		preceding sentence and shall reduce the amount otherwise
12		payable for such fiscal year pursuant to clause (b) of the
13		preceding sentence. The moneys received by the Department
14		pursuant to this Act and required to be deposited into the
15		Build Illinois Fund are subject to the pledge, claim and charge
16		set forth in Section 12 of the Build Illinois Bond Act.
17		Subject to payment of amounts into the Build Illinois Fund
18		as provided in the preceding paragraph or in any amendment
19		thereto hereafter enacted, the following specified monthly
20		installment of the amount requested in the certificate of the
21		Chairman of the Metropolitan Pier and Exposition Authority
22		provided under Section 8.25f of the State Finance Act, but not
23		in excess of the sums designated as "Total Deposit", shall be
24		deposited in the aggregate from collections under Section 9 of
25		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
26		9 of the Service Occupation Tax Act, and Section 3 of the
27		Retailers' Occupation Tax Act into the McCormick Place
28		Expansion Project Fund in the specified fiscal years.

33		Beginning July 20, 1993 and in each month of each fiscal
34		year thereafter, one-eighth of the amount requested in the
35		certificate of the Chairman of the Metropolitan Pier and
36		Exposition Authority for that fiscal year, less the amount

1		deposited into the McCormick Place Expansion Project Fund by
2		the State Treasurer in the respective month under subsection
3		(g) of Section 13 of the Metropolitan Pier and Exposition
4		Authority Act, plus cumulative deficiencies in the deposits
5		required under this Section for previous months and years,
6		shall be deposited into the McCormick Place Expansion Project
7		Fund, until the full amount requested for the fiscal year, but
8		not in excess of the amount specified above as "Total Deposit",
9		has been deposited.
10		Subject to payment of amounts into the Build Illinois Fund
11		and the McCormick Place Expansion Project Fund pursuant to the
12		preceding paragraphs or in any amendments thereto hereafter
13		enacted, beginning July 1, 1993, the Department shall each
14		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
15		the net revenue realized for the preceding month from the 6.25%
16		general rate on the selling price of tangible personal
17		property.
18		Subject to payment of amounts into the Build Illinois Fund
19		and the McCormick Place Expansion Project Fund pursuant to the
20		preceding paragraphs or in any amendments thereto hereafter
21		enacted, beginning with the receipt of the first report of
22		taxes paid by an eligible business and continuing for a 25-year
23		period, the Department shall each month pay into the Energy
24		Infrastructure Fund 80% of the net revenue realized from the
25		6.25% general rate on the selling price of Illinois-mined coal
26		that was sold to an eligible business. For purposes of this
27		paragraph, the term "eligible business" means a new electric
28		generating facility certified pursuant to Section 605-332 of
29		the Department of Commerce and Economic Opportunity Community
30		Affairs Law of the Civil Administrative Code of Illinois.
31		Remaining moneys received by the Department pursuant to
32		this Act shall be paid into the General Revenue Fund of the
33		State Treasury.
34		The Department may, upon separate written notice to a
35		taxpayer, require the taxpayer to prepare and file with the
36		Department on a form prescribed by the Department within not

1		less than 60 days after receipt of the notice an annual
2		information return for the tax year specified in the notice.
3		Such annual return to the Department shall include a statement
4		of gross receipts as shown by the taxpayer's last Federal
5		income tax return. If the total receipts of the business as
6		reported in the Federal income tax return do not agree with the
7		gross receipts reported to the Department of Revenue for the
8		same period, the taxpayer shall attach to his annual return a
9		schedule showing a reconciliation of the 2 amounts and the
10		reasons for the difference. The taxpayer's annual return to the
11		Department shall also disclose the cost of goods sold by the
12		taxpayer during the year covered by such return, opening and
13		closing inventories of such goods for such year, cost of goods
14		used from stock or taken from stock and given away by the
15		taxpayer during such year, pay roll information of the
16		taxpayer's business during such year and any additional
17		reasonable information which the Department deems would be
18		helpful in determining the accuracy of the monthly, quarterly
19		or annual returns filed by such taxpayer as hereinbefore
20		provided for in this Section.
21		If the annual information return required by this Section
22		is not filed when and as required, the taxpayer shall be liable
23		as follows:
24		(i) Until January 1, 1994, the taxpayer shall be liable
25		for a penalty equal to 1/6 of 1% of the tax due from such
26		taxpayer under this Act during the period to be covered by
27		the annual return for each month or fraction of a month
28		until such return is filed as required, the penalty to be
29		assessed and collected in the same manner as any other
30		penalty provided for in this Act.
31		(ii) On and after January 1, 1994, the taxpayer shall
32		be liable for a penalty as described in Section 3-4 of the
33		Uniform Penalty and Interest Act.
34		The chief executive officer, proprietor, owner or highest
35		ranking manager shall sign the annual return to certify the
36		accuracy of the information contained therein. Any person who

1		willfully signs the annual return containing false or
2		inaccurate information shall be guilty of perjury and punished
3		accordingly. The annual return form prescribed by the
4		Department shall include a warning that the person signing the
5		return may be liable for perjury.
6		The foregoing portion of this Section concerning the filing
7		of an annual information return shall not apply to a serviceman
8		who is not required to file an income tax return with the
9		United States Government.
10		As soon as possible after the first day of each month, upon
11		certification of the Department of Revenue, the Comptroller
12		shall order transferred and the Treasurer shall transfer from
13		the General Revenue Fund to the Motor Fuel Tax Fund an amount
14		equal to 1.7% of 80% of the net revenue realized under this Act
15		for the second preceding month. Beginning April 1, 2000, this
16		transfer is no longer required and shall not be made.
17		Net revenue realized for a month shall be the revenue
18		collected by the State pursuant to this Act, less the amount
19		paid out during that month as refunds to taxpayers for
20		overpayment of liability.
21		For greater simplicity of administration, it shall be
22		permissible for manufacturers, importers and wholesalers whose
23		products are sold by numerous servicemen in Illinois, and who
24		wish to do so, to assume the responsibility for accounting and
25		paying to the Department all tax accruing under this Act with
26		respect to such sales, if the servicemen who are affected do
27		not make written objection to the Department to this
28		arrangement.
29		(Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492,
30		eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 93-24,
31		eff. 6-20-03; revised 10-15-03.)

