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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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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)
| ||||||||||||||||||||||||
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, | ||||||||||||||||||||||||
17 | the Gas Use Tax Law, the Hotel Operators' Occupation Tax Act, | ||||||||||||||||||||||||
18 | the Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco | ||||||||||||||||||||||||
19 | Products Tax Act of 1995, the Bingo License and Tax Act, the | ||||||||||||||||||||||||
20 | Charitable Games Act, the Illinois Pull Tabs and Jar Games Act, | ||||||||||||||||||||||||
21 | and the Liquor Control Act of 1934, it shall issue a credit | ||||||||||||||||||||||||
22 | memorandum to the taxpayer without the necessity of the | ||||||||||||||||||||||||
23 | taxpayer filing a claim for credit. The time period during |
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| |||||||
1 | which the Department may issue a credit memorandum under this | ||||||
2 | Section shall be limited to the period of 3 years from the date | ||||||
3 | of the overpayment by the taxpayer. Issuance of a credit | ||||||
4 | memorandum under this Section is subject to the offset | ||||||
5 | provisions of Section 2505-275 of this Act.
| ||||||
6 | Section 7. The State Finance Act is amended by changing | ||||||
7 | Section 13.3 as follows:
| ||||||
8 | (30 ILCS 105/13.3) (from Ch. 127, par. 149.3)
| ||||||
9 | Sec. 13.3. Petty cash funds; purchasing cards.
| ||||||
10 | (a) Any State agency may establish and maintain petty cash
| ||||||
11 | funds for the purpose of making change, purchasing items of | ||||||
12 | small cost,
payment of postage due, and for other nominal | ||||||
13 | expenditures which cannot
be administered economically and | ||||||
14 | efficiently through customary procurement
practices.
| ||||||
15 | Petty cash funds may be established and maintained from | ||||||
16 | moneys which
are appropriated to the agency for Contractual | ||||||
17 | Services. In the case of
an agency which receives a single | ||||||
18 | appropriation for its ordinary and
contingent expenses, the | ||||||
19 | agency may establish a petty cash fund from the
appropriated | ||||||
20 | funds.
| ||||||
21 | Before the establishment of any petty cash fund, the agency | ||||||
22 | shall
submit to the State Comptroller a survey of the need for | ||||||
23 | the fund. The
survey shall also establish that sufficient | ||||||
24 | internal accounting controls
exist. The Comptroller shall |
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| |||||||
1 | investigate such need and if he determines
that it exists and | ||||||
2 | that adequate accounting controls exist, shall
approve the | ||||||
3 | establishment of the fund. The Comptroller shall have the
power | ||||||
4 | to revoke any approval previously made under this Section.
| ||||||
5 | Petty cash funds established under this Section shall be | ||||||
6 | operated and
maintained on the imprest system and no fund shall | ||||||
7 | exceed $1,000, except that
the Department of Revenue may | ||||||
8 | maintain a fund not exceeding $2,000 for each Department of | ||||||
9 | Revenue facility and the Secretary of State may maintain a fund | ||||||
10 | of not exceeding $2,000 for each
Chicago Motor Vehicle | ||||||
11 | Facility, each Springfield Public Service Facility, and
the | ||||||
12 | Motor Vehicle Facilities in Champaign, Decatur, Marion, | ||||||
13 | Naperville, Peoria,
Rockford, Granite City, Quincy, and | ||||||
14 | Carbondale, to be used solely for the
purpose of making change. | ||||||
15 | Except for purchases made by procurement card as
provided in | ||||||
16 | subsection (b) of this Section, single transactions shall be
| ||||||
17 | limited to amounts less
than $50, and all transactions | ||||||
18 | occurring in the fund shall be reported and
accounted for as | ||||||
19 | may be provided in the uniform accounting system developed by
| ||||||
20 | the State Comptroller and the rules and regulations | ||||||
21 | implementing that
accounting system. All amounts in any such | ||||||
22 | fund of less than $1,000 but over
$100 shall be kept in a | ||||||
23 | checking account in a bank, or savings and loan
association or | ||||||
24 | trust company which is insured by the United States government
| ||||||
25 | or any agency of the United States government, except that in | ||||||
26 | funds maintained
in each Department of Revenue Facility, |
| |||||||
| |||||||
1 | Chicago Motor Vehicle Facilities, each Springfield Public | ||||||
2 | Service Facility,
and the Motor Vehicle Facilities in | ||||||
3 | Champaign, Decatur, Marion, Naperville,
Peoria, Rockford, | ||||||
4 | Granite City, Quincy, and Carbondale, all amounts in the fund
| ||||||
5 | may be retained on the premises of such facilities.
| ||||||
6 | No bank or savings and loan association shall receive | ||||||
7 | public funds as
permitted by this Section, unless it has | ||||||
8 | complied with the requirements
established pursuant to Section | ||||||
9 | 6 of "An Act relating to certain
investments of public funds by | ||||||
10 | public agencies", approved July 23, 1943, as
now or hereafter | ||||||
11 | amended.
| ||||||
12 | An internal audit shall be performed of any petty cash fund | ||||||
13 | which
receives reimbursements of more than $5,000 in a fiscal | ||||||
14 | year.
| ||||||
15 | Upon succession in the custodianship of any petty cash | ||||||
16 | fund, both the
former and successor custodians shall sign a | ||||||
17 | statement, in triplicate,
showing the exact status of the fund | ||||||
18 | at the time of the transfer. The
original copy shall be kept on | ||||||
19 | file in the office wherein the fund
exists, and each signer | ||||||
20 | shall be entitled to retain one copy.
| ||||||
21 | (b) The Comptroller may provide by rule for the use of | ||||||
22 | purchasing cards by
State agencies to pay for purchases that | ||||||
23 | otherwise may be paid out of the
agency's petty cash fund. Any | ||||||
24 | rule adopted hereunder shall impose a single
transaction limit, | ||||||
25 | which shall not be greater than $500.
| ||||||
26 | The rules of the Comptroller may include but shall not be |
| |||||||
| |||||||
1 | limited to:
| ||||||
2 | (1) standards for the issuance of purchasing cards to | ||||||
3 | State agencies
based upon the best interests of the State;
| ||||||
4 | (2) procedures for recording purchasing card | ||||||
5 | transactions
within the State accounting system, which may | ||||||
6 | provide for summary reporting;
| ||||||
7 | (3) procedures for auditing purchasing card | ||||||
8 | transactions on a
post-payment basis;
| ||||||
9 | (4) standards for awarding contracts with a purchasing | ||||||
10 | card vendor to
acquire purchasing cards for use by State | ||||||
11 | agencies; and
| ||||||
12 | (5) procedures for the Comptroller to charge against | ||||||
13 | State agency
appropriations for payment of purchasing card | ||||||
14 | expenditures without the
use of the voucher and warrant | ||||||
15 | system.
| ||||||
16 | (c) As used in this Section, "State agency" means any | ||||||
17 | department,
officer, authority, public corporation, | ||||||
18 | quasi-public corporation,
commission, board, institution, | ||||||
19 | State college or university, or other
public agency created by | ||||||
20 | the State, other than units of local government
and school | ||||||
21 | districts.
| ||||||
22 | (Source: P.A. 90-33, eff. 6-27-97; 91-704, eff. 7-1-00.)
| ||||||
23 | (30 ILCS 210/8 rep.)
| ||||||
24 | Section 10. The Illinois State Collection Act of 1986 is | ||||||
25 | amended by repealing Section 8.
|
| |||||||
| |||||||
1 | Section 15. The Illinois Procurement Code is amended by | ||||||
2 | changing Sections 50-11 and 50-60 as follows:
| ||||||
3 | (30 ILCS 500/50-11)
| ||||||
4 | Sec. 50-11. Debt delinquency.
| ||||||
5 | (a) No person shall submit a bid for or enter into a | ||||||
6 | contract with a State
agency under this Code if that person | ||||||
7 | knows or should know that he or she or
any affiliate is
| ||||||
8 | delinquent in the payment of any debt to the State, unless the | ||||||
9 | person or
affiliate has
entered into a deferred payment plan to | ||||||
10 | pay off the debt. For purposes of this
Section, the phrase | ||||||
11 | "delinquent in the payment of any debt" shall be determined
by | ||||||
12 | the Debt Collection Board or, after the effective date of this | ||||||
13 | amendatory Act of the 96th General Assembly, the Department of | ||||||
14 | Revenue .
For purposes of this Section, the term "affiliate" | ||||||
15 | means any entity that (1)
directly,
indirectly, or | ||||||
16 | constructively controls another entity, (2) is directly,
| ||||||
17 | indirectly, or
constructively controlled by another entity, or | ||||||
18 | (3) is subject to the control
of
a common
entity. For purposes | ||||||
19 | of this subsection (a), a person controls an entity if the
| ||||||
20 | person owns,
directly or individually, more than 10% of the | ||||||
21 | voting securities of that
entity.
As used in
this subsection | ||||||
22 | (a), the term "voting security" means a security that (1)
| ||||||
23 | confers upon the
holder the right to vote for the election of | ||||||
24 | members of the board of directors
or similar
governing body of |
| |||||||
| |||||||
1 | the business or (2) is convertible into, or entitles the
holder | ||||||
2 | to receive
upon its exercise, a security that confers such a | ||||||
3 | right to vote. A general
partnership
interest is a voting | ||||||
4 | security.
| ||||||
5 | (b) Every bid submitted to and contract executed by the | ||||||
6 | State shall contain
a certification by the bidder or contractor | ||||||
7 | that the contractor and its
affiliate is not barred
from being | ||||||
8 | awarded a contract under this Section and that the contractor
| ||||||
9 | acknowledges that the contracting State agency may declare the | ||||||
10 | contract void if
the certification completed pursuant to this | ||||||
11 | subsection (b) is false.
| ||||||
12 | (Source: P.A. 92-404, eff. 7-1-02; 93-25, eff. 6-20-03.)
| ||||||
13 | (30 ILCS 500/50-60)
| ||||||
14 | Sec. 50-60. Voidable contracts.
| ||||||
15 | (a) If any contract is entered into or purchase
or | ||||||
16 | expenditure of funds is made in violation of this Code or any | ||||||
17 | other law,
the contract may be declared void by the chief | ||||||
18 | procurement officer or may be
ratified and affirmed,
provided | ||||||
19 | the chief procurement officer determines that ratification is | ||||||
20 | in the
best interests of the
State. If the contract is ratified | ||||||
21 | and affirmed, it shall be without prejudice
to the State's | ||||||
22 | rights to any appropriate damages.
| ||||||
23 | (b) If, during the term of a contract, the contracting | ||||||
24 | agency determines
that the contractor is delinquent in the | ||||||
25 | payment of debt as set forth in
Section 50-11 of this Code, the |
| |||||||
| |||||||
1 | State agency may declare the contract void if
it determines | ||||||
2 | that voiding the contract is in the best interests of the | ||||||
3 | State.
The Debt Collection Board or, after the effective date | ||||||
4 | of this amendatory Act of the 96th General Assembly, the | ||||||
5 | Department of Revenue shall adopt rules for the implementation | ||||||
6 | of this
subsection (b).
| ||||||
7 | (c) If, during the term of a contract, the contracting | ||||||
8 | agency determines
that the contractor is in violation of | ||||||
9 | Section 50-10.5 of this Code, the
contracting
agency shall | ||||||
10 | declare the contract void.
| ||||||
11 | (Source: P.A. 92-404, eff. 7-1-02; 93-600, eff. 1-1-04.)
| ||||||
12 | Section 20. The Illinois Income Tax Act is amended by | ||||||
13 | changing Sections 201, 203, 204, 205, 207, 214, 304, 502, 506, | ||||||
14 | 601, 701, 702, 703, 704A, 804, 909, 911, 1002, 1101, and 1405.4 | ||||||
15 | as follows:
| ||||||
16 | (35 ILCS 5/201) (from Ch. 120, par. 2-201)
| ||||||
17 | Sec. 201. Tax Imposed.
| ||||||
18 | (a) In general. A tax measured by net income is hereby | ||||||
19 | imposed on every
individual, corporation, trust and estate for | ||||||
20 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
21 | of earning or receiving income in or
as a resident of this | ||||||
22 | State. Such tax shall be in addition to all other
occupation or | ||||||
23 | privilege taxes imposed by this State or by any municipal
| ||||||
24 | corporation or political subdivision thereof.
|
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| |||||||
1 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
2 | Section shall be
determined as follows, except as adjusted by | ||||||
3 | subsection (d-1):
| ||||||
4 | (1) In the case of an individual, trust or estate, for | ||||||
5 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
6 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
7 | year.
| ||||||
8 | (2) In the case of an individual, trust or estate, for | ||||||
9 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
10 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
11 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
12 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
13 | 3% of the
taxpayer's net income for the period after June | ||||||
14 | 30, 1989, as calculated
under Section 202.3.
| ||||||
15 | (3) In the case of an individual, trust or estate, for | ||||||
16 | taxable years
beginning after June 30, 1989, an amount | ||||||
17 | equal to 3% of the taxpayer's net
income for the taxable | ||||||
18 | year.
| ||||||
19 | (4) (Blank).
| ||||||
20 | (5) (Blank).
| ||||||
21 | (6) In the case of a corporation, for taxable years
| ||||||
22 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
23 | taxpayer's net income for the taxable year.
| ||||||
24 | (7) In the case of a corporation, for taxable years | ||||||
25 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
26 | 1989, an amount equal to the sum of
(i) 4% of the |
| |||||||
| |||||||
1 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
2 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
3 | taxpayer's net
income for the period after June 30, 1989, | ||||||
4 | as calculated under Section
202.3.
| ||||||
5 | (8) In the case of a corporation, for taxable years | ||||||
6 | beginning after
June 30, 1989, an amount equal to 4.8% of | ||||||
7 | the taxpayer's net income for the
taxable year.
| ||||||
8 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
9 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
10 | income
tax, there is also hereby imposed the Personal Property | ||||||
11 | Tax Replacement
Income Tax measured by net income on every | ||||||
12 | corporation (including Subchapter
S corporations), partnership | ||||||
13 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
14 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
15 | income in or as a resident of this State. The Personal Property
| ||||||
16 | Tax Replacement Income Tax shall be in addition to the income | ||||||
17 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
18 | addition to all other
occupation or privilege taxes imposed by | ||||||
19 | this State or by any municipal
corporation or political | ||||||
20 | subdivision thereof.
| ||||||
21 | (d) Additional Personal Property Tax Replacement Income | ||||||
22 | Tax Rates.
The personal property tax replacement income tax | ||||||
23 | imposed by this subsection
and subsection (c) of this Section | ||||||
24 | in the case of a corporation, other
than a Subchapter S | ||||||
25 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
26 | be an additional amount equal to
2.85% of such taxpayer's net |
| |||||||
| |||||||
1 | income for the taxable year, except that
beginning on January | ||||||
2 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
3 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
4 | partnership, trust or a Subchapter S corporation shall be an | ||||||
5 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
6 | for the taxable year.
| ||||||
7 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
8 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
9 | Illinois Insurance Code,
whose state or country of domicile | ||||||
10 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
11 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
12 | are 50% or more of its total insurance
premiums as determined | ||||||
13 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
14 | that for purposes of this determination premiums from | ||||||
15 | reinsurance do
not include premiums from inter-affiliate | ||||||
16 | reinsurance arrangements),
beginning with taxable years ending | ||||||
17 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
18 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
19 | increased) to the rate at which the total amount of tax imposed | ||||||
20 | under this Act,
net of all credits allowed under this Act, | ||||||
21 | shall equal (i) the total amount of
tax that would be imposed | ||||||
22 | on the foreign insurer's net income allocable to
Illinois for | ||||||
23 | the taxable year by such foreign insurer's state or country of
| ||||||
24 | domicile if that net income were subject to all income taxes | ||||||
25 | and taxes
measured by net income imposed by such foreign | ||||||
26 | insurer's state or country of
domicile, net of all credits |
| |||||||
| |||||||
1 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
2 | income by the foreign insurer's state of domicile.
For the | ||||||
3 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
4 | a
mutual insurer under common management.
| ||||||
5 | (1) For the purposes of subsection (d-1), in no event | ||||||
6 | shall the sum of the
rates of tax imposed by subsections | ||||||
7 | (b) and (d) be reduced below the rate at
which the sum of:
| ||||||
8 | (A) the total amount of tax imposed on such foreign | ||||||
9 | insurer under
this Act for a taxable year, net of all | ||||||
10 | credits allowed under this Act, plus
| ||||||
11 | (B) the privilege tax imposed by Section 409 of the | ||||||
12 | Illinois Insurance
Code, the fire insurance company | ||||||
13 | tax imposed by Section 12 of the Fire
Investigation | ||||||
14 | Act, and the fire department taxes imposed under | ||||||
15 | Section 11-10-1
of the Illinois Municipal Code,
| ||||||
16 | equals 1.25% for taxable years ending prior to December 31, | ||||||
17 | 2003, or
1.75% for taxable years ending on or after | ||||||
18 | December 31, 2003, of the net
taxable premiums written for | ||||||
19 | the taxable year,
as described by subsection (1) of Section | ||||||
20 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
21 | no event increase the rates imposed under subsections
(b) | ||||||
22 | and (d).
| ||||||
23 | (2) Any reduction in the rates of tax imposed by this | ||||||
24 | subsection shall be
applied first against the rates imposed | ||||||
25 | by subsection (b) and only after the
tax imposed by | ||||||
26 | subsection (a) net of all credits allowed under this |
| |||||||
| |||||||
1 | Section
other than the credit allowed under subsection (i) | ||||||
2 | has been reduced to zero,
against the rates imposed by | ||||||
3 | subsection (d).
| ||||||
4 | This subsection (d-1) is exempt from the provisions of | ||||||
5 | Section 250.
| ||||||
6 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
7 | against the Personal Property Tax Replacement Income Tax for
| ||||||
8 | investment in qualified property.
| ||||||
9 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
10 | of
the basis of qualified property placed in service during | ||||||
11 | the taxable year,
provided such property is placed in | ||||||
12 | service on or after
July 1, 1984. There shall be allowed an | ||||||
13 | additional credit equal
to .5% of the basis of qualified | ||||||
14 | property placed in service during the
taxable year, | ||||||
15 | provided such property is placed in service on or
after | ||||||
16 | July 1, 1986, and the taxpayer's base employment
within | ||||||
17 | Illinois has increased by 1% or more over the preceding | ||||||
18 | year as
determined by the taxpayer's employment records | ||||||
19 | filed with the
Illinois Department of Employment Security. | ||||||
20 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
21 | met the 1% growth in base employment for
the first year in | ||||||
22 | which they file employment records with the Illinois
| ||||||
23 | Department of Employment Security. The provisions added to | ||||||
24 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
25 | Act 87-895) shall be
construed as declaratory of existing | ||||||
26 | law and not as a new enactment. If,
in any year, the |
| |||||||
| |||||||
1 | increase in base employment within Illinois over the
| ||||||
2 | preceding year is less than 1%, the additional credit shall | ||||||
3 | be limited to that
percentage times a fraction, the | ||||||
4 | numerator of which is .5% and the denominator
of which is | ||||||
5 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
6 | not be
allowed to the extent that it would reduce a | ||||||
7 | taxpayer's liability in any tax
year below zero, nor may | ||||||
8 | any credit for qualified property be allowed for any
year | ||||||
9 | other than the year in which the property was placed in | ||||||
10 | service in
Illinois. For tax years ending on or after | ||||||
11 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
12 | credit shall be allowed for the tax year in
which the | ||||||
13 | property is placed in service, or, if the amount of the | ||||||
14 | credit
exceeds the tax liability for that year, whether it | ||||||
15 | exceeds the original
liability or the liability as later | ||||||
16 | amended, such excess may be carried
forward and applied to | ||||||
17 | the tax liability of the 5 taxable years following
the | ||||||
18 | excess credit years if the taxpayer (i) makes investments | ||||||
19 | which cause
the creation of a minimum of 2,000 full-time | ||||||
20 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
21 | enterprise zone established pursuant to the Illinois
| ||||||
22 | Enterprise Zone Act and (iii) is certified by the | ||||||
23 | Department of Commerce
and Community Affairs (now | ||||||
24 | Department of Commerce and Economic Opportunity) as | ||||||
25 | complying with the requirements specified in
clause (i) and | ||||||
26 | (ii) by July 1, 1986. The Department of Commerce and
|
| |||||||
| |||||||
1 | Community Affairs (now Department of Commerce and Economic | ||||||
2 | Opportunity) shall notify the Department of Revenue of all | ||||||
3 | such
certifications immediately. For tax years ending | ||||||
4 | after December 31, 1988,
the credit shall be allowed for | ||||||
5 | the tax year in which the property is
placed in service, | ||||||
6 | or, if the amount of the credit exceeds the tax
liability | ||||||
7 | for that year, whether it exceeds the original liability or | ||||||
8 | the
liability as later amended, such excess may be carried | ||||||
9 | forward and applied
to the tax liability of the 5 taxable | ||||||
10 | years following the excess credit
years. The credit shall | ||||||
11 | be applied to the earliest year for which there is
a | ||||||
12 | liability. If there is credit from more than one tax year | ||||||
13 | that is
available to offset a liability, earlier credit | ||||||
14 | shall be applied first.
| ||||||
15 | (2) The term "qualified property" means property | ||||||
16 | which:
| ||||||
17 | (A) is tangible, whether new or used, including | ||||||
18 | buildings and structural
components of buildings and | ||||||
19 | signs that are real property, but not including
land or | ||||||
20 | improvements to real property that are not a structural | ||||||
21 | component of a
building such as landscaping, sewer | ||||||
22 | lines, local access roads, fencing, parking
lots, and | ||||||
23 | other appurtenances;
| ||||||
24 | (B) is depreciable pursuant to Section 167 of the | ||||||
25 | Internal Revenue Code,
except that "3-year property" | ||||||
26 | as defined in Section 168(c)(2)(A) of that
Code is not |
| |||||||
| |||||||
1 | eligible for the credit provided by this subsection | ||||||
2 | (e);
| ||||||
3 | (C) is acquired by purchase as defined in Section | ||||||
4 | 179(d) of
the Internal Revenue Code;
| ||||||
5 | (D) is used in Illinois by a taxpayer who is | ||||||
6 | primarily engaged in
manufacturing, or in mining coal | ||||||
7 | or fluorite, or in retailing, or was placed in service | ||||||
8 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
9 | Zone established pursuant to the River Edge | ||||||
10 | Redevelopment Zone Act; and
| ||||||
11 | (E) has not previously been used in Illinois in | ||||||
12 | such a manner and by
such a person as would qualify for | ||||||
13 | the credit provided by this subsection
(e) or | ||||||
14 | subsection (f).
| ||||||
15 | (3) For purposes of this subsection (e), | ||||||
16 | "manufacturing" means
the material staging and production | ||||||
17 | of tangible personal property by
procedures commonly | ||||||
18 | regarded as manufacturing, processing, fabrication, or
| ||||||
19 | assembling which changes some existing material into new | ||||||
20 | shapes, new
qualities, or new combinations. For purposes of | ||||||
21 | this subsection
(e) the term "mining" shall have the same | ||||||
22 | meaning as the term "mining" in
Section 613(c) of the | ||||||
23 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
24 | the term "retailing" means the sale of tangible personal | ||||||
25 | property or
services rendered in conjunction with the sale | ||||||
26 | of tangible consumer goods
or commodities.
|
| |||||||
| |||||||
1 | (4) The basis of qualified property shall be the basis
| ||||||
2 | used to compute the depreciation deduction for federal | ||||||
3 | income tax purposes.
| ||||||
4 | (5) If the basis of the property for federal income tax | ||||||
5 | depreciation
purposes is increased after it has been placed | ||||||
6 | in service in Illinois by
the taxpayer, the amount of such | ||||||
7 | increase shall be deemed property placed
in service on the | ||||||
8 | date of such increase in basis.
| ||||||
9 | (6) The term "placed in service" shall have the same
| ||||||
10 | meaning as under Section 46 of the Internal Revenue Code.
| ||||||
11 | (7) If during any taxable year, any property ceases to
| ||||||
12 | be qualified property in the hands of the taxpayer within | ||||||
13 | 48 months after
being placed in service, or the situs of | ||||||
14 | any qualified property is
moved outside Illinois within 48 | ||||||
15 | months after being placed in service, the
Personal Property | ||||||
16 | Tax Replacement Income Tax 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 (7), 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 | (8) Unless the investment credit is extended by law, | ||||||
2 | the
basis of qualified property shall not include costs | ||||||
3 | incurred after
December 31, 2008, except for costs incurred | ||||||
4 | pursuant to a binding
contract entered into on or before | ||||||
5 | December 31, 2008.
| ||||||
6 | (9) Each taxable year ending before December 31, 2000, | ||||||
7 | a partnership may
elect to pass through to its
partners the | ||||||
8 | credits to which the partnership is entitled under this | ||||||
9 | subsection
(e) for the taxable year. A partner may use the | ||||||
10 | credit allocated to him or her
under this paragraph only | ||||||
11 | against the tax imposed in subsections (c) and (d) of
this | ||||||
12 | Section. If the partnership makes that election, those | ||||||
13 | credits shall be
allocated among the partners in the | ||||||
14 | partnership in accordance with the rules
set forth in | ||||||
15 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
16 | promulgated under that Section, and the allocated amount of | ||||||
17 | the credits shall
be allowed to the partners for that | ||||||
18 | taxable year. The partnership shall make
this election on | ||||||
19 | its Personal Property Tax Replacement Income Tax return for
| ||||||
20 | that taxable year. The election to pass through the credits | ||||||
21 | shall be
irrevocable.
| ||||||
22 | For taxable years ending on or after December 31, 2000, | ||||||
23 | a
partner that qualifies its
partnership for a subtraction | ||||||
24 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
25 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
26 | S
corporation for a subtraction under subparagraph (S) of |
| |||||||
| |||||||
1 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
2 | allowed a credit under this subsection
(e) equal to its | ||||||
3 | share of the credit earned under this subsection (e) during
| ||||||
4 | the taxable year by the partnership or Subchapter S | ||||||
5 | corporation, determined in
accordance with the | ||||||
6 | determination of income and distributive share of
income | ||||||
7 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
8 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
9 | of Section 250.
| ||||||
10 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
11 | Redevelopment Zone.
| ||||||
12 | (1) A taxpayer shall be allowed a credit against the | ||||||
13 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
14 | investment in qualified
property which is placed in service | ||||||
15 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
16 | Enterprise Zone Act or, for property placed in service on | ||||||
17 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
18 | established pursuant to the River Edge Redevelopment Zone | ||||||
19 | Act. For partners, shareholders
of Subchapter S | ||||||
20 | corporations, and owners of limited liability companies,
| ||||||
21 | if the liability company is treated as a partnership for | ||||||
22 | purposes of
federal and State income taxation, there shall | ||||||
23 | be allowed a credit under
this subsection (f) to be | ||||||
24 | determined in accordance with the determination
of income | ||||||
25 | and distributive share of income under Sections 702 and 704 | ||||||
26 | and
Subchapter S of the Internal Revenue Code. The credit |
| |||||||
| |||||||
1 | shall be .5% of the
basis for such property. The credit | ||||||
2 | shall be available only in the taxable
year in which the | ||||||
3 | property is placed in service in the Enterprise Zone or | ||||||
4 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
5 | the extent that it would reduce a taxpayer's
liability for | ||||||
6 | the tax imposed by subsections (a) and (b) of this Section | ||||||
7 | to
below zero. For tax years ending on or after December | ||||||
8 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
9 | which the property is placed in
service, or, if the amount | ||||||
10 | of the credit exceeds the tax liability for that
year, | ||||||
11 | whether it exceeds the original liability or the liability | ||||||
12 | as later
amended, such excess may be carried forward and | ||||||
13 | applied to the tax
liability of the 5 taxable years | ||||||
14 | following the excess credit year.
