Sen. Michael Noland
Filed: 4/11/2008
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1 | AMENDMENT TO SENATE BILL 2912
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2 | AMENDMENT NO. ______. Amend Senate Bill 2912 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Department of Revenue Law of the
Civil | ||||||
5 | Administrative Code of Illinois is amended by adding Section | ||||||
6 | 2505-800 as follows: | ||||||
7 | (20 ILCS 2505/2505-800 new)
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8 | Sec. 2505-800. Credit memorandum. Notwithstanding the | ||||||
9 | provisions of any other Act to the contrary, if the Department, | ||||||
10 | after review of its records and without the submission by a | ||||||
11 | taxpayer of any additional documentation, returns, or | ||||||
12 | schedules, determines that an overpayment has occurred on an | ||||||
13 | original return filed under the Electricity Excise Tax Law, the | ||||||
14 | Telecommunications Excise Tax Act, the Simplified Municipal | ||||||
15 | Telecommunications Tax Act, the Telecommunications | ||||||
16 | Infrastructure Maintenance Fee Act, the Gas Revenue Tax Act, |
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1 | the Gas Use Tax Law, the Hotel Operators' Occupation Tax Act, | ||||||
2 | the Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco | ||||||
3 | Products Tax Act of 1995, the Bingo License and Tax Act, the | ||||||
4 | Charitable Games Act, the Illinois Pull Tabs and Jar Games Act, | ||||||
5 | and the Liquor Control Act of 1934, it shall issue a credit | ||||||
6 | memorandum to the taxpayer without the necessity of the | ||||||
7 | taxpayer filing a claim for credit. The time period during | ||||||
8 | which the Department may issue a credit memorandum under this | ||||||
9 | Section shall be limited to the period of 3 years from the date | ||||||
10 | of the overpayment by the taxpayer. Issuance of a credit | ||||||
11 | memorandum under this Section is subject to the offset | ||||||
12 | provisions of Section 2505-275 of this Act.
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13 | (30 ILCS 210/8 rep.)
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14 | Section 10. The Illinois State Collection Act of 1986 is | ||||||
15 | amended by repealing Section 8.
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16 | Section 15. The Illinois Procurement Code is amended by | ||||||
17 | changing Sections 50-11 and 50-60 as follows:
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18 | (30 ILCS 500/50-11)
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19 | Sec. 50-11. Debt delinquency.
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20 | (a) No person shall submit a bid for or enter into a | ||||||
21 | contract with a State
agency under this Code if that person | ||||||
22 | knows or should know that he or she or
any affiliate is
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23 | delinquent in the payment of any debt to the State, unless the |
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1 | person or
affiliate has
entered into a deferred payment plan to | ||||||
2 | pay off the debt. For purposes of this
Section, the phrase | ||||||
3 | "delinquent in the payment of any debt" shall be determined
by | ||||||
4 | the Debt Collection Board or, after the effective date of this | ||||||
5 | amendatory Act of the 95th General Assembly, the Department of | ||||||
6 | Revenue .
For purposes of this Section, the term "affiliate" | ||||||
7 | means any entity that (1)
directly,
indirectly, or | ||||||
8 | constructively controls another entity, (2) is directly,
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9 | indirectly, or
constructively controlled by another entity, or | ||||||
10 | (3) is subject to the control
of
a common
entity. For purposes | ||||||
11 | of this subsection (a), a person controls an entity if the
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12 | person owns,
directly or individually, more than 10% of the | ||||||
13 | voting securities of that
entity.
As used in
this subsection | ||||||
14 | (a), the term "voting security" means a security that (1)
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15 | confers upon the
holder the right to vote for the election of | ||||||
16 | members of the board of directors
or similar
governing body of | ||||||
17 | the business or (2) is convertible into, or entitles the
holder | ||||||
18 | to receive
upon its exercise, a security that confers such a | ||||||
19 | right to vote. A general
partnership
interest is a voting | ||||||
20 | security.
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21 | (b) Every bid submitted to and contract executed by the | ||||||
22 | State shall contain
a certification by the bidder or contractor | ||||||
23 | that the contractor and its
affiliate is not barred
from being | ||||||
24 | awarded a contract under this Section and that the contractor
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25 | acknowledges that the contracting State agency may declare the | ||||||
26 | contract void if
the certification completed pursuant to this |
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1 | subsection (b) is false.
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2 | (Source: P.A. 92-404, eff. 7-1-02; 93-25, eff. 6-20-03.)
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3 | (30 ILCS 500/50-60)
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4 | Sec. 50-60. Voidable contracts.
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5 | (a) If any contract is entered into or purchase
or | ||||||
6 | expenditure of funds is made in violation of this Code or any | ||||||
7 | other law,
the contract may be declared void by the chief | ||||||
8 | procurement officer or may be
ratified and affirmed,
provided | ||||||
9 | the chief procurement officer determines that ratification is | ||||||
10 | in the
best interests of the
State. If the contract is ratified | ||||||
11 | and affirmed, it shall be without prejudice
to the State's | ||||||
12 | rights to any appropriate damages.
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13 | (b) If, during the term of a contract, the contracting | ||||||
14 | agency determines
that the contractor is delinquent in the | ||||||
15 | payment of debt as set forth in
Section 50-11 of this Code, the | ||||||
16 | State agency may declare the contract void if
it determines | ||||||
17 | that voiding the contract is in the best interests of the | ||||||
18 | State.
The Debt Collection Board or, after the effective date | ||||||
19 | of this amendatory Act of the 95th General Assembly, the | ||||||
20 | Department of Revenue shall adopt rules for the implementation | ||||||
21 | of this
subsection (b).
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22 | (c) If, during the term of a contract, the contracting | ||||||
23 | agency determines
that the contractor is in violation of | ||||||
24 | Section 50-10.5 of this Code, the
contracting
agency shall | ||||||
25 | declare the contract void.
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1 | (Source: P.A. 92-404, eff. 7-1-02; 93-600, eff. 1-1-04.)
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2 | Section 20. The Illinois Income Tax Act is amended by | ||||||
3 | changing Sections 201, 203, 204, 205, 214, 304, 502, 506, 601, | ||||||
4 | 701, 702, 703, 704A, 804, 909, 911, 1002, 1101, and 1405.4 as | ||||||
5 | follows:
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6 | (35 ILCS 5/201) (from Ch. 120, par. 2-201)
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7 | Sec. 201. Tax Imposed.
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8 | (a) In general. A tax measured by net income is hereby | ||||||
9 | imposed on every
individual, corporation, trust and estate for | ||||||
10 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
11 | of earning or receiving income in or
as a resident of this | ||||||
12 | State. Such tax shall be in addition to all other
occupation or | ||||||
13 | privilege taxes imposed by this State or by any municipal
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14 | corporation or political subdivision thereof.
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15 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
16 | Section shall be
determined as follows, except as adjusted by | ||||||
17 | subsection (d-1):
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18 | (1) In the case of an individual, trust or estate, for | ||||||
19 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
20 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
21 | year.
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22 | (2) In the case of an individual, trust or estate, for | ||||||
23 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
24 | after June 30, 1989, an amount
equal to the sum of (i) 2 |
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1 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
2 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
3 | 3% of the
taxpayer's net income for the period after June | ||||||
4 | 30, 1989, as calculated
under Section 202.3.
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5 | (3) In the case of an individual, trust or estate, for | ||||||
6 | taxable years
beginning after June 30, 1989, an amount | ||||||
7 | equal to 3% of the taxpayer's net
income for the taxable | ||||||
8 | year.
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9 | (4) (Blank).
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10 | (5) (Blank).
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11 | (6) In the case of a corporation, for taxable years
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12 | ending prior to July 1, 1989, an amount equal to 4% of the
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13 | taxpayer's net income for the taxable year.
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14 | (7) In the case of a corporation, for taxable years | ||||||
15 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
16 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
17 | taxpayer's net income for the period prior to July 1, 1989,
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18 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
19 | taxpayer's net
income for the period after June 30, 1989, | ||||||
20 | as calculated under Section
202.3.
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21 | (8) In the case of a corporation, for taxable years | ||||||
22 | beginning after
June 30, 1989, an amount equal to 4.8% of | ||||||
23 | the taxpayer's net income for the
taxable year.
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24 | (c) Personal Property Tax Replacement Income Tax.
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25 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
26 | income
tax, there is also hereby imposed the Personal Property |
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1 | Tax Replacement
Income Tax measured by net income on every | ||||||
2 | corporation (including Subchapter
S corporations), partnership | ||||||
3 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
4 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
5 | income in or as a resident of this State. The Personal Property
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6 | Tax Replacement Income Tax shall be in addition to the income | ||||||
7 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
8 | addition to all other
occupation or privilege taxes imposed by | ||||||
9 | this State or by any municipal
corporation or political | ||||||
10 | subdivision thereof.
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11 | (d) Additional Personal Property Tax Replacement Income | ||||||
12 | Tax Rates.
The personal property tax replacement income tax | ||||||
13 | imposed by this subsection
and subsection (c) of this Section | ||||||
14 | in the case of a corporation, other
than a Subchapter S | ||||||
15 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
16 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
17 | income for the taxable year, except that
beginning on January | ||||||
18 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
19 | subsection shall be reduced to 2.5%, and in the case of a
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20 | partnership, trust or a Subchapter S corporation shall be an | ||||||
21 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
22 | for the taxable year.
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23 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
24 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
25 | Illinois Insurance Code,
whose state or country of domicile | ||||||
26 | imposes on insurers domiciled in Illinois
a retaliatory tax |
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1 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
2 | are 50% or more of its total insurance
premiums as determined | ||||||
3 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
4 | that for purposes of this determination premiums from | ||||||
5 | reinsurance do
not include premiums from inter-affiliate | ||||||
6 | reinsurance arrangements),
beginning with taxable years ending | ||||||
7 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
8 | imposed by subsections (b) and (d) shall be reduced (but not
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9 | increased) to the rate at which the total amount of tax imposed | ||||||
10 | under this Act,
net of all credits allowed under this Act, | ||||||
11 | shall equal (i) the total amount of
tax that would be imposed | ||||||
12 | on the foreign insurer's net income allocable to
Illinois for | ||||||
13 | the taxable year by such foreign insurer's state or country of
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14 | domicile if that net income were subject to all income taxes | ||||||
15 | and taxes
measured by net income imposed by such foreign | ||||||
16 | insurer's state or country of
domicile, net of all credits | ||||||
17 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
18 | income by the foreign insurer's state of domicile.
For the | ||||||
19 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
20 | a
mutual insurer under common management.
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21 | (1) For the purposes of subsection (d-1), in no event | ||||||
22 | shall the sum of the
rates of tax imposed by subsections | ||||||
23 | (b) and (d) be reduced below the rate at
which the sum of:
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24 | (A) the total amount of tax imposed on such foreign | ||||||
25 | insurer under
this Act for a taxable year, net of all | ||||||
26 | credits allowed under this Act, plus
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1 | (B) the privilege tax imposed by Section 409 of the | ||||||
2 | Illinois Insurance
Code, the fire insurance company | ||||||
3 | tax imposed by Section 12 of the Fire
Investigation | ||||||
4 | Act, and the fire department taxes imposed under | ||||||
5 | Section 11-10-1
of the Illinois Municipal Code,
| ||||||
6 | equals 1.25% for taxable years ending prior to December 31, | ||||||
7 | 2003, or
1.75% for taxable years ending on or after | ||||||
8 | December 31, 2003, of the net
taxable premiums written for | ||||||
9 | the taxable year,
as described by subsection (1) of Section | ||||||
10 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
11 | no event increase the rates imposed under subsections
(b) | ||||||
12 | and (d).
| ||||||
13 | (2) Any reduction in the rates of tax imposed by this | ||||||
14 | subsection shall be
applied first against the rates imposed | ||||||
15 | by subsection (b) and only after the
tax imposed by | ||||||
16 | subsection (a) net of all credits allowed under this | ||||||
17 | Section
other than the credit allowed under subsection (i) | ||||||
18 | has been reduced to zero,
against the rates imposed by | ||||||
19 | subsection (d).
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20 | This subsection (d-1) is exempt from the provisions of | ||||||
21 | Section 250.
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22 | (e) Investment credit. A taxpayer shall be allowed a credit
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23 | against the Personal Property Tax Replacement Income Tax for
| ||||||
24 | investment in qualified property.
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25 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
26 | of
the basis of qualified property placed in service during |
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1 | the taxable year,
provided such property is placed in | ||||||
2 | service on or after
July 1, 1984. There shall be allowed an | ||||||
3 | additional credit equal
to .5% of the basis of qualified | ||||||
4 | property placed in service during the
taxable year, | ||||||
5 | provided such property is placed in service on or
after | ||||||
6 | July 1, 1986, and the taxpayer's base employment
within | ||||||
7 | Illinois has increased by 1% or more over the preceding | ||||||
8 | year as
determined by the taxpayer's employment records | ||||||
9 | filed with the
Illinois Department of Employment Security. | ||||||
10 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
11 | met the 1% growth in base employment for
the first year in | ||||||
12 | which they file employment records with the Illinois
| ||||||
13 | Department of Employment Security. The provisions added to | ||||||
14 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
15 | Act 87-895) shall be
construed as declaratory of existing | ||||||
16 | law and not as a new enactment. If,
in any year, the | ||||||
17 | increase in base employment within Illinois over the
| ||||||
18 | preceding year is less than 1%, the additional credit shall | ||||||
19 | be limited to that
percentage times a fraction, the | ||||||
20 | numerator of which is .5% and the denominator
of which is | ||||||
21 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
22 | not be
allowed to the extent that it would reduce a | ||||||
23 | taxpayer's liability in any tax
year below zero, nor may | ||||||
24 | any credit for qualified property be allowed for any
year | ||||||
25 | other than the year in which the property was placed in | ||||||
26 | service in
Illinois. For tax years ending on or after |
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1 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
2 | credit shall be allowed for the tax year in
which the | ||||||
3 | property is placed in service, or, if the amount of the | ||||||
4 | credit
exceeds the tax liability for that year, whether it | ||||||
5 | exceeds the original
liability or the liability as later | ||||||
6 | amended, such excess may be carried
forward and applied to | ||||||
7 | the tax liability of the 5 taxable years following
the | ||||||
8 | excess credit years if the taxpayer (i) makes investments | ||||||
9 | which cause
the creation of a minimum of 2,000 full-time | ||||||
10 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
11 | enterprise zone established pursuant to the Illinois
| ||||||
12 | Enterprise Zone Act and (iii) is certified by the | ||||||
13 | Department of Commerce
and Community Affairs (now | ||||||
14 | Department of Commerce and Economic Opportunity) as | ||||||
15 | complying with the requirements specified in
clause (i) and | ||||||
16 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
17 | Community Affairs (now Department of Commerce and Economic | ||||||
18 | Opportunity) shall notify the Department of Revenue of all | ||||||
19 | such
certifications immediately. For tax years ending | ||||||
20 | after December 31, 1988,
the credit shall be allowed for | ||||||
21 | the tax year in which the property is
placed in service, | ||||||
22 | or, if the amount of the credit exceeds the tax
liability | ||||||
23 | for that year, whether it exceeds the original liability or | ||||||
24 | the
liability as later amended, such excess may be carried | ||||||
25 | forward and applied
to the tax liability of the 5 taxable | ||||||
26 | years following the excess credit
years. The credit shall |
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1 | be applied to the earliest year for which there is
a | ||||||
2 | liability. If there is credit from more than one tax year | ||||||
3 | that is
available to offset a liability, earlier credit | ||||||
4 | shall be applied first.
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5 | (2) The term "qualified property" means property | ||||||
6 | which:
| ||||||
7 | (A) is tangible, whether new or used, including | ||||||
8 | buildings and structural
components of buildings and | ||||||
9 | signs that are real property, but not including
land or | ||||||
10 | improvements to real property that are not a structural | ||||||
11 | component of a
building such as landscaping, sewer | ||||||
12 | lines, local access roads, fencing, parking
lots, and | ||||||
13 | other appurtenances;
| ||||||
14 | (B) is depreciable pursuant to Section 167 of the | ||||||
15 | Internal Revenue Code,
except that "3-year property" | ||||||
16 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
17 | eligible for the credit provided by this subsection | ||||||
18 | (e);
| ||||||
19 | (C) is acquired by purchase as defined in Section | ||||||
20 | 179(d) of
the Internal Revenue Code;
| ||||||
21 | (D) is used in Illinois by a taxpayer who is | ||||||
22 | primarily engaged in
manufacturing, or in mining coal | ||||||
23 | or fluorite, or in retailing, or was placed in service | ||||||
24 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
25 | Zone established pursuant to the River Edge | ||||||
26 | Redevelopment Zone Act; and
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1 | (E) has not previously been used in Illinois in | ||||||
2 | such a manner and by
such a person as would qualify for | ||||||
3 | the credit provided by this subsection
(e) or | ||||||
4 | subsection (f).
| ||||||
5 | (3) For purposes of this subsection (e), | ||||||
6 | "manufacturing" means
the material staging and production | ||||||
7 | of tangible personal property by
procedures commonly | ||||||
8 | regarded as manufacturing, processing, fabrication, or
| ||||||
9 | assembling which changes some existing material into new | ||||||
10 | shapes, new
qualities, or new combinations. For purposes of | ||||||
11 | this subsection
(e) the term "mining" shall have the same | ||||||
12 | meaning as the term "mining" in
Section 613(c) of the | ||||||
13 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
14 | the term "retailing" means the sale of tangible personal | ||||||
15 | property or
services rendered in conjunction with the sale | ||||||
16 | of tangible consumer goods
or commodities.
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17 | (4) The basis of qualified property shall be the basis
| ||||||
18 | used to compute the depreciation deduction for federal | ||||||
19 | income tax purposes.
| ||||||
20 | (5) If the basis of the property for federal income tax | ||||||
21 | depreciation
purposes is increased after it has been placed | ||||||
22 | in service in Illinois by
the taxpayer, the amount of such | ||||||
23 | increase shall be deemed property placed
in service on the | ||||||
24 | date of such increase in basis.
| ||||||
25 | (6) The term "placed in service" shall have the same
| ||||||
26 | meaning as under Section 46 of the Internal Revenue Code.
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1 | (7) If during any taxable year, any property ceases to
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2 | be qualified property in the hands of the taxpayer within | ||||||
3 | 48 months after
being placed in service, or the situs of | ||||||
4 | any qualified property is
moved outside Illinois within 48 | ||||||
5 | months after being placed in service, the
Personal Property | ||||||
6 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
7 | increased. Such increase shall be determined by (i) | ||||||
8 | recomputing the
investment credit which would have been | ||||||
9 | allowed for the year in which
credit for such property was | ||||||
10 | originally allowed by eliminating such
property from such | ||||||
11 | computation and, (ii) subtracting such recomputed credit
| ||||||
12 | from the amount of credit previously allowed. For the | ||||||
13 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
14 | qualified property resulting
from a redetermination of the | ||||||
15 | purchase price shall be deemed a disposition
of qualified | ||||||
16 | property to the extent of such reduction.
| ||||||
17 | (8) Unless the investment credit is extended by law, | ||||||
18 | the
basis of qualified property shall not include costs | ||||||
19 | incurred after
December 31, 2008, except for costs incurred | ||||||
20 | pursuant to a binding
contract entered into on or before | ||||||
21 | December 31, 2008.
| ||||||
22 | (9) Each taxable year ending before December 31, 2000, | ||||||
23 | a partnership may
elect to pass through to its
partners the | ||||||
24 | credits to which the partnership is entitled under this | ||||||
25 | subsection
(e) for the taxable year. A partner may use the | ||||||
26 | credit allocated to him or her
under this paragraph only |
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| |||||||
1 | against the tax imposed in subsections (c) and (d) of
this | ||||||
2 | Section. If the partnership makes that election, those | ||||||
3 | credits shall be
allocated among the partners in the | ||||||
4 | partnership in accordance with the rules
set forth in | ||||||
5 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
6 | promulgated under that Section, and the allocated amount of | ||||||
7 | the credits shall
be allowed to the partners for that | ||||||
8 | taxable year. The partnership shall make
this election on | ||||||
9 | its Personal Property Tax Replacement Income Tax return for
| ||||||
10 | that taxable year. The election to pass through the credits | ||||||
11 | shall be
irrevocable.
| ||||||
12 | For taxable years ending on or after December 31, 2000, | ||||||
13 | a
partner that qualifies its
partnership for a subtraction | ||||||
14 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
15 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
16 | S
corporation for a subtraction under subparagraph (S) of | ||||||
17 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
18 | allowed a credit under this subsection
(e) equal to its | ||||||
19 | share of the credit earned under this subsection (e) during
| ||||||
20 | the taxable year by the partnership or Subchapter S | ||||||
21 | corporation, determined in
accordance with the | ||||||
22 | determination of income and distributive share of
income | ||||||
23 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
24 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
25 | of Section 250.
| ||||||
26 | (f) Investment credit; Enterprise Zone; River Edge |
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| |||||||
1 | Redevelopment Zone.
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2 | (1) A taxpayer shall be allowed a credit against the | ||||||
3 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
4 | investment in qualified
property which is placed in service | ||||||
5 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
6 | Enterprise Zone Act or, for property placed in service on | ||||||
7 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
8 | established pursuant to the River Edge Redevelopment Zone | ||||||
9 | Act. For partners, shareholders
of Subchapter S | ||||||
10 | corporations, and owners of limited liability companies,
| ||||||
11 | if the liability company is treated as a partnership for | ||||||
12 | purposes of
federal and State income taxation, there shall | ||||||
13 | be allowed a credit under
this subsection (f) to be | ||||||
14 | determined in accordance with the determination
of income | ||||||
15 | and distributive share of income under Sections 702 and 704 | ||||||
16 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
17 | shall be .5% of the
basis for such property. The credit | ||||||
18 | shall be available only in the taxable
year in which the | ||||||
19 | property is placed in service in the Enterprise Zone or | ||||||
20 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
21 | the extent that it would reduce a taxpayer's
liability for | ||||||
22 | the tax imposed by subsections (a) and (b) of this Section | ||||||
23 | to
below zero. For tax years ending on or after December | ||||||
24 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
25 | which the property is placed in
service, or, if the amount | ||||||
26 | of the credit exceeds the tax liability for that
year, |
| |||||||
| |||||||
1 | whether it exceeds the original liability or the liability | ||||||
2 | as later
amended, such excess may be carried forward and | ||||||
3 | applied to the tax
liability of the 5 taxable years | ||||||
4 | following the excess credit year.
The credit shall be | ||||||
5 | applied to the earliest year for which there is a
| ||||||
6 | liability. If there is credit from more than one tax year | ||||||
7 | that is available
to offset a liability, the credit | ||||||
8 | accruing first in time shall be applied
first.
| ||||||
9 | (2) The term qualified property means property which:
| ||||||
10 | (A) is tangible, whether new or used, including | ||||||
11 | buildings and
structural components of buildings;
| ||||||
12 | (B) is depreciable pursuant to Section 167 of the | ||||||
13 | Internal Revenue
Code, except that "3-year property" | ||||||
14 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
15 | eligible for the credit provided by this subsection | ||||||
16 | (f);
| ||||||
17 | (C) is acquired by purchase as defined in Section | ||||||
18 | 179(d) of
the Internal Revenue Code;
| ||||||
19 | (D) is used in the Enterprise Zone or River Edge | ||||||
20 | Redevelopment Zone by the taxpayer; and
| ||||||
21 | (E) has not been previously used in Illinois in | ||||||
22 | such a manner and by
such a person as would qualify for | ||||||
23 | the credit provided by this subsection
(f) or | ||||||
24 | subsection (e).
| ||||||
25 | (3) The basis of qualified property shall be the basis | ||||||
26 | used to compute
the depreciation deduction for federal |
| |||||||
| |||||||
1 | income tax purposes.
| ||||||
2 | (4) If the basis of the property for federal income tax | ||||||
3 | depreciation
purposes is increased after it has been placed | ||||||
4 | in service in the Enterprise
Zone or River Edge | ||||||
5 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
6 | increase shall be deemed property
placed in service on the | ||||||
7 | date of such increase in basis.
| ||||||
8 | (5) The term "placed in service" shall have the same | ||||||
9 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
10 | (6) If during any taxable year, any property ceases to | ||||||
11 | be qualified
property in the hands of the taxpayer within | ||||||
12 | 48 months after being placed
in service, or the situs of | ||||||
13 | any qualified property is moved outside the
Enterprise Zone | ||||||
14 | or River Edge Redevelopment Zone within 48 months after | ||||||
15 | being placed in service, the tax
imposed under subsections | ||||||
16 | (a) and (b) of this Section for such taxable year
shall be | ||||||
17 | increased. Such increase shall be determined by (i) | ||||||
18 | recomputing
the investment credit which would have been | ||||||
19 | allowed for the year in which
credit for such property was | ||||||
20 | originally allowed by eliminating such
property from such | ||||||
21 | computation, and (ii) subtracting such recomputed credit
| ||||||
22 | from the amount of credit previously allowed. For the | ||||||
23 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
24 | qualified property resulting
from a redetermination of the | ||||||
25 | purchase price shall be deemed a disposition
of qualified | ||||||
26 | property to the extent of such reduction.
|
| |||||||
| |||||||
1 | (7) There shall be allowed an additional credit equal | ||||||
2 | to 0.5% of the basis of qualified property placed in | ||||||
3 | service during the taxable year in a River Edge | ||||||
4 | Redevelopment Zone, provided such property is placed in | ||||||
5 | service on or after July 1, 2006, and the taxpayer's base | ||||||
6 | employment within Illinois has increased by 1% or more over | ||||||
7 | the preceding year as determined by the taxpayer's | ||||||
8 | employment records filed with the Illinois Department of | ||||||
9 | Employment Security. Taxpayers who are new to Illinois | ||||||
10 | shall be deemed to have met the 1% growth in base | ||||||
11 | employment for the first year in which they file employment | ||||||
12 | records with the Illinois Department of Employment | ||||||
13 | Security. If, in any year, the increase in base employment | ||||||
14 | within Illinois over the preceding year is less than 1%, | ||||||
15 | the additional credit shall be limited to that percentage | ||||||
16 | times a fraction, the numerator of which is 0.5% and the | ||||||
17 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
18 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
19 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
| ||||||
20 | (1) A taxpayer conducting a trade or business in an | ||||||
21 | enterprise zone
or a High Impact Business designated by the | ||||||
22 | Department of Commerce and
Economic Opportunity or for | ||||||
23 | taxable years ending on or after December 31, 2006, in a | ||||||
24 | River Edge Redevelopment Zone conducting a trade or | ||||||
25 | business in a federally designated
Foreign Trade Zone or | ||||||
26 | Sub-Zone shall be allowed a credit against the tax
imposed |
| |||||||
| |||||||
1 | by subsections (a) and (b) of this Section in the amount of | ||||||
2 | $500
per eligible employee hired to work in the zone during | ||||||
3 | the taxable year.
| ||||||
4 | (2) To qualify for the credit:
| ||||||
5 | (A) the taxpayer must hire 5 or more eligible | ||||||
6 | employees to work in an
enterprise zone, River Edge | ||||||
7 | Redevelopment Zone, or federally designated Foreign | ||||||
8 | Trade Zone or Sub-Zone
during the taxable year;
| ||||||
9 | (B) the taxpayer's total employment within the | ||||||
10 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
11 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
12 | must
increase by 5 or more full-time employees beyond | ||||||
13 | the total employed in that
zone at the end of the | ||||||
14 | previous tax year for which a jobs tax
credit under | ||||||
15 | this Section was taken, or beyond the total employed by | ||||||
16 | the
taxpayer as of December 31, 1985, whichever is | ||||||
17 | later; and
| ||||||
18 | (C) the eligible employees must be employed 180 | ||||||
19 | consecutive days in
order to be deemed hired for | ||||||
20 | purposes of this subsection.
| ||||||
21 | (3) An "eligible employee" means an employee who is:
| ||||||
22 | (A) Certified by the Department of Commerce and | ||||||
23 | Economic Opportunity
as "eligible for services" | ||||||
24 | pursuant to regulations promulgated in
accordance with | ||||||
25 | Title II of the Job Training Partnership Act, Training
| ||||||
26 | Services for the Disadvantaged or Title III of the Job |
| |||||||
| |||||||
1 | Training Partnership
Act, Employment and Training | ||||||
2 | Assistance for Dislocated Workers Program.
| ||||||
3 | (B) Hired after the enterprise zone, River Edge | ||||||
4 | Redevelopment Zone, or federally designated Foreign
| ||||||
5 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
6 | business was located in that zone, whichever is later.
| ||||||
7 | (C) Employed in the enterprise zone, River Edge | ||||||
8 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
9 | An employee is employed in an
enterprise zone , River | ||||||
10 | Edge Redevelopment Zone, or federally designated | ||||||
11 | Foreign Trade Zone or Sub-Zone
if his services are | ||||||
12 | rendered there or it is the base of
operations for the | ||||||
13 | services performed.
| ||||||
14 | (D) A full-time employee working 30 or more hours | ||||||
15 | per week.
| ||||||
16 | (4) For tax years ending on or after December 31, 1985 | ||||||
17 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
18 | for the tax year in which
the eligible employees are hired. | ||||||
19 | For tax years ending on or after
December 31, 1988, the | ||||||
20 | credit shall be allowed for the tax year immediately
| ||||||
21 | following the tax year in which the eligible employees are | ||||||
22 | hired. If the
amount of the credit exceeds the tax | ||||||
23 | liability for that year, whether it
exceeds the original | ||||||
24 | liability or the liability as later amended, such
excess | ||||||
25 | may be carried forward and applied to the tax liability of | ||||||
26 | the 5
taxable years following the excess credit year. The |
| |||||||
| |||||||
1 | credit shall be
applied to the earliest year for which | ||||||
2 | there is a liability. If there is
credit from more than one | ||||||
3 | tax year that is available to offset a liability,
earlier | ||||||
4 | credit shall be applied first.
| ||||||
5 | (5) The Department of Revenue shall promulgate such | ||||||
6 | rules and regulations
as may be deemed necessary to carry | ||||||
7 | out the purposes of this subsection (g).
| ||||||
8 | (6) The credit shall be available for eligible | ||||||
9 | employees hired on or
after January 1, 1986.
| ||||||
10 | (h) Investment credit; High Impact Business.
| ||||||
11 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
12 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
13 | allowed a credit
against the tax imposed by subsections (a) | ||||||
14 | and (b) of this Section for
investment in qualified
| ||||||
15 | property which is placed in service by a Department of | ||||||
16 | Commerce and Economic Opportunity
designated High Impact | ||||||
17 | Business. The credit shall be .5% of the basis
for such | ||||||
18 | property. The credit shall not be available (i) until the | ||||||
19 | minimum
investments in qualified property set forth in | ||||||
20 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
21 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
22 | time authorized in subsection (b-5) of the Illinois
| ||||||
23 | Enterprise Zone Act for entities designated as High Impact | ||||||
24 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
25 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
26 | Act, and shall not be allowed to the extent that it would
|
| |||||||
| |||||||
1 | reduce a taxpayer's liability for the tax imposed by | ||||||
2 | subsections (a) and (b) of
this Section to below zero. The | ||||||
3 | credit applicable to such investments shall be
taken in the | ||||||
4 | taxable year in which such investments have been completed. | ||||||
5 | The
credit for additional investments beyond the minimum | ||||||
6 | investment by a designated
high impact business authorized | ||||||
7 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
8 | Enterprise Zone Act shall be available only in the taxable | ||||||
9 | year in
which the property is placed in service and shall | ||||||
10 | not be allowed to the extent
that it would reduce a | ||||||
11 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
12 | and (b) of this Section to below zero.
For tax years ending | ||||||
13 | on or after December 31, 1987, the credit shall be
allowed | ||||||
14 | for the tax year in which the property is placed in | ||||||
15 | service, or, if
the amount of the credit exceeds the tax | ||||||
16 | liability for that year, whether
it exceeds the original | ||||||
17 | liability or the liability as later amended, such
excess | ||||||
18 | may be carried forward and applied to the tax liability of | ||||||
19 | the 5
taxable years following the excess credit year. The | ||||||
20 | credit shall be
applied to the earliest year for which | ||||||
21 | there is a liability. If there is
credit from more than one | ||||||
22 | tax year that is available to offset a liability,
the | ||||||
23 | credit accruing first in time shall be applied first.
| ||||||
24 | Changes made in this subdivision (h)(1) by Public Act | ||||||
25 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
26 | reflect existing law.
|
| |||||||
| |||||||
1 | (2) The term qualified property means property which:
| ||||||
2 | (A) is tangible, whether new or used, including | ||||||
3 | buildings and
structural components of buildings;
| ||||||
4 | (B) is depreciable pursuant to Section 167 of the | ||||||
5 | Internal Revenue
Code, except that "3-year property" | ||||||
6 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
7 | eligible for the credit provided by this subsection | ||||||
8 | (h);
| ||||||
9 | (C) is acquired by purchase as defined in Section | ||||||
10 | 179(d) of the
Internal Revenue Code; and
| ||||||
11 | (D) is not eligible for the Enterprise Zone | ||||||
12 | Investment Credit provided
by subsection (f) of this | ||||||
13 | Section.
| ||||||
14 | (3) The basis of qualified property shall be the basis | ||||||
15 | used to compute
the depreciation deduction for federal | ||||||
16 | income tax purposes.
| ||||||
17 | (4) If the basis of the property for federal income tax | ||||||
18 | depreciation
purposes is increased after it has been placed | ||||||
19 | in service in a federally
designated Foreign Trade Zone or | ||||||
20 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
21 | such increase shall be deemed property placed in service on
| ||||||
22 | the date of such increase in basis.
| ||||||
23 | (5) The term "placed in service" shall have the same | ||||||
24 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
25 | (6) If during any taxable year ending on or before | ||||||
26 | December 31, 1996,
any property ceases to be qualified
|
| |||||||
| |||||||
1 | property in the hands of the taxpayer within 48 months | ||||||
2 | after being placed
in service, or the situs of any | ||||||
3 | qualified property is moved outside
Illinois within 48 | ||||||
4 | months after being placed in service, the tax imposed
under | ||||||
5 | subsections (a) and (b) of this Section for such taxable | ||||||
6 | year shall
be increased. Such increase shall be determined | ||||||
7 | by (i) recomputing the
investment credit which would have | ||||||
8 | been allowed for the year in which
credit for such property | ||||||
9 | was originally allowed by eliminating such
property from | ||||||
10 | such computation, and (ii) subtracting such recomputed | ||||||
11 | credit
from the amount of credit previously allowed. For | ||||||
12 | the purposes of this
paragraph (6), a reduction of the | ||||||
13 | basis of qualified property resulting
from a | ||||||
14 | redetermination of the purchase price shall be deemed a | ||||||
15 | disposition
of qualified property to the extent of such | ||||||
16 | reduction.
| ||||||
17 | (7) Beginning with tax years ending after December 31, | ||||||
18 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
19 | subsection (h) and thereby is
granted a tax abatement and | ||||||
20 | the taxpayer relocates its entire facility in
violation of | ||||||
21 | the explicit terms and length of the contract under Section
| ||||||
22 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
23 | subsections
(a) and (b) of this Section shall be increased | ||||||
24 | for the taxable year
in which the taxpayer relocated its | ||||||
25 | facility by an amount equal to the
amount of credit | ||||||
26 | received by the taxpayer under this subsection (h).
|
| |||||||
| |||||||
1 | (i) Credit for Personal Property Tax Replacement Income | ||||||
2 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
3 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
4 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
5 | (d) of this Section. This credit shall be computed by | ||||||
6 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
7 | Section by a fraction, the numerator
of which is base income | ||||||
8 | allocable to Illinois and the denominator of which is
Illinois | ||||||
9 | base income, and further multiplying the product by the tax | ||||||
10 | rate
imposed by subsections (a) and (b) of this Section.
| ||||||
11 | Any credit earned on or after December 31, 1986 under
this | ||||||
12 | subsection which is unused in the year
the credit is computed | ||||||
13 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
14 | and (b) for that year (whether it exceeds the original
| ||||||
15 | liability or the liability as later amended) may be carried | ||||||
16 | forward and
applied to the tax liability imposed by subsections | ||||||
17 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
18 | year, provided that no credit may
be carried forward to any | ||||||
19 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
20 | applied first to the earliest year for which there is a | ||||||
21 | liability. If
there is a credit under this subsection from more | ||||||
22 | than one tax year that is
available to offset a liability the | ||||||
23 | earliest credit arising under this
subsection shall be applied | ||||||
24 | first.
| ||||||
25 | If, during any taxable year ending on or after December 31, | ||||||
26 | 1986, the
tax imposed by subsections (c) and (d) of this |
| |||||||
| |||||||
1 | Section for which a taxpayer
has claimed a credit under this | ||||||
2 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
3 | shall also be reduced. Such reduction shall be
determined by | ||||||
4 | recomputing the credit to take into account the reduced tax
| ||||||
5 | imposed by subsections (c) and (d). If any portion of the
| ||||||
6 | reduced amount of credit has been carried to a different | ||||||
7 | taxable year, an
amended return shall be filed for such taxable | ||||||
8 | year to reduce the amount of
credit claimed.
| ||||||
9 | (j) Training expense credit. Beginning with tax years | ||||||
10 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
11 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
12 | imposed by subsections (a) and (b) under this Section
for all | ||||||
13 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
14 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
15 | of Illinois by a taxpayer, for educational or vocational | ||||||
16 | training in
semi-technical or technical fields or semi-skilled | ||||||
17 | or skilled fields, which
were deducted from gross income in the | ||||||
18 | computation of taxable income. The
credit against the tax | ||||||
19 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
20 | training expenses. For partners, shareholders of subchapter S
| ||||||
21 | corporations, and owners of limited liability companies, if the | ||||||
22 | liability
company is treated as a partnership for purposes of | ||||||
23 | federal and State income
taxation, there shall be allowed a | ||||||
24 | credit under this subsection (j) to be
determined in accordance | ||||||
25 | with the determination of income and distributive
share of | ||||||
26 | income under Sections 702 and 704 and subchapter S of the |
| |||||||
| |||||||
1 | Internal
Revenue Code.
| ||||||
2 | Any credit allowed under this subsection which is unused in | ||||||
3 | the year
the credit is earned may be carried forward to each of | ||||||
4 | the 5 taxable
years following the year for which the credit is | ||||||
5 | first computed until it is
used. This credit shall be applied | ||||||
6 | first to the earliest year for which
there is a liability. If | ||||||
7 | there is a credit under this subsection from more
than one tax | ||||||
8 | year that is available to offset a liability the earliest
| ||||||
9 | credit arising under this subsection shall be applied first. No | ||||||
10 | carryforward
credit may be claimed in any tax year ending on or | ||||||
11 | after
December 31, 2003.
| ||||||
12 | (k) Research and development credit.
| ||||||
13 | For tax years ending after July 1, 1990 and prior to
| ||||||
14 | December 31, 2003, and beginning again for tax years ending on | ||||||
15 | or after December 31, 2004, a taxpayer shall be
allowed a | ||||||
16 | credit against the tax imposed by subsections (a) and (b) of | ||||||
17 | this
Section for increasing research activities in this State. | ||||||
18 | The credit
allowed against the tax imposed by subsections (a) | ||||||
19 | and (b) shall be equal
to 6 1/2% of the qualifying expenditures | ||||||
20 | for increasing research activities
in this State. For partners, | ||||||
21 | shareholders of subchapter S corporations, and
owners of | ||||||
22 | limited liability companies, if the liability company is | ||||||
23 | treated as a
partnership for purposes of federal and State | ||||||
24 | income taxation, there shall be
allowed a credit under this | ||||||
25 | subsection to be determined in accordance with the
| ||||||
26 | determination of income and distributive share of income under |
| |||||||
| |||||||
1 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
2 | Code.
| ||||||
3 | For purposes of this subsection, "qualifying expenditures" | ||||||
4 | means the
qualifying expenditures as defined for the federal | ||||||
5 | credit for increasing
research activities which would be | ||||||
6 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
7 | which are conducted in this State, "qualifying
expenditures for | ||||||
8 | increasing research activities in this State" means the
excess | ||||||
9 | of qualifying expenditures for the taxable year in which | ||||||
10 | incurred
over qualifying expenditures for the base period, | ||||||
11 | "qualifying expenditures
for the base period" means the average | ||||||
12 | of the qualifying expenditures for
each year in the base | ||||||
13 | period, and "base period" means the 3 taxable years
immediately | ||||||
14 | preceding the taxable year for which the determination is
being | ||||||
15 | made.
| ||||||
16 | Any credit in excess of the tax liability for the taxable | ||||||
17 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
18 | unused credit shown on its final completed return carried over | ||||||
19 | as a credit
against the tax liability for the following 5 | ||||||
20 | taxable years or until it has
been fully used, whichever occurs | ||||||
21 | first; provided that no credit earned in a tax year ending | ||||||
22 | prior to December 31, 2003 may be carried forward to any year | ||||||
23 | ending on or after December 31, 2003.
| ||||||
24 | If an unused credit is carried forward to a given year from | ||||||
25 | 2 or more
earlier years, that credit arising in the earliest | ||||||
26 | year will be applied
first against the tax liability for the |
| |||||||
| |||||||
1 | given year. If a tax liability for
the given year still | ||||||
2 | remains, the credit from the next earliest year will
then be | ||||||
3 | applied, and so on, until all credits have been used or no tax
| ||||||
4 | liability for the given year remains. Any remaining unused | ||||||
5 | credit or
credits then will be carried forward to the next | ||||||
6 | following year in which a
tax liability is incurred, except | ||||||
7 | that no credit can be carried forward to
a year which is more | ||||||
8 | than 5 years after the year in which the expense for
which the | ||||||
9 | credit is given was incurred.
| ||||||
10 | No inference shall be drawn from this amendatory Act of the | ||||||
11 | 91st General
Assembly in construing this Section for taxable | ||||||
12 | years beginning before January
1, 1999.
| ||||||
13 | (l) Environmental Remediation Tax Credit.
| ||||||
14 | (i) For tax years ending after December 31, 1997 and on | ||||||
15 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
16 | credit against the tax
imposed by subsections (a) and (b) | ||||||
17 | of this Section for certain amounts paid
for unreimbursed | ||||||
18 | eligible remediation costs, as specified in this | ||||||
19 | subsection.
For purposes of this Section, "unreimbursed | ||||||
20 | eligible remediation costs" means
costs approved by the | ||||||
21 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
22 | Section 58.14 of the Environmental Protection Act that were | ||||||
23 | paid in performing
environmental remediation at a site for | ||||||
24 | which a No Further Remediation Letter
was issued by the | ||||||
25 | Agency and recorded under Section 58.10 of the | ||||||
26 | Environmental
Protection Act. The credit must be claimed |
| |||||||
| |||||||
1 | for the taxable year in which
Agency approval of the | ||||||
2 | eligible remediation costs is granted. The credit is
not | ||||||
3 | available to any taxpayer if the taxpayer or any related | ||||||
4 | party caused or
contributed to, in any material respect, a | ||||||
5 | release of regulated substances on,
in, or under the site | ||||||
6 | that was identified and addressed by the remedial
action | ||||||
7 | pursuant to the Site Remediation Program of the | ||||||
8 | Environmental Protection
Act. After the Pollution Control | ||||||
9 | Board rules are adopted pursuant to the
Illinois | ||||||
10 | Administrative Procedure Act for the administration and | ||||||
11 | enforcement of
Section 58.9 of the Environmental | ||||||
12 | Protection Act, determinations as to credit
availability | ||||||
13 | for purposes of this Section shall be made consistent with | ||||||
14 | those
rules. For purposes of this Section, "taxpayer" | ||||||
15 | includes a person whose tax
attributes the taxpayer has | ||||||
16 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
17 | and "related party" includes the persons disallowed a | ||||||
18 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
19 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
20 | a related taxpayer, as well as any of its
partners. The | ||||||
21 | credit allowed against the tax imposed by subsections (a) | ||||||
22 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
23 | remediation costs in
excess of $100,000 per site, except | ||||||
24 | that the $100,000 threshold shall not apply
to any site | ||||||
25 | contained in an enterprise zone as determined by the | ||||||
26 | Department of
Commerce and Community Affairs (now |
| |||||||
| |||||||
1 | Department of Commerce and Economic Opportunity). The | ||||||
2 | total credit allowed shall not exceed
$40,000 per year with | ||||||
3 | a maximum total of $150,000 per site. For partners and
| ||||||
4 | shareholders of subchapter S corporations, there shall be | ||||||
5 | allowed a credit
under this subsection to be determined in | ||||||
6 | accordance with the determination of
income and | ||||||
7 | distributive share of income under Sections 702 and 704 and
| ||||||
8 | subchapter S of the Internal Revenue Code.
| ||||||
9 | (ii) A credit allowed under this subsection that is | ||||||
10 | unused in the year
the credit is earned may be carried | ||||||
11 | forward to each of the 5 taxable years
following the year | ||||||
12 | for which the credit is first earned until it is used.
The | ||||||
13 | term "unused credit" does not include any amounts of | ||||||
14 | unreimbursed eligible
remediation costs in excess of the | ||||||
15 | maximum credit per site authorized under
paragraph (i). | ||||||
16 | This credit shall be applied first to the earliest year
for | ||||||
17 | which there is a liability. If there is a credit under this | ||||||
18 | subsection
from more than one tax year that is available to | ||||||
19 | offset a liability, the
earliest credit arising under this | ||||||
20 | subsection shall be applied first. A
credit allowed under | ||||||
21 | this subsection may be sold to a buyer as part of a sale
of | ||||||
22 | all or part of the remediation site for which the credit | ||||||
23 | was granted. The
purchaser of a remediation site and the | ||||||
24 | tax credit shall succeed to the unused
credit and remaining | ||||||
25 | carry-forward period of the seller. To perfect the
| ||||||
26 | transfer, the assignor shall record the transfer in the |
| |||||||
| |||||||
1 | chain of title for the
site and provide written notice to | ||||||
2 | the Director of the Illinois Department of
Revenue of the | ||||||
3 | assignor's intent to sell the remediation site and the | ||||||
4 | amount of
the tax credit to be transferred as a portion of | ||||||
5 | the sale. In no event may a
credit be transferred to any | ||||||
6 | taxpayer if the taxpayer or a related party would
not be | ||||||
7 | eligible under the provisions of subsection (i).
| ||||||
8 | (iii) For purposes of this Section, the term "site" | ||||||
9 | shall have the same
meaning as under Section 58.2 of the | ||||||
10 | Environmental Protection Act.
| ||||||
11 | (m) Education expense credit. Beginning with tax years | ||||||
12 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
13 | of one or more qualifying pupils shall be allowed a credit
| ||||||
14 | against the tax imposed by subsections (a) and (b) of this | ||||||
15 | Section for
qualified education expenses incurred on behalf of | ||||||
16 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
17 | qualified education expenses, but in no
event may the total | ||||||
18 | credit under this subsection claimed by a
family that is the
| ||||||
19 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
20 | credit under
this subsection reduce the taxpayer's liability | ||||||
21 | under this Act to less than
zero. This subsection is exempt | ||||||
22 | from the provisions of Section 250 of this
Act.
| ||||||
23 | For purposes of this subsection:
| ||||||
24 | "Qualifying pupils" means individuals who (i) are | ||||||
25 | residents of the State of
Illinois, (ii) are under the age of | ||||||
26 | 21 at the close of the school year for
which a credit is |
| |||||||
| |||||||
1 | sought, and (iii) during the school year for which a credit
is | ||||||
2 | sought were full-time pupils enrolled in a kindergarten through | ||||||
3 | twelfth
grade education program at any school, as defined in | ||||||
4 | this subsection.
| ||||||
5 | "Qualified education expense" means the amount incurred
on | ||||||
6 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
7 | book fees, and
lab fees at the school in which the pupil is | ||||||
8 | enrolled during the regular school
year.
| ||||||
9 | "School" means any public or nonpublic elementary or | ||||||
10 | secondary school in
Illinois that is in compliance with Title | ||||||
11 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
12 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
13 | except that nothing shall be construed to require a child to
| ||||||
14 | attend any particular public or nonpublic school to qualify for | ||||||
15 | the credit
under this Section.
| ||||||
16 | "Custodian" means, with respect to qualifying pupils, an | ||||||
17 | Illinois resident
who is a parent, the parents, a legal | ||||||
18 | guardian, or the legal guardians of the
qualifying pupils.
| ||||||
19 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
20 | credit.
| ||||||
21 | (i) For tax years ending on or after December 31, 2006, | ||||||
22 | a taxpayer shall be allowed a credit against the tax | ||||||
23 | imposed by subsections (a) and (b) of this Section for | ||||||
24 | certain amounts paid for unreimbursed eligible remediation | ||||||
25 | costs, as specified in this subsection. For purposes of | ||||||
26 | this Section, "unreimbursed eligible remediation costs" |
| |||||||
| |||||||
1 | means costs approved by the Illinois Environmental | ||||||
2 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
3 | Environmental Protection Act that were paid in performing | ||||||
4 | environmental remediation at a site within a River Edge | ||||||
5 | Redevelopment Zone for which a No Further Remediation | ||||||
6 | Letter was issued by the Agency and recorded under Section | ||||||
7 | 58.10 of the Environmental Protection Act. The credit must | ||||||
8 | be claimed for the taxable year in which Agency approval of | ||||||
9 | the eligible remediation costs is granted. The credit is | ||||||
10 | not available to any taxpayer if the taxpayer or any | ||||||
11 | related party caused or contributed to, in any material | ||||||
12 | respect, a release of regulated substances on, in, or under | ||||||
13 | the site that was identified and addressed by the remedial | ||||||
14 | action pursuant to the Site Remediation Program of the | ||||||
15 | Environmental Protection Act. Determinations as to credit | ||||||
16 | availability for purposes of this Section shall be made | ||||||
17 | consistent with rules adopted by the Pollution Control | ||||||
18 | Board pursuant to the Illinois Administrative Procedure | ||||||
19 | Act for the administration and enforcement of Section 58.9 | ||||||
20 | of the Environmental Protection Act. For purposes of this | ||||||
21 | Section, "taxpayer" includes a person whose tax attributes | ||||||
22 | the taxpayer has succeeded to under Section 381 of the | ||||||
23 | Internal Revenue Code and "related party" includes the | ||||||
24 | persons disallowed a deduction for losses by paragraphs | ||||||
25 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
26 | Code by virtue of being a related taxpayer, as well as any |
| |||||||
| |||||||
1 | of its partners. The credit allowed against the tax imposed | ||||||
2 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
3 | unreimbursed eligible remediation costs in excess of | ||||||
4 | $100,000 per site. | ||||||
5 | (ii) A credit allowed under this subsection that is | ||||||
6 | unused in the year the credit is earned may be carried | ||||||
7 | forward to each of the 5 taxable years following the year | ||||||
8 | for which the credit is first earned until it is used. This | ||||||
9 | credit shall be applied first to the earliest year for | ||||||
10 | which there is a liability. If there is a credit under this | ||||||
11 | subsection from more than one tax year that is available to | ||||||
12 | offset a liability, the earliest credit arising under this | ||||||
13 | subsection shall be applied first. A credit allowed under | ||||||
14 | this subsection may be sold to a buyer as part of a sale of | ||||||
15 | all or part of the remediation site for which the credit | ||||||
16 | was granted. The purchaser of a remediation site and the | ||||||
17 | tax credit shall succeed to the unused credit and remaining | ||||||
18 | carry-forward period of the seller. To perfect the | ||||||
19 | transfer, the assignor shall record the transfer in the | ||||||
20 | chain of title for the site and provide written notice to | ||||||
21 | the Director of the Illinois Department of Revenue of the | ||||||
22 | assignor's intent to sell the remediation site and the | ||||||
23 | amount of the tax credit to be transferred as a portion of | ||||||
24 | the sale. In no event may a credit be transferred to any | ||||||
25 | taxpayer if the taxpayer or a related party would not be | ||||||
26 | eligible under the provisions of subsection (i). |
| |||||||
| |||||||
1 | (iii) For purposes of this Section, the term "site" | ||||||
2 | shall have the same meaning as under Section 58.2 of the | ||||||
3 | Environmental Protection Act. | ||||||
4 | (iv) This subsection is exempt from the provisions of | ||||||
5 | Section 250.
| ||||||
6 | (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
| ||||||
7 | (35 ILCS 5/203) (from Ch. 120, par. 2-203)
| ||||||
8 | Sec. 203. Base income defined.
| ||||||
9 | (a) Individuals.
| ||||||
10 | (1) In general. In the case of an individual, base | ||||||
11 | income means an
amount equal to the taxpayer's adjusted | ||||||
12 | gross income for the taxable
year as modified by paragraph | ||||||
13 | (2).
| ||||||
14 | (2) Modifications. The adjusted gross income referred | ||||||
15 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
16 | sum of the
following amounts:
| ||||||
17 | (A) An amount equal to all amounts paid or accrued to | ||||||
18 | the taxpayer
as interest or dividends during the | ||||||
19 | taxable year to the extent excluded
from gross income | ||||||
20 | in the computation of adjusted gross income, except | ||||||
21 | stock
dividends of qualified public utilities | ||||||
22 | described in Section 305(e) of the
Internal Revenue | ||||||
23 | Code;
| ||||||
24 | (B) An amount equal to the amount of tax imposed by | ||||||
25 | this Act to the
extent deducted from gross income in |
| |||||||
| |||||||
1 | the computation of adjusted gross
income for the | ||||||
2 | taxable year;
| ||||||
3 | (C) An amount equal to the amount received during | ||||||
4 | the taxable year
as a recovery or refund of real | ||||||
5 | property taxes paid with respect to the
taxpayer's | ||||||
6 | principal residence under the Revenue Act of
1939 and | ||||||
7 | for which a deduction was previously taken under | ||||||
8 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
9 | 1991, the retrospective application date of
Article 4 | ||||||
10 | of Public Act 87-17. In the case of multi-unit or | ||||||
11 | multi-use
structures and farm dwellings, the taxes on | ||||||
12 | the taxpayer's principal residence
shall be that | ||||||
13 | portion of the total taxes for the entire property | ||||||
14 | which is
attributable to such principal residence;
| ||||||
15 | (D) An amount equal to the amount of the capital | ||||||
16 | gain deduction
allowable under the Internal Revenue | ||||||
17 | Code, to the extent deducted from gross
income in the | ||||||
18 | computation of adjusted gross income;
| ||||||
19 | (D-5) An amount, to the extent not included in | ||||||
20 | adjusted gross income,
equal to the amount of money | ||||||
21 | withdrawn by the taxpayer in the taxable year from
a | ||||||
22 | medical care savings account and the interest earned on | ||||||
23 | the account in the
taxable year of a withdrawal | ||||||
24 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
25 | Care Savings Account Act or subsection (b) of Section | ||||||
26 | 20 of the
Medical Care Savings Account Act of 2000;
|
| |||||||
| |||||||
1 | (D-10) For taxable years ending after December 31, | ||||||
2 | 1997, an
amount equal to any eligible remediation costs | ||||||
3 | that the individual
deducted in computing adjusted | ||||||
4 | gross income and for which the
individual claims a | ||||||
5 | credit under subsection (l) of Section 201;
| ||||||
6 | (D-15) For taxable years 2001 and thereafter, an | ||||||
7 | amount equal to the
bonus depreciation deduction taken | ||||||
8 | on the taxpayer's federal income tax return for the | ||||||
9 | taxable
year under subsection (k) of Section 168 of the | ||||||
10 | Internal Revenue Code;
| ||||||
11 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
12 | or otherwise disposes of property for which the | ||||||
13 | taxpayer was required in any taxable year to
make an | ||||||
14 | addition modification under subparagraph (D-15), then | ||||||
15 | an amount equal
to the aggregate amount of the | ||||||
16 | deductions taken in all taxable
years under | ||||||
17 | subparagraph (Z) with respect to that property.
| ||||||
18 | If the taxpayer continues to own property through | ||||||
19 | the last day of the last tax year for which the | ||||||
20 | taxpayer may claim a depreciation deduction for | ||||||
21 | federal income tax purposes and for which the taxpayer | ||||||
22 | was allowed in any taxable year to make a subtraction | ||||||
23 | modification under subparagraph (Z), then an amount | ||||||
24 | equal to that subtraction modification.
| ||||||
25 | The taxpayer is required to make the addition | ||||||
26 | modification under this
subparagraph
only once with |
| |||||||
| |||||||
1 | respect to any one piece of property;
| ||||||
2 | (D-17) An amount equal to the amount otherwise | ||||||
3 | allowed as a deduction in computing base income for | ||||||
4 | interest paid, accrued, or incurred, directly or | ||||||
5 | indirectly, (i) for taxable years ending on or after | ||||||
6 | December 31, 2004, to a foreign person who would be a | ||||||
7 | member of the same unitary business group but for the | ||||||
8 | fact that foreign person's business activity outside | ||||||
9 | the United States is 80% or more of the foreign | ||||||
10 | person's total business activity and (ii) for taxable | ||||||
11 | years ending on or after December 31, 2008, to a person | ||||||
12 | who would be a member of the same unitary business | ||||||
13 | group but for the fact that the person is prohibited | ||||||
14 | under Section 1501(a)(27) from being included in the | ||||||
15 | unitary business group because he or she is ordinarily | ||||||
16 | required to apportion business income under different | ||||||
17 | subsections of Section 304. The addition modification | ||||||
18 | required by this subparagraph shall be reduced to the | ||||||
19 | extent that dividends were included in base income of | ||||||
20 | the unitary group for the same taxable year and | ||||||
21 | received by the taxpayer or by a member of the | ||||||
22 | taxpayer's unitary business group (including amounts | ||||||
23 | included in gross income under Sections 951 through 964 | ||||||
24 | of the Internal Revenue Code and amounts included in | ||||||
25 | gross income under Section 78 of the Internal Revenue | ||||||
26 | Code) with respect to the stock of the same person to |
| |||||||
| |||||||
1 | whom the interest was paid, accrued, or incurred. | ||||||
2 | This paragraph shall not apply to the following:
| ||||||
3 | (i) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person who | ||||||
5 | is subject in a foreign country or state, other | ||||||
6 | than a state which requires mandatory unitary | ||||||
7 | reporting, to a tax on or measured by net income | ||||||
8 | with respect to such interest; or | ||||||
9 | (ii) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person if | ||||||
11 | the taxpayer can establish, based on a | ||||||
12 | preponderance of the evidence, both of the | ||||||
13 | following: | ||||||
14 | (a) the person, during the same taxable | ||||||
15 | year, paid, accrued, or incurred, the interest | ||||||
16 | to a person that is not a related member, and | ||||||
17 | (b) the transaction giving rise to the | ||||||
18 | interest expense between the taxpayer and the | ||||||
19 | person did not have as a principal purpose the | ||||||
20 | avoidance of Illinois income tax, and is paid | ||||||
21 | pursuant to a contract or agreement that | ||||||
22 | reflects an arm's-length interest rate and | ||||||
23 | terms; or
| ||||||
24 | (iii) the taxpayer can establish, based on | ||||||
25 | clear and convincing evidence, that the interest | ||||||
26 | paid, accrued, or incurred relates to a contract or |
| |||||||
| |||||||
1 | agreement entered into at arm's-length rates and | ||||||
2 | terms and the principal purpose for the payment is | ||||||
3 | not federal or Illinois tax avoidance; or
| ||||||
4 | (iv) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person if | ||||||
6 | the taxpayer establishes by clear and convincing | ||||||
7 | evidence that the adjustments are unreasonable; or | ||||||
8 | if the taxpayer and the Director agree in writing | ||||||
9 | to the application or use of an alternative method | ||||||
10 | of apportionment under Section 304(f).
| ||||||
11 | Nothing in this subsection shall preclude the | ||||||
12 | Director from making any other adjustment | ||||||
13 | otherwise allowed under Section 404 of this Act for | ||||||
14 | any tax year beginning after the effective date of | ||||||
15 | this amendment provided such adjustment is made | ||||||
16 | pursuant to regulation adopted by the Department | ||||||
17 | and such regulations provide methods and standards | ||||||
18 | by which the Department will utilize its authority | ||||||
19 | under Section 404 of this Act;
| ||||||
20 | (D-18) An amount equal to the amount of intangible | ||||||
21 | expenses and costs otherwise allowed as a deduction in | ||||||
22 | computing base income, and that were paid, accrued, or | ||||||
23 | incurred, directly or indirectly, (i) for taxable | ||||||
24 | years ending on or after December 31, 2004, to a | ||||||
25 | foreign person who would be a member of the same | ||||||
26 | unitary business group but for the fact that the |
| |||||||
| |||||||
1 | foreign person's business activity outside the United | ||||||
2 | States is 80% or more of that person's total business | ||||||
3 | activity and (ii) for taxable years ending on or after | ||||||
4 | December 31, 2008, to a person who would be a member of | ||||||
5 | the same unitary business group but for the fact that | ||||||
6 | the person is prohibited under Section 1501(a)(27) | ||||||
7 | from being included in the unitary business group | ||||||
8 | because he or she is ordinarily required to apportion | ||||||
9 | business income under different subsections of Section | ||||||
10 | 304. The addition modification required by this | ||||||
11 | subparagraph shall be reduced to the extent that | ||||||
12 | dividends were included in base income of the unitary | ||||||
13 | group for the same taxable year and received by the | ||||||
14 | taxpayer or by a member of the taxpayer's unitary | ||||||
15 | business group (including amounts included in gross | ||||||
16 | income under Sections 951 through 964 of the Internal | ||||||
17 | Revenue Code and amounts included in gross income under | ||||||
18 | Section 78 of the Internal Revenue Code) with respect | ||||||
19 | to the stock of the same person to whom the intangible | ||||||
20 | expenses and costs were directly or indirectly paid, | ||||||
21 | incurred, or accrued. The preceding sentence does not | ||||||
22 | apply to the extent that the same dividends caused a | ||||||
23 | reduction to the addition modification required under | ||||||
24 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
25 | subparagraph, the term "intangible expenses and costs" | ||||||
26 | includes (1) expenses, losses, and costs for, or |
| |||||||
| |||||||
1 | related to, the direct or indirect acquisition, use, | ||||||
2 | maintenance or management, ownership, sale, exchange, | ||||||
3 | or any other disposition of intangible property; (2) | ||||||
4 | losses incurred, directly or indirectly, from | ||||||
5 | factoring transactions or discounting transactions; | ||||||
6 | (3) royalty, patent, technical, and copyright fees; | ||||||
7 | (4) licensing fees; and (5) other similar expenses and | ||||||
8 | costs.
For purposes of this subparagraph, "intangible | ||||||
9 | property" includes patents, patent applications, trade | ||||||
10 | names, trademarks, service marks, copyrights, mask | ||||||
11 | works, trade secrets, and similar types of intangible | ||||||
12 | assets. | ||||||
13 | This paragraph shall not apply to the following: | ||||||
14 | (i) any item of intangible expenses or costs | ||||||
15 | paid, accrued, or incurred, directly or | ||||||
16 | indirectly, from a transaction with a person who is | ||||||
17 | subject in a foreign country or state, other than a | ||||||
18 | state which requires mandatory unitary reporting, | ||||||
19 | to a tax on or measured by net income with respect | ||||||
20 | to such item; or | ||||||
21 | (ii) any item of intangible expense or cost | ||||||
22 | paid, accrued, or incurred, directly or | ||||||
23 | indirectly, if the taxpayer can establish, based | ||||||
24 | on a preponderance of the evidence, both of the | ||||||
25 | following: | ||||||
26 | (a) the person during the same taxable |
| |||||||
| |||||||
1 | year paid, accrued, or incurred, the | ||||||
2 | intangible expense or cost to a person that is | ||||||
3 | not a related member, and | ||||||
4 | (b) the transaction giving rise to the | ||||||
5 | intangible expense or cost between the | ||||||
6 | taxpayer and the person did not have as a | ||||||
7 | principal purpose the avoidance of Illinois | ||||||
8 | income tax, and is paid pursuant to a contract | ||||||
9 | or agreement that reflects arm's-length terms; | ||||||
10 | or | ||||||
11 | (iii) any item of intangible expense or cost | ||||||
12 | paid, accrued, or incurred, directly or | ||||||
13 | indirectly, from a transaction with a person if the | ||||||
14 | taxpayer establishes by clear and convincing | ||||||
15 | evidence, that the adjustments are unreasonable; | ||||||
16 | or if the taxpayer and the Director agree in | ||||||
17 | writing to the application or use of an alternative | ||||||
18 | method of apportionment under Section 304(f);
| ||||||
19 | Nothing in this subsection shall preclude the | ||||||
20 | Director from making any other adjustment | ||||||
21 | otherwise allowed under Section 404 of this Act for | ||||||
22 | any tax year beginning after the effective date of | ||||||
23 | this amendment provided such adjustment is made | ||||||
24 | pursuant to regulation adopted by the Department | ||||||
25 | and such regulations provide methods and standards | ||||||
26 | by which the Department will utilize its authority |
| |||||||
| |||||||
1 | under Section 404 of this Act;
| ||||||
2 | (D-19) For taxable years ending on or after | ||||||
3 | December 31, 2008, an amount equal to the amount of | ||||||
4 | insurance premium expenses and costs otherwise allowed | ||||||
5 | as a deduction in computing base income, and that were | ||||||
6 | paid, accrued, or incurred, directly or indirectly, to | ||||||
7 | a person who would be a member of the same unitary | ||||||
8 | business group but for the fact that the person is | ||||||
9 | prohibited under Section 1501(a)(27) from being | ||||||
10 | included in the unitary business group because he or | ||||||
11 | she is ordinarily required to apportion business | ||||||
12 | income under different subsections of Section 304. The | ||||||
13 | addition modification required by this subparagraph | ||||||
14 | shall be reduced to the extent that dividends were | ||||||
15 | included in base income of the unitary group for the | ||||||
16 | same taxable year and received by the taxpayer or by a | ||||||
17 | member of the taxpayer's unitary business group | ||||||
18 | (including amounts included in gross income under | ||||||
19 | Sections 951 through 964 of the Internal Revenue Code | ||||||
20 | and amounts included in gross income under Section 78 | ||||||
21 | of the Internal Revenue Code) with respect to the stock | ||||||
22 | of the same person to whom the premiums and costs were | ||||||
23 | directly or indirectly paid, incurred, or accrued. The | ||||||
24 | preceding sentence does not apply to the extent that | ||||||
25 | the same dividends caused a reduction to the addition | ||||||
26 | modification required under Section 203(a)(2)(D-17) or |
| |||||||
| |||||||
1 | Section 203(a)(2)(D-18) of this Act.
| ||||||
2 | (D-20) For taxable years beginning on or after | ||||||
3 | January 1,
2002 and ending on or before December 31, | ||||||
4 | 2006, in
the
case of a distribution from a qualified | ||||||
5 | tuition program under Section 529 of
the Internal | ||||||
6 | Revenue Code, other than (i) a distribution from a | ||||||
7 | College Savings
Pool created under Section 16.5 of the | ||||||
8 | State Treasurer Act or (ii) a
distribution from the | ||||||
9 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
10 | the amount excluded from gross income under Section | ||||||
11 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
12 | January 1, 2007, in the case of a distribution from a | ||||||
13 | qualified tuition program under Section 529 of the | ||||||
14 | Internal Revenue Code, other than (i) a distribution | ||||||
15 | from a College Savings Pool created under Section 16.5 | ||||||
16 | of the State Treasurer Act, (ii) a distribution from | ||||||
17 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
18 | distribution from a qualified tuition program under | ||||||
19 | Section 529 of the Internal Revenue Code that (I) | ||||||
20 | adopts and determines that its offering materials | ||||||
21 | comply with the College Savings Plans Network's | ||||||
22 | disclosure principles and (II) has made reasonable | ||||||
23 | efforts to inform in-state residents of the existence | ||||||
24 | of in-state qualified tuition programs by informing | ||||||
25 | Illinois residents directly and, where applicable, to | ||||||
26 | inform financial intermediaries distributing the |
| |||||||
| |||||||
1 | program to inform in-state residents of the existence | ||||||
2 | of in-state qualified tuition programs at least | ||||||
3 | annually, an amount equal to the amount excluded from | ||||||
4 | gross income under Section 529(c)(3)(B). | ||||||
5 | For the purposes of this subparagraph (D-20), a | ||||||
6 | qualified tuition program has made reasonable efforts | ||||||
7 | if it makes disclosures (which may use the term | ||||||
8 | "in-state program" or "in-state plan" and need not | ||||||
9 | specifically refer to Illinois or its qualified | ||||||
10 | programs by name) (i) directly to prospective | ||||||
11 | participants in its offering materials or makes a | ||||||
12 | public disclosure, such as a website posting; and (ii) | ||||||
13 | where applicable, to intermediaries selling the | ||||||
14 | out-of-state program in the same manner that the | ||||||
15 | out-of-state program distributes its offering | ||||||
16 | materials;
| ||||||
17 | (D-21) For taxable years beginning on or after | ||||||
18 | January 1, 2007, in the case of transfer of moneys from | ||||||
19 | a qualified tuition program under Section 529 of the | ||||||
20 | Internal Revenue Code that is administered by the State | ||||||
21 | to an out-of-state program, an amount equal to the | ||||||
22 | amount of moneys previously deducted from base income | ||||||
23 | under subsection (a)(2)(Y) of this Section.
| ||||||
24 | and by deducting from the total so obtained the
sum of the | ||||||
25 | following amounts:
| ||||||
26 | (E) For taxable years ending before December 31, |
| |||||||
| |||||||
1 | 2001,
any amount included in such total in respect of | ||||||
2 | any compensation
(including but not limited to any | ||||||
3 | compensation paid or accrued to a
serviceman while a | ||||||
4 | prisoner of war or missing in action) paid to a | ||||||
5 | resident
by reason of being on active duty in the Armed | ||||||
6 | Forces of the United States
and in respect of any | ||||||
7 | compensation paid or accrued to a resident who as a
| ||||||
8 | governmental employee was a prisoner of war or missing | ||||||
9 | in action, and in
respect of any compensation paid to a | ||||||
10 | resident in 1971 or thereafter for
annual training | ||||||
11 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
12 | United States Code as a member of the Illinois National | ||||||
13 | Guard or, beginning with taxable years ending on or | ||||||
14 | after December 31, 2007, the National Guard of any | ||||||
15 | other state.