32		Section 20. The Retailers' Occupation Tax Act is amended by
33		changing Section 3 as follows:
34		(35 ILCS 120/3) (from Ch. 120, par. 442)

1		Sec. 3. Except as provided in this Section, on or before
2		the twentieth day of each calendar month, every person engaged
3		in the business of selling tangible personal property at retail
4		in this State during the preceding calendar month shall file a
5		return with the Department, stating:
6		1. The name of the seller;
7		2. His residence address and the address of his
8		principal place of business and the address of the
9		principal place of business (if that is a different
10		address) from which he engages in the business of selling
11		tangible personal property at retail in this State;
12		3. Total amount of receipts received by him during the
13		preceding calendar month or quarter, as the case may be,
14		from sales of tangible personal property, and from services
15		furnished, by him during such preceding calendar month or
16		quarter;
17		4. Total amount received by him during the preceding
18		calendar month or quarter on charge and time sales of
19		tangible personal property, and from services furnished,
20		by him prior to the month or quarter for which the return
21		is filed;
22		5. Deductions allowed by law;
23		6. Gross receipts which were received by him during the
24		preceding calendar month or quarter and upon the basis of
25		which the tax is imposed;
26		7. The amount of credit provided in Section 2d of this
27		Act;
28		8. The amount of tax due;
29		9. The signature of the taxpayer; and
30		10. Such other reasonable information as the
31		Department may require.
32		If a taxpayer fails to sign a return within 30 days after
33		the proper notice and demand for signature by the Department,
34		the return shall be considered valid and any amount shown to be
35		due on the return shall be deemed assessed.
36		Each return shall be accompanied by the statement of

1		prepaid tax issued pursuant to Section 2e for which credit is
2		claimed.
3		After July 1, 2004 and prior to October 1, 2006 2003, a
4		retailer may accept a Manufacturer's Purchase Credit
5		certification from a purchaser in satisfaction of Use Tax as
6		provided in Section 3-85 of the Use Tax Act if the purchaser
7		provides the appropriate documentation as required by Section
8		3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
9		certification, accepted by a retailer prior to October 1, 2006
10		2003 as provided in Section 3-85 of the Use Tax Act, may be
11		used by that retailer to satisfy Retailers' Occupation Tax
12		liability in the amount claimed in the certification, not to
13		exceed 6.25% of the receipts subject to tax from a qualifying
14		purchase. A Manufacturer's Purchase Credit reported on any
15		original or amended return filed under this Act after October
16		20, 2006 2003 shall be disallowed. No Manufacturer's Purchase
17		Credit may be used after September 30, 2006 2003 to satisfy any
18		tax liability imposed under this Act, including any audit
19		liability.
20		The Department may require returns to be filed on a
21		quarterly basis. If so required, a return for each calendar
22		quarter shall be filed on or before the twentieth day of the
23		calendar month following the end of such calendar quarter. The
24		taxpayer shall also file a return with the Department for each
25		of the first two months of each calendar quarter, on or before
26		the twentieth day of the following calendar month, stating:
27		1. The name of the seller;
28		2. The address of the principal place of business from
29		which he engages in the business of selling tangible
30		personal property at retail in this State;
31		3. The total amount of taxable receipts received by him
32		during the preceding calendar month from sales of tangible
33		personal property by him during such preceding calendar
34		month, including receipts from charge and time sales, but
35		less all deductions allowed by law;
36		4. The amount of credit provided in Section 2d of this

1		Act;
2		5. The amount of tax due; and
3		6. Such other reasonable information as the Department
4		may require.
5		Beginning on October 1, 2003, any person who is not a
6		licensed distributor, importing distributor, or manufacturer,
7		as defined in the Liquor Control Act of 1934, but is engaged in
8		the business of selling, at retail, alcoholic liquor shall file
9		a statement with the Department of Revenue, in a format and at
10		a time prescribed by the Department, showing the total amount
11		paid for alcoholic liquor purchased during the preceding month
12		and such other information as is reasonably required by the
13		Department. The Department may adopt rules to require that this
14		statement be filed in an electronic or telephonic format. Such
15		rules may provide for exceptions from the filing requirements
16		of this paragraph. For the purposes of this paragraph, the term
17		"alcoholic liquor" shall have the meaning prescribed in the
18		Liquor Control Act of 1934.
19		Beginning on October 1, 2003, every distributor, importing
20		distributor, and manufacturer of alcoholic liquor as defined in
21		the Liquor Control Act of 1934, shall file a statement with the
22		Department of Revenue, no later than the 10th day of the month
23		for the preceding month during which transactions occurred, by
24		electronic means, showing the total amount of gross receipts
25		from the sale of alcoholic liquor sold or distributed during
26		the preceding month to purchasers; identifying the purchaser to
27		whom it was sold or distributed; the purchaser's tax
28		registration number; and such other information reasonably
29		required by the Department. A copy of the monthly statement
30		shall be sent to the retailer no later than the 10th day of the
31		month for the preceding month during which transactions
32		occurred.
33		If a total amount of less than $1 is payable, refundable or
34		creditable, such amount shall be disregarded if it is less than
35		50 cents and shall be increased to $1 if it is 50 cents or more.
36		Beginning October 1, 1993, a taxpayer who has an average