The credit shall be | ||||||
15 | applied to the earliest year for which there is a
| ||||||
16 | liability. If there is credit from more than one tax year | ||||||
17 | that is available
to offset a liability, the credit | ||||||
18 | accruing first in time shall be applied
first.
| ||||||
19 | (2) The term qualified property means property which:
| ||||||
20 | (A) is tangible, whether new or used, including | ||||||
21 | buildings and
structural components of buildings;
| ||||||
22 | (B) is depreciable pursuant to Section 167 of the | ||||||
23 | Internal Revenue
Code, except that "3-year property" | ||||||
24 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
25 | eligible for the credit provided by this subsection | ||||||
26 | (f);
|
| |||||||
| |||||||
1 | (C) is acquired by purchase as defined in Section | ||||||
2 | 179(d) of
the Internal Revenue Code;
| ||||||
3 | (D) is used in the Enterprise Zone or River Edge | ||||||
4 | Redevelopment Zone by the taxpayer; and
| ||||||
5 | (E) has not been previously used in Illinois in | ||||||
6 | such a manner and by
such a person as would qualify for | ||||||
7 | the credit provided by this subsection
(f) or | ||||||
8 | subsection (e).
| ||||||
9 | (3) The basis of qualified property shall be the basis | ||||||
10 | used to compute
the depreciation deduction for federal | ||||||
11 | income tax purposes.
| ||||||
12 | (4) If the basis of the property for federal income tax | ||||||
13 | depreciation
purposes is increased after it has been placed | ||||||
14 | in service in the Enterprise
Zone or River Edge | ||||||
15 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
16 | increase shall be deemed property
placed in service on the | ||||||
17 | date of such increase in basis.
| ||||||
18 | (5) The term "placed in service" shall have the same | ||||||
19 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
20 | (6) If during any taxable year, any property ceases to | ||||||
21 | be qualified
property in the hands of the taxpayer within | ||||||
22 | 48 months after being placed
in service, or the situs of | ||||||
23 | any qualified property is moved outside the
Enterprise Zone | ||||||
24 | or River Edge Redevelopment Zone within 48 months after | ||||||
25 | being placed in service, the tax
imposed under subsections | ||||||
26 | (a) and (b) of this Section for such taxable year
shall be |
| |||||||
| |||||||
1 | increased. Such increase shall be determined by (i) | ||||||
2 | recomputing
the investment credit which would have been | ||||||
3 | allowed for the year in which
credit for such property was | ||||||
4 | originally allowed by eliminating such
property from such | ||||||
5 | computation, and (ii) subtracting such recomputed credit
| ||||||
6 | from the amount of credit previously allowed. For the | ||||||
7 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
8 | qualified property resulting
from a redetermination of the | ||||||
9 | purchase price shall be deemed a disposition
of qualified | ||||||
10 | property to the extent of such reduction.
| ||||||
11 | (7) There shall be allowed an additional credit equal | ||||||
12 | to 0.5% of the basis of qualified property placed in | ||||||
13 | service during the taxable year in a River Edge | ||||||
14 | Redevelopment Zone, provided such property is placed in | ||||||
15 | service on or after July 1, 2006, and the taxpayer's base | ||||||
16 | employment within Illinois has increased by 1% or more over | ||||||
17 | the preceding year as determined by the taxpayer's | ||||||
18 | employment records filed with the Illinois Department of | ||||||
19 | Employment Security. Taxpayers who are new to Illinois | ||||||
20 | shall be deemed to have met the 1% growth in base | ||||||
21 | employment for the first year in which they file employment | ||||||
22 | records with the Illinois Department of Employment | ||||||
23 | Security. If, in any year, the increase in base employment | ||||||
24 | within Illinois over the preceding year is less than 1%, | ||||||
25 | the additional credit shall be limited to that percentage | ||||||
26 | times a fraction, the numerator of which is 0.5% and the |
| |||||||
| |||||||
1 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
2 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
3 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
| ||||||
4 | (1) A taxpayer conducting a trade or business in an | ||||||
5 | enterprise zone
or a High Impact Business designated by the | ||||||
6 | Department of Commerce and
Economic Opportunity or for | ||||||
7 | taxable years ending on or after December 31, 2006, in a | ||||||
8 | River Edge Redevelopment Zone conducting a trade or | ||||||
9 | business in a federally designated
Foreign Trade Zone or | ||||||
10 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
11 | by subsections (a) and (b) of this Section in the amount of | ||||||
12 | $500
per eligible employee hired to work in the zone during | ||||||
13 | the taxable year.
| ||||||
14 | (2) To qualify for the credit:
| ||||||
15 | (A) the taxpayer must hire 5 or more eligible | ||||||
16 | employees to work in an
enterprise zone, River Edge | ||||||
17 | Redevelopment Zone, or federally designated Foreign | ||||||
18 | Trade Zone or Sub-Zone
during the taxable year;
| ||||||
19 | (B) the taxpayer's total employment within the | ||||||
20 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
21 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
22 | must
increase by 5 or more full-time employees beyond | ||||||
23 | the total employed in that
zone at the end of the | ||||||
24 | previous tax year for which a jobs tax
credit under | ||||||
25 | this Section was taken, or beyond the total employed by | ||||||
26 | the
taxpayer as of December 31, 1985, whichever is |
| |||||||
| |||||||
1 | later; and
| ||||||
2 | (C) the eligible employees must be employed 180 | ||||||
3 | consecutive days in
order to be deemed hired for | ||||||
4 | purposes of this subsection.
| ||||||
5 | (3) An "eligible employee" means an employee who is:
| ||||||
6 | (A) Certified by the Department of Commerce and | ||||||
7 | Economic Opportunity
as "eligible for services" | ||||||
8 | pursuant to regulations promulgated in
accordance with | ||||||
9 | Title II of the Job Training Partnership Act, Training
| ||||||
10 | Services for the Disadvantaged or Title III of the Job | ||||||
11 | Training Partnership
Act, Employment and Training | ||||||
12 | Assistance for Dislocated Workers Program.
| ||||||
13 | (B) Hired after the enterprise zone, River Edge | ||||||
14 | Redevelopment Zone, or federally designated Foreign
| ||||||
15 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
16 | business was located in that zone, whichever is later.
| ||||||
17 | (C) Employed in the enterprise zone, River Edge | ||||||
18 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
19 | An employee is employed in an
enterprise zone , River | ||||||
20 | Edge Redevelopment Zone, or federally designated | ||||||
21 | Foreign Trade Zone or Sub-Zone
if his services are | ||||||
22 | rendered there or it is the base of
operations for the | ||||||
23 | services performed.
| ||||||
24 | (D) A full-time employee working 30 or more hours | ||||||
25 | per week.
| ||||||
26 | (4) For tax years ending on or after December 31, 1985 |
| |||||||
| |||||||
1 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
2 | for the tax year in which
the eligible employees are hired. | ||||||
3 | For tax years ending on or after
December 31, 1988, the | ||||||
4 | credit shall be allowed for the tax year immediately
| ||||||
5 | following the tax year in which the eligible employees are | ||||||
6 | hired. If the
amount of the credit exceeds the tax | ||||||
7 | liability for that year, whether it
exceeds the original | ||||||
8 | liability or the liability as later amended, such
excess | ||||||
9 | may be carried forward and applied to the tax liability of | ||||||
10 | the 5
taxable years following the excess credit year. The | ||||||
11 | credit shall be
applied to the earliest year for which | ||||||
12 | there is a liability. If there is
credit from more than one | ||||||
13 | tax year that is available to offset a liability,
earlier | ||||||
14 | credit shall be applied first.
| ||||||
15 | (5) The Department of Revenue shall promulgate such | ||||||
16 | rules and regulations
as may be deemed necessary to carry | ||||||
17 | out the purposes of this subsection (g).
| ||||||
18 | (6) The credit shall be available for eligible | ||||||
19 | employees hired on or
after January 1, 1986.
| ||||||
20 | (h) Investment credit; High Impact Business.
| ||||||
21 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
22 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
23 | allowed a credit
against the tax imposed by subsections (a) | ||||||
24 | and (b) of this Section for
investment in qualified
| ||||||
25 | property which is placed in service by a Department of | ||||||
26 | Commerce and Economic Opportunity
designated High Impact |
| |||||||
| |||||||
1 | Business. The credit shall be .5% of the basis
for such | ||||||
2 | property. The credit shall not be available (i) until the | ||||||
3 | minimum
investments in qualified property set forth in | ||||||
4 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
5 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
6 | time authorized in subsection (b-5) of the Illinois
| ||||||
7 | Enterprise Zone Act for entities designated as High Impact | ||||||
8 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
9 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
10 | Act, and shall not be allowed to the extent that it would
| ||||||
11 | reduce a taxpayer's liability for the tax imposed by | ||||||
12 | subsections (a) and (b) of
this Section to below zero. The | ||||||
13 | credit applicable to such investments shall be
taken in the | ||||||
14 | taxable year in which such investments have been completed. | ||||||
15 | The
credit for additional investments beyond the minimum | ||||||
16 | investment by a designated
high impact business authorized | ||||||
17 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
18 | Enterprise Zone Act shall be available only in the taxable | ||||||
19 | year in
which the property is placed in service and shall | ||||||
20 | not be allowed to the extent
that it would reduce a | ||||||
21 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
22 | and (b) of this Section to below zero.
For tax years ending | ||||||
23 | on or after December 31, 1987, the credit shall be
allowed | ||||||
24 | for the tax year in which the property is placed in | ||||||
25 | service, or, if
the amount of the credit exceeds the tax | ||||||
26 | liability for that year, whether
it exceeds the original |
| |||||||
| |||||||
1 | liability or the liability as later amended, such
excess | ||||||
2 | may be carried forward and applied to the tax liability of | ||||||
3 | the 5
taxable years following the excess credit year. The | ||||||
4 | credit shall be
applied to the earliest year for which | ||||||
5 | there is a liability. If there is
credit from more than one | ||||||
6 | tax year that is available to offset a liability,
the | ||||||
7 | credit accruing first in time shall be applied first.
| ||||||
8 | Changes made in this subdivision (h)(1) by Public Act | ||||||
9 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
10 | reflect existing law.
| ||||||
11 | (2) The term qualified property means property which:
| ||||||
12 | (A) is tangible, whether new or used, including | ||||||
13 | buildings and
structural components of buildings;
| ||||||
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 | (h);
| ||||||
19 | (C) is acquired by purchase as defined in Section | ||||||
20 | 179(d) of the
Internal Revenue Code; and
| ||||||
21 | (D) is not eligible for the Enterprise Zone | ||||||
22 | Investment Credit provided
by subsection (f) of this | ||||||
23 | Section.
| ||||||
24 | (3) The basis of qualified property shall be the basis | ||||||
25 | used to compute
the depreciation deduction for federal | ||||||
26 | income tax purposes.
|
| |||||||
| |||||||
1 | (4) If the basis of the property for federal income tax | ||||||
2 | depreciation
purposes is increased after it has been placed | ||||||
3 | in service in a federally
designated Foreign Trade Zone or | ||||||
4 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
5 | such increase shall be deemed property placed in service on
| ||||||
6 | the date of such increase in basis.
| ||||||
7 | (5) The term "placed in service" shall have the same | ||||||
8 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
9 | (6) If during any taxable year ending on or before | ||||||
10 | December 31, 1996,
any property ceases to be qualified
| ||||||
11 | property in the hands of the taxpayer within 48 months | ||||||
12 | after being placed
in service, or the situs of any | ||||||
13 | qualified property is moved outside
Illinois within 48 | ||||||
14 | months after being placed in service, the tax imposed
under | ||||||
15 | subsections (a) and (b) of this Section for such taxable | ||||||
16 | year shall
be increased. Such increase shall be determined | ||||||
17 | by (i) recomputing the
investment credit which would have | ||||||
18 | been allowed for the year in which
credit for such property | ||||||
19 | was originally allowed by eliminating such
property from | ||||||
20 | such computation, and (ii) subtracting such recomputed | ||||||
21 | credit
from the amount of credit previously allowed. For | ||||||
22 | the purposes of this
paragraph (6), a reduction of the | ||||||
23 | basis of qualified property resulting
from a | ||||||
24 | redetermination of the purchase price shall be deemed a | ||||||
25 | disposition
of qualified property to the extent of such | ||||||
26 | reduction.
|
| |||||||
| |||||||
1 | (7) Beginning with tax years ending after December 31, | ||||||
2 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
3 | subsection (h) and thereby is
granted a tax abatement and | ||||||
4 | the taxpayer relocates its entire facility in
violation of | ||||||
5 | the explicit terms and length of the contract under Section
| ||||||
6 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
7 | subsections
(a) and (b) of this Section shall be increased | ||||||
8 | for the taxable year
in which the taxpayer relocated its | ||||||
9 | facility by an amount equal to the
amount of credit | ||||||
10 | received by the taxpayer under this subsection (h).
| ||||||
11 | (i) Credit for Personal Property Tax Replacement Income | ||||||
12 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
13 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
14 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
15 | (d) of this Section. This credit shall be computed by | ||||||
16 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
17 | Section by a fraction, the numerator
of which is base income | ||||||
18 | allocable to Illinois and the denominator of which is
Illinois | ||||||
19 | base income, and further multiplying the product by the tax | ||||||
20 | rate
imposed by subsections (a) and (b) of this Section.
| ||||||
21 | Any credit earned on or after December 31, 1986 under
this | ||||||
22 | subsection which is unused in the year
the credit is computed | ||||||
23 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
24 | and (b) for that year (whether it exceeds the original
| ||||||
25 | liability or the liability as later amended) may be carried | ||||||
26 | forward and
applied to the tax liability imposed by subsections |
| |||||||
| |||||||
1 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
2 | year, provided that no credit may
be carried forward to any | ||||||
3 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
4 | applied first to the earliest year for which there is a | ||||||
5 | liability. If
there is a credit under this subsection from more | ||||||
6 | than one tax year that is
available to offset a liability the | ||||||
7 | earliest credit arising under this
subsection shall be applied | ||||||
8 | first.
| ||||||
9 | If, during any taxable year ending on or after December 31, | ||||||
10 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
11 | Section for which a taxpayer
has claimed a credit under this | ||||||
12 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
13 | shall also be reduced. Such reduction shall be
determined by | ||||||
14 | recomputing the credit to take into account the reduced tax
| ||||||
15 | imposed by subsections (c) and (d). If any portion of the
| ||||||
16 | reduced amount of credit has been carried to a different | ||||||
17 | taxable year, an
amended return shall be filed for such taxable | ||||||
18 | year to reduce the amount of
credit claimed.
| ||||||
19 | (j) Training expense credit. Beginning with tax years | ||||||
20 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
21 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
22 | imposed by subsections (a) and (b) under this Section
for all | ||||||
23 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
24 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
25 | of Illinois by a taxpayer, for educational or vocational | ||||||
26 | training in
semi-technical or technical fields or semi-skilled |
| |||||||
| |||||||
1 | or skilled fields, which
were deducted from gross income in the | ||||||
2 | computation of taxable income. The
credit against the tax | ||||||
3 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
4 | training expenses. For partners, shareholders of subchapter S
| ||||||
5 | corporations, and owners of limited liability companies, if the | ||||||
6 | liability
company is treated as a partnership for purposes of | ||||||
7 | federal and State income
taxation, there shall be allowed a | ||||||
8 | credit under this subsection (j) to be
determined in accordance | ||||||
9 | with the determination of income and distributive
share of | ||||||
10 | income under Sections 702 and 704 and subchapter S of the | ||||||
11 | Internal
Revenue Code.
| ||||||
12 | Any credit allowed under this subsection which is unused in | ||||||
13 | the year
the credit is earned may be carried forward to each of | ||||||
14 | the 5 taxable
years following the year for which the credit is | ||||||
15 | first computed until it is
used. This credit shall be applied | ||||||
16 | first to the earliest year for which
there is a liability. If | ||||||
17 | there is a credit under this subsection from more
than one tax | ||||||
18 | year that is available to offset a liability the earliest
| ||||||
19 | credit arising under this subsection shall be applied first. No | ||||||
20 | carryforward
credit may be claimed in any tax year ending on or | ||||||
21 | after
December 31, 2003.
| ||||||
22 | (k) Research and development credit.
| ||||||
23 | For tax years ending after July 1, 1990 and prior to
| ||||||
24 | December 31, 2003, and beginning again for tax years ending on | ||||||
25 | or after December 31, 2004, a taxpayer shall be
allowed a | ||||||
26 | credit against the tax imposed by subsections (a) and (b) of |
| |||||||
| |||||||
1 | this
Section for increasing research activities in this State. | ||||||
2 | The credit
allowed against the tax imposed by subsections (a) | ||||||
3 | and (b) shall be equal
to 6 1/2% of the qualifying expenditures | ||||||
4 | for increasing research activities
in this State. For partners, | ||||||
5 | shareholders of subchapter S corporations, and
owners of | ||||||
6 | limited liability companies, if the liability company is | ||||||
7 | treated as a
partnership for purposes of federal and State | ||||||
8 | income taxation, there shall be
allowed a credit under this | ||||||
9 | subsection to be determined in accordance with the
| ||||||
10 | determination of income and distributive share of income under | ||||||
11 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
12 | Code.
| ||||||
13 | For purposes of this subsection, "qualifying expenditures" | ||||||
14 | means the
qualifying expenditures as defined for the federal | ||||||
15 | credit for increasing
research activities which would be | ||||||
16 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
17 | which are conducted in this State, "qualifying
expenditures for | ||||||
18 | increasing research activities in this State" means the
excess | ||||||
19 | of qualifying expenditures for the taxable year in which | ||||||
20 | incurred
over qualifying expenditures for the base period, | ||||||
21 | "qualifying expenditures
for the base period" means the average | ||||||
22 | of the qualifying expenditures for
each year in the base | ||||||
23 | period, and "base period" means the 3 taxable years
immediately | ||||||
24 | preceding the taxable year for which the determination is
being | ||||||
25 | made.
| ||||||
26 | Any credit in excess of the tax liability for the taxable |
| |||||||
| |||||||
1 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
2 | unused credit shown on its final completed return carried over | ||||||
3 | as a credit
against the tax liability for the following 5 | ||||||
4 | taxable years or until it has
been fully used, whichever occurs | ||||||
5 | first; provided that no credit earned in a tax year ending | ||||||
6 | prior to December 31, 2003 may be carried forward to any year | ||||||
7 | ending on or after December 31, 2003.
| ||||||
8 | If an unused credit is carried forward to a given year from | ||||||
9 | 2 or more
earlier years, that credit arising in the earliest | ||||||
10 | year will be applied
first against the tax liability for the | ||||||
11 | given year. If a tax liability for
the given year still | ||||||
12 | remains, the credit from the next earliest year will
then be | ||||||
13 | applied, and so on, until all credits have been used or no tax
| ||||||
14 | liability for the given year remains. Any remaining unused | ||||||
15 | credit or
credits then will be carried forward to the next | ||||||
16 | following year in which a
tax liability is incurred, except | ||||||
17 | that no credit can be carried forward to
a year which is more | ||||||
18 | than 5 years after the year in which the expense for
which the | ||||||
19 | credit is given was incurred.
| ||||||
20 | No inference shall be drawn from this amendatory Act of the | ||||||
21 | 91st General
Assembly in construing this Section for taxable | ||||||
22 | years beginning before January
1, 1999.
| ||||||
23 | (l) Environmental Remediation Tax Credit.
| ||||||
24 | (i) For tax years ending after December 31, 1997 and on | ||||||
25 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
26 | credit against the tax
imposed by subsections (a) and (b) |
| |||||||
| |||||||
1 | of this Section for certain amounts paid
for unreimbursed | ||||||
2 | eligible remediation costs, as specified in this | ||||||
3 | subsection.
For purposes of this Section, "unreimbursed | ||||||
4 | eligible remediation costs" means
costs approved by the | ||||||
5 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
6 | Section 58.14 of the Environmental Protection Act that were | ||||||
7 | paid in performing
environmental remediation at a site for | ||||||
8 | which a No Further Remediation Letter
was issued by the | ||||||
9 | Agency and recorded under Section 58.10 of the | ||||||
10 | Environmental
Protection Act. The credit must be claimed | ||||||
11 | for the taxable year in which
Agency approval of the | ||||||
12 | eligible remediation costs is granted. The credit is
not | ||||||
13 | available to any taxpayer if the taxpayer or any related | ||||||
14 | party caused or
contributed to, in any material respect, a | ||||||
15 | release of regulated substances on,
in, or under the site | ||||||
16 | that was identified and addressed by the remedial
action | ||||||
17 | pursuant to the Site Remediation Program of the | ||||||
18 | Environmental Protection
Act. After the Pollution Control | ||||||
19 | Board rules are adopted pursuant to the
Illinois | ||||||
20 | Administrative Procedure Act for the administration and | ||||||
21 | enforcement of
Section 58.9 of the Environmental | ||||||
22 | Protection Act, determinations as to credit
availability | ||||||
23 | for purposes of this Section shall be made consistent with | ||||||
24 | those
rules. For purposes of this Section, "taxpayer" | ||||||
25 | includes a person whose tax
attributes the taxpayer has | ||||||
26 | succeeded to under Section 381 of the Internal
Revenue Code |
| |||||||
| |||||||
1 | and "related party" includes the persons disallowed a | ||||||
2 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
3 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
4 | a related taxpayer, as well as any of its
partners. The | ||||||
5 | credit allowed against the tax imposed by subsections (a) | ||||||
6 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
7 | remediation costs in
excess of $100,000 per site, except | ||||||
8 | that the $100,000 threshold shall not apply
to any site | ||||||
9 | contained in an enterprise zone as determined by the | ||||||
10 | Department of
Commerce and Community Affairs (now | ||||||
11 | Department of Commerce and Economic Opportunity). The | ||||||
12 | total credit allowed shall not exceed
$40,000 per year with | ||||||
13 | a maximum total of $150,000 per site. For partners and
| ||||||
14 | shareholders of subchapter S corporations, there shall be | ||||||
15 | allowed a credit
under this subsection to be determined in | ||||||
16 | accordance with the determination of
income and | ||||||
17 | distributive share of income under Sections 702 and 704 and
| ||||||
18 | subchapter S of the Internal Revenue Code.
| ||||||
19 | (ii) A credit allowed under this subsection that is | ||||||
20 | unused in the year
the credit is earned may be carried | ||||||
21 | forward to each of the 5 taxable years
following the year | ||||||
22 | for which the credit is first earned until it is used.
The | ||||||
23 | term "unused credit" does not include any amounts of | ||||||
24 | unreimbursed eligible
remediation costs in excess of the | ||||||
25 | maximum credit per site authorized under
paragraph (i). | ||||||
26 | This credit shall be applied first to the earliest year
for |
| |||||||
| |||||||
1 | which there is a liability. If there is a credit under this | ||||||
2 | subsection
from more than one tax year that is available to | ||||||
3 | offset a liability, the
earliest credit arising under this | ||||||
4 | subsection shall be applied first. A
credit allowed under | ||||||
5 | this subsection may be sold to a buyer as part of a sale
of | ||||||
6 | all or part of the remediation site for which the credit | ||||||
7 | was granted. The
purchaser of a remediation site and the | ||||||
8 | tax credit shall succeed to the unused
credit and remaining | ||||||
9 | carry-forward period of the seller. To perfect the
| ||||||
10 | transfer, the assignor shall record the transfer in the | ||||||
11 | chain of title for the
site and provide written notice to | ||||||
12 | the Director of the Illinois Department of
Revenue of the | ||||||
13 | assignor's intent to sell the remediation site and the | ||||||
14 | amount of
the tax credit to be transferred as a portion of | ||||||
15 | the sale. In no event may a
credit be transferred to any | ||||||
16 | taxpayer if the taxpayer or a related party would
not be | ||||||
17 | eligible under the provisions of subsection (i).
| ||||||
18 | (iii) For purposes of this Section, the term "site" | ||||||
19 | shall have the same
meaning as under Section 58.2 of the | ||||||
20 | Environmental Protection Act.
| ||||||
21 | (m) Education expense credit. Beginning with tax years | ||||||
22 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
23 | of one or more qualifying pupils shall be allowed a credit
| ||||||
24 | against the tax imposed by subsections (a) and (b) of this | ||||||
25 | Section for
qualified education expenses incurred on behalf of | ||||||
26 | the qualifying pupils.
The credit shall be equal to 25% of |
| |||||||
| |||||||
1 | qualified education expenses, but in no
event may the total | ||||||
2 | credit under this subsection claimed by a
family that is the
| ||||||
3 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
4 | credit under
this subsection reduce the taxpayer's liability | ||||||
5 | under this Act to less than
zero. This subsection is exempt | ||||||
6 | from the provisions of Section 250 of this
Act.
| ||||||
7 | For purposes of this subsection:
| ||||||
8 | "Qualifying pupils" means individuals who (i) are | ||||||
9 | residents of the State of
Illinois, (ii) are under the age of | ||||||
10 | 21 at the close of the school year for
which a credit is | ||||||
11 | sought, and (iii) during the school year for which a credit
is | ||||||
12 | sought were full-time pupils enrolled in a kindergarten through | ||||||
13 | twelfth
grade education program at any school, as defined in | ||||||
14 | this subsection.
| ||||||
15 | "Qualified education expense" means the amount incurred
on | ||||||
16 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
17 | book fees, and
lab fees at the school in which the pupil is | ||||||
18 | enrolled during the regular school
year.
| ||||||
19 | "School" means any public or nonpublic elementary or | ||||||
20 | secondary school in
Illinois that is in compliance with Title | ||||||
21 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
22 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
23 | except that nothing shall be construed to require a child to
| ||||||
24 | attend any particular public or nonpublic school to qualify for | ||||||
25 | the credit
under this Section.
| ||||||
26 | "Custodian" means, with respect to qualifying pupils, an |
| |||||||
| |||||||
1 | Illinois resident
who is a parent, the parents, a legal | ||||||
2 | guardian, or the legal guardians of the
qualifying pupils.
| ||||||
3 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
4 | credit.
| ||||||
5 | (i) For tax years ending on or after December 31, 2006, | ||||||
6 | a taxpayer shall be allowed a credit against the tax | ||||||
7 | imposed by subsections (a) and (b) of this Section for | ||||||
8 | certain amounts paid for unreimbursed eligible remediation | ||||||
9 | costs, as specified in this subsection. For purposes of | ||||||
10 | this Section, "unreimbursed eligible remediation costs" | ||||||
11 | means costs approved by the Illinois Environmental | ||||||
12 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
13 | Environmental Protection Act that were paid in performing | ||||||
14 | environmental remediation at a site within a River Edge | ||||||
15 | Redevelopment Zone for which a No Further Remediation | ||||||
16 | Letter was issued by the Agency and recorded under Section | ||||||
17 | 58.10 of the Environmental Protection Act. The credit must | ||||||
18 | be claimed for the taxable year in which Agency approval of | ||||||
19 | the eligible remediation costs is granted. The credit is | ||||||
20 | not available to any taxpayer if the taxpayer or any | ||||||
21 | related party caused or contributed to, in any material | ||||||
22 | respect, a release of regulated substances on, in, or under | ||||||
23 | the site that was identified and addressed by the remedial | ||||||
24 | action pursuant to the Site Remediation Program of the | ||||||
25 | Environmental Protection Act. Determinations as to credit | ||||||
26 | availability for purposes of this Section shall be made |
| |||||||
| |||||||
1 | consistent with rules adopted by the Pollution Control | ||||||
2 | Board pursuant to the Illinois Administrative Procedure | ||||||
3 | Act for the administration and enforcement of Section 58.9 | ||||||
4 | of the Environmental Protection Act. For purposes of this | ||||||
5 | Section, "taxpayer" includes a person whose tax attributes | ||||||
6 | the taxpayer has succeeded to under Section 381 of the | ||||||
7 | Internal Revenue Code and "related party" includes the | ||||||
8 | persons disallowed a deduction for losses by paragraphs | ||||||
9 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
10 | Code by virtue of being a related taxpayer, as well as any | ||||||
11 | of its partners. The credit allowed against the tax imposed | ||||||
12 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
13 | unreimbursed eligible remediation costs in excess of | ||||||
14 | $100,000 per site. | ||||||
15 | (ii) A credit allowed under this subsection that is | ||||||
16 | unused in the year the credit is earned may be carried | ||||||
17 | forward to each of the 5 taxable years following the year | ||||||
18 | for which the credit is first earned until it is used. This | ||||||
19 | credit shall be applied first to the earliest year for | ||||||
20 | which there is a liability. If there is a credit under this | ||||||
21 | subsection from more than one tax year that is available to | ||||||
22 | offset a liability, the earliest credit arising under this | ||||||
23 | subsection shall be applied first. A credit allowed under | ||||||
24 | this subsection may be sold to a buyer as part of a sale of | ||||||
25 | all or part of the remediation site for which the credit | ||||||
26 | was granted. The purchaser of a remediation site and the |
| |||||||
| |||||||
1 | tax credit shall succeed to the unused credit and remaining | ||||||
2 | carry-forward period of the seller. To perfect the | ||||||
3 | transfer, the assignor shall record the transfer in the | ||||||
4 | chain of title for the site and provide written notice to | ||||||
5 | the Director of the Illinois Department of Revenue of the | ||||||
6 | assignor's intent to sell the remediation site and the | ||||||
7 | amount of the tax credit to be transferred as a portion of | ||||||
8 | the sale. In no event may a credit be transferred to any | ||||||
9 | taxpayer if the taxpayer or a related party would not be | ||||||
10 | eligible under the provisions of subsection (i). | ||||||
11 | (iii) For purposes of this Section, the term "site" | ||||||
12 | shall have the same meaning as under Section 58.2 of the | ||||||
13 | Environmental Protection Act. | ||||||
14 | (iv) This subsection is exempt from the provisions of | ||||||
15 | Section 250.
| ||||||
16 | (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
| ||||||
17 | (35 ILCS 5/203) (from Ch. 120, par. 2-203)
| ||||||
18 | Sec. 203. Base income defined.
| ||||||
19 | (a) Individuals.
| ||||||
20 | (1) In general. In the case of an individual, base | ||||||
21 | income means an
amount equal to the taxpayer's adjusted | ||||||
22 | gross income for the taxable
year as modified by paragraph | ||||||
23 | (2).
| ||||||
24 | (2) Modifications. The adjusted gross income referred | ||||||
25 | to in
paragraph (1) shall be modified by adding thereto the |
| |||||||
| |||||||
1 | sum of the
following amounts:
| ||||||
2 | (A) An amount equal to all amounts paid or accrued | ||||||
3 | to the taxpayer
as interest or dividends during the | ||||||
4 | taxable year to the extent excluded
from gross income | ||||||
5 | in the computation of adjusted gross income, except | ||||||
6 | stock
dividends of qualified public utilities | ||||||
7 | described in Section 305(e) of the
Internal Revenue | ||||||
8 | Code;
| ||||||
9 | (B) An amount equal to the amount of tax imposed by | ||||||
10 | this Act to the
extent deducted from gross income in | ||||||
11 | the computation of adjusted gross
income for the | ||||||
12 | taxable year;
| ||||||
13 | (C) An amount equal to the amount received during | ||||||
14 | the taxable year
as a recovery or refund of real | ||||||
15 | property taxes paid with respect to the
taxpayer's | ||||||
16 | principal residence under the Revenue Act of
1939 and | ||||||
17 | for which a deduction was previously taken under | ||||||
18 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
19 | 1991, the retrospective application date of
Article 4 | ||||||
20 | of Public Act 87-17. In the case of multi-unit or | ||||||
21 | multi-use
structures and farm dwellings, the taxes on | ||||||
22 | the taxpayer's principal residence
shall be that | ||||||
23 | portion of the total taxes for the entire property | ||||||
24 | which is
attributable to such principal residence;
| ||||||
25 | (D) 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 adjusted gross income;
| ||||||
3 | (D-5) An amount, to the extent not included in | ||||||
4 | adjusted gross income,
equal to the amount of money | ||||||
5 | withdrawn by the taxpayer in the taxable year from
a | ||||||
6 | medical care savings account and the interest earned on | ||||||
7 | the account in the
taxable year of a withdrawal | ||||||
8 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
9 | Care Savings Account Act or subsection (b) of Section | ||||||
10 | 20 of the
Medical Care Savings Account Act of 2000;
| ||||||
11 | (D-10) For taxable years ending after December 31, | ||||||
12 | 1997, an
amount equal to any eligible remediation costs | ||||||
13 | that the individual
deducted in computing adjusted | ||||||
14 | gross income and for which the
individual claims a | ||||||
15 | credit under subsection (l) of Section 201;
| ||||||
16 | (D-15) For taxable years 2001 and thereafter, an | ||||||
17 | amount equal to the
bonus depreciation deduction taken | ||||||
18 | on the taxpayer's federal income tax return for the | ||||||
19 | taxable
year under subsection (k) of Section 168 of the | ||||||
20 | Internal Revenue Code;
| ||||||
21 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
22 | or otherwise disposes of property for which the | ||||||
23 | taxpayer was required in any taxable year to
make an | ||||||
24 | addition modification under subparagraph (D-15), then | ||||||
25 | an amount equal
to the aggregate amount of the | ||||||
26 | deductions taken in all taxable
years under |
| |||||||
| |||||||
1 | subparagraph (Z) with respect to that property.
| ||||||
2 | If the taxpayer continues to own property through | ||||||
3 | the last day of the last tax year for which the | ||||||
4 | taxpayer may claim a depreciation deduction for | ||||||
5 | federal income tax purposes and for which the taxpayer | ||||||
6 | was allowed in any taxable year to make a subtraction | ||||||
7 | modification under subparagraph (Z), then an amount | ||||||
8 | equal to that subtraction modification.
| ||||||
9 | The taxpayer is required to make the addition | ||||||
10 | modification under this
subparagraph
only once with | ||||||
11 | respect to any one piece of property;
| ||||||
12 | (D-17) An amount equal to the amount otherwise | ||||||
13 | allowed as a deduction in computing base income for | ||||||
14 | interest paid, accrued, or incurred, directly or | ||||||
15 | indirectly, (i) for taxable years ending on or after | ||||||
16 | December 31, 2004, to a foreign person who would be a | ||||||
17 | member of the same unitary business group but for the | ||||||
18 | fact that foreign person's business activity outside | ||||||
19 | the United States is 80% or more of the foreign | ||||||
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. The addition modification | ||||||
2 | required by this subparagraph shall be reduced to the | ||||||
3 | extent that dividends were included in base income of | ||||||
4 | the unitary group for the same taxable year and | ||||||
5 | received by the taxpayer or by a member of the | ||||||
6 | taxpayer's unitary business group (including amounts | ||||||
7 | included in gross income under Sections 951 through 964 | ||||||
8 | of the Internal Revenue Code and amounts included in | ||||||
9 | gross income under Section 78 of the Internal Revenue | ||||||
10 | Code) with respect to the stock of the same person to | ||||||
11 | whom the interest was paid, accrued, or incurred. | ||||||
12 | This paragraph shall not apply to the following:
| ||||||
13 | (i) an item of interest paid, accrued, or | ||||||
14 | incurred, directly or indirectly, to a person who | ||||||
15 | is subject in a foreign country or state, other | ||||||
16 | than a state which requires mandatory unitary | ||||||
17 | reporting, to a tax on or measured by net income | ||||||
18 | with respect to such interest; or | ||||||
19 | (ii) an item of interest paid, accrued, or | ||||||
20 | incurred, directly or indirectly, to a person if | ||||||
21 | the taxpayer can establish, based on a | ||||||
22 | preponderance of the evidence, both of the | ||||||
23 | following: | ||||||
24 | (a) the person, during the same taxable | ||||||
25 | year, paid, accrued, or incurred, the interest | ||||||
26 | to a person that is not a related member, and |
| |||||||
| |||||||
1 | (b) the transaction giving rise to the | ||||||
2 | interest expense between the taxpayer and the | ||||||
3 | person did not have as a principal purpose the | ||||||
4 | avoidance of Illinois income tax, and is paid | ||||||
5 | pursuant to a contract or agreement that | ||||||
6 | reflects an arm's-length interest rate and | ||||||
7 | terms; or
| ||||||
8 | (iii) the taxpayer can establish, based on | ||||||
9 | clear and convincing evidence, that the interest | ||||||
10 | paid, accrued, or incurred relates to a contract or | ||||||
11 | agreement entered into at arm's-length rates and | ||||||
12 | terms and the principal purpose for the payment is | ||||||
13 | not federal or Illinois tax avoidance; or
| ||||||
14 | (iv) an item of interest paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to a person if | ||||||
16 | the taxpayer establishes by clear and convincing | ||||||
17 | evidence that the adjustments are unreasonable; or | ||||||
18 | if the taxpayer and the Director agree in writing | ||||||
19 | to the application or use of an alternative method | ||||||
20 | of apportionment under Section 304(f).
| ||||||
21 | Nothing in this subsection shall preclude the | ||||||
22 | Director from making any other adjustment | ||||||
23 | otherwise allowed under Section 404 of this Act for | ||||||
24 | any tax year beginning after the effective date of | ||||||
25 | this amendment provided such adjustment is made | ||||||
26 | pursuant to regulation adopted by the Department |
| |||||||
| |||||||
1 | and such regulations provide methods and standards | ||||||
2 | by which the Department will utilize its authority | ||||||
3 | under Section 404 of this Act;
| ||||||
4 | (D-18) An amount equal to the amount of intangible | ||||||
5 | expenses and costs otherwise allowed as a deduction in | ||||||
6 | computing base income, and that were paid, accrued, or | ||||||
7 | incurred, directly or indirectly, (i) for taxable | ||||||
8 | years ending on or after December 31, 2004, to a | ||||||
9 | foreign person who would be a member of the same | ||||||
10 | unitary business group but for the fact that the | ||||||
11 | foreign person's business activity outside the United | ||||||
12 | States is 80% or more of that person's total business | ||||||
13 | activity and (ii) for taxable years ending on or after | ||||||
14 | December 31, 2008, to a person who would be a member of | ||||||
15 | the same unitary business group but for the fact that | ||||||
16 | the person is prohibited under Section 1501(a)(27) | ||||||
17 | from being included in the unitary business group | ||||||
18 | because he or she is ordinarily required to apportion | ||||||
19 | business income under different subsections of Section | ||||||
20 | 304. The addition modification required by this | ||||||
21 | subparagraph shall be reduced to the extent that | ||||||
22 | dividends were included in base income of the unitary | ||||||
23 | group for the same taxable year and received by the | ||||||
24 | taxpayer or by a member of the taxpayer's unitary | ||||||
25 | business group (including amounts included in gross | ||||||
26 | income under Sections 951 through 964 of the Internal |
| |||||||
| |||||||
1 | Revenue Code and amounts included in gross income under | ||||||
2 | Section 78 of the Internal Revenue Code) with respect | ||||||
3 | to the stock of the same person to whom the intangible | ||||||
4 | expenses and costs were directly or indirectly paid, | ||||||
5 | incurred, or accrued. The preceding sentence does not | ||||||
6 | apply to the extent that the same dividends caused a | ||||||
7 | reduction to the addition modification required under | ||||||
8 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
9 | subparagraph, the term "intangible expenses and costs" | ||||||
10 | includes (1) expenses, losses, and costs for, or | ||||||
11 | related to, the direct or indirect acquisition, use, | ||||||
12 | maintenance or management, ownership, sale, exchange, | ||||||
13 | or any other disposition of intangible property; (2) | ||||||
14 | losses incurred, directly or indirectly, from | ||||||
15 | factoring transactions or discounting transactions; | ||||||
16 | (3) royalty, patent, technical, and copyright fees; | ||||||
17 | (4) licensing fees; and (5) other similar expenses and | ||||||
18 | costs.