For taxable years ending on or after | ||||||
16 | December 31, 2001, any amount included in
such total in | ||||||
17 | respect of any compensation (including but not limited | ||||||
18 | to any
compensation paid or accrued to a serviceman | ||||||
19 | while a prisoner of war or missing
in action) paid to a | ||||||
20 | resident by reason of being a member of any component | ||||||
21 | of
the Armed Forces of the United States and in respect | ||||||
22 | of any compensation paid
or accrued to a resident who | ||||||
23 | as a governmental employee was a prisoner of war
or | ||||||
24 | missing in action, and in respect of any compensation | ||||||
25 | paid to a resident in
2001 or thereafter by reason of | ||||||
26 | being a member of the Illinois National Guard or, |
| |||||||
| |||||||
1 | beginning with taxable years ending on or after | ||||||
2 | December 31, 2007, the National Guard of any other | ||||||
3 | state.
The provisions of this amendatory Act of the | ||||||
4 | 92nd General Assembly are exempt
from the provisions of | ||||||
5 | Section 250;
| ||||||
6 | (F) An amount equal to all amounts included in such | ||||||
7 | total pursuant
to the provisions of Sections 402(a), | ||||||
8 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
9 | Internal Revenue Code, or included in such total as
| ||||||
10 | distributions under the provisions of any retirement | ||||||
11 | or disability plan for
employees of any governmental | ||||||
12 | agency or unit, or retirement payments to
retired | ||||||
13 | partners, which payments are excluded in computing net | ||||||
14 | earnings
from self employment by Section 1402 of the | ||||||
15 | Internal Revenue Code and
regulations adopted pursuant | ||||||
16 | thereto;
| ||||||
17 | (G) The valuation limitation amount;
| ||||||
18 | (H) An amount equal to the amount of any tax | ||||||
19 | imposed by this Act
which was refunded to the taxpayer | ||||||
20 | and included in such total for the
taxable year;
| ||||||
21 | (I) An amount equal to all amounts included in such | ||||||
22 | total pursuant
to the provisions of Section 111 of the | ||||||
23 | Internal Revenue Code as a
recovery of items previously | ||||||
24 | deducted from adjusted gross income in the
computation | ||||||
25 | of taxable income;
| ||||||
26 | (J) An amount equal to those dividends included in |
| |||||||
| |||||||
1 | such total which were
paid by a corporation which | ||||||
2 | conducts business operations in an Enterprise
Zone or | ||||||
3 | zones created under the Illinois Enterprise Zone Act or | ||||||
4 | a River Edge Redevelopment Zone or zones created under | ||||||
5 | the River Edge Redevelopment Zone Act, and conducts
| ||||||
6 | substantially all of its operations in an Enterprise | ||||||
7 | Zone or zones or a River Edge Redevelopment Zone or | ||||||
8 | zones. This subparagraph (J) is exempt from the | ||||||
9 | provisions of Section 250;
| ||||||
10 | (K) An amount equal to those dividends included in | ||||||
11 | such total that
were paid by a corporation that | ||||||
12 | conducts business operations in a federally
designated | ||||||
13 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
14 | High Impact
Business located in Illinois; provided | ||||||
15 | that dividends eligible for the
deduction provided in | ||||||
16 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
17 | shall not be eligible for the deduction provided under | ||||||
18 | this subparagraph
(K);
| ||||||
19 | (L) For taxable years ending after December 31, | ||||||
20 | 1983, an amount equal to
all social security benefits | ||||||
21 | and railroad retirement benefits included in
such | ||||||
22 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
23 | Revenue Code;
| ||||||
24 | (M) With the exception of any amounts subtracted | ||||||
25 | under subparagraph
(N), an amount equal to the sum of | ||||||
26 | all amounts disallowed as
deductions by (i) Sections |
| |||||||
| |||||||
1 | 171(a) (2), and 265(2) of the Internal Revenue Code
of | ||||||
2 | 1954, as now or hereafter amended , and all amounts of | ||||||
3 | expenses allocable
to interest and disallowed as | ||||||
4 | deductions by Section 265(1) of the Internal
Revenue | ||||||
5 | Code of 1954, as now or hereafter amended ;
and (ii) for | ||||||
6 | taxable years
ending on or after August 13, 1999, | ||||||
7 | Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
8 | the Internal Revenue Code ; and (iii) for taxable years | ||||||
9 | ending on or after December 31, 2008, Section 45G(e)(3) | ||||||
10 | of the Internal Revenue Code ; the provisions of this
| ||||||
11 | subparagraph are exempt from the provisions of Section | ||||||
12 | 250;
| ||||||
13 | (N) An amount equal to all amounts included in such | ||||||
14 | total which are
exempt from taxation by this State | ||||||
15 | either by reason of its statutes or
Constitution
or by | ||||||
16 | reason of the Constitution, treaties or statutes of the | ||||||
17 | United States;
provided that, in the case of any | ||||||
18 | statute of this State that exempts income
derived from | ||||||
19 | bonds or other obligations from the tax imposed under | ||||||
20 | this Act,
the amount exempted shall be the interest net | ||||||
21 | of bond premium amortization;
| ||||||
22 | (O) An amount equal to any contribution made to a | ||||||
23 | job training
project established pursuant to the Tax | ||||||
24 | Increment Allocation Redevelopment Act;
| ||||||
25 | (P) An amount equal to the amount of the deduction | ||||||
26 | used to compute the
federal income tax credit for |
| |||||||
| |||||||
1 | restoration of substantial amounts held under
claim of | ||||||
2 | right for the taxable year pursuant to Section 1341 of | ||||||
3 | the
Internal Revenue Code or of any itemized deduction | ||||||
4 | taken from adjusted gross income in the computation of | ||||||
5 | taxable income for restoration of substantial amounts | ||||||
6 | held under claim of right for the taxable year of 1986 ;
| ||||||
7 | (Q) An amount equal to any amounts included in such | ||||||
8 | total, received by
the taxpayer as an acceleration in | ||||||
9 | the payment of life, endowment or annuity
benefits in | ||||||
10 | advance of the time they would otherwise be payable as | ||||||
11 | an indemnity
for a terminal illness;
| ||||||
12 | (R) An amount equal to the amount of any federal or | ||||||
13 | State bonus paid
to veterans of the Persian Gulf War;
| ||||||
14 | (S) An amount, to the extent included in adjusted | ||||||
15 | gross income, equal
to the amount of a contribution | ||||||
16 | made in the taxable year on behalf of the
taxpayer to a | ||||||
17 | medical care savings account established under the | ||||||
18 | Medical Care
Savings Account Act or the Medical Care | ||||||
19 | Savings Account Act of 2000 to the
extent the | ||||||
20 | contribution is accepted by the account
administrator | ||||||
21 | as provided in that Act;
| ||||||
22 | (T) An amount, to the extent included in adjusted | ||||||
23 | gross income, equal to
the amount of interest earned in | ||||||
24 | the taxable year on a medical care savings
account | ||||||
25 | established under the Medical Care Savings Account Act | ||||||
26 | or the Medical
Care Savings Account Act of 2000 on |
| |||||||
| |||||||
1 | behalf of the
taxpayer, other than interest added | ||||||
2 | pursuant to item (D-5) of this paragraph
(2);
| ||||||
3 | (U) For one taxable year beginning on or after | ||||||
4 | January 1,
1994, an
amount equal to the total amount of | ||||||
5 | tax imposed and paid under subsections (a)
and (b) of | ||||||
6 | Section 201 of this Act on grant amounts received by | ||||||
7 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
8 | Act during the taxpayer's taxable years
1992 and 1993;
| ||||||
9 | (V) Beginning with tax years ending on or after | ||||||
10 | December 31, 1995 and
ending with tax years ending on | ||||||
11 | or before December 31, 2004, an amount equal to
the | ||||||
12 | amount paid by a taxpayer who is a
self-employed | ||||||
13 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
14 | in a Subchapter S corporation for health insurance or | ||||||
15 | long-term
care insurance for that taxpayer or that | ||||||
16 | taxpayer's spouse or dependents, to
the extent that the | ||||||
17 | amount paid for that health insurance or long-term care
| ||||||
18 | insurance may be deducted under Section 213 of the | ||||||
19 | Internal Revenue Code of
1986 , has not been deducted on | ||||||
20 | the federal income tax return of the taxpayer,
and does | ||||||
21 | not exceed the taxable income attributable to that | ||||||
22 | taxpayer's income,
self-employment income, or | ||||||
23 | Subchapter S corporation income; except that no
| ||||||
24 | deduction shall be allowed under this item (V) if the | ||||||
25 | taxpayer is eligible to
participate in any health | ||||||
26 | insurance or long-term care insurance plan of an
|
| |||||||
| |||||||
1 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
2 | amount of the health insurance and long-term care | ||||||
3 | insurance
subtracted under this item (V) shall be | ||||||
4 | determined by multiplying total
health insurance and | ||||||
5 | long-term care insurance premiums paid by the taxpayer
| ||||||
6 | times a number that represents the fractional | ||||||
7 | percentage of eligible medical
expenses under Section | ||||||
8 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
9 | deducted on the taxpayer's federal income tax return;
| ||||||
10 | (W) For taxable years beginning on or after January | ||||||
11 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
12 | gross income
in the taxable year from amounts converted | ||||||
13 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
14 | exempt from the provisions of Section
250;
| ||||||
15 | (X) For taxable year 1999 and thereafter, an amount | ||||||
16 | equal to the
amount of any (i) distributions, to the | ||||||
17 | extent includible in gross income for
federal income | ||||||
18 | tax purposes, made to the taxpayer because of his or | ||||||
19 | her status
as a victim of persecution for racial or | ||||||
20 | religious reasons by Nazi Germany or
any other Axis | ||||||
21 | regime or as an heir of the victim and (ii) items
of | ||||||
22 | income, to the extent
includible in gross income for | ||||||
23 | federal income tax purposes, attributable to,
derived | ||||||
24 | from or in any way related to assets stolen from, | ||||||
25 | hidden from, or
otherwise lost to a victim of
| ||||||
26 | persecution for racial or religious reasons by Nazi |
| |||||||
| |||||||
1 | Germany or any other Axis
regime immediately prior to, | ||||||
2 | during, and immediately after World War II,
including, | ||||||
3 | but
not limited to, interest on the proceeds receivable | ||||||
4 | as insurance
under policies issued to a victim of | ||||||
5 | persecution for racial or religious
reasons
by Nazi | ||||||
6 | Germany or any other Axis regime by European insurance | ||||||
7 | companies
immediately prior to and during World War II;
| ||||||
8 | provided, however, this subtraction from federal | ||||||
9 | adjusted gross income does not
apply to assets acquired | ||||||
10 | with such assets or with the proceeds from the sale of
| ||||||
11 | such assets; provided, further, this paragraph shall | ||||||
12 | only apply to a taxpayer
who was the first recipient of | ||||||
13 | such assets after their recovery and who is a
victim of | ||||||
14 | persecution for racial or religious reasons
by Nazi | ||||||
15 | Germany or any other Axis regime or as an heir of the | ||||||
16 | victim. The
amount of and the eligibility for any | ||||||
17 | public assistance, benefit, or
similar entitlement is | ||||||
18 | not affected by the inclusion of items (i) and (ii) of
| ||||||
19 | this paragraph in gross income for federal income tax | ||||||
20 | purposes.
This paragraph is exempt from the provisions | ||||||
21 | of Section 250;
| ||||||
22 | (Y) For taxable years beginning on or after January | ||||||
23 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
24 | moneys contributed in the taxable year to a College | ||||||
25 | Savings Pool account under
Section 16.5 of the State | ||||||
26 | Treasurer Act, except that amounts excluded from
gross |
| |||||||
| |||||||
1 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
2 | Revenue Code
shall not be considered moneys | ||||||
3 | contributed under this subparagraph (Y). For taxable | ||||||
4 | years beginning on or after January 1, 2005, a maximum | ||||||
5 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
6 | College Savings Pool account under Section 16.5 of the
| ||||||
7 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
8 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
9 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
10 | Internal
Revenue Code shall not be considered moneys | ||||||
11 | contributed under this subparagraph
(Y). This
| ||||||
12 | subparagraph (Y) is exempt from the provisions of | ||||||
13 | Section 250;
| ||||||
14 | (Z) For taxable years 2001 and thereafter, for the | ||||||
15 | taxable year in
which the bonus depreciation deduction
| ||||||
16 | is taken on the taxpayer's federal income tax return | ||||||
17 | under
subsection (k) of Section 168 of the Internal | ||||||
18 | Revenue Code and for each
applicable taxable year | ||||||
19 | thereafter, an amount equal to "x", where:
| ||||||
20 | (1) "y" equals the amount of the depreciation | ||||||
21 | deduction taken for the
taxable year
on the | ||||||
22 | taxpayer's federal income tax return on property | ||||||
23 | for which the bonus
depreciation deduction
was | ||||||
24 | taken in any year under subsection (k) of Section | ||||||
25 | 168 of the Internal
Revenue Code, but not including | ||||||
26 | the bonus depreciation deduction;
|
| |||||||
| |||||||
1 | (2) for taxable years ending on or before | ||||||
2 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
3 | and then divided by 70 (or "y"
multiplied by | ||||||
4 | 0.429); and | ||||||
5 | (3) for taxable years ending after December | ||||||
6 | 31, 2005: | ||||||
7 | (i) for property on which a bonus | ||||||
8 | depreciation deduction of 30% of the adjusted | ||||||
9 | basis was taken, "x" equals "y" multiplied by | ||||||
10 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
11 | 0.429); and | ||||||
12 | (ii) for property on which a bonus | ||||||
13 | depreciation deduction of 50% of the adjusted | ||||||
14 | basis was taken, "x" equals "y" multiplied by | ||||||
15 | 1.0.
| ||||||
16 | The aggregate amount deducted under this | ||||||
17 | subparagraph in all taxable
years for any one piece of | ||||||
18 | property may not exceed the amount of the bonus
| ||||||
19 | depreciation deduction
taken on that property on the | ||||||
20 | taxpayer's federal income tax return under
subsection | ||||||
21 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
22 | subparagraph (Z) is exempt from the provisions of | ||||||
23 | Section 250;
| ||||||
24 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
25 | or otherwise disposes of
property for which the | ||||||
26 | taxpayer was required in any taxable year to make an
|
| |||||||
| |||||||
1 | addition modification under subparagraph (D-15), then | ||||||
2 | an amount equal to that
addition modification.
| ||||||
3 | If the taxpayer continues to own property through | ||||||
4 | the last day of the last tax year for which the | ||||||
5 | taxpayer may claim a depreciation deduction for | ||||||
6 | federal income tax purposes and for which the taxpayer | ||||||
7 | was required in any taxable year to make an addition | ||||||
8 | modification under subparagraph (D-15), then an amount | ||||||
9 | equal to that addition modification.
| ||||||
10 | The taxpayer is allowed to take the deduction under | ||||||
11 | this subparagraph
only once with respect to any one | ||||||
12 | piece of property. | ||||||
13 | This subparagraph (AA) is exempt from the | ||||||
14 | provisions of Section 250;
| ||||||
15 | (BB) Any amount included in adjusted gross income, | ||||||
16 | other
than
salary,
received by a driver in a | ||||||
17 | ridesharing arrangement using a motor vehicle;
| ||||||
18 | (CC) The amount of (i) any interest income (net of | ||||||
19 | the deductions allocable thereto) taken into account | ||||||
20 | for the taxable year with respect to a transaction with | ||||||
21 | a taxpayer that is required to make an addition | ||||||
22 | modification with respect to such transaction under | ||||||
23 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
24 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
25 | the amount of that addition modification, and
(ii) any | ||||||
26 | income from intangible property (net of the deductions |
| |||||||
| |||||||
1 | allocable thereto) taken into account for the taxable | ||||||
2 | year with respect to a transaction with a taxpayer that | ||||||
3 | is required to make an addition modification with | ||||||
4 | respect to such transaction under Section | ||||||
5 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
6 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
7 | addition modification. This subparagraph (CC) is | ||||||
8 | exempt from the provisions of Section 250; | ||||||
9 | (DD) An amount equal to the interest income taken | ||||||
10 | into account for the taxable year (net of the | ||||||
11 | deductions allocable thereto) with respect to | ||||||
12 | transactions with (i) a foreign person who would be a | ||||||
13 | member of the taxpayer's unitary business group but for | ||||||
14 | the fact that the foreign person's business activity | ||||||
15 | outside the United States is 80% or more of that | ||||||
16 | person's total business activity and (ii) for taxable | ||||||
17 | years ending on or after December 31, 2008, to a person | ||||||
18 | who would be a member of the same unitary business | ||||||
19 | group but for the fact that the person is prohibited | ||||||
20 | under Section 1501(a)(27) from being included in the | ||||||
21 | unitary business group because he or she is ordinarily | ||||||
22 | required to apportion business income under different | ||||||
23 | subsections of Section 304, but not to exceed the | ||||||
24 | addition modification required to be made for the same | ||||||
25 | taxable year under Section 203(a)(2)(D-17) for | ||||||
26 | interest paid, accrued, or incurred, directly or |
| |||||||
| |||||||
1 | indirectly, to the same person. This subparagraph (DD) | ||||||
2 | is exempt from the provisions of Section 250; and | ||||||
3 | (EE) An amount equal to the income from intangible | ||||||
4 | property taken into account for the taxable year (net | ||||||
5 | of the deductions allocable thereto) with respect to | ||||||
6 | transactions with (i) a foreign person who would be a | ||||||
7 | member of the taxpayer's unitary business group but for | ||||||
8 | the fact that the foreign person's business activity | ||||||
9 | outside the United States is 80% or more of that | ||||||
10 | person's total business activity and (ii) for taxable | ||||||
11 | years ending on or after December 31, 2008, to a person | ||||||
12 | who would be a member of the same unitary business | ||||||
13 | group but for the fact that the person is prohibited | ||||||
14 | under Section 1501(a)(27) from being included in the | ||||||
15 | unitary business group because he or she is ordinarily | ||||||
16 | required to apportion business income under different | ||||||
17 | subsections of Section 304, but not to exceed the | ||||||
18 | addition modification required to be made for the same | ||||||
19 | taxable year under Section 203(a)(2)(D-18) for | ||||||
20 | intangible expenses and costs paid, accrued, or | ||||||
21 | incurred, directly or indirectly, to the same foreign | ||||||
22 | person. This subparagraph (EE) is exempt from the | ||||||
23 | provisions of Section 250 ; and | ||||||
24 | (FF) For taxable years ending on or after December | ||||||
25 | 31, 2008, in the case of a taxpayer who was required to | ||||||
26 | add back any insurance premiums under Section |
| |||||||
| |||||||
1 | 203(a)(2)(D-19), an amount equal to the amount of any | ||||||
2 | reimbursement received from the insurance company for | ||||||
3 | any loss covered by a policy for which those premiums | ||||||
4 | were paid, to the extent of the federal income tax | ||||||
5 | deduction that would have been allowable for the loss | ||||||
6 | in computing adjusted gross income if not for the | ||||||
7 | reimbursement. This subparagraph (FF) is exempt from | ||||||
8 | the provisions of Section 250 .
| ||||||
9 | (b) Corporations.
| ||||||
10 | (1) In general. In the case of a corporation, base | ||||||
11 | income means an
amount equal to the taxpayer's taxable | ||||||
12 | income for the taxable year as
modified by paragraph (2).
| ||||||
13 | (2) Modifications. The taxable income referred to in | ||||||
14 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
15 | of the following amounts:
| ||||||
16 | (A) An amount equal to all amounts paid or accrued | ||||||
17 | to the taxpayer
as interest and all distributions | ||||||
18 | received from regulated investment
companies during | ||||||
19 | the taxable year to the extent excluded from gross
| ||||||
20 | income in the computation of taxable income;
| ||||||
21 | (B) An amount equal to the amount of tax imposed by | ||||||
22 | this Act to the
extent deducted from gross income in | ||||||
23 | the computation of taxable income
for the taxable year;
| ||||||
24 | (C) In the case of a regulated investment company, | ||||||
25 | an amount equal to
the excess of (i) the net long-term |
| |||||||
| |||||||
1 | capital gain for the taxable year, over
(ii) the amount | ||||||
2 | of the capital gain dividends designated as such in | ||||||
3 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
4 | Revenue Code and any amount
designated under Section | ||||||
5 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
6 | attributable to the taxable year (this amendatory Act | ||||||
7 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
8 | law and is not a new
enactment);
| ||||||
9 | (D) The amount of any net operating loss deduction | ||||||
10 | taken in arriving
at taxable income, other than a net | ||||||
11 | operating loss carried forward from a
taxable year | ||||||
12 | ending prior to December 31, 1986;
| ||||||
13 | (E) For taxable years in which a net operating loss | ||||||
14 | carryback or
carryforward from a taxable year ending | ||||||
15 | prior to December 31, 1986 is an
element of taxable | ||||||
16 | income under paragraph (1) of subsection (e) or
| ||||||
17 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
18 | the amount by which
addition modifications other than | ||||||
19 | those provided by this subparagraph (E)
exceeded | ||||||
20 | subtraction modifications in such earlier taxable | ||||||
21 | year, with the
following limitations applied in the | ||||||
22 | order that they are listed:
| ||||||
23 | (i) the addition modification relating to the | ||||||
24 | net operating loss
carried back or forward to the | ||||||
25 | taxable year from any taxable year ending
prior to | ||||||
26 | December 31, 1986 shall be reduced by the amount of |
| |||||||
| |||||||
1 | addition
modification under this subparagraph (E) | ||||||
2 | which related to that net operating
loss and which | ||||||
3 | was taken into account in calculating the base | ||||||
4 | income of an
earlier taxable year, and
| ||||||
5 | (ii) the addition modification relating to the | ||||||
6 | net operating loss
carried back or forward to the | ||||||
7 | taxable year from any taxable year ending
prior to | ||||||
8 | December 31, 1986 shall not exceed the amount of | ||||||
9 | such carryback or
carryforward;
| ||||||
10 | For taxable years in which there is a net operating | ||||||
11 | loss carryback or
carryforward from more than one other | ||||||
12 | taxable year ending prior to December
31, 1986, the | ||||||
13 | addition modification provided in this subparagraph | ||||||
14 | (E) shall
be the sum of the amounts computed | ||||||
15 | independently under the preceding
provisions of this | ||||||
16 | subparagraph (E) for each such taxable year;
| ||||||
17 | (E-5) For taxable years ending after December 31, | ||||||
18 | 1997, an
amount equal to any eligible remediation costs | ||||||
19 | that the corporation
deducted in computing adjusted | ||||||
20 | gross income and for which the
corporation claims a | ||||||
21 | credit under subsection (l) of Section 201;
| ||||||
22 | (E-10) For taxable years 2001 and thereafter, an | ||||||
23 | amount equal to the
bonus depreciation deduction taken | ||||||
24 | on the taxpayer's federal income tax return for the | ||||||
25 | taxable
year under subsection (k) of Section 168 of the | ||||||
26 | Internal Revenue Code;
|
| |||||||
| |||||||
1 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
2 | or otherwise disposes of property for which the | ||||||
3 | taxpayer was required in any taxable year to
make an | ||||||
4 | addition modification under subparagraph (E-10), then | ||||||
5 | an amount equal
to the aggregate amount of the | ||||||
6 | deductions taken in all taxable
years under | ||||||
7 | subparagraph (T) with respect to that property.
| ||||||
8 | If the taxpayer continues to own property through | ||||||
9 | the last day of the last tax year for which the | ||||||
10 | taxpayer may claim a depreciation deduction for | ||||||
11 | federal income tax purposes and for which the taxpayer | ||||||
12 | was allowed in any taxable year to make a subtraction | ||||||
13 | modification under subparagraph (T), then an amount | ||||||
14 | equal to that subtraction modification.
| ||||||
15 | The taxpayer is required to make the addition | ||||||
16 | modification under this
subparagraph
only once with | ||||||
17 | respect to any one piece of property;
| ||||||
18 | (E-12) An amount equal to the amount otherwise | ||||||
19 | allowed as a deduction in computing base income for | ||||||
20 | interest paid, accrued, or incurred, directly or | ||||||
21 | indirectly, (i) for taxable years ending on or after | ||||||
22 | December 31, 2004, to a foreign person who would be a | ||||||
23 | member of the same unitary business group but for the | ||||||
24 | fact the foreign person's business activity outside | ||||||
25 | the United States is 80% or more of the foreign | ||||||
26 | person's total business activity and (ii) for taxable |
| |||||||
| |||||||
1 | years ending on or after December 31, 2008, to a person | ||||||
2 | who would be a member of the same unitary business | ||||||
3 | group but for the fact that the person is prohibited | ||||||
4 | under Section 1501(a)(27) from being included in the | ||||||
5 | unitary business group because he or she is ordinarily | ||||||
6 | required to apportion business income under different | ||||||
7 | subsections of Section 304. The addition modification | ||||||
8 | required by this subparagraph shall be reduced to the | ||||||
9 | extent that dividends were included in base income of | ||||||
10 | the unitary group for the same taxable year and | ||||||
11 | received by the taxpayer or by a member of the | ||||||
12 | taxpayer's unitary business group (including amounts | ||||||
13 | included in gross income pursuant to Sections 951 | ||||||
14 | through 964 of the Internal Revenue Code and amounts | ||||||
15 | included in gross income under Section 78 of the | ||||||
16 | Internal Revenue Code) with respect to the stock of the | ||||||
17 | same person to whom the interest was paid, accrued, or | ||||||
18 | incurred.
| ||||||
19 | This paragraph shall not apply to the following:
| ||||||
20 | (i) an item of interest paid, accrued, or | ||||||
21 | incurred, directly or indirectly, to a person who | ||||||
22 | is subject in a foreign country or state, other | ||||||
23 | than a state which requires mandatory unitary | ||||||
24 | reporting, to a tax on or measured by net income | ||||||
25 | with respect to such interest; or | ||||||
26 | (ii) an item of interest paid, accrued, or |
| |||||||
| |||||||
1 | incurred, directly or indirectly, to a person if | ||||||
2 | the taxpayer can establish, based on a | ||||||
3 | preponderance of the evidence, both of the | ||||||
4 | following: | ||||||
5 | (a) the person, during the same taxable | ||||||
6 | year, paid, accrued, or incurred, the interest | ||||||
7 | to a person that is not a related member, and | ||||||
8 | (b) the transaction giving rise to the | ||||||
9 | interest expense between the taxpayer and the | ||||||
10 | person did not have as a principal purpose the | ||||||
11 | avoidance of Illinois income tax, and is paid | ||||||
12 | pursuant to a contract or agreement that | ||||||
13 | reflects an arm's-length interest rate and | ||||||
14 | terms; or
| ||||||
15 | (iii) the taxpayer can establish, based on | ||||||
16 | clear and convincing evidence, that the interest | ||||||
17 | paid, accrued, or incurred relates to a contract or | ||||||
18 | agreement entered into at arm's-length rates and | ||||||
19 | terms and the principal purpose for the payment is | ||||||
20 | not federal or Illinois tax avoidance; or
| ||||||
21 | (iv) an item of interest paid, accrued, or | ||||||
22 | incurred, directly or indirectly, to a person if | ||||||
23 | the taxpayer establishes by clear and convincing | ||||||
24 | evidence that the adjustments are unreasonable; or | ||||||
25 | if the taxpayer and the Director agree in writing | ||||||
26 | to the application or use of an alternative method |
| |||||||
| |||||||
1 | of apportionment under Section 304(f).
| ||||||
2 | Nothing in this subsection shall preclude the | ||||||
3 | Director from making any other adjustment | ||||||
4 | otherwise allowed under Section 404 of this Act for | ||||||
5 | any tax year beginning after the effective date of | ||||||
6 | this amendment provided such adjustment is made | ||||||
7 | pursuant to regulation adopted by the Department | ||||||
8 | and such regulations provide methods and standards | ||||||
9 | by which the Department will utilize its authority | ||||||
10 | under Section 404 of this Act;
| ||||||
11 | (E-13) An amount equal to the amount of intangible | ||||||
12 | expenses and costs otherwise allowed as a deduction in | ||||||
13 | computing base income, and that were paid, accrued, or | ||||||
14 | incurred, directly or indirectly, (i) for taxable | ||||||
15 | years ending on or after December 31, 2004, to a | ||||||
16 | foreign person who would be a member of the same | ||||||
17 | unitary business group but for the fact that the | ||||||
18 | foreign person's business activity outside the United | ||||||
19 | States is 80% or more of that person's total business | ||||||
20 | activity and (ii) for taxable years ending on or after | ||||||
21 | December 31, 2008, to a person who would be a member of | ||||||
22 | the same unitary business group but for the fact that | ||||||
23 | the person is prohibited under Section 1501(a)(27) | ||||||
24 | from being included in the unitary business group | ||||||
25 | because he or she is ordinarily required to apportion | ||||||
26 | business income under different subsections of Section |
| |||||||
| |||||||
1 | 304. The addition modification required by this | ||||||
2 | subparagraph shall be reduced to the extent that | ||||||
3 | dividends were included in base income of the unitary | ||||||
4 | group for the same taxable year and received by the | ||||||
5 | taxpayer or by a member of the taxpayer's unitary | ||||||
6 | business group (including amounts included in gross | ||||||
7 | income pursuant to Sections 951 through 964 of the | ||||||
8 | Internal Revenue Code and amounts included in gross | ||||||
9 | income under Section 78 of the Internal Revenue Code) | ||||||
10 | with respect to the stock of the same person to whom | ||||||
11 | the intangible expenses and costs were directly or | ||||||
12 | indirectly paid, incurred, or accrued. The preceding | ||||||
13 | sentence shall not apply to the extent that the same | ||||||
14 | dividends caused a reduction to the addition | ||||||
15 | modification required under Section 203(b)(2)(E-12) of | ||||||
16 | this Act.
As used in this subparagraph, the term | ||||||
17 | "intangible expenses and costs" includes (1) expenses, | ||||||
18 | losses, and costs for, or related to, the direct or | ||||||
19 | indirect acquisition, use, maintenance or management, | ||||||
20 | ownership, sale, exchange, or any other disposition of | ||||||
21 | intangible property; (2) losses incurred, directly or | ||||||
22 | indirectly, from factoring transactions or discounting | ||||||
23 | transactions; (3) royalty, patent, technical, and | ||||||
24 | copyright fees; (4) licensing fees; and (5) other | ||||||
25 | similar expenses and costs.
For purposes of this | ||||||
26 | subparagraph, "intangible property" includes patents, |
| |||||||
| |||||||
1 | patent applications, trade names, trademarks, service | ||||||
2 | marks, copyrights, mask works, trade secrets, and | ||||||
3 | similar types of intangible assets. | ||||||
4 | This paragraph shall not apply to the following: | ||||||
5 | (i) any item of intangible expenses or costs | ||||||
6 | paid, accrued, or incurred, directly or | ||||||
7 | indirectly, from a transaction with a person who is | ||||||
8 | subject in a foreign country or state, other than a | ||||||
9 | state which requires mandatory unitary reporting, | ||||||
10 | to a tax on or measured by net income with respect | ||||||
11 | to such item; or | ||||||
12 | (ii) any item of intangible expense or cost | ||||||
13 | paid, accrued, or incurred, directly or | ||||||
14 | indirectly, if the taxpayer can establish, based | ||||||
15 | on a preponderance of the evidence, both of the | ||||||
16 | following: | ||||||
17 | (a) the person during the same taxable | ||||||
18 | year paid, accrued, or incurred, the | ||||||
19 | intangible expense or cost to a person that is | ||||||
20 | not a related member, and | ||||||
21 | (b) the transaction giving rise to the | ||||||
22 | intangible expense or cost between the | ||||||
23 | taxpayer and the person did not have as a | ||||||
24 | principal purpose the avoidance of Illinois | ||||||
25 | income tax, and is paid pursuant to a contract | ||||||
26 | or agreement that reflects arm's-length terms; |
| |||||||
| |||||||
1 | or | ||||||
2 | (iii) any item of intangible expense or cost | ||||||
3 | paid, accrued, or incurred, directly or | ||||||
4 | indirectly, from a transaction with a person if the | ||||||
5 | taxpayer establishes by clear and convincing | ||||||
6 | evidence, that the adjustments are unreasonable; | ||||||
7 | or if the taxpayer and the Director agree in | ||||||
8 | writing to the application or use of an alternative | ||||||
9 | method of apportionment under Section 304(f);
| ||||||
10 | Nothing in this subsection shall preclude the | ||||||
11 | Director from making any other adjustment | ||||||
12 | otherwise allowed under Section 404 of this Act for | ||||||
13 | any tax year beginning after the effective date of | ||||||
14 | this amendment provided such adjustment is made | ||||||
15 | pursuant to regulation adopted by the Department | ||||||
16 | and such regulations provide methods and standards | ||||||
17 | by which the Department will utilize its authority | ||||||
18 | under Section 404 of this Act;
| ||||||
19 | (E-14) For taxable years ending on or after | ||||||
20 | December 31, 2008, an amount equal to the amount of | ||||||
21 | insurance premium expenses and costs otherwise allowed | ||||||
22 | as a deduction in computing base income, and that were | ||||||
23 | paid, accrued, or incurred, directly or indirectly, to | ||||||
24 | a person who would be a member of the same unitary | ||||||
25 | business group but for the fact that the person is | ||||||
26 | prohibited under Section 1501(a)(27) from being |
| |||||||
| |||||||
1 | included in the unitary business group because he or | ||||||
2 | she is ordinarily required to apportion business | ||||||
3 | income under different subsections of Section 304. The | ||||||
4 | addition modification required by this subparagraph | ||||||
5 | shall be reduced to the extent that dividends were | ||||||
6 | included in base income of the unitary group for the | ||||||
7 | same taxable year and received by the taxpayer or by a | ||||||
8 | member of the taxpayer's unitary business group | ||||||
9 | (including amounts included in gross income under | ||||||
10 | Sections 951 through 964 of the Internal Revenue Code | ||||||
11 | and amounts included in gross income under Section 78 | ||||||
12 | of the Internal Revenue Code) with respect to the stock | ||||||
13 | of the same person to whom the premiums and costs were | ||||||
14 | directly or indirectly paid, incurred, or accrued. The | ||||||
15 | preceding sentence does not apply to the extent that | ||||||
16 | the same dividends caused a reduction to the addition | ||||||
17 | modification required under Section 203(b)(2)(E-12) or | ||||||
18 | Section 203(b)(2)(E-13) of this Act;
| ||||||
19 | (E-15) For taxable years beginning after December | ||||||
20 | 31, 2008, any deduction for dividends paid by a captive | ||||||
21 | real estate investment trust that is allowed to a real | ||||||
22 | estate investment trust under Section 857(b)(2)(B) of | ||||||
23 | the Internal Revenue Code for dividends paid;
| ||||||
24 | and by deducting from the total so obtained the sum of the | ||||||
25 | following
amounts:
| ||||||
26 | (F) An amount equal to the amount of any tax |
| |||||||
| |||||||
1 | imposed by this Act
which was refunded to the taxpayer | ||||||
2 | and included in such total for the
taxable year;
| ||||||
3 | (G) An amount equal to any amount included in such | ||||||
4 | total under
Section 78 of the Internal Revenue Code;
| ||||||
5 | (H) In the case of a regulated investment company, | ||||||
6 | an amount equal
to the amount of exempt interest | ||||||
7 | dividends as defined in subsection (b)
(5) of Section | ||||||
8 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
9 | for the taxable year;
| ||||||
10 | (I) With the exception of any amounts subtracted | ||||||
11 | under subparagraph
(J),
an amount equal to the sum of | ||||||
12 | all amounts disallowed as
deductions by (i) Sections | ||||||
13 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
14 | interest expense by Section 291(a)(3) of the Internal | ||||||
15 | Revenue Code , as now
or hereafter amended , and all | ||||||
16 | amounts of expenses allocable to interest and
| ||||||
17 | disallowed as deductions by Section 265(a)(1) of the | ||||||
18 | Internal Revenue Code ,
as now or hereafter amended ;
and | ||||||
19 | (ii) for taxable years
ending on or after August 13, | ||||||
20 | 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
21 | 832(b)(5)(B)(i) of the Internal Revenue Code ; (iii) | ||||||
22 | for taxable years ending on or after December 31, 2008, | ||||||
23 | Section 45G(e)(3) of the Internal Revenue Code; and | ||||||
24 | (iv) for tax years ending on or after December 31, | ||||||
25 | 2008, the policyholders' share of tax-exempt interest | ||||||
26 | of a life insurance company under Section 807(a)(2)(B) |
| |||||||
| |||||||
1 | of the Internal Revenue Code (in the case of a life | ||||||
2 | insurance company with gross income from a decrease in | ||||||
3 | reserves for the tax year) or Section 807(b)(1)(B) of | ||||||
4 | the Internal Revenue Code (in the case of a life | ||||||
5 | insurance company allowed a deduction for an increase | ||||||
6 | in reserves for the tax year) ; the
provisions of this
| ||||||
7 | subparagraph are exempt from the provisions of Section | ||||||
8 | 250;
| ||||||
9 | (J) An amount equal to all amounts included in such | ||||||
10 | total which are
exempt from taxation by this State | ||||||
11 | either by reason of its statutes or
Constitution
or by | ||||||
12 | reason of the Constitution, treaties or statutes of the | ||||||
13 | United States;
provided that, in the case of any | ||||||
14 | statute of this State that exempts income
derived from | ||||||
15 | bonds or other obligations from the tax imposed under | ||||||
16 | this Act,
the amount exempted shall be the interest net | ||||||
17 | of bond premium amortization;
| ||||||
18 | (K) An amount equal to those dividends included in | ||||||
19 | such total
which were paid by a corporation which | ||||||
20 | conducts
business operations in an Enterprise Zone or | ||||||
21 | zones created under
the Illinois Enterprise Zone Act or | ||||||
22 | a River Edge Redevelopment Zone or zones created under | ||||||
23 | the River Edge Redevelopment Zone Act and conducts | ||||||
24 | substantially all of its
operations in an Enterprise | ||||||
25 | Zone or zones or a River Edge Redevelopment Zone or | ||||||
26 | zones. This subparagraph (K) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250;
| ||||||
2 | (L) An amount equal to those dividends included in | ||||||
3 | such total that
were paid by a corporation that | ||||||
4 | conducts business operations in a federally
designated | ||||||
5 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
6 | High Impact
Business located in Illinois; provided | ||||||
7 | that dividends eligible for the
deduction provided in | ||||||
8 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
9 | shall not be eligible for the deduction provided under | ||||||
10 | this subparagraph
(L);
| ||||||
11 | (M) For any taxpayer that is a financial | ||||||
12 | organization within the meaning
of Section 304(c) of | ||||||
13 | this Act, an amount included in such total as interest
| ||||||
14 | income from a loan or loans made by such taxpayer to a | ||||||
15 | borrower, to the extent
that such a loan is secured by | ||||||
16 | property which is eligible for the Enterprise
Zone | ||||||
17 | Investment Credit or the River Edge Redevelopment Zone | ||||||
18 | Investment Credit. To determine the portion of a loan | ||||||
19 | or loans that is
secured by property eligible for a | ||||||
20 | Section 201(f) investment
credit to the borrower, the | ||||||
21 | entire principal amount of the loan or loans
between | ||||||
22 | the taxpayer and the borrower should be divided into | ||||||
23 | the basis of the
Section 201(f) investment credit | ||||||
24 | property which secures the
loan or loans, using for | ||||||
25 | this purpose the original basis of such property on
the | ||||||
26 | date that it was placed in service in the
Enterprise |
| |||||||
| |||||||
1 | Zone or the River Edge Redevelopment Zone. The | ||||||
2 | subtraction modification available to taxpayer in any
| ||||||
3 | year under this subsection shall be that portion of the | ||||||
4 | total interest paid
by the borrower with respect to | ||||||
5 | such loan attributable to the eligible
property as | ||||||
6 | calculated under the previous sentence. This | ||||||
7 | subparagraph (M) is exempt from the provisions of | ||||||
8 | Section 250;
| ||||||
9 | (M-1) For any taxpayer that is a financial | ||||||
10 | organization within the
meaning of Section 304(c) of | ||||||
11 | this Act, an amount included in such total as
interest | ||||||
12 | income from a loan or loans made by such taxpayer to a | ||||||
13 | borrower,
to the extent that such a loan is secured by | ||||||
14 | property which is eligible for
the High Impact Business | ||||||
15 | Investment Credit. To determine the portion of a
loan | ||||||
16 | or loans that is secured by property eligible for a | ||||||
17 | Section 201(h) investment credit to the borrower, the | ||||||
18 | entire principal amount of
the loan or loans between | ||||||
19 | the taxpayer and the borrower should be divided into
| ||||||
20 | the basis of the Section 201(h) investment credit | ||||||
21 | property which
secures the loan or loans, using for | ||||||
22 | this purpose the original basis of such
property on the | ||||||
23 | date that it was placed in service in a federally | ||||||
24 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
25 | Illinois. No taxpayer that is
eligible for the | ||||||
26 | deduction provided in subparagraph (M) of paragraph |
| |||||||
| |||||||
1 | (2) of
this subsection shall be eligible for the | ||||||
2 | deduction provided under this
subparagraph (M-1). The | ||||||
3 | subtraction modification available to taxpayers in
any | ||||||
4 | year under this subsection shall be that portion of the | ||||||
5 | total interest
paid by the borrower with respect to | ||||||
6 | such loan attributable to the eligible
property as | ||||||
7 | calculated under the previous sentence;
| ||||||
8 | (N) Two times any contribution made during the | ||||||
9 | taxable year to a
designated zone organization to the | ||||||
10 | extent that the contribution (i)
qualifies as a | ||||||
11 | charitable contribution under subsection (c) of | ||||||
12 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
13 | by its terms, be used for a
project approved by the | ||||||
14 | Department of Commerce and Economic Opportunity under | ||||||
15 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
16 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
17 | This subparagraph (N) is exempt from the provisions of | ||||||
18 | Section 250;
| ||||||
19 | (O) An amount equal to: (i) 85% for taxable years | ||||||
20 | ending on or before
December 31, 1992, or, a percentage | ||||||
21 | equal to the percentage allowable under
Section | ||||||
22 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
23 | taxable years ending
after December 31, 1992, of the | ||||||
24 | amount by which dividends included in taxable
income | ||||||
25 | and received from a corporation that is not created or | ||||||
26 | organized under
the laws of the United States or any |
| |||||||
| |||||||
1 | state or political subdivision thereof,
including, for | ||||||
2 | taxable years ending on or after December 31, 1988, | ||||||
3 | dividends
received or deemed received or paid or deemed | ||||||
4 | paid under Sections 951 through
965 964 of the Internal | ||||||
5 | Revenue Code, exceed the amount of the modification
| ||||||
6 | provided under subparagraph (G) of paragraph (2) of | ||||||
7 | this subsection (b) which
is related to such dividends, | ||||||
8 | and including, for taxable years ending on or after | ||||||
9 | December 31, 2008, dividends received from a captive | ||||||
10 | real estate investment trust; plus (ii) 100% of the | ||||||
11 | amount by which dividends,
included in taxable income | ||||||
12 | and received, including, for taxable years ending on
or | ||||||
13 | after December 31, 1988, dividends received or deemed | ||||||
14 | received or paid or
deemed paid under Sections 951 | ||||||
15 | through 964 of the Internal Revenue Code and including, | ||||||
16 | for taxable years ending on or after December 31, 2008, | ||||||
17 | dividends received from a captive real estate | ||||||
18 | investment trust, from
any such corporation specified | ||||||
19 | in clause (i) that would but for the provisions
of | ||||||
20 | Section 1504 (b) (3) of the Internal Revenue Code be | ||||||
21 | treated as a member of
the affiliated group which | ||||||
22 | includes the dividend recipient, exceed the amount
of | ||||||
23 | the modification provided under subparagraph (G) of | ||||||
24 | paragraph (2) of this
subsection (b) which is related | ||||||
25 | to such dividends. This subparagraph (O) is exempt from | ||||||
26 | the provisions of Section 250 of this Act;
|
| |||||||
| |||||||
1 | (P) An amount equal to any contribution made to a | ||||||
2 | job training project
established pursuant to the Tax | ||||||
3 | Increment Allocation Redevelopment Act;
| ||||||
4 | (Q) An amount equal to the amount of the deduction | ||||||
5 | used to compute the
federal income tax credit for | ||||||
6 | restoration of substantial amounts held under
claim of | ||||||
7 | right for the taxable year pursuant to Section 1341 of | ||||||
8 | the
Internal Revenue Code of 1986 ;
| ||||||
9 | (R) On and after July 20, 1999, in the case of an | ||||||
10 | attorney-in-fact with respect to whom an
interinsurer | ||||||
11 | or a reciprocal insurer has made the election under | ||||||
12 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
13 | 835, an amount equal to the excess, if
any, of the | ||||||
14 | amounts paid or incurred by that interinsurer or | ||||||
15 | reciprocal insurer
in the taxable year to the | ||||||
16 | attorney-in-fact over the deduction allowed to that
| ||||||
17 | interinsurer or reciprocal insurer with respect to the | ||||||
18 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
19 | Revenue Code for the taxable year; the provisions of | ||||||
20 | this subparagraph are exempt from the provisions of | ||||||
21 | Section 250;
| ||||||
22 | (S) For taxable years ending on or after December | ||||||
23 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
24 | amount equal to all amounts of income allocable to a
| ||||||
25 | shareholder subject to the Personal Property Tax | ||||||
26 | Replacement Income Tax imposed
by subsections (c) and |
| |||||||
| |||||||
1 | (d) of Section 201 of this Act, including amounts
| ||||||
2 | allocable to organizations exempt from federal income | ||||||
3 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
4 | Code. This subparagraph (S) is exempt from
the | ||||||
5 | provisions of Section 250;
| ||||||
6 | (T) For taxable years 2001 and thereafter, for the | ||||||
7 | taxable year in
which the bonus depreciation deduction
| ||||||
8 | is taken on the taxpayer's federal income tax return | ||||||
9 | under
subsection (k) of Section 168 of the Internal | ||||||
10 | Revenue Code and for each
applicable taxable year | ||||||
11 | thereafter, an amount equal to "x", where:
| ||||||
12 | (1) "y" equals the amount of the depreciation | ||||||
13 | deduction taken for the
taxable year
on the | ||||||
14 | taxpayer's federal income tax return on property | ||||||
15 | for which the bonus
depreciation deduction
was | ||||||
16 | taken in any year under subsection (k) of Section | ||||||
17 | 168 of the Internal
Revenue Code, but not including | ||||||
18 | the bonus depreciation deduction;
| ||||||
19 | (2) for taxable years ending on or before | ||||||
20 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
21 | and then divided by 70 (or "y"
multiplied by | ||||||
22 | 0.429); and | ||||||
23 | (3) for taxable years ending after December | ||||||
24 | 31, 2005: | ||||||
25 | (i) for property on which a bonus | ||||||
26 | depreciation deduction of 30% of the adjusted |
| |||||||
| |||||||
1 | basis was taken, "x" equals "y" multiplied by | ||||||
2 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
3 | 0.429); and | ||||||
4 | (ii) for property on which a bonus | ||||||
5 | depreciation deduction of 50% of the adjusted | ||||||
6 | basis was taken, "x" equals "y" multiplied by | ||||||
7 | 1.0.
| ||||||
8 | The aggregate amount deducted under this | ||||||
9 | subparagraph in all taxable
years for any one piece of | ||||||
10 | property may not exceed the amount of the bonus
| ||||||
11 | depreciation deduction
taken on that property on the | ||||||
12 | taxpayer's federal income tax return under
subsection | ||||||
13 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
14 | subparagraph (T) is exempt from the provisions of | ||||||
15 | Section 250;
| ||||||
16 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
17 | otherwise disposes of
property for which the taxpayer | ||||||
18 | was required in any taxable year to make an
addition | ||||||
19 | modification under subparagraph (E-10), then an amount | ||||||
20 | equal to that
addition modification.
| ||||||
21 | If the taxpayer continues to own property through | ||||||
22 | the last day of the last tax year for which the | ||||||
23 | taxpayer may claim a depreciation deduction for | ||||||
24 | federal income tax purposes and for which the taxpayer | ||||||
25 | was required in any taxable year to make an addition | ||||||
26 | modification under subparagraph (E-10), then an amount |
| |||||||
| |||||||
1 | equal to that addition modification.
| ||||||
2 | The taxpayer is allowed to take the deduction under | ||||||
3 | this subparagraph
only once with respect to any one | ||||||
4 | piece of property. | ||||||
5 | This subparagraph (U) is exempt from the | ||||||
6 | provisions of Section 250;
| ||||||
7 | (V) The amount of: (i) any interest income (net of | ||||||
8 | the deductions allocable thereto) taken into account | ||||||
9 | for the taxable year with respect to a transaction with | ||||||
10 | a taxpayer that is required to make an addition | ||||||
11 | modification with respect to such transaction under | ||||||
12 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
13 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
14 | the amount of such addition modification,
(ii) any | ||||||
15 | income from intangible property (net of the deductions | ||||||
16 | allocable thereto) taken into account for the taxable | ||||||
17 | year with respect to a transaction with a taxpayer that | ||||||
18 | is required to make an addition modification with | ||||||
19 | respect to such transaction under Section | ||||||
20 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
21 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
22 | addition modification, and (iii) any insurance premium | ||||||
23 | income (net of deductions allocable thereto , including | ||||||
24 | adjustments to loss reserves and payments for losses | ||||||
25 | with respect to a policy for which the premium was | ||||||
26 | received ) taken into account for the taxable year with |
| |||||||
| |||||||
1 | respect to a transaction with a taxpayer that is | ||||||
2 | required to make an addition modification with respect | ||||||
3 | to such transaction under Section 203(a)(2)(D-19), | ||||||
4 | Section 203(b)(2)(E-14), Section 203(c)(2)(G-14), or | ||||||
5 | Section 203(d)(2)(D-9), but not to exceed the amount of | ||||||
6 | that addition modification. This subparagraph (V) is | ||||||
7 | exempt from the provisions of Section 250;
| ||||||
8 | (W) An amount equal to the interest income taken | ||||||
9 | into account for the taxable year (net of the | ||||||
10 | deductions allocable thereto) with respect to | ||||||
11 | transactions with (i) a foreign person who would be a | ||||||
12 | member of the taxpayer's unitary business group but for | ||||||
13 | the fact that the foreign person's business activity | ||||||
14 | outside the United States is 80% or more of that | ||||||
15 | person's total business activity and (ii) for taxable | ||||||
16 | years ending on or after December 31, 2008, to a person | ||||||
17 | who would be a member of the same unitary business | ||||||
18 | group but for the fact that the person is prohibited | ||||||
19 | under Section 1501(a)(27) from being included in the | ||||||
20 | unitary business group because he or she is ordinarily | ||||||
21 | required to apportion business income under different | ||||||
22 | subsections of Section 304, but not to exceed the | ||||||
23 | addition modification required to be made for the same | ||||||
24 | taxable year under Section 203(b)(2)(E-12) for | ||||||
25 | interest paid, accrued, or incurred, directly or | ||||||
26 | indirectly, to the same person. This subparagraph (W) |
| |||||||
| |||||||
1 | is exempt from the provisions of Section 250; and
| ||||||
2 | (X) An amount equal to the income from intangible | ||||||
3 | property taken into account for the taxable year (net | ||||||
4 | of the deductions allocable thereto) with respect to | ||||||
5 | transactions with (i) a foreign person who would be a | ||||||
6 | member of the taxpayer's unitary business group but for | ||||||
7 | the fact that the foreign person's business activity | ||||||
8 | outside the United States is 80% or more of that | ||||||
9 | person's total business activity and (ii) for taxable | ||||||
10 | years ending on or after December 31, 2008, to a person | ||||||
11 | who would be a member of the same unitary business | ||||||
12 | group but for the fact that the person is prohibited | ||||||
13 | under Section 1501(a)(27) from being included in the | ||||||
14 | unitary business group because he or she is ordinarily | ||||||
15 | required to apportion business income under different | ||||||
16 | subsections of Section 304, but not to exceed the | ||||||
17 | addition modification required to be made for the same | ||||||
18 | taxable year under Section 203(b)(2)(E-13) for | ||||||
19 | intangible expenses and costs paid, accrued, or | ||||||
20 | incurred, directly or indirectly, to the same foreign | ||||||
21 | person. This subparagraph (X) is exempt from the | ||||||
22 | provisions of Section 250 ; and | ||||||
23 | (Y) For taxable years ending on or after December | ||||||
24 | 31, 2008, in the case of a taxpayer who was required to | ||||||
25 | add back any insurance premiums under Section | ||||||
26 | 203(b)(2)(E-14), an amount equal to the amount of any |
| |||||||
| |||||||
1 | reimbursement received from the insurance company for | ||||||
2 | any loss covered by a policy for which those premiums | ||||||
3 | were paid, to the extent of the federal income tax | ||||||
4 | deduction that would have been allowable for the loss | ||||||
5 | if not for the reimbursement. This subparagraph (Y) is | ||||||
6 | exempt from the provisions of Section 250 .
| ||||||
7 | (3) Special rule. For purposes of paragraph (2) (A), | ||||||
8 | "gross income"
in the case of a life insurance company, for | ||||||
9 | tax years ending on and after
December 31, 1994,
and prior | ||||||
10 | to December 31, 2008, shall mean the gross investment | ||||||
11 | income for the taxable year and, for tax years ending on or | ||||||
12 | after December 31, 2008, shall mean all amounts included in | ||||||
13 | life insurance gross income under Section 803(a)(3) of the | ||||||
14 | Internal Revenue Code .
| ||||||
15 | (c) Trusts and estates.
| ||||||
16 | (1) In general. In the case of a trust or estate, base | ||||||
17 | income means
an amount equal to the taxpayer's taxable | ||||||
18 | income for the taxable year as
modified by paragraph (2).
| ||||||
19 | (2) Modifications. Subject to the provisions of | ||||||
20 | paragraph (3), the
taxable income referred to in paragraph | ||||||
21 | (1) shall be modified by adding
thereto the sum of the | ||||||
22 | following amounts:
| ||||||
23 | (A) An amount equal to all amounts paid or accrued | ||||||
24 | to the taxpayer
as interest or dividends during the | ||||||
25 | taxable year to the extent excluded
from gross income |
| |||||||
| |||||||
1 | in the computation of taxable income;
| ||||||
2 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
3 | trust which, under
its governing instrument, is | ||||||
4 | required to distribute all of its income
currently, | ||||||
5 | $300; and (iii) any other trust, $100, but in each such | ||||||
6 | case,
only to the extent such amount was deducted in | ||||||
7 | the computation of
taxable income;
| ||||||
8 | (C) An amount equal to the amount of tax imposed by | ||||||
9 | this Act to the
extent deducted from gross income in | ||||||
10 | the computation of taxable income
for the taxable year;
| ||||||
11 | (D) The amount of any net operating loss deduction | ||||||
12 | taken in arriving at
taxable income, other than a net | ||||||
13 | operating loss carried forward from a
taxable year | ||||||
14 | ending prior to December 31, 1986;
| ||||||
15 | (E) For taxable years in which a net operating loss | ||||||
16 | carryback or
carryforward from a taxable year ending | ||||||
17 | prior to December 31, 1986 is an
element of taxable | ||||||
18 | income under paragraph (1) of subsection (e) or | ||||||
19 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
20 | the amount by which addition
modifications other than | ||||||
21 | those provided by this subparagraph (E) exceeded
| ||||||
22 | subtraction modifications in such taxable year, with | ||||||
23 | the following limitations
applied in the order that | ||||||
24 | they are listed:
| ||||||
25 | (i) the addition modification relating to the | ||||||
26 | net operating loss
carried back or forward to the |
| |||||||
| |||||||
1 | taxable year from any taxable year ending
prior to | ||||||
2 | December 31, 1986 shall be reduced by the amount of | ||||||
3 | addition
modification under this subparagraph (E) | ||||||
4 | which related to that net
operating loss and which | ||||||
5 | was taken into account in calculating the base
| ||||||
6 | income of an earlier taxable year, and
| ||||||
7 | (ii) the addition modification relating to the | ||||||
8 | net operating loss
carried back or forward to the | ||||||
9 | taxable year from any taxable year ending
prior to | ||||||
10 | December 31, 1986 shall not exceed the amount of | ||||||
11 | such carryback or
carryforward;
| ||||||
12 | For taxable years in which there is a net operating | ||||||
13 | loss carryback or
carryforward from more than one other | ||||||
14 | taxable year ending prior to December
31, 1986, the | ||||||
15 | addition modification provided in this subparagraph | ||||||
16 | (E) shall
be the sum of the amounts computed | ||||||
17 | independently under the preceding
provisions of this | ||||||
18 | subparagraph (E) for each such taxable year;
| ||||||
19 | (F) For taxable years ending on or after January 1, | ||||||
20 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
21 | Section 164 of the Internal Revenue
Code if the trust | ||||||
22 | or estate is claiming the same tax for purposes of the
| ||||||
23 | Illinois foreign tax credit under Section 601 of this | ||||||
24 | Act;
| ||||||
25 | (G) An amount equal to the amount of the capital | ||||||
26 | gain deduction
allowable under the Internal Revenue |
| |||||||
| |||||||
1 | Code, to the extent deducted from
gross income in the | ||||||
2 | computation of taxable income;
| ||||||
3 | (G-5) For taxable years ending after December 31, | ||||||
4 | 1997, an
amount equal to any eligible remediation costs | ||||||
5 | that the trust or estate
deducted in computing adjusted | ||||||
6 | gross income and for which the trust
or estate claims a | ||||||
7 | credit under subsection (l) of Section 201;
| ||||||
8 | (G-10) For taxable years 2001 and thereafter, an | ||||||
9 | amount equal to the
bonus depreciation deduction taken | ||||||
10 | on the taxpayer's federal income tax return for the | ||||||
11 | taxable
year under subsection (k) of Section 168 of the | ||||||
12 | Internal Revenue Code; and
| ||||||
13 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
14 | or otherwise disposes of property for which the | ||||||
15 | taxpayer was required in any taxable year to
make an | ||||||
16 | addition modification under subparagraph (G-10), then | ||||||
17 | an amount equal
to the aggregate amount of the | ||||||
18 | deductions taken in all taxable
years under | ||||||
19 | subparagraph (R) with respect to that property.
| ||||||
20 | If the taxpayer continues to own property through | ||||||
21 | the last day of the last tax year for which the | ||||||
22 | taxpayer may claim a depreciation deduction for | ||||||
23 | federal income tax purposes and for which the taxpayer | ||||||
24 | was allowed in any taxable year to make a subtraction | ||||||
25 | modification under subparagraph (R), then an amount | ||||||
26 | equal to that subtraction modification.
|
| |||||||
| |||||||
1 | The taxpayer is required to make the addition | ||||||
2 | modification under this
subparagraph
only once with | ||||||
3 | respect to any one piece of property;
| ||||||
4 | (G-12) An amount equal to the amount otherwise | ||||||
5 | allowed as a deduction in computing base income for | ||||||
6 | interest paid, accrued, or incurred, directly or | ||||||
7 | indirectly, (i) for taxable years ending on or after | ||||||
8 | December 31, 2004, to a foreign person who would be a | ||||||
9 | member of the same unitary business group but for the | ||||||
10 | fact that the foreign person's business activity | ||||||
11 | outside the United States is 80% or more of the foreign | ||||||
12 | person's total business activity and (ii) for taxable | ||||||
13 | years ending on or after December 31, 2008, to a person | ||||||
14 | who would be a member of the same unitary business | ||||||
15 | group but for the fact that the person is prohibited | ||||||
16 | under Section 1501(a)(27) from being included in the | ||||||
17 | unitary business group because he or she is ordinarily | ||||||
18 | required to apportion business income under different | ||||||
19 | subsections of Section 304. The addition modification | ||||||
20 | required by this subparagraph shall be reduced to the | ||||||
21 | extent that dividends were included in base income of | ||||||
22 | the unitary group for the same taxable year and | ||||||
23 | received by the taxpayer or by a member of the | ||||||
24 | taxpayer's unitary business group (including amounts | ||||||
25 | included in gross income pursuant to Sections 951 | ||||||
26 | through 964 of the Internal Revenue Code and amounts |
| |||||||
| |||||||
1 | included in gross income under Section 78 of the | ||||||
2 | Internal Revenue Code) with respect to the stock of the | ||||||
3 | same person to whom the interest was paid, accrued, or | ||||||
4 | incurred.
| ||||||
5 | This paragraph shall not apply to the following:
| ||||||
6 | (i) an item of interest paid, accrued, or | ||||||
7 | incurred, directly or indirectly, to a person who | ||||||
8 | is subject in a foreign country or state, other | ||||||
9 | than a state which requires mandatory unitary | ||||||
10 | reporting, to a tax on or measured by net income | ||||||
11 | with respect to such interest; or | ||||||
12 | (ii) an item of interest paid, accrued, or | ||||||
13 | incurred, directly or indirectly, to a person if | ||||||
14 | the taxpayer can establish, based on a | ||||||
15 | preponderance of the evidence, both of the | ||||||
16 | following: | ||||||
17 | (a) the person, during the same taxable | ||||||
18 | year, paid, accrued, or incurred, the interest | ||||||
19 | to a person that is not a related member, and | ||||||
20 | (b) the transaction giving rise to the | ||||||
21 | interest expense between the taxpayer and the | ||||||
22 | person did not have as a principal purpose the | ||||||
23 | avoidance of Illinois income tax, and is paid | ||||||
24 | pursuant to a contract or agreement that | ||||||
25 | reflects an arm's-length interest rate and | ||||||
26 | terms; or
|
| |||||||
| |||||||
1 | (iii) the taxpayer can establish, based on | ||||||
2 | clear and convincing evidence, that the interest | ||||||
3 | paid, accrued, or incurred relates to a contract or | ||||||
4 | agreement entered into at arm's-length rates and | ||||||
5 | terms and the principal purpose for the payment is | ||||||
6 | not federal or Illinois tax avoidance; or
| ||||||
7 | (iv) an item of interest paid, accrued, or | ||||||
8 | incurred, directly or indirectly, to a person if | ||||||
9 | the taxpayer establishes by clear and convincing | ||||||
10 | evidence that the adjustments are unreasonable; or | ||||||
11 | if the taxpayer and the Director agree in writing | ||||||
12 | to the application or use of an alternative method | ||||||
13 | of apportionment under Section 304(f).