1		monthly tax liability of $150,000 or more shall make all
2		payments required by rules of the Department by electronic
3		funds transfer. Beginning October 1, 1994, a taxpayer who has
4		an average monthly tax liability of $100,000 or more shall make
5		all payments required by rules of the Department by electronic
6		funds transfer. Beginning October 1, 1995, a taxpayer who has
7		an average monthly tax liability of $50,000 or more shall make
8		all payments required by rules of the Department by electronic
9		funds transfer. Beginning October 1, 2000, a taxpayer who has
10		an annual tax liability of $200,000 or more shall make all
11		payments required by rules of the Department by electronic
12		funds transfer. The term "annual tax liability" shall be the
13		sum of the taxpayer's liabilities under this Act, and under all
14		other State and local occupation and use tax laws administered
15		by the Department, for the immediately preceding calendar year.
16		The term "average monthly tax liability" shall be the sum of
17		the taxpayer's liabilities under this Act, and under all other
18		State and local occupation and use tax laws administered by the
19		Department, for the immediately preceding calendar year
20		divided by 12. Beginning on October 1, 2002, a taxpayer who has
21		a tax liability in the amount set forth in subsection (b) of
22		Section 2505-210 of the Department of Revenue Law shall make
23		all payments required by rules of the Department by electronic
24		funds transfer.
25		Before August 1 of each year beginning in 1993, the
26		Department shall notify all taxpayers required to make payments
27		by electronic funds transfer. All taxpayers required to make
28		payments by electronic funds transfer shall make those payments
29		for a minimum of one year beginning on October 1.
30		Any taxpayer not required to make payments by electronic
31		funds transfer may make payments by electronic funds transfer
32		with the permission of the Department.
33		All taxpayers required to make payment by electronic funds
34		transfer and any taxpayers authorized to voluntarily make
35		payments by electronic funds transfer shall make those payments
36		in the manner authorized by the Department.

1		The Department shall adopt such rules as are necessary to
2		effectuate a program of electronic funds transfer and the
3		requirements of this Section.
4		Any amount which is required to be shown or reported on any
5		return or other document under this Act shall, if such amount
6		is not a whole-dollar amount, be increased to the nearest
7		whole-dollar amount in any case where the fractional part of a
8		dollar is 50 cents or more, and decreased to the nearest
9		whole-dollar amount where the fractional part of a dollar is
10		less than 50 cents.
11		If the retailer is otherwise required to file a monthly
12		return and if the retailer's average monthly tax liability to
13		the Department does not exceed $200, the Department may
14		authorize his returns to be filed on a quarter annual basis,
15		with the return for January, February and March of a given year
16		being due by April 20 of such year; with the return for April,
17		May and June of a given year being due by July 20 of such year;
18		with the return for July, August and September of a given year
19		being due by October 20 of such year, and with the return for
20		October, November and December of a given year being due by
21		January 20 of the following year.
22		If the retailer is otherwise required to file a monthly or
23		quarterly return and if the retailer's average monthly tax
24		liability with the Department does not exceed $50, the
25		Department may authorize his returns to be filed on an annual
26		basis, with the return for a given year being due by January 20
27		of the following year.
28		Such quarter annual and annual returns, as to form and
29		substance, shall be subject to the same requirements as monthly
30		returns.
31		Notwithstanding any other provision in this Act concerning
32		the time within which a retailer may file his return, in the
33		case of any retailer who ceases to engage in a kind of business
34		which makes him responsible for filing returns under this Act,
35		such retailer shall file a final return under this Act with the
36		Department not more than one month after discontinuing such

1		business.
2		Where the same person has more than one business registered
3		with the Department under separate registrations under this
4		Act, such person may not file each return that is due as a
5		single return covering all such registered businesses, but
6		shall file separate returns for each such registered business.
7		In addition, with respect to motor vehicles, watercraft,
8		aircraft, and trailers that are required to be registered with
9		an agency of this State, every retailer selling this kind of
10		tangible personal property shall file, with the Department,
11		upon a form to be prescribed and supplied by the Department, a
12		separate return for each such item of tangible personal
13		property which the retailer sells, except that if, in the same
14		transaction, (i) a retailer of aircraft, watercraft, motor
15		vehicles or trailers transfers more than one aircraft,
16		watercraft, motor vehicle or trailer to another aircraft,
17		watercraft, motor vehicle retailer or trailer retailer for the
18		purpose of resale or (ii) a retailer of aircraft, watercraft,
19		motor vehicles, or trailers transfers more than one aircraft,
20		watercraft, motor vehicle, or trailer to a purchaser for use as
21		a qualifying rolling stock as provided in Section 2-5 of this
22		Act, then that seller may report the transfer of all aircraft,
23		watercraft, motor vehicles or trailers involved in that
24		transaction to the Department on the same uniform
25		invoice-transaction reporting return form. For purposes of
26		this Section, "watercraft" means a Class 2, Class 3, or Class 4
27		watercraft as defined in Section 3-2 of the Boat Registration
28		and Safety Act, a personal watercraft, or any boat equipped
29		with an inboard motor.
30		Any retailer who sells only motor vehicles, watercraft,
31		aircraft, or trailers that are required to be registered with
32		an agency of this State, so that all retailers' occupation tax
33		liability is required to be reported, and is reported, on such
34		transaction reporting returns and who is not otherwise required
35		to file monthly or quarterly returns, need not file monthly or
36		quarterly returns. However, those retailers shall be required