For purposes of this subparagraph, "intangible | ||||||
19 | property" includes patents, patent applications, trade | ||||||
20 | names, trademarks, service marks, copyrights, mask | ||||||
21 | works, trade secrets, and similar types of intangible | ||||||
22 | assets. | ||||||
23 | This paragraph shall not apply to the following: | ||||||
24 | (i) any item of intangible expenses or costs | ||||||
25 | paid, accrued, or incurred, directly or | ||||||
26 | indirectly, from a transaction with a person who is |
| |||||||
| |||||||
1 | subject in a foreign country or state, other than a | ||||||
2 | state which requires mandatory unitary reporting, | ||||||
3 | to a tax on or measured by net income with respect | ||||||
4 | to such item; or | ||||||
5 | (ii) any item of intangible expense or cost | ||||||
6 | paid, accrued, or incurred, directly or | ||||||
7 | indirectly, if the taxpayer can establish, based | ||||||
8 | on a preponderance of the evidence, both of the | ||||||
9 | following: | ||||||
10 | (a) the person during the same taxable | ||||||
11 | year paid, accrued, or incurred, the | ||||||
12 | intangible expense or cost to a person that is | ||||||
13 | not a related member, and | ||||||
14 | (b) the transaction giving rise to the | ||||||
15 | intangible expense or cost between the | ||||||
16 | taxpayer and the person did not have as a | ||||||
17 | principal purpose the avoidance of Illinois | ||||||
18 | income tax, and is paid pursuant to a contract | ||||||
19 | or agreement that reflects arm's-length terms; | ||||||
20 | or | ||||||
21 | (iii) any item of intangible expense or cost | ||||||
22 | paid, accrued, or incurred, directly or | ||||||
23 | indirectly, from a transaction with a person if the | ||||||
24 | taxpayer establishes by clear and convincing | ||||||
25 | evidence, that the adjustments are unreasonable; | ||||||
26 | or if the taxpayer and the Director agree in |
| |||||||
| |||||||
1 | writing to the application or use of an alternative | ||||||
2 | method of apportionment under Section 304(f);
| ||||||
3 | Nothing in this subsection shall preclude the | ||||||
4 | Director from making any other adjustment | ||||||
5 | otherwise allowed under Section 404 of this Act for | ||||||
6 | any tax year beginning after the effective date of | ||||||
7 | this amendment provided such adjustment is made | ||||||
8 | pursuant to regulation adopted by the Department | ||||||
9 | and such regulations provide methods and standards | ||||||
10 | by which the Department will utilize its authority | ||||||
11 | under Section 404 of this Act;
| ||||||
12 | (D-19) For taxable years ending on or after | ||||||
13 | December 31, 2008, an amount equal to the amount of | ||||||
14 | insurance premium expenses and costs otherwise allowed | ||||||
15 | as a deduction in computing base income, and that were | ||||||
16 | paid, accrued, or incurred, directly or indirectly, to | ||||||
17 | a person who would be a member of the same unitary | ||||||
18 | business group but for the fact that the person is | ||||||
19 | prohibited under Section 1501(a)(27) from being | ||||||
20 | included in the unitary business group because he or | ||||||
21 | she is ordinarily required to apportion business | ||||||
22 | income under different subsections of Section 304. The | ||||||
23 | addition modification required by this subparagraph | ||||||
24 | shall be reduced to the extent that dividends were | ||||||
25 | included in base income of the unitary group for the | ||||||
26 | same taxable year and received by the taxpayer or by a |
| |||||||
| |||||||
1 | member of the taxpayer's unitary business group | ||||||
2 | (including amounts included in gross income under | ||||||
3 | Sections 951 through 964 of the Internal Revenue Code | ||||||
4 | and amounts included in gross income under Section 78 | ||||||
5 | of the Internal Revenue Code) with respect to the stock | ||||||
6 | of the same person to whom the premiums and costs were | ||||||
7 | directly or indirectly paid, incurred, or accrued. The | ||||||
8 | preceding sentence does not apply to the extent that | ||||||
9 | the same dividends caused a reduction to the addition | ||||||
10 | modification required under Section 203(a)(2)(D-17) or | ||||||
11 | Section 203(a)(2)(D-18) of this Act.
| ||||||
12 | (D-20) For taxable years beginning on or after | ||||||
13 | January 1,
2002 and ending on or before December 31, | ||||||
14 | 2006, in
the
case of a distribution from a qualified | ||||||
15 | tuition program under Section 529 of
the Internal | ||||||
16 | Revenue Code, other than (i) a distribution from a | ||||||
17 | College Savings
Pool created under Section 16.5 of the | ||||||
18 | State Treasurer Act or (ii) a
distribution from the | ||||||
19 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
20 | the amount excluded from gross income under Section | ||||||
21 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
22 | January 1, 2007, in the case of a distribution from a | ||||||
23 | qualified tuition program under Section 529 of the | ||||||
24 | Internal Revenue Code, other than (i) a distribution | ||||||
25 | from a College Savings Pool created under Section 16.5 | ||||||
26 | of the State Treasurer Act, (ii) a distribution from |
| |||||||
| |||||||
1 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
2 | distribution from a qualified tuition program under | ||||||
3 | Section 529 of the Internal Revenue Code that (I) | ||||||
4 | adopts and determines that its offering materials | ||||||
5 | comply with the College Savings Plans Network's | ||||||
6 | disclosure principles and (II) has made reasonable | ||||||
7 | efforts to inform in-state residents of the existence | ||||||
8 | of in-state qualified tuition programs by informing | ||||||
9 | Illinois residents directly and, where applicable, to | ||||||
10 | inform financial intermediaries distributing the | ||||||
11 | program to inform in-state residents of the existence | ||||||
12 | of in-state qualified tuition programs at least | ||||||
13 | annually, an amount equal to the amount excluded from | ||||||
14 | gross income under Section 529(c)(3)(B). | ||||||
15 | For the purposes of this subparagraph (D-20), a | ||||||
16 | qualified tuition program has made reasonable efforts | ||||||
17 | if it makes disclosures (which may use the term | ||||||
18 | "in-state program" or "in-state plan" and need not | ||||||
19 | specifically refer to Illinois or its qualified | ||||||
20 | programs by name) (i) directly to prospective | ||||||
21 | participants in its offering materials or makes a | ||||||
22 | public disclosure, such as a website posting; and (ii) | ||||||
23 | where applicable, to intermediaries selling the | ||||||
24 | out-of-state program in the same manner that the | ||||||
25 | out-of-state program distributes its offering | ||||||
26 | materials;
|
| |||||||
| |||||||
1 | (D-21) For taxable years beginning on or after | ||||||
2 | January 1, 2007, in the case of transfer of moneys from | ||||||
3 | a qualified tuition program under Section 529 of the | ||||||
4 | Internal Revenue Code that is administered by the State | ||||||
5 | to an out-of-state program, an amount equal to the | ||||||
6 | amount of moneys previously deducted from base income | ||||||
7 | under subsection (a)(2)(Y) of this Section.
| ||||||
8 | and by deducting from the total so obtained the
sum of the | ||||||
9 | following amounts:
| ||||||
10 | (E) For taxable years ending before December 31, | ||||||
11 | 2001,
any amount included in such total in respect of | ||||||
12 | any compensation
(including but not limited to any | ||||||
13 | compensation paid or accrued to a
serviceman while a | ||||||
14 | prisoner of war or missing in action) paid to a | ||||||
15 | resident
by reason of being on active duty in the Armed | ||||||
16 | Forces of the United States
and in respect of any | ||||||
17 | compensation paid or accrued to a resident who as a
| ||||||
18 | governmental employee was a prisoner of war or missing | ||||||
19 | in action, and in
respect of any compensation paid to a | ||||||
20 | resident in 1971 or thereafter for
annual training | ||||||
21 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
22 | United States Code as a member of the Illinois National | ||||||
23 | Guard or, beginning with taxable years ending on or | ||||||
24 | after December 31, 2007, the National Guard of any | ||||||
25 | other state.
For taxable years ending on or after | ||||||
26 | December 31, 2001, any amount included in
such total in |
| |||||||
| |||||||
1 | respect of any compensation (including but not limited | ||||||
2 | to any
compensation paid or accrued to a serviceman | ||||||
3 | while a prisoner of war or missing
in action) paid to a | ||||||
4 | resident by reason of being a member of any component | ||||||
5 | of
the Armed Forces of the United States and in respect | ||||||
6 | of any compensation paid
or accrued to a resident who | ||||||
7 | as a governmental employee was a prisoner of war
or | ||||||
8 | missing in action, and in respect of any compensation | ||||||
9 | paid to a resident in
2001 or thereafter by reason of | ||||||
10 | being a member of the Illinois National Guard or, | ||||||
11 | beginning with taxable years ending on or after | ||||||
12 | December 31, 2007, the National Guard of any other | ||||||
13 | state.
The provisions of this subparagraph (E) | ||||||
14 | amendatory Act of the 92nd General Assembly are exempt
| ||||||
15 | from the provisions of Section 250;
| ||||||
16 | (F) An amount equal to all amounts included in such | ||||||
17 | total pursuant
to the provisions of Sections 402(a), | ||||||
18 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
19 | Internal Revenue Code, or included in such total as
| ||||||
20 | distributions under the provisions of any retirement | ||||||
21 | or disability plan for
employees of any governmental | ||||||
22 | agency or unit, or retirement payments to
retired | ||||||
23 | partners, which payments are excluded in computing net | ||||||
24 | earnings
from self employment by Section 1402 of the | ||||||
25 | Internal Revenue Code and
regulations adopted pursuant | ||||||
26 | thereto;
|
| |||||||
| |||||||
1 | (G) The valuation limitation amount;
| ||||||
2 | (H) An amount equal to the amount of any tax | ||||||
3 | imposed by this Act
which was refunded to the taxpayer | ||||||
4 | and included in such total for the
taxable year;
| ||||||
5 | (I) An amount equal to all amounts included in such | ||||||
6 | total pursuant
to the provisions of Section 111 of the | ||||||
7 | Internal Revenue Code as a
recovery of items previously | ||||||
8 | deducted from adjusted gross income in the
computation | ||||||
9 | of taxable income;
| ||||||
10 | (J) An amount equal to those dividends included in | ||||||
11 | such total which were
paid by a corporation which | ||||||
12 | conducts business operations in an Enterprise
Zone or | ||||||
13 | zones created under the Illinois Enterprise Zone Act or | ||||||
14 | a River Edge Redevelopment Zone or zones created under | ||||||
15 | the River Edge Redevelopment Zone Act, and conducts
| ||||||
16 | substantially all of its operations in an Enterprise | ||||||
17 | Zone or zones or a River Edge Redevelopment Zone or | ||||||
18 | zones. This subparagraph (J) is exempt from the | ||||||
19 | provisions of Section 250;
| ||||||
20 | (K) An amount equal to those dividends included in | ||||||
21 | such total that
were paid by a corporation that | ||||||
22 | conducts business operations in a federally
designated | ||||||
23 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
24 | High Impact
Business located in Illinois; provided | ||||||
25 | that dividends eligible for the
deduction provided in | ||||||
26 | subparagraph (J) of paragraph (2) of this subsection
|
| |||||||
| |||||||
1 | shall not be eligible for the deduction provided under | ||||||
2 | this subparagraph
(K);
| ||||||
3 | (L) For taxable years ending after December 31, | ||||||
4 | 1983, an amount equal to
all social security benefits | ||||||
5 | and railroad retirement benefits included in
such | ||||||
6 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
7 | Revenue Code;
| ||||||
8 | (M) With the exception of any amounts subtracted | ||||||
9 | under subparagraph
(N), an amount equal to the sum of | ||||||
10 | all amounts disallowed as
deductions by (i) Sections | ||||||
11 | 171(a) (2), and 265(2) of the Internal Revenue Code
of | ||||||
12 | 1954, as now or hereafter amended , and all amounts of | ||||||
13 | expenses allocable
to interest and disallowed as | ||||||
14 | deductions by Section 265(1) of the Internal
Revenue | ||||||
15 | Code of 1954, as now or hereafter amended ;
and (ii) for | ||||||
16 | taxable years
ending on or after August 13, 1999, | ||||||
17 | Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
18 | the Internal Revenue Code , plus, for taxable years | ||||||
19 | ending on or after December 31, 2009, Section 45G(e)(3) | ||||||
20 | of the Internal Revenue Code ; the provisions of this
| ||||||
21 | subparagraph are exempt from the provisions of Section | ||||||
22 | 250;
| ||||||
23 | (N) An amount equal to all amounts included in such | ||||||
24 | total which are
exempt from taxation by this State | ||||||
25 | either by reason of its statutes or
Constitution
or by | ||||||
26 | reason of the Constitution, treaties or statutes of the |
| |||||||
| |||||||
1 | United States;
provided that, in the case of any | ||||||
2 | statute of this State that exempts income
derived from | ||||||
3 | bonds or other obligations from the tax imposed under | ||||||
4 | this Act,
the amount exempted shall be the interest net | ||||||
5 | of bond premium amortization;
| ||||||
6 | (O) An amount equal to any contribution made to a | ||||||
7 | job training
project established pursuant to the Tax | ||||||
8 | Increment Allocation Redevelopment Act;
| ||||||
9 | (P) An amount equal to the amount of the deduction | ||||||
10 | used to compute the
federal income tax credit for | ||||||
11 | restoration of substantial amounts held under
claim of | ||||||
12 | right for the taxable year pursuant to Section 1341 of | ||||||
13 | the
Internal Revenue Code or of any itemized deduction | ||||||
14 | taken from adjusted gross income in the computation of | ||||||
15 | taxable income for restoration of substantial amounts | ||||||
16 | held under claim of right for the taxable year of 1986 ;
| ||||||
17 | (Q) An amount equal to any amounts included in such | ||||||
18 | total, received by
the taxpayer as an acceleration in | ||||||
19 | the payment of life, endowment or annuity
benefits in | ||||||
20 | advance of the time they would otherwise be payable as | ||||||
21 | an indemnity
for a terminal illness;
| ||||||
22 | (R) An amount equal to the amount of any federal or | ||||||
23 | State bonus paid
to veterans of the Persian Gulf War;
| ||||||
24 | (S) An amount, to the extent included in adjusted | ||||||
25 | gross income, equal
to the amount of a contribution | ||||||
26 | made in the taxable year on behalf of the
taxpayer to a |
| |||||||
| |||||||
1 | medical care savings account established under the | ||||||
2 | Medical Care
Savings Account Act or the Medical Care | ||||||
3 | Savings Account Act of 2000 to the
extent the | ||||||
4 | contribution is accepted by the account
administrator | ||||||
5 | as provided in that Act;
| ||||||
6 | (T) An amount, to the extent included in adjusted | ||||||
7 | gross income, equal to
the amount of interest earned in | ||||||
8 | the taxable year on a medical care savings
account | ||||||
9 | established under the Medical Care Savings Account Act | ||||||
10 | or the Medical
Care Savings Account Act of 2000 on | ||||||
11 | behalf of the
taxpayer, other than interest added | ||||||
12 | pursuant to item (D-5) of this paragraph
(2);
| ||||||
13 | (U) For one taxable year beginning on or after | ||||||
14 | January 1,
1994, an
amount equal to the total amount of | ||||||
15 | tax imposed and paid under subsections (a)
and (b) of | ||||||
16 | Section 201 of this Act on grant amounts received by | ||||||
17 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
18 | Act during the taxpayer's taxable years
1992 and 1993;
| ||||||
19 | (V) Beginning with tax years ending on or after | ||||||
20 | December 31, 1995 and
ending with tax years ending on | ||||||
21 | or before December 31, 2004, an amount equal to
the | ||||||
22 | amount paid by a taxpayer who is a
self-employed | ||||||
23 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
24 | in a Subchapter S corporation for health insurance or | ||||||
25 | long-term
care insurance for that taxpayer or that | ||||||
26 | taxpayer's spouse or dependents, to
the extent that the |
| |||||||
| |||||||
1 | amount paid for that health insurance or long-term care
| ||||||
2 | insurance may be deducted under Section 213 of the | ||||||
3 | Internal Revenue Code of
1986 , has not been deducted on | ||||||
4 | the federal income tax return of the taxpayer,
and does | ||||||
5 | not exceed the taxable income attributable to that | ||||||
6 | taxpayer's income,
self-employment income, or | ||||||
7 | Subchapter S corporation income; except that no
| ||||||
8 | deduction shall be allowed under this item (V) if the | ||||||
9 | taxpayer is eligible to
participate in any health | ||||||
10 | insurance or long-term care insurance plan of an
| ||||||
11 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
12 | amount of the health insurance and long-term care | ||||||
13 | insurance
subtracted under this item (V) shall be | ||||||
14 | determined by multiplying total
health insurance and | ||||||
15 | long-term care insurance premiums paid by the taxpayer
| ||||||
16 | times a number that represents the fractional | ||||||
17 | percentage of eligible medical
expenses under Section | ||||||
18 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
19 | deducted on the taxpayer's federal income tax return;
| ||||||
20 | (W) For taxable years beginning on or after January | ||||||
21 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
22 | gross income
in the taxable year from amounts converted | ||||||
23 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
24 | exempt from the provisions of Section
250;
| ||||||
25 | (X) For taxable year 1999 and thereafter, an amount | ||||||
26 | equal to the
amount of any (i) distributions, to the |
| |||||||
| |||||||
1 | extent includible in gross income for
federal income | ||||||
2 | tax purposes, made to the taxpayer because of his or | ||||||
3 | her status
as a victim of persecution for racial or | ||||||
4 | religious reasons by Nazi Germany or
any other Axis | ||||||
5 | regime or as an heir of the victim and (ii) items
of | ||||||
6 | income, to the extent
includible in gross income for | ||||||
7 | federal income tax purposes, attributable to,
derived | ||||||
8 | from or in any way related to assets stolen from, | ||||||
9 | hidden from, or
otherwise lost to a victim of
| ||||||
10 | persecution for racial or religious reasons by Nazi | ||||||
11 | Germany or any other Axis
regime immediately prior to, | ||||||
12 | during, and immediately after World War II,
including, | ||||||
13 | but
not limited to, interest on the proceeds receivable | ||||||
14 | as insurance
under policies issued to a victim of | ||||||
15 | persecution for racial or religious
reasons
by Nazi | ||||||
16 | Germany or any other Axis regime by European insurance | ||||||
17 | companies
immediately prior to and during World War II;
| ||||||
18 | provided, however, this subtraction from federal | ||||||
19 | adjusted gross income does not
apply to assets acquired | ||||||
20 | with such assets or with the proceeds from the sale of
| ||||||
21 | such assets; provided, further, this paragraph shall | ||||||
22 | only apply to a taxpayer
who was the first recipient of | ||||||
23 | such assets after their recovery and who is a
victim of | ||||||
24 | persecution for racial or religious reasons
by Nazi | ||||||
25 | Germany or any other Axis regime or as an heir of the | ||||||
26 | victim. The
amount of and the eligibility for any |
| |||||||
| |||||||
1 | public assistance, benefit, or
similar entitlement is | ||||||
2 | not affected by the inclusion of items (i) and (ii) of
| ||||||
3 | this paragraph in gross income for federal income tax | ||||||
4 | purposes.
This paragraph is exempt from the provisions | ||||||
5 | of Section 250;
| ||||||
6 | (Y) For taxable years beginning on or after January | ||||||
7 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
8 | moneys contributed in the taxable year to a College | ||||||
9 | Savings Pool account under
Section 16.5 of the State | ||||||
10 | Treasurer Act, except that amounts excluded from
gross | ||||||
11 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
12 | Revenue Code
shall not be considered moneys | ||||||
13 | contributed under this subparagraph (Y). For taxable | ||||||
14 | years beginning on or after January 1, 2005, a maximum | ||||||
15 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
16 | College Savings Pool account under Section 16.5 of the
| ||||||
17 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
18 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
19 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
20 | Internal
Revenue Code shall not be considered moneys | ||||||
21 | contributed under this subparagraph
(Y). This
| ||||||
22 | subparagraph (Y) is exempt from the provisions of | ||||||
23 | Section 250;
| ||||||
24 | (Z) For taxable years 2001 and thereafter, for the | ||||||
25 | taxable year in
which the bonus depreciation deduction
| ||||||
26 | is taken on the taxpayer's federal income tax return |
| |||||||
| |||||||
1 | under
subsection (k) of Section 168 of the Internal | ||||||
2 | Revenue Code and for each
applicable taxable year | ||||||
3 | thereafter, an amount equal to "x", where:
| ||||||
4 | (1) "y" equals the amount of the depreciation | ||||||
5 | deduction taken for the
taxable year
on the | ||||||
6 | taxpayer's federal income tax return on property | ||||||
7 | for which the bonus
depreciation deduction
was | ||||||
8 | taken in any year under subsection (k) of Section | ||||||
9 | 168 of the Internal
Revenue Code, but not including | ||||||
10 | the bonus depreciation deduction;
| ||||||
11 | (2) for taxable years ending on or before | ||||||
12 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
13 | and then divided by 70 (or "y"
multiplied by | ||||||
14 | 0.429); and | ||||||
15 | (3) for taxable years ending after December | ||||||
16 | 31, 2005: | ||||||
17 | (i) for property on which a bonus | ||||||
18 | depreciation deduction of 30% of the adjusted | ||||||
19 | basis was taken, "x" equals "y" multiplied by | ||||||
20 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
21 | 0.429); and | ||||||
22 | (ii) for property on which a bonus | ||||||
23 | depreciation deduction of 50% of the adjusted | ||||||
24 | basis was taken, "x" equals "y" multiplied by | ||||||
25 | 1.0.
| ||||||
26 | The aggregate amount deducted under this |
| |||||||
| |||||||
1 | subparagraph in all taxable
years for any one piece of | ||||||
2 | property may not exceed the amount of the bonus
| ||||||
3 | depreciation deduction
taken on that property on the | ||||||
4 | taxpayer's federal income tax return under
subsection | ||||||
5 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
6 | subparagraph (Z) is exempt from the provisions of | ||||||
7 | Section 250;
| ||||||
8 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
9 | or otherwise disposes of
property for which the | ||||||
10 | taxpayer was required in any taxable year to make an
| ||||||
11 | addition modification under subparagraph (D-15), then | ||||||
12 | an amount equal to that
addition modification.
| ||||||
13 | If the taxpayer continues to own property through | ||||||
14 | the last day of the last tax year for which the | ||||||
15 | taxpayer may claim a depreciation deduction for | ||||||
16 | federal income tax purposes and for which the taxpayer | ||||||
17 | was required in any taxable year to make an addition | ||||||
18 | modification under subparagraph (D-15), then an amount | ||||||
19 | equal to that addition modification.
| ||||||
20 | The taxpayer is allowed to take the deduction under | ||||||
21 | this subparagraph
only once with respect to any one | ||||||
22 | piece of property. | ||||||
23 | This subparagraph (AA) is exempt from the | ||||||
24 | provisions of Section 250;
| ||||||
25 | (BB) Any amount included in adjusted gross income, | ||||||
26 | other
than
salary,
received by a driver in a |
| |||||||
| |||||||
1 | ridesharing arrangement using a motor vehicle;
| ||||||
2 | (CC) 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 that 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 that | ||||||
17 | addition modification. This subparagraph (CC) is | ||||||
18 | exempt from the provisions of Section 250; | ||||||
19 | (DD) 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(a)(2)(D-17) for | ||||||
10 | interest paid, accrued, or incurred, directly or | ||||||
11 | indirectly, to the same person. This subparagraph (DD) | ||||||
12 | is exempt from the provisions of Section 250; and | ||||||
13 | (EE) 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(a)(2)(D-18) for | ||||||
4 | intangible expenses and costs paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to the same foreign | ||||||
6 | person. This subparagraph (EE) is exempt from the | ||||||
7 | provisions of Section 250 ; and | ||||||
8 | (FF) For taxable years ending on or after December | ||||||
9 | 31, 2009, in the case of a taxpayer who was required to | ||||||
10 | add back any insurance premiums under Section | ||||||
11 | 203(a)(2)(D-19), an amount equal to the amount of any | ||||||
12 | reimbursement received from the insurance company for | ||||||
13 | any loss covered by a policy for which those premiums | ||||||
14 | were paid, to the extent of the federal income tax | ||||||
15 | deduction that would have been allowable for the loss | ||||||
16 | in computing adjusted gross income if not for the | ||||||
17 | reimbursement. This subparagraph (FF) is exempt from | ||||||
18 | the provisions of Section 250 .
| ||||||
19 | (b) Corporations.
| ||||||
20 | (1) In general. In the case of a corporation, base | ||||||
21 | income means an
amount equal to the taxpayer's taxable | ||||||
22 | income for the taxable year as
modified by paragraph (2).
| ||||||
23 | (2) Modifications. The taxable income referred to in | ||||||
24 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
25 | of the following amounts:
|
| |||||||
| |||||||
1 | (A) An amount equal to all amounts paid or accrued | ||||||
2 | to the taxpayer
as interest and all distributions | ||||||
3 | received from regulated investment
companies during | ||||||
4 | the taxable year to the extent excluded from gross
| ||||||
5 | income in the computation of taxable income;
| ||||||
6 | (B) An amount equal to the amount of tax imposed by | ||||||
7 | this Act to the
extent deducted from gross income in | ||||||
8 | the computation of taxable income
for the taxable year;
| ||||||
9 | (C) In the case of a regulated investment company, | ||||||
10 | an amount equal to
the excess of (i) the net long-term | ||||||
11 | capital gain for the taxable year, over
(ii) the amount | ||||||
12 | of the capital gain dividends designated as such in | ||||||
13 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
14 | Revenue Code and any amount
designated under Section | ||||||
15 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
16 | attributable to the taxable year (this amendatory Act | ||||||
17 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
18 | law and is not a new
enactment);
| ||||||
19 | (D) The amount of any net operating loss deduction | ||||||
20 | taken in arriving
at taxable income, other than a net | ||||||
21 | operating loss carried forward from a
taxable year | ||||||
22 | ending prior to December 31, 1986;
| ||||||
23 | (E) For taxable years in which a net operating loss | ||||||
24 | carryback or
carryforward from a taxable year ending | ||||||
25 | prior to December 31, 1986 is an
element of taxable | ||||||
26 | income under paragraph (1) of subsection (e) or
|
| |||||||
| |||||||
1 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
2 | the amount by which
addition modifications other than | ||||||
3 | those provided by this subparagraph (E)
exceeded | ||||||
4 | subtraction modifications in such earlier taxable | ||||||
5 | year, with the
following limitations applied in the | ||||||
6 | order that they are listed:
| ||||||
7 | (i) 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 be reduced by the amount of | ||||||
11 | addition
modification under this subparagraph (E) | ||||||
12 | which related to that net operating
loss and which | ||||||
13 | was taken into account in calculating the base | ||||||
14 | income of an
earlier taxable year, and
| ||||||
15 | (ii) the addition modification relating to the | ||||||
16 | net operating loss
carried back or forward to the | ||||||
17 | taxable year from any taxable year ending
prior to | ||||||
18 | December 31, 1986 shall not exceed the amount of | ||||||
19 | such carryback or
carryforward;
| ||||||
20 | For taxable years in which there is a net operating | ||||||
21 | loss carryback or
carryforward from more than one other | ||||||
22 | taxable year ending prior to December
31, 1986, the | ||||||
23 | addition modification provided in this subparagraph | ||||||
24 | (E) shall
be the sum of the amounts computed | ||||||
25 | independently under the preceding
provisions of this | ||||||
26 | subparagraph (E) for each such taxable year;
|
| |||||||
| |||||||
1 | (E-5) For taxable years ending after December 31, | ||||||
2 | 1997, an
amount equal to any eligible remediation costs | ||||||
3 | that the corporation
deducted in computing adjusted | ||||||
4 | gross income and for which the
corporation claims a | ||||||
5 | credit under subsection (l) of Section 201;
| ||||||
6 | (E-10) 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 | (E-11) 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 (E-10), then | ||||||
15 | an amount equal
to the aggregate amount of the | ||||||
16 | deductions taken in all taxable
years under | ||||||
17 | subparagraph (T) 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 (T), 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 | (E-12) 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 the 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 pursuant to Sections 951 | ||||||
24 | through 964 of the Internal Revenue Code and amounts | ||||||
25 | included in gross income under Section 78 of the | ||||||
26 | Internal Revenue Code) with respect to the stock of the |
| |||||||
| |||||||
1 | same person to whom the interest was paid, accrued, or | ||||||
2 | incurred.
| ||||||
3 | This paragraph shall not apply to the following:
| ||||||
4 | (i) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person who | ||||||
6 | is subject in a foreign country or state, other | ||||||
7 | than a state which requires mandatory unitary | ||||||
8 | reporting, to a tax on or measured by net income | ||||||
9 | with respect to such interest; or | ||||||
10 | (ii) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer can establish, based on a | ||||||
13 | preponderance of the evidence, both of the | ||||||
14 | following: | ||||||
15 | (a) the person, during the same taxable | ||||||
16 | year, paid, accrued, or incurred, the interest | ||||||
17 | to a person that is not a related member, and | ||||||
18 | (b) the transaction giving rise to the | ||||||
19 | interest expense between the taxpayer and the | ||||||
20 | person did not have as a principal purpose the | ||||||
21 | avoidance of Illinois income tax, and is paid | ||||||
22 | pursuant to a contract or agreement that | ||||||
23 | reflects an arm's-length interest rate and | ||||||
24 | terms; or
| ||||||
25 | (iii) the taxpayer can establish, based on | ||||||
26 | clear and convincing evidence, that the interest |
| |||||||
| |||||||
1 | paid, accrued, or incurred relates to a contract or | ||||||
2 | agreement entered into at arm's-length rates and | ||||||
3 | terms and the principal purpose for the payment is | ||||||
4 | not federal or Illinois tax avoidance; or
| ||||||
5 | (iv) an item of interest paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to a person if | ||||||
7 | the taxpayer establishes by clear and convincing | ||||||
8 | evidence that the adjustments are unreasonable; or | ||||||
9 | if the taxpayer and the Director agree in writing | ||||||
10 | to the application or use of an alternative method | ||||||
11 | of apportionment under Section 304(f).
| ||||||
12 | Nothing in this subsection shall preclude the | ||||||
13 | Director from making any other adjustment | ||||||
14 | otherwise allowed under Section 404 of this Act for | ||||||
15 | any tax year beginning after the effective date of | ||||||
16 | this amendment provided such adjustment is made | ||||||
17 | pursuant to regulation adopted by the Department | ||||||
18 | and such regulations provide methods and standards | ||||||
19 | by which the Department will utilize its authority | ||||||
20 | under Section 404 of this Act;
| ||||||
21 | (E-13) An amount equal to the amount of intangible | ||||||
22 | expenses and costs otherwise allowed as a deduction in | ||||||
23 | computing base income, and that were paid, accrued, or | ||||||
24 | incurred, directly or indirectly, (i) for taxable | ||||||
25 | years ending on or after December 31, 2004, to a | ||||||
26 | foreign person who would be a member of the same |
| |||||||
| |||||||
1 | unitary business group but for the fact that the | ||||||
2 | foreign person's business activity outside the United | ||||||
3 | States is 80% or more of that person's total business | ||||||
4 | activity and (ii) for taxable years ending on or after | ||||||
5 | December 31, 2008, to a person who would be a member of | ||||||
6 | the same unitary business group but for the fact that | ||||||
7 | the person is prohibited under Section 1501(a)(27) | ||||||
8 | from being included in the unitary business group | ||||||
9 | because he or she is ordinarily required to apportion | ||||||
10 | business income under different subsections of Section | ||||||
11 | 304. The addition modification required by this | ||||||
12 | subparagraph shall be reduced to the extent that | ||||||
13 | dividends were included in base income of the unitary | ||||||
14 | group for the same taxable year and received by the | ||||||
15 | taxpayer or by a member of the taxpayer's unitary | ||||||
16 | business group (including amounts included in gross | ||||||
17 | income pursuant to Sections 951 through 964 of the | ||||||
18 | Internal Revenue Code and amounts included in gross | ||||||
19 | income under Section 78 of the Internal Revenue Code) | ||||||
20 | with respect to the stock of the same person to whom | ||||||
21 | the intangible expenses and costs were directly or | ||||||
22 | indirectly paid, incurred, or accrued. The preceding | ||||||
23 | sentence shall not apply to the extent that the same | ||||||
24 | dividends caused a reduction to the addition | ||||||
25 | modification required under Section 203(b)(2)(E-12) of | ||||||
26 | this Act.