| ||||||
14 | Nothing in this subsection shall preclude the | ||||||
15 | Director from making any other adjustment | ||||||
16 | otherwise allowed under Section 404 of this Act for | ||||||
17 | any tax year beginning after the effective date of | ||||||
18 | this amendment provided such adjustment is made | ||||||
19 | pursuant to regulation adopted by the Department | ||||||
20 | and such regulations provide methods and standards | ||||||
21 | by which the Department will utilize its authority | ||||||
22 | under Section 404 of this Act;
| ||||||
23 | (G-13) An amount equal to the amount of intangible | ||||||
24 | expenses and costs otherwise allowed as a deduction in | ||||||
25 | computing base income, and that were paid, accrued, or | ||||||
26 | incurred, directly or indirectly, (i) for taxable |
| |||||||
| |||||||
1 | years ending on or after December 31, 2004, to a | ||||||
2 | foreign person who would be a member of the same | ||||||
3 | unitary business group but for the fact that the | ||||||
4 | foreign person's business activity outside the United | ||||||
5 | States is 80% or more of that person's total business | ||||||
6 | activity and (ii) for taxable years ending on or after | ||||||
7 | December 31, 2008, to a person who would be a member of | ||||||
8 | the same unitary business group but for the fact that | ||||||
9 | the person is prohibited under Section 1501(a)(27) | ||||||
10 | from being included in the unitary business group | ||||||
11 | because he or she is ordinarily required to apportion | ||||||
12 | business income under different subsections of Section | ||||||
13 | 304. The addition modification required by this | ||||||
14 | subparagraph shall be reduced to the extent that | ||||||
15 | dividends were included in base income of the unitary | ||||||
16 | group for the same taxable year and received by the | ||||||
17 | taxpayer or by a member of the taxpayer's unitary | ||||||
18 | business group (including amounts included in gross | ||||||
19 | income pursuant to Sections 951 through 964 of the | ||||||
20 | Internal Revenue Code and amounts included in gross | ||||||
21 | income under Section 78 of the Internal Revenue Code) | ||||||
22 | with respect to the stock of the same person to whom | ||||||
23 | the intangible expenses and costs were directly or | ||||||
24 | indirectly paid, incurred, or accrued. The preceding | ||||||
25 | sentence shall not apply to the extent that the same | ||||||
26 | dividends caused a reduction to the addition |
| |||||||
| |||||||
1 | modification required under Section 203(c)(2)(G-12) of | ||||||
2 | this Act. As used in this subparagraph, the term | ||||||
3 | "intangible expenses and costs" includes: (1) | ||||||
4 | expenses, losses, and costs for or related to the | ||||||
5 | direct or indirect acquisition, use, maintenance or | ||||||
6 | management, ownership, sale, exchange, or any other | ||||||
7 | disposition of intangible property; (2) losses | ||||||
8 | incurred, directly or indirectly, from factoring | ||||||
9 | transactions or discounting transactions; (3) royalty, | ||||||
10 | patent, technical, and copyright fees; (4) licensing | ||||||
11 | fees; and (5) other similar expenses and costs. For | ||||||
12 | purposes of this subparagraph, "intangible property" | ||||||
13 | includes patents, patent applications, trade names, | ||||||
14 | trademarks, service marks, copyrights, mask works, | ||||||
15 | trade secrets, and similar types of intangible assets. | ||||||
16 | This paragraph shall not apply to the following: | ||||||
17 | (i) any item of intangible expenses or costs | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, from a transaction with a person who is | ||||||
20 | subject in a foreign country or state, other than a | ||||||
21 | state which requires mandatory unitary reporting, | ||||||
22 | to a tax on or measured by net income with respect | ||||||
23 | to such item; or | ||||||
24 | (ii) any item of intangible expense or cost | ||||||
25 | paid, accrued, or incurred, directly or | ||||||
26 | indirectly, if the taxpayer can establish, based |
| |||||||
| |||||||
1 | on a preponderance of the evidence, both of the | ||||||
2 | following: | ||||||
3 | (a) the person during the same taxable | ||||||
4 | year paid, accrued, or incurred, the | ||||||
5 | intangible expense or cost to a person that is | ||||||
6 | not a related member, and | ||||||
7 | (b) the transaction giving rise to the | ||||||
8 | intangible expense or cost between the | ||||||
9 | taxpayer and the person did not have as a | ||||||
10 | principal purpose the avoidance of Illinois | ||||||
11 | income tax, and is paid pursuant to a contract | ||||||
12 | or agreement that reflects arm's-length terms; | ||||||
13 | or | ||||||
14 | (iii) any item of intangible expense or cost | ||||||
15 | paid, accrued, or incurred, directly or | ||||||
16 | indirectly, from a transaction with a person if the | ||||||
17 | taxpayer establishes by clear and convincing | ||||||
18 | evidence, that the adjustments are unreasonable; | ||||||
19 | or if the taxpayer and the Director agree in | ||||||
20 | writing to the application or use of an alternative | ||||||
21 | method of apportionment under Section 304(f);
| ||||||
22 | Nothing in this subsection shall preclude the | ||||||
23 | Director from making any other adjustment | ||||||
24 | otherwise allowed under Section 404 of this Act for | ||||||
25 | any tax year beginning after the effective date of | ||||||
26 | this amendment provided such adjustment is made |
| |||||||
| |||||||
1 | pursuant to regulation adopted by the Department | ||||||
2 | and such regulations provide methods and standards | ||||||
3 | by which the Department will utilize its authority | ||||||
4 | under Section 404 of this Act;
| ||||||
5 | (G-14) For taxable years ending on or after | ||||||
6 | December 31, 2008, an amount equal to the amount of | ||||||
7 | insurance premium expenses and costs otherwise allowed | ||||||
8 | as a deduction in computing base income, and that were | ||||||
9 | paid, accrued, or incurred, directly or indirectly, to | ||||||
10 | a person who would be a member of the same unitary | ||||||
11 | business group but for the fact that the person is | ||||||
12 | prohibited under Section 1501(a)(27) from being | ||||||
13 | included in the unitary business group because he or | ||||||
14 | she is ordinarily required to apportion business | ||||||
15 | income under different subsections of Section 304. The | ||||||
16 | addition modification required by this subparagraph | ||||||
17 | shall be reduced to the extent that dividends were | ||||||
18 | included in base income of the unitary group for the | ||||||
19 | same taxable year and received by the taxpayer or by a | ||||||
20 | member of the taxpayer's unitary business group | ||||||
21 | (including amounts included in gross income under | ||||||
22 | Sections 951 through 964 of the Internal Revenue Code | ||||||
23 | and amounts included in gross income under Section 78 | ||||||
24 | of the Internal Revenue Code) with respect to the stock | ||||||
25 | of the same person to whom the premiums and costs were | ||||||
26 | directly or indirectly paid, incurred, or accrued. The |
| |||||||
| |||||||
1 | preceding sentence does not apply to the extent that | ||||||
2 | the same dividends caused a reduction to the addition | ||||||
3 | modification required under Section 203(c)(2)(G-12) or | ||||||
4 | Section 203(c)(2)(G-13) of this Act.
| ||||||
5 | and by deducting from the total so obtained the sum of the | ||||||
6 | following
amounts:
| ||||||
7 | (H) An amount equal to all amounts included in such | ||||||
8 | total pursuant
to the provisions of Sections 402(a), | ||||||
9 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
10 | Internal Revenue Code or included in such total as
| ||||||
11 | distributions under the provisions of any retirement | ||||||
12 | or disability plan for
employees of any governmental | ||||||
13 | agency or unit, or retirement payments to
retired | ||||||
14 | partners, which payments are excluded in computing net | ||||||
15 | earnings
from self employment by Section 1402 of the | ||||||
16 | Internal Revenue Code and
regulations adopted pursuant | ||||||
17 | thereto;
| ||||||
18 | (I) The valuation limitation amount;
| ||||||
19 | (J) An amount equal to the amount of any tax | ||||||
20 | imposed by this Act
which was refunded to the taxpayer | ||||||
21 | and included in such total for the
taxable year;
| ||||||
22 | (K) An amount equal to all amounts included in | ||||||
23 | taxable income as
modified by subparagraphs (A), (B), | ||||||
24 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
25 | taxation by this State either by reason of its statutes | ||||||
26 | or
Constitution
or by reason of the Constitution, |
| |||||||
| |||||||
1 | treaties or statutes of the United States;
provided | ||||||
2 | that, in the case of any statute of this State that | ||||||
3 | exempts income
derived from bonds or other obligations | ||||||
4 | from the tax imposed under this Act,
the amount | ||||||
5 | exempted shall be the interest net of bond premium | ||||||
6 | amortization;
| ||||||
7 | (L) With the exception of any amounts subtracted | ||||||
8 | under subparagraph
(K),
an amount equal to the sum of | ||||||
9 | all amounts disallowed as
deductions by (i) Sections | ||||||
10 | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code , | ||||||
11 | as now or hereafter amended , and all amounts of | ||||||
12 | expenses allocable
to interest and disallowed as | ||||||
13 | deductions by Section 265(1) of the Internal
Revenue | ||||||
14 | Code of 1954 , as now or hereafter amended ;
and (ii) for | ||||||
15 | taxable years
ending on or after August 13, 1999, | ||||||
16 | Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
17 | the Internal Revenue Code ; and (iii) for taxable years | ||||||
18 | ending on or after December 31, 2008, Section 45G(e)(3) | ||||||
19 | of the Internal Revenue Code ; the provisions of this
| ||||||
20 | subparagraph are exempt from the provisions of Section | ||||||
21 | 250;
| ||||||
22 | (M) An amount equal to those dividends included in | ||||||
23 | such total
which were paid by a corporation which | ||||||
24 | conducts business operations in an
Enterprise Zone or | ||||||
25 | zones created under the Illinois Enterprise Zone Act or | ||||||
26 | a River Edge Redevelopment Zone or zones created under |
| |||||||
| |||||||
1 | the River Edge Redevelopment Zone Act and
conducts | ||||||
2 | substantially all of its operations in an Enterprise | ||||||
3 | Zone or Zones or a River Edge Redevelopment Zone or | ||||||
4 | zones. This subparagraph (M) is exempt from the | ||||||
5 | provisions of Section 250;
| ||||||
6 | (N) An amount equal to any contribution made to a | ||||||
7 | job training
project established pursuant to the Tax | ||||||
8 | Increment Allocation
Redevelopment Act;
| ||||||
9 | (O) An amount equal to those dividends included in | ||||||
10 | such total
that were paid by a corporation that | ||||||
11 | conducts business operations in a
federally designated | ||||||
12 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
13 | High Impact Business located in Illinois; provided | ||||||
14 | that dividends eligible
for the deduction provided in | ||||||
15 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
16 | shall not be eligible for the deduction provided under | ||||||
17 | this
subparagraph (O);
| ||||||
18 | (P) An amount equal to the amount of the deduction | ||||||
19 | used to compute the
federal income tax credit for | ||||||
20 | restoration of substantial amounts held under
claim of | ||||||
21 | right for the taxable year pursuant to Section 1341 of | ||||||
22 | the
Internal Revenue Code of 1986 ;
| ||||||
23 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
24 | equal to the
amount of any
(i) distributions, to the | ||||||
25 | extent includible in gross income for
federal income | ||||||
26 | tax purposes, made to the taxpayer because of
his or |
| |||||||
| |||||||
1 | her status as a victim of
persecution for racial or | ||||||
2 | religious reasons by Nazi Germany or any other Axis
| ||||||
3 | regime or as an heir of the victim and (ii) items
of | ||||||
4 | income, to the extent
includible in gross income for | ||||||
5 | federal income tax purposes, attributable to,
derived | ||||||
6 | from or in any way related to assets stolen from, | ||||||
7 | hidden from, or
otherwise lost to a victim of
| ||||||
8 | persecution for racial or religious reasons by Nazi
| ||||||
9 | Germany or any other Axis regime
immediately prior to, | ||||||
10 | during, and immediately after World War II, including,
| ||||||
11 | but
not limited to, interest on the proceeds receivable | ||||||
12 | as insurance
under policies issued to a victim of | ||||||
13 | persecution for racial or religious
reasons by Nazi | ||||||
14 | Germany or any other Axis regime by European insurance
| ||||||
15 | companies
immediately prior to and during World War II;
| ||||||
16 | provided, however, this subtraction from federal | ||||||
17 | adjusted gross income does not
apply to assets acquired | ||||||
18 | with such assets or with the proceeds from the sale of
| ||||||
19 | such assets; provided, further, this paragraph shall | ||||||
20 | only apply to a taxpayer
who was the first recipient of | ||||||
21 | such assets after their recovery and who is a
victim of
| ||||||
22 | persecution for racial or religious reasons
by Nazi | ||||||
23 | Germany or any other Axis regime or as an heir of the | ||||||
24 | victim. The
amount of and the eligibility for any | ||||||
25 | public assistance, benefit, or
similar entitlement is | ||||||
26 | not affected by the inclusion of items (i) and (ii) of
|
| |||||||
| |||||||
1 | this paragraph in gross income for federal income tax | ||||||
2 | purposes.
This paragraph is exempt from the provisions | ||||||
3 | of Section 250;
| ||||||
4 | (R) For taxable years 2001 and thereafter, for the | ||||||
5 | taxable year in
which the bonus depreciation deduction
| ||||||
6 | is taken on the taxpayer's federal income tax return | ||||||
7 | under
subsection (k) of Section 168 of the Internal | ||||||
8 | Revenue Code and for each
applicable taxable year | ||||||
9 | thereafter, an amount equal to "x", where:
| ||||||
10 | (1) "y" equals the amount of the depreciation | ||||||
11 | deduction taken for the
taxable year
on the | ||||||
12 | taxpayer's federal income tax return on property | ||||||
13 | for which the bonus
depreciation deduction
was | ||||||
14 | taken in any year under subsection (k) of Section | ||||||
15 | 168 of the Internal
Revenue Code, but not including | ||||||
16 | the bonus depreciation deduction;
| ||||||
17 | (2) for taxable years ending on or before | ||||||
18 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
19 | and then divided by 70 (or "y"
multiplied by | ||||||
20 | 0.429); and | ||||||
21 | (3) for taxable years ending after December | ||||||
22 | 31, 2005: | ||||||
23 | (i) for property on which a bonus | ||||||
24 | depreciation deduction of 30% of the adjusted | ||||||
25 | basis was taken, "x" equals "y" multiplied by | ||||||
26 | 30 and then divided by 70 (or "y"
multiplied by |
| |||||||
| |||||||
1 | 0.429); and | ||||||
2 | (ii) for property on which a bonus | ||||||
3 | depreciation deduction of 50% of the adjusted | ||||||
4 | basis was taken, "x" equals "y" multiplied by | ||||||
5 | 1.0.
| ||||||
6 | The aggregate amount deducted under this | ||||||
7 | subparagraph in all taxable
years for any one piece of | ||||||
8 | property may not exceed the amount of the bonus
| ||||||
9 | depreciation deduction
taken on that property on the | ||||||
10 | taxpayer's federal income tax return under
subsection | ||||||
11 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
12 | subparagraph (R) is exempt from the provisions of | ||||||
13 | Section 250;
| ||||||
14 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
15 | otherwise disposes of
property for which the taxpayer | ||||||
16 | was required in any taxable year to make an
addition | ||||||
17 | modification under subparagraph (G-10), then an amount | ||||||
18 | equal to that
addition modification.
| ||||||
19 | If the taxpayer continues to own property through | ||||||
20 | the last day of the last tax year for which the | ||||||
21 | taxpayer may claim a depreciation deduction for | ||||||
22 | federal income tax purposes and for which the taxpayer | ||||||
23 | was required in any taxable year to make an addition | ||||||
24 | modification under subparagraph (G-10), then an amount | ||||||
25 | equal to that addition modification.
| ||||||
26 | The taxpayer is allowed to take the deduction under |
| |||||||
| |||||||
1 | this subparagraph
only once with respect to any one | ||||||
2 | piece of property. | ||||||
3 | This subparagraph (S) is exempt from the | ||||||
4 | provisions of Section 250;
| ||||||
5 | (T) The amount of (i) any interest income (net of | ||||||
6 | the deductions allocable thereto) taken into account | ||||||
7 | for the taxable year with respect to a transaction with | ||||||
8 | a taxpayer that is required to make an addition | ||||||
9 | modification with respect to such transaction under | ||||||
10 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
11 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
12 | the amount of such addition modification and
(ii) any | ||||||
13 | income from intangible property (net of the deductions | ||||||
14 | allocable thereto) taken into account for the taxable | ||||||
15 | year with respect to a transaction with a taxpayer that | ||||||
16 | is required to make an addition modification with | ||||||
17 | respect to such transaction under Section | ||||||
18 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
19 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
20 | addition modification. This subparagraph (T) is exempt | ||||||
21 | from the provisions of Section 250;
| ||||||
22 | (U) An amount equal to the interest income taken | ||||||
23 | into account for the taxable year (net of the | ||||||
24 | deductions allocable thereto) with respect to | ||||||
25 | transactions with (i) a foreign person who would be a | ||||||
26 | member of the taxpayer's unitary business group but for |
| |||||||
| |||||||
1 | the fact the foreign person's business activity | ||||||
2 | outside the United States is 80% or more of that | ||||||
3 | person's total business activity and (ii) for taxable | ||||||
4 | years ending on or after December 31, 2008, to a person | ||||||
5 | who would be a member of the same unitary business | ||||||
6 | group but for the fact that the person is prohibited | ||||||
7 | under Section 1501(a)(27) from being included in the | ||||||
8 | unitary business group because he or she is ordinarily | ||||||
9 | required to apportion business income under different | ||||||
10 | subsections of Section 304, but not to exceed the | ||||||
11 | addition modification required to be made for the same | ||||||
12 | taxable year under Section 203(c)(2)(G-12) for | ||||||
13 | interest paid, accrued, or incurred, directly or | ||||||
14 | indirectly, to the same person. This subparagraph (U) | ||||||
15 | is exempt from the provisions of Section 250; and | ||||||
16 | (V) An amount equal to the income from intangible | ||||||
17 | property taken into account for the taxable year (net | ||||||
18 | of the deductions allocable thereto) with respect to | ||||||
19 | transactions with (i) a foreign person who would be a | ||||||
20 | member of the taxpayer's unitary business group but for | ||||||
21 | the fact that the foreign person's business activity | ||||||
22 | outside the United States is 80% or more of that | ||||||
23 | person's total business activity and (ii) for taxable | ||||||
24 | years ending on or after December 31, 2008, to a person | ||||||
25 | who would be a member of the same unitary business | ||||||
26 | group but for the fact that the person is prohibited |
| |||||||
| |||||||
1 | under Section 1501(a)(27) from being included in the | ||||||
2 | unitary business group because he or she is ordinarily | ||||||
3 | required to apportion business income under different | ||||||
4 | subsections of Section 304, but not to exceed the | ||||||
5 | addition modification required to be made for the same | ||||||
6 | taxable year under Section 203(c)(2)(G-13) for | ||||||
7 | intangible expenses and costs paid, accrued, or | ||||||
8 | incurred, directly or indirectly, to the same foreign | ||||||
9 | person. This subparagraph (V) is exempt from the | ||||||
10 | provisions of Section 250 ; | ||||||
11 | (W) in the case of an estate, an amount equal to | ||||||
12 | all amounts included in such total pursuant to the | ||||||
13 | provisions of Section 111 of the Internal Revenue Code | ||||||
14 | as a recovery of items previously deducted by the | ||||||
15 | decedent from adjusted gross income in the computation | ||||||
16 | of taxable income. This subparagraph (W) is exempt from | ||||||
17 | Section 250; | ||||||
18 | (X) an amount equal to the refund included in such | ||||||
19 | total of any tax deducted for federal income tax | ||||||
20 | purposes, to the extent that deduction was added back | ||||||
21 | under subparagraph (F). This subparagraph (X) is | ||||||
22 | exempt from the provisions of Section 250; and | ||||||
23 | (Y) For taxable years ending on or after December | ||||||
24 | 31, 2008, in the case of a taxpayer who was required to | ||||||
25 | add back any insurance premiums under Section | ||||||
26 | 203(c)(2)(G-14), an amount equal to the amount of any |
| |||||||
| |||||||
1 | reimbursement received from the insurance company for | ||||||
2 | any loss covered by a policy for which those premiums | ||||||
3 | were paid, to the extent of the federal income tax | ||||||
4 | deduction that would have been allowable for the loss | ||||||
5 | if not for the reimbursement. This subparagraph (Y) is | ||||||
6 | exempt from the provisions of Section 250 .
| ||||||
7 | (3) Limitation. The amount of any modification | ||||||
8 | otherwise required
under this subsection shall, under | ||||||
9 | regulations prescribed by the
Department, be adjusted by | ||||||
10 | any amounts included therein which were
properly paid, | ||||||
11 | credited, or required to be distributed, or permanently set
| ||||||
12 | aside for charitable purposes pursuant to Internal Revenue | ||||||
13 | Code Section
642(c) during the taxable year.
| ||||||
14 | (d) Partnerships.
| ||||||
15 | (1) In general. In the case of a partnership, base | ||||||
16 | income means an
amount equal to the taxpayer's taxable | ||||||
17 | income for the taxable year as
modified by paragraph (2).
| ||||||
18 | (2) Modifications. The taxable income referred to in | ||||||
19 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
20 | of the following amounts:
| ||||||
21 | (A) An amount equal to all amounts paid or accrued | ||||||
22 | to the taxpayer as
interest or dividends during the | ||||||
23 | taxable year to the extent excluded from
gross income | ||||||
24 | in the computation of taxable income;
| ||||||
25 | (B) An amount equal to the amount of tax imposed by |
| |||||||
| |||||||
1 | this Act to the
extent deducted from gross income for | ||||||
2 | the taxable year;
| ||||||
3 | (C) The amount of deductions allowed to the | ||||||
4 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
5 | Revenue Code in calculating its taxable income;
| ||||||
6 | (D) An amount equal to the amount of the capital | ||||||
7 | gain deduction
allowable under the Internal Revenue | ||||||
8 | Code, to the extent deducted from
gross income in the | ||||||
9 | computation of taxable income;
| ||||||
10 | (D-5) For taxable years 2001 and thereafter, an | ||||||
11 | amount equal to the
bonus depreciation deduction taken | ||||||
12 | on the taxpayer's federal income tax return for the | ||||||
13 | taxable
year under subsection (k) of Section 168 of the | ||||||
14 | Internal Revenue Code;
| ||||||
15 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
16 | or otherwise disposes of
property for which the | ||||||
17 | taxpayer was required in any taxable year to make an
| ||||||
18 | addition modification under subparagraph (D-5), then | ||||||
19 | an amount equal to the
aggregate amount of the | ||||||
20 | deductions taken in all taxable years
under | ||||||
21 | subparagraph (O) with respect to that property.
| ||||||
22 | If the taxpayer continues to own property through | ||||||
23 | the last day of the last tax year for which the | ||||||
24 | taxpayer may claim a depreciation deduction for | ||||||
25 | federal income tax purposes and for which the taxpayer | ||||||
26 | was allowed in any taxable year to make a subtraction |
| |||||||
| |||||||
1 | modification under subparagraph (O), then an amount | ||||||
2 | equal to that subtraction modification.
| ||||||
3 | The taxpayer is required to make the addition | ||||||
4 | modification under this
subparagraph
only once with | ||||||
5 | respect to any one piece of property;
| ||||||
6 | (D-7) An amount equal to the amount otherwise | ||||||
7 | allowed as a deduction in computing base income for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, (i) for taxable years ending on or after | ||||||
10 | December 31, 2004, to a foreign person who would be a | ||||||
11 | member of the same unitary business group but for the | ||||||
12 | fact the foreign person's business activity outside | ||||||
13 | the United States is 80% or more of the foreign | ||||||
14 | person's total business activity and (ii) for taxable | ||||||
15 | years ending on or after December 31, 2008, to a person | ||||||
16 | who would be a member of the same unitary business | ||||||
17 | group but for the fact that the person is prohibited | ||||||
18 | under Section 1501(a)(27) from being included in the | ||||||
19 | unitary business group because he or she is ordinarily | ||||||
20 | required to apportion business income under different | ||||||
21 | subsections of Section 304. The addition modification | ||||||
22 | required by this subparagraph shall be reduced to the | ||||||
23 | extent that dividends were included in base income of | ||||||
24 | the unitary group for the same taxable year and | ||||||
25 | received by the taxpayer or by a member of the | ||||||
26 | taxpayer's unitary business group (including amounts |
| |||||||
| |||||||
1 | included in gross income pursuant to Sections 951 | ||||||
2 | through 964 of the Internal Revenue Code and amounts | ||||||
3 | included in gross income under Section 78 of the | ||||||
4 | Internal Revenue Code) with respect to the stock of the | ||||||
5 | same person to whom the interest was paid, accrued, or | ||||||
6 | incurred.
| ||||||
7 | This paragraph shall not apply to the following:
| ||||||
8 | (i) an item of interest paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to a person who | ||||||
10 | is subject in a foreign country or state, other | ||||||
11 | than a state which requires mandatory unitary | ||||||
12 | reporting, to a tax on or measured by net income | ||||||
13 | with respect to such interest; or | ||||||
14 | (ii) an item of interest paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to a person if | ||||||
16 | the taxpayer can establish, based on a | ||||||
17 | preponderance of the evidence, both of the | ||||||
18 | following: | ||||||
19 | (a) the person, during the same taxable | ||||||
20 | year, paid, accrued, or incurred, the interest | ||||||
21 | to a person that is not a related member, and | ||||||
22 | (b) the transaction giving rise to the | ||||||
23 | interest expense between the taxpayer and the | ||||||
24 | person did not have as a principal purpose the | ||||||
25 | avoidance of Illinois income tax, and is paid | ||||||
26 | pursuant to a contract or agreement that |
| |||||||
| |||||||
1 | reflects an arm's-length interest rate and | ||||||
2 | terms; or
| ||||||
3 | (iii) the taxpayer can establish, based on | ||||||
4 | clear and convincing evidence, that the interest | ||||||
5 | paid, accrued, or incurred relates to a contract or | ||||||
6 | agreement entered into at arm's-length rates and | ||||||
7 | terms and the principal purpose for the payment is | ||||||
8 | not federal or Illinois tax avoidance; or
| ||||||
9 | (iv) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person if | ||||||
11 | the taxpayer establishes by clear and convincing | ||||||
12 | evidence that the adjustments are unreasonable; or | ||||||
13 | if the taxpayer and the Director agree in writing | ||||||
14 | to the application or use of an alternative method | ||||||
15 | of apportionment under Section 304(f).
| ||||||
16 | Nothing in this subsection shall preclude the | ||||||
17 | Director from making any other adjustment | ||||||
18 | otherwise allowed under Section 404 of this Act for | ||||||
19 | any tax year beginning after the effective date of | ||||||
20 | this amendment provided such adjustment is made | ||||||
21 | pursuant to regulation adopted by the Department | ||||||
22 | and such regulations provide methods and standards | ||||||
23 | by which the Department will utilize its authority | ||||||
24 | under Section 404 of this Act; and
| ||||||
25 | (D-8) An amount equal to the amount of intangible | ||||||
26 | expenses and costs otherwise allowed as a deduction in |
| |||||||
| |||||||
1 | computing base income, and that were paid, accrued, or | ||||||
2 | incurred, directly or indirectly, (i) for taxable | ||||||
3 | years ending on or after December 31, 2004, to a | ||||||
4 | foreign person who would be a member of the same | ||||||
5 | unitary business group but for the fact that the | ||||||
6 | foreign person's business activity outside the United | ||||||
7 | States is 80% or more of that person's total business | ||||||
8 | activity and (ii) for taxable years ending on or after | ||||||
9 | December 31, 2008, to a person who would be a member of | ||||||
10 | the same unitary business group but for the fact that | ||||||
11 | the person is prohibited under Section 1501(a)(27) | ||||||
12 | from being included in the unitary business group | ||||||
13 | because he or she is ordinarily required to apportion | ||||||
14 | business income under different subsections of Section | ||||||
15 | 304. The addition modification required by this | ||||||
16 | subparagraph shall be reduced to the extent that | ||||||
17 | dividends were included in base income of the unitary | ||||||
18 | group for the same taxable year and received by the | ||||||
19 | taxpayer or by a member of the taxpayer's unitary | ||||||
20 | business group (including amounts included in gross | ||||||
21 | income pursuant to Sections 951 through 964 of the | ||||||
22 | Internal Revenue Code and amounts included in gross | ||||||
23 | income under Section 78 of the Internal Revenue Code) | ||||||
24 | with respect to the stock of the same person to whom | ||||||
25 | the intangible expenses and costs were directly or | ||||||
26 | indirectly paid, incurred or accrued. The preceding |
| |||||||
| |||||||
1 | sentence shall not apply to the extent that the same | ||||||
2 | dividends caused a reduction to the addition | ||||||
3 | modification required under Section 203(d)(2)(D-7) of | ||||||
4 | this Act. As used in this subparagraph, the term | ||||||
5 | "intangible expenses and costs" includes (1) expenses, | ||||||
6 | losses, and costs for, or related to, the direct or | ||||||
7 | indirect acquisition, use, maintenance or management, | ||||||
8 | ownership, sale, exchange, or any other disposition of | ||||||
9 | intangible property; (2) losses incurred, directly or | ||||||
10 | indirectly, from factoring transactions or discounting | ||||||
11 | transactions; (3) royalty, patent, technical, and | ||||||
12 | copyright fees; (4) licensing fees; and (5) other | ||||||
13 | similar expenses and costs. For purposes of this | ||||||
14 | subparagraph, "intangible property" includes patents, | ||||||
15 | patent applications, trade names, trademarks, service | ||||||
16 | marks, copyrights, mask works, trade secrets, and | ||||||
17 | similar types of intangible assets; | ||||||
18 | This paragraph shall not apply to the following: | ||||||
19 | (i) any item of intangible expenses or costs | ||||||
20 | paid, accrued, or incurred, directly or | ||||||
21 | indirectly, from a transaction with a person who is | ||||||
22 | subject in a foreign country or state, other than a | ||||||
23 | state which requires mandatory unitary reporting, | ||||||
24 | to a tax on or measured by net income with respect | ||||||
25 | to such item; or | ||||||
26 | (ii) any item of intangible expense or cost |
| |||||||
| |||||||
1 | paid, accrued, or incurred, directly or | ||||||
2 | indirectly, if the taxpayer can establish, based | ||||||
3 | on a preponderance of the evidence, both of the | ||||||
4 | following: | ||||||
5 | (a) the person during the same taxable | ||||||
6 | year paid, accrued, or incurred, the | ||||||
7 | intangible expense or cost to a person that is | ||||||
8 | not a related member, and | ||||||
9 | (b) the transaction giving rise to the | ||||||
10 | intangible expense or cost between the | ||||||
11 | taxpayer and the person did not have as a | ||||||
12 | principal purpose the avoidance of Illinois | ||||||
13 | income tax, and is paid pursuant to a contract | ||||||
14 | or agreement that reflects arm's-length terms; | ||||||
15 | or | ||||||
16 | (iii) any item of intangible expense or cost | ||||||
17 | paid, accrued, or incurred, directly or | ||||||
18 | indirectly, from a transaction with a person if the | ||||||
19 | taxpayer establishes by clear and convincing | ||||||
20 | evidence, that the adjustments are unreasonable; | ||||||
21 | or if the taxpayer and the Director agree in | ||||||
22 | writing to the application or use of an alternative | ||||||
23 | method of apportionment under Section 304(f);
| ||||||
24 | Nothing in this subsection shall preclude the | ||||||
25 | Director from making any other adjustment | ||||||
26 | otherwise allowed under Section 404 of this Act for |
| |||||||
| |||||||
1 | any tax year beginning after the effective date of | ||||||
2 | this amendment provided such adjustment is made | ||||||
3 | pursuant to regulation adopted by the Department | ||||||
4 | and such regulations provide methods and standards | ||||||
5 | by which the Department will utilize its authority | ||||||
6 | under Section 404 of this Act;
| ||||||
7 | (D-9) For taxable years ending on or after December | ||||||
8 | 31, 2008, an amount equal to the amount of insurance | ||||||
9 | premium expenses and costs otherwise allowed as a | ||||||
10 | deduction in computing base income, and that were paid, | ||||||
11 | accrued, or incurred, directly or indirectly, to a | ||||||
12 | person who would be a member of the same unitary | ||||||
13 | business group but for the fact that the person is | ||||||
14 | prohibited under Section 1501(a)(27) from being | ||||||
15 | included in the unitary business group because he or | ||||||
16 | she is ordinarily required to apportion business | ||||||
17 | income under different subsections of Section 304. The | ||||||
18 | addition modification required by this subparagraph | ||||||
19 | shall be reduced to the extent that dividends were | ||||||
20 | included in base income of the unitary group for the | ||||||
21 | same taxable year and received by the taxpayer or by a | ||||||
22 | member of the taxpayer's unitary business group | ||||||
23 | (including amounts included in gross income under | ||||||
24 | Sections 951 through 964 of the Internal Revenue Code | ||||||
25 | and amounts included in gross income under Section 78 | ||||||
26 | of the Internal Revenue Code) with respect to the stock |
| |||||||
| |||||||
1 | of the same person to whom the premiums and costs were | ||||||
2 | directly or indirectly paid, incurred, or accrued. The | ||||||
3 | preceding sentence does not apply to the extent that | ||||||
4 | the same dividends caused a reduction to the addition | ||||||
5 | modification required under Section 203(d)(2)(D-7) or | ||||||
6 | Section 203(d)(2)(D-8) of this Act.
| ||||||
7 | and by deducting from the total so obtained the following | ||||||
8 | amounts:
| ||||||
9 | (E) The valuation limitation amount;
| ||||||
10 | (F) An amount equal to the amount of any tax | ||||||
11 | imposed by this Act which
was refunded to the taxpayer | ||||||
12 | and included in such total for the taxable year;
| ||||||
13 | (G) An amount equal to all amounts included in | ||||||
14 | taxable income as
modified by subparagraphs (A), (B), | ||||||
15 | (C) and (D) which are exempt from
taxation by this | ||||||
16 | State either by reason of its statutes or Constitution | ||||||
17 | or
by reason of
the Constitution, treaties or statutes | ||||||
18 | of the United States;
provided that, in the case of any | ||||||
19 | statute of this State that exempts income
derived from | ||||||
20 | bonds or other obligations from the tax imposed under | ||||||
21 | this Act,
the amount exempted shall be the interest net | ||||||
22 | of bond premium amortization;
| ||||||
23 | (H) Any income of the partnership which | ||||||
24 | constitutes personal service
income as defined in | ||||||
25 | Section 1348 (b) (1) of the Internal Revenue Code (as
| ||||||
26 | in effect December 31, 1981) or a reasonable allowance |
| |||||||
| |||||||
1 | for compensation
paid or accrued for services rendered | ||||||
2 | by partners to the partnership,
whichever is greater;
| ||||||
3 | (I) An amount equal to all amounts of income | ||||||
4 | distributable to an entity
subject to the Personal | ||||||
5 | Property Tax Replacement Income Tax imposed by
| ||||||
6 | subsections (c) and (d) of Section 201 of this Act | ||||||
7 | including amounts
distributable to organizations | ||||||
8 | exempt from federal income tax by reason of
Section | ||||||
9 | 501(a) of the Internal Revenue Code;
| ||||||
10 | (J) With the exception of any amounts subtracted | ||||||
11 | under subparagraph
(G),
an amount equal to the sum of | ||||||
12 | all amounts disallowed as deductions
by (i) Sections | ||||||
13 | 171(a) (2), and 265(2) of the Internal Revenue Code of | ||||||
14 | 1954,
as now or hereafter amended , and all amounts of | ||||||
15 | expenses allocable to
interest and disallowed as | ||||||
16 | deductions by Section 265(1) of the Internal
Revenue | ||||||
17 | Code , as now or hereafter amended ;
and (ii) for taxable | ||||||
18 | years
ending on or after August 13, 1999, Sections
| ||||||
19 | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||||||
20 | Internal Revenue Code ; and (iii) for taxable years | ||||||
21 | ending on or after December 31, 2008, Section 45G(e)(3) | ||||||
22 | of the Internal Revenue Code ; the provisions of this
| ||||||
23 | subparagraph are exempt from the provisions of Section | ||||||
24 | 250;
| ||||||
25 | (K) An amount equal to those dividends included in | ||||||
26 | such total which were
paid by a corporation which |
| |||||||
| |||||||
1 | conducts business operations in an Enterprise
Zone or | ||||||
2 | zones created under the Illinois Enterprise Zone Act, | ||||||
3 | enacted by
the 82nd General Assembly, or a River Edge | ||||||
4 | Redevelopment Zone or zones created under the River | ||||||
5 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
6 | all of its operations
in an Enterprise Zone or Zones or | ||||||
7 | from a River Edge Redevelopment Zone or zones. This | ||||||
8 | subparagraph (K) is exempt from the provisions of | ||||||
9 | Section 250;
| ||||||
10 | (L) An amount equal to any contribution made to a | ||||||
11 | job training project
established pursuant to the Real | ||||||
12 | Property Tax Increment Allocation
Redevelopment Act;
| ||||||
13 | (M) An amount equal to those dividends included in | ||||||
14 | such total
that were paid by a corporation that | ||||||
15 | conducts business operations in a
federally designated | ||||||
16 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
17 | High Impact Business located in Illinois; provided | ||||||
18 | that dividends eligible
for the deduction provided in | ||||||
19 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
20 | shall not be eligible for the deduction provided under | ||||||
21 | this
subparagraph (M);
| ||||||
22 | (N) An amount equal to the amount of the deduction | ||||||
23 | used to compute the
federal income tax credit for | ||||||
24 | restoration of substantial amounts held under
claim of | ||||||
25 | right for the taxable year pursuant to Section 1341 of | ||||||
26 | the
Internal Revenue Code of 1986 ;
|
| |||||||
| |||||||
1 | (O) For taxable years 2001 and thereafter, for the | ||||||
2 | taxable year in
which the bonus depreciation deduction
| ||||||
3 | is taken on the taxpayer's federal income tax return | ||||||
4 | under
subsection (k) of Section 168 of the Internal | ||||||
5 | Revenue Code and for each
applicable taxable year | ||||||
6 | thereafter, an amount equal to "x", where:
| ||||||
7 | (1) "y" equals the amount of the depreciation | ||||||
8 | deduction taken for the
taxable year
on the | ||||||
9 | taxpayer's federal income tax return on property | ||||||
10 | for which the bonus
depreciation deduction
was | ||||||
11 | taken in any year under subsection (k) of Section | ||||||
12 | 168 of the Internal
Revenue Code, but not including | ||||||
13 | the bonus depreciation deduction;
| ||||||
14 | (2) for taxable years ending on or before | ||||||
15 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
16 | and then divided by 70 (or "y"
multiplied by | ||||||
17 | 0.429); and | ||||||
18 | (3) for taxable years ending after December | ||||||
19 | 31, 2005: | ||||||
20 | (i) for property on which a bonus | ||||||
21 | depreciation deduction of 30% of the adjusted | ||||||
22 | basis was taken, "x" equals "y" multiplied by | ||||||
23 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
24 | 0.429); and | ||||||
25 | (ii) for property on which a bonus | ||||||
26 | depreciation deduction of 50% of the adjusted |
| |||||||
| |||||||
1 | basis was taken, "x" equals "y" multiplied by | ||||||
2 | 1.0.
| ||||||
3 | The aggregate amount deducted under this | ||||||
4 | subparagraph in all taxable
years for any one piece of | ||||||
5 | property may not exceed the amount of the bonus
| ||||||
6 | depreciation deduction
taken on that property on the | ||||||
7 | taxpayer's federal income tax return under
subsection | ||||||
8 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
9 | subparagraph (O) is exempt from the provisions of | ||||||
10 | Section 250;
| ||||||
11 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
12 | otherwise disposes of
property for which the taxpayer | ||||||
13 | was required in any taxable year to make an
addition | ||||||
14 | modification under subparagraph (D-5), then an amount | ||||||
15 | equal to that
addition modification.
| ||||||
16 | If the taxpayer continues to own property through | ||||||
17 | the last day of the last tax year for which the | ||||||
18 | taxpayer may claim a depreciation deduction for | ||||||
19 | federal income tax purposes and for which the taxpayer | ||||||
20 | was required in any taxable year to make an addition | ||||||
21 | modification under subparagraph (D-5), then an amount | ||||||
22 | equal to that addition modification.
| ||||||
23 | The taxpayer is allowed to take the deduction under | ||||||
24 | this subparagraph
only once with respect to any one | ||||||
25 | piece of property. | ||||||
26 | This subparagraph (P) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250;
| ||||||
2 | (Q) The amount of (i) any interest income (net of | ||||||
3 | the deductions allocable thereto) taken into account | ||||||
4 | for the taxable year with respect to a transaction with | ||||||
5 | a taxpayer that is required to make an addition | ||||||
6 | modification with respect to such transaction under | ||||||
7 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
8 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
9 | the amount of such addition modification and
(ii) any | ||||||
10 | income from intangible property (net of the deductions | ||||||
11 | allocable thereto) taken into account for the taxable | ||||||
12 | year with respect to a transaction with a taxpayer that | ||||||
13 | is required to make an addition modification with | ||||||
14 | respect to such transaction under Section | ||||||
15 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
16 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
17 | addition modification. This subparagraph (Q) is exempt | ||||||
18 | from Section 250;
| ||||||
19 | (R) An amount equal to the interest income taken | ||||||
20 | into account for the taxable year (net of the | ||||||
21 | deductions allocable thereto) with respect to | ||||||
22 | transactions with (i) a foreign person who would be a | ||||||
23 | member of the taxpayer's unitary business group but for | ||||||
24 | the fact that the foreign person's business activity | ||||||
25 | outside the United States is 80% or more of that | ||||||
26 | person's total business activity and (ii) for taxable |
| |||||||
| |||||||
1 | years ending on or after December 31, 2008, to a person | ||||||
2 | who would be a member of the same unitary business | ||||||
3 | group but for the fact that the person is prohibited | ||||||
4 | under Section 1501(a)(27) from being included in the | ||||||
5 | unitary business group because he or she is ordinarily | ||||||
6 | required to apportion business income under different | ||||||
7 | subsections of Section 304, but not to exceed the | ||||||
8 | addition modification required to be made for the same | ||||||
9 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
10 | paid, accrued, or incurred, directly or indirectly, to | ||||||
11 | the same person. This subparagraph (R) is exempt from | ||||||
12 | Section 250; and | ||||||
13 | (S) An amount equal to the income from intangible | ||||||
14 | property taken into account for the taxable year (net | ||||||
15 | of the deductions allocable thereto) with respect to | ||||||
16 | transactions with (i) a foreign person who would be a | ||||||
17 | member of the taxpayer's unitary business group but for | ||||||
18 | the fact that the foreign person's business activity | ||||||
19 | outside the United States is 80% or more of that | ||||||
20 | person's total business activity and (ii) for taxable | ||||||
21 | years ending on or after December 31, 2008, to a person | ||||||
22 | who would be a member of the same unitary business | ||||||
23 | group but for the fact that the person is prohibited | ||||||
24 | under Section 1501(a)(27) from being included in the | ||||||
25 | unitary business group because he or she is ordinarily | ||||||
26 | required to apportion business income under different |
| |||||||
| |||||||
1 | subsections of Section 304, but not to exceed the | ||||||
2 | addition modification required to be made for the same | ||||||
3 | taxable year under Section 203(d)(2)(D-8) for | ||||||
4 | intangible expenses and costs paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to the same person. | ||||||
6 | This subparagraph (S) is exempt from Section 250 ; and | ||||||
7 | (T) For taxable years ending on or after December | ||||||
8 | 31, 2008, in the case of a taxpayer who was required to | ||||||
9 | add back any insurance premiums under Section | ||||||
10 | 203(d)(2)(D-9), an amount equal to the amount of any | ||||||
11 | reimbursement received from the insurance company for | ||||||
12 | any loss covered by a policy for which those premiums | ||||||
13 | were paid, to the extent of the federal income tax | ||||||
14 | deduction that would have been allowable for the loss | ||||||
15 | if not for the reimbursement. This subparagraph (T) is | ||||||
16 | exempt from the provisions of Section 250 .
| ||||||
17 | (e) Gross income; adjusted gross income; taxable income.
| ||||||
18 | (1) In general. Subject to the provisions of paragraph | ||||||
19 | (2) and
subsection (b) (3), for purposes of this Section | ||||||
20 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
21 | gross income, or taxable income for
the taxable year shall | ||||||
22 | mean the amount of gross income, adjusted gross
income or | ||||||
23 | taxable income properly reportable for federal income tax
| ||||||
24 | purposes for the taxable year under the provisions of the | ||||||
25 | Internal
Revenue Code. Taxable income may be less than |
| |||||||
| |||||||
1 | zero. However, for taxable
years ending on or after | ||||||
2 | December 31, 1986, net operating loss
carryforwards from | ||||||
3 | taxable years ending prior to December 31, 1986, may not
| ||||||
4 | exceed the sum of federal taxable income for the taxable | ||||||
5 | year before net
operating loss deduction, plus the excess | ||||||
6 | of addition modifications over
subtraction modifications | ||||||
7 | for the taxable year. For taxable years ending
prior to | ||||||
8 | December 31, 1986, taxable income may never be an amount in | ||||||
9 | excess
of the net operating loss for the taxable year as | ||||||
10 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
11 | Internal Revenue Code, provided that when
taxable income of | ||||||
12 | a corporation (other than a Subchapter S corporation),
| ||||||
13 | trust, or estate is less than zero and addition | ||||||
14 | modifications, other than
those provided by subparagraph | ||||||
15 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
16 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
17 | trusts and estates, exceed subtraction modifications, an | ||||||
18 | addition
modification must be made under those | ||||||
19 | subparagraphs for any other taxable
year to which the | ||||||
20 | taxable income less than zero (net operating loss) is
| ||||||
21 | applied under Section 172 of the Internal Revenue Code or | ||||||
22 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
23 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
24 | Revenue Code.
| ||||||
25 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
26 | subsection,
the taxable income properly reportable for |
| |||||||
| |||||||
1 | federal income tax purposes
shall mean:
| ||||||
2 | (A) Certain life insurance companies. In the case | ||||||
3 | of a life
insurance company subject to the tax imposed | ||||||
4 | by Section 801 of the
Internal Revenue Code, life | ||||||
5 | insurance company taxable income, plus the
amount of | ||||||
6 | distribution from pre-1984 policyholder surplus | ||||||
7 | accounts as
calculated under Section 815a of the | ||||||
8 | Internal Revenue Code;
| ||||||
9 | (B) Certain other insurance companies. In the case | ||||||
10 | of mutual
insurance companies subject to the tax | ||||||
11 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
12 | insurance company taxable income;
| ||||||
13 | (C) Regulated investment companies. In the case of | ||||||
14 | a regulated
investment company subject to the tax | ||||||
15 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
16 | investment company taxable income;
| ||||||
17 | (D) Real estate investment trusts. In the case of a | ||||||
18 | real estate
investment trust subject to the tax imposed | ||||||
19 | by Section 857 of the
Internal Revenue Code, real | ||||||
20 | estate investment trust taxable income;
| ||||||
21 | (E) Consolidated corporations. In the case of a | ||||||
22 | corporation which
is a member of an affiliated group of | ||||||
23 | corporations filing a consolidated
income tax return | ||||||
24 | for the taxable year for federal income tax purposes,
| ||||||
25 | taxable income determined as if such corporation had | ||||||
26 | filed a separate
return for federal income tax purposes |
| |||||||
| |||||||
1 | for the taxable year and each
preceding taxable year | ||||||
2 | for which it was a member of an affiliated group.
For | ||||||
3 | purposes of this subparagraph, the taxpayer's separate | ||||||
4 | taxable
income shall be determined as if the election | ||||||
5 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
6 | Code had been in effect for all such years;
| ||||||
7 | (F) Cooperatives. In the case of a cooperative | ||||||
8 | corporation or
association, the taxable income of such | ||||||
9 | organization determined in
accordance with the | ||||||
10 | provisions of Section 1381 through 1388 of the
Internal | ||||||
11 | Revenue Code;
| ||||||
12 | (G) Subchapter S corporations. In the case of: (i) | ||||||
13 | a Subchapter S
corporation for which there is in effect | ||||||
14 | an election for the taxable year
under Section 1362 of | ||||||
15 | the Internal Revenue Code, the taxable income of such
| ||||||
16 | corporation determined in accordance with Section | ||||||
17 | 1363(b) of the Internal
Revenue Code, except that | ||||||
18 | taxable income shall take into
account those items | ||||||
19 | which are required by Section 1363(b)(1) of the
| ||||||
20 | Internal Revenue Code to be separately stated; and (ii) | ||||||
21 | a Subchapter
S corporation for which there is in effect | ||||||
22 | a federal election to opt out of
the provisions of the | ||||||
23 | Subchapter S Revision Act of 1982 and have applied
| ||||||
24 | instead the prior federal Subchapter S rules as in | ||||||
25 | effect on July 1, 1982,
the taxable income of such | ||||||
26 | corporation determined in accordance with the
federal |
| |||||||
| |||||||
1 | Subchapter S rules as in effect on July 1, 1982; and
| ||||||
2 | (H) Partnerships. In the case of a partnership, | ||||||
3 | taxable income
determined in accordance with Section | ||||||
4 | 703 of the Internal Revenue Code,
except that taxable | ||||||
5 | income shall take into account those items which are
| ||||||
6 | required by Section 703(a)(1) to be separately stated | ||||||
7 | but which would be
taken into account by an individual | ||||||
8 | in calculating his taxable income.
| ||||||
9 | (3) Recapture of business expenses on disposition of | ||||||
10 | asset or business. Notwithstanding any other law to the | ||||||
11 | contrary, if in prior years income from an asset or | ||||||
12 | business has been classified as business income and in a | ||||||
13 | later year is demonstrated to be non-business income, then | ||||||
14 | all expenses, without limitation, deducted in such later | ||||||
15 | year and in the 2 immediately preceding taxable years | ||||||
16 | related to that asset or business that generated the | ||||||
17 | non-business income shall be added back and recaptured as | ||||||
18 | business income in the year of the disposition of the asset | ||||||
19 | or business. Such amount shall be apportioned to Illinois | ||||||
20 | using the greater of the apportionment fraction computed | ||||||
21 | for the business under Section 304 of this Act for the | ||||||
22 | taxable year or the average of the apportionment fractions | ||||||
23 | computed for the business under Section 304 of this Act for | ||||||
24 | the taxable year and for the 2 immediately preceding | ||||||
25 | taxable years.
| ||||||
26 | (f) Valuation limitation amount.
|
| |||||||
| |||||||
1 | (1) In general. The valuation limitation amount | ||||||
2 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
3 | (d)(2) (E) is an amount equal to:
| ||||||
4 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
5 | amounts (to the
extent consisting of gain reportable | ||||||
6 | under the provisions of Section
1245 or 1250 of the | ||||||
7 | Internal Revenue Code) for all property in respect
of | ||||||
8 | which such gain was reported for the taxable year; plus
| ||||||
9 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
10 | 1969 appreciation
amounts (to the extent consisting of | ||||||
11 | capital gain) for all property in
respect of which such | ||||||
12 | gain was reported for federal income tax purposes
for | ||||||
13 | the taxable year, or (ii) the net capital gain for the | ||||||
14 | taxable year,
reduced in either case by any amount of | ||||||
15 | such gain included in the amount
determined under | ||||||
16 | subsection (a) (2) (F) or (c) (2) (H).
| ||||||
17 | (2) Pre-August 1, 1969 appreciation amount.
| ||||||
18 | (A) If the fair market value of property referred | ||||||
19 | to in paragraph
(1) was readily ascertainable on August | ||||||
20 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
21 | such property is the lesser of (i) the excess of
such | ||||||
22 | fair market value over the taxpayer's basis (for | ||||||
23 | determining gain)
for such property on that date | ||||||
24 | (determined under the Internal Revenue
Code as in | ||||||
25 | effect on that date), or (ii) the total gain realized | ||||||
26 | and
reportable for federal income tax purposes in |
| |||||||
| |||||||
1 | respect of the sale,
exchange or other disposition of | ||||||
2 | such property.
| ||||||
3 | (B) If the fair market value of property referred | ||||||
4 | to in paragraph
(1) was not readily ascertainable on | ||||||
5 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
6 | amount for such property is that amount which bears
the | ||||||
7 | same ratio to the total gain reported in respect of the | ||||||
8 | property for
federal income tax purposes for the | ||||||
9 | taxable year, as the number of full
calendar months in | ||||||
10 | that part of the taxpayer's holding period for the
| ||||||
11 | property ending July 31, 1969 bears to the number of | ||||||
12 | full calendar
months in the taxpayer's entire holding | ||||||
13 | period for the
property.
| ||||||
14 | (C) The Department shall prescribe such | ||||||
15 | regulations as may be
necessary to carry out the | ||||||
16 | purposes of this paragraph.
| ||||||
17 | (g) Double deductions. Unless specifically provided | ||||||
18 | otherwise, nothing
in this Section shall permit the same item | ||||||
19 | to be deducted more than once.
| ||||||
20 | (h) Legislative intention. Except as expressly provided by | ||||||
21 | this
Section there shall be no modifications or limitations on | ||||||
22 | the amounts
of income, gain, loss or deduction taken into | ||||||
23 | account in determining
gross income, adjusted gross income or | ||||||
24 | taxable income for federal income
tax purposes for the taxable |
| |||||||
| |||||||
1 | year, or in the amount of such items
entering into the | ||||||
2 | computation of base income and net income under this
Act for | ||||||
3 | such taxable year, whether in respect of property values as of
| ||||||
4 | August 1, 1969 or otherwise.
| ||||||
5 | (Source: P.A. 94-776, eff. 5-19-06; 94-789, eff. 5-19-06; | ||||||
6 | 94-1021, eff. 7-12-06; 94-1074, eff. 12-26-06; 95-23, eff. | ||||||
7 | 8-3-07; 95-233, eff. 8-16-07; 95-286, eff. 8-20-07; 95-331, | ||||||
8 | eff. 8-21-07; 95-707, eff. 1-11-08.)
| ||||||
9 | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
| ||||||
10 | Sec. 204. Standard Exemption.
| ||||||
11 | (a) Allowance of exemption. In computing net income under | ||||||
12 | this Act, there
shall be allowed as an exemption the sum of the | ||||||
13 | amounts determined under
subsections (b), (c) and (d), | ||||||
14 | multiplied by a fraction the numerator of which
is the amount | ||||||
15 | of the taxpayer's base income allocable to this State for the
| ||||||
16 | taxable year and the denominator of which is the taxpayer's | ||||||
17 | total base income
for the taxable year.
| ||||||
18 | (b) Basic amount. For the purpose of subsection (a) of this | ||||||
19 | Section,
except as provided by subsection (a) of Section 205 | ||||||
20 | and in this
subsection, each taxpayer shall be allowed a basic | ||||||
21 | amount of $1000, except
that for corporations the basic amount | ||||||
22 | shall be zero for tax years ending on
or
after December 31, | ||||||
23 | 2003, and for individuals the basic amount shall be:
| ||||||
24 | (1) for taxable years ending on or after December 31, | ||||||
25 | 1998 and prior to
December 31, 1999, $1,300;
|
| |||||||
| |||||||
1 | (2) for taxable years ending on or after December 31, | ||||||
2 | 1999 and prior to
December 31, 2000, $1,650;
| ||||||
3 | (3) for taxable years ending on or after December 31, | ||||||
4 | 2000, $2,000.
| ||||||
5 | For taxable years ending on or after December 31, 1992, a | ||||||
6 | taxpayer whose
Illinois base income exceeds the basic amount | ||||||
7 | and who is claimed as a dependent
on another person's tax | ||||||
8 | return under the Internal Revenue Code of 1986 shall
not be | ||||||
9 | allowed any basic amount under this subsection.
| ||||||
10 | (c) Additional amount for individuals. In the case of an | ||||||
11 | individual
taxpayer, there shall be allowed for the purpose of | ||||||
12 | subsection (a), in
addition to the basic amount provided by | ||||||
13 | subsection (b), an additional
exemption equal to the basic | ||||||
14 | amount for each
exemption in excess of one
allowable to such | ||||||
15 | individual taxpayer for the taxable year under Section
151 of | ||||||
16 | the Internal Revenue Code.
| ||||||
17 | (d) Additional exemptions for an individual taxpayer and | ||||||
18 | his or her
spouse. In the case of an individual taxpayer and | ||||||
19 | his or her spouse, he or
she shall each be allowed additional | ||||||
20 | exemptions as follows:
| ||||||
21 | (1) Additional exemption for taxpayer or spouse 65 | ||||||
22 | years of age or older.
| ||||||
23 | (A) For taxpayer. An additional exemption of | ||||||
24 | $1,000 for the taxpayer if
he or she has attained the | ||||||
25 | age of 65 before the end of the taxable year.
| ||||||
26 | (B) For spouse when a joint return is not filed. An |
| |||||||
| |||||||
1 | additional
exemption of $1,000 for the spouse of the | ||||||
2 | taxpayer if a joint return is not
made by the taxpayer | ||||||
3 | and his spouse, and if the spouse has attained the age
| ||||||
4 | of 65 before the end of such taxable year, and, for the | ||||||
5 | calendar year in
which the taxable year of the taxpayer | ||||||
6 | begins, has no gross income and is
not the dependent of | ||||||
7 | another taxpayer.
| ||||||
8 | (2) Additional exemption for blindness of taxpayer or | ||||||
9 | spouse.
| ||||||
10 | (A) For taxpayer. An additional exemption of | ||||||
11 | $1,000 for the taxpayer if
he or she is blind at the | ||||||
12 | end of the taxable year.
| ||||||
13 | (B) For spouse when a joint return is not filed. An | ||||||
14 | additional
exemption of $1,000 for the spouse of the | ||||||
15 | taxpayer if a separate return is made
by the taxpayer, | ||||||
16 | and if the spouse is blind and, for the calendar year | ||||||
17 | in which
the taxable year of the taxpayer begins, has | ||||||
18 | no gross income and is not the
dependent of another | ||||||
19 | taxpayer. For purposes of this paragraph, the
| ||||||
20 | determination of whether the spouse is blind shall be | ||||||
21 | made as of the end of the
taxable year of the taxpayer; | ||||||
22 | except that if the spouse dies during such
taxable year | ||||||
23 | such determination shall be made as of the time of such | ||||||
24 | death.
| ||||||
25 | (C) Blindness defined. For purposes of this | ||||||
26 | subsection, an individual
is blind only if his or her |
| |||||||
| |||||||
1 | central visual acuity does not exceed 20/200 in
the | ||||||
2 | better eye with correcting lenses, or if his or her | ||||||
3 | visual acuity is
greater than 20/200 but is accompanied | ||||||
4 | by a limitation in the fields of
vision such that the | ||||||
5 | widest diameter of the visual fields subtends an angle
| ||||||
6 | no greater than 20 degrees.
| ||||||
7 | (e) Cross reference. See Article 3 for the manner of | ||||||
8 | determining
base income allocable to this State.
| ||||||
9 | (f) Application of Section 250. Section 250 does not apply | ||||||
10 | to the
amendments to this Section made by Public Act 90-613.
| ||||||
11 | (Source: P.A. 93-29, eff. 6-20-03.)
| ||||||
12 | (35 ILCS 5/205) (from Ch. 120, par. 2-205)
| ||||||
13 | Sec. 205. Exempt organizations.
| ||||||
14 | (a) Charitable, etc. organizations. The base income of an
| ||||||
15 | organization which is exempt from the federal income tax by | ||||||
16 | reason of
Section 501(a) of the Internal Revenue Code shall not | ||||||
17 | be determined
under section 203 of this Act, but shall be its | ||||||
18 | unrelated business
taxable income as determined under section | ||||||
19 | 512 of the Internal Revenue
Code, without any deduction for the | ||||||
20 | tax imposed by this Act. The
standard exemption provided by | ||||||
21 | section 204 of this Act shall not be
allowed in determining the | ||||||
22 | net income of an organization to which this
subsection applies.
| ||||||
23 | (b) Partnerships. A partnership as such shall not be | ||||||
24 | subject to
the tax imposed by subsection 201 (a) and (b) of | ||||||
25 | this Act, but shall be
subject to the replacement tax imposed |
| |||||||
| |||||||
1 | by subsection 201 (c) and (d) of
this Act and shall compute its | ||||||
2 | base income as described in subsection (d)
of Section 203 of | ||||||
3 | this Act. For taxable years ending on or after December 31, | ||||||
4 | 2004, an investment partnership, as defined in Section | ||||||
5 | 1501(a)(11.5) of this Act, shall not be subject to the tax | ||||||
6 | imposed by subsections (c) and (d) of Section 201 of this Act.
| ||||||
7 | A partnership shall file such returns and other
information at | ||||||
8 | such
time and in such manner as may be required under Article 5 | ||||||
9 | of this Act.
The partners in a partnership shall be liable for | ||||||
10 | the replacement tax imposed
by subsection 201 (c) and (d) of | ||||||
11 | this Act on such partnership, to the extent
such tax is not | ||||||
12 | paid by the partnership, as provided under the laws of Illinois
| ||||||
13 | governing the liability of partners for the obligations of a | ||||||
14 | partnership.
Persons carrying on business as partners shall be | ||||||
15 | liable for the tax
imposed by subsection 201 (a) and (b) of | ||||||
16 | this Act only in their separate
or individual capacities.
| ||||||
17 | (c) Subchapter S corporations. A Subchapter S corporation | ||||||
18 | shall not
be subject to the tax imposed by subsection 201 (a) | ||||||
19 | and
(b) of this Act but shall be subject to the replacement tax | ||||||
20 | imposed by subsection
201 (c) and (d) of this Act and shall | ||||||
21 | file such returns
and other information
at such time and in | ||||||
22 | such manner as may be required under Article 5 of this Act.
| ||||||
23 | (d) Combat zone , terrorist attack, and certain other deaths | ||||||
24 | death . An individual relieved from the federal
income tax for | ||||||
25 | any taxable year by reason of section 692 of the Internal
| ||||||
26 | Revenue Code shall not be subject to the tax imposed by this |
| |||||||
| |||||||
1 | Act for
such taxable year.
| ||||||
2 | (e) Certain trusts. A common trust fund described in | ||||||
3 | Section 584
of the Internal Revenue Code, and any other trust | ||||||
4 | to the extent that the
grantor is treated as the owner thereof | ||||||
5 | under sections 671 through 678
of the Internal Revenue Code | ||||||
6 | shall not be subject to the tax imposed by
this Act.
| ||||||
7 | (f) Certain business activities. A person not otherwise | ||||||
8 | subject to the tax
imposed by this Act shall not become subject | ||||||
9 | to the tax imposed by this Act by
reason of:
| ||||||
10 | (1) that person's ownership of tangible personal | ||||||
11 | property located at the
premises of
a printer in this State | ||||||
12 | with which the person has contracted for printing, or
| ||||||
13 | (2) activities of the person's employees or agents | ||||||
14 | located solely at the
premises of a printer and related to | ||||||
15 | quality control, distribution, or printing
services | ||||||
16 | performed by a printer in the State with which the person | ||||||
17 | has
contracted for printing.
| ||||||
18 | (g) A nonprofit risk organization that holds a certificate | ||||||
19 | of authority under Article VIID of the Illinois Insurance Code | ||||||
20 | is exempt from the tax imposed under this Act with respect to | ||||||
21 | its activities or operations in furtherance of the powers | ||||||
22 | conferred upon it under that Article VIID of the Illinois | ||||||
23 | Insurance Code.
| ||||||
24 | (Source: P.A. 95-233, eff. 8-16-07; 95-331, eff. 8-21-07.)
| ||||||
25 | (35 ILCS 5/214)
|
| |||||||
| |||||||
1 | Sec. 214. Tax credit for affordable housing donations.
| ||||||
2 | (a) Beginning with taxable years ending on or after | ||||||
3 | December 31, 2001 and
until the taxable year ending on December | ||||||
4 | 31, 2011, a taxpayer who makes a
donation under Section 7.28 of | ||||||
5 | the Illinois Housing Development Act is entitled to a credit
| ||||||
6 | against the tax imposed by subsections (a) and (b) of Section | ||||||
7 | 201 in an amount
equal
to 50% of the value of the donation. | ||||||
8 | Partners, shareholders of subchapter S
corporations, and | ||||||
9 | owners of limited liability companies (if the limited
liability | ||||||
10 | company is treated as a partnership for purposes of federal and | ||||||
11 | State
income
taxation) are entitled to a credit under this | ||||||
12 | Section to be determined in
accordance with the determination | ||||||
13 | of income and distributive share of income
under Sections 702 | ||||||
14 | and 703 and subchapter S of the Internal Revenue Code.
Persons | ||||||
15 | or entities not subject to the tax imposed by subsections (a) | ||||||
16 | and (b)
of Section 201 and who make a donation under Section | ||||||
17 | 7.28 of the Illinois
Housing Development Act are entitled to a | ||||||
18 | credit as described in this
subsection and may transfer that | ||||||
19 | credit as described in subsection (c).
| ||||||
20 | (b) If the amount of the credit exceeds the tax liability | ||||||
21 | for the year, the
excess may be carried forward and applied to | ||||||
22 | the tax liability of the 5 taxable
years following the excess | ||||||
23 | credit year. The tax credit shall be applied to the
earliest | ||||||
24 | year for which there is a tax liability. If there are credits | ||||||
25 | for
more than one year that are available to offset a | ||||||
26 | liability, the earlier credit
shall be applied first.
|
| |||||||
| |||||||
1 | (c) The transfer of the tax credit allowed under this | ||||||
2 | Section may be made
(i) to the purchaser of land that has been | ||||||
3 | designated solely for affordable
housing projects in | ||||||
4 | accordance with the Illinois Housing Development Act or
(ii) to | ||||||
5 | another donor who has also made a donation in accordance with | ||||||
6 | Section 7.28 of the
Illinois Housing
Development Act.
| ||||||
7 | (d) A taxpayer claiming the credit provided by this Section | ||||||
8 | must maintain
and record any information that the Department | ||||||
9 | may require by regulation
regarding the project for which the | ||||||
10 | credit is claimed.
When
claiming the credit provided by this | ||||||
11 | Section, the taxpayer must provide
information regarding the | ||||||
12 | taxpayer's donation to the project under the Illinois Housing | ||||||
13 | Development Act.
| ||||||
14 | (Source: P.A. 93-369, eff. 7-24-03; 94-46, eff. 6-17-05.)
| ||||||
15 | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
| ||||||
16 | Sec. 304. Business income of persons other than residents.
| ||||||
17 | (a) In general. The business income of a person other than | ||||||
18 | a
resident shall be allocated to this State if such person's | ||||||
19 | business
income is derived solely from this State. If a person | ||||||
20 | other than a
resident derives business income from this State | ||||||
21 | and one or more other
states, then, for tax years ending on or | ||||||
22 | before December 30, 1998, and
except as otherwise provided by | ||||||
23 | this Section, such
person's business income shall be | ||||||
24 | apportioned to this State by
multiplying the income by a | ||||||
25 | fraction, the numerator of which is the sum
of the property |
| |||||||
| |||||||
1 | factor (if any), the payroll factor (if any) and 200% of the
| ||||||
2 | sales factor (if any), and the denominator of which is 4 | ||||||
3 | reduced by the
number of factors other than the sales factor | ||||||
4 | which have a denominator
of zero and by an additional 2 if the | ||||||
5 | sales factor has a denominator of zero.