1		to file returns on an annual basis.
2		The transaction reporting return, in the case of motor
3		vehicles or trailers that are required to be registered with an
4		agency of this State, shall be the same document as the Uniform
5		Invoice referred to in Section 5-402 of The Illinois Vehicle
6		Code and must show the name and address of the seller; the name
7		and address of the purchaser; the amount of the selling price
8		including the amount allowed by the retailer for traded-in
9		property, if any; the amount allowed by the retailer for the
10		traded-in tangible personal property, if any, to the extent to
11		which Section 1 of this Act allows an exemption for the value
12		of traded-in property; the balance payable after deducting such
13		trade-in allowance from the total selling price; the amount of
14		tax due from the retailer with respect to such transaction; the
15		amount of tax collected from the purchaser by the retailer on
16		such transaction (or satisfactory evidence that such tax is not
17		due in that particular instance, if that is claimed to be the
18		fact); the place and date of the sale; a sufficient
19		identification of the property sold; such other information as
20		is required in Section 5-402 of The Illinois Vehicle Code, and
21		such other information as the Department may reasonably
22		require.
23		The transaction reporting return in the case of watercraft
24		or aircraft must show the name and address of the seller; the
25		name and address of the purchaser; the amount of the selling
26		price including the amount allowed by the retailer for
27		traded-in property, if any; the amount allowed by the retailer
28		for the traded-in tangible personal property, if any, to the
29		extent to which Section 1 of this Act allows an exemption for
30		the value of traded-in property; the balance payable after
31		deducting such trade-in allowance from the total selling price;
32		the amount of tax due from the retailer with respect to such
33		transaction; the amount of tax collected from the purchaser by
34		the retailer on such transaction (or satisfactory evidence that
35		such tax is not due in that particular instance, if that is
36		claimed to be the fact); the place and date of the sale, a

1		sufficient identification of the property sold, and such other
2		information as the Department may reasonably require.
3		Such transaction reporting return shall be filed not later
4		than 20 days after the day of delivery of the item that is
5		being sold, but may be filed by the retailer at any time sooner
6		than that if he chooses to do so. The transaction reporting
7		return and tax remittance or proof of exemption from the
8		Illinois use tax may be transmitted to the Department by way of
9		the State agency with which, or State officer with whom the
10		tangible personal property must be titled or registered (if
11		titling or registration is required) if the Department and such
12		agency or State officer determine that this procedure will
13		expedite the processing of applications for title or
14		registration.
15		With each such transaction reporting return, the retailer
16		shall remit the proper amount of tax due (or shall submit
17		satisfactory evidence that the sale is not taxable if that is
18		the case), to the Department or its agents, whereupon the
19		Department shall issue, in the purchaser's name, a use tax
20		receipt (or a certificate of exemption if the Department is
21		satisfied that the particular sale is tax exempt) which such
22		purchaser may submit to the agency with which, or State officer
23		with whom, he must title or register the tangible personal
24		property that is involved (if titling or registration is
25		required) in support of such purchaser's application for an
26		Illinois certificate or other evidence of title or registration
27		to such tangible personal property.
28		No retailer's failure or refusal to remit tax under this
29		Act precludes a user, who has paid the proper tax to the
30		retailer, from obtaining his certificate of title or other
31		evidence of title or registration (if titling or registration
32		is required) upon satisfying the Department that such user has
33		paid the proper tax (if tax is due) to the retailer. The
34		Department shall adopt appropriate rules to carry out the
35		mandate of this paragraph.
36		If the user who would otherwise pay tax to the retailer

1		wants the transaction reporting return filed and the payment of
2		the tax or proof of exemption made to the Department before the
3		retailer is willing to take these actions and such user has not
4		paid the tax to the retailer, such user may certify to the fact
5		of such delay by the retailer and may (upon the Department
6		being satisfied of the truth of such certification) transmit
7		the information required by the transaction reporting return
8		and the remittance for tax or proof of exemption directly to
9		the Department and obtain his tax receipt or exemption
10		determination, in which event the transaction reporting return
11		and tax remittance (if a tax payment was required) shall be
12		credited by the Department to the proper retailer's account
13		with the Department, but without the 2.1% or 1.75% discount
14		provided for in this Section being allowed. When the user pays
15		the tax directly to the Department, he shall pay the tax in the
16		same amount and in the same form in which it would be remitted
17		if the tax had been remitted to the Department by the retailer.
18		Refunds made by the seller during the preceding return
19		period to purchasers, on account of tangible personal property
20		returned to the seller, shall be allowed as a deduction under
21		subdivision 5 of his monthly or quarterly return, as the case
22		may be, in case the seller had theretofore included the
23		receipts from the sale of such tangible personal property in a
24		return filed by him and had paid the tax imposed by this Act
25		with respect to such receipts.
26		Where the seller is a corporation, the return filed on
27		behalf of such corporation shall be signed by the president,
28		vice-president, secretary or treasurer or by the properly
29		accredited agent of such corporation.
30		Where the seller is a limited liability company, the return
31		filed on behalf of the limited liability company shall be
32		signed by a manager, member, or properly accredited agent of
33		the limited liability company.
34		Except as provided in this Section, the retailer filing the
35		return under this Section shall, at the time of filing such
36		return, pay to the Department the amount of tax imposed by this

1		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
2		on and after January 1, 1990, or $5 per calendar year,
3		whichever is greater, which is allowed to reimburse the
4		retailer for the expenses incurred in keeping records,
5		preparing and filing returns, remitting the tax and supplying
6		data to the Department on request. Any prepayment made pursuant
7		to Section 2d of this Act shall be included in the amount on
8		which such 2.1% or 1.75% discount is computed. In the case of
9		retailers who report and pay the tax on a transaction by
10		transaction basis, as provided in this Section, such discount
11		shall be taken with each such tax remittance instead of when
12		such retailer files his periodic return.
13		Before October 1, 2000, if the taxpayer's average monthly
14		tax liability to the Department under this Act, the Use Tax
15		Act, the Service Occupation Tax Act, and the Service Use Tax
16		Act, excluding any liability for prepaid sales tax to be
17		remitted in accordance with Section 2d of this Act, was $10,000
18		or more during the preceding 4 complete calendar quarters, he
19		shall file a return with the Department each month by the 20th
20		day of the month next following the month during which such tax
21		liability is incurred and shall make payments to the Department
22		on or before the 7th, 15th, 22nd and last day of the month
23		during which such liability is incurred. On and after October
24		1, 2000, if the taxpayer's average monthly tax liability to the
25		Department under this Act, the Use Tax Act, the Service
26		Occupation Tax Act, and the Service Use Tax Act, excluding any
27		liability for prepaid sales tax to be remitted in accordance
28		with Section 2d of this Act, was $20,000 or more during the
29		preceding 4 complete calendar quarters, he shall file a return
30		with the Department each month by the 20th day of the month
31		next following the month during which such tax liability is
32		incurred and shall make payment to the Department on or before
33		the 7th, 15th, 22nd and last day of the month during which such
34		liability is incurred. If the month during which such tax
35		liability is incurred began prior to January 1, 1985, each
36		payment shall be in an amount equal to 1/4 of the taxpayer's