As used in this subparagraph, the term |
| |||||||
| |||||||
1 | "intangible expenses and costs" includes (1) expenses, | ||||||
2 | losses, and costs for, or related to, the direct or | ||||||
3 | indirect acquisition, use, maintenance or management, | ||||||
4 | ownership, sale, exchange, or any other disposition of | ||||||
5 | intangible property; (2) losses incurred, directly or | ||||||
6 | indirectly, from factoring transactions or discounting | ||||||
7 | transactions; (3) royalty, patent, technical, and | ||||||
8 | copyright fees; (4) licensing fees; and (5) other | ||||||
9 | similar expenses and costs.
For purposes of this | ||||||
10 | subparagraph, "intangible property" includes patents, | ||||||
11 | patent applications, trade names, trademarks, service | ||||||
12 | marks, copyrights, mask works, trade secrets, and | ||||||
13 | similar types of intangible assets. | ||||||
14 | This paragraph shall not apply to the following: | ||||||
15 | (i) any item of intangible expenses or costs | ||||||
16 | paid, accrued, or incurred, directly or | ||||||
17 | indirectly, from a transaction with a person who is | ||||||
18 | subject in a foreign country or state, other than a | ||||||
19 | state which requires mandatory unitary reporting, | ||||||
20 | to a tax on or measured by net income with respect | ||||||
21 | to such item; or | ||||||
22 | (ii) any item of intangible expense or cost | ||||||
23 | paid, accrued, or incurred, directly or | ||||||
24 | indirectly, if the taxpayer can establish, based | ||||||
25 | on a preponderance of the evidence, both of the | ||||||
26 | following: |
| |||||||
| |||||||
1 | (a) the person during the same taxable | ||||||
2 | year paid, accrued, or incurred, the | ||||||
3 | intangible expense or cost to a person that is | ||||||
4 | not a related member, and | ||||||
5 | (b) the transaction giving rise to the | ||||||
6 | intangible expense or cost between the | ||||||
7 | taxpayer and the person did not have as a | ||||||
8 | principal purpose the avoidance of Illinois | ||||||
9 | income tax, and is paid pursuant to a contract | ||||||
10 | or agreement that reflects arm's-length terms; | ||||||
11 | or | ||||||
12 | (iii) any item of intangible expense or cost | ||||||
13 | paid, accrued, or incurred, directly or | ||||||
14 | indirectly, from a transaction with a person if the | ||||||
15 | taxpayer establishes by clear and convincing | ||||||
16 | evidence, that the adjustments are unreasonable; | ||||||
17 | or if the taxpayer and the Director agree in | ||||||
18 | writing to the application or use of an alternative | ||||||
19 | method of apportionment under Section 304(f);
| ||||||
20 | Nothing in this subsection shall preclude the | ||||||
21 | Director from making any other adjustment | ||||||
22 | otherwise allowed under Section 404 of this Act for | ||||||
23 | any tax year beginning after the effective date of | ||||||
24 | this amendment provided such adjustment is made | ||||||
25 | pursuant to regulation adopted by the Department | ||||||
26 | and such regulations provide methods and standards |
| |||||||
| |||||||
1 | by which the Department will utilize its authority | ||||||
2 | under Section 404 of this Act;
| ||||||
3 | (E-14) For taxable years ending on or after | ||||||
4 | December 31, 2008, an amount equal to the amount of | ||||||
5 | insurance premium expenses and costs otherwise allowed | ||||||
6 | as a deduction in computing base income, and that were | ||||||
7 | paid, accrued, or incurred, directly or indirectly, to | ||||||
8 | a person who would be a member of the same unitary | ||||||
9 | business group but for the fact that the person is | ||||||
10 | prohibited under Section 1501(a)(27) from being | ||||||
11 | included in the unitary business group because he or | ||||||
12 | she is ordinarily required to apportion business | ||||||
13 | income under different subsections of Section 304. The | ||||||
14 | addition modification required by this subparagraph | ||||||
15 | shall be reduced to the extent that dividends were | ||||||
16 | included in base income of the unitary group for the | ||||||
17 | same taxable year and received by the taxpayer or by a | ||||||
18 | member of the taxpayer's unitary business group | ||||||
19 | (including amounts included in gross income under | ||||||
20 | Sections 951 through 964 of the Internal Revenue Code | ||||||
21 | and amounts included in gross income under Section 78 | ||||||
22 | of the Internal Revenue Code) with respect to the stock | ||||||
23 | of the same person to whom the premiums and costs were | ||||||
24 | directly or indirectly paid, incurred, or accrued. The | ||||||
25 | preceding sentence does not apply to the extent that | ||||||
26 | the same dividends caused a reduction to the addition |
| |||||||
| |||||||
1 | modification required under Section 203(b)(2)(E-12) or | ||||||
2 | Section 203(b)(2)(E-13) of this Act;
| ||||||
3 | (E-15) For taxable years beginning after December | ||||||
4 | 31, 2008, any deduction for dividends paid by a captive | ||||||
5 | real estate investment trust that is allowed to a real | ||||||
6 | estate investment trust under Section 857(b)(2)(B) of | ||||||
7 | the Internal Revenue Code for dividends paid;
| ||||||
8 | and by deducting from the total so obtained the sum of the | ||||||
9 | following
amounts:
| ||||||
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 any amount included in such | ||||||
14 | total under
Section 78 of the Internal Revenue Code;
| ||||||
15 | (H) In the case of a regulated investment company, | ||||||
16 | an amount equal
to the amount of exempt interest | ||||||
17 | dividends as defined in subsection (b)
(5) of Section | ||||||
18 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
19 | for the taxable year;
| ||||||
20 | (I) With the exception of any amounts subtracted | ||||||
21 | under subparagraph
(J),
an amount equal to the sum of | ||||||
22 | all amounts disallowed as
deductions by (i) Sections | ||||||
23 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
24 | interest expense by Section 291(a)(3) of the Internal | ||||||
25 | Revenue Code , as now
or hereafter amended , and all | ||||||
26 | amounts of expenses allocable to interest and
|
| |||||||
| |||||||
1 | disallowed as deductions by Section 265(a)(1) of the | ||||||
2 | Internal Revenue Code ,
as now or hereafter amended ;
and | ||||||
3 | (ii) for taxable years
ending on or after August 13, | ||||||
4 | 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
5 | 832(b)(5)(B)(i) of the Internal Revenue Code , plus, | ||||||
6 | for tax years ending on or after December 31, 2009, | ||||||
7 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
8 | of the Internal Revenue Code and the policyholders' | ||||||
9 | share of tax-exempt interest of a life insurance | ||||||
10 | company under Section 807(a)(2)(B) of the Internal | ||||||
11 | Revenue Code (in the case of a life insurance company | ||||||
12 | with gross income from a decrease in reserves for the | ||||||
13 | tax year) or Section 807(b)(1)(B) of the Internal | ||||||
14 | Revenue Code (in the case of a life insurance company | ||||||
15 | allowed a deduction for an increase in reserves for the | ||||||
16 | tax year) ; the
provisions of this
subparagraph are | ||||||
17 | exempt from the provisions of Section 250;
| ||||||
18 | (J) An amount equal to all amounts included in such | ||||||
19 | total which are
exempt from taxation by this State | ||||||
20 | either by reason of its statutes or
Constitution
or by | ||||||
21 | reason of the Constitution, treaties or statutes of the | ||||||
22 | United States;
provided that, in the case of any | ||||||
23 | statute of this State that exempts income
derived from | ||||||
24 | bonds or other obligations from the tax imposed under | ||||||
25 | this Act,
the amount exempted shall be the interest net | ||||||
26 | of bond premium amortization;
|
| |||||||
| |||||||
1 | (K) An amount equal to those dividends included in | ||||||
2 | such total
which were paid by a corporation which | ||||||
3 | conducts
business operations in an Enterprise Zone or | ||||||
4 | zones created under
the Illinois Enterprise Zone Act or | ||||||
5 | a River Edge Redevelopment Zone or zones created under | ||||||
6 | the River Edge Redevelopment Zone Act and conducts | ||||||
7 | substantially all of its
operations in an Enterprise | ||||||
8 | Zone or zones or a River Edge Redevelopment Zone or | ||||||
9 | zones. This subparagraph (K) is exempt from the | ||||||
10 | provisions of Section 250;
| ||||||
11 | (L) An amount equal to those dividends included in | ||||||
12 | such total that
were paid by a corporation that | ||||||
13 | conducts business operations in a federally
designated | ||||||
14 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
15 | High Impact
Business located in Illinois; provided | ||||||
16 | that dividends eligible for the
deduction provided in | ||||||
17 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
18 | shall not be eligible for the deduction provided under | ||||||
19 | this subparagraph
(L);
| ||||||
20 | (M) For any taxpayer that is a financial | ||||||
21 | organization within the meaning
of Section 304(c) of | ||||||
22 | this Act, an amount included in such total as interest
| ||||||
23 | income from a loan or loans made by such taxpayer to a | ||||||
24 | borrower, to the extent
that such a loan is secured by | ||||||
25 | property which is eligible for the Enterprise
Zone | ||||||
26 | Investment Credit or the River Edge Redevelopment Zone |
| |||||||
| |||||||
1 | Investment Credit. To determine the portion of a loan | ||||||
2 | or loans that is
secured by property eligible for a | ||||||
3 | Section 201(f) investment
credit to the borrower, the | ||||||
4 | entire principal amount of the loan or loans
between | ||||||
5 | the taxpayer and the borrower should be divided into | ||||||
6 | the basis of the
Section 201(f) investment credit | ||||||
7 | property which secures the
loan or loans, using for | ||||||
8 | this purpose the original basis of such property on
the | ||||||
9 | date that it was placed in service in the
Enterprise | ||||||
10 | Zone or the River Edge Redevelopment Zone. The | ||||||
11 | subtraction modification available to taxpayer in any
| ||||||
12 | year under this subsection shall be that portion of the | ||||||
13 | total interest paid
by the borrower with respect to | ||||||
14 | such loan attributable to the eligible
property as | ||||||
15 | calculated under the previous sentence. This | ||||||
16 | subparagraph (M) is exempt from the provisions of | ||||||
17 | Section 250;
| ||||||
18 | (M-1) For any taxpayer that is a financial | ||||||
19 | organization within the
meaning of Section 304(c) of | ||||||
20 | this Act, an amount included in such total as
interest | ||||||
21 | income from a loan or loans made by such taxpayer to a | ||||||
22 | borrower,
to the extent that such a loan is secured by | ||||||
23 | property which is eligible for
the High Impact Business | ||||||
24 | Investment Credit. To determine the portion of a
loan | ||||||
25 | or loans that is secured by property eligible for a | ||||||
26 | Section 201(h) investment credit to the borrower, the |
| |||||||
| |||||||
1 | entire principal amount of
the loan or loans between | ||||||
2 | the taxpayer and the borrower should be divided into
| ||||||
3 | the basis of the Section 201(h) investment credit | ||||||
4 | property which
secures the loan or loans, using for | ||||||
5 | this purpose the original basis of such
property on the | ||||||
6 | date that it was placed in service in a federally | ||||||
7 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
8 | Illinois. No taxpayer that is
eligible for the | ||||||
9 | deduction provided in subparagraph (M) of paragraph | ||||||
10 | (2) of
this subsection shall be eligible for the | ||||||
11 | deduction provided under this
subparagraph (M-1). The | ||||||
12 | subtraction modification available to taxpayers in
any | ||||||
13 | year under this subsection shall be that portion of the | ||||||
14 | total interest
paid by the borrower with respect to | ||||||
15 | such loan attributable to the eligible
property as | ||||||
16 | calculated under the previous sentence;
| ||||||
17 | (N) Two times any contribution made during the | ||||||
18 | taxable year to a
designated zone organization to the | ||||||
19 | extent that the contribution (i)
qualifies as a | ||||||
20 | charitable contribution under subsection (c) of | ||||||
21 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
22 | by its terms, be used for a
project approved by the | ||||||
23 | Department of Commerce and Economic Opportunity under | ||||||
24 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
25 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
26 | This subparagraph (N) is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250;
| ||||||
2 | (O) An amount equal to: (i) 85% for taxable years | ||||||
3 | ending on or before
December 31, 1992, or, a percentage | ||||||
4 | equal to the percentage allowable under
Section | ||||||
5 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
6 | taxable years ending
after December 31, 1992, of the | ||||||
7 | amount by which dividends included in taxable
income | ||||||
8 | and received from a corporation that is not created or | ||||||
9 | organized under
the laws of the United States or any | ||||||
10 | state or political subdivision thereof,
including, for | ||||||
11 | taxable years ending on or after December 31, 1988, | ||||||
12 | dividends
received or deemed received or paid or deemed | ||||||
13 | paid under Sections 951 through
965 964 of the Internal | ||||||
14 | Revenue Code, exceed the amount of the modification
| ||||||
15 | provided under subparagraph (G) of paragraph (2) of | ||||||
16 | this subsection (b) which
is related to such dividends, | ||||||
17 | and including, for taxable years ending on or after | ||||||
18 | December 31, 2008, dividends received from a captive | ||||||
19 | real estate investment trust; plus (ii) 100% of the | ||||||
20 | amount by which dividends,
included in taxable income | ||||||
21 | and received, including, for taxable years ending on
or | ||||||
22 | after December 31, 1988, dividends received or deemed | ||||||
23 | received or paid or
deemed paid under Sections 951 | ||||||
24 | through 964 of the Internal Revenue Code and including, | ||||||
25 | for taxable years ending on or after December 31, 2008, | ||||||
26 | dividends received from a captive real estate |
| |||||||
| |||||||
1 | investment trust, from
any such corporation specified | ||||||
2 | in clause (i) that would but for the provisions
of | ||||||
3 | Section 1504 (b) (3) of the Internal Revenue Code be | ||||||
4 | treated as a member of
the affiliated group which | ||||||
5 | includes the dividend recipient, exceed the amount
of | ||||||
6 | the modification provided under subparagraph (G) of | ||||||
7 | paragraph (2) of this
subsection (b) which is related | ||||||
8 | to such dividends. This subparagraph (O) is exempt from | ||||||
9 | the provisions of Section 250 of this Act;
| ||||||
10 | (P) An amount equal to any contribution made to a | ||||||
11 | job training project
established pursuant to the Tax | ||||||
12 | Increment Allocation Redevelopment Act;
| ||||||
13 | (Q) An amount equal to the amount of the deduction | ||||||
14 | used to compute the
federal income tax credit for | ||||||
15 | restoration of substantial amounts held under
claim of | ||||||
16 | right for the taxable year pursuant to Section 1341 of | ||||||
17 | the
Internal Revenue Code of 1986 ;
| ||||||
18 | (R) On and after July 20, 1999, in the case of an | ||||||
19 | attorney-in-fact with respect to whom an
interinsurer | ||||||
20 | or a reciprocal insurer has made the election under | ||||||
21 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
22 | 835, an amount equal to the excess, if
any, of the | ||||||
23 | amounts paid or incurred by that interinsurer or | ||||||
24 | reciprocal insurer
in the taxable year to the | ||||||
25 | attorney-in-fact over the deduction allowed to that
| ||||||
26 | interinsurer or reciprocal insurer with respect to the |
| |||||||
| |||||||
1 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
2 | Revenue Code for the taxable year; the provisions of | ||||||
3 | this subparagraph are exempt from the provisions of | ||||||
4 | Section 250;
| ||||||
5 | (S) For taxable years ending on or after December | ||||||
6 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
7 | amount equal to all amounts of income allocable to a
| ||||||
8 | shareholder subject to the Personal Property Tax | ||||||
9 | Replacement Income Tax imposed
by subsections (c) and | ||||||
10 | (d) of Section 201 of this Act, including amounts
| ||||||
11 | allocable to organizations exempt from federal income | ||||||
12 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
13 | Code. This subparagraph (S) is exempt from
the | ||||||
14 | provisions of Section 250;
| ||||||
15 | (T) For taxable years 2001 and thereafter, for the | ||||||
16 | taxable year in
which the bonus depreciation deduction
| ||||||
17 | is taken on the taxpayer's federal income tax return | ||||||
18 | under
subsection (k) of Section 168 of the Internal | ||||||
19 | Revenue Code and for each
applicable taxable year | ||||||
20 | thereafter, an amount equal to "x", where:
| ||||||
21 | (1) "y" equals the amount of the depreciation | ||||||
22 | deduction taken for the
taxable year
on the | ||||||
23 | taxpayer's federal income tax return on property | ||||||
24 | for which the bonus
depreciation deduction
was | ||||||
25 | taken in any year under subsection (k) of Section | ||||||
26 | 168 of the Internal
Revenue Code, but not including |
| |||||||
| |||||||
1 | the bonus depreciation deduction;
| ||||||
2 | (2) for taxable years ending on or before | ||||||
3 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
4 | and then divided by 70 (or "y"
multiplied by | ||||||
5 | 0.429); and | ||||||
6 | (3) for taxable years ending after December | ||||||
7 | 31, 2005: | ||||||
8 | (i) for property on which a bonus | ||||||
9 | depreciation deduction of 30% of the adjusted | ||||||
10 | basis was taken, "x" equals "y" multiplied by | ||||||
11 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
12 | 0.429); and | ||||||
13 | (ii) for property on which a bonus | ||||||
14 | depreciation deduction of 50% of the adjusted | ||||||
15 | basis was taken, "x" equals "y" multiplied by | ||||||
16 | 1.0.
| ||||||
17 | The aggregate amount deducted under this | ||||||
18 | subparagraph in all taxable
years for any one piece of | ||||||
19 | property may not exceed the amount of the bonus
| ||||||
20 | depreciation deduction
taken on that property on the | ||||||
21 | taxpayer's federal income tax return under
subsection | ||||||
22 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
23 | subparagraph (T) is exempt from the provisions of | ||||||
24 | Section 250;
| ||||||
25 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
26 | otherwise disposes of
property for which the taxpayer |
| |||||||
| |||||||
1 | was required in any taxable year to make an
addition | ||||||
2 | modification under subparagraph (E-10), then an amount | ||||||
3 | equal to that
addition modification.
| ||||||
4 | If the taxpayer continues to own property through | ||||||
5 | the last day of the last tax year for which the | ||||||
6 | taxpayer may claim a depreciation deduction for | ||||||
7 | federal income tax purposes and for which the taxpayer | ||||||
8 | was required in any taxable year to make an addition | ||||||
9 | modification under subparagraph (E-10), then an amount | ||||||
10 | equal to that addition modification.
| ||||||
11 | The taxpayer is allowed to take the deduction under | ||||||
12 | this subparagraph
only once with respect to any one | ||||||
13 | piece of property. | ||||||
14 | This subparagraph (U) is exempt from the | ||||||
15 | provisions of Section 250;
| ||||||
16 | (V) The amount of: (i) any interest income (net of | ||||||
17 | the deductions allocable thereto) taken into account | ||||||
18 | for the taxable year with respect to a transaction with | ||||||
19 | a taxpayer that is required to make an addition | ||||||
20 | modification with respect to such transaction under | ||||||
21 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
22 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
23 | the amount of such addition modification,
(ii) any | ||||||
24 | income from intangible property (net of the deductions | ||||||
25 | allocable thereto) taken into account for the taxable | ||||||
26 | year with respect to a transaction with a taxpayer that |
| |||||||
| |||||||
1 | is required to make an addition modification with | ||||||
2 | respect to such transaction under Section | ||||||
3 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
4 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
5 | addition modification, and (iii) any insurance premium | ||||||
6 | income (net of deductions allocable thereto , including | ||||||
7 | adjustments to loss reserves and payments for losses | ||||||
8 | with respect to a policy for which the premium was | ||||||
9 | received ) taken into account for the taxable year with | ||||||
10 | respect to a transaction with a taxpayer that is | ||||||
11 | required to make an addition modification with respect | ||||||
12 | to such transaction under Section 203(a)(2)(D-19), | ||||||
13 | Section 203(b)(2)(E-14), Section 203(c)(2)(G-14), or | ||||||
14 | Section 203(d)(2)(D-9), but not to exceed the amount of | ||||||
15 | that addition modification. This subparagraph (V) is | ||||||
16 | exempt from the provisions of Section 250;
| ||||||
17 | (W) An amount equal to the interest income taken | ||||||
18 | into account for the taxable year (net of the | ||||||
19 | deductions allocable thereto) with respect to | ||||||
20 | transactions with (i) a foreign person who would be a | ||||||
21 | member of the taxpayer's unitary business group but for | ||||||
22 | the fact that the foreign person's business activity | ||||||
23 | outside the United States is 80% or more of that | ||||||
24 | person's total business activity and (ii) for taxable | ||||||
25 | years ending on or after December 31, 2008, to a person | ||||||
26 | who would be a member of the same unitary business |
| |||||||
| |||||||
1 | group but for the fact that the person is prohibited | ||||||
2 | under Section 1501(a)(27) from being included in the | ||||||
3 | unitary business group because he or she is ordinarily | ||||||
4 | required to apportion business income under different | ||||||
5 | subsections of Section 304, but not to exceed the | ||||||
6 | addition modification required to be made for the same | ||||||
7 | taxable year under Section 203(b)(2)(E-12) for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, to the same person. This subparagraph (W) | ||||||
10 | is exempt from the provisions of Section 250; and
| ||||||
11 | (X) An amount equal to the income from intangible | ||||||
12 | property taken into account for the taxable year (net | ||||||
13 | of the deductions allocable thereto) with respect to | ||||||
14 | transactions with (i) a foreign person who would be a | ||||||
15 | member of the taxpayer's unitary business group but for | ||||||
16 | the fact that the foreign person's business activity | ||||||
17 | outside the United States is 80% or more of that | ||||||
18 | person's total business activity and (ii) for taxable | ||||||
19 | years ending on or after December 31, 2008, to a person | ||||||
20 | who would be a member of the same unitary business | ||||||
21 | group but for the fact that the person is prohibited | ||||||
22 | under Section 1501(a)(27) from being included in the | ||||||
23 | unitary business group because he or she is ordinarily | ||||||
24 | required to apportion business income under different | ||||||
25 | subsections of Section 304, but not to exceed the | ||||||
26 | addition modification required to be made for the same |
| |||||||
| |||||||
1 | taxable year under Section 203(b)(2)(E-13) for | ||||||
2 | intangible expenses and costs paid, accrued, or | ||||||
3 | incurred, directly or indirectly, to the same foreign | ||||||
4 | person. This subparagraph (X) is exempt from the | ||||||
5 | provisions of Section 250 ; .
| ||||||
6 | (Y) For taxable years ending on or after December | ||||||
7 | 31, 2009, in the case of a taxpayer who was required to | ||||||
8 | add back any insurance premiums under Section | ||||||
9 | 203(b)(2)(E-14), an amount equal to the amount of any | ||||||
10 | reimbursement received from the insurance company for | ||||||
11 | any loss covered by a policy for which those premiums | ||||||
12 | were paid, to the extent of the federal income tax | ||||||
13 | deduction that would have been allowable for the loss | ||||||
14 | if not for the reimbursement. This subparagraph (Y) is | ||||||
15 | exempt from the provisions of Section 250; and | ||||||
16 | (Z) The difference between (i) the excess | ||||||
17 | inclusion of the taxpayer under Section 860E(c) of the | ||||||
18 | Internal Revenue Code or (ii) the nondeductible | ||||||
19 | controlled foreign corporation dividends under Section | ||||||
20 | 965(e)(3) of the Internal Revenue Code, whichever is | ||||||
21 | less, over the taxable income of the taxpayer, computed | ||||||
22 | without regard to Section 860E(a)(1) of the Internal | ||||||
23 | Revenue Code, without regard to Section 965(e)(2)(A) | ||||||
24 | of the Internal Revenue Code, and without regard to any | ||||||
25 | net operating loss deduction. This subparagraph (Z) is | ||||||
26 | exempt from the provisions of Section 250.
|
| |||||||
| |||||||
1 | (3) Special rule. For purposes of paragraph (2) (A), | ||||||
2 | "gross income"
in the case of a life insurance company, for | ||||||
3 | tax years ending on and after
December 31, 1994, and prior | ||||||
4 | to December 31, 2009,
shall mean the gross investment | ||||||
5 | income for the taxable year and, for tax years ending on or | ||||||
6 | after December 31, 2009, shall mean all amounts included in | ||||||
7 | life insurance gross income under Section 803(a)(3) of the | ||||||
8 | Internal Revenue Code .
| ||||||
9 | (c) Trusts and estates.
| ||||||
10 | (1) In general. In the case of a trust or estate, 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. Subject to the provisions of | ||||||
14 | paragraph (3), the
taxable income referred to in paragraph | ||||||
15 | (1) shall be modified by adding
thereto the sum of the | ||||||
16 | following amounts:
| ||||||
17 | (A) An amount equal to all amounts paid or accrued | ||||||
18 | to the taxpayer
as interest or dividends during the | ||||||
19 | taxable year to the extent excluded
from gross income | ||||||
20 | in the computation of taxable income;
| ||||||
21 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
22 | trust which, under
its governing instrument, is | ||||||
23 | required to distribute all of its income
currently, | ||||||
24 | $300; and (iii) any other trust, $100, but in each such | ||||||
25 | case,
only to the extent such amount was deducted in |
| |||||||
| |||||||
1 | the computation of
taxable income;
| ||||||
2 | (C) An amount equal to the amount of tax imposed by | ||||||
3 | this Act to the
extent deducted from gross income in | ||||||
4 | the computation of taxable income
for the taxable year;
| ||||||
5 | (D) The amount of any net operating loss deduction | ||||||
6 | taken in arriving at
taxable income, other than a net | ||||||
7 | operating loss carried forward from a
taxable year | ||||||
8 | ending prior to December 31, 1986;
| ||||||
9 | (E) For taxable years in which a net operating loss | ||||||
10 | carryback or
carryforward from a taxable year ending | ||||||
11 | prior to December 31, 1986 is an
element of taxable | ||||||
12 | income under paragraph (1) of subsection (e) or | ||||||
13 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
14 | the amount by which addition
modifications other than | ||||||
15 | those provided by this subparagraph (E) exceeded
| ||||||
16 | subtraction modifications in such taxable year, with | ||||||
17 | the following limitations
applied in the order that | ||||||
18 | they are listed:
| ||||||
19 | (i) the addition modification relating to the | ||||||
20 | net operating loss
carried back or forward to the | ||||||
21 | taxable year from any taxable year ending
prior to | ||||||
22 | December 31, 1986 shall be reduced by the amount of | ||||||
23 | addition
modification under this subparagraph (E) | ||||||
24 | which related to that net
operating loss and which | ||||||
25 | was taken into account in calculating the base
| ||||||
26 | income of an earlier taxable year, and
|
| |||||||
| |||||||
1 | (ii) the addition modification relating to the | ||||||
2 | net operating loss
carried back or forward to the | ||||||
3 | taxable year from any taxable year ending
prior to | ||||||
4 | December 31, 1986 shall not exceed the amount of | ||||||
5 | such carryback or
carryforward;
| ||||||
6 | For taxable years in which there is a net operating | ||||||
7 | loss carryback or
carryforward from more than one other | ||||||
8 | taxable year ending prior to December
31, 1986, the | ||||||
9 | addition modification provided in this subparagraph | ||||||
10 | (E) shall
be the sum of the amounts computed | ||||||
11 | independently under the preceding
provisions of this | ||||||
12 | subparagraph (E) for each such taxable year;
| ||||||
13 | (F) For taxable years ending on or after January 1, | ||||||
14 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
15 | Section 164 of the Internal Revenue
Code if the trust | ||||||
16 | or estate is claiming the same tax for purposes of the
| ||||||
17 | Illinois foreign tax credit under Section 601 of this | ||||||
18 | Act;
| ||||||
19 | (G) An amount equal to the amount of the capital | ||||||
20 | gain deduction
allowable under the Internal Revenue | ||||||
21 | Code, to the extent deducted from
gross income in the | ||||||
22 | computation of taxable income;
| ||||||
23 | (G-5) For taxable years ending after December 31, | ||||||
24 | 1997, an
amount equal to any eligible remediation costs | ||||||
25 | that the trust or estate
deducted in computing adjusted | ||||||
26 | gross income and for which the trust
or estate claims a |
| |||||||
| |||||||
1 | credit under subsection (l) of Section 201;
| ||||||
2 | (G-10) For taxable years 2001 and thereafter, an | ||||||
3 | amount equal to the
bonus depreciation deduction taken | ||||||
4 | on the taxpayer's federal income tax return for the | ||||||
5 | taxable
year under subsection (k) of Section 168 of the | ||||||
6 | Internal Revenue Code; and
| ||||||
7 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
8 | or otherwise disposes of property for which the | ||||||
9 | taxpayer was required in any taxable year to
make an | ||||||
10 | addition modification under subparagraph (G-10), then | ||||||
11 | an amount equal
to the aggregate amount of the | ||||||
12 | deductions taken in all taxable
years under | ||||||
13 | subparagraph (R) with respect to that property.
| ||||||
14 | If the taxpayer continues to own property through | ||||||
15 | the last day of the last tax year for which the | ||||||
16 | taxpayer may claim a depreciation deduction for | ||||||
17 | federal income tax purposes and for which the taxpayer | ||||||
18 | was allowed in any taxable year to make a subtraction | ||||||
19 | modification under subparagraph (R), then an amount | ||||||
20 | equal to that subtraction modification.