For tax years ending on | ||||||
6 | or after December 31, 1998, and except as otherwise
provided by | ||||||
7 | this Section, persons other than
residents who derive business | ||||||
8 | income from this State and one or more other
states shall | ||||||
9 | compute their apportionment factor by weighting their | ||||||
10 | property,
payroll, and sales factors as provided in
subsection | ||||||
11 | (h) of this Section.
| ||||||
12 | (1) Property factor.
| ||||||
13 | (A) The property factor is a fraction, the numerator of | ||||||
14 | which is the
average value of the person's real and | ||||||
15 | tangible personal property owned
or rented and used in the | ||||||
16 | trade or business in this State during the
taxable year and | ||||||
17 | the denominator of which is the average value of all
the | ||||||
18 | person's real and tangible personal property owned or | ||||||
19 | rented and
used in the trade or business during the taxable | ||||||
20 | year.
| ||||||
21 | (B) Property owned by the person is valued at its | ||||||
22 | original cost.
Property rented by the person is valued at 8 | ||||||
23 | times the net annual rental
rate. Net annual rental rate is | ||||||
24 | the annual rental rate paid by the
person less any annual | ||||||
25 | rental rate received by the person from
sub-rentals.
| ||||||
26 | (C) The average value of property shall be determined |
| |||||||
| |||||||
1 | by averaging
the values at the beginning and ending of the | ||||||
2 | taxable year but the
Director may require the averaging of | ||||||
3 | monthly values during the taxable
year if reasonably | ||||||
4 | required to reflect properly the average value of the
| ||||||
5 | person's property.
| ||||||
6 | (2) Payroll factor.
| ||||||
7 | (A) The payroll factor is a fraction, the numerator of | ||||||
8 | which is the
total amount paid in this State during the | ||||||
9 | taxable year by the person
for compensation, and the | ||||||
10 | denominator of which is the total compensation
paid | ||||||
11 | everywhere during the taxable year.
| ||||||
12 | (B) Compensation is paid in this State if:
| ||||||
13 | (i) The individual's service is performed entirely | ||||||
14 | within this
State;
| ||||||
15 | (ii) The individual's service is performed both | ||||||
16 | within and without
this State, but the service | ||||||
17 | performed without this State is incidental
to the | ||||||
18 | individual's service performed within this State; or
| ||||||
19 | (iii) Some of the service is performed within this | ||||||
20 | State and either
the base of operations, or if there is | ||||||
21 | no base of operations, the place
from which the service | ||||||
22 | is directed or controlled is within this State,
or the | ||||||
23 | base of operations or the place from which the service | ||||||
24 | is
directed or controlled is not in any state in which | ||||||
25 | some part of the
service is performed, but the | ||||||
26 | individual's residence is in this State.
|
| |||||||
| |||||||
1 | (iv) Compensation paid to nonresident professional | ||||||
2 | athletes. | ||||||
3 | (a) General. The Illinois source income of a | ||||||
4 | nonresident individual who is a member of a | ||||||
5 | professional athletic team includes the portion of the | ||||||
6 | individual's total compensation for services performed | ||||||
7 | as a member of a professional athletic team during the | ||||||
8 | taxable year which the number of duty days spent within | ||||||
9 | this State performing services for the team in any | ||||||
10 | manner during the taxable year bears to the total | ||||||
11 | number of duty days spent both within and without this | ||||||
12 | State during the taxable year. | ||||||
13 | (b) Travel days. Travel days that do not involve | ||||||
14 | either a game, practice, team meeting, or other similar | ||||||
15 | team event are not considered duty days spent in this | ||||||
16 | State. However, such travel days are considered in the | ||||||
17 | total duty days spent both within and without this | ||||||
18 | State. | ||||||
19 | (c) Definitions. For purposes of this subpart | ||||||
20 | (iv): | ||||||
21 | (1) The term "professional athletic team" | ||||||
22 | includes, but is not limited to, any professional | ||||||
23 | baseball, basketball, football, soccer, or hockey | ||||||
24 | team. | ||||||
25 | (2) The term "member of a professional | ||||||
26 | athletic team" includes those employees who are |
| |||||||
| |||||||
1 | active players, players on the disabled list, and | ||||||
2 | any other persons required to travel and who travel | ||||||
3 | with and perform services on behalf of a | ||||||
4 | professional athletic team on a regular basis. | ||||||
5 | This includes, but is not limited to, coaches, | ||||||
6 | managers, and trainers. | ||||||
7 | (3) Except as provided in items (C) and (D) of | ||||||
8 | this subpart (3), the term "duty days" means all | ||||||
9 | days during the taxable year from the beginning of | ||||||
10 | the professional athletic team's official | ||||||
11 | pre-season training period through the last game | ||||||
12 | in which the team competes or is scheduled to | ||||||
13 | compete. Duty days shall be counted for the year in | ||||||
14 | which they occur, including where a team's | ||||||
15 | official pre-season training period through the | ||||||
16 | last game in which the team competes or is | ||||||
17 | scheduled to compete, occurs during more than one | ||||||
18 | tax year. | ||||||
19 | (A) Duty days shall also include days on | ||||||
20 | which a member of a professional athletic team | ||||||
21 | performs service for a team on a date that does | ||||||
22 | not fall within the foregoing period (e.g., | ||||||
23 | participation in instructional leagues, the | ||||||
24 | "All Star Game", or promotional "caravans"). | ||||||
25 | Performing a service for a professional | ||||||
26 | athletic team includes conducting training and |
| |||||||
| |||||||
1 | rehabilitation activities, when such | ||||||
2 | activities are conducted at team facilities. | ||||||
3 | (B) Also included in duty days are game | ||||||
4 | days, practice days, days spent at team | ||||||
5 | meetings, promotional caravans, preseason | ||||||
6 | training camps, and days served with the team | ||||||
7 | through all post-season games in which the team | ||||||
8 | competes or is scheduled to compete. | ||||||
9 | (C) Duty days for any person who joins a | ||||||
10 | team during the period from the beginning of | ||||||
11 | the professional athletic team's official | ||||||
12 | pre-season training period through the last | ||||||
13 | game in which the team competes, or is | ||||||
14 | scheduled to compete, shall begin on the day | ||||||
15 | that person joins the team. Conversely, duty | ||||||
16 | days for any person who leaves a team during | ||||||
17 | this period shall end on the day that person | ||||||
18 | leaves the team. Where a person switches teams | ||||||
19 | during a taxable year, a separate duty-day | ||||||
20 | calculation shall be made for the period the | ||||||
21 | person was with each team. | ||||||
22 | (D) Days for which a member of a | ||||||
23 | professional athletic team is not compensated | ||||||
24 | and is not performing services for the team in | ||||||
25 | any manner, including days when such member of | ||||||
26 | a professional athletic team has been |
| |||||||
| |||||||
1 | suspended without pay and prohibited from | ||||||
2 | performing any services for the team, shall not | ||||||
3 | be treated as duty days. | ||||||
4 | (E) Days for which a member of a | ||||||
5 | professional athletic team is on the disabled | ||||||
6 | list and does not conduct rehabilitation | ||||||
7 | activities at facilities of the team, and is | ||||||
8 | not otherwise performing services for the team | ||||||
9 | in Illinois, shall not be considered duty days | ||||||
10 | spent in this State. All days on the disabled | ||||||
11 | list, however, are considered to be included in | ||||||
12 | total duty days spent both within and without | ||||||
13 | this State. | ||||||
14 | (4) The term "total compensation for services | ||||||
15 | performed as a member of a professional athletic | ||||||
16 | team" means the total compensation received during | ||||||
17 | the taxable year for services performed: | ||||||
18 | (A) from the beginning of the official | ||||||
19 | pre-season training period through the last | ||||||
20 | game in which the team competes or is scheduled | ||||||
21 | to compete during that taxable year; and | ||||||
22 | (B) during the taxable year on a date which | ||||||
23 | does not fall within the foregoing period | ||||||
24 | (e.g., participation in instructional leagues, | ||||||
25 | the "All Star Game", or promotional caravans). | ||||||
26 | This compensation shall include, but is not |
| |||||||
| |||||||
1 | limited to, salaries, wages, bonuses as described | ||||||
2 | in this subpart, and any other type of compensation | ||||||
3 | paid during the taxable year to a member of a | ||||||
4 | professional athletic team for services performed | ||||||
5 | in that year. This compensation does not include | ||||||
6 | strike benefits, severance pay, termination pay, | ||||||
7 | contract or option year buy-out payments, | ||||||
8 | expansion or relocation payments, or any other | ||||||
9 | payments not related to services performed for the | ||||||
10 | team. | ||||||
11 | For purposes of this subparagraph, "bonuses" | ||||||
12 | included in "total compensation for services | ||||||
13 | performed as a member of a professional athletic | ||||||
14 | team" subject to the allocation described in | ||||||
15 | Section 302(c)(1) are: bonuses earned as a result | ||||||
16 | of play (i.e., performance bonuses) during the | ||||||
17 | season, including bonuses paid for championship, | ||||||
18 | playoff or "bowl" games played by a team, or for | ||||||
19 | selection to all-star league or other honorary | ||||||
20 | positions; and bonuses paid for signing a | ||||||
21 | contract, unless the payment of the signing bonus | ||||||
22 | is not conditional upon the signee playing any | ||||||
23 | games for the team or performing any subsequent | ||||||
24 | services for the team or even making the team, the | ||||||
25 | signing bonus is payable separately from the | ||||||
26 | salary and any other compensation, and the signing |
| |||||||
| |||||||
1 | bonus is nonrefundable.
| ||||||
2 | (3) Sales factor.
| ||||||
3 | (A) The sales factor is a fraction, the numerator of | ||||||
4 | which is the
total sales of the person in this State during | ||||||
5 | the taxable year, and the
denominator of which is the total | ||||||
6 | sales of the person everywhere during
the taxable year.
| ||||||
7 | (B) Sales of tangible personal property are in this | ||||||
8 | State if:
| ||||||
9 | (i) The property is delivered or shipped to a | ||||||
10 | purchaser, other than
the United States government, | ||||||
11 | within this State regardless of the f. o.
b. point or | ||||||
12 | other conditions of the sale; or
| ||||||
13 | (ii) The property is shipped from an office, store, | ||||||
14 | warehouse,
factory or other place of storage in this | ||||||
15 | State and either the purchaser
is the United States | ||||||
16 | government or the person is not taxable in the
state of | ||||||
17 | the purchaser; provided, however, that premises owned | ||||||
18 | or leased
by a person who has independently contracted | ||||||
19 | with the seller for the printing
of newspapers, | ||||||
20 | periodicals or books shall not be deemed to be an | ||||||
21 | office,
store, warehouse, factory or other place of | ||||||
22 | storage for purposes of this
Section.
Sales of tangible | ||||||
23 | personal property are not in this State if the
seller | ||||||
24 | and purchaser would be members of the same unitary | ||||||
25 | business group
but for the fact that either the seller | ||||||
26 | or purchaser is a person with 80%
or more of total |
| |||||||
| |||||||
1 | business activity outside of the United States and the
| ||||||
2 | property is purchased for resale.
| ||||||
3 | (B-1) Patents, copyrights, trademarks, and similar | ||||||
4 | items of intangible
personal property.
| ||||||
5 | (i) Gross receipts from the licensing, sale, or | ||||||
6 | other disposition of a
patent, copyright, trademark, | ||||||
7 | or similar item of intangible personal property
are in | ||||||
8 | this State to the extent the item is utilized in this | ||||||
9 | State during the
year the gross receipts are included | ||||||
10 | in gross income.
| ||||||
11 | (ii) Place of utilization.
| ||||||
12 | (I) A patent is utilized in a state to the | ||||||
13 | extent that it is employed
in production, | ||||||
14 | fabrication, manufacturing, or other processing in | ||||||
15 | the state or
to the extent that a patented product | ||||||
16 | is produced in the state. If a patent is
utilized | ||||||
17 | in
more than one state, the extent to which it is | ||||||
18 | utilized in any one state shall
be a fraction equal | ||||||
19 | to the gross receipts of the licensee or purchaser | ||||||
20 | from
sales or leases of items produced, | ||||||
21 | fabricated, manufactured, or processed
within that | ||||||
22 | state using the patent and of patented items | ||||||
23 | produced within that
state, divided by the total of | ||||||
24 | such gross receipts for all states in which the
| ||||||
25 | patent is utilized.
| ||||||
26 | (II) A copyright is utilized in a state to the |
| |||||||
| |||||||
1 | extent that printing or
other publication | ||||||
2 | originates in the state. If a copyright is utilized | ||||||
3 | in more
than one state, the extent to which it is | ||||||
4 | utilized in any one state shall be a
fraction equal | ||||||
5 | to the gross receipts from sales or licenses of | ||||||
6 | materials
printed or published in that state | ||||||
7 | divided by the total of such gross receipts
for all | ||||||
8 | states in which the copyright is utilized.
| ||||||
9 | (III) Trademarks and other items of intangible | ||||||
10 | personal property
governed by this paragraph (B-1) | ||||||
11 | are utilized in the state in which the
commercial | ||||||
12 | domicile of the licensee or purchaser is located.
| ||||||
13 | (iii) If the state of utilization of an item of | ||||||
14 | property governed by
this paragraph (B-1) cannot be | ||||||
15 | determined from the taxpayer's books and
records or | ||||||
16 | from the books and records of any person related to the | ||||||
17 | taxpayer
within the meaning of Section 267(b) of the | ||||||
18 | Internal Revenue Code, 26 U.S.C.
267, the gross
| ||||||
19 | receipts attributable to that item shall be excluded | ||||||
20 | from both the numerator
and the denominator of the | ||||||
21 | sales factor.
| ||||||
22 | (B-2) Gross receipts from the license, sale, or other | ||||||
23 | disposition of
patents, copyrights, trademarks, and | ||||||
24 | similar items of intangible personal
property may be | ||||||
25 | included in the numerator or denominator of the sales | ||||||
26 | factor
only if gross receipts from licenses, sales, or |
| |||||||
| |||||||
1 | other disposition of such items
comprise more than 50% of | ||||||
2 | the taxpayer's total gross receipts included in gross
| ||||||
3 | income during the tax year and during each of the 2 | ||||||
4 | immediately preceding tax
years; provided that, when a | ||||||
5 | taxpayer is a member of a unitary business group,
such | ||||||
6 | determination shall be made on the basis of the gross | ||||||
7 | receipts of the
entire unitary business group.
| ||||||
8 | (B-5) For taxable years ending on or after December 31, | ||||||
9 | 2008, except as provided in subsections (ii) through (vii), | ||||||
10 | receipts from the sale of telecommunications service or | ||||||
11 | mobile telecommunications service are in this State if the | ||||||
12 | customer's service address is in this State. | ||||||
13 | (i) For purposes of this subparagraph (B-5), the | ||||||
14 | following follow terms have the following meanings: | ||||||
15 | "Ancillary services" means services that are | ||||||
16 | associated with or incidental to the provision of | ||||||
17 | "telecommunications services", including but not | ||||||
18 | limited to "detailed telecommunications billing", | ||||||
19 | "directory assistance", "vertical service", and "voice | ||||||
20 | mail services". | ||||||
21 | "Air-to-Ground Radiotelephone service" means a | ||||||
22 | radio service, as that term is defined in 47 CFR 22.99, | ||||||
23 | in which common carriers are authorized to offer and | ||||||
24 | provide radio telecommunications service for hire to | ||||||
25 | subscribers in aircraft. | ||||||
26 | "Call-by-call Basis" means any method of charging |
| |||||||
| |||||||
1 | for telecommunications services where the price is | ||||||
2 | measured by individual calls. | ||||||
3 | "Communications Channel" means a physical or | ||||||
4 | virtual path of communications over which signals are | ||||||
5 | transmitted between or among customer channel | ||||||
6 | termination points. | ||||||
7 | "Conference bridging service" means an "ancillary | ||||||
8 | service" that links two or more participants of an | ||||||
9 | audio or video conference call and may include the | ||||||
10 | provision of a telephone number. "Conference bridging | ||||||
11 | service" does not include the "telecommunications | ||||||
12 | services" used to reach the conference bridge. | ||||||
13 | "Customer Channel Termination Point" means the | ||||||
14 | location where the customer either inputs or receives | ||||||
15 | the communications. | ||||||
16 | "Detailed telecommunications billing service" | ||||||
17 | means an "ancillary service" of separately stating | ||||||
18 | information pertaining to individual calls on a | ||||||
19 | customer's billing statement. | ||||||
20 | "Directory assistance" means an "ancillary | ||||||
21 | service" of providing telephone number information, | ||||||
22 | and/or address information. | ||||||
23 | "Home service provider" means the facilities based | ||||||
24 | carrier or reseller with which the customer contracts | ||||||
25 | for the provision of mobile telecommunications | ||||||
26 | services. |
| |||||||
| |||||||
1 | "Mobile telecommunications service" means | ||||||
2 | commercial mobile radio service, as defined in Section | ||||||
3 | 20.3 of Title 47 of the Code of Federal Regulations as | ||||||
4 | in effect on June 1, 1999. | ||||||
5 | "Place of primary use" means the street address | ||||||
6 | representative of where the customer's use of the | ||||||
7 | telecommunications service primarily occurs, which | ||||||
8 | must be the residential street address or the primary | ||||||
9 | business street address of the customer. In the case of | ||||||
10 | mobile telecommunications services, "place of primary | ||||||
11 | use" must be within the licensed service area of the | ||||||
12 | home service provider. | ||||||
13 | "Post-paid telecommunication service" means the | ||||||
14 | telecommunications service obtained by making a | ||||||
15 | payment on a call-by-call basis either through the use | ||||||
16 | of a credit card or payment mechanism such as a bank | ||||||
17 | card, travel card, credit card, or debit card, or by | ||||||
18 | charge made to a telephone number which is not | ||||||
19 | associated with the origination or termination of the | ||||||
20 | telecommunications service. A post-paid calling | ||||||
21 | service includes telecommunications service, except a | ||||||
22 | prepaid wireless calling service, that would be a | ||||||
23 | prepaid calling service except it is not exclusively a | ||||||
24 | telecommunication service. | ||||||
25 | "Prepaid telecommunication service" means the | ||||||
26 | right to access exclusively telecommunications |
| |||||||
| |||||||
1 | services, which must be paid for in advance and which | ||||||
2 | enables the origination of calls using an access number | ||||||
3 | or authorization code, whether manually or | ||||||
4 | electronically dialed, and that is sold in | ||||||
5 | predetermined units or dollars of which the number | ||||||
6 | declines with use in a known amount. | ||||||
7 | "Prepaid Mobile telecommunication service" means a | ||||||
8 | telecommunications service that provides the right to | ||||||
9 | utilize mobile wireless service as well as other | ||||||
10 | non-telecommunication services, including but not | ||||||
11 | limited to ancillary services, which must be paid for | ||||||
12 | in advance that is sold in predetermined units or | ||||||
13 | dollars of which the number declines with use in a | ||||||
14 | known amount. | ||||||
15 | "Private communication service" means a | ||||||
16 | telecommunication service that entitles the customer | ||||||
17 | to exclusive or priority use of a communications | ||||||
18 | channel or group of channels between or among | ||||||
19 | termination points, regardless of the manner in which | ||||||
20 | such channel or channels are connected, and includes | ||||||
21 | switching capacity, extension lines, stations, and any | ||||||
22 | other associated services that are provided in | ||||||
23 | connection with the use of such channel or channels. | ||||||
24 | "Service address" means: | ||||||
25 | (a) The location of the telecommunications | ||||||
26 | equipment to which a customer's call is charged and |
| |||||||
| |||||||
1 | from which the call originates or terminates, | ||||||
2 | regardless of where the call is billed or paid; | ||||||
3 | (b) If the location in line (a) is not known, | ||||||
4 | service address means the origination point of the | ||||||
5 | signal of the telecommunications services first | ||||||
6 | identified by either the seller's | ||||||
7 | telecommunications system or in information | ||||||
8 | received by the seller from its service provider | ||||||
9 | where the system used to transport such signals is | ||||||
10 | not that of the seller; and | ||||||
11 | (c) If the locations in line (a) and line (b) | ||||||
12 | are not known, the service address means the | ||||||
13 | location of the customer's place of primary use. | ||||||
14 | "Telecommunications service" means the electronic | ||||||
15 | transmission, conveyance, or routing of voice, data, | ||||||
16 | audio, video, or any other information or signals to a | ||||||
17 | point, or between or among points. The term | ||||||
18 | "telecommunications service" includes such | ||||||
19 | transmission, conveyance, or routing in which computer | ||||||
20 | processing applications are used to act on the form, | ||||||
21 | code or protocol of the content for purposes of | ||||||
22 | transmission, conveyance or routing without regard to | ||||||
23 | whether such service is referred to as voice over | ||||||
24 | Internet protocol services or is classified by the | ||||||
25 | Federal Communications Commission as enhanced or value | ||||||
26 | added. "Telecommunications service" does not include: |
| |||||||
| |||||||
1 | (a) Data processing and information services | ||||||
2 | that allow data to be generated, acquired, stored, | ||||||
3 | processed, or retrieved and delivered by an | ||||||
4 | electronic transmission to a purchaser when such | ||||||
5 | purchaser's primary purpose for the underlying | ||||||
6 | transaction is the processed data or information; | ||||||
7 | (b) Installation or maintenance of wiring or | ||||||
8 | equipment on a customer's premises; | ||||||
9 | (c) Tangible personal property; | ||||||
10 | (d) Advertising, including but not limited to | ||||||
11 | directory advertising. | ||||||
12 | (e) Billing and collection services provided | ||||||
13 | to third parties; | ||||||
14 | (f) Internet access service; | ||||||
15 | (g) Radio and television audio and video | ||||||
16 | programming services, regardless of the medium, | ||||||
17 | including the furnishing of transmission, | ||||||
18 | conveyance and routing of such services by the | ||||||
19 | programming service provider. Radio and television | ||||||
20 | audio and video programming services shall include | ||||||
21 | but not be limited to cable service as defined in | ||||||
22 | 47 USC 522(6) and audio and video programming | ||||||
23 | services delivered by commercial mobile radio | ||||||
24 | service providers, as defined in 47 CFR 20.3; | ||||||
25 | (h) "Ancillary services"; or | ||||||
26 | (i) Digital products "delivered |
| |||||||
| |||||||
1 | electronically", including but not limited to | ||||||
2 | software, music, video, reading materials or ring | ||||||
3 | tones. | ||||||
4 | "Vertical service" means an "ancillary service" | ||||||
5 | that is offered in connection with one or more | ||||||
6 | "telecommunications services", which offers advanced | ||||||
7 | calling features that allow customers to identify | ||||||
8 | callers and to manage multiple calls and call | ||||||
9 | connections, including "conference bridging services". | ||||||
10 | "Voice mail service" means an "ancillary service" | ||||||
11 | that enables the customer to store, send or receive | ||||||
12 | recorded messages. "Voice mail service" does not | ||||||
13 | include any "vertical services" that the customer may | ||||||
14 | be required to have in order to utilize the "voice mail | ||||||
15 | service". | ||||||
16 | (ii) Receipts from the sale of telecommunications | ||||||
17 | service sold on an individual call-by-call basis are in | ||||||
18 | this State if either of the following applies: | ||||||
19 | (a) The call both originates and terminates in | ||||||
20 | this State. | ||||||
21 | (b) The call either originates or terminates | ||||||
22 | in this State and the service address is located in | ||||||
23 | this State. | ||||||
24 | (iii) Receipts from the sale of postpaid | ||||||
25 | telecommunications service at retail are in this State | ||||||
26 | if the origination point of the telecommunication |
| |||||||
| |||||||
1 | signal, as first identified by the service provider's | ||||||
2 | telecommunication system or as identified by | ||||||
3 | information received by the seller from its service | ||||||
4 | provider if the system used to transport | ||||||
5 | telecommunication signals is not the seller's, is | ||||||
6 | located in this State. | ||||||
7 | (iv) Receipts from the sale of prepaid | ||||||
8 | telecommunications service or prepaid mobile | ||||||
9 | telecommunications service at retail are in this State | ||||||
10 | if the purchaser obtains the prepaid card or similar | ||||||
11 | means of conveyance at a location in this State. | ||||||
12 | Receipts from recharging a prepaid telecommunications | ||||||
13 | service or mobile telecommunications service is in | ||||||
14 | this State if the purchaser's billing information | ||||||
15 | indicates a location in this State. | ||||||
16 | (v) Receipts from the sale of private | ||||||
17 | communication services are in this State as follows: | ||||||
18 | (a) 100% of receipts from charges imposed at | ||||||
19 | each channel termination point in this State. | ||||||
20 | (b) 100% of receipts from charges for the total | ||||||
21 | channel mileage between each channel termination | ||||||
22 | point in this State. | ||||||
23 | (c) 50% of the total receipts from charges for | ||||||
24 | service segments when those segments are between 2 | ||||||
25 | customer channel termination points, 1 of which is | ||||||
26 | located in this State and the other is located |
| |||||||
| |||||||
1 | outside of this State, which segments are | ||||||
2 | separately charged. | ||||||
3 | (d) The receipts from charges for service | ||||||
4 | segments with a channel termination point located | ||||||
5 | in this State and in two or more other states, and | ||||||
6 | which segments are not separately billed, are in | ||||||
7 | this State based on a percentage determined by | ||||||
8 | dividing the number of customer channel | ||||||
9 | termination points in this State by the total | ||||||
10 | number of customer channel termination points. | ||||||
11 | (vi) Receipts from charges for ancillary services | ||||||
12 | for telecommunications service sold to customers at | ||||||
13 | retail are in this State if the customer's primary | ||||||
14 | place of use of telecommunications services associated | ||||||
15 | with those ancillary services is in this State. If the | ||||||
16 | seller of those ancillary services cannot determine | ||||||
17 | where the associated telecommunications are located, | ||||||
18 | then the ancillary services shall be based on the | ||||||
19 | location of the purchaser. | ||||||
20 | (vii) Receipts to access a carrier's network or | ||||||
21 | from the sale of telecommunication services or | ||||||
22 | ancillary services for resale are in this State as | ||||||
23 | follows: | ||||||
24 | (a) 100% of the receipts from access fees | ||||||
25 | attributable to intrastate telecommunications | ||||||
26 | service that both originates and terminates in |
| |||||||
| |||||||
1 | this State. | ||||||
2 | (b) 50% of the receipts from access fees | ||||||
3 | attributable to interstate telecommunications | ||||||
4 | service if the interstate call either originates | ||||||
5 | or terminates in this State. | ||||||
6 | (c) 100% of the receipts from interstate end | ||||||
7 | user access line charges, if the customer's | ||||||
8 | service address is in this State. As used in this | ||||||
9 | subdivision, "interstate end user access line | ||||||
10 | charges" includes, but is not limited to, the | ||||||
11 | surcharge approved by the federal communications | ||||||
12 | commission and levied pursuant to 47 CFR 69. | ||||||
13 | (d) Gross receipts from sales of | ||||||
14 | telecommunication services or from ancillary | ||||||
15 | services for telecommunications services sold to | ||||||
16 | other telecommunication service providers for | ||||||
17 | resale shall be sourced to this State using the | ||||||
18 | apportionment concepts used for non-resale | ||||||
19 | receipts of telecommunications services if the | ||||||
20 | information is readily available to make that | ||||||
21 | determination. If the information is not readily | ||||||
22 | available, then the taxpayer may use any other | ||||||
23 | reasonable and consistent method.
| ||||||
24 | (C) For taxable years ending before December 31, 2008, | ||||||
25 | sales, other than sales governed by paragraphs (B), (B-1), | ||||||
26 | and (B-2), are in
this State if:
|
| |||||||
| |||||||
1 | (i) The income-producing activity is performed in | ||||||
2 | this State; or
| ||||||
3 | (ii) The income-producing activity is performed | ||||||
4 | both within and
without this State and a greater | ||||||
5 | proportion of the income-producing
activity is | ||||||
6 | performed within this State than without this State, | ||||||
7 | based
on performance costs.
| ||||||
8 | (C-5) For taxable years ending on or after December 31, | ||||||
9 | 2008, sales, other than sales governed by paragraphs (B), | ||||||
10 | (B-1), (B-2), and (B-5), are in this State if any of the | ||||||
11 | following criteria are met: | ||||||
12 | (i) Sales from the sale or lease of real property | ||||||
13 | are in this State if the property is located in this | ||||||
14 | State. | ||||||
15 | (ii) Sales from the lease or rental of tangible | ||||||
16 | personal property are in this State if the property is | ||||||
17 | located in this State during the rental period. Sales | ||||||
18 | from the lease or rental of tangible personal property | ||||||
19 | that is characteristically moving property, including, | ||||||
20 | but not limited to, motor vehicles, rolling stock, | ||||||
21 | aircraft, vessels, or mobile equipment are in this | ||||||
22 | State to the extent that the property is used in this | ||||||
23 | State. | ||||||
24 | (iii) In the case of interest, net gains (but not | ||||||
25 | less than zero) and other items of income from | ||||||
26 | intangible personal property, the sale is in this State |
| |||||||
| |||||||
1 | if: | ||||||
2 | (a) in the case of a taxpayer who is a dealer | ||||||
3 | in the item of intangible personal property within | ||||||
4 | the meaning of Section 475 of the Internal Revenue | ||||||
5 | Code, the income or gain is received from a | ||||||
6 | customer in this State. For purposes of this | ||||||
7 | subparagraph, a customer is in this State if the | ||||||
8 | customer is an individual, trust or estate who is a | ||||||
9 | resident of this State and, for all other | ||||||
10 | customers, if the customer's commercial domicile | ||||||
11 | is in this State. Unless the dealer has actual | ||||||
12 | knowledge of the residence or commercial domicile | ||||||
13 | of a customer during a taxable year, the customer | ||||||
14 | shall be deemed to be a customer in this State if | ||||||
15 | the billing address of the customer, as shown in | ||||||
16 | the records of the dealer, is in this State; or | ||||||
17 | (b) in all other cases, if the | ||||||
18 | income-producing activity of the taxpayer is | ||||||
19 | performed in this State or, if the | ||||||
20 | income-producing activity of the taxpayer is | ||||||
21 | performed both within and without this State, if a | ||||||
22 | greater proportion of the income-producing | ||||||
23 | activity of the taxpayer is performed within this | ||||||
24 | State than in any other state, based on performance | ||||||
25 | costs. | ||||||
26 | (iv) Sales of services are in this State if the |
| |||||||
| |||||||
1 | services are received in this State. For the purposes | ||||||
2 | of this section, gross receipts from the performance of | ||||||
3 | services provided to a corporation, partnership, or | ||||||
4 | trust may only be attributed to a state where that | ||||||
5 | corporation, partnership, or trust has a fixed place of | ||||||
6 | business. If the state where the services are received | ||||||
7 | is not readily determinable or is a state where the | ||||||
8 | corporation, partnership, or trust receiving the | ||||||
9 | service does not have a fixed place of business, the | ||||||
10 | services shall be deemed to be received at the location | ||||||
11 | of the office of the customer from which the services | ||||||
12 | were ordered in the regular course of the customer's | ||||||
13 | trade or business. If the ordering office cannot be | ||||||
14 | determined, the services shall be deemed to be received | ||||||
15 | at the office of the customer to which the services are | ||||||
16 | billed. If the taxpayer is not taxable in the state in | ||||||
17 | which the services are received, the sale must be | ||||||
18 | excluded from both the numerator and the denominator of | ||||||
19 | the sales factor. The Department shall adopt rules | ||||||
20 | prescribing where specific types of service are | ||||||
21 | received, including, but not limited to, broadcast, | ||||||
22 | cable, advertising, publishing, and utility service.
| ||||||
23 | (D) For taxable years ending on or after December 31, | ||||||
24 | 1995, the following
items of income shall not be included | ||||||
25 | in the numerator or denominator of the
sales factor: | ||||||
26 | dividends; amounts included under Section 78 of the |
| |||||||
| |||||||
1 | Internal
Revenue Code; and Subpart F income as defined in | ||||||
2 | Section 952 of the Internal
Revenue Code.
No inference | ||||||
3 | shall be drawn from the enactment of this paragraph (D) in
| ||||||
4 | construing this Section for taxable years ending before | ||||||
5 | December 31, 1995.
| ||||||
6 | (E) Paragraphs (B-1) and (B-2) shall apply to tax years | ||||||
7 | ending on or
after December 31, 1999, provided that a | ||||||
8 | taxpayer may elect to apply the
provisions of these | ||||||
9 | paragraphs to prior tax years. Such election shall be made
| ||||||
10 | in the form and manner prescribed by the Department, shall | ||||||
11 | be irrevocable, and
shall apply to all tax years; provided | ||||||
12 | that, if a taxpayer's Illinois income
tax liability for any | ||||||
13 | tax year, as assessed under Section 903 prior to January
1, | ||||||
14 | 1999, was computed in a manner contrary to the provisions | ||||||
15 | of paragraphs
(B-1) or (B-2), no refund shall be payable to | ||||||
16 | the taxpayer for that tax year to
the extent such refund is | ||||||
17 | the result of applying the provisions of paragraph
(B-1) or | ||||||
18 | (B-2) retroactively. In the case of a unitary business | ||||||
19 | group, such
election shall apply to all members of such | ||||||
20 | group for every tax year such group
is in existence, but | ||||||
21 | shall not apply to any taxpayer for any period during
which | ||||||
22 | that taxpayer is not a member of such group.
| ||||||
23 | (b) Insurance companies.
| ||||||
24 | (1) In general. Except as otherwise
provided by | ||||||
25 | paragraph (2), business income of an insurance company for | ||||||
26 | a
taxable year shall be apportioned to this State by |
| |||||||
| |||||||
1 | multiplying such
income by a fraction, the numerator of | ||||||
2 | which is the direct premiums
written for insurance upon | ||||||
3 | property or risk in this State, and the
denominator of | ||||||
4 | which is the direct premiums written for insurance upon
| ||||||
5 | property or risk everywhere. For purposes of this | ||||||
6 | subsection, the term
"direct premiums written" means the | ||||||
7 | total amount of direct premiums
written, assessments and | ||||||
8 | annuity considerations as reported for the
taxable year on | ||||||
9 | the annual statement filed by the company with the
Illinois | ||||||
10 | Director of Insurance in the form approved by the National
| ||||||
11 | Convention of Insurance Commissioners
or such other form as | ||||||
12 | may be
prescribed in lieu thereof.
| ||||||
13 | (2) Reinsurance. If the principal source of premiums | ||||||
14 | written by an
insurance company consists of premiums for | ||||||
15 | reinsurance accepted by it,
the business income of such | ||||||
16 | company shall be apportioned to this State
by multiplying | ||||||
17 | such income by a fraction, the numerator of which is the
| ||||||
18 | sum of (i) direct premiums written for insurance upon | ||||||
19 | property or risk
in this State, plus (ii) premiums written | ||||||
20 | for reinsurance accepted in
respect of property or risk in | ||||||
21 | this State, and the denominator of which
is the sum of | ||||||
22 | (iii) direct premiums written for insurance upon property
| ||||||
23 | or risk everywhere, plus (iv) premiums written for | ||||||
24 | reinsurance accepted
in respect of property or risk | ||||||
25 | everywhere. For taxable years ending before December 31, | ||||||
26 | 2008, for purposes of this
paragraph, premiums written for |
| |||||||
| |||||||
1 | reinsurance accepted in respect of
property or risk in this | ||||||
2 | State, whether or not otherwise determinable,
may, at the | ||||||
3 | election of the company, be determined on the basis of the
| ||||||
4 | proportion which premiums written for reinsurance accepted | ||||||
5 | from
companies commercially domiciled in Illinois bears to | ||||||
6 | premiums written
for reinsurance accepted from all | ||||||
7 | sources, or, alternatively, in the
proportion which the sum | ||||||
8 | of the direct premiums written for insurance
upon property | ||||||
9 | or risk in this State by each ceding company from which
| ||||||
10 | reinsurance is accepted bears to the sum of the total | ||||||
11 | direct premiums
written by each such ceding company for the | ||||||
12 | taxable year.
| ||||||
13 | (c) Financial organizations.
| ||||||
14 | (1) In general. For taxable years ending before | ||||||
15 | December 31, 2008, business income of a financial
| ||||||
16 | organization shall be apportioned to this State by | ||||||
17 | multiplying such
income by a fraction, the numerator of | ||||||
18 | which is its business income from
sources within this | ||||||
19 | State, and the denominator of which is its business
income | ||||||
20 | from all sources. For the purposes of this subsection, the
| ||||||
21 | business income of a financial organization from sources | ||||||
22 | within this
State is the sum of the amounts referred to in | ||||||
23 | subparagraphs (A) through
(E) following, but excluding the | ||||||
24 | adjusted income of an international banking
facility as | ||||||
25 | determined in paragraph (2):
| ||||||
26 | (A) Fees, commissions or other compensation for |
| |||||||
| |||||||
1 | financial services
rendered within this State;
| ||||||
2 | (B) Gross profits from trading in stocks, bonds or | ||||||
3 | other securities
managed within this State;
| ||||||
4 | (C) Dividends, and interest from Illinois | ||||||
5 | customers, which are received
within this State;
| ||||||
6 | (D) Interest charged to customers at places of | ||||||
7 | business maintained
within this State for carrying | ||||||
8 | debit balances of margin accounts,
without deduction | ||||||
9 | of any costs incurred in carrying such accounts; and
| ||||||
10 | (E) Any other gross income resulting from the | ||||||
11 | operation as a
financial organization within this | ||||||
12 | State. In computing the amounts
referred to in | ||||||
13 | paragraphs (A) through (E) of this subsection, any | ||||||
14 | amount
received by a member of an affiliated group | ||||||
15 | (determined under Section
1504(a) of the Internal | ||||||
16 | Revenue Code but without reference to whether
any such | ||||||
17 | corporation is an "includible corporation" under | ||||||
18 | Section
1504(b) of the Internal Revenue Code) from | ||||||
19 | another member of such group
shall be included only to | ||||||
20 | the extent such amount exceeds expenses of the
| ||||||
21 | recipient directly related thereto.
| ||||||
22 | (2) International Banking Facility. For taxable years | ||||||
23 | ending before December 31, 2008:
| ||||||
24 | (A) Adjusted Income. The adjusted income of an | ||||||
25 | international banking
facility is its income reduced | ||||||
26 | by the amount of the floor amount.
|
| |||||||
| |||||||
1 | (B) Floor Amount. The floor amount shall be the | ||||||
2 | amount, if any,
determined
by multiplying the income of | ||||||
3 | the international banking facility by a fraction,
not | ||||||
4 | greater than one, which is determined as follows:
| ||||||
5 | (i) The numerator shall be:
| ||||||
6 | The average aggregate, determined on a | ||||||
7 | quarterly basis, of the
financial
organization's | ||||||
8 | loans to banks in foreign countries, to foreign | ||||||
9 | domiciled
borrowers (except where secured | ||||||
10 | primarily by real estate) and to foreign
| ||||||
11 | governments and other foreign official | ||||||
12 | institutions, as reported for its
branches, | ||||||
13 | agencies and offices within the state on its | ||||||
14 | "Consolidated Report
of Condition", Schedule A, | ||||||
15 | Lines 2.c., 5.b., and 7.a., which was filed with
| ||||||
16 | the Federal Deposit Insurance Corporation and | ||||||
17 | other regulatory authorities,
for the year 1980, | ||||||
18 | minus
| ||||||
19 | The average aggregate, determined on a | ||||||
20 | quarterly basis, of such loans
(other
than loans of | ||||||
21 | an international banking facility), as reported by | ||||||
22 | the financial
institution for its branches, | ||||||
23 | agencies and offices within the state, on
the | ||||||
24 | corresponding Schedule and lines of the | ||||||
25 | Consolidated Report of Condition
for the current | ||||||
26 | taxable year, provided, however, that in no case |
| |||||||
| |||||||
1 | shall the
amount determined in this clause (the | ||||||
2 | subtrahend) exceed the amount determined
in the | ||||||
3 | preceding clause (the minuend); and
| ||||||
4 | (ii) the denominator shall be the average | ||||||
5 | aggregate, determined on a
quarterly basis, of the | ||||||
6 | international banking facility's loans to banks in
| ||||||
7 | foreign countries, to foreign domiciled borrowers | ||||||
8 | (except where secured
primarily by real estate) | ||||||
9 | and to foreign governments and other foreign
| ||||||
10 | official institutions, which were recorded in its | ||||||
11 | financial accounts for
the current taxable year.
| ||||||
12 | (C) Change to Consolidated Report of Condition and | ||||||
13 | in Qualification.
In the event the Consolidated Report | ||||||
14 | of Condition which is filed with the
Federal Deposit | ||||||
15 | Insurance Corporation and other regulatory authorities | ||||||
16 | is
altered so that the information required for | ||||||
17 | determining the floor amount
is not found on Schedule | ||||||
18 | A, lines 2.c., 5.b. and 7.a., the financial
institution | ||||||
19 | shall notify the Department and the Department may, by
| ||||||
20 | regulations or otherwise, prescribe or authorize the | ||||||
21 | use of an alternative
source for such information. The | ||||||
22 | financial institution shall also notify
the Department | ||||||
23 | should its international banking facility fail to | ||||||
24 | qualify as
such, in whole or in part, or should there | ||||||
25 | be any amendment or change to
the Consolidated Report | ||||||
26 | of Condition, as originally filed, to the extent
such |
| |||||||
| |||||||
1 | amendment or change alters the information used in | ||||||
2 | determining the floor
amount.
| ||||||
3 | (3) For taxable years ending on or after December 31, | ||||||
4 | 2008, the business income of a financial organization shall | ||||||
5 | be apportioned to this State by multiplying such income by | ||||||
6 | a fraction, the numerator of which is its gross receipts | ||||||
7 | from sources in this State or otherwise attributable to | ||||||
8 | this State's marketplace and the denominator of which is | ||||||
9 | its gross receipts everywhere during the taxable year. | ||||||
10 | "Gross receipts" for purposes of this subparagraph (3) | ||||||
11 | means gross income, including net taxable gain on | ||||||
12 | disposition of assets, including securities and money | ||||||
13 | market instruments, when derived from transactions and | ||||||
14 | activities in the regular course of the financial | ||||||
15 | organization's trade or business. The following examples | ||||||
16 | are illustrative:
| ||||||
17 | (i) Receipts from the lease or rental of real or | ||||||
18 | tangible personal property are in this State if the | ||||||
19 | property is located in this State during the rental | ||||||
20 | period. Receipts from the lease or rental of tangible | ||||||
21 | personal property that is characteristically moving | ||||||
22 | property, including, but not limited to, motor | ||||||
23 | vehicles, rolling stock, aircraft, vessels, or mobile | ||||||
24 | equipment are from sources in this State to the extent | ||||||
25 | that the property is used in this State. | ||||||
26 | (ii) Interest income, commissions, fees, gains on |
| |||||||
| |||||||
1 | disposition, and other receipts from assets in the | ||||||
2 | nature of loans that are secured primarily by real | ||||||
3 | estate or tangible personal property are from sources | ||||||
4 | in this State if the security is located in this State. | ||||||
5 | (iii) Interest income, commissions, fees, gains on | ||||||
6 | disposition, and other receipts from consumer loans | ||||||
7 | that are not secured by real or tangible personal | ||||||
8 | property are from sources in this State if the debtor | ||||||
9 | is a resident of this State. | ||||||
10 | (iv) Interest income, commissions, fees, gains on | ||||||
11 | disposition, and other receipts from commercial loans | ||||||
12 | and installment obligations that are not secured by | ||||||
13 | real or tangible personal property are from sources in | ||||||
14 | this State if the proceeds of the loan are to be | ||||||
15 | applied in this State. If it cannot be determined where | ||||||
16 | the funds are to be applied, the income and receipts | ||||||
17 | are from sources in this State if the office of the | ||||||
18 | borrower from which the loan was negotiated in the | ||||||
19 | regular course of business is located in this State. If | ||||||
20 | the location of this office cannot be determined, the | ||||||
21 | income and receipts shall be excluded from the | ||||||
22 | numerator and denominator of the sales factor.
| ||||||
23 | (v) Interest income, fees, gains on disposition, | ||||||
24 | service charges, merchant discount income, and other | ||||||
25 | receipts from credit card receivables are from sources | ||||||
26 | in this State if the card charges are regularly billed |
| |||||||
| |||||||
1 | to a customer in this State. | ||||||
2 | (vi) Receipts from the performance of services, | ||||||
3 | including, but not limited to, fiduciary, advisory, | ||||||
4 | and brokerage services, are in this State if the | ||||||
5 | services are received in this State within the meaning | ||||||
6 | of subparagraph (a)(3)(C-5)(iv) of this Section. | ||||||
7 | (vii) Receipts from the issuance of travelers | ||||||
8 | checks and money orders are from sources in this State | ||||||
9 | if the checks and money orders are issued from a | ||||||
10 | location within this State. | ||||||
11 | (viii) Receipts from investment assets and | ||||||
12 | activities and trading assets and activities are | ||||||
13 | included in the receipts factor as follows: | ||||||
14 | (1) Interest, dividends, net gains (but not | ||||||
15 | less than zero) and other income from investment | ||||||
16 | assets and activities from trading assets and | ||||||
17 | activities shall be included in the receipts | ||||||
18 | factor. Investment assets and activities and | ||||||
19 | trading assets and activities include but are not | ||||||
20 | limited to: investment securities; trading account | ||||||
21 | assets; federal funds; securities purchased and | ||||||
22 | sold under agreements to resell or repurchase; | ||||||
23 | options; futures contracts; forward contracts; | ||||||
24 | notional principal contracts such as swaps; | ||||||
25 | equities; and foreign currency transactions. With | ||||||
26 | respect to the investment and trading assets and |
| |||||||
| |||||||
1 | activities described in subparagraphs (A) and (B) | ||||||
2 | of this paragraph, the receipts factor shall | ||||||
3 | include the amounts described in such | ||||||
4 | subparagraphs. | ||||||
5 | (A) The receipts factor shall include the | ||||||
6 | amount by which interest from federal funds | ||||||
7 | sold and securities purchased under resale | ||||||
8 | agreements exceeds interest expense on federal | ||||||
9 | funds purchased and securities sold under | ||||||
10 | repurchase agreements. | ||||||
11 | (B) The receipts factor shall include the | ||||||
12 | amount by which interest, dividends, gains and | ||||||
13 | other income from trading assets and | ||||||
14 | activities, including but not limited to | ||||||
15 | assets and activities in the matched book, in | ||||||
16 | the arbitrage book, and foreign currency | ||||||
17 | transactions, exceed amounts paid in lieu of | ||||||
18 | interest, amounts paid in lieu of dividends, | ||||||
19 | and losses from such assets and activities. | ||||||
20 | (2) The numerator of the receipts factor | ||||||
21 | includes interest, dividends, net gains (but not | ||||||
22 | less than zero), and other income from investment | ||||||
23 | assets and activities and from trading assets and | ||||||
24 | activities described in paragraph (1) of this | ||||||
25 | subsection that are attributable to this State. | ||||||
26 | (A) The amount of interest, dividends, net |
| |||||||
| |||||||
1 | gains (but not less than zero), and other | ||||||
2 | income from investment assets and activities | ||||||
3 | in the investment account to be attributed to | ||||||
4 | this State and included in the numerator is | ||||||
5 | determined by multiplying all such income from | ||||||
6 | such assets and activities by a fraction, the | ||||||
7 | numerator of which is the gross income from | ||||||
8 | such assets and activities which are properly | ||||||
9 | assigned to a fixed place of business of the | ||||||
10 | taxpayer within this State and the denominator | ||||||
11 | of which is the gross income from all such | ||||||
12 | assets and activities. | ||||||
13 | (B) The amount of interest from federal | ||||||
14 | funds sold and purchased and from securities | ||||||
15 | purchased under resale agreements and | ||||||
16 | securities sold under repurchase agreements | ||||||
17 | attributable to this State and included in the | ||||||
18 | numerator is determined by multiplying the | ||||||
19 | amount described in subparagraph (A) of | ||||||
20 | paragraph (1) of this subsection from such | ||||||
21 | funds and such securities by a fraction, the | ||||||
22 | numerator of which is the gross income from | ||||||
23 | such funds and such securities which are | ||||||
24 | properly assigned to a fixed place of business | ||||||
25 | of the taxpayer within this State and the | ||||||
26 | denominator of which is the gross income from |
| |||||||
| |||||||
1 | all such funds and such securities. | ||||||
2 | (C) The amount of interest, dividends, | ||||||
3 | gains, and other income from trading assets and | ||||||
4 | activities, including but not limited to | ||||||
5 | assets and activities in the matched book, in | ||||||
6 | the arbitrage book and foreign currency | ||||||
7 | transactions (but excluding amounts described | ||||||
8 | in subparagraphs (A) or (B) of this paragraph), | ||||||
9 | attributable to this State and included in the | ||||||
10 | numerator is determined by multiplying the | ||||||
11 | amount described in subparagraph (B) of | ||||||
12 | paragraph (1) of this subsection by a fraction, | ||||||
13 | the numerator of which is the gross income from | ||||||
14 | such trading assets and activities which are | ||||||
15 | properly assigned to a fixed place of business | ||||||
16 | of the taxpayer within this State and the | ||||||
17 | denominator of which is the gross income from | ||||||
18 | all such assets and activities. | ||||||
19 | (D) Properly assigned, for purposes of | ||||||
20 | this paragraph (2) of this subsection, means | ||||||
21 | the investment or trading asset or activity is | ||||||
22 | assigned to the fixed place of business with | ||||||
23 | which it has a preponderance of substantive | ||||||
24 | contacts. An investment or trading asset or | ||||||
25 | activity assigned by the taxpayer to a fixed | ||||||
26 | place of business without the State shall be |
| |||||||
| |||||||
1 | presumed to have been properly assigned if: | ||||||
2 | (i) the taxpayer has assigned, in the | ||||||
3 | regular course of its business, such asset | ||||||
4 | or activity on its records to a fixed place | ||||||
5 | of business consistent with federal or | ||||||
6 | state regulatory requirements; | ||||||
7 | (ii) such assignment on its records is | ||||||
8 | based upon substantive contacts of the | ||||||
9 | asset or activity to such fixed place of | ||||||
10 | business; and | ||||||
11 | (iii) the taxpayer uses such records | ||||||
12 | reflecting assignment of such assets or | ||||||
13 | activities for the filing of all state and | ||||||
14 | local tax returns for which an assignment | ||||||
15 | of such assets or activities to a fixed | ||||||
16 | place of business is required. | ||||||
17 | (E) The presumption of proper assignment | ||||||
18 | of an investment or trading asset or activity | ||||||
19 | provided in subparagraph (D) of paragraph (2) | ||||||
20 | of this subsection may be rebutted upon a | ||||||
21 | showing by the Department, supported by a | ||||||
22 | preponderance of the evidence, that the | ||||||
23 | preponderance of substantive contacts | ||||||
24 | regarding such asset or activity did not occur | ||||||
25 | at the fixed place of business to which it was | ||||||
26 | assigned on the taxpayer's records. If the |
| |||||||
| |||||||
1 | fixed place of business that has a | ||||||
2 | preponderance of substantive contacts cannot | ||||||
3 | be determined for an investment or trading | ||||||
4 | asset or activity to which the presumption in | ||||||
5 | subparagraph (D) of paragraph (2) of this | ||||||
6 | subsection does not apply or with respect to | ||||||
7 | which that presumption has been rebutted, that | ||||||
8 | asset or activity is properly assigned to the | ||||||
9 | state in which the taxpayer's commercial | ||||||
10 | domicile is located. For purposes of this | ||||||
11 | subparagraph (E), it shall be presumed, | ||||||
12 | subject to rebuttal, that taxpayer's | ||||||
13 | commercial domicile is in the state of the | ||||||
14 | United States or the District of Columbia to | ||||||
15 | which the greatest number of employees are | ||||||
16 | regularly connected with the management of the | ||||||
17 | investment or trading income or out of which | ||||||
18 | they are working, irrespective of where the | ||||||
19 | services of such employees are performed, as of | ||||||
20 | the last day of the taxable year.
| ||||||
21 | (4) (Blank). | ||||||
22 | (5) (Blank). | ||||||
23 | (d) Transportation services. For taxable years ending | ||||||
24 | before December 31, 2008, business income derived from | ||||||
25 | furnishing
transportation services shall be apportioned to | ||||||
26 | this State in accordance
with paragraphs (1) and (2):
|
| |||||||
| |||||||
1 | (1) Such business income (other than that derived from
| ||||||
2 | transportation by pipeline) shall be apportioned to this | ||||||
3 | State by
multiplying such income by a fraction, the | ||||||
4 | numerator of which is the
revenue miles of the person in | ||||||
5 | this State, and the denominator of which
is the revenue | ||||||
6 | miles of the person everywhere. For purposes of this
| ||||||
7 | paragraph, a revenue mile is the transportation of 1 | ||||||
8 | passenger or 1 net
ton of freight the distance of 1 mile | ||||||
9 | for a consideration. Where a
person is engaged in the | ||||||
10 | transportation of both passengers and freight,
the | ||||||
11 | fraction above referred to shall be determined by means of | ||||||
12 | an
average of the passenger revenue mile fraction and the | ||||||
13 | freight revenue
mile fraction, weighted to reflect the | ||||||
14 | person's
| ||||||
15 | (A) relative railway operating income from total | ||||||
16 | passenger and total
freight service, as reported to the | ||||||
17 | Interstate Commerce Commission, in
the case of | ||||||
18 | transportation by railroad, and
| ||||||
19 | (B) relative gross receipts from passenger and | ||||||
20 | freight
transportation, in case of transportation | ||||||
21 | other than by railroad.
| ||||||
22 | (2) Such business income derived from transportation | ||||||
23 | by pipeline
shall be apportioned to this State by | ||||||
24 | multiplying such income by a
fraction, the numerator of | ||||||
25 | which is the revenue miles of the person in
this State, and | ||||||
26 | the denominator of which is the revenue miles of the
person |
| |||||||
| |||||||
1 | everywhere. For the purposes of this paragraph, a revenue | ||||||
2 | mile is
the transportation by pipeline of 1 barrel of oil, | ||||||
3 | 1,000 cubic feet of
gas, or of any specified quantity of | ||||||
4 | any other substance, the distance
of 1 mile for a | ||||||
5 | consideration.
| ||||||
6 | (3) For taxable years ending on or after December 31, | ||||||
7 | 2008, business income derived from providing | ||||||
8 | transportation services other than airline services shall | ||||||
9 | be apportioned to this State by using a fraction, (a) the | ||||||
10 | numerator of which shall be (i) all receipts from any | ||||||
11 | movement or shipment of people, goods, mail, oil, gas, or | ||||||
12 | any other substance (other than by airline) that both | ||||||
13 | originates and terminates in this State, plus (ii) that | ||||||
14 | portion of the person's gross receipts from movements or | ||||||
15 | shipments of people, goods, mail, oil, gas, or any other | ||||||
16 | substance (other than by airline) that originates in one | ||||||
17 | state or jurisdiction and terminates in another state or | ||||||
18 | jurisdiction, that is determined by the ratio that the | ||||||
19 | miles traveled in this State bears to total miles | ||||||
20 | everywhere and (b) the denominator of which shall be all | ||||||
21 | revenue derived from the movement or shipment of people, | ||||||
22 | goods, mail, oil, gas, or any other substance (other than | ||||||
23 | by airline). Where a taxpayer is engaged in the | ||||||
24 | transportation of both passengers and freight, the | ||||||
25 | fraction above referred to shall first be determined | ||||||
26 | separately for passenger miles and freight miles. Then an |
| |||||||
| |||||||
1 | average of the passenger miles fraction and the freight | ||||||
2 | miles fraction shall be weighted to reflect the taxpayer's: | ||||||
3 | (A) relative railway operating income from total | ||||||
4 | passenger and total freight service, as reported to the | ||||||
5 | Surface Transportation Board, in the case of | ||||||
6 | transportation by railroad; and
| ||||||
7 | (B) relative gross receipts from passenger and | ||||||
8 | freight transportation, in case of transportation | ||||||
9 | other than by railroad.
| ||||||
10 | (4) For taxable years ending on or after December 31, | ||||||
11 | 2008, business income derived from furnishing airline
| ||||||
12 | transportation services shall be apportioned to this State | ||||||
13 | by
multiplying such income by a fraction, the numerator of | ||||||
14 | which is the
revenue miles of the person in this State, and | ||||||
15 | the denominator of which
is the revenue miles of the person | ||||||
16 | everywhere. For purposes of this
paragraph, a revenue mile | ||||||
17 | is the transportation of one passenger or one net
ton of | ||||||
18 | freight the distance of one mile for a consideration. If a
| ||||||
19 | person is engaged in the transportation of both passengers | ||||||
20 | and freight,
the fraction above referred to shall be | ||||||
21 | determined by means of an
average of the passenger revenue | ||||||
22 | mile fraction and the freight revenue
mile fraction, | ||||||
23 | weighted to reflect the person's relative gross receipts | ||||||
24 | from passenger and freight
airline transportation.
| ||||||
25 | (e) Combined apportionment. Where 2 or more persons are | ||||||
26 | engaged in
a unitary business as described in subsection |
| |||||||
| |||||||
1 | (a)(27) of
Section 1501,
a part of which is conducted in this | ||||||
2 | State by one or more members of the
group, the business income | ||||||
3 | attributable to this State by any such member
or members shall | ||||||
4 | be apportioned by means of the combined apportionment method.
| ||||||
5 | (f) Alternative allocation. If the allocation and | ||||||
6 | apportionment
provisions of subsections (a) through (e) and of | ||||||
7 | subsection (h) do not
fairly represent the
extent of a person's | ||||||
8 | business activity in this State, the person may
petition for, | ||||||
9 | or the Director may, without a petition, permit or require, in | ||||||
10 | respect of all or any part
of the person's business activity, | ||||||
11 | if reasonable:
| ||||||
12 | (1) Separate accounting;
| ||||||
13 | (2) The exclusion of any one or more factors;
| ||||||
14 | (3) The inclusion of one or more additional factors | ||||||
15 | which will
fairly represent the person's business | ||||||
16 | activities in this State; or
| ||||||
17 | (4) The employment of any other method to effectuate an | ||||||
18 | equitable
allocation and apportionment of the person's | ||||||
19 | business income.
| ||||||
20 | (g) Cross reference. For allocation of business income by | ||||||
21 | residents,
see Section 301(a).
| ||||||
22 | (h) For tax years ending on or after December 31, 1998, the | ||||||
23 | apportionment
factor of persons who apportion their business | ||||||
24 | income to this State under
subsection (a) shall be equal to:
| ||||||
25 | (1) for tax years ending on or after December 31, 1998 | ||||||
26 | and before December
31, 1999, 16 2/3% of the property |
| |||||||
| |||||||
1 | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||||||
2 | the sales factor;
| ||||||
3 | (2) for tax years ending on or after December 31, 1999 | ||||||
4 | and before December
31,
2000, 8 1/3% of the property factor | ||||||
5 | plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales | ||||||
6 | factor;
| ||||||
7 | (3) for tax years ending on or after December 31, 2000, | ||||||
8 | the sales factor.
| ||||||
9 | If, in any tax year ending on or after December 31, 1998 and | ||||||
10 | before December
31, 2000, the denominator of the payroll, | ||||||
11 | property, or sales factor is zero,
the apportionment
factor | ||||||
12 | computed in paragraph (1) or (2) of this subsection for that | ||||||
13 | year shall
be divided by an amount equal to 100% minus the | ||||||
14 | percentage weight given to each
factor whose denominator is | ||||||
15 | equal to zero.
| ||||||
16 | (Source: P.A. 94-247, eff. 1-1-06; 95-233, eff. 8-16-07; | ||||||
17 | 95-707, eff. 1-11-08.)
| ||||||
18 | (35 ILCS 5/502) (from Ch. 120, par. 5-502)
| ||||||
19 | Sec. 502. Returns and notices.
| ||||||
20 | (a) In general. A return with respect to the taxes imposed | ||||||
21 | by this
Act shall be made by every person for any taxable year:
| ||||||
22 | (1) for which such person is liable for a tax imposed | ||||||
23 | by this Act,
or
| ||||||
24 | (2) in the case of a resident or in the case of a | ||||||
25 | corporation which
is qualified to do business in this |
| |||||||
| |||||||
1 | State, for which such person is
required to make a federal | ||||||
2 | income tax return, regardless of whether such
person is | ||||||
3 | liable for a tax imposed by this Act. However, this | ||||||
4 | paragraph
shall not require a resident to make a return if | ||||||
5 | such person has
an
Illinois base income of the basic amount | ||||||
6 | in Section 204(b) or
less and is either claimed as a | ||||||
7 | dependent on
another person's tax return under the Internal | ||||||
8 | Revenue Code of 1986 , or is
claimed as a dependent on | ||||||
9 | another person's tax return under this Act.
| ||||||
10 | Notwithstanding the provisions of paragraph (1), a | ||||||
11 | nonresident whose Illinois income tax liability under | ||||||
12 | subsections (a), (b), (c), and (d) of Section 201 of this Act | ||||||
13 | is paid in full after taking into account the credits allowed | ||||||
14 | under subsection (f) of this Section or allowed under Section | ||||||
15 | 709.5 of this Act shall not be required to file a return under | ||||||
16 | this subsection (a).
| ||||||
17 | (b) Fiduciaries and receivers.
| ||||||
18 | (1) Decedents. If an individual is deceased, any return | ||||||
19 | or notice
required of such individual under this Act shall | ||||||
20 | be made by his
executor, administrator, or other person | ||||||
21 | charged with the property of
such decedent.
| ||||||
22 | (2) Individuals under a disability. If an individual is | ||||||
23 | unable
to make a return or notice required under this Act, | ||||||
24 | the return or notice
required of such individual shall be | ||||||
25 | made by his duly authorized agent,
guardian, fiduciary or | ||||||
26 | other person charged with the care
of the person or |
| |||||||
| |||||||
1 | property of such individual.
| ||||||
2 | (3) Estates and trusts. Returns or notices required of | ||||||
3 | an estate
or a trust shall be made by the fiduciary | ||||||
4 | thereof.
| ||||||
5 | (4) Receivers, trustees and assignees for | ||||||
6 | corporations. In a
case where a receiver, trustee in | ||||||
7 | bankruptcy, or assignee, by order of a
court of competent | ||||||
8 | jurisdiction, by operation of law, or otherwise, has
| ||||||
9 | possession of or holds title to all or substantially all | ||||||
10 | the property or
business of a corporation, whether or not | ||||||
11 | such property or business is
being operated, such receiver, | ||||||
12 | trustee, or assignee shall make the
returns and notices | ||||||
13 | required of such corporation in the same manner and
form as | ||||||
14 | corporations are required to make such returns and notices.
| ||||||
15 | (c) Joint returns by husband and wife.
| ||||||
16 | (1) Except as provided in paragraph (3), if a husband | ||||||
17 | and wife file a
joint federal income tax return for a | ||||||
18 | taxable year they shall file a joint
return under this Act | ||||||
19 | for such taxable year and their liabilities shall be
joint | ||||||
20 | and several, but if the federal income tax liability of | ||||||
21 | either spouse is
determined on a separate federal income | ||||||
22 | tax return, they shall file separate
returns under this | ||||||
23 | Act.
| ||||||
24 | (2) If neither spouse is required to file a federal | ||||||
25 | income tax
return and either or both are required to file a | ||||||
26 | return under this Act,
they may elect to file separate or |
| |||||||
| |||||||
1 | joint returns and pursuant to such
election their | ||||||
2 | liabilities shall be separate or joint and several.
| ||||||
3 | (3) If either husband or wife is a resident and the | ||||||
4 | other is a
nonresident, they shall file separate returns in | ||||||
5 | this State on such
forms as may be required by the | ||||||
6 | Department in which event their tax
liabilities shall be | ||||||
7 | separate; but they may elect to determine their
joint net | ||||||
8 | income and file a joint return as if both were residents | ||||||
9 | and
in such case, their liabilities shall be joint and | ||||||
10 | several.
| ||||||
11 | (4) Innocent spouses.
| ||||||
12 | (A) However, for tax liabilities arising and paid | ||||||
13 | prior to August 13,
1999, an innocent spouse shall be | ||||||
14 | relieved of
liability for tax
(including interest and | ||||||
15 | penalties) for any taxable year for which a joint
| ||||||
16 | return has been made, upon submission of proof that the | ||||||
17 | Internal Revenue
Service has made a determination | ||||||
18 | under Section 6013(e) of the Internal
Revenue Code, for | ||||||
19 | the same taxable year, which determination relieved | ||||||
20 | the
spouse from liability for federal income taxes.
If | ||||||
21 | there is no federal income tax liability at issue for | ||||||
22 | the
same taxable year, the Department shall rely on the | ||||||
23 | provisions of Section
6013(e) to determine whether the | ||||||
24 | person requesting innocent spouse abatement of
tax, | ||||||
25 | penalty, and interest is entitled to that relief.
| ||||||
26 | (B) For tax liabilities arising on and after August |
| |||||||
| |||||||
1 | 13, 1999 or which arose prior to that date, but remain | ||||||
2 | unpaid as of that date, if
an individual
who filed a | ||||||
3 | joint return for any taxable year has made an election | ||||||
4 | under this
paragraph, the individual's liability for | ||||||
5 | any tax shown on the joint return
shall not exceed the | ||||||
6 | individual's separate return amount and the | ||||||
7 | individual's
liability for any deficiency assessed for | ||||||
8 | that taxable year shall not exceed
the portion of the | ||||||
9 | deficiency properly allocable to the individual. For
| ||||||
10 | purposes of this paragraph:
| ||||||
11 | (i) An election properly made pursuant to | ||||||
12 | Section 6015 of the Internal
Revenue Code shall | ||||||
13 | constitute an election under this paragraph, | ||||||
14 | provided that
the election shall not be effective | ||||||
15 | until the individual has notified the
Department | ||||||
16 | of the election in the form and manner prescribed | ||||||
17 | by the Department.
| ||||||
18 | (ii) If no election has been made under Section | ||||||
19 | 6015, the individual
may make an election under | ||||||
20 | this paragraph in the form and manner prescribed by
| ||||||
21 | the Department, provided that no election may be | ||||||
22 | made if the Department finds
that assets were | ||||||
23 | transferred
between individuals filing a joint | ||||||
24 | return as part of a scheme by such
individuals to | ||||||
25 | avoid payment of Illinois income tax and the | ||||||
26 | election shall not
eliminate the individual's |
| |||||||
| |||||||
1 | liability for any portion of a deficiency
| ||||||
2 | attributable to an error on the return of which the | ||||||
3 | individual had actual
knowledge as of the date of | ||||||
4 | filing.
| ||||||
5 | (iii) In determining the separate return | ||||||
6 | amount or portion of any
deficiency attributable | ||||||
7 | to an individual, the Department shall follow the
| ||||||
8 | provisions in subsections (c) and (d) of Section | ||||||
9 | 6015 of the Internal Revenue Code.
| ||||||
10 | (iv) In determining the validity of an | ||||||
11 | individual's election under
subparagraph (ii) and | ||||||
12 | in determining an electing individual's separate | ||||||
13 | return
amount or portion of any deficiency under | ||||||
14 | subparagraph (iii), any determination
made by the | ||||||
15 | Secretary of the Treasury, by the United States Tax | ||||||
16 | Court on
petition for review of a determination by | ||||||
17 | the Secretary of the Treasury, or on
appeal from | ||||||
18 | the United States Tax Court under Section 6015 of
| ||||||
19 | the Internal
Revenue Code regarding criteria for | ||||||
20 | eligibility or under subsection (d) of
Section | ||||||
21 | 6015
of the Internal Revenue Code regarding the | ||||||
22 | allocation of any item of income,
deduction, | ||||||
23 | payment, or credit between an individual making | ||||||
24 | the federal election
and that individual's spouse | ||||||
25 | shall be conclusively presumed to be correct.