1		actual liability for the month or an amount set by the
2		Department not to exceed 1/4 of the average monthly liability
3		of the taxpayer to the Department for the preceding 4 complete
4		calendar quarters (excluding the month of highest liability and
5		the month of lowest liability in such 4 quarter period). If the
6		month during which such tax liability is incurred begins on or
7		after January 1, 1985 and prior to January 1, 1987, each
8		payment shall be in an amount equal to 22.5% of the taxpayer's
9		actual liability for the month or 27.5% of the taxpayer's
10		liability for the same calendar month of the preceding year. If
11		the month during which such tax liability is incurred begins on
12		or after January 1, 1987 and prior to January 1, 1988, each
13		payment shall be in an amount equal to 22.5% of the taxpayer's
14		actual liability for the month or 26.25% of the taxpayer's
15		liability for the same calendar month of the preceding year. If
16		the month during which such tax liability is incurred begins on
17		or after January 1, 1988, and prior to January 1, 1989, or
18		begins on or after January 1, 1996, each payment shall be in an
19		amount equal to 22.5% of the taxpayer's actual liability for
20		the month or 25% of the taxpayer's liability for the same
21		calendar month of the preceding year. If the month during which
22		such tax liability is incurred begins on or after January 1,
23		1989, and prior to January 1, 1996, each payment shall be in an
24		amount equal to 22.5% of the taxpayer's actual liability for
25		the month or 25% of the taxpayer's liability for the same
26		calendar month of the preceding year or 100% of the taxpayer's
27		actual liability for the quarter monthly reporting period. The
28		amount of such quarter monthly payments shall be credited
29		against the final tax liability of the taxpayer's return for
30		that month. Before October 1, 2000, once applicable, the
31		requirement of the making of quarter monthly payments to the
32		Department by taxpayers having an average monthly tax liability
33		of $10,000 or more as determined in the manner provided above
34		shall continue until such taxpayer's average monthly liability
35		to the Department during the preceding 4 complete calendar
36		quarters (excluding the month of highest liability and the

1		month of lowest liability) is less than $9,000, or until such
2		taxpayer's average monthly liability to the Department as
3		computed for each calendar quarter of the 4 preceding complete
4		calendar quarter period is less than $10,000. However, if a
5		taxpayer can show the Department that a substantial change in
6		the taxpayer's business has occurred which causes the taxpayer
7		to anticipate that his average monthly tax liability for the
8		reasonably foreseeable future will fall below the $10,000
9		threshold stated above, then such taxpayer may petition the
10		Department for a change in such taxpayer's reporting status. On
11		and after October 1, 2000, once applicable, the requirement of
12		the making of quarter monthly payments to the Department by
13		taxpayers having an average monthly tax liability of $20,000 or
14		more as determined in the manner provided above shall continue
15		until such taxpayer's average monthly liability to the
16		Department during the preceding 4 complete calendar quarters
17		(excluding the month of highest liability and the month of
18		lowest liability) is less than $19,000 or until such taxpayer's
19		average monthly liability to the Department as computed for
20		each calendar quarter of the 4 preceding complete calendar
21		quarter period is less than $20,000. However, if a taxpayer can
22		show the Department that a substantial change in the taxpayer's
23		business has occurred which causes the taxpayer to anticipate
24		that his average monthly tax liability for the reasonably
25		foreseeable future will fall below the $20,000 threshold stated
26		above, then such taxpayer may petition the Department for a
27		change in such taxpayer's reporting status. The Department
28		shall change such taxpayer's reporting status unless it finds
29		that such change is seasonal in nature and not likely to be
30		long term. If any such quarter monthly payment is not paid at
31		the time or in the amount required by this Section, then the
32		taxpayer shall be liable for penalties and interest on the
33		difference between the minimum amount due as a payment and the
34		amount of such quarter monthly payment actually and timely
35		paid, except insofar as the taxpayer has previously made
36		payments for that month to the Department in excess of the

1		minimum payments previously due as provided in this Section.
2		The Department shall make reasonable rules and regulations to
3		govern the quarter monthly payment amount and quarter monthly
4		payment dates for taxpayers who file on other than a calendar
5		monthly basis.
6		The provisions of this paragraph apply before October 1,
7		2001. Without regard to whether a taxpayer is required to make
8		quarter monthly payments as specified above, any taxpayer who
9		is required by Section 2d of this Act to collect and remit
10		prepaid taxes and has collected prepaid taxes which average in
11		excess of $25,000 per month during the preceding 2 complete
12		calendar quarters, shall file a return with the Department as
13		required by Section 2f and shall make payments to the
14		Department on or before the 7th, 15th, 22nd and last day of the
15		month during which such liability is incurred. If the month
16		during which such tax liability is incurred began prior to the
17		effective date of this amendatory Act of 1985, each payment
18		shall be in an amount not less than 22.5% of the taxpayer's
19		actual liability under Section 2d. If the month during which
20		such tax liability is incurred begins on or after January 1,
21		1986, each payment shall be in an amount equal to 22.5% of the
22		taxpayer's actual liability for the month or 27.5% of the
23		taxpayer's liability for the same calendar month of the
24		preceding calendar year. If the month during which such tax
25		liability is incurred begins on or after January 1, 1987, each
26		payment shall be in an amount equal to 22.5% of the taxpayer's
27		actual liability for the month or 26.25% of the taxpayer's
28		liability for the same calendar month of the preceding year.
29		The amount of such quarter monthly payments shall be credited
30		against the final tax liability of the taxpayer's return for
31		that month filed under this Section or Section 2f, as the case
32		may be. Once applicable, the requirement of the making of
33		quarter monthly payments to the Department pursuant to this
34		paragraph shall continue until such taxpayer's average monthly
35		prepaid tax collections during the preceding 2 complete
36		calendar quarters is $25,000 or less. If any such quarter