| ||||||
21 | The taxpayer is required to make the addition | ||||||
22 | modification under this
subparagraph
only once with | ||||||
23 | respect to any one piece of property;
| ||||||
24 | (G-12) An amount equal to the amount otherwise | ||||||
25 | allowed as a deduction in computing base income for | ||||||
26 | interest paid, accrued, or incurred, directly or |
| |||||||
| |||||||
1 | indirectly, (i) for taxable years ending on or after | ||||||
2 | December 31, 2004, to a foreign person who would be a | ||||||
3 | member of the same unitary business group but for the | ||||||
4 | fact that the foreign person's business activity | ||||||
5 | outside the United States is 80% or more of the foreign | ||||||
6 | person's total business activity and (ii) for taxable | ||||||
7 | years ending on or after December 31, 2008, to a person | ||||||
8 | who would be a member of the same unitary business | ||||||
9 | group but for the fact that the person is prohibited | ||||||
10 | under Section 1501(a)(27) from being included in the | ||||||
11 | unitary business group because he or she is ordinarily | ||||||
12 | required to apportion business income under different | ||||||
13 | subsections of Section 304. The addition modification | ||||||
14 | required by this subparagraph shall be reduced to the | ||||||
15 | extent that dividends were included in base income of | ||||||
16 | the unitary group for the same taxable year and | ||||||
17 | received by the taxpayer or by a member of the | ||||||
18 | taxpayer's unitary business group (including amounts | ||||||
19 | included in gross income pursuant to Sections 951 | ||||||
20 | through 964 of the Internal Revenue Code and amounts | ||||||
21 | included in gross income under Section 78 of the | ||||||
22 | Internal Revenue Code) with respect to the stock of the | ||||||
23 | same person to whom the interest was paid, accrued, or | ||||||
24 | incurred.
| ||||||
25 | This paragraph shall not apply to the following:
| ||||||
26 | (i) an item of interest paid, accrued, or |
| |||||||
| |||||||
1 | incurred, directly or indirectly, to a person who | ||||||
2 | is subject in a foreign country or state, other | ||||||
3 | than a state which requires mandatory unitary | ||||||
4 | reporting, to a tax on or measured by net income | ||||||
5 | with respect to such interest; or | ||||||
6 | (ii) an item of interest paid, accrued, or | ||||||
7 | incurred, directly or indirectly, to a person if | ||||||
8 | the taxpayer can establish, based on a | ||||||
9 | preponderance of the evidence, both of the | ||||||
10 | following: | ||||||
11 | (a) the person, during the same taxable | ||||||
12 | year, paid, accrued, or incurred, the interest | ||||||
13 | to a person that is not a related member, and | ||||||
14 | (b) the transaction giving rise to the | ||||||
15 | interest expense between the taxpayer and the | ||||||
16 | person did not have as a principal purpose the | ||||||
17 | avoidance of Illinois income tax, and is paid | ||||||
18 | pursuant to a contract or agreement that | ||||||
19 | reflects an arm's-length interest rate and | ||||||
20 | terms; or
| ||||||
21 | (iii) the taxpayer can establish, based on | ||||||
22 | clear and convincing evidence, that the interest | ||||||
23 | paid, accrued, or incurred relates to a contract or | ||||||
24 | agreement entered into at arm's-length rates and | ||||||
25 | terms and the principal purpose for the payment is | ||||||
26 | not federal or Illinois tax avoidance; or
|
| |||||||
| |||||||
1 | (iv) an item of interest paid, accrued, or | ||||||
2 | incurred, directly or indirectly, to a person if | ||||||
3 | the taxpayer establishes by clear and convincing | ||||||
4 | evidence that the adjustments are unreasonable; or | ||||||
5 | if the taxpayer and the Director agree in writing | ||||||
6 | to the application or use of an alternative method | ||||||
7 | of apportionment under Section 304(f).
| ||||||
8 | Nothing in this subsection shall preclude the | ||||||
9 | Director from making any other adjustment | ||||||
10 | otherwise allowed under Section 404 of this Act for | ||||||
11 | any tax year beginning after the effective date of | ||||||
12 | this amendment provided such adjustment is made | ||||||
13 | pursuant to regulation adopted by the Department | ||||||
14 | and such regulations provide methods and standards | ||||||
15 | by which the Department will utilize its authority | ||||||
16 | under Section 404 of this Act;
| ||||||
17 | (G-13) An amount equal to the amount of intangible | ||||||
18 | expenses and costs otherwise allowed as a deduction in | ||||||
19 | computing base income, and that were paid, accrued, or | ||||||
20 | incurred, directly or indirectly, (i) for taxable | ||||||
21 | years ending on or after December 31, 2004, to a | ||||||
22 | foreign person who would be a member of the same | ||||||
23 | unitary business group but for the fact that the | ||||||
24 | foreign person's business activity outside the United | ||||||
25 | States is 80% or more of that person's total business | ||||||
26 | activity and (ii) for taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2008, to a person who would be a member of | ||||||
2 | the same unitary business group but for the fact that | ||||||
3 | the person is prohibited under Section 1501(a)(27) | ||||||
4 | from being included in the unitary business group | ||||||
5 | because he or she is ordinarily required to apportion | ||||||
6 | business income under different subsections of Section | ||||||
7 | 304. The addition modification required by this | ||||||
8 | subparagraph shall be reduced to the extent that | ||||||
9 | dividends were included in base income of the unitary | ||||||
10 | group for the same taxable year and received by the | ||||||
11 | taxpayer or by a member of the taxpayer's unitary | ||||||
12 | business group (including amounts included in gross | ||||||
13 | income pursuant to Sections 951 through 964 of the | ||||||
14 | Internal Revenue Code and amounts included in gross | ||||||
15 | income under Section 78 of the Internal Revenue Code) | ||||||
16 | with respect to the stock of the same person to whom | ||||||
17 | the intangible expenses and costs were directly or | ||||||
18 | indirectly paid, incurred, or accrued. The preceding | ||||||
19 | sentence shall not apply to the extent that the same | ||||||
20 | dividends caused a reduction to the addition | ||||||
21 | modification required under Section 203(c)(2)(G-12) of | ||||||
22 | this Act. As used in this subparagraph, the term | ||||||
23 | "intangible expenses and costs" includes: (1) | ||||||
24 | expenses, losses, and costs for or related to the | ||||||
25 | direct or indirect acquisition, use, maintenance or | ||||||
26 | management, ownership, sale, exchange, or any other |
| |||||||
| |||||||
1 | disposition of intangible property; (2) losses | ||||||
2 | incurred, directly or indirectly, from factoring | ||||||
3 | transactions or discounting transactions; (3) royalty, | ||||||
4 | patent, technical, and copyright fees; (4) licensing | ||||||
5 | fees; and (5) other similar expenses and costs. For | ||||||
6 | purposes of this subparagraph, "intangible property" | ||||||
7 | includes patents, patent applications, trade names, | ||||||
8 | trademarks, service marks, copyrights, mask works, | ||||||
9 | trade secrets, and similar types of intangible assets. | ||||||
10 | This paragraph shall not apply to the following: | ||||||
11 | (i) any item of intangible expenses or costs | ||||||
12 | paid, accrued, or incurred, directly or | ||||||
13 | indirectly, from a transaction with a person who is | ||||||
14 | subject in a foreign country or state, other than a | ||||||
15 | state which requires mandatory unitary reporting, | ||||||
16 | to a tax on or measured by net income with respect | ||||||
17 | to such item; or | ||||||
18 | (ii) any item of intangible expense or cost | ||||||
19 | paid, accrued, or incurred, directly or | ||||||
20 | indirectly, if the taxpayer can establish, based | ||||||
21 | on a preponderance of the evidence, both of the | ||||||
22 | following: | ||||||
23 | (a) the person during the same taxable | ||||||
24 | year paid, accrued, or incurred, the | ||||||
25 | intangible expense or cost to a person that is | ||||||
26 | not a related member, and |
| |||||||
| |||||||
1 | (b) the transaction giving rise to the | ||||||
2 | intangible expense or cost between the | ||||||
3 | taxpayer and the person did not have as a | ||||||
4 | principal purpose the avoidance of Illinois | ||||||
5 | income tax, and is paid pursuant to a contract | ||||||
6 | or agreement that reflects arm's-length terms; | ||||||
7 | or | ||||||
8 | (iii) any item of intangible expense or cost | ||||||
9 | paid, accrued, or incurred, directly or | ||||||
10 | indirectly, from a transaction with a person if the | ||||||
11 | taxpayer establishes by clear and convincing | ||||||
12 | evidence, that the adjustments are unreasonable; | ||||||
13 | or if the taxpayer and the Director agree in | ||||||
14 | writing to the application or use of an alternative | ||||||
15 | method 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;
| ||||||
25 | (G-14) For taxable years ending on or after | ||||||
26 | December 31, 2008, an amount equal to the amount of |
| |||||||
| |||||||
1 | insurance premium expenses and costs otherwise allowed | ||||||
2 | as a deduction in computing base income, and that were | ||||||
3 | paid, accrued, or incurred, directly or indirectly, to | ||||||
4 | a person who would be a member of the same unitary | ||||||
5 | business group but for the fact that the person is | ||||||
6 | prohibited under Section 1501(a)(27) from being | ||||||
7 | included in the unitary business group because he or | ||||||
8 | she is ordinarily required to apportion business | ||||||
9 | income under different subsections of Section 304. The | ||||||
10 | addition modification required by this subparagraph | ||||||
11 | shall be reduced to the extent that dividends were | ||||||
12 | included in base income of the unitary group for the | ||||||
13 | same taxable year and received by the taxpayer or by a | ||||||
14 | member of the taxpayer's unitary business group | ||||||
15 | (including amounts included in gross income under | ||||||
16 | Sections 951 through 964 of the Internal Revenue Code | ||||||
17 | and amounts included in gross income under Section 78 | ||||||
18 | of the Internal Revenue Code) with respect to the stock | ||||||
19 | of the same person to whom the premiums and costs were | ||||||
20 | directly or indirectly paid, incurred, or accrued. The | ||||||
21 | preceding sentence does not apply to the extent that | ||||||
22 | the same dividends caused a reduction to the addition | ||||||
23 | modification required under Section 203(c)(2)(G-12) or | ||||||
24 | Section 203(c)(2)(G-13) of this Act.
| ||||||
25 | and by deducting from the total so obtained the sum of the | ||||||
26 | following
amounts:
|
| |||||||
| |||||||
1 | (H) An amount equal to all amounts included in such | ||||||
2 | total pursuant
to the provisions of Sections 402(a), | ||||||
3 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
4 | Internal Revenue Code or included in such total as
| ||||||
5 | distributions under the provisions of any retirement | ||||||
6 | or disability plan for
employees of any governmental | ||||||
7 | agency or unit, or retirement payments to
retired | ||||||
8 | partners, which payments are excluded in computing net | ||||||
9 | earnings
from self employment by Section 1402 of the | ||||||
10 | Internal Revenue Code and
regulations adopted pursuant | ||||||
11 | thereto;
| ||||||
12 | (I) The valuation limitation amount;
| ||||||
13 | (J) An amount equal to the amount of any tax | ||||||
14 | imposed by this Act
which was refunded to the taxpayer | ||||||
15 | and included in such total for the
taxable year;
| ||||||
16 | (K) An amount equal to all amounts included in | ||||||
17 | taxable income as
modified by subparagraphs (A), (B), | ||||||
18 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
19 | taxation by this State either by reason of its statutes | ||||||
20 | or
Constitution
or by reason of the Constitution, | ||||||
21 | treaties or statutes of the United States;
provided | ||||||
22 | that, in the case of any statute of this State that | ||||||
23 | exempts income
derived from bonds or other obligations | ||||||
24 | from the tax imposed under this Act,
the amount | ||||||
25 | exempted shall be the interest net of bond premium | ||||||
26 | amortization;
|
| |||||||
| |||||||
1 | (L) With the exception of any amounts subtracted | ||||||
2 | under subparagraph
(K),
an amount equal to the sum of all | ||||||
3 | amounts disallowed as
deductions by (i) Sections 171(a) (2) | ||||||
4 | and 265(a)(2) of the Internal Revenue
Code , as now or | ||||||
5 | hereafter amended , and all amounts of expenses allocable
to | ||||||
6 | interest and disallowed as deductions by Section 265(1) of | ||||||
7 | the Internal
Revenue Code of 1954 , as now or hereafter | ||||||
8 | amended ;
and (ii) for taxable years
ending on or after | ||||||
9 | August 13, 1999, Sections
171(a)(2), 265,
280C, and | ||||||
10 | 832(b)(5)(B)(i) of the Internal Revenue Code , plus, (iii) | ||||||
11 | for taxable years ending on or after December 31, 2009, | ||||||
12 | Section 45G(e)(3) of the Internal Revenue Code ; the | ||||||
13 | provisions of this
subparagraph are exempt from the | ||||||
14 | provisions of Section 250;
| ||||||
15 | (M) An amount equal to those dividends included in | ||||||
16 | such total
which were paid by a corporation which | ||||||
17 | conducts business operations in an
Enterprise Zone or | ||||||
18 | zones created under the Illinois Enterprise Zone Act or | ||||||
19 | a River Edge Redevelopment Zone or zones created under | ||||||
20 | the River Edge Redevelopment Zone Act and
conducts | ||||||
21 | substantially all of its operations in an Enterprise | ||||||
22 | Zone or Zones or a River Edge Redevelopment Zone or | ||||||
23 | zones. This subparagraph (M) is exempt from the | ||||||
24 | provisions of Section 250;
| ||||||
25 | (N) An amount equal to any contribution made to a | ||||||
26 | job training
project established pursuant to the Tax |
| |||||||
| |||||||
1 | Increment Allocation
Redevelopment Act;
| ||||||
2 | (O) 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 (M) of paragraph (2) of this
subsection | ||||||
9 | shall not be eligible for the deduction provided under | ||||||
10 | this
subparagraph (O);
| ||||||
11 | (P) An amount equal to the amount of the deduction | ||||||
12 | used to compute the
federal income tax credit for | ||||||
13 | restoration of substantial amounts held under
claim of | ||||||
14 | right for the taxable year pursuant to Section 1341 of | ||||||
15 | the
Internal Revenue Code of 1986 ;
| ||||||
16 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
17 | equal to the
amount of any
(i) distributions, to the | ||||||
18 | extent includible in gross income for
federal income | ||||||
19 | tax purposes, made to the taxpayer because of
his or | ||||||
20 | her status as a victim of
persecution for racial or | ||||||
21 | religious reasons by Nazi Germany or any other Axis
| ||||||
22 | regime or as an heir of the victim and (ii) items
of | ||||||
23 | income, to the extent
includible in gross income for | ||||||
24 | federal income tax purposes, attributable to,
derived | ||||||
25 | from or in any way related to assets stolen from, | ||||||
26 | hidden from, or
otherwise lost to a victim of
|
| |||||||
| |||||||
1 | persecution for racial or religious reasons by Nazi
| ||||||
2 | Germany or any other Axis regime
immediately prior to, | ||||||
3 | during, and immediately after World War II, including,
| ||||||
4 | but
not limited to, interest on the proceeds receivable | ||||||
5 | as insurance
under policies issued to a victim of | ||||||
6 | persecution for racial or religious
reasons by Nazi | ||||||
7 | Germany or any other Axis regime by European insurance
| ||||||
8 | companies
immediately prior to and during World War II;
| ||||||
9 | provided, however, this subtraction from federal | ||||||
10 | adjusted gross income does not
apply to assets acquired | ||||||
11 | with such assets or with the proceeds from the sale of
| ||||||
12 | such assets; provided, further, this paragraph shall | ||||||
13 | only apply to a taxpayer
who was the first recipient of | ||||||
14 | such assets after their recovery and who is a
victim of
| ||||||
15 | persecution for racial or religious reasons
by Nazi | ||||||
16 | Germany or any other Axis regime or as an heir of the | ||||||
17 | victim. The
amount of and the eligibility for any | ||||||
18 | public assistance, benefit, or
similar entitlement is | ||||||
19 | not affected by the inclusion of items (i) and (ii) of
| ||||||
20 | this paragraph in gross income for federal income tax | ||||||
21 | purposes.
This paragraph is exempt from the provisions | ||||||
22 | of Section 250;
| ||||||
23 | (R) For taxable years 2001 and thereafter, for the | ||||||
24 | taxable year in
which the bonus depreciation deduction
| ||||||
25 | is taken on the taxpayer's federal income tax return | ||||||
26 | under
subsection (k) of Section 168 of the Internal |
| |||||||
| |||||||
1 | Revenue Code and for each
applicable taxable year | ||||||
2 | thereafter, an amount equal to "x", where:
| ||||||
3 | (1) "y" equals the amount of the depreciation | ||||||
4 | deduction taken for the
taxable year
on the | ||||||
5 | taxpayer's federal income tax return on property | ||||||
6 | for which the bonus
depreciation deduction
was | ||||||
7 | taken in any year under subsection (k) of Section | ||||||
8 | 168 of the Internal
Revenue Code, but not including | ||||||
9 | the bonus depreciation deduction;
| ||||||
10 | (2) for taxable years ending on or before | ||||||
11 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
12 | and then divided by 70 (or "y"
multiplied by | ||||||
13 | 0.429); and | ||||||
14 | (3) for taxable years ending after December | ||||||
15 | 31, 2005: | ||||||
16 | (i) for property on which a bonus | ||||||
17 | depreciation deduction of 30% of the adjusted | ||||||
18 | basis was taken, "x" equals "y" multiplied by | ||||||
19 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
20 | 0.429); and | ||||||
21 | (ii) for property on which a bonus | ||||||
22 | depreciation deduction of 50% of the adjusted | ||||||
23 | basis was taken, "x" equals "y" multiplied by | ||||||
24 | 1.0.
| ||||||
25 | The aggregate amount deducted under this | ||||||
26 | subparagraph in all taxable
years for any one piece of |
| |||||||
| |||||||
1 | property may not exceed the amount of the bonus
| ||||||
2 | depreciation deduction
taken on that property on the | ||||||
3 | taxpayer's federal income tax return under
subsection | ||||||
4 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
5 | subparagraph (R) is exempt from the provisions of | ||||||
6 | Section 250;
| ||||||
7 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
8 | otherwise disposes of
property for which the taxpayer | ||||||
9 | was required in any taxable year to make an
addition | ||||||
10 | modification under subparagraph (G-10), then an amount | ||||||
11 | equal to that
addition modification.
| ||||||
12 | If the taxpayer continues to own property through | ||||||
13 | the last day of the last tax year for which the | ||||||
14 | taxpayer may claim a depreciation deduction for | ||||||
15 | federal income tax purposes and 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 | The taxpayer is allowed to take the deduction under | ||||||
20 | this subparagraph
only once with respect to any one | ||||||
21 | piece of property. | ||||||
22 | This subparagraph (S) is exempt from the | ||||||
23 | provisions of Section 250;
| ||||||
24 | (T) The amount of (i) any interest income (net of | ||||||
25 | the deductions allocable thereto) taken into account | ||||||
26 | for the taxable year with respect to a transaction with |
| |||||||
| |||||||
1 | a taxpayer that is required to make an addition | ||||||
2 | modification with respect to such transaction under | ||||||
3 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
4 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
5 | the amount of such addition modification and
(ii) any | ||||||
6 | income from intangible property (net of the deductions | ||||||
7 | allocable thereto) taken into account for the taxable | ||||||
8 | year with respect to a transaction with a taxpayer that | ||||||
9 | is required to make an addition modification with | ||||||
10 | respect to such transaction under Section | ||||||
11 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
12 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
13 | addition modification. This subparagraph (T) is exempt | ||||||
14 | from the provisions of Section 250;
| ||||||
15 | (U) An amount equal to the interest income taken | ||||||
16 | into account for the taxable year (net of the | ||||||
17 | deductions allocable thereto) with respect to | ||||||
18 | transactions with (i) a foreign person who would be a | ||||||
19 | member of the taxpayer's unitary business group but for | ||||||
20 | the fact the foreign person's business activity | ||||||
21 | outside the United States is 80% or more of that | ||||||
22 | person's total business activity and (ii) for taxable | ||||||
23 | years ending on or after December 31, 2008, to a person | ||||||
24 | who would be a member of the same unitary business | ||||||
25 | group but for the fact that the person is prohibited | ||||||
26 | under Section 1501(a)(27) from being included in the |
| |||||||
| |||||||
1 | unitary business group because he or she is ordinarily | ||||||
2 | required to apportion business income under different | ||||||
3 | subsections of Section 304, but not to exceed the | ||||||
4 | addition modification required to be made for the same | ||||||
5 | taxable year under Section 203(c)(2)(G-12) for | ||||||
6 | interest paid, accrued, or incurred, directly or | ||||||
7 | indirectly, to the same person. This subparagraph (U) | ||||||
8 | is exempt from the provisions of Section 250; and | ||||||
9 | (V) An amount equal to the income from intangible | ||||||
10 | property taken into account for the taxable year (net | ||||||
11 | of the 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(c)(2)(G-13) for | ||||||
26 | intangible expenses and costs paid, accrued, or |
| |||||||
| |||||||
1 | incurred, directly or indirectly, to the same foreign | ||||||
2 | person. This subparagraph (V) is exempt from the | ||||||
3 | provisions of Section 250 ; .
| ||||||
4 | (W) in the case of an estate, an amount equal to | ||||||
5 | all amounts included in such total pursuant to the | ||||||
6 | provisions of Section 111 of the Internal Revenue Code | ||||||
7 | as a recovery of items previously deducted by the | ||||||
8 | decedent from adjusted gross income in the computation | ||||||
9 | of taxable income. This subparagraph (W) is exempt from | ||||||
10 | Section 250; | ||||||
11 | (X) an amount equal to the refund included in such | ||||||
12 | total of any tax deducted for federal income tax | ||||||
13 | purposes, to the extent that deduction was added back | ||||||
14 | under subparagraph (F). This subparagraph (X) is | ||||||
15 | exempt from the provisions of Section 250; | ||||||
16 | (Y) For taxable years ending on or after December | ||||||
17 | 31, 2009, in the case of a taxpayer who was required to | ||||||
18 | add back any insurance premiums under Section | ||||||
19 | 203(c)(2)(G-14), an amount equal to the amount of any | ||||||
20 | reimbursement received from the insurance company for | ||||||
21 | any loss covered by a policy for which those premiums | ||||||
22 | were paid, to the extent of the federal income tax | ||||||
23 | deduction that would have been allowable for the loss | ||||||
24 | if not for the reimbursement. This subparagraph (Y) is | ||||||
25 | exempt from the provisions of Section 250; and | ||||||
26 | (Z) The difference between the excess inclusion of |
| |||||||
| |||||||
1 | the taxpayer under Section 860E(c) of the Internal | ||||||
2 | Revenue Code over the taxable income of the taxpayer, | ||||||
3 | computed without regard to Section 860E(a)(1) and | ||||||
4 | without regard to any net operating loss deduction. | ||||||
5 | This subparagraph (Z) is exempt from the provisions of | ||||||
6 | 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 all | ||||||
12 | amounts disallowed as deductions
by (i) Sections 171(a) | ||||||
13 | (2), and 265(2) of the Internal Revenue Code of 1954,
as | ||||||
14 | now or hereafter amended , and all amounts of expenses | ||||||
15 | allocable to
interest and disallowed as deductions by | ||||||
16 | Section 265(1) of the Internal
Revenue Code , as now or | ||||||
17 | hereafter amended ;
and (ii) for taxable years
ending on or | ||||||
18 | after August 13, 1999, Sections
171(a)(2), 265,
280C, and | ||||||
19 | 832(b)(5)(B)(i) of the Internal Revenue Code , plus, (iii) | ||||||
20 | for taxable years ending on or after December 31, 2009, | ||||||
21 | Section 45G(e)(3) of the Internal Revenue Code ; the | ||||||
22 | provisions of this
subparagraph are exempt from the | ||||||
23 | provisions of Section 250;
| ||||||
24 | (K) An amount equal to those dividends included in | ||||||
25 | such total which were
paid by a corporation which | ||||||
26 | conducts business operations in an Enterprise
Zone or |
| |||||||
| |||||||
1 | zones created under the Illinois Enterprise Zone Act, | ||||||
2 | enacted by
the 82nd General Assembly, or a River Edge | ||||||
3 | Redevelopment Zone or zones created under the River | ||||||
4 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
5 | all of its operations
in an Enterprise Zone or Zones or | ||||||
6 | from a River Edge Redevelopment Zone or zones. This | ||||||
7 | subparagraph (K) is exempt from the provisions of | ||||||
8 | Section 250;
| ||||||
9 | (L) An amount equal to any contribution made to a | ||||||
10 | job training project
established pursuant to the Real | ||||||
11 | Property Tax Increment Allocation
Redevelopment Act;
| ||||||
12 | (M) An amount equal to those dividends included in | ||||||
13 | such total
that were paid by a corporation that | ||||||
14 | conducts business operations in a
federally designated | ||||||
15 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
16 | High Impact Business located in Illinois; provided | ||||||
17 | that dividends eligible
for the deduction provided in | ||||||
18 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
19 | shall not be eligible for the deduction provided under | ||||||
20 | this
subparagraph (M);
| ||||||
21 | (N) An amount equal to the amount of the deduction | ||||||
22 | used to compute the
federal income tax credit for | ||||||
23 | restoration of substantial amounts held under
claim of | ||||||
24 | right for the taxable year pursuant to Section 1341 of | ||||||
25 | the
Internal Revenue Code of 1986 ;
| ||||||
26 | (O) For taxable years 2001 and thereafter, for the |
| |||||||
| |||||||
1 | taxable year in
which the bonus depreciation deduction
| ||||||
2 | is taken on the taxpayer's federal income tax return | ||||||
3 | under
subsection (k) of Section 168 of the Internal | ||||||
4 | Revenue Code and for each
applicable taxable year | ||||||
5 | thereafter, an amount equal to "x", where:
| ||||||
6 | (1) "y" equals the amount of the depreciation | ||||||
7 | deduction taken for the
taxable year
on the | ||||||
8 | taxpayer's federal income tax return on property | ||||||
9 | for which the bonus
depreciation deduction
was | ||||||
10 | taken in any year under subsection (k) of Section | ||||||
11 | 168 of the Internal
Revenue Code, but not including | ||||||
12 | the bonus depreciation deduction;
| ||||||
13 | (2) for taxable years ending on or before | ||||||
14 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
15 | and then divided by 70 (or "y"
multiplied by | ||||||
16 | 0.429); and | ||||||
17 | (3) for taxable years ending after December | ||||||
18 | 31, 2005: | ||||||
19 | (i) for property on which a bonus | ||||||
20 | depreciation deduction of 30% of the adjusted | ||||||
21 | basis was taken, "x" equals "y" multiplied by | ||||||
22 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
23 | 0.429); and | ||||||
24 | (ii) for property on which a bonus | ||||||
25 | depreciation deduction of 50% of the adjusted | ||||||
26 | basis was taken, "x" equals "y" multiplied by |
| |||||||
| |||||||
1 | 1.0.
| ||||||
2 | The aggregate amount deducted under this | ||||||
3 | subparagraph in all taxable
years for any one piece of | ||||||
4 | property may not exceed the amount of the bonus
| ||||||
5 | depreciation deduction
taken on that property on the | ||||||
6 | taxpayer's federal income tax return under
subsection | ||||||
7 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
8 | subparagraph (O) is exempt from the provisions of | ||||||
9 | Section 250;
| ||||||
10 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
11 | otherwise disposes of
property for which the taxpayer | ||||||
12 | was required in any taxable year to make an
addition | ||||||
13 | modification under subparagraph (D-5), then an amount | ||||||
14 | equal to that
addition modification.
| ||||||
15 | If the taxpayer continues to own property through | ||||||
16 | the last day of the last tax year for which the | ||||||
17 | taxpayer may claim a depreciation deduction for | ||||||
18 | federal income tax purposes and for which the taxpayer | ||||||
19 | was required in any taxable year to make an addition | ||||||
20 | modification under subparagraph (D-5), then an amount | ||||||
21 | equal to that addition modification.
| ||||||
22 | The taxpayer is allowed to take the deduction under | ||||||
23 | this subparagraph
only once with respect to any one | ||||||
24 | piece of property. | ||||||
25 | This subparagraph (P) is exempt from the | ||||||
26 | provisions of Section 250;
|
| |||||||
| |||||||
1 | (Q) The amount of (i) any interest income (net of | ||||||
2 | the deductions allocable thereto) taken into account | ||||||
3 | for the taxable year with respect to a transaction with | ||||||
4 | a taxpayer that is required to make an addition | ||||||
5 | modification with respect to such transaction under | ||||||
6 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
7 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
8 | the amount of such addition modification and
(ii) any | ||||||
9 | income from intangible property (net of the deductions | ||||||
10 | allocable thereto) taken into account for the taxable | ||||||
11 | year with respect to a transaction with a taxpayer that | ||||||
12 | is required to make an addition modification with | ||||||
13 | respect to such transaction under Section | ||||||
14 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
15 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
16 | addition modification. This subparagraph (Q) is exempt | ||||||
17 | from Section 250;
| ||||||
18 | (R) An amount equal to the interest income taken | ||||||
19 | into account for the taxable year (net of the | ||||||
20 | deductions allocable thereto) with respect to | ||||||
21 | transactions with (i) a foreign person who would be a | ||||||
22 | member of the taxpayer's unitary business group but for | ||||||
23 | the fact that the foreign person's business activity | ||||||
24 | outside the United States is 80% or more of that | ||||||
25 | person's total business activity and (ii) for taxable | ||||||
26 | years ending on or after December 31, 2008, to a person |
| |||||||
| |||||||
1 | who would be a member of the same unitary business | ||||||
2 | group but for the fact that the person is prohibited | ||||||
3 | under Section 1501(a)(27) from being included in the | ||||||
4 | unitary business group because he or she is ordinarily | ||||||
5 | required to apportion business income under different | ||||||
6 | subsections of Section 304, but not to exceed the | ||||||
7 | addition modification required to be made for the same | ||||||
8 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
9 | paid, accrued, or incurred, directly or indirectly, to | ||||||
10 | the same person. This subparagraph (R) is exempt from | ||||||
11 | Section 250; and | ||||||
12 | (S) An amount equal to the income from intangible | ||||||
13 | property taken into account for the taxable year (net | ||||||
14 | of the deductions allocable thereto) with respect to | ||||||
15 | transactions with (i) a foreign person who would be a | ||||||
16 | member of the taxpayer's unitary business group but for | ||||||
17 | the fact that the foreign person's business activity | ||||||
18 | outside the United States is 80% or more of that | ||||||
19 | person's total business activity and (ii) for taxable | ||||||
20 | years ending on or after December 31, 2008, to a person | ||||||
21 | who would be a member of the same unitary business | ||||||
22 | group but for the fact that the person is prohibited | ||||||
23 | under Section 1501(a)(27) from being included in the | ||||||
24 | unitary business group because he or she is ordinarily | ||||||
25 | required to apportion business income under different | ||||||
26 | subsections of Section 304, but not to exceed the |
| |||||||
| |||||||
1 | addition modification required to be made for the same | ||||||
2 | taxable year under Section 203(d)(2)(D-8) for | ||||||
3 | intangible expenses and costs paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to the same person. | ||||||
5 | This subparagraph (S) is exempt from Section 250 ; .
| ||||||
6 | (T) For taxable years ending on or after December | ||||||
7 | 31, 2009, in the case of a taxpayer who was required to | ||||||
8 | add back any insurance premiums under Section | ||||||
9 | 203(d)(2)(D-9), an amount equal to the amount of any | ||||||
10 | reimbursement received from the insurance company for | ||||||
11 | any loss covered by a policy for which those premiums | ||||||
12 | were paid, to the extent of the federal income tax | ||||||
13 | deduction that would have been allowable for the loss | ||||||
14 | if not for the reimbursement. This subparagraph (T) is | ||||||
15 | exempt from the provisions of Section 250; and | ||||||
16 | (U) The difference between the excess inclusion of | ||||||
17 | the taxpayer under Section 860E(c) of the Internal | ||||||
18 | Revenue Code over the taxable income of the taxpayer, | ||||||
19 | computed without regard to Section 860E(a)(1) and | ||||||
20 | without regard to any net operating loss deduction. | ||||||
21 | This subparagraph (U) is exempt from the provisions of | ||||||
22 | Section 250.
| ||||||
23 | (e) Gross income; adjusted gross income; taxable income.
| ||||||
24 | (1) In general. Subject to the provisions of paragraph | ||||||
25 | (2) and
subsection (b) (3), for purposes of this Section |
| |||||||
| |||||||
1 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
2 | gross income, or taxable income for
the taxable year shall | ||||||
3 | mean the amount of gross income, adjusted gross
income or | ||||||
4 | taxable income properly reportable for federal income tax
| ||||||
5 | purposes for the taxable year under the provisions of the | ||||||
6 | Internal
Revenue Code. Taxable income may be less than | ||||||
7 | zero. However, for taxable
years ending on or after | ||||||
8 | December 31, 1986, net operating loss
carryforwards from | ||||||
9 | taxable years ending prior to December 31, 1986, may not
| ||||||
10 | exceed the sum of federal taxable income for the taxable | ||||||
11 | year before net
operating loss deduction, plus the excess | ||||||
12 | of addition modifications over
subtraction modifications | ||||||
13 | for the taxable year. For taxable years ending
prior to | ||||||
14 | December 31, 1986, taxable income may never be an amount in | ||||||
15 | excess
of the net operating loss for the taxable year as | ||||||
16 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
17 | Internal Revenue Code, provided that when
taxable income of | ||||||
18 | a corporation (other than a Subchapter S corporation),
| ||||||
19 | trust, or estate is less than zero and addition | ||||||
20 | modifications, other than
those provided by subparagraph | ||||||
21 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
22 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
23 | trusts and estates, exceed subtraction modifications, an | ||||||
24 | addition
modification must be made under those | ||||||
25 | subparagraphs for any other taxable
year to which the | ||||||
26 | taxable income less than zero (net operating loss) is
|
| |||||||
| |||||||
1 | applied under Section 172 of the Internal Revenue Code or | ||||||
2 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
3 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
4 | Revenue Code.
| ||||||
5 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
6 | subsection,
the taxable income properly reportable for | ||||||
7 | federal income tax purposes
shall mean:
| ||||||
8 | (A) Certain life insurance companies. In the case | ||||||
9 | of a life
insurance company subject to the tax imposed | ||||||
10 | by Section 801 of the
Internal Revenue Code, life | ||||||
11 | insurance company taxable income, plus the
amount of | ||||||
12 | distribution from pre-1984 policyholder surplus | ||||||
13 | accounts as
calculated under Section 815a of the | ||||||
14 | Internal Revenue Code;
| ||||||
15 | (B) Certain other insurance companies. In the case | ||||||
16 | of mutual
insurance companies subject to the tax | ||||||
17 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
18 | insurance company taxable income;
| ||||||
19 | (C) Regulated investment companies. In the case of | ||||||
20 | a regulated
investment company subject to the tax | ||||||
21 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
22 | investment company taxable income;
| ||||||
23 | (D) Real estate investment trusts. In the case of a | ||||||
24 | real estate
investment trust subject to the tax imposed | ||||||
25 | by Section 857 of the
Internal Revenue Code, real | ||||||
26 | estate investment trust taxable income;
|
| |||||||
| |||||||
1 | (E) Consolidated corporations. In the case of a | ||||||
2 | corporation which
is a member of an affiliated group of | ||||||
3 | corporations filing a consolidated
income tax return | ||||||
4 | for the taxable year for federal income tax purposes,
| ||||||
5 | taxable income determined as if such corporation had | ||||||
6 | filed a separate
return for federal income tax purposes | ||||||
7 | for the taxable year and each
preceding taxable year | ||||||
8 | for which it was a member of an affiliated group.