With | ||||||
26 | respect to any item that is not the subject of a |
| |||||||
| |||||||
1 | determination by the
Secretary of the Treasury or | ||||||
2 | the federal courts, in any proceeding
involving | ||||||
3 | this subsection, the
individual making the | ||||||
4 | election shall have the burden of proof with | ||||||
5 | respect to
any item except that the Department | ||||||
6 | shall have the burden of proof with respect
to | ||||||
7 | items in subdivision (ii).
| ||||||
8 | (v) Any election made by an individual under | ||||||
9 | this subsection shall
apply to all years for which | ||||||
10 | that individual and the spouse named in the
| ||||||
11 | election have filed a joint return.
| ||||||
12 | (vi) After receiving a notice that the federal | ||||||
13 | election has been made
or after receiving an | ||||||
14 | election under subdivision (ii), the Department | ||||||
15 | shall
take no collection action against the | ||||||
16 | electing individual for any liability
arising from | ||||||
17 | a joint return covered by the election until the | ||||||
18 | Department has
notified the electing individual in | ||||||
19 | writing that the election is invalid or of
the | ||||||
20 | portion of the liability the Department has | ||||||
21 | allocated to the electing
individual. Within 60 | ||||||
22 | days (150 days if the individual is outside the | ||||||
23 | United
States) after the issuance of such | ||||||
24 | notification, the individual may file a
written | ||||||
25 | protest of the denial of the election or of the | ||||||
26 | Department's
determination of the liability |
| |||||||
| |||||||
1 | allocated to him or her and shall be granted a
| ||||||
2 | hearing within the Department under the provisions | ||||||
3 | of Section 908. If a
protest is filed, the | ||||||
4 | Department shall take no collection action against | ||||||
5 | the
electing individual until the decision | ||||||
6 | regarding the protest has become final
under | ||||||
7 | subsection (d) of Section 908 or, if | ||||||
8 | administrative review of the
Department's decision
| ||||||
9 | is requested under Section 1201, until the | ||||||
10 | decision of the court becomes
final.
| ||||||
11 | (d) Partnerships. Every partnership having any base income
| ||||||
12 | allocable to this State in accordance with section 305(c) shall | ||||||
13 | retain
information concerning all items of income, gain, loss | ||||||
14 | and
deduction; the names and addresses of all of the partners, | ||||||
15 | or names and
addresses of members of a limited liability | ||||||
16 | company, or other
persons who would be entitled to share in the | ||||||
17 | base income of the
partnership if distributed; the amount of | ||||||
18 | the distributive share of
each; and such other pertinent | ||||||
19 | information as the Department may by
forms or regulations | ||||||
20 | prescribe. The partnership shall make that information
| ||||||
21 | available to the Department when requested by the Department.
| ||||||
22 | (e) For taxable years ending on or after December 31, 1985, | ||||||
23 | and before
December 31, 1993, taxpayers
that are corporations | ||||||
24 | (other than Subchapter S corporations) having the
same taxable | ||||||
25 | year and that are members of the same unitary business group
| ||||||
26 | may elect to be treated as one taxpayer for purposes of any |
| |||||||
| |||||||
1 | original return,
amended return which includes the same | ||||||
2 | taxpayers of the unitary group which
joined in the election to | ||||||
3 | file the original return, extension, claim for
refund, | ||||||
4 | assessment, collection and payment and determination of the
| ||||||
5 | group's tax liability under this Act. This subsection (e) does | ||||||
6 | not permit the
election to be made for some, but not all, of | ||||||
7 | the purposes enumerated above.
For taxable years ending on or | ||||||
8 | after December 31, 1987, corporate members
(other than | ||||||
9 | Subchapter S corporations) of the same unitary business group
| ||||||
10 | making this subsection (e) election are not required to have | ||||||
11 | the same taxable
year.
| ||||||
12 | For taxable years ending on or after December 31, 1993, | ||||||
13 | taxpayers that are
corporations (other than Subchapter S | ||||||
14 | corporations) and that are members of
the same unitary business | ||||||
15 | group shall be treated as one taxpayer for purposes
of any | ||||||
16 | original return, amended return which includes the same | ||||||
17 | taxpayers of the
unitary group which joined in filing the | ||||||
18 | original return, extension, claim for
refund, assessment, | ||||||
19 | collection and payment and determination of the group's tax
| ||||||
20 | liability under this Act.
| ||||||
21 | (f) The Department may promulgate regulations to permit | ||||||
22 | nonresident
individual partners of the same partnership, | ||||||
23 | nonresident Subchapter S
corporation shareholders of the same | ||||||
24 | Subchapter S corporation, and
nonresident individuals | ||||||
25 | transacting an insurance business in Illinois under
a Lloyds | ||||||
26 | plan of operation, and nonresident individual members of the |
| |||||||
| |||||||
1 | same
limited liability company that is treated as a partnership | ||||||
2 | under Section 1501
(a)(16) of this Act, to file composite | ||||||
3 | individual income tax returns
reflecting the composite income | ||||||
4 | of such individuals allocable to Illinois
and to make composite | ||||||
5 | individual income tax payments. The Department may
by | ||||||
6 | regulation also permit such composite returns to include the | ||||||
7 | income tax
owed by Illinois residents attributable to their | ||||||
8 | income from partnerships,
Subchapter S corporations, insurance | ||||||
9 | businesses organized under a Lloyds
plan of operation, or | ||||||
10 | limited liability companies that are treated as
partnership | ||||||
11 | under Section 1501(a)(16) of this Act, in which case such
| ||||||
12 | Illinois residents will be permitted to claim credits on their | ||||||
13 | individual
returns for their shares of the composite tax | ||||||
14 | payments. This paragraph of
subsection (f) applies to taxable | ||||||
15 | years ending on or after December 31, 1987.
| ||||||
16 | For taxable years ending on or after December 31, 1999, the | ||||||
17 | Department may,
by regulation, also permit any persons | ||||||
18 | transacting an insurance business
organized under a Lloyds plan | ||||||
19 | of operation to file composite returns reflecting
the income of | ||||||
20 | such persons allocable to Illinois and the tax rates applicable
| ||||||
21 | to such persons under Section 201 and to make composite tax | ||||||
22 | payments and shall,
by regulation, also provide that the income | ||||||
23 | and apportionment factors
attributable to the transaction of an | ||||||
24 | insurance business organized under a
Lloyds plan of operation | ||||||
25 | by any person joining in the filing of a composite
return | ||||||
26 | shall, for purposes of allocating and apportioning income under |
| |||||||
| |||||||
1 | Article
3 of this Act and computing net income under Section | ||||||
2 | 202 of this Act, be
excluded from any other income and | ||||||
3 | apportionment factors of that person or of
any unitary business | ||||||
4 | group, as defined in subdivision (a)(27) of Section 1501,
to | ||||||
5 | which that person may belong.
| ||||||
6 | For taxable years ending on or after December 31, 2008, | ||||||
7 | every nonresident shall be allowed a credit against his or her | ||||||
8 | liability under subsections (a) and (b) of Section 201 for any | ||||||
9 | amount of tax reported on a composite return and paid on his or | ||||||
10 | her behalf under this subsection (f). Residents (other than | ||||||
11 | persons transacting an insurance business organized under a | ||||||
12 | Lloyds plan of operation) may claim a credit for taxes reported | ||||||
13 | on a composite return and paid on their behalf under this | ||||||
14 | subsection (f) only as permitted by the Department by rule.
| ||||||
15 | (f-5) For taxable years ending on or after December 31, | ||||||
16 | 2008, the Department may adopt rules to provide that, when a | ||||||
17 | partnership or Subchapter S corporation has made an error in | ||||||
18 | determining the amount of any item of income, deduction, | ||||||
19 | addition, subtraction, or credit required to be reported on its | ||||||
20 | return that affects the liability imposed under this Act on a | ||||||
21 | partner or shareholder, the partnership or Subchapter S | ||||||
22 | corporation may report the changes in liabilities of its | ||||||
23 | partners or shareholders and claim a refund of the resulting | ||||||
24 | overpayments, or pay the resulting underpayments, on behalf of | ||||||
25 | its partners and shareholders.
| ||||||
26 | (g) The Department may adopt rules to authorize the |
| |||||||
| |||||||
1 | electronic filing of
any return required to be filed under this | ||||||
2 | Section.
| ||||||
3 | (Source: P.A. 94-1074, eff. 12-26-06; 95-233, eff. 8-16-07.)
| ||||||
4 | (35 ILCS 5/506) (from Ch. 120, par. 5-506)
| ||||||
5 | Sec. 506. Federal Returns.
| ||||||
6 | (a) In general. Any person required to make a return for a | ||||||
7 | taxable
year under this Act may, at any time that a deficiency | ||||||
8 | could be assessed or
a refund claimed under this Act in respect | ||||||
9 | of any item reported or properly
reportable on such return or | ||||||
10 | any amendment thereof, be required to furnish
to the Department | ||||||
11 | a true and correct copy of any return which may pertain
to such | ||||||
12 | item and which was filed by such person under the provisions of | ||||||
13 | the
Internal Revenue Code.
| ||||||
14 | (b) Changes affecting federal income tax.
A person shall | ||||||
15 | notify the Department if:
| ||||||
16 | (1) the taxable
income, any item of income or | ||||||
17 | deduction, the income tax liability, or
any tax credit | ||||||
18 | reported in an original or amended a federal income tax | ||||||
19 | return of that
person for any
year or as determined by the | ||||||
20 | Internal Revenue Service or the courts is
altered by | ||||||
21 | amendment of such return or as a result of any other
| ||||||
22 | recomputation or redetermination of federal taxable income | ||||||
23 | or loss, and
such alteration reflects a change or | ||||||
24 | settlement with respect to any item or
items, affecting the | ||||||
25 | computation of such person's net income, net loss, or of
|
| |||||||
| |||||||
1 | any credit provided by Article 2 of this Act for any
year | ||||||
2 | under this Act, or in the number
of personal exemptions | ||||||
3 | allowable to
such person under Section 151 of the Internal | ||||||
4 | Revenue Code, or
| ||||||
5 | (2) the amount of tax required to be withheld by that | ||||||
6 | person from
compensation paid to employees and required to | ||||||
7 | be reported by that person on a
federal return is altered | ||||||
8 | by amendment of the return or by any other
recomputation or | ||||||
9 | redetermination that is agreed to or finally determined on | ||||||
10 | or
after January 1, 2003, and the alteration affects the | ||||||
11 | amount of compensation
subject to withholding by that | ||||||
12 | person under Section 701 of this Act.
| ||||||
13 | Such notification shall be
in the form of an amended return or | ||||||
14 | such other form as the Department may
by regulations prescribe, | ||||||
15 | shall contain the person's name and address and
such other | ||||||
16 | information as the Department may by regulations prescribe,
| ||||||
17 | shall be signed by such person or his duly authorized | ||||||
18 | representative, and
shall be filed not later than 120 days | ||||||
19 | after such alteration has been agreed
to or finally determined | ||||||
20 | for federal income tax purposes or any federal
income tax | ||||||
21 | deficiency or refund, tentative carryback adjustment, | ||||||
22 | abatement
or credit resulting therefrom has been assessed or | ||||||
23 | paid, whichever shall
first occur.
| ||||||
24 | (Source: P.A. 92-846, eff. 8-23-02.)
| ||||||
25 | (35 ILCS 5/601) (from Ch. 120, par. 6-601)
|
| |||||||
| |||||||
1 | Sec. 601. Payment on Due Date of Return.
| ||||||
2 | (a) In general. Every taxpayer required to file a return | ||||||
3 | under
this Act shall, without assessment, notice or demand, pay | ||||||
4 | any tax due
thereon to the Department, at the place fixed for | ||||||
5 | filing, on or before
the date fixed for filing such return | ||||||
6 | (determined without regard to any
extension of time for filing | ||||||
7 | the return) pursuant to regulations
prescribed by the | ||||||
8 | Department.
If, however, the due date for payment of a | ||||||
9 | taxpayer's federal income tax
liability for a tax year (as | ||||||
10 | provided in the Internal Revenue Code or by
Treasury | ||||||
11 | regulation, or as extended by the Internal Revenue Service) is | ||||||
12 | later
than the date fixed for filing the taxpayer's Illinois | ||||||
13 | income tax return for
that tax year, the Department may, by | ||||||
14 | rule, prescribe a due date for payment
that is not later than | ||||||
15 | the due date for payment of the taxpayer's federal
income tax | ||||||
16 | liability. For purposes of the Illinois Administrative | ||||||
17 | Procedure
Act, the adoption of rules to prescribe a later due | ||||||
18 | date for payment shall be
deemed an emergency and necessary for | ||||||
19 | the public interest, safety, and
welfare.
| ||||||
20 | (b) Amount payable. In making payment as provided in this
| ||||||
21 | section there shall remain payable only the balance of such tax
| ||||||
22 | remaining due after giving effect to the following:
| ||||||
23 | (1) Withheld tax. Any amount withheld during any | ||||||
24 | calendar year
pursuant to Article 7 from compensation paid | ||||||
25 | to a taxpayer shall be
deemed to have been paid on account | ||||||
26 | of any tax imposed by subsections 201(a)
and (b) of this |
| |||||||
| |||||||
1 | Act on
such taxpayer for his taxable year beginning in such | ||||||
2 | calendar year. If
more than one taxable year begins in a | ||||||
3 | calendar year, such amount shall
be deemed to have been | ||||||
4 | paid on account of such tax for the last taxable
year so | ||||||
5 | beginning.
| ||||||
6 | (2) Estimated and tentative tax payments. Any amount of | ||||||
7 | estimated tax
paid by a taxpayer pursuant to Article 8 for | ||||||
8 | a taxable year shall be deemed to
have been paid on account | ||||||
9 | of the tax imposed by this Act for such
taxable year.
| ||||||
10 | (3) Foreign tax. The aggregate amount of tax which is | ||||||
11 | imposed
upon or measured by income and which is paid by a | ||||||
12 | resident for a taxable
year to another state or states on | ||||||
13 | income which is also subject to the tax
imposed by | ||||||
14 | subsections 201(a) and (b) of this Act shall be credited | ||||||
15 | against
the tax imposed by subsections 201(a) and (b) | ||||||
16 | otherwise due under
this Act for such taxable year. The | ||||||
17 | aggregate credit provided under this
paragraph shall not | ||||||
18 | exceed that amount which bears the same ratio to the tax
| ||||||
19 | imposed by subsections 201(a) and (b) otherwise due under | ||||||
20 | this Act as the
amount of the taxpayer's base income | ||||||
21 | subject to tax both by such other state or
states and by | ||||||
22 | this State bears to his total base income subject to tax by | ||||||
23 | this
State for the taxable year. The credit provided by | ||||||
24 | this paragraph shall
not be allowed if any creditable tax | ||||||
25 | was deducted in determining base income
for the taxable | ||||||
26 | year. Any person claiming such credit shall attach a
|
| |||||||
| |||||||
1 | statement in support thereof and shall notify the Director | ||||||
2 | of any refund
or reductions in the amount of tax claimed as | ||||||
3 | a credit hereunder all in
such manner and at such time as | ||||||
4 | the Department shall by regulations prescribe.
| ||||||
5 | (4) Accumulation and capital gain distributions. If | ||||||
6 | the net
income of a taxpayer includes amounts included in | ||||||
7 | his base income by
reason of Section 667 668 or 669 of the | ||||||
8 | Internal Revenue Code (relating to
accumulation and | ||||||
9 | capital gain distributions by a trust, respectively),
the | ||||||
10 | tax imposed on such taxpayer by this Act shall be credited | ||||||
11 | with his
pro rata portion of the taxes imposed by this Act | ||||||
12 | on such trust for
preceding taxable years which would not | ||||||
13 | have been payable for such
preceding years if the trust had | ||||||
14 | in fact made distributions to its
beneficiaries at the | ||||||
15 | times and in the amounts specified in Section 667 Sections | ||||||
16 | 666
and 669 of the Internal Revenue Code. The credit | ||||||
17 | provided by this
paragraph shall not reduce the tax | ||||||
18 | otherwise due from the taxpayer to an
amount less than that | ||||||
19 | which would be due if the amounts included by
reason of | ||||||
20 | Section 667 Sections 668 and 669 of the Internal Revenue | ||||||
21 | Code were
excluded from his or her base income.
| ||||||
22 | (c) Cross reference. For application against tax due of
| ||||||
23 | overpayments of tax for a prior year, see Section 909.
| ||||||
24 | (Source: P.A. 94-247, eff. 1-1-06.)
| ||||||
25 | (35 ILCS 5/701) (from Ch. 120, par. 7-701) |
| |||||||
| |||||||
1 | Sec. 701. Requirement and Amount of Withholding.
| ||||||
2 | (a) In General. Every
employer maintaining an office or | ||||||
3 | transacting business within this State
and required under the | ||||||
4 | provisions of the Internal Revenue Code to
withhold a tax on:
| ||||||
5 | (1) compensation paid in this State (as determined | ||||||
6 | under Section
304(a)(2)(B) to an individual; or
| ||||||
7 | (2) payments described in subsection (b) shall deduct | ||||||
8 | and withhold from
such compensation for each payroll period | ||||||
9 | (as defined in Section 3401 of
the Internal Revenue Code) | ||||||
10 | an amount equal to the amount by which such
individual's
| ||||||
11 | compensation exceeds the proportionate part of this | ||||||
12 | withholding exemption
(computed as provided in Section | ||||||
13 | 702) attributable to the payroll period
for which such | ||||||
14 | compensation is payable multiplied by a percentage equal
to | ||||||
15 | the percentage tax rate for individuals provided in | ||||||
16 | subsection (b) of
Section 201.
| ||||||
17 | (b) Payment to Residents. Any payment (including | ||||||
18 | compensation) to a
resident
by a payor maintaining an office or | ||||||
19 | transacting business within this State
(including any agency, | ||||||
20 | officer, or employee of this State or of any political
| ||||||
21 | subdivision of this State) and on which withholding of tax is | ||||||
22 | required under
the provisions of the
Internal Revenue Code | ||||||
23 | shall be deemed to be compensation paid in this State
by an | ||||||
24 | employer to an employee for the purposes of Article 7 and | ||||||
25 | Section
601(b)(1) to the extent such payment is included in the | ||||||
26 | recipient's base
income and not subjected to withholding by |
| |||||||
| |||||||
1 | another state.
Notwithstanding any other provision to the | ||||||
2 | contrary, no amount shall be
withheld from unemployment | ||||||
3 | insurance benefit payments made to an individual
pursuant to | ||||||
4 | the Unemployment Insurance Act unless the individual has
| ||||||
5 | voluntarily elected the withholding pursuant to rules | ||||||
6 | promulgated by the
Director of Employment Security.
| ||||||
7 | (c) Special Definitions. Withholding shall be considered | ||||||
8 | required under
the provisions of the Internal Revenue Code to | ||||||
9 | the extent the Internal Revenue
Code either requires | ||||||
10 | withholding or allows for voluntary withholding the
payor and | ||||||
11 | recipient have entered into such a voluntary withholding | ||||||
12 | agreement.
For the purposes of Article 7 and Section 1002(c) | ||||||
13 | the term "employer" includes
any payor who is required to | ||||||
14 | withhold tax pursuant to this Section.
| ||||||
15 | (d) Reciprocal Exemption. The Director may enter into an | ||||||
16 | agreement with
the taxing authorities of any state which | ||||||
17 | imposes a tax on or measured by
income to provide that | ||||||
18 | compensation paid in such state to residents of this
State | ||||||
19 | shall be exempt from withholding of such tax; in such case, any
| ||||||
20 | compensation paid in this State to residents of such state | ||||||
21 | shall be exempt
from withholding.
All reciprocal agreements | ||||||
22 | shall be subject to the requirements of Section
2505-575 of the | ||||||
23 | Department of Revenue Law (20 ILCS
2505/2505-575).
| ||||||
24 | (e) Notwithstanding subsection (a)(2) of this Section, no | ||||||
25 | withholding
is required on payments for which withholding is | ||||||
26 | required under Section
3405 or 3406 of the Internal Revenue |
| |||||||
| |||||||
1 | Code of 1954 .
| ||||||
2 | (Source: P.A. 92-846, eff. 8-23-02; 93-634, eff. 1-1-04.)
| ||||||
3 | (35 ILCS 5/702) (from Ch. 120, par. 7-702)
| ||||||
4 | Sec. 702. Amount Exempt from Withholding. For purposes of | ||||||
5 | this Section
an employee shall be entitled to a withholding | ||||||
6 | exemption in an amount equal
to the basic amount in Section | ||||||
7 | 204(b) for each personal or
dependent exemption which he is
| ||||||
8 | entitled to claim on his federal return pursuant to Section 151 | ||||||
9 | of the
Internal Revenue Code of 1986 ; plus an allowance equal | ||||||
10 | to $1,000 for each
$1,000 he is entitled to deduct from gross | ||||||
11 | income in arriving at adjusted
gross income pursuant to Section | ||||||
12 | 62 of the Internal Revenue Code of 1986 ;
plus an additional | ||||||
13 | allowance equal to $1,000 for each $1,000 eligible for
| ||||||
14 | subtraction on
his Illinois income tax return as Illinois real | ||||||
15 | estate taxes paid during
the taxable year; or in any lesser | ||||||
16 | amount claimed
by him. Every employee shall furnish to his | ||||||
17 | employer such information as
is required for the employer to | ||||||
18 | make an accurate withholding under this
Act. The employer may | ||||||
19 | rely on this information for withholding purposes.
If any | ||||||
20 | employee fails or refuses to furnish such information, the | ||||||
21 | employer
shall withhold the full rate of tax from the | ||||||
22 | employee's total compensation.
| ||||||
23 | (Source: P.A. 90-613, eff. 7-9-98.)
| ||||||
24 | (35 ILCS 5/703) (from Ch. 120, par. 7-703)
|
| |||||||
| |||||||
1 | Sec. 703. Information statement. Every employer required | ||||||
2 | to deduct and withhold tax under this Act from
compensation of | ||||||
3 | an employee, or who would have been required so to deduct
and | ||||||
4 | withhold tax if the employee's withholding exemption were not | ||||||
5 | in excess
of the basic amount in Section 204(b), shall furnish | ||||||
6 | in
duplicate to each such employee in respect of
the | ||||||
7 | compensation paid by such employer to such employee during the | ||||||
8 | calendar
year on or before January 31 of the succeeding year, | ||||||
9 | or, if his employment
is terminated before the close of such | ||||||
10 | calendar year, on the date on which
the last payment of | ||||||
11 | compensation is made, a written statement in such form
as the | ||||||
12 | Department may by regulation prescribe showing the amount of
| ||||||
13 | compensation paid by the employer to the employee, the amount | ||||||
14 | deducted and
withheld as tax, the tax-exempt amount contributed | ||||||
15 | to a medical savings
account, and such other information as the | ||||||
16 | Department shall
prescribe. A copy of such statement shall be | ||||||
17 | filed by the employee with his
return for his taxable year to | ||||||
18 | which it relates (as determined under
Section 601(b)(1)).
| ||||||
19 | (Source: P.A. 91-841, eff. 6-22-00; 92-16, eff. 6-28-01.)
| ||||||
20 | (35 ILCS 5/704A) | ||||||
21 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
22 | (a) In general, every employer who deducts and withholds or | ||||||
23 | is required to deduct and withhold tax under this Act on or | ||||||
24 | after January 1, 2008 shall make those payments and returns as | ||||||
25 | provided in this Section. |
| |||||||
| |||||||
1 | (b) Returns. Every employer shall, in the form and manner | ||||||
2 | required by the Department, make returns with respect to taxes | ||||||
3 | withheld or required to be withheld under this Article 7 for | ||||||
4 | each quarter beginning on or after January 1, 2008, on or | ||||||
5 | before the last day of the first month following the close of | ||||||
6 | that quarter. | ||||||
7 | (c) Payments. With respect to amounts withheld or required | ||||||
8 | to be withheld on or after January 1, 2008: | ||||||
9 | (1) Semi-weekly payments. For each calendar year, each | ||||||
10 | employer who withheld or was required to withhold more than | ||||||
11 | $12,000 during the one-year period ending on June 30 of the | ||||||
12 | immediately preceding calendar year, payment must be made: | ||||||
13 | (A) on or before each Friday of the calendar year, | ||||||
14 | for taxes withheld or required to be withheld on the | ||||||
15 | immediately preceding Saturday, Sunday, Monday, or | ||||||
16 | Tuesday; | ||||||
17 | (B) on or before each Wednesday of the calendar | ||||||
18 | year, for taxes withheld or required to be withheld on | ||||||
19 | the immediately preceding Wednesday, Thursday, or | ||||||
20 | Friday. | ||||||
21 | (2) Semi-weekly payments. Any employer who withholds | ||||||
22 | or is required to withhold more than $12,000 in any quarter | ||||||
23 | of a calendar year is required to make payments on the | ||||||
24 | dates set forth under item (1) of this subsection (c) for | ||||||
25 | each remaining quarter of that calendar year and for the | ||||||
26 | subsequent calendar year.
|
| |||||||
| |||||||
1 | (3) Monthly payments. Each employer, other than an | ||||||
2 | employer described in items (1) or (2) of this subsection, | ||||||
3 | shall pay to the Department, on or before the 15th day of | ||||||
4 | each month the taxes withheld or required to be withheld | ||||||
5 | during the immediately preceding month. | ||||||
6 | (4) Payments with returns. Each employer shall pay to | ||||||
7 | the Department, on or before the due date for each return | ||||||
8 | required to be filed under this Section, any tax withheld | ||||||
9 | or required to be withheld during the period for which the | ||||||
10 | return is due and not previously paid to the Department. | ||||||
11 | (d) Regulatory authority. The Department may, by rule: | ||||||
12 | (1) If the aggregate amounts required to be withheld | ||||||
13 | under this Article 7 do not exceed $1,000 for the calendar | ||||||
14 | year, permit employers, in lieu of the requirements of | ||||||
15 | subsections (b) and (c), to file annual returns due on or | ||||||
16 | before January 31 of the following year for taxes withheld | ||||||
17 | or required to be withheld during that calendar year and to | ||||||
18 | pay the taxes required to be shown on each such return no | ||||||
19 | later than the due date for such return. | ||||||
20 | (2) Provide that any payment required to be made under | ||||||
21 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
22 | extent paid by electronic funds transfer on or before the | ||||||
23 | due date for deposit of federal income taxes withheld from, | ||||||
24 | or federal employment taxes due with respect to, the wages | ||||||
25 | from which the Illinois taxes were withheld. | ||||||
26 | (3) Designate one or more depositories to which payment |
| |||||||
| |||||||
1 | of taxes required to be withheld under this Article 7 must | ||||||
2 | be paid by some or all employers. | ||||||
3 | (4) Increase the threshold dollar amounts at which | ||||||
4 | employers are required to make semi-weekly payments under | ||||||
5 | subsection (c)(1) or (c)(2). | ||||||
6 | (e) Annual return and payment. Every employer who deducts | ||||||
7 | and withholds or is required to deduct and withhold tax from a | ||||||
8 | person engaged in domestic service employment, as that term is | ||||||
9 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
10 | comply with the requirements of this Section with respect to | ||||||
11 | such employees by filing an annual return and paying the taxes | ||||||
12 | required to be deducted and withheld on or before the 15th day | ||||||
13 | of the fourth month following the close of the employer's | ||||||
14 | taxable year. The Department may allow the employer's return to | ||||||
15 | be submitted with the employer's individual income tax return | ||||||
16 | or to be submitted with a return due from the employer under | ||||||
17 | Section 1400.2 of the Unemployment Insurance Act. | ||||||
18 | (f) Magnetic media and electronic filing. Any W-2 Form | ||||||
19 | that, under the Internal Revenue Code and regulations | ||||||
20 | promulgated thereunder, is required to be submitted to the | ||||||
21 | Internal Revenue Service on magnetic media or electronically | ||||||
22 | must also be submitted to the Department on magnetic media or | ||||||
23 | electronically for Illinois purposes, if required by the | ||||||
24 | Department.
| ||||||
25 | (g) Interest on late payment. No interest shall accrue on | ||||||
26 | any underpayment to an amount due under this Section prior to |
| |||||||
| |||||||
1 | the due date (without regard for extensions) of the return on | ||||||
2 | which the underpaid amount was reported or required to be | ||||||
3 | reported. | ||||||
4 | (Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08.)
| ||||||
5 | (35 ILCS 5/804) (from Ch. 120, par. 8-804)
| ||||||
6 | Sec. 804. Failure to Pay Estimated Tax.
| ||||||
7 | (a) In general. In case of any underpayment of estimated | ||||||
8 | tax by a
taxpayer, except as provided in subsection (d) or (e), | ||||||
9 | the taxpayer shall
be liable to a penalty in an amount | ||||||
10 | determined at the rate prescribed by
Section 3-3 of the Uniform | ||||||
11 | Penalty and Interest Act upon the amount of the
underpayment | ||||||
12 | (determined under subsection (b)) for each required | ||||||
13 | installment.
| ||||||
14 | (b) Amount of underpayment. For purposes of subsection (a), | ||||||
15 | the
amount of the underpayment shall be the excess of:
| ||||||
16 | (1) the amount of the installment which would be | ||||||
17 | required to be paid
under subsection (c), over
| ||||||
18 | (2) the amount, if any, of the installment paid on or | ||||||
19 | before the
last date prescribed for payment.
| ||||||
20 | (c) Amount of Required Installments.
| ||||||
21 | (1) Amount.
| ||||||
22 | (A) In General. Except as provided in paragraph | ||||||
23 | (2), the amount of any
required installment shall be | ||||||
24 | 25% of the required annual payment.
| ||||||
25 | (B) Required Annual Payment. For purposes of |
| |||||||
| |||||||
1 | subparagraph (A),
the term "required annual payment" | ||||||
2 | means the lesser of
| ||||||
3 | (i) 90% of the tax shown on the return for the | ||||||
4 | taxable year, or
if no return is filed, 90% of the | ||||||
5 | tax for such year, or
| ||||||
6 | (ii) 100% of the tax shown on the return of the | ||||||
7 | taxpayer for the
preceding taxable year if a return | ||||||
8 | showing a liability for tax was filed by
the | ||||||
9 | taxpayer for the preceding taxable year and such | ||||||
10 | preceding year was a
taxable year of 12 months.
| ||||||
11 | (2) Lower Required Installment where Annualized Income | ||||||
12 | Installment is Less
Than Amount Determined Under Paragraph | ||||||
13 | (1).
| ||||||
14 | (A) In General. In the case of any required | ||||||
15 | installment if a taxpayer
establishes that the | ||||||
16 | annualized income installment is less than the amount
| ||||||
17 | determined under paragraph (1),
| ||||||
18 | (i) the amount of such required installment | ||||||
19 | shall be the annualized
income installment, and
| ||||||
20 | (ii) any reduction in a required installment | ||||||
21 | resulting from the
application of this | ||||||
22 | subparagraph shall be recaptured by increasing the
| ||||||
23 | amount of the next required installment determined | ||||||
24 | under paragraph (1) by
the amount of such | ||||||
25 | reduction, and by increasing subsequent required
| ||||||
26 | installments to the extent that the reduction has |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | not previously been
recaptured under this clause.
| |||||||||||||||||||||||||
2 | (B) Determination of Annualized Income | |||||||||||||||||||||||||
3 | Installment. In the case of
any required installment, | |||||||||||||||||||||||||
4 | the annualized income installment is the
excess, if | |||||||||||||||||||||||||
5 | any, of
| |||||||||||||||||||||||||
6 | (i) an amount equal to the applicable | |||||||||||||||||||||||||
7 | percentage of the tax for the
taxable year computed | |||||||||||||||||||||||||
8 | by placing on an annualized basis the net income | |||||||||||||||||||||||||
9 | for
months in the taxable year ending before the | |||||||||||||||||||||||||
10 | due date for the installment, over
| |||||||||||||||||||||||||
11 | (ii) the aggregate amount of any prior | |||||||||||||||||||||||||
12 | required installments for
the taxable year.
| |||||||||||||||||||||||||
13 | (C) Applicable Percentage.
| |||||||||||||||||||||||||
| ||||||||||||||||||||||||||
20 | (D) Annualized Net Income; Individuals. For | |||||||||||||||||||||||||
21 | individuals, net
income shall be placed on an | |||||||||||||||||||||||||
22 | annualized basis by:
| |||||||||||||||||||||||||
23 | (i) multiplying by 12, or in the case of a | |||||||||||||||||||||||||
24 | taxable year of
less than 12 months, by the number | |||||||||||||||||||||||||
25 | of months in the taxable year, the
net income | |||||||||||||||||||||||||
26 | computed without regard to the standard exemption |
| |||||||
| |||||||
1 | for the months
in the taxable
year ending before | ||||||
2 | the month in which the installment is required to | ||||||
3 | be paid;
| ||||||
4 | (ii) dividing the resulting amount by the | ||||||
5 | number of months in the
taxable year ending before | ||||||
6 | the month in which such installment date falls; and
| ||||||
7 | (iii) deducting from such amount the standard | ||||||
8 | exemption allowable for
the taxable year, such | ||||||
9 | standard exemption being determined as of the last
| ||||||
10 | date prescribed for payment of the installment.
| ||||||
11 | (E) Annualized Net Income; Corporations. For | ||||||
12 | corporations,
net income shall be placed on an | ||||||
13 | annualized basis by multiplying
by 12 the taxable | ||||||
14 | income
| ||||||
15 | (i) for the first 3 months of the taxable year, | ||||||
16 | in the case of the
installment required to be paid | ||||||
17 | in the 4th month,
| ||||||
18 | (ii) for the first 3 months or for the first 5 | ||||||
19 | months of the taxable
year, in the case of the | ||||||
20 | installment required to be paid in the 6th month,
| ||||||
21 | (iii) for the first 6 months or for the first 8 | ||||||
22 | months of the taxable
year, in the case of the | ||||||
23 | installment required to be paid in the 9th month, | ||||||
24 | and
| ||||||
25 | (iv) for the first 9 months or for the first 11 | ||||||
26 | months of the taxable
year, in the case of the |
| |||||||
| |||||||
1 | installment required to be paid in the 12th month
| ||||||
2 | of the taxable year,
| ||||||
3 | then dividing the resulting amount by the number of | ||||||
4 | months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | ||||||
5 | case may be).
| ||||||
6 | (d) Exceptions. Notwithstanding the provisions of the | ||||||
7 | preceding
subsections, the penalty imposed by subsection (a) | ||||||
8 | shall not
be imposed if the taxpayer was not required to file | ||||||
9 | an Illinois income
tax return for the preceding taxable year, | ||||||
10 | or, for individuals, if the
taxpayer had no tax liability for | ||||||
11 | the preceding taxable year and such year
was a taxable year of | ||||||
12 | 12 months.
The penalty imposed by subsection (a) shall
also not | ||||||
13 | be imposed on any underpayments of estimated tax due before the
| ||||||
14 | effective date of this amendatory Act of 1998 which | ||||||
15 | underpayments are solely
attributable to the change in | ||||||
16 | apportionment from subsection (a) to subsection
(h) of Section | ||||||
17 | 304. The provisions of this amendatory Act of 1998 apply to tax
| ||||||
18 | years ending on or after December 31, 1998.
| ||||||
19 | (e) The penalty imposed for underpayment of estimated tax | ||||||
20 | by subsection
(a) of this Section shall not be imposed to the | ||||||
21 | extent that the Director
or his or her designate determines, | ||||||
22 | pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | ||||||
23 | that the penalty should not be imposed.
| ||||||
24 | (f) Definition of tax. For purposes of subsections (b) and | ||||||
25 | (c),
the term "tax" means the excess of the tax imposed under | ||||||
26 | Article 2 of
this Act, over the amounts credited against such |
| |||||||
| |||||||
1 | tax under Sections
601(b) (3) and (4).
| ||||||
2 | (g) Application of Section in case of tax withheld under | ||||||
3 | Article 7.
For purposes of applying this Section:
| ||||||
4 | (1) in the case of an individual, tax
withheld from | ||||||
5 | compensation for the taxable year shall be deemed a payment
| ||||||
6 | of estimated tax, and an equal part of such amount shall be | ||||||
7 | deemed paid
on each installment date for such taxable year, | ||||||
8 | unless the taxpayer
establishes the dates on which all | ||||||
9 | amounts were actually withheld, in
which case the amounts | ||||||
10 | so withheld shall be deemed payments of estimated
tax on | ||||||
11 | the dates on which such amounts were actually withheld;
| ||||||
12 | (2) amounts timely paid by a partnership, Subchapter S | ||||||
13 | corporation, or trust on behalf of a partner, shareholder, | ||||||
14 | or beneficiary pursuant to subsection (f) of Section 502 or | ||||||
15 | Section 709.5 and claimed as a payment of estimated tax | ||||||
16 | shall be deemed a payment of estimated tax made on the last | ||||||
17 | day of the taxable year of the partnership, Subchapter S | ||||||
18 | corporation, or trust for which the income from the | ||||||
19 | withholding is made was computed; and | ||||||
20 | (3) all other amounts pursuant to Article 7 shall be | ||||||
21 | deemed a payment of estimated tax on the date the payment | ||||||
22 | is made to the taxpayer of the amount from which the tax is | ||||||
23 | withheld.
| ||||||
24 | (g-5) Amounts withheld under the State Salary and Annuity | ||||||
25 | Withholding
Act. An individual who has amounts withheld under | ||||||
26 | paragraph (10) of Section 4
of the State Salary and Annuity |
| |||||||
| |||||||
1 | Withholding Act may elect to have those amounts
treated as | ||||||
2 | payments of estimated tax made on the dates on which those | ||||||
3 | amounts
are actually withheld.
| ||||||
4 | (i) Short taxable year. The application of this Section to
| ||||||
5 | taxable years of less than 12 months shall be in accordance | ||||||
6 | with
regulations prescribed by the Department.
| ||||||
7 | The changes in this Section made by Public Act 84-127 shall | ||||||
8 | apply to
taxable years ending on or after January 1, 1986.
| ||||||
9 | (Source: P.A. 95-233, eff. 8-16-07.)
| ||||||
10 | (35 ILCS 5/909) (from Ch. 120, par. 9-909)
| ||||||
11 | Sec. 909. Credits and Refunds.
| ||||||
12 | (a) In general. In the case of any overpayment, the | ||||||
13 | Department , within the applicable period of limitations for a | ||||||
14 | claim for refund, may
credit the amount of such overpayment, | ||||||
15 | including any interest allowed
thereon, against any liability | ||||||
16 | in respect of the tax imposed by this Act,
regardless of | ||||||
17 | whether other collection remedies are closed to the
Department | ||||||
18 | on the part of the person who made the overpayment and shall
| ||||||
19 | refund any balance to such person.
| ||||||
20 | (b) Credits against estimated tax. The Department may
| ||||||
21 | prescribe regulations providing for the crediting against the | ||||||
22 | estimated tax
for any taxable year of the amount determined by | ||||||
23 | the taxpayer or the
Department to be an overpayment of the tax | ||||||
24 | imposed by this Act for a
preceding taxable year.
| ||||||
25 | (c) Interest on overpayment. Interest shall be allowed and |
| |||||||
| |||||||
1 | paid at the
rate and in the manner prescribed in Section 3-2 of | ||||||
2 | the Uniform Penalty and
Interest Act upon any overpayment in | ||||||
3 | respect of the tax imposed by this
Act. For purposes of this | ||||||
4 | subsection, no amount of tax, for any taxable
year, shall be | ||||||
5 | treated as having been paid before the date on which the tax
| ||||||
6 | return for such year was due under Section 505, without regard | ||||||
7 | to any
extension of the time for filing such return.
| ||||||
8 | (d) Refund claim. Every claim for refund shall be filed | ||||||
9 | with the
Department in writing in such form as the Department | ||||||
10 | may by regulations
prescribe, and shall state the specific | ||||||
11 | grounds upon which it is founded.
| ||||||
12 | (e) Notice of denial. As soon as practicable after a claim | ||||||
13 | for refund
is filed, the Department shall examine it and either | ||||||
14 | issue a notice of
refund, abatement or credit to the claimant | ||||||
15 | or issue a notice of denial.
If the Department has failed to | ||||||
16 | approve or deny the claim before the
expiration of 6 months | ||||||
17 | from the date the claim was filed, the claimant may
| ||||||
18 | nevertheless thereafter file with the Department a written | ||||||
19 | protest in such
form as the Department may by regulation | ||||||
20 | prescribe. If a protest is filed,
the Department shall consider | ||||||
21 | the claim and, if the taxpayer has so
requested, shall grant | ||||||
22 | the taxpayer or the taxpayer's authorized
representative a | ||||||
23 | hearing within 6 months after the date such request is filed.
| ||||||
24 | (f) Effect of denial. A denial of a claim for refund | ||||||
25 | becomes final 60
days after the date of issuance of the notice | ||||||
26 | of such denial except for
such amounts denied as to which the |
| |||||||
| |||||||
1 | claimant has filed a protest with the
Department, as provided | ||||||
2 | by Section 910.
| ||||||
3 | (g) An overpayment of tax shown on the face of an unsigned | ||||||
4 | return
shall be considered forfeited to the State if after | ||||||
5 | notice and demand for
signature by the Department the taxpayer | ||||||
6 | fails to provide a signature and 3
years have passed from the | ||||||
7 | date the return was filed.
An overpayment of tax refunded to a | ||||||
8 | taxpayer whose return was filed
electronically shall be | ||||||
9 | considered an erroneous refund under Section 912 of
this Act | ||||||
10 | if, after proper notice and demand by the
Department, the | ||||||
11 | taxpayer fails to provide a required signature document.
A | ||||||
12 | notice and demand for signature in the case of a return | ||||||
13 | reflecting an
overpayment may be made by first class mail. This | ||||||
14 | subsection (g) shall apply
to all returns filed pursuant to | ||||||
15 | this Act since 1969.
| ||||||
16 | (h) This amendatory Act of 1983 applies to returns and | ||||||
17 | claims for
refunds filed with the Department on and after July | ||||||
18 | 1, 1983.
| ||||||
19 | (Source: P.A. 89-399, eff. 8-20-95.)
| ||||||
20 | (35 ILCS 5/911) (from Ch. 120, par. 9-911)
| ||||||
21 | Sec. 911. Limitations on Claims for Refund.
| ||||||
22 | (a) In general. Except
as otherwise provided in this Act:
| ||||||
23 | (1) A claim for refund shall be filed not later than 3 | ||||||
24 | years after
the date the return was filed (in the case of | ||||||
25 | returns required under
Article 7 of this Act respecting any |
| |||||||
| |||||||
1 | amounts withheld as tax, not later
than 3 years after the | ||||||
2 | 15th day of the 4th month following the close of
the | ||||||
3 | calendar year in which such withholding was made), or one | ||||||
4 | year after
the date the tax was paid, whichever is the | ||||||
5 | later; and
| ||||||
6 | (2) No credit or refund shall be allowed or made with | ||||||
7 | respect to the
year for which the claim was filed unless | ||||||
8 | such claim is filed within
such period.
| ||||||
9 | (b) Federal changes.
| ||||||
10 | (1) In general. In any case where
notification of an | ||||||
11 | alteration is required by Section 506(b), a claim
for | ||||||
12 | refund may be filed within 2 years after the date on which | ||||||
13 | such
notification was due (regardless of whether such | ||||||
14 | notice was given), but
the amount recoverable pursuant to a | ||||||
15 | claim filed under this Section
shall be limited to the | ||||||
16 | amount of any overpayment resulting under this
Act from | ||||||
17 | recomputation of the taxpayer's net income, net loss, or | ||||||
18 | Article 2
credits for the taxable
year after giving effect | ||||||
19 | to the item or items reflected in the
alteration required | ||||||
20 | to be reported.
| ||||||
21 | (2) Tentative carryback adjustments paid before | ||||||
22 | January 1, 1974.
If, as the result of the payment before | ||||||
23 | January 1, 1974 of a federal
tentative carryback | ||||||
24 | adjustment, a notification of an alteration is
required | ||||||
25 | under Section 506(b), a claim for refund may be filed at | ||||||
26 | any
time before January 1, 1976, but the amount recoverable |
| |||||||
| |||||||
1 | pursuant to a
claim filed under this Section shall be | ||||||
2 | limited to the amount of any
overpayment resulting under | ||||||
3 | this Act from recomputation of the
taxpayer's base income | ||||||
4 | for the taxable year after giving effect to the
federal | ||||||
5 | alteration resulting from the tentative carryback | ||||||
6 | adjustment
irrespective of any limitation imposed in | ||||||
7 | paragraph (l) of this
subsection.
| ||||||
8 | (c) Extension by agreement. Where, before the expiration of | ||||||
9 | the
time prescribed in this section for the filing of a claim | ||||||
10 | for refund,
both the Department and the claimant shall have | ||||||
11 | consented in writing to
its filing after such time, such claim | ||||||
12 | may be filed at any time prior to
the expiration of the period | ||||||
13 | agreed upon. The period so agreed upon may
be extended by | ||||||
14 | subsequent agreements in writing made before the
expiration of | ||||||
15 | the period previously agreed upon.
In the case of a taxpayer | ||||||
16 | who is a partnership, Subchapter S corporation, or
trust and | ||||||
17 | who enters into an agreement with the Department pursuant to | ||||||
18 | this
subsection on or after January 1, 2003, a claim for refund | ||||||
19 | may be filed by issued to the
partners, shareholders, or | ||||||
20 | beneficiaries of the taxpayer at any time prior to
the | ||||||
21 | expiration of the period agreed upon. Any refund
allowed | ||||||
22 | pursuant to the claim, however, shall be limited to the amount | ||||||
23 | of any
overpayment
of tax due under this Act that results from | ||||||
24 | recomputation of items of income,
deduction, credits, or other | ||||||
25 | amounts of the taxpayer that are taken into
account by the | ||||||
26 | partner, shareholder, or beneficiary in computing its |
| |||||||
| |||||||
1 | liability
under this Act.
| ||||||
2 | (d) Limit on amount of credit or refund.
| ||||||
3 | (1) Limit where claim filed within 3-year period. If | ||||||
4 | the claim was
filed by the claimant during the 3-year | ||||||
5 | period prescribed in subsection
(a), the amount of the | ||||||
6 | credit or refund shall not exceed the portion of
the tax | ||||||
7 | paid within the period, immediately preceding the filing of | ||||||
8 | the
claim, equal to 3 years plus the period of any | ||||||
9 | extension of time for
filing the return.
| ||||||
10 | (2) Limit where claim not filed within 3-year period. | ||||||
11 | If the claim
was not filed within such 3-year period, the | ||||||
12 | amount of the credit or
refund shall not exceed the portion | ||||||
13 | of the tax paid during the one year
immediately preceding | ||||||
14 | the filing of the claim.
| ||||||
15 | (e) Time return deemed filed. For purposes of this section | ||||||
16 | a tax
return filed before the last day prescribed by law for | ||||||
17 | the filing of
such return (including any extensions thereof) | ||||||
18 | shall be deemed to have
been filed on such last day.
| ||||||
19 | (f) No claim for refund or credit based on the taxpayer's | ||||||
20 | taking a credit for
estimated tax payments as provided by | ||||||
21 | Section 601(b)(2) or for any amount
paid by a taxpayer pursuant | ||||||
22 | to Section 602(a) or for any amount of credit for
tax withheld | ||||||
23 | pursuant to Article 7 may be filed unless a return was filed | ||||||
24 | for the tax year not more than 3
years after the due date, as | ||||||
25 | provided by Section 505, of the return which
was required to be | ||||||
26 | filed relative to the taxable year for which the
payments were |
| |||||||
| |||||||
1 | made or for which the tax was withheld. The changes in
this | ||||||
2 | subsection (f) made by this
amendatory Act of 1987 shall apply | ||||||
3 | to all taxable years ending on or after
December 31, 1969.
| ||||||
4 | (g) Special Period of Limitation with Respect to Net Loss | ||||||
5 | Carrybacks.
If the claim for refund relates to an overpayment | ||||||
6 | attributable to a net
loss carryback as provided by Section | ||||||
7 | 207, in lieu of the 3 year period of
limitation prescribed in | ||||||
8 | subsection (a), the period shall be that period
which ends 3 | ||||||
9 | years after the time prescribed by law for filing the return
| ||||||
10 | (including extensions thereof) for the taxable year of the net | ||||||
11 | loss which
results in such carryback (or, on and after August | ||||||
12 | 13, 1999, with respect to a change in the
carryover of
an | ||||||
13 | Article 2 credit to a taxable year resulting from the carryback | ||||||
14 | of a Section
207 loss incurred in a taxable year beginning on | ||||||
15 | or after January 1, 2000, the
period shall be that period
that | ||||||
16 | ends 3 years after the time prescribed by law for filing the | ||||||
17 | return
(including extensions of that time) for that subsequent | ||||||
18 | taxable year),
or the period prescribed in subsection (c) in
| ||||||
19 | respect of such taxable year, whichever expires later. In the | ||||||
20 | case of such
a claim, the amount of the refund may exceed the | ||||||
21 | portion of the tax paid
within the period provided in | ||||||
22 | subsection (d) to the extent of the amount of
the overpayment | ||||||
23 | attributable to such carryback.
On and after August 13, 1999, | ||||||
24 | if the claim for refund relates to an overpayment attributable | ||||||
25 | to
the
carryover
of an Article 2 credit, or of a Section 207 | ||||||
26 | loss, earned, incurred (in a
taxable year beginning on or after |
| |||||||
| |||||||
1 | January 1, 2000), or used in
a
year for which a notification of | ||||||
2 | a change affecting federal taxable income must
be filed under | ||||||
3 | subsection (b) of Section 506, the claim may be filed within | ||||||
4 | the
period
prescribed in paragraph (1) of subsection (b) in | ||||||
5 | respect of the year for which
the
notification is required. In | ||||||
6 | the case of such a claim, the amount of the
refund may exceed | ||||||
7 | the portion of the tax paid within the period provided in
| ||||||
8 | subsection (d) to the extent of the amount of the overpayment | ||||||
9 | attributable to
the recomputation of the taxpayer's Article 2 | ||||||
10 | credits, or Section 207 loss,
earned, incurred, or used in the | ||||||
11 | taxable year for which the notification is
given.
| ||||||
12 | (h) Claim for refund based on net loss. On and after August | ||||||
13 | 23, 2002, no claim for refund shall
be allowed to the extent | ||||||
14 | the refund is the result of an amount of net loss
incurred in | ||||||
15 | any taxable year ending prior to December 31, 2002
under | ||||||
16 | Section 207 of this Act that was not reported to the Department
| ||||||
17 | within 3 years of the due date (including extensions) of the | ||||||
18 | return for the
loss year on either the original return filed by | ||||||
19 | the taxpayer or on amended
return or to the extent that the | ||||||
20 | refund is the result of an amount of net loss incurred in any | ||||||
21 | taxable year under Section 207 for which no return was filed | ||||||
22 | within 3 years of the due date (including extensions) of the | ||||||
23 | return for the loss year.
| ||||||
24 | (Source: P.A. 94-836, eff. 6-6-06; 95-233, eff. 8-16-07.)
| ||||||
25 | (35 ILCS 5/1002) (from Ch. 120, par. 10-1002)
|
| |||||||
| |||||||
1 | Sec. 1002. Failure to Pay Tax.
| ||||||
2 | (a) Negligence. If any part of a deficiency is due to | ||||||
3 | negligence or
intentional disregard of rules and regulations | ||||||
4 | (but without intent to
defraud) there shall be added to the tax | ||||||
5 | as a penalty the amount prescribed
by Section 3-5 of the | ||||||
6 | Uniform Penalty and Interest Act.
| ||||||
7 | (b) Fraud. If any part of a deficiency is due to fraud, | ||||||
8 | there
shall be added to the tax as a penalty the amount | ||||||
9 | prescribed
by Section 3-6 of the Uniform Penalty and Interest | ||||||
10 | Act.
| ||||||
11 | (c) Nonwillful failure to pay withholding tax. If any | ||||||
12 | employer, without
intent to evade or defeat any tax imposed by | ||||||
13 | this Act or the payment
thereof, shall fail to make a return | ||||||
14 | and pay a tax withheld by him at the
time required by or under | ||||||
15 | the provisions of this Act, such employer shall
be liable for | ||||||
16 | such taxes and shall pay the same together with the interest
| ||||||
17 | and the penalty provided by Sections 3-2 and 3-3, respectively, | ||||||
18 | of the
Uniform Penalty and Interest Act and such interest and | ||||||
19 | penalty shall not be
charged to or collected from the employee | ||||||
20 | by the employer.
| ||||||
21 | (d) Willful failure to collect and pay over tax. Any person
| ||||||
22 | required to collect, truthfully account for, and pay over the | ||||||
23 | tax
imposed by this Act who willfully fails to collect such tax | ||||||
24 | or
truthfully account for and pay over such tax or willfully | ||||||
25 | attempts in
any manner to evade or defeat the tax or the | ||||||
26 | payment thereof, shall, in
addition to other penalties provided |
| |||||||
| |||||||
1 | by law, be liable for the penalty
imposed by Section 3-7 of the | ||||||
2 | Uniform Penalty and Interest Act.
| ||||||
3 | (e) Penalties assessable.
| ||||||
4 | (1) In general. Except as otherwise provided in this | ||||||
5 | Act or the Uniform Penalty and Interest Act , the
penalties | ||||||
6 | provided by this Act or by the Uniform Penalty and Interest | ||||||
7 | Act shall be paid upon notice and demand and
shall be | ||||||
8 | assessed, collected, and paid in the same manner as taxes | ||||||
9 | and any
reference in this Act to the tax imposed by this | ||||||
10 | Act shall be deemed also
to refer to penalties provided by | ||||||
11 | this Act or by the Uniform Penalty and Interest Act .
| ||||||
12 | (2) Procedure for assessing certain penalties. For the | ||||||
13 | purposes of
Article 9 any penalty under Section 804(a) or | ||||||
14 | Section 1001 shall be deemed
assessed upon the filing of | ||||||
15 | the return for the taxable year.
| ||||||
16 | (3) Procedure for assessing the penalty for failure to | ||||||
17 | file withholding
returns or annual transmittal forms for | ||||||
18 | wage and tax statements. The penalty
imposed by Section | ||||||
19 | 1004 will be asserted by the Department's issuance of
a | ||||||
20 | notice of deficiency. If taxpayer files a timely protest, | ||||||
21 | the procedures
of Section 908 will be followed. If taxpayer | ||||||
22 | does not file a timely protest,
the notice of deficiency | ||||||
23 | will constitute an assessment pursuant to subsection
(c) of | ||||||
24 | Section 904.
| ||||||
25 | (4) Assessment of penalty under Section 1005(a) 1005 | ||||||
26 | (b) . The penalty imposed under Section 1005(a) 1005(b) |
| |||||||
| |||||||
1 | shall be deemed assessed upon the assessment of the tax to | ||||||
2 | which such penalty relates and shall be collected and paid | ||||||
3 | on notice and demand in the same manner as the tax.
| ||||||
4 | (f) Determination of deficiency. For purposes of | ||||||
5 | subsections (a)
and (b), the amount shown as the tax by the | ||||||
6 | taxpayer upon his return
shall be taken into account in | ||||||
7 | determining the amount of the deficiency
only if such return | ||||||
8 | was filed on or before the last day prescribed by
law for the | ||||||
9 | filing of such return, including any extensions of the time
for | ||||||
10 | such filing.
| ||||||
11 | (Source: P.A. 93-840, eff. 7-30-04.)
| ||||||
12 | (35 ILCS 5/1101) (from Ch. 120, par. 11-1101)
| ||||||
13 | Sec. 1101. Lien for Tax. | ||||||
14 | (a) If any person liable to pay any tax
neglects or refuses | ||||||
15 | to pay the same after demand, the amount (including any
| ||||||
16 | interest, additional amount,
addition to tax, or assessable | ||||||
17 | penalty, together with any costs that may
accrue in addition | ||||||
18 | thereto) shall be a lien in favor of the State of
Illinois upon | ||||||
19 | all property and rights to property, whether real or
personal, | ||||||
20 | belonging to such person.
| ||||||
21 | (b) Unless another date is specifically fixed by law, the | ||||||
22 | lien imposed
by subsection (a) of this Section shall arise at | ||||||
23 | the time the assessment is
made and shall continue until the | ||||||
24 | liability for the amount so assessed (or
a judgment against the | ||||||
25 | taxpayer arising out of such liability) is satisfied
or becomes |
| |||||||
| |||||||
1 | unenforceable by reason of lapse of time.
| ||||||
2 | (c) Deficiency procedure. If the lien arises from an | ||||||
3 | assessment
pursuant to a notice of deficiency, such lien shall | ||||||
4 | not attach and the
notice referred to in this section shall not | ||||||
5 | be filed until all proceedings
in court for review of such | ||||||
6 | assessment have terminated or the time for the
taking thereof | ||||||
7 | has expired without such proceedings being instituted.
| ||||||
8 | (d) Notice of lien. The lien created by assessment shall
| ||||||
9 | terminate unless a notice of lien is filed, as provided in | ||||||
10 | section 1103 hereof,
within 3 years from the date all | ||||||
11 | proceedings in court for the review of
such assessment have | ||||||
12 | terminated or the time for the taking thereof has
expired | ||||||
13 | without such proceedings being instituted. Where the lien | ||||||
14 | results
from the filing of a return without payment of the tax | ||||||
15 | or penalty shown
therein to be due, the lien shall terminate | ||||||
16 | unless a notice of lien is
filed within 3 years from the date | ||||||
17 | such return was filed with the
Department.
For the purposes of | ||||||
18 | this subsection (d) (c) , a tax return filed before the last
day | ||||||
19 | prescribed by law, including any extension thereof, shall be | ||||||
20 | deemed to
have been filed on such last day. The time limitation | ||||||
21 | period on the Department's right to file a notice of lien shall | ||||||
22 | not run during any period of time in which the order of any | ||||||
23 | court has the effect of enjoining or restraining the Department | ||||||
24 | from filing such notice of lien.
| ||||||
25 | (Source: P.A. 86-905.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/1405.4)
| ||||||
2 | Sec. 1405.4. Tax refund inquiries; response. The | ||||||
3 | Department of Revenue
shall establish procedures to inform | ||||||
4 | taxpayers of the status of their refunds and shall provide a | ||||||
5 | response to respond in writing to each inquiry concerning | ||||||
6 | refunds under this Act
within 10 days after receiving the | ||||||
7 | inquiry. The response shall include the
date the inquiry was | ||||||
8 | received, the file number assigned to the inquiry, and the
name | ||||||
9 | and telephone number of a person within the Department of | ||||||
10 | Revenue whom the
taxpayer may contact with further inquiries.
| ||||||
11 | (Source: P.A. 89-89, eff. 6-30-95.)
| ||||||
12 | Section 25. The Motor Fuel Tax Law is amended by changing | ||||||
13 | Section 1.22 as follows:
| ||||||
14 | (35 ILCS 505/1.22)
| ||||||
15 | Sec. 1.22. "Jurisdiction" means a state of the United | ||||||
16 | States, the District
of Columbia, a state of the United Mexican | ||||||
17 | States, or a province or Territory of Canada.
| ||||||
18 | (Source: P.A. 88-480.)
| ||||||
19 | Section 30. The Uniform Penalty and Interest Act is amended | ||||||
20 | by changing Section 3-3 as follows:
| ||||||
21 | (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
| ||||||
22 | Sec. 3-3. Penalty for failure to file or pay.
|
| |||||||
| |||||||
1 | (a) This subsection (a) is applicable before January 1, | ||||||
2 | 1996. A penalty
of 5% of the tax required to be shown due on a | ||||||
3 | return shall be
imposed for failure to file the tax return on | ||||||
4 | or before the due date prescribed
for filing determined with | ||||||
5 | regard for any extension of time for filing
(penalty
for late | ||||||
6 | filing or nonfiling). If any unprocessable return is corrected | ||||||
7 | and
filed within 21 days after notice by the Department, the | ||||||
8 | late filing or
nonfiling penalty shall not apply. If a penalty | ||||||
9 | for late filing or nonfiling
is imposed in addition to a | ||||||
10 | penalty for late payment, the total penalty due
shall be the | ||||||
11 | sum of the late filing penalty and the applicable late payment
| ||||||
12 | penalty.
Beginning on the effective date of this amendatory Act | ||||||
13 | of 1995, in the case
of any type of tax return required to be | ||||||
14 | filed more frequently
than annually, when the failure to file | ||||||
15 | the tax return on or before the
date prescribed for filing | ||||||
16 | (including any extensions) is shown to be
nonfraudulent and has | ||||||
17 | not occurred in the 2 years immediately preceding the
failure | ||||||
18 | to file on the prescribed due date, the penalty imposed by | ||||||
19 | Section
3-3(a) shall be abated.
| ||||||
20 | (a-5) This subsection (a-5) is applicable to returns due on | ||||||
21 | and after
January 1, 1996 and on or before December 31, 2000.
A | ||||||
22 | penalty equal to 2% of
the tax required to be shown due on a | ||||||
23 | return, up to a maximum amount of $250,
determined without | ||||||
24 | regard to any part of the tax that is paid on time or by any
| ||||||
25 | credit that was properly allowable on the date the return was | ||||||
26 | required to be
filed, shall be
imposed for failure to file the |
| |||||||
| |||||||
1 | tax return on or before the due date prescribed
for filing | ||||||
2 | determined with regard for any extension of time for filing.
| ||||||
3 | However, if any return is not filed within 30 days after notice | ||||||
4 | of nonfiling
mailed by the Department to the last known address | ||||||
5 | of the taxpayer contained in
Department records, an additional | ||||||
6 | penalty amount shall be imposed equal to the
greater of $250 or | ||||||
7 | 2% of the tax shown on the return. However, the additional
| ||||||
8 | penalty amount may not exceed $5,000 and is determined without | ||||||
9 | regard to any
part of the tax that is paid on time or by any | ||||||
10 | credit that was properly
allowable on the date the return was | ||||||
11 | required to be filed (penalty
for late filing or nonfiling). If | ||||||
12 | any unprocessable return is corrected and
filed within 30 days | ||||||
13 | after notice by the Department, the late filing or
nonfiling | ||||||
14 | penalty shall not apply. If a penalty for late filing or | ||||||
15 | nonfiling
is imposed in addition to a penalty for late payment, | ||||||
16 | the total penalty due
shall be the sum of the late filing | ||||||
17 | penalty and the applicable late payment
penalty.
In the case of | ||||||
18 | any type of tax return required to be filed more frequently
| ||||||
19 | than annually, when the failure to file the tax return on or | ||||||
20 | before the
date prescribed for filing (including any | ||||||
21 | extensions) is shown to be
nonfraudulent and has not occurred | ||||||
22 | in the 2 years immediately preceding the
failure to file on the | ||||||
23 | prescribed due date, the penalty imposed by Section
3-3(a-5) | ||||||
24 | shall be abated.
| ||||||
25 | (a-10) This subsection (a-10) is applicable to returns due | ||||||
26 | on and after
January 1, 2001.
A penalty equal to 2% of
the tax |
| |||||||
| |||||||
1 | required to be shown due on a return, up to a maximum amount of | ||||||
2 | $250,
reduced by any tax that is
paid on time or by any
credit | ||||||
3 | that was properly allowable on the date the return was required | ||||||
4 | to be
filed, shall be
imposed for failure to file the tax | ||||||
5 | return on or before the due date prescribed
for filing | ||||||
6 | determined with regard for any extension of time for filing.
| ||||||
7 | However, if any return is not filed within 30 days after notice | ||||||
8 | of nonfiling
mailed by the Department to the last known address | ||||||
9 | of the taxpayer contained in
Department records, an additional | ||||||
10 | penalty amount shall be imposed equal to the
greater of $250 or | ||||||
11 | 2% of the tax shown on the return. However, the additional
| ||||||
12 | penalty amount may not exceed $5,000 and is determined without | ||||||
13 | regard to any
part of the tax that is paid on time or by any | ||||||
14 | credit that was properly
allowable on the date the return was | ||||||
15 | required to be filed (penalty
for late filing or nonfiling). If | ||||||
16 | any unprocessable return is corrected and
filed within 30 days | ||||||
17 | after notice by the Department, the late filing or
nonfiling | ||||||
18 | penalty shall not apply. If a penalty for late filing or | ||||||
19 | nonfiling
is imposed in addition to a penalty for late payment, | ||||||
20 | the total penalty due
shall be the sum of the late filing | ||||||
21 | penalty and the applicable late payment
penalty.
In the case of | ||||||
22 | any type of tax return required to be filed more frequently
| ||||||
23 | than annually, when the failure to file the tax return on or | ||||||
24 | before the
date prescribed for filing (including any | ||||||
25 | extensions) is shown to be
nonfraudulent and has not occurred | ||||||
26 | in the 2 years immediately preceding the
failure to file on the |
| |||||||
| |||||||
1 | prescribed due date, the penalty imposed by Section
3-3(a-10) | ||||||
2 | shall be abated.
| ||||||
3 | (b) This subsection is applicable before January 1, 1998.
A | ||||||
4 | penalty of 15% of the tax shown on the return or the tax | ||||||
5 | required to
be shown due on the return shall be imposed for | ||||||
6 | failure to pay:
| ||||||
7 | (1) the tax shown due on the return on or before the | ||||||
8 | due date prescribed
for payment of that tax, an amount of | ||||||
9 | underpayment of estimated tax, or an
amount that is | ||||||
10 | reported in an amended return other than an amended return
| ||||||
11 | timely filed as required by subsection (b) of Section 506 | ||||||
12 | of the Illinois
Income Tax Act (penalty for late payment or | ||||||
13 | nonpayment of admitted liability);
or
| ||||||
14 | (2) the full amount of any tax required to be shown due | ||||||
15 | on a
return and which is not shown (penalty for late | ||||||
16 | payment or nonpayment of
additional liability), within 30 | ||||||
17 | days after a notice of arithmetic error,
notice and demand, | ||||||
18 | or a final assessment is issued by the Department.