1		monthly payment is not paid at the time or in the amount
2		required, the taxpayer shall be liable for penalties and
3		interest on such difference, except insofar as the taxpayer has
4		previously made payments for that month in excess of the
5		minimum payments previously due.
6		The provisions of this paragraph apply on and after October
7		1, 2001. Without regard to whether a taxpayer is required to
8		make quarter monthly payments as specified above, any taxpayer
9		who is required by Section 2d of this Act to collect and remit
10		prepaid taxes and has collected prepaid taxes that average in
11		excess of $20,000 per month during the preceding 4 complete
12		calendar quarters shall file a return with the Department as
13		required by Section 2f and shall make payments to the
14		Department on or before the 7th, 15th, 22nd and last day of the
15		month during which the liability is incurred. Each payment
16		shall be in an amount equal to 22.5% of the taxpayer's actual
17		liability for the month or 25% of the taxpayer's liability for
18		the same calendar month of the preceding year. The amount of
19		the quarter monthly payments shall be credited against the
20		final tax liability of the taxpayer's return for that month
21		filed under this Section or Section 2f, as the case may be.
22		Once applicable, the requirement of the making of quarter
23		monthly payments to the Department pursuant to this paragraph
24		shall continue until the taxpayer's average monthly prepaid tax
25		collections during the preceding 4 complete calendar quarters
26		(excluding the month of highest liability and the month of
27		lowest liability) is less than $19,000 or until such taxpayer's
28		average monthly liability to the Department as computed for
29		each calendar quarter of the 4 preceding complete calendar
30		quarters is less than $20,000. If any such quarter monthly
31		payment is not paid at the time or in the amount required, the
32		taxpayer shall be liable for penalties and interest on such
33		difference, except insofar as the taxpayer has previously made
34		payments for that month in excess of the minimum payments
35		previously due.
36		If any payment provided for in this Section exceeds the

1		taxpayer's liabilities under this Act, the Use Tax Act, the
2		Service Occupation Tax Act and the Service Use Tax Act, as
3		shown on an original monthly return, the Department shall, if
4		requested by the taxpayer, issue to the taxpayer a credit
5		memorandum no later than 30 days after the date of payment. The
6		credit evidenced by such credit memorandum may be assigned by
7		the taxpayer to a similar taxpayer under this Act, the Use Tax
8		Act, the Service Occupation Tax Act or the Service Use Tax Act,
9		in accordance with reasonable rules and regulations to be
10		prescribed by the Department. If no such request is made, the
11		taxpayer may credit such excess payment against tax liability
12		subsequently to be remitted to the Department under this Act,
13		the Use Tax Act, the Service Occupation Tax Act or the Service
14		Use Tax Act, in accordance with reasonable rules and
15		regulations prescribed by the Department. If the Department
16		subsequently determined that all or any part of the credit
17		taken was not actually due to the taxpayer, the taxpayer's 2.1%
18		and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
19		of the difference between the credit taken and that actually
20		due, and that taxpayer shall be liable for penalties and
21		interest on such difference.
22		If a retailer of motor fuel is entitled to a credit under
23		Section 2d of this Act which exceeds the taxpayer's liability
24		to the Department under this Act for the month which the
25		taxpayer is filing a return, the Department shall issue the
26		taxpayer a credit memorandum for the excess.
27		Beginning January 1, 1990, each month the Department shall
28		pay into the Local Government Tax Fund, a special fund in the
29		State treasury which is hereby created, the net revenue
30		realized for the preceding month from the 1% tax on sales of
31		food for human consumption which is to be consumed off the
32		premises where it is sold (other than alcoholic beverages, soft
33		drinks and food which has been prepared for immediate
34		consumption) and prescription and nonprescription medicines,
35		drugs, medical appliances and insulin, urine testing
36		materials, syringes and needles used by diabetics.

1		Beginning January 1, 1990, each month the Department shall
2		pay into the County and Mass Transit District Fund, a special
3		fund in the State treasury which is hereby created, 4% of the
4		net revenue realized for the preceding month from the 6.25%
5		general rate.
6		Beginning August 1, 2000, each month the Department shall
7		pay into the County and Mass Transit District Fund 20% of the
8		net revenue realized for the preceding month from the 1.25%
9		rate on the selling price of motor fuel and gasohol.
10		Beginning January 1, 1990, each month the Department shall
11		pay into the Local Government Tax Fund 16% of the net revenue
12		realized for the preceding month from the 6.25% general rate on
13		the selling price of tangible personal property.
14		Beginning August 1, 2000, each month the Department shall
15		pay into the Local Government Tax Fund 80% of the net revenue
16		realized for the preceding month from the 1.25% rate on the
17		selling price of motor fuel and gasohol.
18		Of the remainder of the moneys received by the Department
19		pursuant to this Act, (a) 1.75% thereof shall be paid into the
20		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
21		and after July 1, 1989, 3.8% thereof shall be paid into the
22		Build Illinois Fund; provided, however, that if in any fiscal
23		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
24		may be, of the moneys received by the Department and required
25		to be paid into the Build Illinois Fund pursuant to this Act,
26		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
27		Act, and Section 9 of the Service Occupation Tax Act, such Acts
28		being hereinafter called the "Tax Acts" and such aggregate of
29		2.2% or 3.8%, as the case may be, of moneys being hereinafter
30		called the "Tax Act Amount", and (2) the amount transferred to
31		the Build Illinois Fund from the State and Local Sales Tax
32		Reform Fund shall be less than the Annual Specified Amount (as
33		hereinafter defined), an amount equal to the difference shall
34		be immediately paid into the Build Illinois Fund from other
35		moneys received by the Department pursuant to the Tax Acts; the
36		"Annual Specified Amount" means the amounts specified below for