For | ||||||
9 | purposes of this subparagraph, the taxpayer's separate | ||||||
10 | taxable
income shall be determined as if the election | ||||||
11 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
12 | Code had been in effect for all such years;
| ||||||
13 | (F) Cooperatives. In the case of a cooperative | ||||||
14 | corporation or
association, the taxable income of such | ||||||
15 | organization determined in
accordance with the | ||||||
16 | provisions of Section 1381 through 1388 of the
Internal | ||||||
17 | Revenue Code , but without regard to the prohibition | ||||||
18 | against offsetting losses from patronage activities | ||||||
19 | against income from nonpatronage activities ;
| ||||||
20 | (G) Subchapter S corporations. In the case of: (i) | ||||||
21 | a Subchapter S
corporation for which there is in effect | ||||||
22 | an election for the taxable year
under Section 1362 of | ||||||
23 | the Internal Revenue Code, the taxable income of such
| ||||||
24 | corporation determined in accordance with Section | ||||||
25 | 1363(b) of the Internal
Revenue Code, except that | ||||||
26 | taxable income shall take into
account those items |
| |||||||
| |||||||
1 | which are required by Section 1363(b)(1) of the
| ||||||
2 | Internal Revenue Code to be separately stated; and (ii) | ||||||
3 | a Subchapter
S corporation for which there is in effect | ||||||
4 | a federal election to opt out of
the provisions of the | ||||||
5 | Subchapter S Revision Act of 1982 and have applied
| ||||||
6 | instead the prior federal Subchapter S rules as in | ||||||
7 | effect on July 1, 1982,
the taxable income of such | ||||||
8 | corporation determined in accordance with the
federal | ||||||
9 | Subchapter S rules as in effect on July 1, 1982; and
| ||||||
10 | (H) Partnerships. In the case of a partnership, | ||||||
11 | taxable income
determined in accordance with Section | ||||||
12 | 703 of the Internal Revenue Code,
except that taxable | ||||||
13 | income shall take into account those items which are
| ||||||
14 | required by Section 703(a)(1) to be separately stated | ||||||
15 | but which would be
taken into account by an individual | ||||||
16 | in calculating his taxable income.
| ||||||
17 | (3) Recapture of business expenses on disposition of | ||||||
18 | asset or business. Notwithstanding any other law to the | ||||||
19 | contrary, if in prior years income from an asset or | ||||||
20 | business has been classified as business income and in a | ||||||
21 | later year is demonstrated to be non-business income, then | ||||||
22 | all expenses, without limitation, deducted in such later | ||||||
23 | year and in the 2 immediately preceding taxable years | ||||||
24 | related to that asset or business that generated the | ||||||
25 | non-business income shall be added back and recaptured as | ||||||
26 | business income in the year of the disposition of the asset |
| |||||||
| |||||||
1 | or business. Such amount shall be apportioned to Illinois | ||||||
2 | using the greater of the apportionment fraction computed | ||||||
3 | for the business under Section 304 of this Act for the | ||||||
4 | taxable year or the average of the apportionment fractions | ||||||
5 | computed for the business under Section 304 of this Act for | ||||||
6 | the taxable year and for the 2 immediately preceding | ||||||
7 | taxable years.
| ||||||
8 | (f) Valuation limitation amount.
| ||||||
9 | (1) In general. The valuation limitation amount | ||||||
10 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
11 | (d)(2) (E) is an amount equal to:
| ||||||
12 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
13 | amounts (to the
extent consisting of gain reportable | ||||||
14 | under the provisions of Section
1245 or 1250 of the | ||||||
15 | Internal Revenue Code) for all property in respect
of | ||||||
16 | which such gain was reported for the taxable year; plus
| ||||||
17 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
18 | 1969 appreciation
amounts (to the extent consisting of | ||||||
19 | capital gain) for all property in
respect of which such | ||||||
20 | gain was reported for federal income tax purposes
for | ||||||
21 | the taxable year, or (ii) the net capital gain for the | ||||||
22 | taxable year,
reduced in either case by any amount of | ||||||
23 | such gain included in the amount
determined under | ||||||
24 | subsection (a) (2) (F) or (c) (2) (H).
| ||||||
25 | (2) Pre-August 1, 1969 appreciation amount.
|
| |||||||
| |||||||
1 | (A) If the fair market value of property referred | ||||||
2 | to in paragraph
(1) was readily ascertainable on August | ||||||
3 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
4 | such property is the lesser of (i) the excess of
such | ||||||
5 | fair market value over the taxpayer's basis (for | ||||||
6 | determining gain)
for such property on that date | ||||||
7 | (determined under the Internal Revenue
Code as in | ||||||
8 | effect on that date), or (ii) the total gain realized | ||||||
9 | and
reportable for federal income tax purposes in | ||||||
10 | respect of the sale,
exchange or other disposition of | ||||||
11 | such property.
| ||||||
12 | (B) If the fair market value of property referred | ||||||
13 | to in paragraph
(1) was not readily ascertainable on | ||||||
14 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
15 | amount for such property is that amount which bears
the | ||||||
16 | same ratio to the total gain reported in respect of the | ||||||
17 | property for
federal income tax purposes for the | ||||||
18 | taxable year, as the number of full
calendar months in | ||||||
19 | that part of the taxpayer's holding period for the
| ||||||
20 | property ending July 31, 1969 bears to the number of | ||||||
21 | full calendar
months in the taxpayer's entire holding | ||||||
22 | period for the
property.
| ||||||
23 | (C) The Department shall prescribe such | ||||||
24 | regulations as may be
necessary to carry out the | ||||||
25 | purposes of this paragraph.
|
| |||||||
| |||||||
1 | (g) Double deductions. Unless specifically provided | ||||||
2 | otherwise, nothing
in this Section shall permit the same item | ||||||
3 | to be deducted more than once.
| ||||||
4 | (h) Legislative intention. Except as expressly provided by | ||||||
5 | this
Section there shall be no modifications or limitations on | ||||||
6 | the amounts
of income, gain, loss or deduction taken into | ||||||
7 | account in determining
gross income, adjusted gross income or | ||||||
8 | taxable income for federal income
tax purposes for the taxable | ||||||
9 | year, or in the amount of such items
entering into the | ||||||
10 | computation of base income and net income under this
Act for | ||||||
11 | such taxable year, whether in respect of property values as of
| ||||||
12 | August 1, 1969 or otherwise.
| ||||||
13 | (Source: P.A. 94-776, eff. 5-19-06; 94-789, eff. 5-19-06; | ||||||
14 | 94-1021, eff. 7-12-06; 94-1074, eff. 12-26-06; 95-23, eff. | ||||||
15 | 8-3-07; 95-233, eff. 8-16-07; 95-286, eff. 8-20-07; 95-331, | ||||||
16 | eff. 8-21-07; 95-707, eff. 1-11-08; 95-876, eff. 8-21-08; | ||||||
17 | revised 10-15-08.)
| ||||||
18 | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
| ||||||
19 | Sec. 204. Standard Exemption.
| ||||||
20 | (a) Allowance of exemption. In computing net income under | ||||||
21 | this Act, there
shall be allowed as an exemption the sum of the | ||||||
22 | amounts determined under
subsections (b), (c) and (d), | ||||||
23 | multiplied by a fraction the numerator of which
is the amount | ||||||
24 | of the taxpayer's base income allocable to this State for the
|
| |||||||
| |||||||
1 | taxable year and the denominator of which is the taxpayer's | ||||||
2 | total base income
for the taxable year.
| ||||||
3 | (b) Basic amount. For the purpose of subsection (a) of this | ||||||
4 | Section,
except as provided by subsection (a) of Section 205 | ||||||
5 | and in this
subsection, each taxpayer shall be allowed a basic | ||||||
6 | amount of $1000, except
that for corporations the basic amount | ||||||
7 | shall be zero for tax years ending on
or
after December 31, | ||||||
8 | 2003, and for individuals the basic amount shall be:
| ||||||
9 | (1) for taxable years ending on or after December 31, | ||||||
10 | 1998 and prior to
December 31, 1999, $1,300;
| ||||||
11 | (2) for taxable years ending on or after December 31, | ||||||
12 | 1999 and prior to
December 31, 2000, $1,650;
| ||||||
13 | (3) for taxable years ending on or after December 31, | ||||||
14 | 2000, $2,000.
| ||||||
15 | For taxable years ending on or after December 31, 1992, a | ||||||
16 | taxpayer whose
Illinois base income exceeds the basic amount | ||||||
17 | and who is claimed as a dependent
on another person's tax | ||||||
18 | return under the Internal Revenue Code of 1986 shall
not be | ||||||
19 | allowed any basic amount under this subsection.
| ||||||
20 | (c) Additional amount for individuals. In the case of an | ||||||
21 | individual
taxpayer, there shall be allowed for the purpose of | ||||||
22 | subsection (a), in
addition to the basic amount provided by | ||||||
23 | subsection (b), an additional
exemption equal to the basic | ||||||
24 | amount for each
exemption in excess of one
allowable to such | ||||||
25 | individual taxpayer for the taxable year under Section
151 of | ||||||
26 | the Internal Revenue Code.
|
| |||||||
| |||||||
1 | (d) Additional exemptions for an individual taxpayer and | ||||||
2 | his or her
spouse. In the case of an individual taxpayer and | ||||||
3 | his or her spouse, he or
she shall each be allowed additional | ||||||
4 | exemptions as follows:
| ||||||
5 | (1) Additional exemption for taxpayer or spouse 65 | ||||||
6 | years of age or older.
| ||||||
7 | (A) For taxpayer. An additional exemption of | ||||||
8 | $1,000 for the taxpayer if
he or she has attained the | ||||||
9 | age of 65 before the end of the taxable year.
| ||||||
10 | (B) For spouse when a joint return is not filed. An | ||||||
11 | additional
exemption of $1,000 for the spouse of the | ||||||
12 | taxpayer if a joint return is not
made by the taxpayer | ||||||
13 | and his spouse, and if the spouse has attained the age
| ||||||
14 | of 65 before the end of such taxable year, and, for the | ||||||
15 | calendar year in
which the taxable year of the taxpayer | ||||||
16 | begins, has no gross income and is
not the dependent of | ||||||
17 | another taxpayer.
| ||||||
18 | (2) Additional exemption for blindness of taxpayer or | ||||||
19 | spouse.
| ||||||
20 | (A) For taxpayer. An additional exemption of | ||||||
21 | $1,000 for the taxpayer if
he or she is blind at the | ||||||
22 | end of the taxable year.
| ||||||
23 | (B) For spouse when a joint return is not filed. An | ||||||
24 | additional
exemption of $1,000 for the spouse of the | ||||||
25 | taxpayer if a separate return is made
by the taxpayer, | ||||||
26 | and if the spouse is blind and, for the calendar year |
| |||||||
| |||||||
1 | in which
the taxable year of the taxpayer begins, has | ||||||
2 | no gross income and is not the
dependent of another | ||||||
3 | taxpayer. For purposes of this paragraph, the
| ||||||
4 | determination of whether the spouse is blind shall be | ||||||
5 | made as of the end of the
taxable year of the taxpayer; | ||||||
6 | except that if the spouse dies during such
taxable year | ||||||
7 | such determination shall be made as of the time of such | ||||||
8 | death.
| ||||||
9 | (C) Blindness defined. For purposes of this | ||||||
10 | subsection, an individual
is blind only if his or her | ||||||
11 | central visual acuity does not exceed 20/200 in
the | ||||||
12 | better eye with correcting lenses, or if his or her | ||||||
13 | visual acuity is
greater than 20/200 but is accompanied | ||||||
14 | by a limitation in the fields of
vision such that the | ||||||
15 | widest diameter of the visual fields subtends an angle
| ||||||
16 | no greater than 20 degrees.
| ||||||
17 | (e) Cross reference. See Article 3 for the manner of | ||||||
18 | determining
base income allocable to this State.
| ||||||
19 | (f) Application of Section 250. Section 250 does not apply | ||||||
20 | to the
amendments to this Section made by Public Act 90-613.
| ||||||
21 | (Source: P.A. 93-29, eff. 6-20-03.)
| ||||||
22 | (35 ILCS 5/205) (from Ch. 120, par. 2-205)
| ||||||
23 | Sec. 205. Exempt organizations.
| ||||||
24 | (a) Charitable, etc. organizations. The base income of an
| ||||||
25 | organization which is exempt from the federal income tax by |
| |||||||
| |||||||
1 | reason of
Section 501(a) of the Internal Revenue Code shall not | ||||||
2 | be determined
under section 203 of this Act, but shall be its | ||||||
3 | unrelated business
taxable income as determined under section | ||||||
4 | 512 of the Internal Revenue
Code, without any deduction for the | ||||||
5 | tax imposed by this Act. The
standard exemption provided by | ||||||
6 | section 204 of this Act shall not be
allowed in determining the | ||||||
7 | net income of an organization to which this
subsection applies.
| ||||||
8 | (b) Partnerships. A partnership as such shall not be | ||||||
9 | subject to
the tax imposed by subsection 201 (a) and (b) of | ||||||
10 | this Act, but shall be
subject to the replacement tax imposed | ||||||
11 | by subsection 201 (c) and (d) of
this Act and shall compute its | ||||||
12 | base income as described in subsection (d)
of Section 203 of | ||||||
13 | this Act. For taxable years ending on or after December 31, | ||||||
14 | 2004, an investment partnership, as defined in Section | ||||||
15 | 1501(a)(11.5) of this Act, shall not be subject to the tax | ||||||
16 | imposed by subsections (c) and (d) of Section 201 of this Act.
| ||||||
17 | A partnership shall file such returns and other
information at | ||||||
18 | such
time and in such manner as may be required under Article 5 | ||||||
19 | of this Act.
The partners in a partnership shall be liable for | ||||||
20 | the replacement tax imposed
by subsection 201 (c) and (d) of | ||||||
21 | this Act on such partnership, to the extent
such tax is not | ||||||
22 | paid by the partnership, as provided under the laws of Illinois
| ||||||
23 | governing the liability of partners for the obligations of a | ||||||
24 | partnership.
Persons carrying on business as partners shall be | ||||||
25 | liable for the tax
imposed by subsection 201 (a) and (b) of | ||||||
26 | this Act only in their separate
or individual capacities.
|
| |||||||
| |||||||
1 | (c) Subchapter S corporations. A Subchapter S corporation | ||||||
2 | shall not
be subject to the tax imposed by subsection 201 (a) | ||||||
3 | and
(b) of this Act but shall be subject to the replacement tax | ||||||
4 | imposed by subsection
201 (c) and (d) of this Act and shall | ||||||
5 | file such returns
and other information
at such time and in | ||||||
6 | such manner as may be required under Article 5 of this Act.
| ||||||
7 | (d) Combat zone , terrorist attack, and certain other deaths | ||||||
8 | death . An individual relieved from the federal
income tax for | ||||||
9 | any taxable year by reason of section 692 of the Internal
| ||||||
10 | Revenue Code shall not be subject to the tax imposed by this | ||||||
11 | Act for
such taxable year.
| ||||||
12 | (e) Certain trusts. A common trust fund described in | ||||||
13 | Section 584
of the Internal Revenue Code, and any other trust | ||||||
14 | to the extent that the
grantor is treated as the owner thereof | ||||||
15 | under sections 671 through 678
of the Internal Revenue Code | ||||||
16 | shall not be subject to the tax imposed by
this Act.
| ||||||
17 | (f) Certain business activities. A person not otherwise | ||||||
18 | subject to the tax
imposed by this Act shall not become subject | ||||||
19 | to the tax imposed by this Act by
reason of:
| ||||||
20 | (1) that person's ownership of tangible personal | ||||||
21 | property located at the
premises of
a printer in this State | ||||||
22 | with which the person has contracted for printing, or
| ||||||
23 | (2) activities of the person's employees or agents | ||||||
24 | located solely at the
premises of a printer and related to | ||||||
25 | quality control, distribution, or printing
services | ||||||
26 | performed by a printer in the State with which the person |
| |||||||
| |||||||
1 | has
contracted for printing.
| ||||||
2 | (g) A nonprofit risk organization that holds a certificate | ||||||
3 | of authority under Article VIID of the Illinois Insurance Code | ||||||
4 | is exempt from the tax imposed under this Act with respect to | ||||||
5 | its activities or operations in furtherance of the powers | ||||||
6 | conferred upon it under that Article VIID of the Illinois | ||||||
7 | Insurance Code.
| ||||||
8 | (Source: P.A. 95-233, eff. 8-16-07; 95-331, eff. 8-21-07.)
| ||||||
9 | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
| ||||||
10 | Sec. 207. Net Losses.
| ||||||
11 | (a) If after applying all of the (i) modifications
provided | ||||||
12 | for in paragraph (2) of Section 203(b), paragraph (2) of | ||||||
13 | Section
203(c) and paragraph (2) of Section 203(d) and (ii) the | ||||||
14 | allocation and
apportionment provisions of Article 3 of this
| ||||||
15 | Act and subsection (c) of this Section, the taxpayer's net | ||||||
16 | income results in a loss;
| ||||||
17 | (1) for any taxable year ending prior to December 31, | ||||||
18 | 1999, such loss
shall be allowed
as a carryover or | ||||||
19 | carryback deduction in the manner allowed under Section
172 | ||||||
20 | of the Internal Revenue Code;
| ||||||
21 | (2) for any taxable year ending on or after December | ||||||
22 | 31, 1999 and prior
to December 31, 2003, such loss
shall be | ||||||
23 | allowed as a carryback to each of the 2 taxable years | ||||||
24 | preceding the
taxable year of such loss and shall be a net | ||||||
25 | operating loss carryover to each of the
20 taxable years |
| |||||||
| |||||||
1 | following the taxable year of such loss; and
| ||||||
2 | (3) for any taxable year ending on or after December | ||||||
3 | 31, 2003, such loss
shall be allowed as a net operating | ||||||
4 | loss carryover to each of the 12 taxable years
following | ||||||
5 | the taxable year of such loss.
| ||||||
6 | (a-5) Election to relinquish carryback and order of | ||||||
7 | application of
losses.
| ||||||
8 | (A) For losses incurred in tax years ending prior | ||||||
9 | to December 31,
2003, the taxpayer may elect to | ||||||
10 | relinquish the entire carryback period
with respect to | ||||||
11 | such loss. Such election shall be made in the form and | ||||||
12 | manner
prescribed by the Department and shall be made | ||||||
13 | by the due date (including
extensions of time) for | ||||||
14 | filing the taxpayer's return for the taxable year in
| ||||||
15 | which such loss is incurred, and such election, once | ||||||
16 | made, shall be
irrevocable.
| ||||||
17 | (B) The entire amount of such loss shall be carried | ||||||
18 | to the earliest
taxable year to which such loss may be | ||||||
19 | carried. The amount of such loss which
shall be carried | ||||||
20 | to each of the other taxable years shall be the excess, | ||||||
21 | if
any, of the amount of such loss over the sum of the | ||||||
22 | deductions for carryback or
carryover of such loss | ||||||
23 | allowable for each of the prior taxable years to which
| ||||||
24 | such loss may be carried.
| ||||||
25 | (b) Any loss determined under subsection (a) of this | ||||||
26 | Section must be carried
back or carried forward in the same |
| |||||||
| |||||||
1 | manner for purposes of subsections (a)
and (b) of Section 201 | ||||||
2 | of this Act as for purposes of subsections (c) and
(d) of | ||||||
3 | Section 201 of this Act.
| ||||||
4 | (c) Notwithstanding any other provision of this Act : , | ||||||
5 | (1) for each taxable year ending on or after December | ||||||
6 | 31, 2008, for purposes of computing the loss for the | ||||||
7 | taxable year under subsection (a) of this Section and the | ||||||
8 | deduction taken into account for the taxable year for a net | ||||||
9 | operating loss carryover under paragraphs (1), (2), and (3) | ||||||
10 | of subsection (a) of this Section, the loss and net | ||||||
11 | operating loss carryover shall be reduced in an amount | ||||||
12 | equal to the reduction to the net operating loss and net | ||||||
13 | operating loss carryover to the taxable year, | ||||||
14 | respectively, required under Section 108(b)(2)(A) of the | ||||||
15 | Internal Revenue Code, multiplied by a fraction, the | ||||||
16 | numerator of which is the amount of discharge of | ||||||
17 | indebtedness income that is excluded from gross income for | ||||||
18 | the taxable year (but only if the taxable year ends on or | ||||||
19 | after December 31, 2008) under Section 108(a) of the | ||||||
20 | Internal Revenue Code and that would have been allocated | ||||||
21 | and apportioned to this State under Article 3 of this Act | ||||||
22 | but for that exclusion, and the denominator of which is the | ||||||
23 | total amount of discharge of indebtedness income excluded | ||||||
24 | from gross income under Section 108(a) of the Internal | ||||||
25 | Revenue Code for the taxable year. The reduction required | ||||||
26 | under this subsection (c) shall be made after the |
| |||||||
| |||||||
1 | determination of Illinois net income for the taxable year | ||||||
2 | in which the indebtedness is discharged ; and .
| ||||||
3 | (2) for each taxable year ending on or after December | ||||||
4 | 31, 2009, for purposes of computing the loss for the | ||||||
5 | taxable year under subsection (a) of this Section, the | ||||||
6 | taxpayer shall add back to its base income any amount of | ||||||
7 | income subtracted under Section 203(b)(2), (c)(2) or | ||||||
8 | (d)(2) of this Act. | ||||||
9 | (Source: P.A. 95-233, eff. 8-16-07.)
| ||||||
10 | (35 ILCS 5/214)
| ||||||
11 | Sec. 214. Tax credit for affordable housing donations.
| ||||||
12 | (a) Beginning with taxable years ending on or after | ||||||
13 | December 31, 2001 and
until the taxable year ending on December | ||||||
14 | 31, 2011, a taxpayer who makes a
donation under Section 7.28 of | ||||||
15 | the Illinois Housing Development Act is entitled to a credit
| ||||||
16 | against the tax imposed by subsections (a) and (b) of Section | ||||||
17 | 201 in an amount
equal
to 50% of the value of the donation. | ||||||
18 | Partners, shareholders of subchapter S
corporations, and | ||||||
19 | owners of limited liability companies (if the limited
liability | ||||||
20 | company is treated as a partnership for purposes of federal and | ||||||
21 | State
income
taxation) are entitled to a credit under this | ||||||
22 | Section to be determined in
accordance with the determination | ||||||
23 | of income and distributive share of income
under Sections 702 | ||||||
24 | and 703 and subchapter S of the Internal Revenue Code.
Persons | ||||||
25 | or entities not subject to the tax imposed by subsections (a) |
| |||||||
| |||||||
1 | and (b)
of Section 201 and who make a donation under Section | ||||||
2 | 7.28 of the Illinois
Housing Development Act are entitled to a | ||||||
3 | credit as described in this
subsection and may transfer that | ||||||
4 | credit as described in subsection (c).
| ||||||
5 | (b) If the amount of the credit exceeds the tax liability | ||||||
6 | for the year, the
excess may be carried forward and applied to | ||||||
7 | the tax liability of the 5 taxable
years following the excess | ||||||
8 | credit year. The tax credit shall be applied to the
earliest | ||||||
9 | year for which there is a tax liability. If there are credits | ||||||
10 | for
more than one year that are available to offset a | ||||||
11 | liability, the earlier credit
shall be applied first.
| ||||||
12 | (c) The transfer of the tax credit allowed under this | ||||||
13 | Section may be made
(i) to the purchaser of land that has been | ||||||
14 | designated solely for affordable
housing projects in | ||||||
15 | accordance with the Illinois Housing Development Act or
(ii) to | ||||||
16 | another donor who has also made a donation in accordance with | ||||||
17 | Section 7.28 of the
Illinois Housing
Development Act.
| ||||||
18 | (d) A taxpayer claiming the credit provided by this Section | ||||||
19 | must maintain
and record any information that the Department | ||||||
20 | may require by regulation
regarding the project for which the | ||||||
21 | credit is claimed.
When
claiming the credit provided by this | ||||||
22 | Section, the taxpayer must provide
information regarding the | ||||||
23 | taxpayer's donation to the project under the Illinois Housing | ||||||
24 | Development Act.
| ||||||
25 | (Source: P.A. 93-369, eff. 7-24-03; 94-46, eff. 6-17-05.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
| ||||||
2 | Sec. 304. Business income of persons other than residents.
| ||||||
3 | (a) In general. The business income of a person other than | ||||||
4 | a
resident shall be allocated to this State if such person's | ||||||
5 | business
income is derived solely from this State. If a person | ||||||
6 | other than a
resident derives business income from this State | ||||||
7 | and one or more other
states, then, for tax years ending on or | ||||||
8 | before December 30, 1998, and
except as otherwise provided by | ||||||
9 | this Section, such
person's business income shall be | ||||||
10 | apportioned to this State by
multiplying the income by a | ||||||
11 | fraction, the numerator of which is the sum
of the property | ||||||
12 | factor (if any), the payroll factor (if any) and 200% of the
| ||||||
13 | sales factor (if any), and the denominator of which is 4 | ||||||
14 | reduced by the
number of factors other than the sales factor | ||||||
15 | which have a denominator
of zero and by an additional 2 if the | ||||||
16 | sales factor has a denominator of zero.
For tax years ending on | ||||||
17 | or after December 31, 1998, and except as otherwise
provided by | ||||||
18 | this Section, persons other than
residents who derive business | ||||||
19 | income from this State and one or more other
states shall | ||||||
20 | compute their apportionment factor by weighting their | ||||||
21 | property,
payroll, and sales factors as provided in
subsection | ||||||
22 | (h) of this Section.
| ||||||
23 | (1) Property factor.
| ||||||
24 | (A) The property factor is a fraction, the numerator of | ||||||
25 | which is the
average value of the person's real and | ||||||
26 | tangible personal property owned
or rented and used in the |
| |||||||
| |||||||
1 | trade or business in this State during the
taxable year and | ||||||
2 | the denominator of which is the average value of all
the | ||||||
3 | person's real and tangible personal property owned or | ||||||
4 | rented and
used in the trade or business during the taxable | ||||||
5 | year.
| ||||||
6 | (B) Property owned by the person is valued at its | ||||||
7 | original cost.