In the | ||||||
19 | case of a final assessment arising following a protest and | ||||||
20 | hearing,
the 30-day period shall not begin until all | ||||||
21 | proceedings in court for review of
the final assessment | ||||||
22 | have terminated or the period for obtaining a review has
| ||||||
23 | expired without proceedings for a review having been | ||||||
24 | instituted. In the case
of a notice of tax liability that | ||||||
25 | becomes a final assessment without a protest
and hearing, | ||||||
26 | the penalty provided in this paragraph (2) shall be imposed |
| |||||||
| |||||||
1 | at the
expiration of the period provided for the filing of | ||||||
2 | a protest.
| ||||||
3 | (b-5) This subsection is applicable to returns due on and | ||||||
4 | after January
1, 1998 and on or before December 31, 2000.
A | ||||||
5 | penalty of 20% of the tax shown on the return or the tax | ||||||
6 | required to be
shown due on the return shall be imposed for | ||||||
7 | failure to
pay:
| ||||||
8 | (1) the tax shown due on the return on or before the | ||||||
9 | due date prescribed
for payment of that tax, an amount of | ||||||
10 | underpayment of estimated tax, or an
amount that is | ||||||
11 | reported in an amended return other than an amended return
| ||||||
12 | timely filed as required by subsection (b) of Section 506 | ||||||
13 | of the Illinois
Income Tax Act (penalty for late payment or | ||||||
14 | nonpayment of admitted liability);
or
| ||||||
15 | (2) the full amount of any tax required to be shown due | ||||||
16 | on a
return and which is not shown (penalty for late | ||||||
17 | payment or nonpayment of
additional liability), within 30 | ||||||
18 | days after a notice of arithmetic error,
notice and demand, | ||||||
19 | or a final assessment is issued by the Department.
In the | ||||||
20 | case of a final assessment arising following a protest and | ||||||
21 | hearing,
the 30-day period shall not begin until all | ||||||
22 | proceedings in court for review of
the final assessment | ||||||
23 | have terminated or the period for obtaining a review has
| ||||||
24 | expired without proceedings for a review having been | ||||||
25 | instituted. In the case
of a notice of tax liability that | ||||||
26 | becomes a final assessment without a protest
and hearing, |
| |||||||
| |||||||
1 | the penalty provided in this paragraph (2) shall be imposed | ||||||
2 | at the
expiration of the period provided for the filing of | ||||||
3 | a protest.
| ||||||
4 | (b-10) This subsection (b-10) is applicable to returns due | ||||||
5 | on and after
January 1, 2001 and on or before December 31, | ||||||
6 | 2003. A penalty shall be
imposed for failure to pay:
| ||||||
7 | (1) the tax shown due on a return on or before the due | ||||||
8 | date prescribed for
payment of that tax, an amount of | ||||||
9 | underpayment of estimated tax, or an amount
that is | ||||||
10 | reported in an amended return other than an amended return | ||||||
11 | timely filed
as required by subsection (b) of Section 506 | ||||||
12 | of the Illinois Income Tax Act
(penalty for late payment or | ||||||
13 | nonpayment of admitted liability). The amount of
penalty | ||||||
14 | imposed under this subsection (b-10)(1) shall be 2% of any | ||||||
15 | amount that
is paid no later than 30 days after the due | ||||||
16 | date, 5% of any amount that is
paid later than 30 days | ||||||
17 | after the due date and not later than 90 days after
the due | ||||||
18 | date, 10% of any amount that is paid later than 90 days | ||||||
19 | after the due
date and not later than 180 days after the | ||||||
20 | due date, and 15% of any amount that
is paid later than 180 | ||||||
21 | days after the
due date.
If notice and demand is made for | ||||||
22 | the payment of any amount of tax due and if
the amount due | ||||||
23 | is paid within 30 days after the date of the notice and | ||||||
24 | demand,
then the penalty for late payment or nonpayment of | ||||||
25 | admitted liability under
this subsection (b-10)(1) on the | ||||||
26 | amount so paid shall not accrue for the period
after the |
| |||||||
| |||||||
1 | date of the notice and demand.
| ||||||
2 | (2) the full amount of any tax required to be shown due | ||||||
3 | on a return and
that is not shown (penalty for late payment | ||||||
4 | or nonpayment of additional
liability), within 30 days | ||||||
5 | after a notice of arithmetic error, notice and
demand, or a | ||||||
6 | final assessment is issued by the Department. In the case | ||||||
7 | of a
final assessment arising following a protest and | ||||||
8 | hearing, the 30-day period
shall not begin until all | ||||||
9 | proceedings in court for review of the final
assessment | ||||||
10 | have terminated or the period for obtaining a review has | ||||||
11 | expired
without proceedings for a review having been | ||||||
12 | instituted. The amount of penalty
imposed under this | ||||||
13 | subsection (b-10)(2) shall be 20% of any amount that is not
| ||||||
14 | paid within the 30-day period. In the case of a notice of | ||||||
15 | tax liability that
becomes a final assessment without a | ||||||
16 | protest and hearing, the penalty provided
in this | ||||||
17 | subsection (b-10)(2) shall be imposed at the expiration of | ||||||
18 | the period
provided for the filing of a protest.
| ||||||
19 | (b-15) This subsection (b-15) is applicable to returns due | ||||||
20 | on and after
January 1, 2004 and on or before December 31, | ||||||
21 | 2004. A penalty shall be imposed for failure to pay the tax | ||||||
22 | shown due or
required to be shown due on a return on or before | ||||||
23 | the due date prescribed for
payment of that tax, an amount of | ||||||
24 | underpayment of estimated tax, or an amount
that is reported in | ||||||
25 | an amended return other than an amended return timely filed
as | ||||||
26 | required by subsection (b) of Section 506 of the Illinois |
| |||||||
| |||||||
1 | Income Tax Act
(penalty for late payment or nonpayment of | ||||||
2 | admitted liability). The amount of
penalty imposed under this | ||||||
3 | subsection (b-15) (b-15)(1) shall be 2% of any amount that
is | ||||||
4 | paid no later than 30 days after the due date, 10% of any | ||||||
5 | amount that is
paid later than 30 days after the due date and | ||||||
6 | not later than 90 days after the
due date, 15% of any amount | ||||||
7 | that is paid later than 90 days after the due date
and not | ||||||
8 | later than 180 days after the due date, and 20% of any amount | ||||||
9 | that is
paid later than 180 days after the due date. If notice | ||||||
10 | and demand is made for
the payment of any amount of tax due and | ||||||
11 | if the amount due is paid within 30
days after the date of this | ||||||
12 | notice and demand, then the penalty for late
payment or | ||||||
13 | nonpayment of admitted liability under this subsection (b-15) | ||||||
14 | (b-15)(1) on
the amount so paid shall not accrue for the period | ||||||
15 | after the date of the notice
and demand.
| ||||||
16 | (b-20) This subsection (b-20) is applicable to returns due | ||||||
17 | on and after January 1, 2005. | ||||||
18 | (1) A penalty shall be imposed for failure to pay, | ||||||
19 | prior to the due date for payment, any amount of tax the | ||||||
20 | payment of which is required to be made prior to the filing | ||||||
21 | of a return or without a return (penalty for late payment | ||||||
22 | or nonpayment of estimated or accelerated tax). The amount | ||||||
23 | of penalty imposed under this paragraph (1) shall be 2% of | ||||||
24 | any amount that is paid no later than 30 days after the due | ||||||
25 | date and 10% of any amount that is paid later than 30 days | ||||||
26 | after the due date. |
| |||||||
| |||||||
1 | (2) A penalty shall be imposed for failure to pay the | ||||||
2 | tax shown due or required to be shown due on a return on or | ||||||
3 | before the due date prescribed for payment of that tax or | ||||||
4 | an amount that is reported in an amended return other than | ||||||
5 | an amended return timely filed as required by subsection | ||||||
6 | (b) of Section 506 of the Illinois Income Tax Act (penalty | ||||||
7 | for late payment or nonpayment of tax). The amount of | ||||||
8 | penalty imposed under this paragraph (2) shall be 2% of any | ||||||
9 | amount that is paid no later than 30 days after the due | ||||||
10 | date, 10% of any amount that is paid later than 30 days | ||||||
11 | after the due date and prior to the date the Department has | ||||||
12 | initiated an audit or investigation of the taxpayer, and | ||||||
13 | 20% of any amount that is paid after the date the | ||||||
14 | Department has initiated an audit or investigation of the | ||||||
15 | taxpayer; provided that the penalty shall be reduced to 15% | ||||||
16 | if the entire amount due is paid not later than 30 days | ||||||
17 | after the Department has provided the taxpayer with an | ||||||
18 | amended return (following completion of an occupation, | ||||||
19 | use, or excise tax audit) or a form for waiver of | ||||||
20 | restrictions on assessment (following completion of an | ||||||
21 | income tax audit); provided further that the reduction to | ||||||
22 | 15% shall be rescinded if the taxpayer makes any claim for | ||||||
23 | refund or credit of the tax, penalties, or interest | ||||||
24 | determined to be due upon audit, except in the case of a | ||||||
25 | claim filed pursuant to subsection (b) of Section 506 of | ||||||
26 | the Illinois Income Tax Act or to claim a carryover of a |
| |||||||
| |||||||
1 | loss or credit, the availability of which was not | ||||||
2 | determined in the audit. For purposes of this paragraph | ||||||
3 | (2), any overpayment reported on an original return that | ||||||
4 | has been allowed as a refund or credit to the taxpayer | ||||||
5 | shall be deemed to have not been paid on or before the due | ||||||
6 | date for payment and any amount paid under protest pursuant | ||||||
7 | to the provisions of the State Officers and Employees Money | ||||||
8 | Disposition Act shall be deemed to have been paid after the | ||||||
9 | Department has initiated an audit and more than 30 days | ||||||
10 | after the Department has provided the taxpayer with an | ||||||
11 | amended return (following completion of an occupation, | ||||||
12 | use, or excise tax audit) or a form for waiver of | ||||||
13 | restrictions on assessment (following completion of an | ||||||
14 | income tax audit). | ||||||
15 | (3) The penalty imposed under this subsection (b-20) | ||||||
16 | shall be deemed assessed at the time the tax upon which the | ||||||
17 | penalty is computed is assessed, except that, if the | ||||||
18 | reduction of the penalty imposed under paragraph (2) of | ||||||
19 | this subsection (b-20) to 15% is rescinded because a claim | ||||||
20 | for refund or credit has been filed, the increase in | ||||||
21 | penalty shall be deemed assessed at the time the claim for | ||||||
22 | refund or credit is filed.
| ||||||
23 | (c) For purposes of the late payment penalties, the basis | ||||||
24 | of the penalty
shall be the tax shown or required to be shown | ||||||
25 | on a return, whichever is
applicable, reduced by any part of | ||||||
26 | the tax which is paid on time and by any
credit which was |
| |||||||
| |||||||
1 | properly allowable on the date the return was required to
be | ||||||
2 | filed.
| ||||||
3 | (d) A penalty shall be applied to the tax required to be | ||||||
4 | shown even if
that amount is less than the tax shown on the | ||||||
5 | return.
| ||||||
6 | (e) This subsection (e) is applicable to returns due before | ||||||
7 | January 1,
2001.
If both a subsection (b)(1) or (b-5)(1) | ||||||
8 | penalty and a subsection (b)(2)
or (b-5)(2) penalty are | ||||||
9 | assessed against the same return, the subsection
(b)(2) or | ||||||
10 | (b-5)(2) penalty shall
be assessed against only the additional | ||||||
11 | tax found to be due.
| ||||||
12 | (e-5) This subsection (e-5) is applicable to returns due on | ||||||
13 | and after
January 1, 2001.
If both a subsection (b-10)(1) | ||||||
14 | penalty and a subsection
(b-10)(2) penalty are assessed against | ||||||
15 | the same return,
the subsection (b-10)(2) penalty shall be | ||||||
16 | assessed against
only the additional tax found to be due.
| ||||||
17 | (f) If the taxpayer has failed to file the return, the | ||||||
18 | Department shall
determine the correct tax according to its | ||||||
19 | best judgment and information,
which amount shall be prima | ||||||
20 | facie evidence of the correctness of the tax due.
| ||||||
21 | (g) The time within which to file a return or pay an amount | ||||||
22 | of tax due
without imposition of a penalty does not extend the | ||||||
23 | time within which to
file a protest to a notice of tax | ||||||
24 | liability or a notice of deficiency.
| ||||||
25 | (h) No return shall be determined to be unprocessable | ||||||
26 | because of the
omission of any information requested on the |
| |||||||
| |||||||
1 | return pursuant to Section
2505-575
of the Department of | ||||||
2 | Revenue Law (20 ILCS 2505/2505-575).
| ||||||
3 | (i) If a taxpayer has a tax liability that is eligible for | ||||||
4 | amnesty under the
Tax Delinquency Amnesty Act and the taxpayer | ||||||
5 | fails to satisfy the tax liability
during the amnesty period | ||||||
6 | provided for in that Act, then the penalty imposed by
the | ||||||
7 | Department under this Section shall be imposed in an amount | ||||||
8 | that is 200% of
the amount that would otherwise be imposed | ||||||
9 | under this Section.
| ||||||
10 | (Source: P.A. 92-742, eff. 7-25-02; 93-26, eff. 6-20-03; 93-32, | ||||||
11 | eff. 6-20-03; 93-1068, eff. 1-15-05.)
| ||||||
12 | Section 35. The Counties Code is amended by changing | ||||||
13 | Sections 5-1006, 5-1006.5, 5-1006.7, and 5-1007 as follows:
| ||||||
14 | (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
| ||||||
15 | Sec. 5-1006. Home Rule County Retailers' Occupation Tax | ||||||
16 | Law. Any county that is a home rule unit may impose
a tax upon | ||||||
17 | all persons engaged in the business of selling tangible
| ||||||
18 | personal property, other than an item of tangible personal | ||||||
19 | property titled
or registered with an agency of this State's | ||||||
20 | government, at retail in the
county on the gross receipts from | ||||||
21 | such sales made in the course of
their business. If imposed, | ||||||
22 | this tax shall only
be imposed in 1/4% increments. On and after | ||||||
23 | September 1, 1991, this
additional tax may not be imposed on | ||||||
24 | the sales of food for human
consumption which is to be consumed |
| |||||||
| |||||||
1 | off the premises where it is sold
(other than alcoholic | ||||||
2 | beverages, soft drinks and food which has been
prepared for | ||||||
3 | immediate consumption) and prescription and nonprescription
| ||||||
4 | medicines, drugs, medical appliances , modifications to a motor | ||||||
5 | vehicle for the purpose of rendering it usable by a disabled | ||||||
6 | person, and insulin, urine testing materials,
syringes and | ||||||
7 | needles used by diabetics. The tax imposed by a home rule
| ||||||
8 | county pursuant to this Section and all civil penalties that | ||||||
9 | may be
assessed as an incident thereof shall be collected and | ||||||
10 | enforced by the
State Department of Revenue. The certificate of | ||||||
11 | registration that is
issued by the Department to a retailer | ||||||
12 | under the Retailers'
Occupation Tax Act shall permit the | ||||||
13 | retailer to engage in a
business that is taxable under any | ||||||
14 | ordinance or resolution
enacted pursuant to this Section | ||||||
15 | without registering separately with the
Department under such | ||||||
16 | ordinance or resolution or under this Section. The
Department | ||||||
17 | shall have full power to administer and enforce this Section; | ||||||
18 | to
collect all taxes and penalties due hereunder; to dispose of | ||||||
19 | taxes and
penalties so collected in the manner hereinafter | ||||||
20 | provided; and to
determine all rights to credit memoranda | ||||||
21 | arising on account of the
erroneous payment of tax or penalty | ||||||
22 | hereunder. In the administration of,
and compliance with, this | ||||||
23 | Section, the Department and persons who are
subject to this | ||||||
24 | Section shall have the same rights, remedies, privileges,
| ||||||
25 | immunities, powers and duties, and be subject to the same | ||||||
26 | conditions,
restrictions, limitations, penalties and |
| |||||||
| |||||||
1 | definitions of terms, and employ
the same modes of procedure, | ||||||
2 | as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, | ||||||
3 | 1k, 1m, 1n, 2 through 2-65 (in respect to all provisions
| ||||||
4 | therein other
than the State rate of tax), 4, 5, 5a, 5b, 5c, | ||||||
5 | 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, | ||||||
6 | 11, 12 and 13 of the Retailers'
Occupation Tax Act and Section | ||||||
7 | 3-7 of the Uniform Penalty and Interest Act,
as fully as if | ||||||
8 | those provisions were set forth herein.
| ||||||
9 | No tax may be imposed by a home rule county pursuant to | ||||||
10 | this Section
unless the county also imposes a tax at the same | ||||||
11 | rate pursuant
to Section 5-1007.
| ||||||
12 | Persons subject to any tax imposed pursuant to the | ||||||
13 | authority granted
in this Section may reimburse themselves for | ||||||
14 | their seller's tax
liability hereunder by separately stating | ||||||
15 | such tax as an additional
charge, which charge may be stated in | ||||||
16 | combination, in a single amount,
with State tax which sellers | ||||||
17 | are required to collect under the Use Tax
Act, pursuant to such | ||||||
18 | bracket schedules as the Department may prescribe.
| ||||||
19 | Whenever the Department determines that a refund should be | ||||||
20 | made under
this Section to a claimant instead of issuing a | ||||||
21 | credit memorandum, the
Department shall notify the State | ||||||
22 | Comptroller, who shall cause the
order to be drawn for the | ||||||
23 | amount specified and to the person named
in the notification | ||||||
24 | from the Department. The
refund shall be paid by the State | ||||||
25 | Treasurer out of the home rule county
retailers' occupation tax | ||||||
26 | fund.
|
| |||||||
| |||||||
1 | The Department shall forthwith pay over to the State | ||||||
2 | Treasurer, ex
officio, as trustee, all taxes and penalties | ||||||
3 | collected hereunder. On or
before the 25th day of each calendar | ||||||
4 | month, the Department shall
prepare and certify to the | ||||||
5 | Comptroller the disbursement of stated sums
of money to named | ||||||
6 | counties, the counties to be those from which retailers
have | ||||||
7 | paid taxes or penalties hereunder to the Department during the | ||||||
8 | second
preceding calendar month. The amount to be paid to each | ||||||
9 | county shall be
the amount (not including credit memoranda) | ||||||
10 | collected hereunder during the
second preceding calendar month | ||||||
11 | by the Department plus an amount the
Department determines is | ||||||
12 | necessary to offset any amounts that
were erroneously paid to a | ||||||
13 | different taxing body, and not including an
amount equal to the | ||||||
14 | amount of refunds made during the second preceding
calendar | ||||||
15 | month by the Department on behalf of such county, and not
| ||||||
16 | including any amount which the Department determines is | ||||||
17 | necessary to offset
any amounts which were payable to a | ||||||
18 | different taxing body but were
erroneously paid to the county. | ||||||
19 | Within 10 days after receipt, by the
Comptroller, of the | ||||||
20 | disbursement certification to the counties provided for
in this | ||||||
21 | Section to be given to the Comptroller by the Department, the
| ||||||
22 | Comptroller shall cause the orders to be drawn for the | ||||||
23 | respective amounts
in accordance with the directions contained | ||||||
24 | in the certification.
| ||||||
25 | In addition to the disbursement required by the preceding | ||||||
26 | paragraph,
an allocation shall be made in March of each year to |
| |||||||
| |||||||
1 | each county that
received more than $500,000 in disbursements | ||||||
2 | under the preceding
paragraph in the preceding calendar year. | ||||||
3 | The allocation shall be in an
amount equal to the average | ||||||
4 | monthly distribution made to each such county
under the | ||||||
5 | preceding paragraph during the preceding calendar year | ||||||
6 | (excluding
the 2 months of highest receipts). The distribution | ||||||
7 | made in March of each
year subsequent to the year in which an | ||||||
8 | allocation was made pursuant to
this paragraph and the | ||||||
9 | preceding paragraph shall be reduced by the amount
allocated | ||||||
10 | and disbursed under this paragraph in the preceding calendar
| ||||||
11 | year. The Department shall prepare and certify to the | ||||||
12 | Comptroller for
disbursement the allocations made in | ||||||
13 | accordance with this paragraph.
| ||||||
14 | For the purpose of determining the local governmental unit | ||||||
15 | whose tax
is applicable, a retail sale by a producer of coal or | ||||||
16 | other mineral
mined in Illinois is a sale at retail at the | ||||||
17 | place where the coal or
other mineral mined in Illinois is | ||||||
18 | extracted from the earth. This
paragraph does not apply to coal | ||||||
19 | or other mineral when it is delivered
or shipped by the seller | ||||||
20 | to the purchaser at a point outside Illinois so
that the sale | ||||||
21 | is exempt under the United States
Constitution as a sale in | ||||||
22 | interstate or foreign commerce.
| ||||||
23 | Nothing in this Section shall be construed to authorize a
| ||||||
24 | county to impose a tax upon the privilege of engaging in any
| ||||||
25 | business which under the Constitution of the United States may | ||||||
26 | not be
made the subject of taxation by this State.
|
| |||||||
| |||||||
1 | An ordinance or resolution imposing or discontinuing a tax | ||||||
2 | hereunder or
effecting a change in the rate thereof shall be | ||||||
3 | adopted and a certified
copy thereof filed with the Department | ||||||
4 | on or before the first day of June,
whereupon the Department | ||||||
5 | shall proceed to administer and enforce this
Section as of the | ||||||
6 | first day of September next following such adoption
and filing. | ||||||
7 | Beginning January 1, 1992, an ordinance or resolution imposing
| ||||||
8 | or discontinuing the tax hereunder or effecting a change in the | ||||||
9 | rate
thereof shall be adopted and a certified copy thereof | ||||||
10 | filed with the
Department on or before the first day of July, | ||||||
11 | whereupon the Department
shall proceed to administer and | ||||||
12 | enforce this Section as of the first day of
October next | ||||||
13 | following such adoption and filing. Beginning January 1, 1993,
| ||||||
14 | an ordinance or resolution imposing or discontinuing the tax | ||||||
15 | hereunder or
effecting a change in the rate thereof shall be | ||||||
16 | adopted and a certified
copy thereof filed with the Department | ||||||
17 | on or before the first day of
October, whereupon the Department | ||||||
18 | shall proceed to administer and enforce
this Section as of the | ||||||
19 | first day of January next following such adoption
and filing.
| ||||||
20 | Beginning April 1, 1998, an ordinance or
resolution imposing or
| ||||||
21 | discontinuing the tax hereunder or effecting a change in the | ||||||
22 | rate thereof shall
either (i) be adopted and a certified copy | ||||||
23 | thereof filed with the Department on
or
before the first day of | ||||||
24 | April, whereupon the Department shall proceed to
administer and | ||||||
25 | enforce this Section as of the first day of July next following
| ||||||
26 | the adoption and filing; or (ii) be adopted and a certified |
| |||||||
| |||||||
1 | copy thereof filed
with the Department on or before the first | ||||||
2 | day of October, whereupon the
Department shall proceed to | ||||||
3 | administer and enforce this Section as of the first
day of | ||||||
4 | January next following the adoption and filing.
| ||||||
5 | When certifying the amount of a monthly disbursement to a | ||||||
6 | county under
this Section, the Department shall increase or | ||||||
7 | decrease such amount by an
amount necessary to offset any | ||||||
8 | misallocation of previous disbursements.
The offset amount | ||||||
9 | shall be the amount erroneously disbursed within the
previous 6 | ||||||
10 | months from the time a misallocation is discovered.
| ||||||
11 | This Section shall be known and may be cited as the Home | ||||||
12 | Rule County
Retailers' Occupation Tax Law.
| ||||||
13 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
14 | (55 ILCS 5/5-1006.5)
| ||||||
15 | Sec. 5-1006.5. Special County Retailers' Occupation Tax
| ||||||
16 | For Public Safety or Transportation.
| ||||||
17 | (a) The county board of any county may impose a
tax upon | ||||||
18 | all persons engaged in the business of selling tangible | ||||||
19 | personal
property, other than personal property titled or | ||||||
20 | registered with an agency of
this State's government, at retail | ||||||
21 | in the county on the gross receipts from the
sales made in the | ||||||
22 | course of business to provide revenue to be used exclusively
| ||||||
23 | for public safety or transportation purposes in that county, if | ||||||
24 | a
proposition for the
tax has been submitted to the electors of | ||||||
25 | that county and
approved by a majority of those voting on the |
| |||||||
| |||||||
1 | question. If imposed, this tax
shall be imposed only in | ||||||
2 | one-quarter percent increments. By resolution, the
county | ||||||
3 | board may order the proposition to be submitted at any | ||||||
4 | election.
If the tax is imposed for
transportation purposes for | ||||||
5 | expenditures for public highways or as
authorized
under the | ||||||
6 | Illinois Highway Code, the county board must publish notice
of | ||||||
7 | the existence of its long-range highway transportation
plan as | ||||||
8 | required or described in Section 5-301 of the Illinois
Highway | ||||||
9 | Code and must make the plan publicly available prior to
| ||||||
10 | approval of the ordinance or resolution
imposing the tax. If | ||||||
11 | the tax is imposed for transportation purposes for
expenditures | ||||||
12 | for passenger rail transportation, the county board must | ||||||
13 | publish
notice of the existence of its long-range passenger | ||||||
14 | rail transportation plan
and
must make the plan publicly | ||||||
15 | available prior to approval of the ordinance or
resolution | ||||||
16 | imposing the tax. The county clerk shall certify the
question | ||||||
17 | to the proper election authority, who
shall submit the | ||||||
18 | proposition at an election in accordance with the general
| ||||||
19 | election law.
| ||||||
20 | (1) The proposition for public safety purposes shall be | ||||||
21 | in
substantially the following form: | ||||||
22 | "To pay for public safety purposes, shall (name of | ||||||
23 | county) be authorized to impose an increase on its share of | ||||||
24 | local sales taxes by (insert rate)?" | ||||||
25 | As additional information on the ballot below the | ||||||
26 | question shall appear the following: |
| |||||||
| |||||||
1 | "This would mean that a consumer would pay an | ||||||
2 | additional (insert amount) in sales tax for every $100 of | ||||||
3 | tangible personal property bought at retail."
| ||||||
4 | The county board may also opt to establish a sunset | ||||||
5 | provision at which time the additional sales tax would | ||||||
6 | cease being collected, if not terminated earlier by a vote | ||||||
7 | of the county board. If the county board votes to include a | ||||||
8 | sunset provision, the proposition for public safety | ||||||
9 | purposes shall be in substantially the following form: | ||||||
10 | "To pay for public safety purposes, shall (name of | ||||||
11 | county) be authorized to impose an increase on its share of | ||||||
12 | local sales taxes by (insert rate) for a period not to | ||||||
13 | exceed (insert number of years)?" | ||||||
14 | As additional information on the ballot below the | ||||||
15 | question shall appear the following: | ||||||
16 | "This would mean that a consumer would pay an | ||||||
17 | additional (insert amount) in sales tax for every $100 of | ||||||
18 | tangible personal property bought at retail. If imposed, | ||||||
19 | the additional tax would cease being collected at the end | ||||||
20 | of (insert number of years), if not terminated earlier by a | ||||||
21 | vote of the county board."
| ||||||
22 | For the purposes of the
paragraph, "public safety | ||||||
23 | purposes" means
crime prevention, detention, fire | ||||||
24 | fighting, police, medical, ambulance, or
other emergency | ||||||
25 | services.
| ||||||
26 | Votes shall be recorded as "Yes" or "No".
|
| |||||||
| |||||||
1 | (2) The proposition for transportation purposes shall | ||||||
2 | be in
substantially
the following form: | ||||||
3 | "To pay for improvements to roads and other | ||||||
4 | transportation purposes, shall (name of county) be | ||||||
5 | authorized to impose an increase on its share of local | ||||||
6 | sales taxes by (insert rate)?" | ||||||
7 | As additional information on the ballot below the | ||||||
8 | question shall appear the following: | ||||||
9 | "This would mean that a consumer would pay an | ||||||
10 | additional (insert amount) in sales tax for every $100 of | ||||||
11 | tangible personal property bought at retail."
| ||||||
12 | The county board may also opt to establish a sunset | ||||||
13 | provision at which time the additional sales tax would | ||||||
14 | cease being collected, if not terminated earlier by a vote | ||||||
15 | of the county board. If the county board votes to include a | ||||||
16 | sunset provision, the proposition for transportation | ||||||
17 | purposes shall be in substantially the following form: | ||||||
18 | "To pay for road improvements and other transportation | ||||||
19 | purposes, shall (name of county) be authorized to impose an | ||||||
20 | increase on its share of local sales taxes by (insert rate) | ||||||
21 | for a period not to exceed (insert number of years)?" | ||||||
22 | As additional information on the ballot below the | ||||||
23 | question shall appear the following: | ||||||
24 | "This would mean that a consumer would pay an | ||||||
25 | additional (insert amount) in sales tax for every $100 of | ||||||
26 | tangible personal property bought at retail. If imposed, |
| |||||||
| |||||||
1 | the additional tax would cease being collected at the end | ||||||
2 | of (insert number of years), if not terminated earlier by a | ||||||
3 | vote of the county board."
| ||||||
4 | For the purposes of this paragraph, transportation | ||||||
5 | purposes means
construction, maintenance, operation, and | ||||||
6 | improvement of
public highways, any other purpose for which | ||||||
7 | a county may expend funds under
the Illinois Highway Code, | ||||||
8 | and passenger rail transportation.
| ||||||
9 | The votes shall be recorded as "Yes" or "No".
| ||||||
10 | If a majority of the electors voting on
the proposition | ||||||
11 | vote in favor of it, the county may impose the tax.
A county | ||||||
12 | may not submit more than one proposition authorized by this | ||||||
13 | Section
to the electors at any one time.
| ||||||
14 | This additional tax may not be imposed on the sales of food | ||||||
15 | for human
consumption that is to be consumed off the premises | ||||||
16 | where it is sold (other
than alcoholic beverages, soft drinks, | ||||||
17 | and food which has been prepared for
immediate consumption) and | ||||||
18 | prescription and non-prescription medicines, drugs,
medical | ||||||
19 | appliances , modifications to a motor vehicle for the purpose of | ||||||
20 | rendering it usable by a disabled person, and insulin, urine | ||||||
21 | testing materials, syringes, and needles
used by diabetics. The | ||||||
22 | tax imposed by a county under this Section and
all civil | ||||||
23 | penalties that may be assessed as an incident of the tax shall | ||||||
24 | be
collected and enforced by the Illinois Department of Revenue | ||||||
25 | and deposited
into a special fund created for that purpose. The | ||||||
26 | certificate
of registration that is issued by the Department to |
| |||||||
| |||||||
1 | a retailer under the
Retailers' Occupation Tax Act shall permit | ||||||
2 | the retailer to engage in a business
that is taxable without | ||||||
3 | registering separately with the Department under an
ordinance | ||||||
4 | or resolution under this Section. The Department has full
power | ||||||
5 | to administer and enforce this Section, to collect all taxes | ||||||
6 | and
penalties due under this Section, to dispose of taxes and | ||||||
7 | penalties so
collected in the manner provided in this Section, | ||||||
8 | and to determine
all rights to credit memoranda arising on | ||||||
9 | account of the erroneous payment of
a tax or penalty under this | ||||||
10 | Section. In the administration of and compliance
with this | ||||||
11 | Section, the Department and persons who are subject to this | ||||||
12 | Section
shall (i) have the same rights, remedies, privileges, | ||||||
13 | immunities, powers, and
duties, (ii) be subject to the same | ||||||
14 | conditions, restrictions, limitations,
penalties, and | ||||||
15 | definitions of terms, and (iii) employ the same modes of
| ||||||
16 | procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, | ||||||
17 | 1f,
1i, 1j,
1k, 1m, 1n,
2 through 2-70 (in respect to all | ||||||
18 | provisions contained in those Sections
other than the
State | ||||||
19 | rate of tax), 2a, 2b, 2c, 3 (except provisions
relating to
| ||||||
20 | transaction returns and quarter monthly payments), 4, 5, 5a, | ||||||
21 | 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | ||||||
22 | 9, 10, 11, 11a, 12, and 13 of the
Retailers' Occupation Tax Act | ||||||
23 | and Section 3-7 of the Uniform Penalty and
Interest Act as if | ||||||
24 | those provisions were set forth in this Section.
| ||||||
25 | Persons subject to any tax imposed under the authority | ||||||
26 | granted in this
Section may reimburse themselves for their |
| |||||||
| |||||||
1 | sellers' tax liability by
separately stating the tax as an | ||||||
2 | additional charge, which charge may be stated
in combination, | ||||||
3 | in a single amount, with State tax which sellers are required
| ||||||
4 | to collect under the Use Tax Act, pursuant to such bracketed | ||||||
5 | schedules as the
Department may prescribe.
| ||||||
6 | Whenever the Department determines that a refund should be | ||||||
7 | made under this
Section to a claimant instead of issuing a | ||||||
8 | credit memorandum, the Department
shall notify the State | ||||||
9 | Comptroller, who shall cause the order to be drawn for
the | ||||||
10 | amount specified and to the person named in the notification | ||||||
11 | from the
Department. The refund shall be paid by the State | ||||||
12 | Treasurer out of the County
Public Safety or Transportation | ||||||
13 | Retailers' Occupation Tax Fund.
| ||||||
14 | (b) If a tax has been imposed under subsection (a), a
| ||||||
15 | service occupation tax shall
also be imposed at the same rate | ||||||
16 | upon all persons engaged, in the county, in
the business
of | ||||||
17 | making sales of service, who, as an incident to making those | ||||||
18 | sales of
service, transfer tangible personal property within | ||||||
19 | the county
as an
incident to a sale of service.
This tax may | ||||||
20 | not be imposed on sales of food for human consumption that is | ||||||
21 | to
be consumed off the premises where it is sold (other than | ||||||
22 | alcoholic beverages,
soft drinks, and food prepared for | ||||||
23 | immediate consumption) and prescription and
non-prescription | ||||||
24 | medicines, drugs, medical appliances , modifications to a motor | ||||||
25 | vehicle for the purpose of rendering it usable by a disabled | ||||||
26 | person, and insulin, urine
testing materials, syringes, and |
| |||||||
| |||||||
1 | needles used by diabetics.
The tax imposed under this | ||||||
2 | subsection and all civil penalties that may be
assessed as an | ||||||
3 | incident thereof shall be collected and enforced by the
| ||||||
4 | Department of Revenue. The Department has
full power to
| ||||||
5 | administer and enforce this subsection; to collect all taxes | ||||||
6 | and penalties
due hereunder; to dispose of taxes and penalties | ||||||
7 | so collected in the manner
hereinafter provided; and to | ||||||
8 | determine all rights to credit memoranda
arising on account of | ||||||
9 | the erroneous payment of tax or penalty hereunder.
In the | ||||||
10 | administration of, and compliance with this subsection, the
| ||||||
11 | Department and persons who are subject to this paragraph shall | ||||||
12 | (i) have the
same rights, remedies, privileges, immunities, | ||||||
13 | powers, and duties, (ii) be
subject to the same conditions, | ||||||
14 | restrictions, limitations, penalties,
exclusions, exemptions, | ||||||
15 | and definitions of terms, and (iii) employ the same
modes
of | ||||||
16 | procedure as are prescribed in Sections 2 (except that the
| ||||||
17 | reference to State in the definition of supplier maintaining a | ||||||
18 | place of
business in this State shall mean the county), 2a, 2b, | ||||||
19 | 2c, 3 through
3-50 (in respect to all provisions therein other | ||||||
20 | than the State rate of
tax), 4 (except that the reference to | ||||||
21 | the State shall be to the county),
5, 7, 8 (except that the | ||||||
22 | jurisdiction to which the tax shall be a debt to
the extent | ||||||
23 | indicated in that Section 8 shall be the county), 9 (except as
| ||||||
24 | to the disposition of taxes and penalties collected), 10, 11, | ||||||
25 | 12 (except the reference therein to Section 2b of the
| ||||||
26 | Retailers' Occupation Tax Act), 13 (except that any reference |
| |||||||
| |||||||
1 | to the State
shall mean the county), Section 15, 16,
17, 18, 19 | ||||||
2 | and 20 of the Service Occupation Tax Act and Section 3-7 of
the | ||||||
3 | Uniform Penalty and Interest Act, as fully as if those | ||||||
4 | provisions were
set forth herein.
| ||||||
5 | Persons subject to any tax imposed under the authority | ||||||
6 | granted in
this subsection may reimburse themselves for their | ||||||
7 | serviceman's tax liability
by separately stating the tax as an | ||||||
8 | additional charge, which
charge may be stated in combination, | ||||||
9 | in a single amount, with State tax
that servicemen are | ||||||
10 | authorized to collect under the Service Use Tax Act, in
| ||||||
11 | accordance with such bracket schedules as the Department may | ||||||
12 | prescribe.
| ||||||
13 | Whenever the Department determines that a refund should be | ||||||
14 | made under this
subsection to a claimant instead of issuing a | ||||||
15 | credit memorandum, the Department
shall notify the State | ||||||
16 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
17 | amount specified, and to the person named, in the notification
| ||||||
18 | from the Department. The refund shall be paid by the State | ||||||
19 | Treasurer out
of the County Public Safety or Transportation | ||||||
20 | Retailers' Occupation Fund.
| ||||||
21 | Nothing in this subsection shall be construed to authorize | ||||||
22 | the county
to impose a tax upon the privilege of engaging in | ||||||
23 | any business which under
the Constitution of the United States | ||||||
24 | may not be made the subject of taxation
by the State.
| ||||||
25 | (c) The Department shall immediately pay over to the State | ||||||
26 | Treasurer, ex
officio,
as trustee, all taxes and penalties |
| |||||||
| |||||||
1 | collected under this Section to be
deposited into the County | ||||||
2 | Public Safety or Transportation Retailers'
Occupation Tax | ||||||
3 | Fund, which
shall be an unappropriated trust fund held outside | ||||||
4 | of the State treasury. On
or before the 25th
day of each | ||||||
5 | calendar month, the Department shall prepare and certify to the
| ||||||
6 | Comptroller the disbursement of stated sums of money
to the | ||||||
7 | counties from which retailers have paid
taxes or penalties to | ||||||
8 | the Department during the second preceding
calendar month. The | ||||||
9 | amount to be paid to each county, and deposited by the
county | ||||||
10 | into its special fund created for the purposes of this Section, | ||||||
11 | shall
be the amount (not
including credit memoranda) collected | ||||||
12 | under this Section during the second
preceding
calendar month | ||||||
13 | by the Department plus an amount the Department determines is
| ||||||
14 | necessary to offset any amounts that were erroneously paid to a | ||||||
15 | different
taxing body, and not including (i) an amount equal to | ||||||
16 | the amount of refunds
made
during the second preceding calendar | ||||||
17 | month by the Department on behalf of
the county and (ii) any | ||||||
18 | amount that the Department determines is
necessary to offset | ||||||
19 | any amounts that were payable to a different taxing body
but | ||||||
20 | were erroneously paid to the county. Within 10 days after | ||||||
21 | receipt by the
Comptroller of the disbursement certification to | ||||||
22 | the counties provided for in
this Section to be given to the | ||||||
23 | Comptroller by the Department, the Comptroller
shall cause the | ||||||
24 | orders to be drawn for the respective amounts in accordance
| ||||||
25 | with directions contained in the certification.
| ||||||
26 | In addition to the disbursement required by the preceding |
| |||||||
| |||||||
1 | paragraph, an
allocation shall be made in March of each year to | ||||||
2 | each county that received
more than $500,000 in disbursements | ||||||
3 | under the preceding paragraph in the
preceding calendar year. | ||||||
4 | The allocation shall be in an amount equal to the
average | ||||||
5 | monthly distribution made to each such county under the | ||||||
6 | preceding
paragraph during the preceding calendar year | ||||||
7 | (excluding the 2 months of
highest receipts). The distribution | ||||||
8 | made in March of each year subsequent to
the year in which an | ||||||
9 | allocation was made pursuant to this paragraph and the
| ||||||
10 | preceding paragraph shall be reduced by the amount allocated | ||||||
11 | and disbursed
under this paragraph in the preceding calendar | ||||||
12 | year. The Department shall
prepare and certify to the | ||||||
13 | Comptroller for disbursement the allocations made in
| ||||||
14 | accordance with this paragraph.
| ||||||
15 | (d) For the purpose of determining the local governmental | ||||||
16 | unit whose tax is
applicable, a retail sale by a producer of | ||||||
17 | coal or another mineral mined in
Illinois is a sale at retail | ||||||
18 | at the place where the coal or other mineral mined
in Illinois | ||||||
19 | is extracted from the earth. This paragraph does not apply to | ||||||
20 | coal
or another mineral when it is delivered or shipped by the | ||||||
21 | seller to the
purchaser
at a point outside Illinois so that the | ||||||
22 | sale is exempt under the United States
Constitution as a sale | ||||||
23 | in interstate or foreign commerce.
| ||||||
24 | (e) Nothing in this Section shall be construed to authorize | ||||||
25 | a county to
impose a
tax upon the privilege of engaging in any | ||||||
26 | business that under the Constitution
of the United States may |
| |||||||
| |||||||
1 | not be made the subject of taxation by this State.
| ||||||
2 | (e-5) If a county imposes a tax under this Section, the | ||||||
3 | county board may,
by ordinance, discontinue or lower the rate | ||||||
4 | of the tax. If the county board
lowers the tax rate or | ||||||
5 | discontinues the tax, a referendum must be
held in accordance | ||||||
6 | with subsection (a) of this Section in order to increase the
| ||||||
7 | rate of the tax or to reimpose the discontinued tax.
| ||||||
8 | (f) Beginning April 1, 1998, the results of any election | ||||||
9 | authorizing a
proposition to impose a tax
under this Section or | ||||||
10 | effecting a change in the rate of tax, or any ordinance
| ||||||
11 | lowering the rate or discontinuing the tax,
shall be certified
| ||||||
12 | by the
county clerk and filed with the Illinois Department of | ||||||
13 | Revenue
either (i) on or
before the first day of April, | ||||||
14 | whereupon the Department shall proceed to
administer and | ||||||
15 | enforce the tax as of the first day of July next following
the | ||||||
16 | filing; or (ii)
on or before the first day of October, | ||||||
17 | whereupon the
Department shall proceed to administer and | ||||||
18 | enforce the tax as of the first
day of January next following | ||||||
19 | the filing.
| ||||||
20 | (g) When certifying the amount of a monthly disbursement to | ||||||
21 | a county under
this
Section, the Department shall increase or | ||||||
22 | decrease the amounts by an amount
necessary to offset any | ||||||
23 | miscalculation of previous disbursements. The offset
amount | ||||||
24 | shall be the amount erroneously disbursed within the previous 6 | ||||||
25 | months
from the time a miscalculation is discovered.
| ||||||
26 | (h) This Section may be cited as the "Special County |
| |||||||
| |||||||
1 | Occupation Tax
For Public Safety or Transportation Law".
| ||||||
2 | (i) For purposes of this Section, "public safety" includes, | ||||||
3 | but is not
limited to, crime prevention, detention, fire | ||||||
4 | fighting, police, medical,
ambulance, or other emergency
| ||||||
5 | services. For the purposes of this Section, "transportation" | ||||||
6 | includes, but
is not limited to, the construction,
maintenance, | ||||||
7 | operation, and improvement of public highways, any other
| ||||||
8 | purpose for which a county may expend funds under the Illinois | ||||||
9 | Highway Code,
and passenger rail transportation.
| ||||||
10 | (Source: P.A. 94-781, eff. 5-19-06; 95-474, eff. 1-1-08.)
| ||||||
11 | (55 ILCS 5/5-1006.7) | ||||||
12 | Sec. 5-1006.7. School facility occupation taxes. | ||||||
13 | (a) The county board of any county may impose a tax upon | ||||||
14 | all persons engaged in the business of selling tangible | ||||||
15 | personal property, other than personal property titled or | ||||||
16 | registered with an agency of this State's government, at retail | ||||||
17 | in the county on the gross receipts from the sales made in the | ||||||
18 | course of business to provide revenue to be used exclusively | ||||||
19 | for school facility purposes if a proposition for the tax has | ||||||
20 | been submitted to the electors of that county and approved by a | ||||||
21 | majority of those voting on the question as provided in | ||||||
22 | subsection (c). The tax under this Section may be imposed only | ||||||
23 | in one-quarter percent increments and may not exceed 1%. | ||||||
24 | This additional tax may not be imposed on the sale of food | ||||||
25 | for human consumption that is to be consumed off the premises |
| |||||||
| |||||||
1 | where it is sold (other than alcoholic beverages, soft drinks, | ||||||
2 | and food that has been prepared for immediate consumption) and | ||||||
3 | prescription and non-prescription medicines, drugs, medical | ||||||
4 | appliances , modifications to a motor vehicle for the purpose of | ||||||
5 | rendering it usable by a disabled person, and insulin, urine | ||||||
6 | testing materials, syringes and needles used by diabetics.
The | ||||||
7 | Department of Revenue has full power to administer and enforce | ||||||
8 | this subsection, to collect all taxes and penalties due under | ||||||
9 | this subsection, to dispose of taxes and penalties so collected | ||||||
10 | in the manner provided in this subsection, and to determine all | ||||||
11 | rights to credit memoranda arising on account of the erroneous | ||||||
12 | payment of a tax or penalty under this subsection. The | ||||||
13 | Department shall deposit all taxes and penalties collected | ||||||
14 | under this subsection into a special fund created for that | ||||||
15 | purpose. | ||||||
16 | In the administration of and compliance with this | ||||||
17 | subsection, the Department and persons who are subject to this | ||||||
18 | subsection (i) have the same rights, remedies, privileges, | ||||||
19 | immunities, powers, and duties, (ii) are subject to the same | ||||||
20 | conditions, restrictions, limitations, penalties, and | ||||||
21 | definitions of terms, and (iii) shall employ the same modes of | ||||||
22 | procedure as are set forth in Sections 1 through 1o, 2 through | ||||||
23 | 2-70 (in respect to all provisions contained in those Sections | ||||||
24 | other than the State rate of tax), 2a through 2h, 3 (except as | ||||||
25 | to the disposition of taxes and penalties collected), 4, 5, 5a, | ||||||
26 | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, |
| |||||||
| |||||||
1 | 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | ||||||
2 | and all provisions of the Uniform Penalty and Interest Act as | ||||||
3 | if those provisions were set forth in this subsection. | ||||||
4 | The certificate of registration that is issued by the | ||||||
5 | Department to a retailer under the Retailers' Occupation Tax | ||||||
6 | Act permits the retailer to engage in a business that is | ||||||
7 | taxable without registering separately with the Department | ||||||
8 | under an ordinance or resolution under this subsection. | ||||||
9 | Persons subject to any tax imposed under the authority | ||||||
10 | granted in this subsection may reimburse themselves for their | ||||||
11 | seller's tax liability by separately stating that tax as an | ||||||
12 | additional charge, which may be stated in combination, in a | ||||||
13 | single amount, with State tax that sellers are required to | ||||||
14 | collect under the Use Tax Act, pursuant to any bracketed | ||||||
15 | schedules set forth by the Department. | ||||||
16 | (b) If a tax has been imposed under subsection (a), then a | ||||||
17 | service occupation tax must also be imposed at the same rate | ||||||
18 | upon all persons engaged, in the county, in the business of | ||||||
19 | making sales of service, who, as an incident to making those | ||||||
20 | sales of service, transfer tangible personal property within | ||||||
21 | the county as an incident to a sale of service. | ||||||
22 | This tax may not be imposed on sales of food for human | ||||||
23 | consumption that is to be consumed off the premises where it is | ||||||
24 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
25 | prepared for immediate consumption) and prescription and | ||||||
26 | non-prescription medicines, drugs, medical appliances , |
| |||||||
| |||||||
1 | modifications to a motor vehicle for the purpose of rendering | ||||||
2 | it usable by a disabled person, and insulin, urine testing | ||||||
3 | materials, syringes, and needles used by diabetics. | ||||||
4 | The tax imposed under this subsection and all civil | ||||||
5 | penalties that may be assessed as an incident thereof shall be | ||||||
6 | collected and enforced by the Department and deposited into a | ||||||
7 | special fund created for that purpose. The Department has full | ||||||
8 | power to administer and enforce this subsection, to collect all | ||||||
9 | taxes and penalties due under this subsection, to dispose of | ||||||
10 | taxes and penalties so collected in the manner provided in this | ||||||
11 | subsection, and to determine all rights to credit memoranda | ||||||
12 | arising on account of the erroneous payment of a tax or penalty | ||||||
13 | under this subsection. | ||||||
14 | In the administration of and compliance with this | ||||||
15 | subsection, the Department and persons who are subject to this | ||||||
16 | subsection shall (i) have the same rights, remedies, | ||||||
17 | privileges, immunities, powers and duties, (ii) be subject to | ||||||
18 | the same conditions, restrictions, limitations, penalties and | ||||||
19 | definition of terms, and (iii) employ the same modes of | ||||||
20 | procedure as are set forth in Sections 2 (except that that | ||||||
21 | reference to State in the definition of supplier maintaining a | ||||||
22 | place of business in this State means the county), 2a through | ||||||
23 | 2d, 3 through 3-50 (in respect to all provisions contained in | ||||||
24 | those Sections other than the State rate of tax), 4 (except | ||||||
25 | that the reference to the State shall be to the county), 5, 7, | ||||||
26 | 8 (except that the jurisdiction to which the tax is a debt to |
| |||||||
| |||||||
1 | the extent indicated in that Section 8 is the county), 9 | ||||||
2 | (except as to the disposition of taxes and penalties | ||||||
3 | collected), 10, 11, 12 (except the reference therein to Section | ||||||
4 | 2b of the Retailers' Occupation Tax Act), 13 (except that any | ||||||
5 | reference to the State means the county), Section 15, 16, 17, | ||||||
6 | 18, 19, and 20 of the Service Occupation Tax Act and all | ||||||
7 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
8 | if those provisions were set forth herein. | ||||||
9 | Persons subject to any tax imposed under the authority | ||||||
10 | granted in this subsection may reimburse themselves for their | ||||||
11 | serviceman's tax liability by separately stating the tax as an | ||||||
12 | additional charge, which may be stated in combination, in a | ||||||
13 | single amount, with State tax that servicemen are authorized to | ||||||
14 | collect under the Service Use Tax Act, pursuant to any | ||||||
15 | bracketed schedules set forth by the Department. | ||||||
16 | (c) The tax under this Section may not be imposed until, by | ||||||
17 | ordinance or resolution of the county board, the question of | ||||||
18 | imposing the tax has been submitted to the electors of the | ||||||
19 | county at a regular election and approved by a majority of the | ||||||
20 | electors voting on the question. Upon a resolution by the | ||||||
21 | county board or a resolution by school district boards that | ||||||
22 | represent at least 51% of the student enrollment within the | ||||||
23 | county, the county board must certify the question to the | ||||||
24 | proper election authority in accordance with the Election Code. | ||||||
25 | The election authority must submit the question in | ||||||
26 | substantially the following form: |
| |||||||
| |||||||
1 | Shall (name of county) be authorized to impose a | ||||||
2 | retailers' occupation tax and a service occupation tax | ||||||
3 | (commonly referred to as a "sales tax") at a rate of | ||||||
4 | (insert rate) to be used exclusively for school facility | ||||||
5 | purposes? | ||||||
6 | The election authority must record the votes as "Yes" or "No". | ||||||
7 | If a majority of the electors voting on the question vote | ||||||
8 | in the affirmative, then the county may, thereafter, impose the | ||||||
9 | tax. | ||||||
10 | For the purposes of this subsection (c), "enrollment" means | ||||||
11 | the head count of the students residing in the county on the | ||||||
12 | last school day of September of each year, which must be | ||||||
13 | reported on the Illinois State Board of Education Public School | ||||||
14 | Fall Enrollment/Housing Report.
| ||||||
15 | (d) The Department shall immediately pay over to the State | ||||||
16 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
17 | collected under this Section to be deposited into the School | ||||||
18 | Facility Occupation Tax Fund, which shall be an unappropriated | ||||||
19 | trust fund held outside the State treasury. | ||||||
20 | On or before the 25th day of each calendar month, the | ||||||
21 | Department shall prepare and certify to the Comptroller the | ||||||
22 | disbursement of stated sums of money to the regional | ||||||
23 | superintendents of schools in counties from which retailers or | ||||||
24 | servicemen have paid taxes or penalties to the Department | ||||||
25 | during the second preceding calendar month. The amount to be | ||||||
26 | paid to each regional superintendent of schools and disbursed |
| |||||||
| |||||||
1 | to him or her in accordance with 3-14.31 of the School Code, is | ||||||
2 | equal to the amount (not including credit memoranda) collected | ||||||
3 | from the county under this Section during the second preceding | ||||||
4 | calendar month by the Department, (i) less 2% of that amount, | ||||||
5 | which shall be deposited into the Tax Compliance and | ||||||
6 | Administration Fund and shall be used by the Department, | ||||||
7 | subject to appropriation, to cover the costs of the Department | ||||||
8 | in administering and enforcing the provisions of this Section, | ||||||
9 | on behalf of the county, (ii) plus an amount that the | ||||||
10 | Department determines is necessary to offset any amounts that | ||||||
11 | were erroneously paid to a different taxing body; (iii) less an | ||||||
12 | amount equal to the amount of refunds made during the second | ||||||
13 | preceding calendar month by the Department on behalf of the | ||||||
14 | county; and (iv) less any amount that the Department determines | ||||||
15 | is necessary to offset any amounts that were payable to a | ||||||
16 | different taxing body but were erroneously paid to the county. | ||||||
17 | When certifying the amount of a monthly disbursement to a | ||||||
18 | regional superintendent of schools under this Section, the | ||||||
19 | Department shall increase or decrease the amounts by an amount | ||||||
20 | necessary to offset any miscalculation of previous | ||||||
21 | disbursements within the previous 6 months from the time a | ||||||
22 | miscalculation is discovered. | ||||||
23 | Within 10 days after receipt by the Comptroller from the | ||||||
24 | Department of the disbursement certification to the regional | ||||||
25 | superintendents of the schools provided for in this Section, | ||||||
26 | the Comptroller shall cause the orders to be drawn for the |
| |||||||
| |||||||
1 | respective amounts in accordance with directions contained in | ||||||
2 | the certification. | ||||||
3 | If the Department determines that a refund should be made | ||||||
4 | under this Section to a claimant instead of issuing a credit | ||||||
5 | memorandum, then the Department shall notify the Comptroller, | ||||||
6 | who shall cause the order to be drawn for the amount specified | ||||||
7 | and to the person named in the notification from the | ||||||
8 | Department. The refund shall be paid by the Treasurer out of | ||||||
9 | the School Facility Occupation Tax Fund.
| ||||||
10 | (e) For the purposes of determining the local governmental | ||||||
11 | unit whose tax is applicable, a retail sale by a producer of | ||||||
12 | coal or another mineral mined in Illinois is a sale at retail | ||||||
13 | at the place where the coal or other mineral mined in Illinois | ||||||
14 | is extracted from the earth. This subsection does not apply to | ||||||
15 | coal or another mineral when it is delivered or shipped by the | ||||||
16 | seller to the purchaser at a point outside Illinois so that the | ||||||
17 | sale is exempt under the United States Constitution as a sale | ||||||
18 | in interstate or foreign commerce. | ||||||
19 | (f) Nothing in this Section may be construed to authorize a | ||||||
20 | county board to impose a tax upon the privilege of engaging in | ||||||
21 | any business that under the Constitution of the United States | ||||||
22 | may not be made the subject of taxation by this State. | ||||||
23 | (g) If a county board imposes a tax under this Section, | ||||||
24 | then the board may, by ordinance, discontinue or reduce the | ||||||
25 | rate of the tax. If, however, a school board issues bonds that | ||||||
26 | are backed by the proceeds of the tax under this Section, then |
| |||||||
| |||||||
1 | the county board may not reduce the tax rate or discontinue the | ||||||
2 | tax if that rate reduction or discontinuance would inhibit the | ||||||
3 | school board's ability to pay the principal and interest on | ||||||
4 | those bonds as they become due. If the county board reduces the | ||||||
5 | tax rate or discontinues the tax, then a referendum must be | ||||||
6 | held in accordance with subsection (c) of this Section in order | ||||||
7 | to increase the rate of the tax or to reimpose the discontinued | ||||||
8 | tax. | ||||||
9 | The results of any election that authorizes a proposition | ||||||
10 | to impose a tax under this Section or to change the rate of the | ||||||
11 | tax along with an ordinance imposing the tax, or any ordinance | ||||||
12 | that lowers the rate or discontinues the tax, must be certified | ||||||
13 | by the county clerk and filed with the Illinois Department of | ||||||
14 | Revenue either (i) on or before the first day of April, | ||||||
15 | whereupon the Department shall proceed to administer and | ||||||
16 | enforce the tax or change in the rate as of the first day of | ||||||
17 | July next following the filing; or (ii) on or before the first | ||||||
18 | day of October, whereupon the Department shall proceed to | ||||||
19 | administer and enforce the tax or change in the rate as of the | ||||||
20 | first day of January next following the filing. | ||||||
21 | (h) For purposes of this Section, "school facility | ||||||
22 | purposes" means the acquisition, development, construction, | ||||||
23 | reconstruction, rehabilitation, improvement, financing, | ||||||
24 | architectural planning, and installation of capital facilities | ||||||
25 | consisting of buildings, structures, and durable equipment and | ||||||
26 | for the acquisition and improvement of real property and |
| |||||||
| |||||||
1 | interest in real property required, or expected to be required, | ||||||
2 | in connection with the capital facilities. "School-facility | ||||||
3 | purposes" also includes fire prevention, safety, energy | ||||||
4 | conservation, disabled accessibility, school security, and | ||||||
5 | specified repair purposes set forth under Section 17-2.11 of | ||||||
6 | the School Code. | ||||||
7 | (i) This Section does not apply to Cook County. | ||||||
8 | (j) This Section may be cited as the County School Facility | ||||||
9 | Occupation Tax Law.
| ||||||
10 | (Source: P.A. 95-675, eff. 10-11-07.)
| ||||||
11 | (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
| ||||||
12 | Sec. 5-1007. Home Rule County Service Occupation Tax Law. | ||||||
13 | The corporate
authorities of a home rule county may impose a | ||||||
14 | tax upon all persons
engaged, in such county, in the business | ||||||
15 | of making sales of service at the
same rate of tax imposed | ||||||
16 | pursuant to Section 5-1006 of the selling price of
all tangible | ||||||
17 | personal property transferred by such servicemen either in the
| ||||||
18 | form of tangible personal property or in the form of real | ||||||
19 | estate as an
incident to a sale of service. If imposed, such | ||||||
20 | tax shall only be imposed
in 1/4% increments. On and after | ||||||
21 | September 1, 1991, this additional tax may
not be imposed on | ||||||
22 | the sales of food for human consumption which is to be
consumed | ||||||
23 | off the premises where it is sold (other than alcoholic | ||||||
24 | beverages,
soft drinks and food which has been prepared for | ||||||
25 | immediate consumption) and
prescription and nonprescription |
| |||||||
| |||||||
1 | medicines, drugs, medical appliances , modifications to a motor | ||||||
2 | vehicle for the purpose of rendering it usable by a disabled | ||||||
3 | person, and
insulin, urine testing materials, syringes and | ||||||
4 | needles used by diabetics.
The tax imposed by a home rule | ||||||
5 | county pursuant to this Section and all
civil penalties that | ||||||
6 | may be assessed as an incident thereof shall be
collected and | ||||||
7 | enforced by the State Department of Revenue. The certificate
of | ||||||
8 | registration which is issued by the Department to a retailer | ||||||
9 | under the
Retailers' Occupation Tax Act or under the Service | ||||||
10 | Occupation Tax Act shall
permit such registrant to engage in a | ||||||
11 | business which is taxable under any
ordinance or resolution | ||||||
12 | enacted pursuant to this Section without
registering | ||||||
13 | separately with the Department under such ordinance or
| ||||||
14 | resolution or under this Section. The Department shall have | ||||||
15 | full power
to administer and enforce this Section; to collect | ||||||
16 | all taxes and
penalties due hereunder; to dispose of taxes and | ||||||
17 | penalties so collected
in the manner hereinafter provided; and | ||||||
18 | to determine all rights to
credit memoranda arising on account | ||||||
19 | of the erroneous payment of tax or
penalty hereunder. In the | ||||||
20 | administration of, and compliance with, this
Section the | ||||||
21 | Department and persons who are subject to this Section
shall | ||||||
22 | have the same rights, remedies, privileges, immunities, powers | ||||||
23 | and
duties, and be subject to the same conditions, | ||||||
24 | restrictions,
limitations, penalties and definitions of terms, | ||||||
25 | and employ the same
modes of procedure, as are prescribed in | ||||||
26 | Sections 1a-1, 2, 2a, 3 through
3-50 (in respect to all |
| |||||||
| |||||||
1 | provisions therein other than the State rate of
tax), 4 (except | ||||||
2 | that the reference to the State shall be to the taxing
county), | ||||||
3 | 5, 7, 8 (except that the jurisdiction to which the tax shall be | ||||||
4 | a
debt to the extent indicated in that Section 8 shall be the | ||||||
5 | taxing county),
9 (except as to the disposition of taxes and | ||||||
6 | penalties collected, and
except that the returned merchandise | ||||||
7 | credit for this county tax may not be
taken against any State | ||||||
8 | tax), 10, 11, 12 (except the reference therein to
Section 2b of | ||||||
9 | the Retailers' Occupation Tax Act), 13 (except that any
| ||||||
10 | reference to the State shall mean the taxing county), the first | ||||||
11 | paragraph
of Section 15, 16, 17, 18, 19 and 20 of the Service | ||||||
12 | Occupation Tax
Act and Section 3-7 of the Uniform Penalty and | ||||||
13 | Interest Act, as fully as if
those provisions were set forth | ||||||
14 | herein.
| ||||||
15 | No tax may be imposed by a home rule county pursuant to | ||||||
16 | this Section
unless such county also imposes a tax at the same | ||||||
17 | rate pursuant to Section
5-1006.
| ||||||
18 | Persons subject to any tax imposed pursuant to the | ||||||
19 | authority granted
in this Section may reimburse themselves for | ||||||
20 | their serviceman's tax
liability hereunder by separately | ||||||
21 | stating such tax as an additional
charge, which charge may be | ||||||
22 | stated in combination, in a single amount,
with State tax which | ||||||
23 | servicemen are authorized to collect under the
Service Use Tax | ||||||
24 | Act, pursuant to such bracket schedules as the
Department may | ||||||
25 | prescribe.
| ||||||
26 | Whenever the Department determines that a refund should be |
| |||||||
| |||||||
1 | made under
this Section to a claimant instead of issuing credit | ||||||
2 | memorandum, the
Department shall notify the State Comptroller, | ||||||
3 | who shall cause the
order to be drawn for the amount specified, | ||||||
4 | and to the person named,
in such notification from the | ||||||
5 | Department. Such refund shall be paid by
the State Treasurer | ||||||
6 | out of the home rule county retailers' occupation tax fund.
| ||||||
7 | The Department shall forthwith pay over to the State | ||||||
8 | Treasurer,
ex-officio, as trustee, all taxes and penalties | ||||||
9 | collected hereunder. On
or before the 25th day of each calendar | ||||||
10 | month, the Department shall
prepare and certify to the | ||||||
11 | Comptroller the disbursement of stated sums
of money to named | ||||||
12 | counties, the counties to be those from
which suppliers and | ||||||
13 | servicemen have paid taxes or penalties hereunder to
the | ||||||
14 | Department during the second preceding calendar month. The | ||||||
15 | amount
to be paid to each county shall be the amount (not | ||||||
16 | including credit
memoranda) collected hereunder during the | ||||||
17 | second preceding calendar
month by the Department, and not | ||||||
18 | including an amount equal to the amount
of refunds made during | ||||||
19 | the second preceding calendar month by the
Department on behalf | ||||||
20 | of such county. Within 10 days after receipt, by the
| ||||||
21 | Comptroller, of the disbursement certification to the counties | ||||||
22 | provided for
in this Section to be given to the Comptroller by | ||||||
23 | the Department, the
Comptroller shall cause the orders to be | ||||||
24 | drawn for the respective amounts
in accordance with the | ||||||
25 | directions contained in such certification.
| ||||||
26 | In addition to the disbursement required by the preceding |
| |||||||
| |||||||
1 | paragraph, an
allocation shall be made in each year to each | ||||||
2 | county which received more
than $500,000 in disbursements under | ||||||
3 | the preceding paragraph in the
preceding calendar year. The | ||||||
4 | allocation shall be in an amount equal to the
average monthly | ||||||
5 | distribution made to each such county under the preceding
| ||||||
6 | paragraph during the preceding calendar year (excluding the 2 | ||||||
7 | months of
highest receipts). The distribution made in March of | ||||||
8 | each year
subsequent to the year in which an allocation was | ||||||
9 | made pursuant to this
paragraph and the preceding paragraph | ||||||
10 | shall be reduced by the
amount allocated and disbursed under | ||||||
11 | this paragraph in the preceding
calendar year. The Department | ||||||
12 | shall prepare and certify to the Comptroller
for disbursement | ||||||
13 | the allocations made in accordance with this paragraph.
| ||||||
14 | Nothing in this Section shall be construed to authorize a
| ||||||
15 | county to impose a tax upon the privilege of engaging in any
| ||||||
16 | business which under the Constitution of the United States may | ||||||
17 | not be
made the subject of taxation by this State.
| ||||||
18 | An ordinance or resolution imposing or discontinuing a tax | ||||||
19 | hereunder or
effecting a change in the rate thereof shall be | ||||||
20 | adopted and a certified
copy thereof filed with the Department | ||||||
21 | on or before the first day of June,
whereupon the Department | ||||||
22 | shall proceed to administer and enforce this
Section as of the | ||||||
23 | first day of September next following such adoption and
filing. | ||||||
24 | Beginning January 1, 1992, an ordinance or resolution imposing
| ||||||
25 | or discontinuing the tax hereunder or effecting a change in the | ||||||
26 | rate
thereof shall be adopted and a certified copy thereof |
| |||||||
| |||||||
1 | filed with the
Department on or before the first day of July, | ||||||
2 | whereupon the Department
shall proceed to administer and | ||||||
3 | enforce this Section as of the first day of
October next | ||||||
4 | following such adoption and filing.