1		fiscal years 1986 through 1993:
11		and means the Certified Annual Debt Service Requirement (as
12		defined in Section 13 of the Build Illinois Bond Act) or the
13		Tax Act Amount, whichever is greater, for fiscal year 1994 and
14		each fiscal year thereafter; and further provided, that if on
15		the last business day of any month the sum of (1) the Tax Act
16		Amount required to be deposited into the Build Illinois Bond
17		Account in the Build Illinois Fund during such month and (2)
18		the amount transferred to the Build Illinois Fund from the
19		State and Local Sales Tax Reform Fund shall have been less than
20		1/12 of the Annual Specified Amount, an amount equal to the
21		difference shall be immediately paid into the Build Illinois
22		Fund from other moneys received by the Department pursuant to
23		the Tax Acts; and, further provided, that in no event shall the
24		payments required under the preceding proviso result in
25		aggregate payments into the Build Illinois Fund pursuant to
26		this clause (b) for any fiscal year in excess of the greater of
27		(i) the Tax Act Amount or (ii) the Annual Specified Amount for
28		such fiscal year. The amounts payable into the Build Illinois
29		Fund under clause (b) of the first sentence in this paragraph
30		shall be payable only until such time as the aggregate amount
31		on deposit under each trust indenture securing Bonds issued and
32		outstanding pursuant to the Build Illinois Bond Act is
33		sufficient, taking into account any future investment income,
34		to fully provide, in accordance with such indenture, for the
35		defeasance of or the payment of the principal of, premium, if
36		any, and interest on the Bonds secured by such indenture and on

1		any Bonds expected to be issued thereafter and all fees and
2		costs payable with respect thereto, all as certified by the
3		Director of the Bureau of the Budget (now Governor's Office of
4		Management and Budget). If on the last business day of any
5		month in which Bonds are outstanding pursuant to the Build
6		Illinois Bond Act, the aggregate of moneys deposited in the
7		Build Illinois Bond Account in the Build Illinois Fund in such
8		month shall be less than the amount required to be transferred
9		in such month from the Build Illinois Bond Account to the Build
10		Illinois Bond Retirement and Interest Fund pursuant to Section
11		13 of the Build Illinois Bond Act, an amount equal to such
12		deficiency shall be immediately paid from other moneys received
13		by the Department pursuant to the Tax Acts to the Build
14		Illinois Fund; provided, however, that any amounts paid to the
15		Build Illinois Fund in any fiscal year pursuant to this
16		sentence shall be deemed to constitute payments pursuant to
17		clause (b) of the first sentence of this paragraph and shall
18		reduce the amount otherwise payable for such fiscal year
19		pursuant to that clause (b). The moneys received by the
20		Department pursuant to this Act and required to be deposited
21		into the Build Illinois Fund are subject to the pledge, claim
22		and charge set forth in Section 12 of the Build Illinois Bond
23		Act.
24		Subject to payment of amounts into the Build Illinois Fund
25		as provided in the preceding paragraph or in any amendment
26		thereto hereafter enacted, the following specified monthly
27		installment of the amount requested in the certificate of the
28		Chairman of the Metropolitan Pier and Exposition Authority
29		provided under Section 8.25f of the State Finance Act, but not
30		in excess of sums designated as "Total Deposit", shall be
31		deposited in the aggregate from collections under Section 9 of
32		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
33		9 of the Service Occupation Tax Act, and Section 3 of the
34		Retailers' Occupation Tax Act into the McCormick Place
35		Expansion Project Fund in the specified fiscal years.

5		Beginning July 20, 1993 and in each month of each fiscal
6		year thereafter, one-eighth of the amount requested in the
7		certificate of the Chairman of the Metropolitan Pier and
8		Exposition Authority for that fiscal year, less the amount
9		deposited into the McCormick Place Expansion Project Fund by
10		the State Treasurer in the respective month under subsection
11		(g) of Section 13 of the Metropolitan Pier and Exposition
12		Authority Act, plus cumulative deficiencies in the deposits
13		required under this Section for previous months and years,
14		shall be deposited into the McCormick Place Expansion Project
15		Fund, until the full amount requested for the fiscal year, but
16		not in excess of the amount specified above as "Total Deposit",
17		has been deposited.
18		Subject to payment of amounts into the Build Illinois Fund
19		and the McCormick Place Expansion Project Fund pursuant to the
20		preceding paragraphs or in any amendments thereto hereafter
21		enacted, beginning July 1, 1993, the Department shall each
22		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
23		the net revenue realized for the preceding month from the 6.25%
24		general rate on the selling price of tangible personal
25		property.
26		Subject to payment of amounts into the Build Illinois Fund
27		and the McCormick Place Expansion Project Fund pursuant to the
28		preceding paragraphs or in any amendments thereto hereafter
29		enacted, beginning with the receipt of the first report of
30		taxes paid by an eligible business and continuing for a 25-year
31		period, the Department shall each month pay into the Energy
32		Infrastructure Fund 80% of the net revenue realized from the
33		6.25% general rate on the selling price of Illinois-mined coal
34		that was sold to an eligible business. For purposes of this
35		paragraph, the term "eligible business" means a new electric
36		generating facility certified pursuant to Section 605-332 of