Property rented by the person is valued at 8 | ||||||
8 | times the net annual rental
rate. Net annual rental rate is | ||||||
9 | the annual rental rate paid by the
person less any annual | ||||||
10 | rental rate received by the person from
sub-rentals.
| ||||||
11 | (C) The average value of property shall be determined | ||||||
12 | by averaging
the values at the beginning and ending of the | ||||||
13 | taxable year but the
Director may require the averaging of | ||||||
14 | monthly values during the taxable
year if reasonably | ||||||
15 | required to reflect properly the average value of the
| ||||||
16 | person's property.
| ||||||
17 | (2) Payroll factor.
| ||||||
18 | (A) The payroll factor is a fraction, the numerator of | ||||||
19 | which is the
total amount paid in this State during the | ||||||
20 | taxable year by the person
for compensation, and the | ||||||
21 | denominator of which is the total compensation
paid | ||||||
22 | everywhere during the taxable year.
| ||||||
23 | (B) Compensation is paid in this State if:
| ||||||
24 | (i) The individual's service is performed entirely | ||||||
25 | within this
State;
| ||||||
26 | (ii) The individual's service is performed both |
| |||||||
| |||||||
1 | within and without
this State, but the service | ||||||
2 | performed without this State is incidental
to the | ||||||
3 | individual's service performed within this State; or
| ||||||
4 | (iii) Some of the service is performed within this | ||||||
5 | State and either
the base of operations, or if there is | ||||||
6 | no base of operations, the place
from which the service | ||||||
7 | is directed or controlled is within this State,
or the | ||||||
8 | base of operations or the place from which the service | ||||||
9 | is
directed or controlled is not in any state in which | ||||||
10 | some part of the
service is performed, but the | ||||||
11 | individual's residence is in this State.
| ||||||
12 | (iv) Compensation paid to nonresident professional | ||||||
13 | athletes. | ||||||
14 | (a) General. The Illinois source income of a | ||||||
15 | nonresident individual who is a member of a | ||||||
16 | professional athletic team includes the portion of the | ||||||
17 | individual's total compensation for services performed | ||||||
18 | as a member of a professional athletic team during the | ||||||
19 | taxable year which the number of duty days spent within | ||||||
20 | this State performing services for the team in any | ||||||
21 | manner during the taxable year bears to the total | ||||||
22 | number of duty days spent both within and without this | ||||||
23 | State during the taxable year. | ||||||
24 | (b) Travel days. Travel days that do not involve | ||||||
25 | either a game, practice, team meeting, or other similar | ||||||
26 | team event are not considered duty days spent in this |
| |||||||
| |||||||
1 | State. However, such travel days are considered in the | ||||||
2 | total duty days spent both within and without this | ||||||
3 | State. | ||||||
4 | (c) Definitions. For purposes of this subpart | ||||||
5 | (iv): | ||||||
6 | (1) The term "professional athletic team" | ||||||
7 | includes, but is not limited to, any professional | ||||||
8 | baseball, basketball, football, soccer, or hockey | ||||||
9 | team. | ||||||
10 | (2) The term "member of a professional | ||||||
11 | athletic team" includes those employees who are | ||||||
12 | active players, players on the disabled list, and | ||||||
13 | any other persons required to travel and who travel | ||||||
14 | with and perform services on behalf of a | ||||||
15 | professional athletic team on a regular basis. | ||||||
16 | This includes, but is not limited to, coaches, | ||||||
17 | managers, and trainers. | ||||||
18 | (3) Except as provided in items (C) and (D) of | ||||||
19 | this subpart (3), the term "duty days" means all | ||||||
20 | days during the taxable year from the beginning of | ||||||
21 | the professional athletic team's official | ||||||
22 | pre-season training period through the last game | ||||||
23 | in which the team competes or is scheduled to | ||||||
24 | compete. Duty days shall be counted for the year in | ||||||
25 | which they occur, including where a team's | ||||||
26 | official pre-season training period through the |
| |||||||
| |||||||
1 | last game in which the team competes or is | ||||||
2 | scheduled to compete, occurs during more than one | ||||||
3 | tax year. | ||||||
4 | (A) Duty days shall also include days on | ||||||
5 | which a member of a professional athletic team | ||||||
6 | performs service for a team on a date that does | ||||||
7 | not fall within the foregoing period (e.g., | ||||||
8 | participation in instructional leagues, the | ||||||
9 | "All Star Game", or promotional "caravans"). | ||||||
10 | Performing a service for a professional | ||||||
11 | athletic team includes conducting training and | ||||||
12 | rehabilitation activities, when such | ||||||
13 | activities are conducted at team facilities. | ||||||
14 | (B) Also included in duty days are game | ||||||
15 | days, practice days, days spent at team | ||||||
16 | meetings, promotional caravans, preseason | ||||||
17 | training camps, and days served with the team | ||||||
18 | through all post-season games in which the team | ||||||
19 | competes or is scheduled to compete. | ||||||
20 | (C) Duty days for any person who joins a | ||||||
21 | team during the period from the beginning of | ||||||
22 | the professional athletic team's official | ||||||
23 | pre-season training period through the last | ||||||
24 | game in which the team competes, or is | ||||||
25 | scheduled to compete, shall begin on the day | ||||||
26 | that person joins the team. Conversely, duty |
| |||||||
| |||||||
1 | days for any person who leaves a team during | ||||||
2 | this period shall end on the day that person | ||||||
3 | leaves the team. Where a person switches teams | ||||||
4 | during a taxable year, a separate duty-day | ||||||
5 | calculation shall be made for the period the | ||||||
6 | person was with each team. | ||||||
7 | (D) Days for which a member of a | ||||||
8 | professional athletic team is not compensated | ||||||
9 | and is not performing services for the team in | ||||||
10 | any manner, including days when such member of | ||||||
11 | a professional athletic team has been | ||||||
12 | suspended without pay and prohibited from | ||||||
13 | performing any services for the team, shall not | ||||||
14 | be treated as duty days. | ||||||
15 | (E) Days for which a member of a | ||||||
16 | professional athletic team is on the disabled | ||||||
17 | list and does not conduct rehabilitation | ||||||
18 | activities at facilities of the team, and is | ||||||
19 | not otherwise performing services for the team | ||||||
20 | in Illinois, shall not be considered duty days | ||||||
21 | spent in this State. All days on the disabled | ||||||
22 | list, however, are considered to be included in | ||||||
23 | total duty days spent both within and without | ||||||
24 | this State. | ||||||
25 | (4) The term "total compensation for services | ||||||
26 | performed as a member of a professional athletic |
| |||||||
| |||||||
1 | team" means the total compensation received during | ||||||
2 | the taxable year for services performed: | ||||||
3 | (A) from the beginning of the official | ||||||
4 | pre-season training period through the last | ||||||
5 | game in which the team competes or is scheduled | ||||||
6 | to compete during that taxable year; and | ||||||
7 | (B) during the taxable year on a date which | ||||||
8 | does not fall within the foregoing period | ||||||
9 | (e.g., participation in instructional leagues, | ||||||
10 | the "All Star Game", or promotional caravans). | ||||||
11 | This compensation shall include, but is not | ||||||
12 | limited to, salaries, wages, bonuses as described | ||||||
13 | in this subpart, and any other type of compensation | ||||||
14 | paid during the taxable year to a member of a | ||||||
15 | professional athletic team for services performed | ||||||
16 | in that year. This compensation does not include | ||||||
17 | strike benefits, severance pay, termination pay, | ||||||
18 | contract or option year buy-out payments, | ||||||
19 | expansion or relocation payments, or any other | ||||||
20 | payments not related to services performed for the | ||||||
21 | team. | ||||||
22 | For purposes of this subparagraph, "bonuses" | ||||||
23 | included in "total compensation for services | ||||||
24 | performed as a member of a professional athletic | ||||||
25 | team" subject to the allocation described in | ||||||
26 | Section 302(c)(1) are: bonuses earned as a result |
| |||||||
| |||||||
1 | of play (i.e., performance bonuses) during the | ||||||
2 | season, including bonuses paid for championship, | ||||||
3 | playoff or "bowl" games played by a team, or for | ||||||
4 | selection to all-star league or other honorary | ||||||
5 | positions; and bonuses paid for signing a | ||||||
6 | contract, unless the payment of the signing bonus | ||||||
7 | is not conditional upon the signee playing any | ||||||
8 | games for the team or performing any subsequent | ||||||
9 | services for the team or even making the team, the | ||||||
10 | signing bonus is payable separately from the | ||||||
11 | salary and any other compensation, and the signing | ||||||
12 | bonus is nonrefundable.
| ||||||
13 | (3) Sales factor.
| ||||||
14 | (A) The sales factor is a fraction, the numerator of | ||||||
15 | which is the
total sales of the person in this State during | ||||||
16 | the taxable year, and the
denominator of which is the total | ||||||
17 | sales of the person everywhere during
the taxable year.
| ||||||
18 | (B) Sales of tangible personal property are in this | ||||||
19 | State if:
| ||||||
20 | (i) The property is delivered or shipped to a | ||||||
21 | purchaser, other than
the United States government, | ||||||
22 | within this State regardless of the f. o.
b. point or | ||||||
23 | other conditions of the sale; or
| ||||||
24 | (ii) The property is shipped from an office, store, | ||||||
25 | warehouse,
factory or other place of storage in this | ||||||
26 | State and either the purchaser
is the United States |
| |||||||
| |||||||
1 | government or the person is not taxable in the
state of | ||||||
2 | the purchaser; provided, however, that premises owned | ||||||
3 | or leased
by a person who has independently contracted | ||||||
4 | with the seller for the printing
of newspapers, | ||||||
5 | periodicals or books shall not be deemed to be an | ||||||
6 | office,
store, warehouse, factory or other place of | ||||||
7 | storage for purposes of this
Section.
Sales of tangible | ||||||
8 | personal property are not in this State if the
seller | ||||||
9 | and purchaser would be members of the same unitary | ||||||
10 | business group
but for the fact that either the seller | ||||||
11 | or purchaser is a person with 80%
or more of total | ||||||
12 | business activity outside of the United States and the
| ||||||
13 | property is purchased for resale.
| ||||||
14 | (B-1) Patents, copyrights, trademarks, and similar | ||||||
15 | items of intangible
personal property.
| ||||||
16 | (i) Gross receipts from the licensing, sale, or | ||||||
17 | other disposition of a
patent, copyright, trademark, | ||||||
18 | or similar item of intangible personal property
are in | ||||||
19 | this State to the extent the item is utilized in this | ||||||
20 | State during the
year the gross receipts are included | ||||||
21 | in gross income.
| ||||||
22 | (ii) Place of utilization.
| ||||||
23 | (I) A patent is utilized in a state to the | ||||||
24 | extent that it is employed
in production, | ||||||
25 | fabrication, manufacturing, or other processing in | ||||||
26 | the state or
to the extent that a patented product |
| |||||||
| |||||||
1 | is produced in the state. If a patent is
utilized | ||||||
2 | in
more than one state, the extent to which it is | ||||||
3 | utilized in any one state shall
be a fraction equal | ||||||
4 | to the gross receipts of the licensee or purchaser | ||||||
5 | from
sales or leases of items produced, | ||||||
6 | fabricated, manufactured, or processed
within that | ||||||
7 | state using the patent and of patented items | ||||||
8 | produced within that
state, divided by the total of | ||||||
9 | such gross receipts for all states in which the
| ||||||
10 | patent is utilized.
| ||||||
11 | (II) A copyright is utilized in a state to the | ||||||
12 | extent that printing or
other publication | ||||||
13 | originates in the state. If a copyright is utilized | ||||||
14 | in more
than one state, the extent to which it is | ||||||
15 | utilized in any one state shall be a
fraction equal | ||||||
16 | to the gross receipts from sales or licenses of | ||||||
17 | materials
printed or published in that state | ||||||
18 | divided by the total of such gross receipts
for all | ||||||
19 | states in which the copyright is utilized.
| ||||||
20 | (III) Trademarks and other items of intangible | ||||||
21 | personal property
governed by this paragraph (B-1) | ||||||
22 | are utilized in the state in which the
commercial | ||||||
23 | domicile of the licensee or purchaser is located.
| ||||||
24 | (iii) If the state of utilization of an item of | ||||||
25 | property governed by
this paragraph (B-1) cannot be | ||||||
26 | determined from the taxpayer's books and
records or |
| |||||||
| |||||||
1 | from the books and records of any person related to the | ||||||
2 | taxpayer
within the meaning of Section 267(b) of the | ||||||
3 | Internal Revenue Code, 26 U.S.C.
267, the gross
| ||||||
4 | receipts attributable to that item shall be excluded | ||||||
5 | from both the numerator
and the denominator of the | ||||||
6 | sales factor.
| ||||||
7 | (B-2) Gross receipts from the license, sale, or other | ||||||
8 | disposition of
patents, copyrights, trademarks, and | ||||||
9 | similar items of intangible personal
property may be | ||||||
10 | included in the numerator or denominator of the sales | ||||||
11 | factor
only if gross receipts from licenses, sales, or | ||||||
12 | other disposition of such items
comprise more than 50% of | ||||||
13 | the taxpayer's total gross receipts included in gross
| ||||||
14 | income during the tax year and during each of the 2 | ||||||
15 | immediately preceding tax
years; provided that, when a | ||||||
16 | taxpayer is a member of a unitary business group,
such | ||||||
17 | determination shall be made on the basis of the gross | ||||||
18 | receipts of the
entire unitary business group.
| ||||||
19 | (B-5) For taxable years ending on or after December 31, | ||||||
20 | 2008, except as provided in subsections (ii) through (vii), | ||||||
21 | receipts from the sale of telecommunications service or | ||||||
22 | mobile telecommunications service are in this State if the | ||||||
23 | customer's service address is in this State. | ||||||
24 | (i) For purposes of this subparagraph (B-5), the | ||||||
25 | following follow terms have the following meanings: | ||||||
26 | "Ancillary services" means services that are |
| |||||||
| |||||||
1 | associated with or incidental to the provision of | ||||||
2 | "telecommunications services", including but not | ||||||
3 | limited to "detailed telecommunications billing", | ||||||
4 | "directory assistance", "vertical service", and "voice | ||||||
5 | mail services". | ||||||
6 | "Air-to-Ground Radiotelephone service" means a | ||||||
7 | radio service, as that term is defined in 47 CFR 22.99, | ||||||
8 | in which common carriers are authorized to offer and | ||||||
9 | provide radio telecommunications service for hire to | ||||||
10 | subscribers in aircraft. | ||||||
11 | "Call-by-call Basis" means any method of charging | ||||||
12 | for telecommunications services where the price is | ||||||
13 | measured by individual calls. | ||||||
14 | "Communications Channel" means a physical or | ||||||
15 | virtual path of communications over which signals are | ||||||
16 | transmitted between or among customer channel | ||||||
17 | termination points. | ||||||
18 | "Conference bridging service" means an "ancillary | ||||||
19 | service" that links two or more participants of an | ||||||
20 | audio or video conference call and may include the | ||||||
21 | provision of a telephone number. "Conference bridging | ||||||
22 | service" does not include the "telecommunications | ||||||
23 | services" used to reach the conference bridge. | ||||||
24 | "Customer Channel Termination Point" means the | ||||||
25 | location where the customer either inputs or receives | ||||||
26 | the communications. |
| |||||||
| |||||||
1 | "Detailed telecommunications billing service" | ||||||
2 | means an "ancillary service" of separately stating | ||||||
3 | information pertaining to individual calls on a | ||||||
4 | customer's billing statement. | ||||||
5 | "Directory assistance" means an "ancillary | ||||||
6 | service" of providing telephone number information, | ||||||
7 | and/or address information. | ||||||
8 | "Home service provider" means the facilities based | ||||||
9 | carrier or reseller with which the customer contracts | ||||||
10 | for the provision of mobile telecommunications | ||||||
11 | services. | ||||||
12 | "Mobile telecommunications service" means | ||||||
13 | commercial mobile radio service, as defined in Section | ||||||
14 | 20.3 of Title 47 of the Code of Federal Regulations as | ||||||
15 | in effect on June 1, 1999. | ||||||
16 | "Place of primary use" means the street address | ||||||
17 | representative of where the customer's use of the | ||||||
18 | telecommunications service primarily occurs, which | ||||||
19 | must be the residential street address or the primary | ||||||
20 | business street address of the customer. In the case of | ||||||
21 | mobile telecommunications services, "place of primary | ||||||
22 | use" must be within the licensed service area of the | ||||||
23 | home service provider. | ||||||
24 | "Post-paid telecommunication service" means the | ||||||
25 | telecommunications service obtained by making a | ||||||
26 | payment on a call-by-call basis either through the use |
| |||||||
| |||||||
1 | of a credit card or payment mechanism such as a bank | ||||||
2 | card, travel card, credit card, or debit card, or by | ||||||
3 | charge made to a telephone number which is not | ||||||
4 | associated with the origination or termination of the | ||||||
5 | telecommunications service. A post-paid calling | ||||||
6 | service includes telecommunications service, except a | ||||||
7 | prepaid wireless calling service, that would be a | ||||||
8 | prepaid calling service except it is not exclusively a | ||||||
9 | telecommunication service. | ||||||
10 | "Prepaid telecommunication service" means the | ||||||
11 | right to access exclusively telecommunications | ||||||
12 | services, which must be paid for in advance and which | ||||||
13 | enables the origination of calls using an access number | ||||||
14 | or authorization code, whether manually or | ||||||
15 | electronically dialed, and that is sold in | ||||||
16 | predetermined units or dollars of which the number | ||||||
17 | declines with use in a known amount. | ||||||
18 | "Prepaid Mobile telecommunication service" means a | ||||||
19 | telecommunications service that provides the right to | ||||||
20 | utilize mobile wireless service as well as other | ||||||
21 | non-telecommunication services, including but not | ||||||
22 | limited to ancillary services, which must be paid for | ||||||
23 | in advance that is sold in predetermined units or | ||||||
24 | dollars of which the number declines with use in a | ||||||
25 | known amount. | ||||||
26 | "Private communication service" means a |
| |||||||
| |||||||
1 | telecommunication service that entitles the customer | ||||||
2 | to exclusive or priority use of a communications | ||||||
3 | channel or group of channels between or among | ||||||
4 | termination points, regardless of the manner in which | ||||||
5 | such channel or channels are connected, and includes | ||||||
6 | switching capacity, extension lines, stations, and any | ||||||
7 | other associated services that are provided in | ||||||
8 | connection with the use of such channel or channels. | ||||||
9 | "Service address" means: | ||||||
10 | (a) The location of the telecommunications | ||||||
11 | equipment to which a customer's call is charged and | ||||||
12 | from which the call originates or terminates, | ||||||
13 | regardless of where the call is billed or paid; | ||||||
14 | (b) If the location in line (a) is not known, | ||||||
15 | service address means the origination point of the | ||||||
16 | signal of the telecommunications services first | ||||||
17 | identified by either the seller's | ||||||
18 | telecommunications system or in information | ||||||
19 | received by the seller from its service provider | ||||||
20 | where the system used to transport such signals is | ||||||
21 | not that of the seller; and | ||||||
22 | (c) If the locations in line (a) and line (b) | ||||||
23 | are not known, the service address means the | ||||||
24 | location of the customer's place of primary use. | ||||||
25 | "Telecommunications service" means the electronic | ||||||
26 | transmission, conveyance, or routing of voice, data, |
| |||||||
| |||||||
1 | audio, video, or any other information or signals to a | ||||||
2 | point, or between or among points. The term | ||||||
3 | "telecommunications service" includes such | ||||||
4 | transmission, conveyance, or routing in which computer | ||||||
5 | processing applications are used to act on the form, | ||||||
6 | code or protocol of the content for purposes of | ||||||
7 | transmission, conveyance or routing without regard to | ||||||
8 | whether such service is referred to as voice over | ||||||
9 | Internet protocol services or is classified by the | ||||||
10 | Federal Communications Commission as enhanced or value | ||||||
11 | added. "Telecommunications service" does not include: | ||||||
12 | (a) Data processing and information services | ||||||
13 | that allow data to be generated, acquired, stored, | ||||||
14 | processed, or retrieved and delivered by an | ||||||
15 | electronic transmission to a purchaser when such | ||||||
16 | purchaser's primary purpose for the underlying | ||||||
17 | transaction is the processed data or information; | ||||||
18 | (b) Installation or maintenance of wiring or | ||||||
19 | equipment on a customer's premises; | ||||||
20 | (c) Tangible personal property; | ||||||
21 | (d) Advertising, including but not limited to | ||||||
22 | directory advertising. | ||||||
23 | (e) Billing and collection services provided | ||||||
24 | to third parties; | ||||||
25 | (f) Internet access service; | ||||||
26 | (g) Radio and television audio and video |
| |||||||
| |||||||
1 | programming services, regardless of the medium, | ||||||
2 | including the furnishing of transmission, | ||||||
3 | conveyance and routing of such services by the | ||||||
4 | programming service provider. Radio and television | ||||||
5 | audio and video programming services shall include | ||||||
6 | but not be limited to cable service as defined in | ||||||
7 | 47 USC 522(6) and audio and video programming | ||||||
8 | services delivered by commercial mobile radio | ||||||
9 | service providers, as defined in 47 CFR 20.3; | ||||||
10 | (h) "Ancillary services"; or | ||||||
11 | (i) Digital products "delivered | ||||||
12 | electronically", including but not limited to | ||||||
13 | software, music, video, reading materials or ring | ||||||
14 | tones. | ||||||
15 | "Vertical service" means an "ancillary service" | ||||||
16 | that is offered in connection with one or more | ||||||
17 | "telecommunications services", which offers advanced | ||||||
18 | calling features that allow customers to identify | ||||||
19 | callers and to manage multiple calls and call | ||||||
20 | connections, including "conference bridging services". | ||||||
21 | "Voice mail service" means an "ancillary service" | ||||||
22 | that enables the customer to store, send or receive | ||||||
23 | recorded messages. "Voice mail service" does not | ||||||
24 | include any "vertical services" that the customer may | ||||||
25 | be required to have in order to utilize the "voice mail | ||||||
26 | service". |
| |||||||
| |||||||
1 | (ii) Receipts from the sale of telecommunications | ||||||
2 | service sold on an individual call-by-call basis are in | ||||||
3 | this State if either of the following applies: | ||||||
4 | (a) The call both originates and terminates in | ||||||
5 | this State. | ||||||
6 | (b) The call either originates or terminates | ||||||
7 | in this State and the service address is located in | ||||||
8 | this State. | ||||||
9 | (iii) Receipts from the sale of postpaid | ||||||
10 | telecommunications service at retail are in this State | ||||||
11 | if the origination point of the telecommunication | ||||||
12 | signal, as first identified by the service provider's | ||||||
13 | telecommunication system or as identified by | ||||||
14 | information received by the seller from its service | ||||||
15 | provider if the system used to transport | ||||||
16 | telecommunication signals is not the seller's, is | ||||||
17 | located in this State. | ||||||
18 | (iv) Receipts from the sale of prepaid | ||||||
19 | telecommunications service or prepaid mobile | ||||||
20 | telecommunications service at retail are in this State | ||||||
21 | if the purchaser obtains the prepaid card or similar | ||||||
22 | means of conveyance at a location in this State. | ||||||
23 | Receipts from recharging a prepaid telecommunications | ||||||
24 | service or mobile telecommunications service is in | ||||||
25 | this State if the purchaser's billing information | ||||||
26 | indicates a location in this State. |
| |||||||
| |||||||
1 | (v) Receipts from the sale of private | ||||||
2 | communication services are in this State as follows: | ||||||
3 | (a) 100% of receipts from charges imposed at | ||||||
4 | each channel termination point in this State. | ||||||
5 | (b) 100% of receipts from charges for the total | ||||||
6 | channel mileage between each channel termination | ||||||
7 | point in this State. | ||||||
8 | (c) 50% of the total receipts from charges for | ||||||
9 | service segments when those segments are between 2 | ||||||
10 | customer channel termination points, 1 of which is | ||||||
11 | located in this State and the other is located | ||||||
12 | outside of this State, which segments are | ||||||
13 | separately charged. | ||||||
14 | (d) The receipts from charges for service | ||||||
15 | segments with a channel termination point located | ||||||
16 | in this State and in two or more other states, and | ||||||
17 | which segments are not separately billed, are in | ||||||
18 | this State based on a percentage determined by | ||||||
19 | dividing the number of customer channel | ||||||
20 | termination points in this State by the total | ||||||
21 | number of customer channel termination points. | ||||||
22 | (vi) Receipts from charges for ancillary services | ||||||
23 | for telecommunications service sold to customers at | ||||||
24 | retail are in this State if the customer's primary | ||||||
25 | place of use of telecommunications services associated | ||||||
26 | with those ancillary services is in this State. If the |
| |||||||
| |||||||
1 | seller of those ancillary services cannot determine | ||||||
2 | where the associated telecommunications are located, | ||||||
3 | then the ancillary services shall be based on the | ||||||
4 | location of the purchaser. | ||||||
5 | (vii) Receipts to access a carrier's network or | ||||||
6 | from the sale of telecommunication services or | ||||||
7 | ancillary services for resale are in this State as | ||||||
8 | follows: | ||||||
9 | (a) 100% of the receipts from access fees | ||||||
10 | attributable to intrastate telecommunications | ||||||
11 | service that both originates and terminates in | ||||||
12 | this State. | ||||||
13 | (b) 50% of the receipts from access fees | ||||||
14 | attributable to interstate telecommunications | ||||||
15 | service if the interstate call either originates | ||||||
16 | or terminates in this State. | ||||||
17 | (c) 100% of the receipts from interstate end | ||||||
18 | user access line charges, if the customer's | ||||||
19 | service address is in this State. As used in this | ||||||
20 | subdivision, "interstate end user access line | ||||||
21 | charges" includes, but is not limited to, the | ||||||
22 | surcharge approved by the federal communications | ||||||
23 | commission and levied pursuant to 47 CFR 69. | ||||||
24 | (d) Gross receipts from sales of | ||||||
25 | telecommunication services or from ancillary | ||||||
26 | services for telecommunications services sold to |
| |||||||
| |||||||
1 | other telecommunication service providers for | ||||||
2 | resale shall be sourced to this State using the | ||||||
3 | apportionment concepts used for non-resale | ||||||
4 | receipts of telecommunications services if the | ||||||
5 | information is readily available to make that | ||||||
6 | determination. If the information is not readily | ||||||
7 | available, then the taxpayer may use any other | ||||||
8 | reasonable and consistent method.
| ||||||
9 | (C) For taxable years ending before December 31, 2008, | ||||||
10 | sales, other than sales governed by paragraphs (B), (B-1), | ||||||
11 | and (B-2), are in
this State if:
| ||||||
12 | (i) The income-producing activity is performed in | ||||||
13 | this State; or
| ||||||
14 | (ii) The income-producing activity is performed | ||||||
15 | both within and
without this State and a greater | ||||||
16 | proportion of the income-producing
activity is | ||||||
17 | performed within this State than without this State, | ||||||
18 | based
on performance costs.
| ||||||
19 | (C-5) For taxable years ending on or after December 31, | ||||||
20 | 2008, sales, other than sales governed by paragraphs (B), | ||||||
21 | (B-1), (B-2), and (B-5), are in this State if any of the | ||||||
22 | following criteria are met: | ||||||
23 | (i) Sales from the sale or lease of real property | ||||||
24 | are in this State if the property is located in this | ||||||
25 | State. | ||||||
26 | (ii) Sales from the lease or rental of tangible |
| |||||||
| |||||||
1 | personal property are in this State if the property is | ||||||
2 | located in this State during the rental period. Sales | ||||||
3 | from the lease or rental of tangible personal property | ||||||
4 | that is characteristically moving property, including, | ||||||
5 | but not limited to, motor vehicles, rolling stock, | ||||||
6 | aircraft, vessels, or mobile equipment are in this | ||||||
7 | State to the extent that the property is used in this | ||||||
8 | State. | ||||||
9 | (iii) In the case of interest, net gains (but not | ||||||
10 | less than zero) and other items of income from | ||||||
11 | intangible personal property, the sale is in this State | ||||||
12 | if: | ||||||
13 | (a) in the case of a taxpayer who is a dealer | ||||||
14 | in the item of intangible personal property within | ||||||
15 | the meaning of Section 475 of the Internal Revenue | ||||||
16 | Code, the income or gain is received from a | ||||||
17 | customer in this State. For purposes of this | ||||||
18 | subparagraph, a customer is in this State if the | ||||||
19 | customer is an individual, trust or estate who is a | ||||||
20 | resident of this State and, for all other | ||||||
21 | customers, if the customer's commercial domicile | ||||||
22 | is in this State. Unless the dealer has actual | ||||||
23 | knowledge of the residence or commercial domicile | ||||||
24 | of a customer during a taxable year, the customer | ||||||
25 | shall be deemed to be a customer in this State if | ||||||
26 | the billing address of the customer, as shown in |
| |||||||
| |||||||
1 | the records of the dealer, is in this State; or | ||||||
2 | (b) in all other cases, if the | ||||||
3 | income-producing activity of the taxpayer is | ||||||
4 | performed in this State or, if the | ||||||
5 | income-producing activity of the taxpayer is | ||||||
6 | performed both within and without this State, if a | ||||||
7 | greater proportion of the income-producing | ||||||
8 | activity of the taxpayer is performed within this | ||||||
9 | State than in any other state, based on performance | ||||||
10 | costs. | ||||||
11 | (iv) Sales of services are in this State if the | ||||||
12 | services are received in this State. For the purposes | ||||||
13 | of this section, gross receipts from the performance of | ||||||
14 | services provided to a corporation, partnership, or | ||||||
15 | trust may only be attributed to a state where that | ||||||
16 | corporation, partnership, or trust has a fixed place of | ||||||
17 | business. If the state where the services are received | ||||||
18 | is not readily determinable or is a state where the | ||||||
19 | corporation, partnership, or trust receiving the | ||||||
20 | service does not have a fixed place of business, the | ||||||
21 | services shall be deemed to be received at the location | ||||||
22 | of the office of the customer from which the services | ||||||
23 | were ordered in the regular course of the customer's | ||||||
24 | trade or business. If the ordering office cannot be | ||||||
25 | determined, the services shall be deemed to be received | ||||||
26 | at the office of the customer to which the services are |
| |||||||
| |||||||
1 | billed. If the taxpayer is not taxable in the state in | ||||||
2 | which the services are received, the sale must be | ||||||
3 | excluded from both the numerator and the denominator of | ||||||
4 | the sales factor. The Department shall adopt rules | ||||||
5 | prescribing where specific types of service are | ||||||
6 | received, including, but not limited to, broadcast, | ||||||
7 | cable, advertising, publishing, and utility service.
| ||||||
8 | (D) For taxable years ending on or after December 31, | ||||||
9 | 1995, the following
items of income shall not be included | ||||||
10 | in the numerator or denominator of the
sales factor: | ||||||
11 | dividends; amounts included under Section 78 of the | ||||||
12 | Internal
Revenue Code; and Subpart F income as defined in | ||||||
13 | Section 952 of the Internal
Revenue Code.