Beginning January 1, 1993, | ||||||
5 | an ordinance or resolution imposing or
discontinuing the tax | ||||||
6 | hereunder or effecting a change in the rate thereof
shall be | ||||||
7 | adopted and a certified copy thereof filed with the Department | ||||||
8 | on
or before the first day of October, whereupon the Department | ||||||
9 | shall proceed
to administer and enforce this Section as of the | ||||||
10 | first day of January next
following such adoption and filing.
| ||||||
11 | Beginning April 1, 1998, an ordinance or
resolution imposing or
| ||||||
12 | discontinuing the tax hereunder or effecting a change in the | ||||||
13 | rate thereof shall
either (i) be adopted and a certified copy | ||||||
14 | thereof filed with the Department on
or
before the first day of | ||||||
15 | April, whereupon the Department shall proceed to
administer and | ||||||
16 | enforce this Section as of the first day of July next following
| ||||||
17 | the adoption and filing; or (ii) be adopted and a certified | ||||||
18 | copy thereof filed
with the Department on or before the first | ||||||
19 | day of October, whereupon the
Department shall proceed to | ||||||
20 | administer and enforce this Section as of the first
day of | ||||||
21 | January next following the adoption and filing.
| ||||||
22 | This Section shall be known and may be cited as the Home | ||||||
23 | Rule County
Service Occupation Tax Law.
| ||||||
24 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
25 | (55 ILCS 5/5-1035 rep.)
|
| |||||||
| |||||||
1 | Section 40. The Counties Code is amended by repealing | ||||||
2 | Section 5-1035. | ||||||
3 | Section 45. The Illinois Municipal Code is amended by | ||||||
4 | changing Sections 8-11-1, 8-11-1.1, 8-11-1.3, 8-11-1.4, | ||||||
5 | 8-11-5, and 11-74.3-6 as follows:
| ||||||
6 | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
| ||||||
7 | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | ||||||
8 | Act. The
corporate authorities of a home rule municipality may
| ||||||
9 | impose a tax upon all persons engaged in the business of | ||||||
10 | selling tangible
personal property, other than an item of | ||||||
11 | tangible personal property titled
or registered with an agency | ||||||
12 | of this State's government, at retail in the
municipality on | ||||||
13 | the gross receipts from these sales made in
the course of such | ||||||
14 | business. If imposed, the tax shall only
be imposed in 1/4% | ||||||
15 | increments. On and after September 1, 1991, this
additional tax | ||||||
16 | may not be imposed on the sales of food for human
consumption | ||||||
17 | that is to be consumed off the premises where it
is sold (other | ||||||
18 | than alcoholic beverages, soft drinks and food that has
been | ||||||
19 | prepared for immediate consumption) and prescription and
| ||||||
20 | nonprescription medicines, drugs, medical appliances , | ||||||
21 | modifications to a motor vehicle for the purpose of rendering | ||||||
22 | it usable by a disabled person, and insulin, urine
testing | ||||||
23 | materials, syringes and needles used by diabetics. The tax | ||||||
24 | imposed
by a home rule municipality under this Section and all
|
| |||||||
| |||||||
1 | civil penalties that may be assessed as an incident of the tax | ||||||
2 | shall
be collected and enforced by the State Department of
| ||||||
3 | Revenue. The certificate of registration that is issued by
the | ||||||
4 | Department to a retailer under the Retailers' Occupation Tax | ||||||
5 | Act
shall permit the retailer to engage in a business that is | ||||||
6 | taxable
under any ordinance or resolution enacted pursuant to
| ||||||
7 | this Section without registering separately with the | ||||||
8 | Department under such
ordinance or resolution or under this | ||||||
9 | Section. The Department shall have
full power to administer and | ||||||
10 | enforce this Section; to collect all taxes and
penalties due | ||||||
11 | hereunder; to dispose of taxes and penalties so collected in
| ||||||
12 | the manner hereinafter provided; and to determine all rights to
| ||||||
13 | credit memoranda arising on account of the erroneous payment of | ||||||
14 | tax or
penalty hereunder. In the administration of, and | ||||||
15 | compliance with, this
Section the Department and persons who | ||||||
16 | are subject to this Section shall
have the same rights, | ||||||
17 | remedies, privileges, immunities, powers and duties,
and be | ||||||
18 | subject to the same conditions, restrictions, limitations, | ||||||
19 | penalties
and definitions of terms, and employ the same modes | ||||||
20 | of procedure, as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, | ||||||
21 | 1i, 1j, 1k, 1m, 1n, 2 through
2-65 (in
respect to all | ||||||
22 | provisions therein other than the State rate of tax), 2c, 3
| ||||||
23 | (except as to the disposition of taxes and penalties | ||||||
24 | collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, | ||||||
25 | 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
12 and 13 of the Retailers' | ||||||
26 | Occupation Tax Act and Section 3-7 of the
Uniform Penalty and |
| |||||||
| |||||||
1 | Interest Act, as fully as if those provisions were
set forth | ||||||
2 | herein.
| ||||||
3 | No tax may be imposed by a home rule municipality under | ||||||
4 | this Section
unless the municipality also imposes a tax at the | ||||||
5 | same rate under Section
8-11-5 of this Act.
| ||||||
6 | Persons subject to any tax imposed under the authority | ||||||
7 | granted in this
Section may reimburse themselves for their | ||||||
8 | seller's tax liability hereunder
by separately stating that tax | ||||||
9 | as an additional charge, which charge may be
stated in | ||||||
10 | combination, in a single amount, with State tax which sellers | ||||||
11 | are
required to collect under the Use Tax Act, pursuant to such | ||||||
12 | bracket
schedules as the Department may prescribe.
| ||||||
13 | Whenever the Department determines that a refund should be | ||||||
14 | made under
this Section to a claimant instead of issuing a | ||||||
15 | credit memorandum, the
Department shall notify the State | ||||||
16 | Comptroller, who shall cause the
order to be drawn for the | ||||||
17 | amount specified and to the person named
in the notification | ||||||
18 | from the Department. The refund shall be paid by the
State | ||||||
19 | Treasurer out of the home rule municipal retailers' occupation | ||||||
20 | tax fund.
| ||||||
21 | The Department shall immediately pay over to the State
| ||||||
22 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
23 | collected
hereunder. On or before the 25th day of each calendar | ||||||
24 | month, the
Department shall prepare and certify to the | ||||||
25 | Comptroller the disbursement of
stated sums of money to named | ||||||
26 | municipalities, the municipalities to be
those from which |
| |||||||
| |||||||
1 | retailers have paid taxes or penalties hereunder to the
| ||||||
2 | Department during the second preceding calendar month. The | ||||||
3 | amount to be
paid to each municipality shall be the amount (not | ||||||
4 | including credit
memoranda) collected hereunder during the | ||||||
5 | second preceding calendar month
by the Department plus an | ||||||
6 | amount the Department determines is necessary to
offset any | ||||||
7 | amounts that were erroneously paid to a different
taxing body, | ||||||
8 | and not including an amount equal to the amount of refunds
made | ||||||
9 | during the second preceding calendar month by the Department on
| ||||||
10 | behalf of such municipality, and not including any amount that | ||||||
11 | the Department
determines is necessary to offset any amounts | ||||||
12 | that were payable to a
different taxing body but were | ||||||
13 | erroneously paid to the municipality. Within
10 days after | ||||||
14 | receipt by the Comptroller of the disbursement certification
to | ||||||
15 | the municipalities provided for in this Section to be given to | ||||||
16 | the
Comptroller by the Department, the Comptroller shall cause | ||||||
17 | the orders to be
drawn for the respective amounts in accordance | ||||||
18 | with the directions
contained in the certification.
| ||||||
19 | In addition to the disbursement required by the preceding | ||||||
20 | paragraph and
in order to mitigate delays caused by | ||||||
21 | distribution procedures, an
allocation shall, if requested, be | ||||||
22 | made within 10 days after January 14,
1991, and in November of | ||||||
23 | 1991 and each year thereafter, to each
municipality that | ||||||
24 | received more than $500,000 during the preceding fiscal
year, | ||||||
25 | (July 1 through June 30) whether collected by the municipality | ||||||
26 | or
disbursed by the Department as required by this Section. |
| |||||||
| |||||||
1 | Within 10 days
after January 14, 1991, participating | ||||||
2 | municipalities shall notify the
Department in writing of their | ||||||
3 | intent to participate. In addition, for the
initial | ||||||
4 | distribution, participating municipalities shall certify to | ||||||
5 | the
Department the amounts collected by the municipality for | ||||||
6 | each month under
its home rule occupation and service | ||||||
7 | occupation tax during the period July
1, 1989 through June 30, | ||||||
8 | 1990. The allocation within 10 days after January
14, 1991, | ||||||
9 | shall be in an amount equal to the monthly average of these
| ||||||
10 | amounts, excluding the 2 months of highest receipts. The | ||||||
11 | monthly average
for the period of July 1, 1990 through June 30, | ||||||
12 | 1991 will be determined as
follows: the amounts collected by | ||||||
13 | the municipality under its home rule
occupation and service | ||||||
14 | occupation tax during the period of July 1, 1990
through | ||||||
15 | September 30, 1990, plus amounts collected by the Department | ||||||
16 | and
paid to such municipality through June 30, 1991, excluding | ||||||
17 | the 2 months of
highest receipts. The monthly average for each | ||||||
18 | subsequent period of July 1
through June 30 shall be an amount | ||||||
19 | equal to the monthly distribution made
to each such | ||||||
20 | municipality under the preceding paragraph during this period,
| ||||||
21 | excluding the 2 months of highest receipts. The distribution | ||||||
22 | made in
November 1991 and each year thereafter under this | ||||||
23 | paragraph and the
preceding paragraph shall be reduced by the | ||||||
24 | amount allocated and disbursed
under this paragraph in the | ||||||
25 | preceding period of July 1 through June 30.
The Department | ||||||
26 | shall prepare and certify to the Comptroller for
disbursement |
| |||||||
| |||||||
1 | the allocations made in accordance with this paragraph.
| ||||||
2 | For the purpose of determining the local governmental unit | ||||||
3 | whose tax
is applicable, a retail sale by a producer of coal or | ||||||
4 | other mineral
mined in Illinois is a sale at retail at the | ||||||
5 | place where the coal or
other mineral mined in Illinois is | ||||||
6 | extracted from the earth. This
paragraph does not apply to coal | ||||||
7 | or other mineral when it is delivered
or shipped by the seller | ||||||
8 | to the purchaser at a point outside Illinois so
that the sale | ||||||
9 | is exempt under the United States Constitution as a sale in
| ||||||
10 | interstate or foreign commerce.
| ||||||
11 | Nothing in this Section shall be construed to authorize a
| ||||||
12 | municipality to impose a tax upon the privilege of engaging in | ||||||
13 | any
business which under the Constitution of the United States | ||||||
14 | may not be
made the subject of taxation by this State.
| ||||||
15 | An ordinance or resolution imposing or discontinuing a tax | ||||||
16 | hereunder or
effecting a change in the rate thereof shall be | ||||||
17 | adopted and a certified
copy thereof filed with the Department | ||||||
18 | on or before the first day of June,
whereupon the Department | ||||||
19 | shall proceed to administer and enforce this
Section as of the | ||||||
20 | first day of September next following the
adoption and filing. | ||||||
21 | Beginning January 1, 1992, an ordinance or resolution
imposing | ||||||
22 | or discontinuing the tax hereunder or effecting a change in the
| ||||||
23 | rate thereof shall be adopted and a certified copy thereof | ||||||
24 | filed with the
Department on or before the first day of July, | ||||||
25 | whereupon the Department
shall proceed to administer and | ||||||
26 | enforce this Section as of the first day of
October next |
| |||||||
| |||||||
1 | following such adoption and filing. Beginning January 1, 1993,
| ||||||
2 | an ordinance or resolution imposing or discontinuing the tax | ||||||
3 | hereunder or
effecting a change in the rate thereof shall be | ||||||
4 | adopted and a certified
copy thereof filed with the Department | ||||||
5 | on or before the first day of
October, whereupon the Department | ||||||
6 | shall proceed to administer and enforce
this Section as of the | ||||||
7 | first day of January next following the
adoption and filing.
| ||||||
8 | However, a municipality located in a county with a population | ||||||
9 | in excess of
3,000,000 that elected to become a home rule unit | ||||||
10 | at the general primary
election in
1994 may adopt an ordinance | ||||||
11 | or resolution imposing the tax under this Section
and file a | ||||||
12 | certified copy of the ordinance or resolution with the | ||||||
13 | Department on
or before July 1, 1994. The Department shall then | ||||||
14 | proceed to administer and
enforce this Section as of October 1, | ||||||
15 | 1994.
Beginning April 1, 1998, an ordinance or
resolution | ||||||
16 | imposing or
discontinuing the tax hereunder or effecting a | ||||||
17 | change in the rate thereof shall
either (i) be adopted and a | ||||||
18 | certified copy thereof filed with the Department on
or
before | ||||||
19 | the first day of April, whereupon the Department shall proceed | ||||||
20 | to
administer and enforce this Section as of the first day of | ||||||
21 | July next following
the adoption and filing; or (ii) be adopted | ||||||
22 | and a certified copy thereof filed
with the Department on or | ||||||
23 | before the first day of October, whereupon the
Department shall | ||||||
24 | proceed to administer and enforce this Section as of the first
| ||||||
25 | day of January next following the adoption and filing.
| ||||||
26 | When certifying the amount of a monthly disbursement to a |
| |||||||
| |||||||
1 | municipality
under this Section, the Department shall increase | ||||||
2 | or decrease the amount by
an amount necessary to offset any | ||||||
3 | misallocation of previous disbursements.
The offset amount | ||||||
4 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
5 | months from the time a misallocation is discovered.
| ||||||
6 | Any unobligated balance remaining in the Municipal | ||||||
7 | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | ||||||
8 | was abolished by Public Act
85-1135, and all receipts of | ||||||
9 | municipal tax as a result of audits of
liability periods prior | ||||||
10 | to January 1, 1990, shall be paid into the Local
Government Tax | ||||||
11 | Fund for distribution as provided by this Section prior to
the | ||||||
12 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
13 | as a
result of an assessment not arising from an audit, for | ||||||
14 | liability periods
prior to January 1, 1990, shall be paid into | ||||||
15 | the Local Government Tax Fund
for distribution before July 1, | ||||||
16 | 1990, as provided by this Section prior to
the enactment of | ||||||
17 | Public Act 85-1135; and on and after July 1,
1990, all such | ||||||
18 | receipts shall be distributed as provided in Section
6z-18 of | ||||||
19 | the State Finance Act.
| ||||||
20 | As used in this Section, "municipal" and "municipality" | ||||||
21 | means a city,
village or incorporated town, including an | ||||||
22 | incorporated town that has
superseded a civil township.
| ||||||
23 | This Section shall be known and may be cited as the Home | ||||||
24 | Rule Municipal
Retailers' Occupation Tax Act.
| ||||||
25 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
|
| |||||||
| |||||||
1 | (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
| ||||||
2 | Sec. 8-11-1.1. Non-home rule municipalities; imposition of | ||||||
3 | taxes.
| ||||||
4 | (a) The corporate authorities of a non-home rule
| ||||||
5 | municipality
may, upon approval of the electors of the | ||||||
6 | municipality pursuant to
subsection (b) of this Section, impose | ||||||
7 | by ordinance or resolution the tax authorized in Sections | ||||||
8 | 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
| ||||||
9 | (b) The corporate authorities of the municipality may by | ||||||
10 | ordinance or
resolution call for the submission to the electors | ||||||
11 | of the municipality
the question of whether the municipality | ||||||
12 | shall impose such tax. Such
question shall be certified by the | ||||||
13 | municipal clerk to the election
authority in accordance with | ||||||
14 | Section 28-5 of the Election Code and shall be
in a form in | ||||||
15 | accordance with Section 16-7 of the Election Code.
| ||||||
16 | The proposition for the imposition of the non-home rule | ||||||
17 | municipal retailers' occupation tax and non-home rule | ||||||
18 | municipal service occupation tax shall be in substantially the | ||||||
19 | following form: | ||||||
20 | "Shall (insert name of municipality) impose a Non-Home | ||||||
21 | Rule Municipal Retailers' Occupation Tax and Non-Home Rule | ||||||
22 | Municipal Service Occupation Tax at the rate of (insert | ||||||
23 | rate) to be used by the municipality (choose one: [for | ||||||
24 | expenditure on public infrastructure] [for property tax | ||||||
25 | relief] [for expenditure on public infrastructure and for | ||||||
26 | property tax relief]) as provided in Sections 8-11-1.1, |
| |||||||
| |||||||
1 | 8-11-1.2, 8-11-1.3, and 8-11-1.4 of the Illinois Municipal | ||||||
2 | Code?" | ||||||
3 | The votes shall be recorded as "Yes" or "No". | ||||||
4 | If, in addition to the non-home rule municipal retailers' | ||||||
5 | occupation tax and non-home rule municipal service occupation | ||||||
6 | tax, a municipality opts to impose a non-home rule municipal | ||||||
7 | use tax on titled or registered vehicles as provided in Section | ||||||
8 | 8-11-1.5, which tax must be administered and collected by the | ||||||
9 | municipality itself, the proposition above shall also include a | ||||||
10 | reference to the Non-Home Rule Municipal Use Tax and a | ||||||
11 | reference to Section 8-11-1.5 of the Illinois Municipal Code. | ||||||
12 | If a majority of the electors in the municipality voting | ||||||
13 | upon the
question vote in the affirmative, such tax shall be | ||||||
14 | imposed.
| ||||||
15 | An ordinance or resolution imposing the tax of not more | ||||||
16 | than 1% hereunder or
discontinuing the same shall be adopted | ||||||
17 | and a certified copy thereof,
together with a certification | ||||||
18 | that the ordinance or resolution received
referendum approval | ||||||
19 | in the case of the imposition of such tax, filed with
the | ||||||
20 | Department of Revenue, on or before the first day of June, | ||||||
21 | whereupon
the Department shall proceed to administer and | ||||||
22 | enforce
the additional tax or to discontinue the tax, as the | ||||||
23 | case may be, as of the
first day of September next following | ||||||
24 | such adoption and filing.
Beginning January 1, 1992, an | ||||||
25 | ordinance or resolution imposing
or discontinuing the tax | ||||||
26 | hereunder shall be adopted and a certified copy
thereof filed |
| |||||||
| |||||||
1 | with the Department on or before the first day of July,
| ||||||
2 | whereupon the Department shall proceed to administer and | ||||||
3 | enforce this
Section as of the first day of October next | ||||||
4 | following such adoption and filing.
Beginning January 1, 1993, | ||||||
5 | an ordinance or resolution imposing or
discontinuing the tax | ||||||
6 | hereunder shall be adopted and a certified copy
thereof filed | ||||||
7 | with the Department on or before the first day of October,
| ||||||
8 | whereupon the Department shall proceed to administer and | ||||||
9 | enforce this
Section as of the first day of January next | ||||||
10 | following such adoption and filing.
Beginning October 1, 2002, | ||||||
11 | an ordinance or resolution imposing or
discontinuing the tax
| ||||||
12 | under this Section or effecting a change in the rate of tax | ||||||
13 | must either (i) be
adopted
and a
certified copy of the | ||||||
14 | ordinance or resolution filed with the Department on or
before | ||||||
15 | the first day
of April,
whereupon the Department shall proceed | ||||||
16 | to administer and enforce this Section
as of the
first day of | ||||||
17 | July next following the adoption and filing; or (ii) be adopted
| ||||||
18 | and a certified
copy of the ordinance or resolution filed with | ||||||
19 | the Department on or before the
first day
of October,
whereupon | ||||||
20 | the Department shall proceed to administer and enforce this | ||||||
21 | Section
as of the
first day of January next following the | ||||||
22 | adoption and filing.
| ||||||
23 | Notwithstanding any provision in this Section to the | ||||||
24 | contrary, if, in a non-home rule municipality with more than | ||||||
25 | 150,000 but fewer than 200,000 inhabitants, as determined by | ||||||
26 | the last preceding federal decennial census, an ordinance or |
| |||||||
| |||||||
1 | resolution under this Section imposes or discontinues a tax or | ||||||
2 | changes the tax rate as of July 1, 2007, then that ordinance or | ||||||
3 | resolution, together with a certification that the
ordinance or | ||||||
4 | resolution received referendum approval in the case of the
| ||||||
5 | imposition of the tax, must be adopted and a certified copy of | ||||||
6 | that ordinance or resolution must be filed with the Department | ||||||
7 | on or before May 15, 2007, whereupon the Department shall | ||||||
8 | proceed to administer and enforce this Section as of July 1, | ||||||
9 | 2007.
| ||||||
10 | A non-home rule municipality may file
a
certified copy of | ||||||
11 | an ordinance or resolution, with a certification that the
| ||||||
12 | ordinance or resolution received referendum approval in the | ||||||
13 | case of the
imposition of the tax, with the
Department of | ||||||
14 | Revenue, as required under this Section, only after October 2,
| ||||||
15 | 2000.
| ||||||
16 | The tax authorized by this Section may not be more than 1% | ||||||
17 | and
may be imposed only in 1/4% increments.
| ||||||
18 | (Source: P.A. 94-679, eff. 1-1-06; 95-8, eff. 6-29-07.)
| ||||||
19 | (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
| ||||||
20 | Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' | ||||||
21 | Occupation Tax Act. The corporate authorities of a non-home | ||||||
22 | rule municipality may impose
a tax upon all persons engaged in | ||||||
23 | the business of selling tangible
personal property, other than | ||||||
24 | on an item of tangible personal property
which is titled and | ||||||
25 | registered by an agency of this State's Government,
at retail |
| |||||||
| |||||||
1 | in the municipality for expenditure on
public infrastructure or | ||||||
2 | for property tax relief or both as defined in
Section 8-11-1.2 | ||||||
3 | if approved by
referendum as provided in Section 8-11-1.1, of | ||||||
4 | the gross receipts from such
sales made in the course of such | ||||||
5 | business.
The tax imposed may not be more than 1% and may be | ||||||
6 | imposed only in
1/4% increments. The tax may not be imposed on | ||||||
7 | the sale of food for human
consumption that is
to be consumed | ||||||
8 | off the premises where it is sold (other than alcoholic
| ||||||
9 | beverages, soft drinks, and food that has been prepared for | ||||||
10 | immediate
consumption) and prescription and nonprescription | ||||||
11 | medicines, drugs, medical
appliances, modifications to a motor | ||||||
12 | vehicle for the purpose of rendering it usable by a disabled | ||||||
13 | person, and insulin, urine testing materials, syringes, and | ||||||
14 | needles used by
diabetics.
The tax imposed by a
municipality | ||||||
15 | pursuant to this Section and all civil penalties that may be
| ||||||
16 | assessed as an incident thereof shall be collected and enforced | ||||||
17 | by the
State Department of Revenue. The certificate of | ||||||
18 | registration which is
issued by the Department to a retailer | ||||||
19 | under the Retailers' Occupation Tax
Act shall permit such | ||||||
20 | retailer to engage in a business which is taxable
under any | ||||||
21 | ordinance or resolution enacted pursuant to
this Section | ||||||
22 | without registering separately with the Department under
such | ||||||
23 | ordinance or resolution or under this Section. The Department
| ||||||
24 | shall have full power to administer and enforce this Section; | ||||||
25 | to collect
all taxes and penalties due hereunder; to dispose of | ||||||
26 | taxes and penalties
so collected in the manner hereinafter |
| |||||||
| |||||||
1 | provided, and to determine all
rights to credit memoranda, | ||||||
2 | arising on account of the erroneous payment
of tax or penalty | ||||||
3 | hereunder. In the administration of, and compliance
with, this | ||||||
4 | Section, the Department and persons who are subject to this
| ||||||
5 | Section shall have the same rights, remedies, privileges, | ||||||
6 | immunities,
powers and duties, and be subject to the same | ||||||
7 | conditions, restrictions,
limitations, penalties and | ||||||
8 | definitions of terms, and employ the same
modes of procedure, | ||||||
9 | as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, | ||||||
10 | 2 through 2-65 (in respect to all provisions therein other than
| ||||||
11 | the State rate of tax), 2c, 3 (except as to the disposition of | ||||||
12 | taxes and
penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, | ||||||
13 | 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and | ||||||
14 | 13 of the Retailers'
Occupation Tax Act and Section 3-7 of the | ||||||
15 | Uniform Penalty and Interest
Act as fully as if those | ||||||
16 | provisions were set forth herein.
| ||||||
17 | No municipality may impose a tax under this Section unless | ||||||
18 | the municipality
also imposes a tax at the same rate under | ||||||
19 | Section 8-11-1.4 of this Code.
| ||||||
20 | Persons subject to any tax imposed pursuant to the | ||||||
21 | authority granted
in this Section may reimburse themselves for | ||||||
22 | their seller's tax
liability hereunder by separately stating | ||||||
23 | such tax as an additional
charge, which charge may be stated in | ||||||
24 | combination, in a single amount,
with State tax which sellers | ||||||
25 | are required to collect under the Use Tax
Act, pursuant to such | ||||||
26 | bracket schedules as the Department may prescribe.
|
| |||||||
| |||||||
1 | Whenever the Department determines that a refund should be | ||||||
2 | made under
this Section to a claimant instead of issuing a | ||||||
3 | credit memorandum, the
Department shall notify the State | ||||||
4 | Comptroller, who shall cause the
order to be drawn for the | ||||||
5 | amount specified, and to the person named,
in such notification | ||||||
6 | from the Department. Such refund shall be paid by
the State | ||||||
7 | Treasurer out of the non-home rule municipal retailers'
| ||||||
8 | occupation tax fund.
| ||||||
9 | The Department shall forthwith pay over to the State | ||||||
10 | Treasurer, ex
officio, as trustee, all taxes and penalties | ||||||
11 | collected hereunder. On or
before the 25th day of each calendar | ||||||
12 | month, the Department shall
prepare and certify to the | ||||||
13 | Comptroller the disbursement of stated sums
of money to named | ||||||
14 | municipalities, the municipalities to be those from
which | ||||||
15 | retailers have paid taxes or penalties hereunder to the | ||||||
16 | Department
during the second preceding calendar month. The | ||||||
17 | amount to be paid to each
municipality shall be the amount (not | ||||||
18 | including credit memoranda) collected
hereunder during the | ||||||
19 | second preceding calendar month by the Department plus
an | ||||||
20 | amount the Department determines is necessary to offset any | ||||||
21 | amounts
which were erroneously paid to a different taxing body, | ||||||
22 | and not including
an amount equal to the amount of refunds made | ||||||
23 | during the second preceding
calendar month by the Department on | ||||||
24 | behalf of such municipality, and not
including any amount which | ||||||
25 | the Department determines is necessary to offset
any amounts | ||||||
26 | which were payable to a different taxing body but were
|
| |||||||
| |||||||
1 | erroneously paid to the municipality. Within 10 days after | ||||||
2 | receipt, by the
Comptroller, of the disbursement certification | ||||||
3 | to the municipalities,
provided for in this Section to be given | ||||||
4 | to the Comptroller by the
Department, the Comptroller shall | ||||||
5 | cause the orders to be drawn for the
respective amounts in | ||||||
6 | accordance with the directions contained in such
| ||||||
7 | certification.
| ||||||
8 | For the purpose of determining the local governmental unit | ||||||
9 | whose tax
is applicable, a retail sale, by a producer of coal | ||||||
10 | or other mineral
mined in Illinois, is a sale at retail at the | ||||||
11 | place where the coal or
other mineral mined in Illinois is | ||||||
12 | extracted from the earth. This
paragraph does not apply to coal | ||||||
13 | or other mineral when it is delivered
or shipped by the seller | ||||||
14 | to the purchaser at a point outside Illinois so
that the sale | ||||||
15 | is exempt under the Federal Constitution as a sale in
| ||||||
16 | interstate or foreign commerce.
| ||||||
17 | Nothing in this Section shall be construed to authorize a
| ||||||
18 | municipality to impose a tax upon the privilege of engaging in | ||||||
19 | any
business which under the constitution of the United States | ||||||
20 | may not be
made the subject of taxation by this State.
| ||||||
21 | When certifying the amount of a monthly disbursement to a | ||||||
22 | municipality
under this Section, the Department shall increase | ||||||
23 | or decrease such amount
by an amount necessary to offset any | ||||||
24 | misallocation of previous
disbursements. The offset amount | ||||||
25 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
26 | months from the time a misallocation is discovered.
|
| |||||||
| |||||||
1 | The Department of Revenue shall implement this amendatory | ||||||
2 | Act of the 91st
General Assembly so as to collect the tax on | ||||||
3 | and after January 1, 2002.
| ||||||
4 | As used in this Section, "municipal" and "municipality" | ||||||
5 | means a city,
village or incorporated town, including an | ||||||
6 | incorporated town which has
superseded a civil township.
| ||||||
7 | This Section shall be known and may be cited as the | ||||||
8 | "Non-Home Rule
Municipal Retailers' Occupation Tax Act".
| ||||||
9 | (Source: P.A. 94-679, eff. 1-1-06.)
| ||||||
10 | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
| ||||||
11 | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation | ||||||
12 | Tax Act. The
corporate authorities of a non-home rule | ||||||
13 | municipality may impose a
tax upon all persons engaged, in such | ||||||
14 | municipality, in the business of
making sales of service for | ||||||
15 | expenditure on
public infrastructure or for property tax relief | ||||||
16 | or both as defined in
Section 8-11-1.2 if approved by
| ||||||
17 | referendum as provided in Section 8-11-1.1, of the selling | ||||||
18 | price of
all tangible personal property transferred by such | ||||||
19 | servicemen either in
the form of tangible personal property or | ||||||
20 | in the form of real estate as
an incident to a sale of service.
| ||||||
21 | The tax imposed may not be more than 1% and may be imposed only | ||||||
22 | in
1/4% increments. The tax may not be imposed on the sale of | ||||||
23 | food for human
consumption that is
to be consumed off the | ||||||
24 | premises where it is sold (other than alcoholic
beverages, soft | ||||||
25 | drinks, and food that has been prepared for immediate
|
| |||||||
| |||||||
1 | consumption) and prescription and nonprescription medicines, | ||||||
2 | drugs, medical
appliances , modifications to a motor vehicle for | ||||||
3 | the purpose of rendering it usable by a disabled person , and | ||||||
4 | insulin, urine testing materials, syringes, and needles used by
| ||||||
5 | diabetics.
The tax imposed by a municipality
pursuant to this | ||||||
6 | Section and all civil penalties that may be assessed as
an | ||||||
7 | incident thereof shall be collected and enforced by the State
| ||||||
8 | Department of Revenue. The certificate of registration which is | ||||||
9 | issued
by the Department to a retailer under the Retailers' | ||||||
10 | Occupation Tax
Act or under the Service Occupation Tax Act | ||||||
11 | shall permit
such registrant to engage in a business which is | ||||||
12 | taxable under any
ordinance or resolution enacted pursuant to | ||||||
13 | this Section without
registering separately with the | ||||||
14 | Department under such ordinance or
resolution or under this | ||||||
15 | Section. The Department shall have full power
to administer and | ||||||
16 | enforce this Section; to collect all taxes and
penalties due | ||||||
17 | hereunder; to dispose of taxes and penalties so collected
in | ||||||
18 | the manner hereinafter provided, and to determine all rights to
| ||||||
19 | credit memoranda arising on account of the erroneous payment of | ||||||
20 | tax or
penalty hereunder. In the administration of, and | ||||||
21 | compliance with, this
Section the Department and persons who | ||||||
22 | are subject to this Section
shall have the same rights, | ||||||
23 | remedies, privileges, immunities, powers and
duties, and be | ||||||
24 | subject to the same conditions, restrictions, limitations,
| ||||||
25 | penalties and definitions of terms, and employ the same modes | ||||||
26 | of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 |
| |||||||
| |||||||
1 | through 3-50 (in respect to
all provisions therein other than | ||||||
2 | the State rate of tax), 4 (except that
the reference to the | ||||||
3 | State shall be to the taxing municipality), 5, 7, 8
(except | ||||||
4 | that the jurisdiction to which the tax shall be a debt to the
| ||||||
5 | extent indicated in that Section 8 shall be the taxing | ||||||
6 | municipality), 9
(except as to the disposition of taxes and | ||||||
7 | penalties collected, and except
that the returned merchandise | ||||||
8 | credit for this municipal tax may not be
taken against any | ||||||
9 | State tax), 10, 11, 12 (except the reference therein to
Section | ||||||
10 | 2b of the Retailers' Occupation Tax Act), 13 (except that any
| ||||||
11 | reference to the State shall mean the taxing municipality), the | ||||||
12 | first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the | ||||||
13 | Service Occupation
Tax Act and Section 3-7 of the Uniform | ||||||
14 | Penalty and Interest Act, as fully
as if those provisions were | ||||||
15 | set forth herein.
| ||||||
16 | No municipality may impose a tax under this Section unless | ||||||
17 | the municipality
also imposes a tax at the same rate under | ||||||
18 | Section 8-11-1.3 of this Code.
| ||||||
19 | Persons subject to any tax imposed pursuant to the | ||||||
20 | authority granted
in this Section may reimburse themselves for | ||||||
21 | their serviceman's tax
liability hereunder by separately | ||||||
22 | stating such tax as an additional
charge, which charge may be | ||||||
23 | stated in combination, in a single amount,
with State tax which | ||||||
24 | servicemen are authorized to collect under the
Service Use Tax | ||||||
25 | Act, pursuant to such bracket schedules as the
Department may | ||||||
26 | prescribe.
|
| |||||||
| |||||||
1 | Whenever the Department determines that a refund should be | ||||||
2 | made under
this Section to a claimant instead of issuing credit | ||||||
3 | memorandum, the
Department shall notify the State Comptroller, | ||||||
4 | who shall cause the
order to be drawn for the amount specified, | ||||||
5 | and to the person named,
in such notification from the | ||||||
6 | Department. Such refund shall be paid by
the State Treasurer | ||||||
7 | out of the municipal retailers' occupation tax fund.
| ||||||
8 | The Department shall forthwith pay over to the State | ||||||
9 | Treasurer,
ex officio, as trustee, all taxes and penalties | ||||||
10 | collected hereunder. On
or before the 25th day of each calendar | ||||||
11 | month, the Department shall
prepare and certify to the | ||||||
12 | Comptroller the disbursement of stated sums
of money to named | ||||||
13 | municipalities, the municipalities to be those from
which | ||||||
14 | suppliers and servicemen have paid taxes or penalties hereunder | ||||||
15 | to
the Department during the second preceding calendar month. | ||||||
16 | The amount
to be paid to each municipality shall be the amount | ||||||
17 | (not including credit
memoranda) collected hereunder during | ||||||
18 | the second preceding calendar
month by the Department, and not | ||||||
19 | including an amount equal to the amount
of refunds made during | ||||||
20 | the second preceding calendar month by the
Department on behalf | ||||||
21 | of such municipality. Within 10 days
after receipt, by the | ||||||
22 | Comptroller, of the disbursement certification to
the | ||||||
23 | municipalities and the General Revenue Fund, provided for in | ||||||
24 | this
Section to be given to the Comptroller by the Department, | ||||||
25 | the
Comptroller shall cause the orders to be drawn for the | ||||||
26 | respective
amounts in accordance with the directions contained |
| |||||||
| |||||||
1 | in such
certification.
| ||||||
2 | The Department of Revenue shall implement this amendatory | ||||||
3 | Act of the 91st
General Assembly so as to collect the tax on | ||||||
4 | and after January 1, 2002.
| ||||||
5 | Nothing in this Section shall be construed to authorize a
| ||||||
6 | municipality to impose a tax upon the privilege of engaging in | ||||||
7 | any
business which under the constitution of the United States | ||||||
8 | may not be
made the subject of taxation by this State.
| ||||||
9 | As used in this Section, "municipal" or "municipality" | ||||||
10 | means or refers to
a city, village or incorporated town, | ||||||
11 | including an incorporated town which
has superseded a civil | ||||||
12 | township.
| ||||||
13 | This Section shall be known and may be cited as the | ||||||
14 | "Non-Home Rule Municipal
Service Occupation Tax Act".
| ||||||
15 | (Source: P.A. 94-679, eff. 1-1-06.)
| ||||||
16 | (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
| ||||||
17 | Sec. 8-11-5. Home Rule Municipal Service Occupation Tax | ||||||
18 | Act. The
corporate authorities of a home rule municipality may
| ||||||
19 | impose a tax upon all persons engaged, in such municipality, in | ||||||
20 | the
business of making sales of service at the same rate of tax | ||||||
21 | imposed
pursuant to Section 8-11-1, of the selling price of all | ||||||
22 | tangible personal
property transferred by such servicemen | ||||||
23 | either in the form of tangible
personal property or in the form | ||||||
24 | of real estate as an incident to a sale of
service. If imposed, | ||||||
25 | such tax shall only be imposed in 1/4% increments. On
and after |
| |||||||
| |||||||
1 | September 1, 1991, this additional tax may not be imposed on | ||||||
2 | the
sales of food for human consumption which is to be consumed | ||||||
3 | off the
premises where it is sold (other than alcoholic | ||||||
4 | beverages, soft
drinks and food which has been prepared for | ||||||
5 | immediate consumption) and
prescription and nonprescription | ||||||
6 | medicines, drugs, medical appliances , modifications to a motor | ||||||
7 | vehicle for the purpose of rendering it usable by a disabled | ||||||
8 | person, and
insulin, urine testing materials, syringes and | ||||||
9 | needles used by diabetics.
The tax imposed by a home rule | ||||||
10 | municipality
pursuant to this Section and all civil penalties | ||||||
11 | that may be assessed as
an incident thereof shall be collected | ||||||
12 | and enforced by the State
Department of Revenue. The | ||||||
13 | certificate of registration which is issued
by the Department | ||||||
14 | to a retailer under the Retailers' Occupation Tax
Act or under | ||||||
15 | the Service Occupation Tax Act shall permit
such registrant to | ||||||
16 | engage in a business which is taxable under any
ordinance or | ||||||
17 | resolution enacted pursuant to this Section without
| ||||||
18 | registering separately with the Department under such | ||||||
19 | ordinance or
resolution or under this Section. The Department | ||||||
20 | shall have full power
to administer and enforce this Section; | ||||||
21 | to collect all taxes and
penalties due hereunder; to dispose of | ||||||
22 | taxes and penalties so collected
in the manner hereinafter | ||||||
23 | provided, and to determine all rights to
credit memoranda | ||||||
24 | arising on account of the erroneous payment of tax or
penalty | ||||||
25 | hereunder. In the administration of, and compliance with, this
| ||||||
26 | Section the Department and persons who are subject to this |
| |||||||
| |||||||
1 | Section
shall have the same rights, remedies, privileges, | ||||||
2 | immunities, powers and
duties, and be subject to the same | ||||||
3 | conditions, restrictions,
limitations, penalties and | ||||||
4 | definitions of terms, and employ the same
modes of procedure, | ||||||
5 | as are prescribed in Sections 1a-1, 2, 2a, 3 through
3-50 (in | ||||||
6 | respect to all provisions therein other than the State rate of
| ||||||
7 | tax), 4 (except that the reference to the State shall be to the | ||||||
8 | taxing
municipality), 5, 7, 8 (except that the jurisdiction to | ||||||
9 | which the tax shall
be a debt to the extent indicated in that | ||||||
10 | Section 8 shall be the taxing
municipality), 9 (except as to | ||||||
11 | the disposition of taxes and penalties
collected, and except | ||||||
12 | that the returned merchandise credit for this
municipal tax may | ||||||
13 | not be taken against any State tax), 10, 11, 12
(except the | ||||||
14 | reference therein to Section 2b of the Retailers' Occupation
| ||||||
15 | Tax Act), 13 (except that any reference to the State shall mean | ||||||
16 | the
taxing municipality), the first paragraph of Section 15, | ||||||
17 | 16, 17
(except that credit memoranda issued hereunder may not | ||||||
18 | be used to
discharge any State tax liability), 18, 19 and 20 of | ||||||
19 | the Service
Occupation Tax Act and Section 3-7 of the Uniform | ||||||
20 | Penalty and Interest Act,
as fully as if those provisions were | ||||||
21 | set forth herein.
| ||||||
22 | No tax may be imposed by a home rule municipality pursuant | ||||||
23 | to this
Section unless such municipality also imposes a tax at | ||||||
24 | the same rate
pursuant to Section 8-11-1 of this Act.
| ||||||
25 | Persons subject to any tax imposed pursuant to the | ||||||
26 | authority granted
in this Section may reimburse themselves for |
| |||||||
| |||||||
1 | their serviceman's tax
liability hereunder by separately | ||||||
2 | stating such tax as an additional
charge, which charge may be | ||||||
3 | stated in combination, in a single amount,
with State tax which | ||||||
4 | servicemen are authorized to collect under the
Service Use Tax | ||||||
5 | Act, pursuant to such bracket schedules as the
Department may | ||||||
6 | prescribe.
| ||||||
7 | Whenever the Department determines that a refund should be | ||||||
8 | made under
this Section to a claimant instead of issuing credit | ||||||
9 | memorandum, the
Department shall notify the State Comptroller, | ||||||
10 | who shall cause the
order to be drawn for the amount specified, | ||||||
11 | and to the person named,
in such notification from the | ||||||
12 | Department. Such refund shall be paid by
the State Treasurer | ||||||
13 | out of the home rule municipal retailers' occupation
tax fund.
| ||||||
14 | The Department shall forthwith pay over to the State | ||||||
15 | Treasurer,
ex-officio, as trustee, all taxes and penalties | ||||||
16 | collected hereunder. On
or before the 25th day of each calendar | ||||||
17 | month, the Department shall
prepare and certify to the | ||||||
18 | Comptroller the disbursement of stated sums
of money to named | ||||||
19 | municipalities, the municipalities to be those from
which | ||||||
20 | suppliers and servicemen have paid taxes or penalties hereunder | ||||||
21 | to
the Department during the second preceding calendar month. | ||||||
22 | The amount
to be paid to each municipality shall be the amount | ||||||
23 | (not including credit
memoranda) collected hereunder during | ||||||
24 | the second preceding calendar
month by the Department, and not | ||||||
25 | including an amount equal to the amount
of refunds made during | ||||||
26 | the second preceding calendar month by the
Department on behalf |
| |||||||
| |||||||
1 | of such municipality. Within 10 days after receipt, by
the | ||||||
2 | Comptroller, of the disbursement certification to the | ||||||
3 | municipalities,
provided for in this Section to be given to the | ||||||
4 | Comptroller by the
Department, the Comptroller shall cause the | ||||||
5 | orders to be drawn for the
respective amounts in accordance | ||||||
6 | with the directions contained in such
certification.
| ||||||
7 | In addition to the disbursement required by the preceding | ||||||
8 | paragraph and
in order to mitigate delays caused by | ||||||
9 | distribution procedures, an
allocation shall, if requested, be | ||||||
10 | made within 10 days after January 14, 1991,
and in November of | ||||||
11 | 1991 and each year thereafter, to each municipality that
| ||||||
12 | received more than $500,000 during the preceding fiscal year, | ||||||
13 | (July 1 through
June 30) whether collected by the municipality | ||||||
14 | or disbursed by the Department
as required by this Section. | ||||||
15 | Within 10 days after January 14, 1991,
participating | ||||||
16 | municipalities shall notify the Department in writing of their
| ||||||
17 | intent to participate. In addition, for the initial | ||||||
18 | distribution,
participating municipalities shall certify to | ||||||
19 | the Department the amounts
collected by the municipality for | ||||||
20 | each month under its home rule occupation and
service | ||||||
21 | occupation tax during the period July 1, 1989 through June 30, | ||||||
22 | 1990.
The allocation within 10 days after January 14, 1991,
| ||||||
23 | shall be in an amount equal to the monthly average of these | ||||||
24 | amounts,
excluding the 2 months of highest receipts. Monthly | ||||||
25 | average for the period
of July 1, 1990 through June 30, 1991 | ||||||
26 | will be determined as follows: the
amounts collected by the |
| |||||||
| |||||||
1 | municipality under its home rule occupation and
service | ||||||
2 | occupation tax during the period of July 1, 1990 through | ||||||
3 | September 30,
1990, plus amounts collected by the Department | ||||||
4 | and paid to such
municipality through June 30, 1991, excluding | ||||||
5 | the 2 months of highest
receipts. The monthly average for each | ||||||
6 | subsequent period of July 1 through
June 30 shall be an amount | ||||||
7 | equal to the monthly distribution made to each
such | ||||||
8 | municipality under the preceding paragraph during this period,
| ||||||
9 | excluding the 2 months of highest receipts. The distribution | ||||||
10 | made in
November 1991 and each year thereafter under this | ||||||
11 | paragraph and the
preceding paragraph shall be reduced by the | ||||||
12 | amount allocated and disbursed
under this paragraph in the | ||||||
13 | preceding period of July 1 through June 30.
The Department | ||||||
14 | shall prepare and certify to the Comptroller for
disbursement | ||||||
15 | the allocations made in accordance with this paragraph.
| ||||||
16 | Nothing in this Section shall be construed to authorize a
| ||||||
17 | municipality to impose a tax upon the privilege of engaging in | ||||||
18 | any
business which under the constitution of the United States | ||||||
19 | may not be
made the subject of taxation by this State.
| ||||||
20 | An ordinance or resolution imposing or discontinuing a tax | ||||||
21 | hereunder or
effecting a change in the rate thereof shall be | ||||||
22 | adopted and a certified
copy thereof filed with the Department | ||||||
23 | on or before the first day of June,
whereupon the Department | ||||||
24 | shall proceed to administer and enforce this
Section as of the | ||||||
25 | first day of September next following such adoption and
filing. | ||||||
26 | Beginning January 1, 1992, an ordinance or resolution imposing |
| |||||||
| |||||||
1 | or
discontinuing the tax hereunder or effecting a change in the | ||||||
2 | rate thereof
shall be adopted and a certified copy thereof | ||||||
3 | filed with the Department on
or before the first day of July, | ||||||
4 | whereupon the Department shall proceed to
administer and | ||||||
5 | enforce this Section as of the first day of October next
| ||||||
6 | following such adoption and filing. Beginning January 1, 1993, | ||||||
7 | an ordinance
or resolution imposing or discontinuing the tax | ||||||
8 | hereunder or effecting a
change in the rate thereof shall be | ||||||
9 | adopted and a certified copy thereof
filed with the Department | ||||||
10 | on or before the first day of October, whereupon
the Department | ||||||
11 | shall proceed to administer and enforce this Section as of
the | ||||||
12 | first day of January next following such adoption and filing.
| ||||||
13 | However, a municipality located in a county with a population | ||||||
14 | in excess of
3,000,000 that elected to become a home rule unit | ||||||
15 | at the general primary
election in 1994 may adopt an ordinance | ||||||
16 | or resolution imposing the tax under
this Section and file a | ||||||
17 | certified copy of the ordinance or resolution with the
| ||||||
18 | Department on or before July 1, 1994. The Department shall then | ||||||
19 | proceed to
administer and enforce this Section as of October 1, | ||||||
20 | 1994.
Beginning April 1, 1998, an ordinance or
resolution | ||||||
21 | imposing or
discontinuing the tax hereunder or effecting a | ||||||
22 | change in the rate thereof shall
either (i) be adopted and a | ||||||
23 | certified copy thereof filed with the Department on
or
before | ||||||
24 | the first day of April, whereupon the Department shall proceed | ||||||
25 | to
administer and enforce this Section as of the first day of | ||||||
26 | July next following
the adoption and filing; or (ii) be adopted |
| |||||||
| |||||||
1 | and a certified copy thereof filed
with the Department on or | ||||||
2 | before the first day of October, whereupon the
Department shall | ||||||
3 | proceed to administer and enforce this Section as of the first
| ||||||
4 | day of January next following the adoption and filing.
| ||||||
5 | Any unobligated balance remaining in the Municipal | ||||||
6 | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | ||||||
7 | was abolished by Public Act
85-1135, and all receipts of | ||||||
8 | municipal tax as a result of audits of
liability periods prior | ||||||
9 | to January 1, 1990, shall be paid into the Local
Government Tax | ||||||
10 | Fund, for distribution as provided by this Section prior to
the | ||||||
11 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
12 | as a
result of an assessment not arising from an audit, for | ||||||
13 | liability periods
prior to January 1, 1990, shall be paid into | ||||||
14 | the Local Government Tax Fund
for distribution before July 1, | ||||||
15 | 1990, as provided by this Section prior to
the enactment of | ||||||
16 | Public Act 85-1135, and on and after July 1, 1990, all
such | ||||||
17 | receipts shall be distributed as provided in Section 6z-18 of | ||||||
18 | the
State Finance Act.
| ||||||
19 | As used in this Section, "municipal" and "municipality" | ||||||
20 | means a city,
village or incorporated town, including an | ||||||
21 | incorporated town which has
superseded a civil township.
| ||||||
22 | This Section shall be known and may be cited as the Home | ||||||
23 | Rule Municipal
Service Occupation Tax Act.
| ||||||
24 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
25 | (65 ILCS 5/11-74.3-6) |
| |||||||
| |||||||
1 | Sec. 11-74.3-6. Business district revenue and obligations. | ||||||
2 | (a) If the corporate authorities of a municipality have | ||||||
3 | approved a business district development or redevelopment plan | ||||||
4 | and have elected to impose a tax by ordinance pursuant to | ||||||
5 | subsections (b), (c), or (d) of this Section, each year after | ||||||
6 | the date of the approval of the ordinance and until all | ||||||
7 | business district project costs and all municipal obligations | ||||||
8 | financing the business district project costs, if any, have | ||||||
9 | been paid in accordance with the business district development | ||||||
10 | or redevelopment plan, but in no event longer than 23 years | ||||||
11 | after the date of adoption of the ordinance approving the | ||||||
12 | business district development or redevelopment plan, all | ||||||
13 | amounts generated by the retailers' occupation tax and service | ||||||
14 | occupation tax shall be collected and the tax shall be enforced | ||||||
15 | by the Department of Revenue in the same manner as all | ||||||
16 | retailers' occupation taxes and service occupation taxes | ||||||
17 | imposed in the municipality imposing the tax and all amounts | ||||||
18 | generated by the hotel operators' occupation tax shall be | ||||||
19 | collected and the tax shall be enforced by the municipality in | ||||||
20 | the same manner as all hotel operators' occupation taxes | ||||||
21 | imposed in the municipality imposing the tax. The corporate | ||||||
22 | authorities of the municipality shall deposit the proceeds of | ||||||
23 | the taxes imposed under subsections (b), (c), and (d) into a | ||||||
24 | special fund held by the corporate authorities of the | ||||||
25 | municipality called the Business District Tax Allocation Fund | ||||||
26 | for the purpose of paying business district project costs and |
| |||||||
| |||||||
1 | obligations incurred in the payment of those costs. | ||||||
2 | (b) The corporate authorities of a municipality that has | ||||||
3 | established a business district under this Division 74.3 may, | ||||||
4 | by ordinance or resolution, impose a Business District | ||||||
5 | Retailers' Occupation Tax upon all persons engaged in the | ||||||
6 | business of selling tangible personal property, other than an | ||||||
7 | item of tangible personal property titled or registered with an | ||||||
8 | agency of this State's government, at retail in the business | ||||||
9 | district at a rate not to exceed 1% of the gross receipts from | ||||||
10 | the sales made in the course of such business, to be imposed | ||||||
11 | only in 0.25% increments. The tax may not be imposed on food | ||||||
12 | for human consumption that is to be consumed off the premises | ||||||
13 | where it is sold (other than alcoholic beverages, soft drinks, | ||||||
14 | and food that has been prepared for immediate consumption),
| ||||||
15 | prescription and nonprescription medicines, drugs, medical | ||||||
16 | appliances, modifications to a motor vehicle for the purpose of | ||||||
17 | rendering it usable by a disabled person, and insulin, urine | ||||||
18 | testing materials, syringes, and needles used by diabetics, for | ||||||
19 | human use. | ||||||
20 | The tax imposed under this subsection and all civil | ||||||
21 | penalties that may be assessed as an incident thereof shall be | ||||||
22 | collected and enforced by the Department of Revenue. The | ||||||
23 | certificate of registration that is issued by the Department to | ||||||
24 | a retailer under the Retailers' Occupation Tax Act shall permit | ||||||
25 | the retailer to engage in a business that is taxable under any | ||||||
26 | ordinance or resolution enacted pursuant to this subsection |
| |||||||
| |||||||
1 | without registering separately with the Department under such | ||||||
2 | ordinance or resolution or under this subsection. The | ||||||
3 | Department of Revenue shall have full power to administer and | ||||||
4 | enforce this subsection; to collect all taxes and penalties due | ||||||
5 | under this subsection in the manner hereinafter provided; and | ||||||
6 | to determine all rights to credit memoranda arising on account | ||||||
7 | of the erroneous payment of tax or penalty under this | ||||||
8 | subsection. In the administration of, and compliance with, this | ||||||
9 | subsection, the Department and persons who are subject to this | ||||||
10 | subsection shall have the same rights, remedies, privileges, | ||||||
11 | immunities, powers and duties, and be subject to the same | ||||||
12 | conditions, restrictions, limitations, penalties, exclusions, | ||||||
13 | exemptions, and definitions of terms and employ the same modes | ||||||
14 | of procedure, as are prescribed in Sections 1, 1a through 1o, 2 | ||||||
15 | through 2-65 (in respect to all provisions therein other than | ||||||
16 | the State rate of tax), 2c through 2h, 3 (except as to the | ||||||
17 | disposition of taxes and penalties collected), 4, 5, 5a, 5c, | ||||||
18 | 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, | ||||||
19 | 12, 13, and 14 of the Retailers' Occupation Tax Act and all | ||||||
20 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
21 | if those provisions were set forth herein. | ||||||
22 | Persons subject to any tax imposed under this subsection | ||||||
23 | may reimburse themselves for their seller's tax liability under | ||||||
24 | this subsection by separately stating the tax as an additional | ||||||
25 | charge, which charge may be stated in combination, in a single | ||||||
26 | amount, with State taxes that sellers are required to collect |
| |||||||
| |||||||
1 | under the Use Tax Act, in accordance with such bracket | ||||||
2 | schedules as the Department may prescribe. | ||||||
3 | Whenever the Department determines that a refund should be | ||||||
4 | made under this subsection to a claimant instead of issuing a | ||||||
5 | credit memorandum, the Department shall notify the State | ||||||
6 | Comptroller, who shall cause the order to be drawn for the | ||||||
7 | amount specified and to the person named in the notification | ||||||
8 | from the Department. The refund shall be paid by the State | ||||||
9 | Treasurer out of the business district retailers' occupation | ||||||
10 | tax fund. | ||||||
11 | The Department shall immediately pay over to the State | ||||||
12 | Treasurer, ex officio, as trustee, all taxes, penalties, and | ||||||
13 | interest collected under this subsection for deposit into the | ||||||
14 | business district retailers' occupation tax fund. On or before | ||||||
15 | the 25th day of each calendar month, the Department shall | ||||||
16 | prepare and certify to the Comptroller the disbursement of | ||||||
17 | stated sums of money to named municipalities from the business | ||||||
18 | district retailers' occupation tax fund, the municipalities to | ||||||
19 | be those from which retailers have paid taxes or penalties | ||||||
20 | under this subsection to the Department during the second | ||||||
21 | preceding calendar month. The amount to be paid to each | ||||||
22 | municipality shall be the amount (not including credit | ||||||
23 | memoranda) collected under this subsection during the second | ||||||
24 | preceding calendar month by the Department plus an amount the | ||||||
25 | Department determines is necessary to offset any amounts that | ||||||
26 | were erroneously paid to a different taxing body, and not |
| |||||||
| |||||||
1 | including an amount equal to the amount of refunds made during | ||||||
2 | the second preceding calendar month by the Department, less 2% | ||||||
3 | of that amount, which shall be deposited into the Tax | ||||||
4 | Compliance and Administration Fund and shall be used by the | ||||||
5 | Department, subject to appropriation, to cover the costs of the | ||||||
6 | Department in administering and enforcing the provisions of | ||||||
7 | this subsection, on behalf of such municipality, and not | ||||||
8 | including any amount that the Department determines is | ||||||
9 | necessary to offset any amounts that were payable to a | ||||||
10 | different taxing body but were erroneously paid to the | ||||||
11 | municipality. Within 10 days after receipt by the Comptroller | ||||||
12 | of the disbursement certification to the municipalities | ||||||
13 | provided for in this subsection to be given to the Comptroller | ||||||
14 | by the Department, the Comptroller shall cause the orders to be | ||||||
15 | drawn for the respective amounts in accordance with the | ||||||
16 | directions contained in the certification. The proceeds of the | ||||||
17 | tax paid to municipalities under this subsection shall be | ||||||
18 | deposited into the Business District Tax Allocation Fund by the | ||||||
19 | municipality.
| ||||||
20 | An ordinance or resolution imposing or discontinuing the | ||||||
21 | tax under this subsection or effecting a change in the rate | ||||||
22 | thereof shall either (i) be adopted and a certified copy | ||||||
23 | thereof filed with the Department on or before the first day of | ||||||
24 | April, whereupon the Department, if all other requirements of | ||||||
25 | this subsection are met, shall proceed to administer and | ||||||
26 | enforce this subsection as of the first day of July next |
| |||||||
| |||||||
1 | following the adoption and filing; or (ii) be adopted and a | ||||||
2 | certified copy thereof filed with the Department on or before | ||||||
3 | the first day of October, whereupon, if all other requirements | ||||||
4 | of this subsection are met, the Department shall proceed to | ||||||
5 | administer and enforce this subsection as of the first day of | ||||||
6 | January next following the adoption and filing. | ||||||
7 | The Department of Revenue shall not administer or enforce | ||||||
8 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
9 | the tax under this subsection, until the municipality also | ||||||
10 | provides, in the manner prescribed by the Department, the | ||||||
11 | boundaries of the business district and each address in the | ||||||
12 | business district in such a way that the Department can | ||||||
13 | determine by its address whether a business is located in the | ||||||
14 | business district. The municipality must provide this boundary | ||||||
15 | and address information to the Department on or before April 1 | ||||||
16 | for administration and enforcement of the tax under this | ||||||
17 | subsection by the Department beginning on the following July 1 | ||||||
18 | and on or before October 1 for administration and enforcement | ||||||
19 | of the tax under this subsection by the Department beginning on | ||||||
20 | the following January 1. The Department of Revenue shall not | ||||||
21 | administer or enforce any change made to the boundaries of a | ||||||
22 | business district or any address change, addition, or deletion | ||||||
23 | until the municipality reports the boundary change or address | ||||||
24 | change, addition, or deletion to the Department in the manner | ||||||
25 | prescribed by the Department. The municipality must provide | ||||||
26 | this boundary change information or address change, addition, |
| |||||||
| |||||||
1 | or deletion to the Department on or before April 1 for | ||||||
2 | administration and enforcement by the Department of the change | ||||||
3 | beginning on the following July 1 and on or before October 1 | ||||||
4 | for administration and enforcement by the Department of the | ||||||
5 | change beginning on the following January 1. The retailers in | ||||||
6 | the business district shall be responsible for charging the tax | ||||||
7 | imposed under this subsection. If a retailer is incorrectly | ||||||
8 | included or excluded from the list of those required to collect | ||||||
9 | the tax under this subsection, both the Department of Revenue | ||||||
10 | and the retailer shall be held harmless if they reasonably | ||||||
11 | relied on information provided by the municipality. | ||||||
12 | A municipality that imposes the tax under this subsection | ||||||
13 | must submit to the Department of Revenue any other information | ||||||
14 | as the Department may require for the administration and | ||||||
15 | enforcement of the tax.
| ||||||
16 | When certifying the amount of a monthly disbursement to a | ||||||
17 | municipality under this subsection, the Department shall | ||||||
18 | increase or decrease the amount by an amount necessary to | ||||||
19 | offset any misallocation of previous disbursements. The offset | ||||||
20 | amount shall be the amount erroneously disbursed within the | ||||||
21 | previous 6 months from the time a misallocation is discovered. | ||||||
22 | Nothing in this subsection shall be construed to authorize | ||||||
23 | the municipality to impose a tax upon the privilege of engaging | ||||||
24 | in any business which under the Constitution of the United | ||||||
25 | States may not be made the subject of taxation by this State. | ||||||
26 | If a tax is imposed under this subsection (b), a tax shall |
| |||||||
| |||||||
1 | also be imposed under subsection (c) of this Section. | ||||||
2 | (c) If a tax has been imposed under subsection (b), a | ||||||
3 | Business District Service Occupation Tax shall also be imposed | ||||||
4 | upon all persons engaged, in the business district, in the | ||||||
5 | business of making sales of service, who, as an incident to | ||||||
6 | making those sales of service, transfer tangible personal | ||||||
7 | property within the business district, either in the form of | ||||||
8 | tangible personal property or in the form of real estate as an | ||||||
9 | incident to a sale of service. The tax shall be imposed at the | ||||||
10 | same rate as the tax imposed in subsection (b) and shall not | ||||||
11 | exceed 1% of the selling price of tangible personal property so | ||||||
12 | transferred within the business district, to be imposed only in | ||||||
13 | 0.25% increments. The tax may not be imposed on food for human | ||||||
14 | consumption that is to be consumed off the premises where it is | ||||||
15 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
16 | that has been prepared for immediate consumption),
| ||||||
17 | prescription and nonprescription medicines, drugs, medical | ||||||
18 | appliances, modifications to a motor vehicle for the purpose of | ||||||
19 | rendering it usable by a disabled person, and insulin, urine | ||||||
20 | testing materials, syringes, and needles used by diabetics, for | ||||||
21 | human use. | ||||||
22 | The tax imposed under this subsection and all civil | ||||||
23 | penalties that may be assessed as an incident thereof shall be | ||||||
24 | collected and enforced by the Department of Revenue. The | ||||||
25 | certificate of registration which is issued by the Department | ||||||
26 | to a retailer under the Retailers' Occupation Tax Act or under |
| |||||||
| |||||||
1 | the Service Occupation Tax Act shall permit such registrant to | ||||||
2 | engage in a business which is taxable under any ordinance or | ||||||
3 | resolution enacted pursuant to this subsection without | ||||||
4 | registering separately with the Department under such | ||||||
5 | ordinance or resolution or under this subsection. The | ||||||
6 | Department of Revenue shall have full power to administer and | ||||||
7 | enforce this subsection; to collect all taxes and penalties due | ||||||
8 | under this subsection; to dispose of taxes and penalties so | ||||||
9 | collected in the manner hereinafter provided; and to determine | ||||||
10 | all rights to credit memoranda arising on account of the | ||||||
11 | erroneous payment of tax or penalty under this subsection. In | ||||||
12 | the administration of, and compliance with this subsection, the | ||||||
13 | Department and persons who are subject to this subsection shall | ||||||
14 | have the same rights, remedies, privileges, immunities, powers | ||||||
15 | and duties, and be subject to the same conditions, | ||||||
16 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
17 | and definitions of terms and employ the same modes of procedure | ||||||
18 | as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 | ||||||
19 | (in respect to all provisions therein other than the State rate | ||||||
20 | of tax), 4 (except that the reference to the State shall be to | ||||||
21 | the business district), 5, 7, 8 (except that the jurisdiction | ||||||
22 | to which the tax shall be a debt to the extent indicated in | ||||||
23 | that Section 8 shall be the municipality), 9 (except as to the | ||||||
24 | disposition of taxes and penalties collected, and except that | ||||||
25 | the returned merchandise credit for this tax may not be taken | ||||||
26 | against any State tax), 10, 11, 12 (except the reference |
| |||||||
| |||||||
1 | therein to Section 2b of the Retailers' Occupation Tax Act), 13 | ||||||
2 | (except that any reference to the State shall mean the | ||||||
3 | municipality), the first paragraph of Section 15, and Sections | ||||||
4 | 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all | ||||||
5 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
6 | if those provisions were set forth herein. | ||||||
7 | Persons subject to any tax imposed under the authority | ||||||
8 | granted in this subsection may reimburse themselves for their | ||||||
9 | serviceman's tax liability hereunder by separately stating the | ||||||
10 | tax as an additional charge, which charge may be stated in | ||||||
11 | combination, in a single amount, with State tax that servicemen | ||||||
12 | are authorized to collect under the Service Use Tax Act, in | ||||||
13 | accordance with such bracket schedules as the Department may | ||||||
14 | prescribe. | ||||||
15 | Whenever the Department determines that a refund should be | ||||||
16 | made under this subsection to a claimant instead of issuing | ||||||
17 | credit memorandum, the Department shall notify the State | ||||||
18 | Comptroller, who shall cause the order to be drawn for the | ||||||
19 | amount specified, and to the person named, in such notification | ||||||
20 | from the Department. Such refund shall be paid by the State | ||||||
21 | Treasurer out of the business district retailers' occupation | ||||||
22 | tax fund. | ||||||
23 | The Department shall forthwith pay over to the State | ||||||
24 | Treasurer, ex-officio, as trustee, all taxes, penalties, and | ||||||
25 | interest collected under this subsection for deposit into the | ||||||
26 | business district retailers' occupation tax fund. On or before |
| |||||||
| |||||||
1 | the 25th day of each calendar month, the Department shall | ||||||
2 | prepare and certify to the Comptroller the disbursement of | ||||||
3 | stated sums of money to named municipalities from the business | ||||||
4 | district retailers' occupation tax fund, the municipalities to | ||||||
5 | be those from which suppliers and servicemen have paid taxes or | ||||||
6 | penalties under this subsection to the Department during the | ||||||
7 | second preceding calendar month. The amount to be paid to each | ||||||
8 | municipality shall be the amount (not including credit | ||||||
9 | memoranda) collected under this subsection during the second | ||||||
10 | preceding calendar month by the Department, less 2% of that | ||||||
11 | amount, which shall be deposited into the Tax Compliance and | ||||||
12 | Administration Fund and shall be used by the Department, | ||||||
13 | subject to appropriation, to cover the costs of the Department | ||||||
14 | in administering and enforcing the provisions of this | ||||||
15 | subsection, and not including an amount equal to the amount of | ||||||
16 | refunds made during the second preceding calendar month by the | ||||||
17 | Department on behalf of such municipality. Within 10 days after | ||||||
18 | receipt, by the Comptroller, of the disbursement certification | ||||||
19 | to the municipalities, provided for in this subsection to be | ||||||
20 | given to the Comptroller by the Department, the Comptroller | ||||||
21 | shall cause the orders to be drawn for the respective amounts | ||||||
22 | in accordance with the directions contained in such | ||||||
23 | certification. The proceeds of the tax paid to municipalities | ||||||
24 | under this subsection shall be deposited into the Business | ||||||
25 | District Tax Allocation Fund by the municipality. | ||||||
26 | An ordinance or resolution imposing or discontinuing the |
| |||||||
| |||||||
1 | tax under this subsection or effecting a change in the rate | ||||||
2 | thereof shall either (i) be adopted and a certified copy | ||||||
3 | thereof filed with the Department on or before the first day of | ||||||
4 | April, whereupon the Department, if all other requirements of | ||||||
5 | this subsection are met, shall proceed to administer and | ||||||
6 | enforce this subsection as of the first day of July next | ||||||
7 | following the adoption and filing; or (ii) be adopted and a | ||||||
8 | certified copy thereof filed with the Department on or before | ||||||
9 | the first day of October, whereupon, if all other conditions of | ||||||
10 | this subsection are met, the Department shall proceed to | ||||||
11 | administer and enforce this subsection as of the first day of | ||||||
12 | January next following the adoption and filing. | ||||||
13 | The Department of Revenue shall not administer or enforce | ||||||
14 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
15 | the tax under this subsection, until the municipality also | ||||||
16 | provides, in the manner prescribed by the Department, the | ||||||
17 | boundaries of the business district and each address in the | ||||||
18 | business district in such a way that the Department can | ||||||
19 | determine by its address whether a business is located in the | ||||||
20 | business district. The municipality must provide this boundary | ||||||
21 | and address information to the Department on or before April 1 | ||||||
22 | for administration and enforcement of the tax under this | ||||||
23 | subsection by the Department beginning on the following July 1 | ||||||
24 | and on or before October 1 for administration and enforcement | ||||||
25 | of the tax under this subsection by the Department beginning on | ||||||
26 | the following January 1. The Department of Revenue shall not |
| |||||||
| |||||||
1 | administer or enforce any change made to the boundaries of a | ||||||
2 | business district or any address change, addition, or deletion | ||||||
3 | until the municipality reports the boundary change or address | ||||||
4 | change, addition, or deletion to the Department in the manner | ||||||
5 | prescribed by the Department. The municipality must provide | ||||||
6 | this boundary change information or address change, addition, | ||||||
7 | or deletion to the Department on or before April 1 for | ||||||
8 | administration and enforcement by the Department of the change | ||||||
9 | beginning on the following July 1 and on or before October 1 | ||||||
10 | for administration and enforcement by the Department of the | ||||||
11 | change beginning on the following January 1. The retailers in | ||||||
12 | the business district shall be responsible for charging the tax | ||||||
13 | imposed under this subsection. If a retailer is incorrectly | ||||||
14 | included or excluded from the list of those required to collect | ||||||
15 | the tax under this subsection, both the Department of Revenue | ||||||
16 | and the retailer shall be held harmless if they reasonably | ||||||
17 | relied on information provided by the municipality. | ||||||
18 | A municipality that imposes the tax under this subsection | ||||||
19 | must submit to the Department of Revenue any other information | ||||||
20 | as the Department may require for the administration and | ||||||
21 | enforcement of the tax.
| ||||||
22 | Nothing in this subsection shall be construed to authorize | ||||||
23 | the municipality to impose a tax upon the privilege of engaging | ||||||
24 | in any business which under the Constitution of the United | ||||||
25 | States may not be made the subject of taxation by the State. | ||||||
26 | If a tax is imposed under this subsection (c), a tax shall |
| |||||||
| |||||||
1 | also be imposed under subsection (b) of this Section. | ||||||
2 | (d) By ordinance, a municipality that has established a | ||||||
3 | business district under this Division 74.3 may impose an | ||||||
4 | occupation tax upon all persons engaged in the business | ||||||
5 | district in the business of renting, leasing, or letting rooms | ||||||
6 | in a hotel, as defined in the Hotel Operators' Occupation Tax | ||||||
7 | Act, at a rate not to exceed 1% of the gross rental receipts | ||||||
8 | from the renting, leasing, or letting of hotel rooms within the | ||||||
9 | business district, to be imposed only in 0.25% increments, | ||||||
10 | excluding, however, from gross rental receipts the proceeds of | ||||||
11 | renting, leasing, or letting to permanent residents of a hotel, | ||||||
12 | as defined in the Hotel Operators' Occupation Tax Act, and | ||||||
13 | proceeds from the tax imposed under subsection (c) of Section | ||||||
14 | 13 of the Metropolitan Pier and Exposition Authority Act. | ||||||
15 | The tax imposed by the municipality under this subsection | ||||||
16 | and all civil penalties that may be assessed as an incident to | ||||||
17 | that tax shall be collected and enforced by the municipality | ||||||
18 | imposing the tax. The municipality shall have full power to | ||||||
19 | administer and enforce this subsection, to collect all taxes | ||||||
20 | and penalties due under this subsection, to dispose of taxes | ||||||
21 | and penalties so collected in the manner provided in this | ||||||
22 | subsection, and to determine all rights to credit memoranda | ||||||
23 | arising on account of the erroneous payment of tax or penalty | ||||||
24 | under this subsection. In the administration of and compliance | ||||||
25 | with this subsection, the municipality and persons who are | ||||||
26 | subject to this subsection shall have the same rights, |
| |||||||
| |||||||
1 | remedies, privileges, immunities, powers, and duties, shall be | ||||||
2 | subject to the same conditions, restrictions, limitations, | ||||||
3 | penalties, and definitions of terms, and shall employ the same | ||||||
4 | modes of procedure as are employed with respect to a tax | ||||||
5 | adopted by the municipality under Section 8-3-14 of this Code. | ||||||
6 | Persons subject to any tax imposed under the authority | ||||||
7 | granted in this subsection may reimburse themselves for their | ||||||
8 | tax liability for that tax by separately stating that tax as an | ||||||
9 | additional charge, which charge may be stated in combination, | ||||||
10 | in a single amount, with State taxes imposed under the Hotel | ||||||
11 | Operators' Occupation Tax Act, and with any other tax. | ||||||
12 | Nothing in this subsection shall be construed to authorize | ||||||
13 | a municipality to impose a tax upon the privilege of engaging | ||||||
14 | in any business which under the Constitution of the United | ||||||
15 | States may not be made the subject of taxation by this State. | ||||||
16 | The proceeds of the tax imposed under this subsection shall | ||||||
17 | be deposited into the Business District Tax Allocation Fund.
| ||||||
18 | (e) Obligations issued pursuant to subsection (14) of | ||||||
19 | Section 11-74.3-3 shall be retired in the manner provided in | ||||||
20 | the ordinance authorizing the issuance of those obligations by | ||||||
21 | the receipts of taxes levied as authorized in subsections (12) | ||||||
22 | and (13) of Section 11-74.3-3. The ordinance shall pledge all | ||||||
23 | of the amounts in and to be deposited in the Business District | ||||||
24 | Tax Allocation Fund to the payment of business district project | ||||||
25 | costs and obligations. Obligations issued pursuant to | ||||||
26 | subsection (14) of Section 11-74.3-3 may be sold at public or |
| |||||||
| |||||||
1 | private sale at a price determined by the corporate authorities | ||||||
2 | of the municipality and no referendum approval of the electors | ||||||
3 | shall be required as a condition to the issuance of those | ||||||
4 | obligations. The ordinance authorizing the obligations may | ||||||
5 | require that the obligations contain a recital that they are | ||||||
6 | issued pursuant to subsection (14) of Section 11-74.3-3 and | ||||||
7 | this recital shall be conclusive evidence of their validity and | ||||||
8 | of the regularity of their issuance. The corporate authorities | ||||||
9 | of the municipality may also issue its obligations to refund, | ||||||
10 | in whole or in part, obligations previously issued by the | ||||||
11 | municipality under the authority of this Code, whether at or | ||||||
12 | prior to maturity. All obligations issued pursuant to | ||||||
13 | subsection (14) of Section 11-74.3-3 shall not be regarded as | ||||||
14 | indebtedness of the municipality issuing the obligations for | ||||||
15 | the purpose of any limitation imposed by law. | ||||||
16 | (f) When business district costs, including, without | ||||||
17 | limitation, all municipal obligations financing business | ||||||
18 | district project costs incurred under Section 11-74.3-3 have | ||||||
19 | been paid, any surplus funds then remaining in the Business | ||||||
20 | District Tax Allocation Fund shall be distributed to the | ||||||
21 | municipal treasurer for deposit into the municipal general | ||||||
22 | corporate fund. Upon payment of all business district project | ||||||
23 | costs and retirement of obligations, but in no event more than | ||||||
24 | 23 years after the date of adoption of the ordinance approving | ||||||
25 | the business district development or redevelopment plan, the | ||||||
26 | municipality shall adopt an ordinance immediately rescinding |
| |||||||
| |||||||
1 | the taxes imposed pursuant to subsections (12) and (13) of | ||||||
2 | Section 11-74.3-3.
| ||||||
3 | (Source: P.A. 93-1053, eff. 1-1-05; 93-1089, eff. 3-7-05.)
| ||||||
4 | (65 ILCS 5/8-11-9 rep.)
| ||||||
5 | Section 50. The Illinois Municipal Code is amended by | ||||||
6 | repealing Section 8-11-9. | ||||||
7 | Section 55. The Metro-East Park and Recreation District Act | ||||||
8 | is amended by changing Section 30 as follows:
| ||||||
9 | (70 ILCS 1605/30)
| ||||||
10 | Sec. 30. Taxes.
| ||||||
11 | (a) The board shall impose a
tax upon all persons engaged | ||||||
12 | in the business of selling tangible personal
property, other | ||||||
13 | than personal property titled or registered with an agency of
| ||||||
14 | this State's government,
at retail in the District on the gross | ||||||
15 | receipts from the
sales made in the course of business.