1		the Department of Commerce and Economic Opportunity Community
2		Affairs Law of the Civil Administrative Code of Illinois.
3		Of the remainder of the moneys received by the Department
4		pursuant to this Act, 75% thereof shall be paid into the State
5		Treasury and 25% shall be reserved in a special account and
6		used only for the transfer to the Common School Fund as part of
7		the monthly transfer from the General Revenue Fund in
8		accordance with Section 8a of the State Finance Act.
9		The Department may, upon separate written notice to a
10		taxpayer, require the taxpayer to prepare and file with the
11		Department on a form prescribed by the Department within not
12		less than 60 days after receipt of the notice an annual
13		information return for the tax year specified in the notice.
14		Such annual return to the Department shall include a statement
15		of gross receipts as shown by the retailer's last Federal
16		income tax return. If the total receipts of the business as
17		reported in the Federal income tax return do not agree with the
18		gross receipts reported to the Department of Revenue for the
19		same period, the retailer shall attach to his annual return a
20		schedule showing a reconciliation of the 2 amounts and the
21		reasons for the difference. The retailer's annual return to the
22		Department shall also disclose the cost of goods sold by the
23		retailer during the year covered by such return, opening and
24		closing inventories of such goods for such year, costs of goods
25		used from stock or taken from stock and given away by the
26		retailer during such year, payroll information of the
27		retailer's business during such year and any additional
28		reasonable information which the Department deems would be
29		helpful in determining the accuracy of the monthly, quarterly
30		or annual returns filed by such retailer as provided for in
31		this Section.
32		If the annual information return required by this Section
33		is not filed when and as required, the taxpayer shall be liable
34		as follows:
35		(i) Until January 1, 1994, the taxpayer shall be liable
36		for a penalty equal to 1/6 of 1% of the tax due from such

1		taxpayer under this Act during the period to be covered by
2		the annual return for each month or fraction of a month
3		until such return is filed as required, the penalty to be
4		assessed and collected in the same manner as any other
5		penalty provided for in this Act.
6		(ii) On and after January 1, 1994, the taxpayer shall
7		be liable for a penalty as described in Section 3-4 of the
8		Uniform Penalty and Interest Act.
9		The chief executive officer, proprietor, owner or highest
10		ranking manager shall sign the annual return to certify the
11		accuracy of the information contained therein. Any person who
12		willfully signs the annual return containing false or
13		inaccurate information shall be guilty of perjury and punished
14		accordingly. The annual return form prescribed by the
15		Department shall include a warning that the person signing the
16		return may be liable for perjury.
17		The provisions of this Section concerning the filing of an
18		annual information return do not apply to a retailer who is not
19		required to file an income tax return with the United States
20		Government.
21		As soon as possible after the first day of each month, upon
22		certification of the Department of Revenue, the Comptroller
23		shall order transferred and the Treasurer shall transfer from
24		the General Revenue Fund to the Motor Fuel Tax Fund an amount
25		equal to 1.7% of 80% of the net revenue realized under this Act
26		for the second preceding month. Beginning April 1, 2000, this
27		transfer is no longer required and shall not be made.
28		Net revenue realized for a month shall be the revenue
29		collected by the State pursuant to this Act, less the amount
30		paid out during that month as refunds to taxpayers for
31		overpayment of liability.
32		For greater simplicity of administration, manufacturers,
33		importers and wholesalers whose products are sold at retail in
34		Illinois by numerous retailers, and who wish to do so, may
35		assume the responsibility for accounting and paying to the
36		Department all tax accruing under this Act with respect to such

1		sales, if the retailers who are affected do not make written
2		objection to the Department to this arrangement.
3		Any person who promotes, organizes, provides retail
4		selling space for concessionaires or other types of sellers at
5		the Illinois State Fair, DuQuoin State Fair, county fairs,
6		local fairs, art shows, flea markets and similar exhibitions or
7		events, including any transient merchant as defined by Section
8		2 of the Transient Merchant Act of 1987, is required to file a
9		report with the Department providing the name of the merchant's
10		business, the name of the person or persons engaged in
11		merchant's business, the permanent address and Illinois
12		Retailers Occupation Tax Registration Number of the merchant,
13		the dates and location of the event and other reasonable
14		information that the Department may require. The report must be
15		filed not later than the 20th day of the month next following
16		the month during which the event with retail sales was held.
17		Any person who fails to file a report required by this Section
18		commits a business offense and is subject to a fine not to
19		exceed $250.
20		Any person engaged in the business of selling tangible
21		personal property at retail as a concessionaire or other type
22		of seller at the Illinois State Fair, county fairs, art shows,
23		flea markets and similar exhibitions or events, or any
24		transient merchants, as defined by Section 2 of the Transient
25		Merchant Act of 1987, may be required to make a daily report of
26		the amount of such sales to the Department and to make a daily
27		payment of the full amount of tax due. The Department shall
28		impose this requirement when it finds that there is a
29		significant risk of loss of revenue to the State at such an
30		exhibition or event. Such a finding shall be based on evidence
31		that a substantial number of concessionaires or other sellers
32		who are not residents of Illinois will be engaging in the
33		business of selling tangible personal property at retail at the
34		exhibition or event, or other evidence of a significant risk of
35		loss of revenue to the State. The Department shall notify
36		concessionaires and other sellers affected by the imposition of

1		this requirement. In the absence of notification by the
2		Department, the concessionaires and other sellers shall file
3		their returns as otherwise required in this Section.
4		(Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-208,
5		eff. 8-2-01; 92-484, eff. 8-23-01; 92-492, eff. 1-1-02; 92-600,
6		eff. 6-28-02; 92-651, eff. 7-11-02; 93-22, eff. 6-20-03; 93-24,
7		eff. 6-20-03; revised 10-15-03.)

Section 99. Effective date. This Act takes effect upon becoming law.