This | ||||||
16 | tax
shall be imposed only at the rate of one-tenth of one per | ||||||
17 | cent.
| ||||||
18 | This additional tax may not be imposed on the sales of food | ||||||
19 | for human
consumption that is to be consumed off the premises | ||||||
20 | where it is sold (other
than alcoholic beverages, soft drinks, | ||||||
21 | and food which has been prepared for
immediate consumption) and | ||||||
22 | prescription and non-prescription medicines, drugs,
medical | ||||||
23 | appliances , modifications to a motor vehicle for the purpose of |
| |||||||
| |||||||
1 | rendering it usable by a disabled person , and insulin, urine | ||||||
2 | testing materials, syringes, and needles
used by diabetics.
The | ||||||
3 | tax imposed by the Board under this Section and
all civil | ||||||
4 | penalties that may be assessed as an incident of the tax shall | ||||||
5 | be
collected and enforced by the Department of Revenue. The | ||||||
6 | certificate
of registration that is issued by the Department to | ||||||
7 | a retailer under the
Retailers' Occupation Tax Act shall permit | ||||||
8 | the retailer to engage in a business
that is taxable without | ||||||
9 | registering separately with the Department under an
ordinance | ||||||
10 | or resolution under this Section. The Department has full
power | ||||||
11 | to administer and enforce this Section, to collect all taxes | ||||||
12 | and
penalties due under this Section, to dispose of taxes and | ||||||
13 | penalties so
collected in the manner provided in this Section, | ||||||
14 | and to determine
all rights to credit memoranda arising on | ||||||
15 | account of the erroneous payment of
a tax or penalty under this | ||||||
16 | Section. In the administration of and compliance
with this | ||||||
17 | Section, the Department and persons who are subject to this | ||||||
18 | Section
shall (i) have the same rights, remedies, privileges, | ||||||
19 | immunities, powers, and
duties, (ii) be subject to the same | ||||||
20 | conditions, restrictions, limitations,
penalties, and | ||||||
21 | definitions of terms, and (iii) employ the same modes of
| ||||||
22 | procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, | ||||||
23 | 1f,
1i, 1j,
1k, 1m, 1n,
2,
2-5, 2-5.5, 2-10 (in respect to all | ||||||
24 | provisions contained in those Sections
other than the
State | ||||||
25 | rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except | ||||||
26 | provisions
relating to
transaction returns and quarter monthly |
| |||||||
| |||||||
1 | payments), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 5j, 5k, 5l, | ||||||
2 | 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
| ||||||
3 | Retailers' Occupation Tax Act and the Uniform Penalty and
| ||||||
4 | Interest Act as if those provisions were set forth in this | ||||||
5 | Section.
| ||||||
6 | Persons subject to any tax imposed under the authority | ||||||
7 | granted in this
Section may reimburse themselves for their | ||||||
8 | sellers' tax liability by
separately stating the tax as an | ||||||
9 | additional charge, which charge may be stated
in combination, | ||||||
10 | in a single amount, with State tax which sellers are required
| ||||||
11 | to collect under the Use Tax Act, pursuant to such bracketed | ||||||
12 | schedules as the
Department may prescribe.
| ||||||
13 | Whenever the Department determines that a refund should be | ||||||
14 | made under this
Section to a claimant instead of issuing a | ||||||
15 | credit memorandum, the Department
shall notify the State | ||||||
16 | Comptroller, who shall cause the order to be drawn for
the | ||||||
17 | amount specified and to the person named in the notification | ||||||
18 | from the
Department. The refund shall be paid by the State | ||||||
19 | Treasurer out of the
State Metro-East Park and Recreation | ||||||
20 | District Fund.
| ||||||
21 | (b) If a tax has been imposed under subsection (a), a
| ||||||
22 | service occupation tax shall
also be imposed at the same rate | ||||||
23 | upon all persons engaged, in the District, in
the business
of | ||||||
24 | making sales of service, who, as an incident to making those | ||||||
25 | sales of
service, transfer tangible personal property within | ||||||
26 | the District
as an
incident to a sale of service.
This tax may |
| |||||||
| |||||||
1 | not be imposed on sales of food for human consumption that is | ||||||
2 | to
be consumed off the premises where it is sold (other than | ||||||
3 | alcoholic beverages,
soft drinks, and food prepared for | ||||||
4 | immediate consumption) and prescription and
non-prescription | ||||||
5 | medicines, drugs, medical appliances , modifications to a motor | ||||||
6 | vehicle for the purpose of rendering it usable by a disabled | ||||||
7 | person , and insulin, urine
testing materials, syringes, and | ||||||
8 | needles used by diabetics.
The tax imposed under this | ||||||
9 | subsection and all civil penalties that may be
assessed as an | ||||||
10 | incident thereof shall be collected and enforced by the
| ||||||
11 | Department of Revenue. The Department has
full power to
| ||||||
12 | administer and enforce this subsection; to collect all taxes | ||||||
13 | and penalties
due hereunder; to dispose of taxes and penalties | ||||||
14 | so collected in the manner
hereinafter provided; and to | ||||||
15 | determine all rights to credit memoranda
arising on account of | ||||||
16 | the erroneous payment of tax or penalty hereunder.
In the | ||||||
17 | administration of, and compliance with this subsection, the
| ||||||
18 | Department and persons who are subject to this paragraph shall | ||||||
19 | (i) have the
same rights, remedies, privileges, immunities, | ||||||
20 | powers, and duties, (ii) be
subject to the same conditions, | ||||||
21 | restrictions, limitations, penalties,
exclusions, exemptions, | ||||||
22 | and definitions of terms, and (iii) employ the same
modes
of | ||||||
23 | procedure as are prescribed in Sections 2 (except that the
| ||||||
24 | reference to State in the definition of supplier maintaining a | ||||||
25 | place of
business in this State shall mean the District), 2a, | ||||||
26 | 2b, 2c, 3 through
3-50 (in respect to all provisions therein |
| |||||||
| |||||||
1 | other than the State rate of
tax), 4 (except that the reference | ||||||
2 | to the State shall be to the District),
5, 7, 8 (except that | ||||||
3 | the jurisdiction to which the tax shall be a debt to
the extent | ||||||
4 | indicated in that Section 8 shall be the District), 9 (except | ||||||
5 | as
to the disposition of taxes and penalties collected), 10, | ||||||
6 | 11, 12 (except the
reference therein to Section 2b of the
| ||||||
7 | Retailers' Occupation Tax Act), 13 (except that any reference | ||||||
8 | to the State
shall mean the District), Sections 15, 16,
17, 18, | ||||||
9 | 19 and 20 of the Service Occupation Tax Act and
the Uniform | ||||||
10 | Penalty and Interest Act, as fully as if those provisions were
| ||||||
11 | set forth herein.
| ||||||
12 | Persons subject to any tax imposed under the authority | ||||||
13 | granted in
this subsection may reimburse themselves for their | ||||||
14 | serviceman's tax liability
by separately stating the tax as an | ||||||
15 | additional charge, which
charge may be stated in combination, | ||||||
16 | in a single amount, with State tax
that servicemen are | ||||||
17 | authorized to collect under the Service Use Tax Act, in
| ||||||
18 | accordance with such bracket schedules as the Department may | ||||||
19 | prescribe.
| ||||||
20 | Whenever the Department determines that a refund should be | ||||||
21 | made under this
subsection to a claimant instead of issuing a | ||||||
22 | credit memorandum, the Department
shall notify the State | ||||||
23 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
24 | amount specified, and to the person named, in the notification
| ||||||
25 | from the Department. The refund shall be paid by the State | ||||||
26 | Treasurer out
of the
State Metro-East Park and Recreation |
| |||||||
| |||||||
1 | District Fund.
| ||||||
2 | Nothing in this subsection shall be construed to authorize | ||||||
3 | the board
to impose a tax upon the privilege of engaging in any | ||||||
4 | business which under
the Constitution of the United States may | ||||||
5 | not be made the subject of taxation
by the State.
| ||||||
6 | (c) The Department shall immediately pay over to the State | ||||||
7 | Treasurer, ex
officio,
as trustee, all taxes and penalties | ||||||
8 | collected under this Section to be
deposited into the
State | ||||||
9 | Metro-East Park and Recreation District Fund, which
shall be an | ||||||
10 | unappropriated trust fund held outside of the State treasury. | ||||||
11 | On
or before the 25th
day of each calendar month, the | ||||||
12 | Department shall prepare and certify to the
Comptroller the | ||||||
13 | disbursement of stated sums of money
pursuant to Section 35 of | ||||||
14 | this Act to the District from which retailers have
paid
taxes | ||||||
15 | or penalties to the Department during the second preceding
| ||||||
16 | calendar month. The amount to be paid to the District shall be | ||||||
17 | the amount (not
including credit memoranda) collected under | ||||||
18 | this Section during the second
preceding
calendar month by the | ||||||
19 | Department plus an amount the Department determines is
| ||||||
20 | necessary to offset any amounts that were erroneously paid to a | ||||||
21 | different
taxing body, and not including (i) an amount equal to | ||||||
22 | the amount of refunds
made
during the second preceding calendar | ||||||
23 | month by the Department on behalf of
the District and (ii) any | ||||||
24 | amount that the Department determines is
necessary to offset | ||||||
25 | any amounts that were payable to a different taxing body
but | ||||||
26 | were erroneously paid to the District. Within 10 days after |
| |||||||
| |||||||
1 | receipt by the
Comptroller of the disbursement certification to | ||||||
2 | the District provided for in
this Section to be given to the | ||||||
3 | Comptroller by the Department, the Comptroller
shall cause the | ||||||
4 | orders to be drawn for the respective amounts in accordance
| ||||||
5 | with directions contained in the certification.
| ||||||
6 | (d) For the purpose of determining
whether a tax authorized | ||||||
7 | under this Section is
applicable, a retail sale by a producer | ||||||
8 | of coal or another mineral mined in
Illinois is a sale at | ||||||
9 | retail at the place where the coal or other mineral mined
in | ||||||
10 | Illinois is extracted from the earth. This paragraph does not | ||||||
11 | apply to coal
or another mineral when it is delivered or | ||||||
12 | shipped by the seller to the
purchaser
at a point outside | ||||||
13 | Illinois so that the sale is exempt under the United States
| ||||||
14 | Constitution as a sale in interstate or foreign commerce.
| ||||||
15 | (e) Nothing in this Section shall be construed to authorize | ||||||
16 | the board to
impose a
tax upon the privilege of engaging in any | ||||||
17 | business that under the Constitution
of the United States may | ||||||
18 | not be made the subject of taxation by this State.
| ||||||
19 | (f) An ordinance imposing a tax under this Section or an | ||||||
20 | ordinance extending
the
imposition of a tax to an additional | ||||||
21 | county or counties
shall be certified
by the
board and filed | ||||||
22 | with the Department of Revenue
either (i) on or
before the | ||||||
23 | first day of April, whereupon the Department shall proceed to
| ||||||
24 | administer and enforce the tax as of the first day of July next | ||||||
25 | following
the filing; or (ii)
on or before the first day of | ||||||
26 | October, whereupon the
Department shall proceed to administer |
| |||||||
| |||||||
1 | and enforce the tax as of the first
day of January next | ||||||
2 | following the filing.
| ||||||
3 | (g) When certifying the amount of a monthly disbursement to | ||||||
4 | the District
under
this
Section, the Department shall increase | ||||||
5 | or decrease the amounts by an amount
necessary to offset any | ||||||
6 | misallocation of previous disbursements. The offset
amount | ||||||
7 | shall be the amount erroneously disbursed within the previous 6 | ||||||
8 | months
from the time a misallocation is discovered.
| ||||||
9 | (Source: P.A. 91-103, eff. 7-13-99.)
| ||||||
10 | Section 60. The Regional Transportation Authority Act is | ||||||
11 | amended by changing Section 4.03 as follows:
| ||||||
12 | (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
| ||||||
13 | Sec. 4.03. Taxes.
| ||||||
14 | (a) In order to carry out any of the powers or
purposes of | ||||||
15 | the Authority, the Board may by ordinance adopted with the
| ||||||
16 | concurrence of 12
of the then Directors, impose throughout the
| ||||||
17 | metropolitan region any or all of the taxes provided in this | ||||||
18 | Section.
Except as otherwise provided in this Act, taxes | ||||||
19 | imposed under this
Section and civil penalties imposed incident | ||||||
20 | thereto shall be collected
and enforced by the State Department | ||||||
21 | of Revenue. The Department shall
have the power to administer | ||||||
22 | and enforce the taxes and to determine all
rights for refunds | ||||||
23 | for erroneous payments of the taxes. Nothing in this amendatory | ||||||
24 | Act of the 95th General Assembly is intended to invalidate any |
| |||||||
| |||||||
1 | taxes currently imposed by the Authority. The increased vote | ||||||
2 | requirements to impose a tax shall only apply to actions taken | ||||||
3 | after the effective date of this amendatory Act of the 95th | ||||||
4 | General Assembly.
| ||||||
5 | (b) The Board may impose a public transportation tax upon | ||||||
6 | all
persons engaged in the metropolitan region in the business | ||||||
7 | of selling at
retail motor fuel for operation of motor vehicles | ||||||
8 | upon public highways. The
tax shall be at a rate not to exceed | ||||||
9 | 5% of the gross receipts from the sales
of motor fuel in the | ||||||
10 | course of the business. As used in this Act, the term
"motor | ||||||
11 | fuel" shall have the same meaning as in the Motor Fuel Tax Law. | ||||||
12 | The Board may provide for details of the tax. The provisions of
| ||||||
13 | any tax shall conform, as closely as may be practicable, to the | ||||||
14 | provisions
of the Municipal Retailers Occupation Tax Act, | ||||||
15 | including without limitation,
conformity to penalties with | ||||||
16 | respect to the tax imposed and as to the powers of
the State | ||||||
17 | Department of Revenue to promulgate and enforce rules and | ||||||
18 | regulations
relating to the administration and enforcement of | ||||||
19 | the provisions of the tax
imposed, except that reference in the | ||||||
20 | Act to any municipality shall refer to
the Authority and the | ||||||
21 | tax shall be imposed only with regard to receipts from
sales of | ||||||
22 | motor fuel in the metropolitan region, at rates as limited by | ||||||
23 | this
Section.
| ||||||
24 | (c) In connection with the tax imposed under paragraph (b) | ||||||
25 | of
this Section the Board may impose a tax upon the privilege | ||||||
26 | of using in
the metropolitan region motor fuel for the |
| |||||||
| |||||||
1 | operation of a motor vehicle
upon public highways, the tax to | ||||||
2 | be at a rate not in excess of the rate
of tax imposed under | ||||||
3 | paragraph (b) of this Section. The Board may
provide for | ||||||
4 | details of the tax.
| ||||||
5 | (d) The Board may impose a motor vehicle parking tax upon | ||||||
6 | the
privilege of parking motor vehicles at off-street parking | ||||||
7 | facilities in
the metropolitan region at which a fee is | ||||||
8 | charged, and may provide for
reasonable classifications in and | ||||||
9 | exemptions to the tax, for
administration and enforcement | ||||||
10 | thereof and for civil penalties and
refunds thereunder and may | ||||||
11 | provide criminal penalties thereunder, the
maximum penalties | ||||||
12 | not to exceed the maximum criminal penalties provided
in the | ||||||
13 | Retailers' Occupation Tax Act. The
Authority may collect and | ||||||
14 | enforce the tax itself or by contract with
any unit of local | ||||||
15 | government. The State Department of Revenue shall have
no | ||||||
16 | responsibility for the collection and enforcement unless the
| ||||||
17 | Department agrees with the Authority to undertake the | ||||||
18 | collection and
enforcement. As used in this paragraph, the term | ||||||
19 | "parking facility"
means a parking area or structure having | ||||||
20 | parking spaces for more than 2
vehicles at which motor vehicles | ||||||
21 | are permitted to park in return for an
hourly, daily, or other | ||||||
22 | periodic fee, whether publicly or privately
owned, but does not | ||||||
23 | include parking spaces on a public street, the use
of which is | ||||||
24 | regulated by parking meters.
| ||||||
25 | (e) The Board may impose a Regional Transportation | ||||||
26 | Authority
Retailers' Occupation Tax upon all persons engaged in |
| |||||||
| |||||||
1 | the business of
selling tangible personal property at retail in | ||||||
2 | the metropolitan region.
In Cook County the tax rate shall be | ||||||
3 | 1.25%
of the gross receipts from sales
of food for human | ||||||
4 | consumption that is to be consumed off the premises
where it is | ||||||
5 | sold (other than alcoholic beverages, soft drinks and food
that | ||||||
6 | has been prepared for immediate consumption) and prescription | ||||||
7 | and
nonprescription medicines, drugs, medical appliances and | ||||||
8 | insulin, urine
testing materials, syringes and needles used by | ||||||
9 | diabetics, and 1%
of the
gross receipts from other taxable | ||||||
10 | sales made in the course of that business.
In DuPage, Kane, | ||||||
11 | Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
| ||||||
12 | of the gross receipts from all taxable sales made in the course | ||||||
13 | of that
business. The tax
imposed under this Section and all | ||||||
14 | civil penalties that may be
assessed as an incident thereof | ||||||
15 | shall be collected and enforced by the
State Department of | ||||||
16 | Revenue. The Department shall have full power to
administer and | ||||||
17 | enforce this Section; to collect all taxes and penalties
so | ||||||
18 | collected in the manner hereinafter provided; and to determine | ||||||
19 | all
rights to credit memoranda arising on account of the | ||||||
20 | erroneous payment
of tax or penalty hereunder. In the | ||||||
21 | administration of, and compliance
with this Section, the | ||||||
22 | Department and persons who are subject to this
Section shall | ||||||
23 | have the same rights, remedies, privileges, immunities,
powers | ||||||
24 | and duties, and be subject to the same conditions, | ||||||
25 | restrictions,
limitations, penalties, exclusions, exemptions | ||||||
26 | and definitions of terms,
and employ the same modes of |
| |||||||
| |||||||
1 | procedure, as are prescribed in Sections 1,
1a, 1a-1, 1c, 1d, | ||||||
2 | 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
provisions | ||||||
3 | therein other than the State rate of tax), 2c, 3 (except as to
| ||||||
4 | the disposition of taxes and penalties collected), 4, 5, 5a, | ||||||
5 | 5b, 5c, 5d,
5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | ||||||
6 | 9, 10, 11, 12 and
13 of the Retailers' Occupation Tax Act and | ||||||
7 | Section 3-7 of the
Uniform Penalty and Interest Act, as fully | ||||||
8 | as if those
provisions were set forth herein.
| ||||||
9 | Persons subject to any tax imposed under the authority | ||||||
10 | granted
in this Section may reimburse themselves for their | ||||||
11 | seller's tax
liability hereunder by separately stating the tax | ||||||
12 | as an additional
charge, which charge may be stated in | ||||||
13 | combination in a single amount
with State taxes that sellers | ||||||
14 | are required to collect under the Use
Tax Act, under any | ||||||
15 | bracket schedules the
Department may prescribe.
| ||||||
16 | Whenever the Department determines that a refund should be | ||||||
17 | made under
this Section to a claimant instead of issuing a | ||||||
18 | credit memorandum, the
Department shall notify the State | ||||||
19 | Comptroller, who shall cause the
warrant to be drawn for the | ||||||
20 | amount specified, and to the person named,
in the notification | ||||||
21 | from the Department. The refund shall be paid by
the State | ||||||
22 | Treasurer out of the Regional Transportation Authority tax
fund | ||||||
23 | established under paragraph (n) of this Section.
| ||||||
24 | If a tax is imposed under this subsection (e), a tax shall | ||||||
25 | also
be imposed under subsections (f) and (g) of this Section.
| ||||||
26 | For the purpose of determining whether a tax authorized |
| |||||||
| |||||||
1 | under this
Section is applicable, a retail sale by a producer | ||||||
2 | of coal or other
mineral mined in Illinois, is a sale at retail | ||||||
3 | at the place where the
coal or other mineral mined in Illinois | ||||||
4 | is extracted from the earth.
This paragraph does not apply to | ||||||
5 | coal or other mineral when it is
delivered or shipped by the | ||||||
6 | seller to the purchaser at a point outside
Illinois so that the | ||||||
7 | sale is exempt under the Federal Constitution as a
sale in | ||||||
8 | interstate or foreign commerce.
| ||||||
9 | No tax shall be imposed or collected under this subsection | ||||||
10 | on the sale of a motor vehicle in this State to a resident of | ||||||
11 | another state if that motor vehicle will not be titled in this | ||||||
12 | State.
| ||||||
13 | Nothing in this Section shall be construed to authorize the | ||||||
14 | Regional
Transportation Authority to impose a tax upon the | ||||||
15 | privilege of engaging
in any business that under the | ||||||
16 | Constitution of the United States may
not be made the subject | ||||||
17 | of taxation by this State.
| ||||||
18 | (f) If a tax has been imposed under paragraph (e), a
| ||||||
19 | Regional Transportation Authority Service Occupation
Tax shall
| ||||||
20 | also be imposed upon all persons engaged, in the metropolitan | ||||||
21 | region in
the business of making sales of service, who as an | ||||||
22 | incident to making the sales
of service, transfer tangible | ||||||
23 | personal property within the metropolitan region,
either in the | ||||||
24 | form of tangible personal property or in the form of real | ||||||
25 | estate
as an incident to a sale of service. In Cook County, the | ||||||
26 | tax rate
shall be: (1) 1.25%
of the serviceman's cost price of |
| |||||||
| |||||||
1 | food prepared for
immediate consumption and transferred | ||||||
2 | incident to a sale of service subject
to the service occupation | ||||||
3 | tax by an entity licensed under the Hospital
Licensing Act or | ||||||
4 | the Nursing Home Care Act that is located in the metropolitan
| ||||||
5 | region; (2) 1.25%
of the selling price of food for human | ||||||
6 | consumption that is to
be consumed off the premises where it is | ||||||
7 | sold (other than alcoholic
beverages, soft drinks and food that | ||||||
8 | has been prepared for immediate
consumption) and prescription | ||||||
9 | and nonprescription medicines, drugs, medical
appliances and | ||||||
10 | insulin, urine testing materials, syringes and needles used
by | ||||||
11 | diabetics; and (3) 1%
of the selling price from other taxable | ||||||
12 | sales of
tangible personal property transferred. In DuPage, | ||||||
13 | Kane, Lake,
McHenry and Will Counties the rate shall be 0.75%
| ||||||
14 | of the selling price
of all tangible personal property | ||||||
15 | transferred.
| ||||||
16 | The tax imposed under this paragraph and all civil
| ||||||
17 | penalties that may be assessed as an incident thereof shall be | ||||||
18 | collected
and enforced by the State Department of Revenue. The | ||||||
19 | Department shall
have full power to administer and enforce this | ||||||
20 | paragraph; to collect all
taxes and penalties due hereunder; to | ||||||
21 | dispose of taxes and penalties
collected in the manner | ||||||
22 | hereinafter provided; and to determine all
rights to credit | ||||||
23 | memoranda arising on account of the erroneous payment
of tax or | ||||||
24 | penalty hereunder. In the administration of and compliance
with | ||||||
25 | this paragraph, the Department and persons who are subject to | ||||||
26 | this
paragraph shall have the same rights, remedies, |
| |||||||
| |||||||
1 | privileges, immunities,
powers and duties, and be subject to | ||||||
2 | the same conditions, restrictions,
limitations, penalties, | ||||||
3 | exclusions, exemptions and definitions of terms,
and employ the | ||||||
4 | same modes of procedure, as are prescribed in Sections 1a-1, 2,
| ||||||
5 | 2a, 3 through 3-50 (in respect to all provisions therein other | ||||||
6 | than the
State rate of tax), 4 (except that the reference to | ||||||
7 | the State shall be to
the Authority), 5, 7, 8 (except that the | ||||||
8 | jurisdiction to which the tax
shall be a debt to the extent | ||||||
9 | indicated in that Section 8 shall be the
Authority), 9 (except | ||||||
10 | as to the disposition of taxes and penalties
collected, and | ||||||
11 | except that the returned merchandise credit for this tax may
| ||||||
12 | not be taken against any State tax), 10, 11, 12 (except the | ||||||
13 | reference
therein to Section 2b of the Retailers' Occupation | ||||||
14 | Tax Act), 13 (except
that any reference to the State shall mean | ||||||
15 | the Authority), the first
paragraph of Section 15, 16, 17, 18, | ||||||
16 | 19 and 20 of the Service
Occupation Tax Act and Section 3-7 of | ||||||
17 | the Uniform Penalty and Interest
Act, as fully as if those | ||||||
18 | provisions were set forth herein.
| ||||||
19 | Persons subject to any tax imposed under the authority | ||||||
20 | granted
in this paragraph may reimburse themselves for their | ||||||
21 | serviceman's tax
liability hereunder by separately stating the | ||||||
22 | tax as an additional
charge, that charge may be stated in | ||||||
23 | combination in a single amount
with State tax that servicemen | ||||||
24 | are authorized to collect under the
Service Use Tax Act, under | ||||||
25 | any bracket schedules the
Department may prescribe.
| ||||||
26 | Whenever the Department determines that a refund should be |
| |||||||
| |||||||
1 | made under
this paragraph to a claimant instead of issuing a | ||||||
2 | credit memorandum, the
Department shall notify the State | ||||||
3 | Comptroller, who shall cause the
warrant to be drawn for the | ||||||
4 | amount specified, and to the person named
in the notification | ||||||
5 | from the Department. The refund shall be paid by
the State | ||||||
6 | Treasurer out of the Regional Transportation Authority tax
fund | ||||||
7 | established under paragraph (n) of this Section.
| ||||||
8 | Nothing in this paragraph shall be construed to authorize | ||||||
9 | the
Authority to impose a tax upon the privilege of engaging in | ||||||
10 | any business
that under the Constitution of the United States | ||||||
11 | may not be made the
subject of taxation by the State.
| ||||||
12 | (g) If a tax has been imposed under paragraph (e), a tax | ||||||
13 | shall
also be imposed upon the privilege of using in the | ||||||
14 | metropolitan region,
any item of tangible personal property | ||||||
15 | that is purchased outside the
metropolitan region at retail | ||||||
16 | from a retailer, and that is titled or
registered with an | ||||||
17 | agency of this State's government. In Cook County the
tax rate | ||||||
18 | shall be 1%
of the selling price of the tangible personal | ||||||
19 | property,
as "selling price" is defined in the Use Tax Act. In | ||||||
20 | DuPage, Kane, Lake,
McHenry and Will counties the tax rate | ||||||
21 | shall be 0.75%
of the selling price of
the tangible personal | ||||||
22 | property, as "selling price" is defined in the
Use Tax Act. The | ||||||
23 | tax shall be collected from persons whose Illinois
address for | ||||||
24 | titling or registration purposes is given as being in the
| ||||||
25 | metropolitan region. The tax shall be collected by the | ||||||
26 | Department of
Revenue for the Regional Transportation |
| |||||||
| |||||||
1 | Authority. The tax must be paid
to the State, or an exemption | ||||||
2 | determination must be obtained from the
Department of Revenue, | ||||||
3 | before the title or certificate of registration for
the | ||||||
4 | property may be issued. The tax or proof of exemption may be
| ||||||
5 | transmitted to the Department by way of the State agency with | ||||||
6 | which, or the
State officer with whom, the tangible personal | ||||||
7 | property must be titled or
registered if the Department and the | ||||||
8 | State agency or State officer
determine that this procedure | ||||||
9 | will expedite the processing of applications
for title or | ||||||
10 | registration.
| ||||||
11 | The Department shall have full power to administer and | ||||||
12 | enforce this
paragraph; to collect all taxes, penalties and | ||||||
13 | interest due hereunder;
to dispose of taxes, penalties and | ||||||
14 | interest collected in the manner
hereinafter provided; and to | ||||||
15 | determine all rights to credit memoranda or
refunds arising on | ||||||
16 | account of the erroneous payment of tax, penalty or
interest | ||||||
17 | hereunder. In the administration of and compliance with this
| ||||||
18 | paragraph, the Department and persons who are subject to this | ||||||
19 | paragraph
shall have the same rights, remedies, privileges, | ||||||
20 | immunities, powers and
duties, and be subject to the same | ||||||
21 | conditions, restrictions,
limitations, penalties, exclusions, | ||||||
22 | exemptions and definitions of terms
and employ the same modes | ||||||
23 | of procedure, as are prescribed in Sections 2
(except the | ||||||
24 | definition of "retailer maintaining a place of business in this
| ||||||
25 | State"), 3 through 3-80 (except provisions pertaining to the | ||||||
26 | State rate
of tax, and except provisions concerning collection |
| |||||||
| |||||||
1 | or refunding of the tax
by retailers), 4, 11, 12, 12a, 14, 15, | ||||||
2 | 19 (except the portions pertaining
to claims by retailers and | ||||||
3 | except the last paragraph concerning refunds),
20, 21 and 22 of | ||||||
4 | the Use Tax Act, and are not inconsistent with this
paragraph, | ||||||
5 | as fully as if those provisions were set forth herein.
| ||||||
6 | Whenever the Department determines that a refund should be | ||||||
7 | made under
this paragraph to a claimant instead of issuing a | ||||||
8 | credit memorandum, the
Department shall notify the State | ||||||
9 | Comptroller, who shall cause the order
to be drawn for the | ||||||
10 | amount specified, and to the person named in the
notification | ||||||
11 | from the Department. The refund shall be paid by the State
| ||||||
12 | Treasurer out of the Regional Transportation Authority tax fund
| ||||||
13 | established under paragraph (n) of this Section.
| ||||||
14 | (h) (Blank). The Authority may impose a replacement vehicle | ||||||
15 | tax of $50 on any
passenger car as defined in Section 1-157 of | ||||||
16 | the Illinois Vehicle Code
purchased within the metropolitan | ||||||
17 | region by or on behalf of an
insurance company to replace a | ||||||
18 | passenger car of
an insured person in settlement of a total | ||||||
19 | loss claim. The tax imposed
may not become effective before the | ||||||
20 | first day of the month following the
passage of the ordinance | ||||||
21 | imposing the tax and receipt of a certified copy
of the | ||||||
22 | ordinance by the Department of Revenue. The Department of | ||||||
23 | Revenue
shall collect the tax for the Authority in accordance | ||||||
24 | with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
| ||||||
25 | The Department shall immediately pay over to the State | ||||||
26 | Treasurer,
ex officio, as trustee, all taxes collected |
| |||||||
| |||||||
1 | hereunder. On
or before the 25th day of each calendar month, | ||||||
2 | the Department shall
prepare and certify to the Comptroller the | ||||||
3 | disbursement of stated sums
of money to the Authority. The | ||||||
4 | amount to be paid to the Authority shall be
the amount | ||||||
5 | collected hereunder during the second preceding calendar month
| ||||||
6 | by the Department, less any amount determined by the Department | ||||||
7 | to be
necessary for the payment of refunds. Within 10 days | ||||||
8 | after receipt by the
Comptroller of the disbursement | ||||||
9 | certification to the Authority provided
for in this Section to | ||||||
10 | be given to the Comptroller by the Department, the
Comptroller | ||||||
11 | shall cause the orders to be drawn for that amount in
| ||||||
12 | accordance with the directions contained in the certification.
| ||||||
13 | (i) The Board may not impose any other taxes except as it | ||||||
14 | may from
time to time be authorized by law to impose.
| ||||||
15 | (j) A certificate of registration issued by the State | ||||||
16 | Department of
Revenue to a retailer under the Retailers' | ||||||
17 | Occupation Tax Act or under the
Service Occupation Tax Act | ||||||
18 | shall permit the registrant to engage in a
business that is | ||||||
19 | taxed under the tax imposed under paragraphs
(b), (e), (f) or | ||||||
20 | (g) of this Section and no additional registration
shall be | ||||||
21 | required under the tax. A certificate issued under the
Use Tax | ||||||
22 | Act or the Service Use Tax Act shall be applicable with regard | ||||||
23 | to
any tax imposed under paragraph (c) of this Section.
| ||||||
24 | (k) The provisions of any tax imposed under paragraph (c) | ||||||
25 | of
this Section shall conform as closely as may be practicable | ||||||
26 | to the
provisions of the Use Tax Act, including
without |
| |||||||
| |||||||
1 | limitation conformity as to penalties with respect to the tax
| ||||||
2 | imposed and as to the powers of the State Department of Revenue | ||||||
3 | to
promulgate and enforce rules and regulations relating to the
| ||||||
4 | administration and enforcement of the provisions of the tax | ||||||
5 | imposed.
The taxes shall be imposed only on use within the | ||||||
6 | metropolitan region
and at rates as provided in the paragraph.
| ||||||
7 | (l) The Board in imposing any tax as provided in paragraphs | ||||||
8 | (b)
and (c) of this Section, shall, after seeking the advice of | ||||||
9 | the State
Department of Revenue, provide means for retailers, | ||||||
10 | users or purchasers
of motor fuel for purposes other than those | ||||||
11 | with regard to which the
taxes may be imposed as provided in | ||||||
12 | those paragraphs to receive refunds
of taxes improperly paid, | ||||||
13 | which provisions may be at variance with the
refund provisions | ||||||
14 | as applicable under the Municipal Retailers
Occupation Tax Act. | ||||||
15 | The State Department of Revenue may provide for
certificates of | ||||||
16 | registration for users or purchasers of motor fuel for purposes
| ||||||
17 | other than those with regard to which taxes may be imposed as | ||||||
18 | provided in
paragraphs (b) and (c) of this Section to | ||||||
19 | facilitate the reporting and
nontaxability of the exempt sales | ||||||
20 | or uses.
| ||||||
21 | (m) Any ordinance imposing or discontinuing any tax under | ||||||
22 | this Section shall
be adopted and a certified copy thereof | ||||||
23 | filed with the Department on or before
June 1, whereupon the | ||||||
24 | Department of Revenue shall proceed to administer and
enforce | ||||||
25 | this Section on behalf of the Regional Transportation Authority | ||||||
26 | as of
September 1 next following such adoption and filing.
|
| |||||||
| |||||||
1 | Beginning January 1, 1992, an ordinance or resolution imposing | ||||||
2 | or
discontinuing the tax hereunder shall be adopted and a | ||||||
3 | certified copy
thereof filed with the Department on or before | ||||||
4 | the first day of July,
whereupon the Department shall proceed | ||||||
5 | to administer and enforce this
Section as of the first day of | ||||||
6 | October next following such adoption and
filing. Beginning | ||||||
7 | January 1, 1993, an ordinance or resolution imposing, | ||||||
8 | increasing, decreasing, or
discontinuing the tax hereunder | ||||||
9 | shall be adopted and a certified copy
thereof filed with the | ||||||
10 | Department,
whereupon the Department shall proceed to | ||||||
11 | administer and enforce this
Section as of the first day of the | ||||||
12 | first month to occur not less than 60 days
following such | ||||||
13 | adoption and filing. Any ordinance or resolution of the | ||||||
14 | Authority imposing a tax under this Section and in effect on | ||||||
15 | August 1, 2007 shall remain in full force and effect and shall | ||||||
16 | be administered by the Department of Revenue under the terms | ||||||
17 | and conditions and rates of tax established by such ordinance | ||||||
18 | or resolution until the Department begins administering and | ||||||
19 | enforcing an increased tax under this Section as authorized by | ||||||
20 | this amendatory Act of the 95th General Assembly. The tax rates | ||||||
21 | authorized by this amendatory Act of the 95th General Assembly | ||||||
22 | are effective only if imposed by ordinance of the Authority.
| ||||||
23 | (n) The State Department of Revenue shall, upon collecting | ||||||
24 | any taxes
as provided in this Section, pay the taxes over to | ||||||
25 | the State Treasurer
as trustee for the Authority. The taxes | ||||||
26 | shall be held in a trust fund
outside the State Treasury. On or |
| |||||||
| |||||||
1 | before the 25th day of each calendar
month, the State | ||||||
2 | Department of Revenue shall prepare and certify to the
| ||||||
3 | Comptroller of the State of Illinois and
to the Authority (i) | ||||||
4 | the
amount of taxes collected in each County other than Cook | ||||||
5 | County in the
metropolitan region, (ii)
the amount of taxes | ||||||
6 | collected within the City
of Chicago,
and (iii) the amount | ||||||
7 | collected in that portion
of Cook County outside of Chicago, | ||||||
8 | each amount less the amount necessary for the payment
of | ||||||
9 | refunds to taxpayers located in those areas described in items | ||||||
10 | (i), (ii), and (iii).
Within 10 days after receipt by the | ||||||
11 | Comptroller of the certification of
the amounts, the | ||||||
12 | Comptroller shall cause an
order to be drawn for the payment of | ||||||
13 | two-thirds of the amounts certified in item (i) of this | ||||||
14 | subsection to the Authority and one-third of the amounts | ||||||
15 | certified in item (i) of this subsection to the respective | ||||||
16 | counties other than Cook County and the amount certified in | ||||||
17 | items (ii) and (iii) of this subsection to the Authority.
| ||||||
18 | In addition to the disbursement required by the preceding | ||||||
19 | paragraph, an
allocation shall be made in July 1991 and each | ||||||
20 | year thereafter to the
Regional Transportation Authority. The | ||||||
21 | allocation shall be made in an
amount equal to the average | ||||||
22 | monthly distribution during the preceding
calendar year | ||||||
23 | (excluding the 2 months of lowest receipts) and the
allocation | ||||||
24 | shall include the amount of average monthly distribution from
| ||||||
25 | the Regional Transportation Authority Occupation and Use Tax | ||||||
26 | Replacement
Fund. The distribution made in July 1992 and each |
| |||||||
| |||||||
1 | year thereafter under
this paragraph and the preceding | ||||||
2 | paragraph shall be reduced by the amount
allocated and | ||||||
3 | disbursed under this paragraph in the preceding calendar
year. | ||||||
4 | The Department of Revenue shall prepare and certify to the
| ||||||
5 | Comptroller for disbursement the allocations made in | ||||||
6 | accordance with this
paragraph.
| ||||||
7 | (o) Failure to adopt a budget ordinance or otherwise to | ||||||
8 | comply with
Section 4.01 of this Act or to adopt a Five-year | ||||||
9 | Capital Program or otherwise to
comply with paragraph (b) of | ||||||
10 | Section 2.01 of this Act shall not affect
the validity of any | ||||||
11 | tax imposed by the Authority otherwise in conformity
with law.
| ||||||
12 | (p) At no time shall a public transportation tax or motor | ||||||
13 | vehicle
parking tax authorized under paragraphs (b), (c) and | ||||||
14 | (d) of this Section
be in effect at the same time as any | ||||||
15 | retailers' occupation, use or
service occupation tax | ||||||
16 | authorized under paragraphs (e), (f) and (g) of
this Section is | ||||||
17 | in effect.
| ||||||
18 | Any taxes imposed under the authority provided in | ||||||
19 | paragraphs (b), (c)
and (d) shall remain in effect only until | ||||||
20 | the time as any tax
authorized by paragraphs (e), (f) or (g) of | ||||||
21 | this Section are imposed and
becomes effective. Once any tax | ||||||
22 | authorized by paragraphs (e), (f) or (g)
is imposed the Board | ||||||
23 | may not reimpose taxes as authorized in paragraphs
(b), (c) and | ||||||
24 | (d) of the Section unless any tax authorized by
paragraphs (e), | ||||||
25 | (f) or (g) of this Section becomes ineffective by means
other | ||||||
26 | than an ordinance of the Board.
|
| |||||||
| |||||||
1 | (q) Any existing rights, remedies and obligations | ||||||
2 | (including
enforcement by the Regional Transportation | ||||||
3 | Authority) arising under any
tax imposed under paragraphs (b), | ||||||
4 | (c) or (d) of this Section shall not
be affected by the | ||||||
5 | imposition of a tax under paragraphs (e), (f) or (g)
of this | ||||||
6 | Section.
| ||||||
7 | (Source: P.A. 95-708, eff. 1-18-08.)
| ||||||
8 | Section 65. The Water Commission Act of 1985 is amended by | ||||||
9 | changing Section 4 as follows:
| ||||||
10 | (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
| ||||||
11 | Sec. 4. (a) The board of commissioners of any county water | ||||||
12 | commission
may, by ordinance, impose throughout the territory | ||||||
13 | of the commission any or
all of the taxes provided in this | ||||||
14 | Section for its corporate purposes.
However, no county water | ||||||
15 | commission may impose any such tax unless the
commission | ||||||
16 | certifies the proposition of imposing the tax to the proper
| ||||||
17 | election officials, who shall submit the proposition to the | ||||||
18 | voters residing
in the territory at an election in accordance | ||||||
19 | with the general election
law, and the proposition has been | ||||||
20 | approved by a majority of those voting on
the proposition.
| ||||||
21 | The proposition shall be in the form provided in Section 5 | ||||||
22 | or shall be
substantially in the following form:
| ||||||
23 | -------------------------------------------------------------
| ||||||
24 | Shall the (insert corporate
|
| |||||||
| |||||||
1 | name of county water commission) YES
| ||||||
2 | impose (state type of tax or ------------------------
| ||||||
3 | taxes to be imposed) at the NO
| ||||||
4 | rate of 1/4%?
| ||||||
5 | -------------------------------------------------------------
| ||||||
6 | Taxes imposed under this Section and civil penalties | ||||||
7 | imposed
incident thereto shall be collected and enforced by the | ||||||
8 | State Department of
Revenue. The Department shall have the | ||||||
9 | power to administer and enforce the
taxes and to determine all | ||||||
10 | rights for refunds for erroneous payments of
the taxes.
| ||||||
11 | (b) The board of commissioners may impose a County Water | ||||||
12 | Commission
Retailers' Occupation Tax upon all persons engaged | ||||||
13 | in the business of
selling tangible personal property at retail | ||||||
14 | in the territory of the
commission at a rate of 1/4% of the | ||||||
15 | gross receipts from the sales made in
the course of such | ||||||
16 | business within the territory. The tax imposed under
this | ||||||
17 | paragraph and all civil penalties that may be assessed as an | ||||||
18 | incident
thereof shall be collected and enforced by the State | ||||||
19 | Department of Revenue.
The Department shall have full power to | ||||||
20 | administer and enforce this
paragraph; to collect all taxes and | ||||||
21 | penalties due hereunder; to dispose of
taxes and penalties so | ||||||
22 | collected in the manner hereinafter provided; and to
determine | ||||||
23 | all rights to credit memoranda arising on account of the
| ||||||
24 | erroneous payment of tax or penalty hereunder. In the | ||||||
25 | administration of,
and compliance with, this paragraph, the | ||||||
26 | Department and persons who are
subject to this paragraph shall |
| |||||||
| |||||||
1 | have the same rights, remedies, privileges,
immunities, powers | ||||||
2 | and duties, and be subject to the same conditions,
| ||||||
3 | restrictions, limitations, penalties, exclusions, exemptions | ||||||
4 | and
definitions of terms, and employ the same modes of | ||||||
5 | procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1c, 1d, | ||||||
6 | 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions | ||||||
7 | therein other than the State rate of tax
except that food for | ||||||
8 | human consumption that is to be consumed off the
premises where | ||||||
9 | it is sold (other than alcoholic beverages, soft drinks, and
| ||||||
10 | food that has been prepared for immediate consumption) and | ||||||
11 | prescription
and nonprescription medicine, drugs, medical | ||||||
12 | appliances , modifications to a motor vehicle for the purpose of | ||||||
13 | rendering it usable by a disabled person, and insulin, urine
| ||||||
14 | testing materials, syringes, and needles used by diabetics, for | ||||||
15 | human use,
shall not be subject to tax hereunder), 2c, 3 | ||||||
16 | (except as to the disposition
of taxes and penalties | ||||||
17 | collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 5k, | ||||||
18 | 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
the Retailers' | ||||||
19 | Occupation Tax Act and Section 3-7 of the Uniform Penalty
and | ||||||
20 | Interest Act, as fully as if those provisions were set forth | ||||||
21 | herein.
| ||||||
22 | Persons subject to any tax imposed under the authority | ||||||
23 | granted in this
paragraph may reimburse themselves for their | ||||||
24 | seller's tax liability
hereunder by separately stating the tax | ||||||
25 | as an additional charge, which
charge may be stated in | ||||||
26 | combination, in a single amount, with State taxes
that sellers |
| |||||||
| |||||||
1 | are required to collect under the Use Tax Act and under
| ||||||
2 | subsection (e) of Section 4.03 of the Regional Transportation | ||||||
3 | Authority
Act, in accordance with such bracket schedules as the | ||||||
4 | Department may prescribe.
| ||||||
5 | Whenever the Department determines that a refund should be | ||||||
6 | made under this
paragraph to a claimant instead of issuing a | ||||||
7 | credit memorandum, the Department
shall notify the State | ||||||
8 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
9 | amount specified, and to the person named, in the notification
| ||||||
10 | from the Department. The refund shall be paid by the State | ||||||
11 | Treasurer out
of a county water commission tax fund established | ||||||
12 | under paragraph (g) of
this Section.
| ||||||
13 | For the purpose of determining whether a tax authorized | ||||||
14 | under this paragraph
is applicable, a retail sale by a producer | ||||||
15 | of coal or other mineral mined
in Illinois is a sale at retail | ||||||
16 | at the place where the coal or other mineral
mined in Illinois | ||||||
17 | is extracted from the earth. This paragraph does not
apply to | ||||||
18 | coal or other mineral when it is delivered or shipped by the | ||||||
19 | seller
to the purchaser at a point outside Illinois so that the | ||||||
20 | sale is exempt
under the Federal Constitution as a sale in | ||||||
21 | interstate or foreign commerce.
| ||||||
22 | If a tax is imposed under this subsection (b) a tax shall | ||||||
23 | also be
imposed under subsections (c) and (d) of this Section.
| ||||||
24 | No tax shall be imposed or collected under this subsection | ||||||
25 | on the sale of a motor vehicle in this State to a resident of | ||||||
26 | another state if that motor vehicle will not be titled in this |
| |||||||
| |||||||
1 | State.
| ||||||
2 | Nothing in this paragraph shall be construed to authorize a | ||||||
3 | county water
commission to impose a tax upon the privilege of | ||||||
4 | engaging in any
business which under the Constitution of the | ||||||
5 | United States may not be made
the subject of taxation by this | ||||||
6 | State.
| ||||||
7 | (c) If a tax has been imposed under subsection (b), a
| ||||||
8 | County Water Commission Service Occupation
Tax shall
also be | ||||||
9 | imposed upon all persons engaged, in the territory of the
| ||||||
10 | commission, in the business of making sales of service, who, as | ||||||
11 | an
incident to making the sales of service, transfer tangible | ||||||
12 | personal
property within the territory. The tax rate shall be | ||||||
13 | 1/4% of the selling
price of tangible personal property so | ||||||
14 | transferred within the territory.
The tax imposed under this | ||||||
15 | paragraph and all civil penalties that may be
assessed as an | ||||||
16 | incident thereof shall be collected and enforced by the
State | ||||||
17 | Department of Revenue. The Department shall have full power to
| ||||||
18 | administer and enforce this paragraph; to collect all taxes and | ||||||
19 | penalties
due hereunder; to dispose of taxes and penalties so | ||||||
20 | collected in the manner
hereinafter provided; and to determine | ||||||
21 | all rights to credit memoranda
arising on account of the | ||||||
22 | erroneous payment of tax or penalty hereunder.
In the | ||||||
23 | administration of, and compliance with, this paragraph, the
| ||||||
24 | Department and persons who are subject to this paragraph shall | ||||||
25 | have the
same rights, remedies, privileges, immunities, powers | ||||||
26 | and duties, and be
subject to the same conditions, |
| |||||||
| |||||||
1 | restrictions, limitations, penalties,
exclusions, exemptions | ||||||
2 | and definitions of terms, and employ the same modes
of | ||||||
3 | procedure, as are prescribed in Sections 1a-1, 2 (except that | ||||||
4 | the
reference to State in the definition of supplier | ||||||
5 | maintaining a place of
business in this State shall mean the | ||||||
6 | territory of the commission), 2a, 3
through 3-50 (in respect to | ||||||
7 | all provisions therein other than the State
rate of tax except | ||||||
8 | that food for human consumption that is to be consumed
off the | ||||||
9 | premises where it is sold (other than alcoholic beverages, soft
| ||||||
10 | drinks, and food that has been prepared for immediate | ||||||
11 | consumption) and
prescription and nonprescription medicines, | ||||||
12 | drugs, medical appliances , modifications to a motor vehicle for | ||||||
13 | the purpose of rendering it usable by a disabled person, and
| ||||||
14 | insulin, urine testing materials, syringes, and needles used by | ||||||
15 | diabetics,
for human use, shall not be subject to tax | ||||||
16 | hereunder), 4 (except that the
reference to the State shall be | ||||||
17 | to the territory of the commission), 5, 7,
8 (except that the | ||||||
18 | jurisdiction to which the tax shall be a debt to the
extent | ||||||
19 | indicated in that Section 8 shall be the commission), 9 (except | ||||||
20 | as
to the disposition of taxes and penalties collected and | ||||||
21 | except that the
returned merchandise credit for this tax may | ||||||
22 | not be taken against any State
tax), 10, 11, 12 (except the | ||||||
23 | reference therein to Section 2b of the
Retailers' Occupation | ||||||
24 | Tax Act), 13 (except that any reference to the State
shall mean | ||||||
25 | the territory of the commission), the first paragraph of | ||||||
26 | Section
15, 15.5, 16, 17, 18, 19 and 20 of the Service |
| |||||||
| |||||||
1 | Occupation Tax Act as fully
as if those provisions were set | ||||||
2 | forth herein.
| ||||||
3 | Persons subject to any tax imposed under the authority | ||||||
4 | granted in
this paragraph may reimburse themselves for their | ||||||
5 | serviceman's tax liability
hereunder by separately stating the | ||||||
6 | tax as an additional charge, which
charge may be stated in | ||||||
7 | combination, in a single amount, with State tax
that servicemen | ||||||
8 | are authorized to collect under the Service Use Tax Act,
and | ||||||
9 | any tax for which servicemen may be liable under subsection (f) | ||||||
10 | of
Sec. 4.03 of the Regional Transportation Authority Act, in | ||||||
11 | accordance
with such bracket schedules as the Department may | ||||||
12 | prescribe.
| ||||||
13 | Whenever the Department determines that a refund should be | ||||||
14 | made under this
paragraph to a claimant instead of issuing a | ||||||
15 | credit memorandum, the Department
shall notify the State | ||||||
16 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
17 | amount specified, and to the person named, in the notification | ||||||
18 | from
the Department. The refund shall be paid by the State | ||||||
19 | Treasurer out of a
county water commission tax fund established | ||||||
20 | under paragraph (g) of this
Section.
| ||||||
21 | Nothing in this paragraph shall be construed to authorize a | ||||||
22 | county water
commission to impose a tax upon the privilege of | ||||||
23 | engaging in any business
which under the Constitution of the | ||||||
24 | United States may not be made the
subject of taxation by the | ||||||
25 | State.
| ||||||
26 | (d) If a tax has been imposed under subsection (b), a tax |
| |||||||
| |||||||
1 | shall
also imposed upon the privilege of using, in the | ||||||
2 | territory of the
commission, any item of tangible personal | ||||||
3 | property that is purchased
outside the territory at retail from | ||||||
4 | a retailer, and that is titled or
registered with an agency of | ||||||
5 | this State's government, at a rate of 1/4% of
the selling price | ||||||
6 | of the tangible personal property within the territory,
as | ||||||
7 | "selling price" is defined in the Use Tax Act. The tax shall be | ||||||
8 | collected
from persons whose Illinois address for titling or | ||||||
9 | registration purposes
is given as being in the territory. The | ||||||
10 | tax shall be collected by the
Department of Revenue for a | ||||||
11 | county water commission. The tax must be paid
to the State, or | ||||||
12 | an exemption determination must be obtained from the
Department | ||||||
13 | of Revenue, before the title or certificate of registration for
| ||||||
14 | the property may be issued. The tax or proof of exemption may | ||||||
15 | be
transmitted to the Department by way of the State agency | ||||||
16 | with which, or the
State officer with whom, the tangible | ||||||
17 | personal property must be titled or
registered if the | ||||||
18 | Department and the State agency or State officer
determine that | ||||||
19 | this procedure will expedite the processing of applications
for | ||||||
20 | title or registration.
| ||||||
21 | The Department shall have full power to administer and | ||||||
22 | enforce this
paragraph; to collect all taxes, penalties and | ||||||
23 | interest due hereunder; to
dispose of taxes, penalties and | ||||||
24 | interest so collected in the manner
hereinafter provided; and | ||||||
25 | to determine all rights to credit memoranda or
refunds arising | ||||||
26 | on account of the erroneous payment of tax, penalty or
interest |
| |||||||
| |||||||
1 | hereunder. In the administration of, and compliance with this
| ||||||
2 | paragraph, the Department and persons who are subject to this | ||||||
3 | paragraph
shall have the same rights, remedies, privileges, | ||||||
4 | immunities, powers and
duties, and be subject to the same | ||||||
5 | conditions, restrictions, limitations,
penalties, exclusions, | ||||||
6 | exemptions and definitions of terms and employ the
same modes | ||||||
7 | of procedure, as are prescribed in Sections 2 (except the
| ||||||
8 | definition of "retailer maintaining a place of business in this | ||||||
9 | State"), 3
through 3-80 (except provisions pertaining to the | ||||||
10 | State rate of tax,
and except provisions concerning collection | ||||||
11 | or refunding of the tax by
retailers, and except that food for | ||||||
12 | human consumption that is to be
consumed off the premises where | ||||||
13 | it is sold (other than alcoholic beverages,
soft drinks, and | ||||||
14 | food that has been prepared for immediate consumption)
and | ||||||
15 | prescription and nonprescription medicines, drugs, medical | ||||||
16 | appliances , modifications to a motor vehicle for the purpose of | ||||||
17 | rendering it usable by a disabled person,
and insulin, urine | ||||||
18 | testing materials, syringes, and needles used by
diabetics, for | ||||||
19 | human use, shall not be subject to tax hereunder), 4, 11,
12, | ||||||
20 | 12a, 14, 15, 19 (except the portions pertaining to claims by | ||||||
21 | retailers
and except the last paragraph concerning refunds), | ||||||
22 | 20, 21 and 22 of the Use
Tax Act and Section 3-7 of the Uniform | ||||||
23 | Penalty and Interest Act that are
not inconsistent with this | ||||||
24 | paragraph, as fully as if those provisions were
set forth | ||||||
25 | herein.
| ||||||
26 | Whenever the Department determines that a refund should be |
| |||||||
| |||||||
1 | made under this
paragraph to a claimant instead of issuing a | ||||||
2 | credit memorandum, the Department
shall notify the State | ||||||
3 | Comptroller, who shall cause the order
to be drawn for the | ||||||
4 | amount specified, and to the person named, in the
notification | ||||||
5 | from the Department. The refund shall be paid by the State
| ||||||
6 | Treasurer out of a county water commission tax fund established
| ||||||
7 | under paragraph (g) of this Section.
| ||||||
8 | (e) A certificate of registration issued by the State | ||||||
9 | Department of
Revenue to a retailer under the Retailers' | ||||||
10 | Occupation Tax Act or under the
Service Occupation Tax Act | ||||||
11 | shall permit the registrant to engage in a
business that is | ||||||
12 | taxed under the tax imposed under paragraphs (b), (c)
or (d) of | ||||||
13 | this Section and no additional registration shall be required | ||||||
14 | under
the tax. A certificate issued under the Use Tax Act or | ||||||
15 | the Service Use Tax
Act shall be applicable with regard to any | ||||||
16 | tax imposed under paragraph (c)
of this Section.
| ||||||
17 | (f) Any ordinance imposing or discontinuing any tax under | ||||||
18 | this Section
shall be adopted and a certified copy thereof | ||||||
19 | filed with the Department on
or before June 1, whereupon the | ||||||
20 | Department of Revenue shall proceed to
administer and enforce | ||||||
21 | this Section on behalf of the county water
commission as of | ||||||
22 | September 1 next following the adoption and filing.
Beginning | ||||||
23 | January 1, 1992, an ordinance or resolution imposing or
| ||||||
24 | discontinuing the tax hereunder shall be adopted and a | ||||||
25 | certified copy
thereof filed with the Department on or before | ||||||
26 | the first day of July,
whereupon the Department shall proceed |
| |||||||
| |||||||
1 | to administer and enforce this
Section as of the first day of | ||||||
2 | October next following such adoption and
filing. Beginning | ||||||
3 | January 1, 1993, an ordinance or resolution imposing or
| ||||||
4 | discontinuing the tax hereunder shall be adopted and a | ||||||
5 | certified copy
thereof filed with the Department on or before | ||||||
6 | the first day of October,
whereupon the Department shall | ||||||
7 | proceed to administer and enforce this
Section as of the first | ||||||
8 | day of January next following such adoption and filing.
| ||||||
9 | (g) The State Department of Revenue shall, upon collecting | ||||||
10 | any taxes as
provided in this Section, pay the taxes over to | ||||||
11 | the State Treasurer as
trustee for the commission. The taxes | ||||||
12 | shall be held in a trust fund outside
the State Treasury. On or | ||||||
13 | before the 25th day of each calendar month, the
State | ||||||
14 | Department of Revenue shall prepare and certify to the | ||||||
15 | Comptroller of
the State of Illinois the amount to be paid to | ||||||
16 | the commission, which shall be
the then balance in the fund, | ||||||
17 | less any amount determined by the Department
to be necessary | ||||||
18 | for the payment of refunds. Within 10 days after receipt by
the | ||||||
19 | Comptroller of the certification of the amount to be paid to | ||||||
20 | the
commission, the Comptroller shall cause an order to be | ||||||
21 | drawn for the payment
for the amount in accordance with the | ||||||
22 | direction in the certification.
| ||||||
23 | (Source: P.A. 92-221, eff. 8-2-01; 93-1068, eff. 1-15-05.)
| ||||||
24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.".
|