No inference | ||||||
14 | shall be drawn from the enactment of this paragraph (D) in
| ||||||
15 | construing this Section for taxable years ending before | ||||||
16 | December 31, 1995.
| ||||||
17 | (E) Paragraphs (B-1) and (B-2) shall apply to tax years | ||||||
18 | ending on or
after December 31, 1999, provided that a | ||||||
19 | taxpayer may elect to apply the
provisions of these | ||||||
20 | paragraphs to prior tax years. Such election shall be made
| ||||||
21 | in the form and manner prescribed by the Department, shall | ||||||
22 | be irrevocable, and
shall apply to all tax years; provided | ||||||
23 | that, if a taxpayer's Illinois income
tax liability for any | ||||||
24 | tax year, as assessed under Section 903 prior to January
1, | ||||||
25 | 1999, was computed in a manner contrary to the provisions | ||||||
26 | of paragraphs
(B-1) or (B-2), no refund shall be payable to |
| |||||||
| |||||||
1 | the taxpayer for that tax year to
the extent such refund is | ||||||
2 | the result of applying the provisions of paragraph
(B-1) or | ||||||
3 | (B-2) retroactively. In the case of a unitary business | ||||||
4 | group, such
election shall apply to all members of such | ||||||
5 | group for every tax year such group
is in existence, but | ||||||
6 | shall not apply to any taxpayer for any period during
which | ||||||
7 | that taxpayer is not a member of such group.
| ||||||
8 | (b) Insurance companies.
| ||||||
9 | (1) In general. Except as otherwise
provided by | ||||||
10 | paragraph (2), business income of an insurance company for | ||||||
11 | a
taxable year shall be apportioned to this State by | ||||||
12 | multiplying such
income by a fraction, the numerator of | ||||||
13 | which is the direct premiums
written for insurance upon | ||||||
14 | property or risk in this State, and the
denominator of | ||||||
15 | which is the direct premiums written for insurance upon
| ||||||
16 | property or risk everywhere. For purposes of this | ||||||
17 | subsection, the term
"direct premiums written" means the | ||||||
18 | total amount of direct premiums
written, assessments and | ||||||
19 | annuity considerations as reported for the
taxable year on | ||||||
20 | the annual statement filed by the company with the
Illinois | ||||||
21 | Director of Insurance in the form approved by the National
| ||||||
22 | Convention of Insurance Commissioners
or such other form as | ||||||
23 | may be
prescribed in lieu thereof.
| ||||||
24 | (2) Reinsurance. If the principal source of premiums | ||||||
25 | written by an
insurance company consists of premiums for | ||||||
26 | reinsurance accepted by it,
the business income of such |
| |||||||
| |||||||
1 | company shall be apportioned to this State
by multiplying | ||||||
2 | such income by a fraction, the numerator of which is the
| ||||||
3 | sum of (i) direct premiums written for insurance upon | ||||||
4 | property or risk
in this State, plus (ii) premiums written | ||||||
5 | for reinsurance accepted in
respect of property or risk in | ||||||
6 | this State, and the denominator of which
is the sum of | ||||||
7 | (iii) direct premiums written for insurance upon property
| ||||||
8 | or risk everywhere, plus (iv) premiums written for | ||||||
9 | reinsurance accepted
in respect of property or risk | ||||||
10 | everywhere. For taxable years ending before December 31, | ||||||
11 | 2008, for purposes of this
paragraph, premiums written for | ||||||
12 | reinsurance accepted in respect of
property or risk in this | ||||||
13 | State, whether or not otherwise determinable,
may, at the | ||||||
14 | election of the company, be determined on the basis of the
| ||||||
15 | proportion which premiums written for reinsurance accepted | ||||||
16 | from
companies commercially domiciled in Illinois bears to | ||||||
17 | premiums written
for reinsurance accepted from all | ||||||
18 | sources, or, alternatively, in the
proportion which the sum | ||||||
19 | of the direct premiums written for insurance
upon property | ||||||
20 | or risk in this State by each ceding company from which
| ||||||
21 | reinsurance is accepted bears to the sum of the total | ||||||
22 | direct premiums
written by each such ceding company for the | ||||||
23 | taxable year. The election made by a company under this | ||||||
24 | paragraph for its first taxable year ending on or after | ||||||
25 | December 31, 2008, shall be binding for that company for | ||||||
26 | that taxable year and for all subsequent taxable years, and |
| |||||||
| |||||||
1 | may be altered only with the written permission of the | ||||||
2 | Department, which shall not be unreasonably withheld.
| ||||||
3 | (c) Financial organizations.
| ||||||
4 | (1) In general. For taxable years ending before | ||||||
5 | December 31, 2008, business income of a financial
| ||||||
6 | organization shall be apportioned to this State by | ||||||
7 | multiplying such
income by a fraction, the numerator of | ||||||
8 | which is its business income from
sources within this | ||||||
9 | State, and the denominator of which is its business
income | ||||||
10 | from all sources. For the purposes of this subsection, the
| ||||||
11 | business income of a financial organization from sources | ||||||
12 | within this
State is the sum of the amounts referred to in | ||||||
13 | subparagraphs (A) through
(E) following, but excluding the | ||||||
14 | adjusted income of an international banking
facility as | ||||||
15 | determined in paragraph (2):
| ||||||
16 | (A) Fees, commissions or other compensation for | ||||||
17 | financial services
rendered within this State;
| ||||||
18 | (B) Gross profits from trading in stocks, bonds or | ||||||
19 | other securities
managed within this State;
| ||||||
20 | (C) Dividends, and interest from Illinois | ||||||
21 | customers, which are received
within this State;
| ||||||
22 | (D) Interest charged to customers at places of | ||||||
23 | business maintained
within this State for carrying | ||||||
24 | debit balances of margin accounts,
without deduction | ||||||
25 | of any costs incurred in carrying such accounts; and
| ||||||
26 | (E) Any other gross income resulting from the |
| |||||||
| |||||||
1 | operation as a
financial organization within this | ||||||
2 | State. In computing the amounts
referred to in | ||||||
3 | paragraphs (A) through (E) of this subsection, any | ||||||
4 | amount
received by a member of an affiliated group | ||||||
5 | (determined under Section
1504(a) of the Internal | ||||||
6 | Revenue Code but without reference to whether
any such | ||||||
7 | corporation is an "includible corporation" under | ||||||
8 | Section
1504(b) of the Internal Revenue Code) from | ||||||
9 | another member of such group
shall be included only to | ||||||
10 | the extent such amount exceeds expenses of the
| ||||||
11 | recipient directly related thereto.
| ||||||
12 | (2) International Banking Facility. For taxable years | ||||||
13 | ending before December 31, 2008:
| ||||||
14 | (A) Adjusted Income. The adjusted income of an | ||||||
15 | international banking
facility is its income reduced | ||||||
16 | by the amount of the floor amount.
| ||||||
17 | (B) Floor Amount. The floor amount shall be the | ||||||
18 | amount, if any,
determined
by multiplying the income of | ||||||
19 | the international banking facility by a fraction,
not | ||||||
20 | greater than one, which is determined as follows:
| ||||||
21 | (i) The numerator shall be:
| ||||||
22 | The average aggregate, determined on a | ||||||
23 | quarterly basis, of the
financial
organization's | ||||||
24 | loans to banks in foreign countries, to foreign | ||||||
25 | domiciled
borrowers (except where secured | ||||||
26 | primarily by real estate) and to foreign
|
| |||||||
| |||||||
1 | governments and other foreign official | ||||||
2 | institutions, as reported for its
branches, | ||||||
3 | agencies and offices within the state on its | ||||||
4 | "Consolidated Report
of Condition", Schedule A, | ||||||
5 | Lines 2.c., 5.b., and 7.a., which was filed with
| ||||||
6 | the Federal Deposit Insurance Corporation and | ||||||
7 | other regulatory authorities,
for the year 1980, | ||||||
8 | minus
| ||||||
9 | The average aggregate, determined on a | ||||||
10 | quarterly basis, of such loans
(other
than loans of | ||||||
11 | an international banking facility), as reported by | ||||||
12 | the financial
institution for its branches, | ||||||
13 | agencies and offices within the state, on
the | ||||||
14 | corresponding Schedule and lines of the | ||||||
15 | Consolidated Report of Condition
for the current | ||||||
16 | taxable year, provided, however, that in no case | ||||||
17 | shall the
amount determined in this clause (the | ||||||
18 | subtrahend) exceed the amount determined
in the | ||||||
19 | preceding clause (the minuend); and
| ||||||
20 | (ii) the denominator shall be the average | ||||||
21 | aggregate, determined on a
quarterly basis, of the | ||||||
22 | international banking facility's loans to banks in
| ||||||
23 | foreign countries, to foreign domiciled borrowers | ||||||
24 | (except where secured
primarily by real estate) | ||||||
25 | and to foreign governments and other foreign
| ||||||
26 | official institutions, which were recorded in its |
| |||||||
| |||||||
1 | financial accounts for
the current taxable year.
| ||||||
2 | (C) Change to Consolidated Report of Condition and | ||||||
3 | in Qualification.
In the event the Consolidated Report | ||||||
4 | of Condition which is filed with the
Federal Deposit | ||||||
5 | Insurance Corporation and other regulatory authorities | ||||||
6 | is
altered so that the information required for | ||||||
7 | determining the floor amount
is not found on Schedule | ||||||
8 | A, lines 2.c., 5.b. and 7.a., the financial
institution | ||||||
9 | shall notify the Department and the Department may, by
| ||||||
10 | regulations or otherwise, prescribe or authorize the | ||||||
11 | use of an alternative
source for such information. The | ||||||
12 | financial institution shall also notify
the Department | ||||||
13 | should its international banking facility fail to | ||||||
14 | qualify as
such, in whole or in part, or should there | ||||||
15 | be any amendment or change to
the Consolidated Report | ||||||
16 | of Condition, as originally filed, to the extent
such | ||||||
17 | amendment or change alters the information used in | ||||||
18 | determining the floor
amount.
| ||||||
19 | (3) For taxable years ending on or after December 31, | ||||||
20 | 2008, the business income of a financial organization shall | ||||||
21 | be apportioned to this State by multiplying such income by | ||||||
22 | a fraction, the numerator of which is its gross receipts | ||||||
23 | from sources in this State or otherwise attributable to | ||||||
24 | this State's marketplace and the denominator of which is | ||||||
25 | its gross receipts everywhere during the taxable year. | ||||||
26 | "Gross receipts" for purposes of this subparagraph (3) |
| |||||||
| |||||||
1 | means gross income, including net taxable gain on | ||||||
2 | disposition of assets, including securities and money | ||||||
3 | market instruments, when derived from transactions and | ||||||
4 | activities in the regular course of the financial | ||||||
5 | organization's trade or business. The following examples | ||||||
6 | are illustrative:
| ||||||
7 | (i) Receipts from the lease or rental of real or | ||||||
8 | tangible personal property are in this State if the | ||||||
9 | property is located in this State during the rental | ||||||
10 | period. Receipts from the lease or rental of tangible | ||||||
11 | personal property that is characteristically moving | ||||||
12 | property, including, but not limited to, motor | ||||||
13 | vehicles, rolling stock, aircraft, vessels, or mobile | ||||||
14 | equipment are from sources in this State to the extent | ||||||
15 | that the property is used in this State. | ||||||
16 | (ii) Interest income, commissions, fees, gains on | ||||||
17 | disposition, and other receipts from assets in the | ||||||
18 | nature of loans that are secured primarily by real | ||||||
19 | estate or tangible personal property are from sources | ||||||
20 | in this State if the security is located in this State. | ||||||
21 | (iii) Interest income, commissions, fees, gains on | ||||||
22 | disposition, and other receipts from consumer loans | ||||||
23 | that are not secured by real or tangible personal | ||||||
24 | property are from sources in this State if the debtor | ||||||
25 | is a resident of this State. | ||||||
26 | (iv) Interest income, commissions, fees, gains on |
| |||||||
| |||||||
1 | disposition, and other receipts from commercial loans | ||||||
2 | and installment obligations that are not secured by | ||||||
3 | real or tangible personal property are from sources in | ||||||
4 | this State if the proceeds of the loan are to be | ||||||
5 | applied in this State. If it cannot be determined where | ||||||
6 | the funds are to be applied, the income and receipts | ||||||
7 | are from sources in this State if the office of the | ||||||
8 | borrower from which the loan was negotiated in the | ||||||
9 | regular course of business is located in this State. If | ||||||
10 | the location of this office cannot be determined, the | ||||||
11 | income and receipts shall be excluded from the | ||||||
12 | numerator and denominator of the sales factor.
| ||||||
13 | (v) Interest income, fees, gains on disposition, | ||||||
14 | service charges, merchant discount income, and other | ||||||
15 | receipts from credit card receivables are from sources | ||||||
16 | in this State if the card charges are regularly billed | ||||||
17 | to a customer in this State. | ||||||
18 | (vi) Receipts from the performance of services, | ||||||
19 | including, but not limited to, fiduciary, advisory, | ||||||
20 | and brokerage services, are in this State if the | ||||||
21 | services are received in this State within the meaning | ||||||
22 | of subparagraph (a)(3)(C-5)(iv) of this Section. | ||||||
23 | (vii) Receipts from the issuance of travelers | ||||||
24 | checks and money orders are from sources in this State | ||||||
25 | if the checks and money orders are issued from a | ||||||
26 | location within this State. |
| |||||||
| |||||||
1 | (viii) Receipts from investment assets and | ||||||
2 | activities and trading assets and activities are | ||||||
3 | included in the receipts factor as follows: | ||||||
4 | (1) Interest, dividends, net gains (but not | ||||||
5 | less than zero) and other income from investment | ||||||
6 | assets and activities from trading assets and | ||||||
7 | activities shall be included in the receipts | ||||||
8 | factor. Investment assets and activities and | ||||||
9 | trading assets and activities include but are not | ||||||
10 | limited to: investment securities; trading account | ||||||
11 | assets; federal funds; securities purchased and | ||||||
12 | sold under agreements to resell or repurchase; | ||||||
13 | options; futures contracts; forward contracts; | ||||||
14 | notional principal contracts such as swaps; | ||||||
15 | equities; and foreign currency transactions. With | ||||||
16 | respect to the investment and trading assets and | ||||||
17 | activities described in subparagraphs (A) and (B) | ||||||
18 | of this paragraph, the receipts factor shall | ||||||
19 | include the amounts described in such | ||||||
20 | subparagraphs. | ||||||
21 | (A) The receipts factor shall include the | ||||||
22 | amount by which interest from federal funds | ||||||
23 | sold and securities purchased under resale | ||||||
24 | agreements exceeds interest expense on federal | ||||||
25 | funds purchased and securities sold under | ||||||
26 | repurchase agreements. |
| |||||||
| |||||||
1 | (B) The receipts factor shall include the | ||||||
2 | amount by which interest, dividends, gains and | ||||||
3 | 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, exceed amounts paid in lieu of | ||||||
8 | interest, amounts paid in lieu of dividends, | ||||||
9 | and losses from such assets and activities. | ||||||
10 | (2) The numerator of the receipts factor | ||||||
11 | includes interest, dividends, net gains (but not | ||||||
12 | less than zero), and other income from investment | ||||||
13 | assets and activities and from trading assets and | ||||||
14 | activities described in paragraph (1) of this | ||||||
15 | subsection that are attributable to this State. | ||||||
16 | (A) The amount of interest, dividends, net | ||||||
17 | gains (but not less than zero), and other | ||||||
18 | income from investment assets and activities | ||||||
19 | in the investment account to be attributed to | ||||||
20 | this State and included in the numerator is | ||||||
21 | determined by multiplying all such income from | ||||||
22 | such assets and activities by a fraction, the | ||||||
23 | numerator of which is the gross income from | ||||||
24 | such assets and activities which are properly | ||||||
25 | assigned to a fixed place of business of the | ||||||
26 | taxpayer within this State and the denominator |
| |||||||
| |||||||
1 | of which is the gross income from all such | ||||||
2 | assets and activities. | ||||||
3 | (B) The amount of interest from federal | ||||||
4 | funds sold and purchased and from securities | ||||||
5 | purchased under resale agreements and | ||||||
6 | securities sold under repurchase agreements | ||||||
7 | attributable to this State and included in the | ||||||
8 | numerator is determined by multiplying the | ||||||
9 | amount described in subparagraph (A) of | ||||||
10 | paragraph (1) of this subsection from such | ||||||
11 | funds and such securities by a fraction, the | ||||||
12 | numerator of which is the gross income from | ||||||
13 | such funds and such securities which are | ||||||
14 | properly assigned to a fixed place of business | ||||||
15 | of the taxpayer within this State and the | ||||||
16 | denominator of which is the gross income from | ||||||
17 | all such funds and such securities. | ||||||
18 | (C) The amount of interest, dividends, | ||||||
19 | gains, and other income from trading assets and | ||||||
20 | activities, including but not limited to | ||||||
21 | assets and activities in the matched book, in | ||||||
22 | the arbitrage book and foreign currency | ||||||
23 | transactions (but excluding amounts described | ||||||
24 | in subparagraphs (A) or (B) of this paragraph), | ||||||
25 | attributable to this State and included in the | ||||||
26 | numerator is determined by multiplying the |
| |||||||
| |||||||
1 | amount described in subparagraph (B) of | ||||||
2 | paragraph (1) of this subsection by a fraction, | ||||||
3 | the numerator of which is the gross income from | ||||||
4 | such trading assets and activities which are | ||||||
5 | properly assigned to a fixed place of business | ||||||
6 | of the taxpayer within this State and the | ||||||
7 | denominator of which is the gross income from | ||||||
8 | all such assets and activities. | ||||||
9 | (D) Properly assigned, for purposes of | ||||||
10 | this paragraph (2) of this subsection, means | ||||||
11 | the investment or trading asset or activity is | ||||||
12 | assigned to the fixed place of business with | ||||||
13 | which it has a preponderance of substantive | ||||||
14 | contacts. An investment or trading asset or | ||||||
15 | activity assigned by the taxpayer to a fixed | ||||||
16 | place of business without the State shall be | ||||||
17 | presumed to have been properly assigned if: | ||||||
18 | (i) the taxpayer has assigned, in the | ||||||
19 | regular course of its business, such asset | ||||||
20 | or activity on its records to a fixed place | ||||||
21 | of business consistent with federal or | ||||||
22 | state regulatory requirements; | ||||||
23 | (ii) such assignment on its records is | ||||||
24 | based upon substantive contacts of the | ||||||
25 | asset or activity to such fixed place of | ||||||
26 | business; and |
| |||||||
| |||||||
1 | (iii) the taxpayer uses such records | ||||||
2 | reflecting assignment of such assets or | ||||||
3 | activities for the filing of all state and | ||||||
4 | local tax returns for which an assignment | ||||||
5 | of such assets or activities to a fixed | ||||||
6 | place of business is required. | ||||||
7 | (E) The presumption of proper assignment | ||||||
8 | of an investment or trading asset or activity | ||||||
9 | provided in subparagraph (D) of paragraph (2) | ||||||
10 | of this subsection may be rebutted upon a | ||||||
11 | showing by the Department, supported by a | ||||||
12 | preponderance of the evidence, that the | ||||||
13 | preponderance of substantive contacts | ||||||
14 | regarding such asset or activity did not occur | ||||||
15 | at the fixed place of business to which it was | ||||||
16 | assigned on the taxpayer's records. If the | ||||||
17 | fixed place of business that has a | ||||||
18 | preponderance of substantive contacts cannot | ||||||
19 | be determined for an investment or trading | ||||||
20 | asset or activity to which the presumption in | ||||||
21 | subparagraph (D) of paragraph (2) of this | ||||||
22 | subsection does not apply or with respect to | ||||||
23 | which that presumption has been rebutted, that | ||||||
24 | asset or activity is properly assigned to the | ||||||
25 | state in which the taxpayer's commercial | ||||||
26 | domicile is located. For purposes of this |
| |||||||
| |||||||
1 | subparagraph (E), it shall be presumed, | ||||||
2 | subject to rebuttal, that taxpayer's | ||||||
3 | commercial domicile is in the state of the | ||||||
4 | United States or the District of Columbia to | ||||||
5 | which the greatest number of employees are | ||||||
6 | regularly connected with the management of the | ||||||
7 | investment or trading income or out of which | ||||||
8 | they are working, irrespective of where the | ||||||
9 | services of such employees are performed, as of | ||||||
10 | the last day of the taxable year.
| ||||||
11 | (4) (Blank). | ||||||
12 | (5) (Blank). | ||||||
13 | (d) Transportation services. For taxable years ending | ||||||
14 | before December 31, 2008, business income derived from | ||||||
15 | furnishing
transportation services shall be apportioned to | ||||||
16 | this State in accordance
with paragraphs (1) and (2):
| ||||||
17 | (1) Such business income (other than that derived from
| ||||||
18 | transportation by pipeline) shall be apportioned to this | ||||||
19 | State by
multiplying such income by a fraction, the | ||||||
20 | numerator of which is the
revenue miles of the person in | ||||||
21 | this State, and the denominator of which
is the revenue | ||||||
22 | miles of the person everywhere. For purposes of this
| ||||||
23 | paragraph, a revenue mile is the transportation of 1 | ||||||
24 | passenger or 1 net
ton of freight the distance of 1 mile | ||||||
25 | for a consideration. Where a
person is engaged in the | ||||||
26 | transportation of both passengers and freight,
the |
| |||||||
| |||||||
1 | fraction above referred to shall be determined by means of | ||||||
2 | an
average of the passenger revenue mile fraction and the | ||||||
3 | freight revenue
mile fraction, weighted to reflect the | ||||||
4 | person's
| ||||||
5 | (A) relative railway operating income from total | ||||||
6 | passenger and total
freight service, as reported to the | ||||||
7 | Interstate Commerce Commission, in
the case of | ||||||
8 | transportation by railroad, and
| ||||||
9 | (B) relative gross receipts from passenger and | ||||||
10 | freight
transportation, in case of transportation | ||||||
11 | other than by railroad.
| ||||||
12 | (2) Such business income derived from transportation | ||||||
13 | by pipeline
shall be apportioned to this State by | ||||||
14 | multiplying such income by a
fraction, the numerator of | ||||||
15 | which is the revenue miles of the person in
this State, and | ||||||
16 | the denominator of which is the revenue miles of the
person | ||||||
17 | everywhere. For the purposes of this paragraph, a revenue | ||||||
18 | mile is
the transportation by pipeline of 1 barrel of oil, | ||||||
19 | 1,000 cubic feet of
gas, or of any specified quantity of | ||||||
20 | any other substance, the distance
of 1 mile for a | ||||||
21 | consideration.
| ||||||
22 | (3) For taxable years ending on or after December 31, | ||||||
23 | 2008, business income derived from providing | ||||||
24 | transportation services other than airline services shall | ||||||
25 | be apportioned to this State by using a fraction, (a) the | ||||||
26 | numerator of which shall be (i) all receipts from any |
| |||||||
| |||||||
1 | movement or shipment of people, goods, mail, oil, gas, or | ||||||
2 | any other substance (other than by airline) that both | ||||||
3 | originates and terminates in this State, plus (ii) that | ||||||
4 | portion of the person's gross receipts from movements or | ||||||
5 | shipments of people, goods, mail, oil, gas, or any other | ||||||
6 | substance (other than by airline) that originates in one | ||||||
7 | state or jurisdiction and terminates in another state or | ||||||
8 | jurisdiction, that is determined by the ratio that the | ||||||
9 | miles traveled in this State bears to total miles | ||||||
10 | everywhere and (b) the denominator of which shall be all | ||||||
11 | revenue derived from the movement or shipment of people, | ||||||
12 | goods, mail, oil, gas, or any other substance (other than | ||||||
13 | by airline). Where a taxpayer is engaged in the | ||||||
14 | transportation of both passengers and freight, the | ||||||
15 | fraction above referred to shall first be determined | ||||||
16 | separately for passenger miles and freight miles. Then an | ||||||
17 | average of the passenger miles fraction and the freight | ||||||
18 | miles fraction shall be weighted to reflect the taxpayer's: | ||||||
19 | (A) relative railway operating income from total | ||||||
20 | passenger and total freight service, as reported to the | ||||||
21 | Surface Transportation Board, in the case of | ||||||
22 | transportation by railroad; and
| ||||||
23 | (B) relative gross receipts from passenger and | ||||||
24 | freight transportation, in case of transportation | ||||||
25 | other than by railroad.
| ||||||
26 | (4) For taxable years ending on or after December 31, |
| |||||||
| |||||||
1 | 2008, business income derived from furnishing airline
| ||||||
2 | transportation services shall be apportioned to this State | ||||||
3 | by
multiplying such income by a fraction, the numerator of | ||||||
4 | which is the
revenue miles of the person in this State, and | ||||||
5 | the denominator of which
is the revenue miles of the person | ||||||
6 | everywhere. For purposes of this
paragraph, a revenue mile | ||||||
7 | is the transportation of one passenger or one net
ton of | ||||||
8 | freight the distance of one mile for a consideration. If a
| ||||||
9 | person is engaged in the transportation of both passengers | ||||||
10 | and freight,
the fraction above referred to shall be | ||||||
11 | determined by means of an
average of the passenger revenue | ||||||
12 | mile fraction and the freight revenue
mile fraction, | ||||||
13 | weighted to reflect the person's relative gross receipts | ||||||
14 | from passenger and freight
airline transportation.
| ||||||
15 | (e) Combined apportionment. Where 2 or more persons are | ||||||
16 | engaged in
a unitary business as described in subsection | ||||||
17 | (a)(27) of
Section 1501,
a part of which is conducted in this | ||||||
18 | State by one or more members of the
group, the business income | ||||||
19 | attributable to this State by any such member
or members shall | ||||||
20 | be apportioned by means of the combined apportionment method.
| ||||||
21 | (f) Alternative allocation. If the allocation and | ||||||
22 | apportionment
provisions of subsections (a) through (e) and of | ||||||
23 | subsection (h) do not , for taxable years ending before December | ||||||
24 | 31, 2008,
fairly represent the
extent of a person's business | ||||||
25 | activity in this State or, for taxable years ending on or after | ||||||
26 | December 31, 2008, fairly represent the market for the person's |
| |||||||
| |||||||
1 | goods, services or other sources of business income , the person | ||||||
2 | may
petition for, or the Director may, without a petition, | ||||||
3 | permit or require, in respect of all or any part
of the | ||||||
4 | person's business activity, if reasonable:
| ||||||
5 | (1) Separate accounting;
| ||||||
6 | (2) The exclusion of any one or more factors;
| ||||||
7 | (3) The inclusion of one or more additional factors | ||||||
8 | which will
fairly represent the person's business | ||||||
9 | activities or market in this State; or
| ||||||
10 | (4) The employment of any other method to effectuate an | ||||||
11 | equitable
allocation and apportionment of the person's | ||||||
12 | business income.
| ||||||
13 | (g) Cross reference. For allocation of business income by | ||||||
14 | residents,
see Section 301(a).
| ||||||
15 | (h) For tax years ending on or after December 31, 1998, the | ||||||
16 | apportionment
factor of persons who apportion their business | ||||||
17 | income to this State under
subsection (a) shall be equal to:
| ||||||
18 | (1) for tax years ending on or after December 31, 1998 | ||||||
19 | and before December
31, 1999, 16 2/3% of the property | ||||||
20 | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||||||
21 | the sales factor;
| ||||||
22 | (2) for tax years ending on or after December 31, 1999 | ||||||
23 | and before December
31,
2000, 8 1/3% of the property factor | ||||||
24 | plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales | ||||||
25 | factor;
| ||||||
26 | (3) for tax years ending on or after December 31, 2000, |
| |||||||
| |||||||
1 | the sales factor.
| ||||||
2 | If, in any tax year ending on or after December 31, 1998 and | ||||||
3 | before December
31, 2000, the denominator of the payroll, | ||||||
4 | property, or sales factor is zero,
the apportionment
factor | ||||||
5 | computed in paragraph (1) or (2) of this subsection for that | ||||||
6 | year shall
be divided by an amount equal to 100% minus the | ||||||
7 | percentage weight given to each
factor whose denominator is | ||||||
8 | equal to zero.
| ||||||
9 | (Source: P.A. 94-247, eff. 1-1-06; 95-233, eff. 8-16-07; | ||||||
10 | 95-707, eff. 1-11-08.)
| ||||||
11 | (35 ILCS 5/502) (from Ch. 120, par. 5-502)
| ||||||
12 | Sec. 502. Returns and notices.
| ||||||
13 | (a) In general. A return with respect to the taxes imposed | ||||||
14 | by this
Act shall be made by every person for any taxable year:
| ||||||
15 | (1) for which such person is liable for a tax imposed | ||||||
16 | by this Act,
or
| ||||||
17 | (2) in the case of a resident or in the case of a | ||||||
18 | corporation which
is qualified to do business in this | ||||||
19 | State, for which such person is
required to make a federal | ||||||
20 | income tax return, regardless of whether such
person is | ||||||
21 | liable for a tax imposed by this Act. However, this | ||||||
22 | paragraph
shall not require a resident to make a return if | ||||||
23 | such person has
an
Illinois base income of the basic amount | ||||||
24 | in Section 204(b) or
less and is either claimed as a | ||||||
25 | dependent on
another person's tax return under the Internal |
| |||||||
| |||||||
1 | Revenue Code of 1986 , or is
claimed as a dependent on | ||||||
2 | another person's tax return under this Act.
| ||||||
3 | Notwithstanding the provisions of paragraph (1), a | ||||||
4 | nonresident (other than, for taxable years ending on or after | ||||||
5 | December 31, 2009, a nonresident required to withhold tax under | ||||||
6 | Section 709.5) whose Illinois income tax liability under | ||||||
7 | subsections (a), (b), (c), and (d) of Section 201 of this Act | ||||||
8 | is paid in full after taking into account the credits allowed | ||||||
9 | under subsection (f) of this Section or allowed under Section | ||||||
10 | 709.5 of this Act shall not be required to file a return under | ||||||
11 | this subsection (a).
| ||||||
12 | (b) Fiduciaries and receivers.
| ||||||
13 | (1) Decedents. If an individual is deceased, any return | ||||||
14 | or notice
required of such individual under this Act shall | ||||||
15 | be made by his
executor, administrator, or other person | ||||||
16 | charged with the property of
such decedent.
| ||||||
17 | (2) Individuals under a disability. If an individual is | ||||||
18 | unable
to make a return or notice required under this Act, | ||||||
19 | the return or notice
required of such individual shall be | ||||||
20 | made by his duly authorized agent,
guardian, fiduciary or | ||||||
21 | other person charged with the care
of the person or | ||||||
22 | property of such individual.
| ||||||
23 | (3) Estates and trusts. Returns or notices required of | ||||||
24 | an estate
or a trust shall be made by the fiduciary | ||||||
25 | thereof.
| ||||||
26 | (4) Receivers, trustees and assignees for |
| |||||||
| |||||||
1 | corporations. In a
case where a receiver, trustee in | ||||||
2 | bankruptcy, or assignee, by order of a
court of competent | ||||||
3 | jurisdiction, by operation of law, or otherwise, has
| ||||||
4 | possession of or holds title to all or substantially all | ||||||
5 | the property or
business of a corporation, whether or not | ||||||
6 | such property or business is
being operated, such receiver, | ||||||
7 | trustee, or assignee shall make the
returns and notices | ||||||
8 | required of such corporation in the same manner and
form as | ||||||
9 | corporations are required to make such returns and notices.
| ||||||
10 | (c) Joint returns by husband and wife.
| ||||||
11 | (1) Except as provided in paragraph (3), if a husband | ||||||
12 | and wife file a
joint federal income tax return for a | ||||||
13 | taxable year they shall file a joint
return under this Act | ||||||
14 | for such taxable year and their liabilities shall be
joint | ||||||
15 | and several, but if the federal income tax liability of | ||||||
16 | either spouse is
determined on a separate federal income | ||||||
17 | tax return, they shall file separate
returns under this | ||||||
18 | Act.
| ||||||
19 | (2) If neither spouse is required to file a federal | ||||||
20 | income tax
return and either or both are required to file a | ||||||
21 | return under this Act,
they may elect to file separate or | ||||||
22 | joint returns and pursuant to such
election their | ||||||
23 | liabilities shall be separate or joint and several.
| ||||||
24 | (3) If either husband or wife is a resident and the | ||||||
25 | other is a
nonresident, they shall file separate returns in | ||||||
26 | this State on such
forms as may be required by the |
| |||||||
| |||||||
1 | Department in which event their tax
liabilities shall be | ||||||
2 | separate; but they may elect to determine their
joint net | ||||||
3 | income and file a joint return as if both were residents | ||||||
4 | and
in such case, their liabilities shall be joint and | ||||||
5 | several.
| ||||||
6 | (4) Innocent spouses.
| ||||||
7 | (A) However, for tax liabilities arising and paid | ||||||
8 | prior to August 13,
1999, an innocent spouse shall be | ||||||
9 | relieved of
liability for tax
(including interest and | ||||||
10 | penalties) for any taxable year for which a joint
| ||||||
11 | return has been made, upon submission of proof that the | ||||||
12 | Internal Revenue
Service has made a determination | ||||||
13 | under Section 6013(e) of the Internal
Revenue Code, for | ||||||
14 | the same taxable year, which determination relieved | ||||||
15 | the
spouse from liability for federal income taxes.
If | ||||||
16 | there is no federal income tax liability at issue for | ||||||
17 | the
same taxable year, the Department shall rely on the | ||||||
18 | provisions of Section
6013(e) to determine whether the | ||||||
19 | person requesting innocent spouse abatement of
tax, | ||||||
20 | penalty, and interest is entitled to that relief.
| ||||||
21 | (B) For tax liabilities arising on and after August | ||||||
22 | 13, 1999 or which arose prior to that date, but remain | ||||||
23 | unpaid as of that date, if
an individual
who filed a | ||||||
24 | joint return for any taxable year has made an election | ||||||
25 | under this
paragraph, the individual's liability for | ||||||
26 | any tax shown on the joint return
shall not exceed the |
| |||||||
| |||||||
1 | individual's separate return amount and the | ||||||
2 | individual's
liability for any deficiency assessed for | ||||||
3 | that taxable year shall not exceed
the portion of the | ||||||
4 | deficiency properly allocable to the individual. For
| ||||||
5 | purposes of this paragraph:
| ||||||
6 | (i) An election properly made pursuant to | ||||||
7 | Section 6015 of the Internal
Revenue Code shall | ||||||
8 | constitute an election under this paragraph, | ||||||
9 | provided that
the election shall not be effective | ||||||
10 | until the individual has notified the
Department | ||||||
11 | of the election in the form and manner prescribed | ||||||
12 | by the Department.
| ||||||
13 | (ii) If no election has been made under Section | ||||||
14 | 6015, the individual
may make an election under | ||||||
15 | this paragraph in the form and manner prescribed by
| ||||||
16 | the Department, provided that no election may be | ||||||
17 | made if the Department finds
that assets were | ||||||
18 | transferred
between individuals filing a joint | ||||||
19 | return as part of a scheme by such
individuals to | ||||||
20 | avoid payment of Illinois income tax and the | ||||||
21 | election shall not
eliminate the individual's | ||||||
22 | liability for any portion of a deficiency
| ||||||
23 | attributable to an error on the return of which the | ||||||
24 | individual had actual
knowledge as of the date of | ||||||
25 | filing.
| ||||||
26 | (iii) In determining the separate return |
| |||||||
| |||||||
1 | amount or portion of any
deficiency attributable | ||||||
2 | to an individual, the Department shall follow the
| ||||||
3 | provisions in subsections (c) and (d) of Section | ||||||
4 | 6015 of the Internal Revenue Code.
| ||||||
5 | (iv) In determining the validity of an | ||||||
6 | individual's election under
subparagraph (ii) and | ||||||
7 | in determining an electing individual's separate | ||||||
8 | return
amount or portion of any deficiency under | ||||||
9 | subparagraph (iii), any determination
made by the | ||||||
10 | Secretary of the Treasury, by the United States Tax | ||||||
11 | Court on
petition for review of a determination by | ||||||
12 | the Secretary of the Treasury, or on
appeal from | ||||||
13 | the United States Tax Court under Section 6015 of
| ||||||
14 | the Internal
Revenue Code regarding criteria for | ||||||
15 | eligibility or under subsection (d) of
Section | ||||||
16 | 6015
of the Internal Revenue Code regarding the | ||||||
17 | allocation of any item of income,
deduction, | ||||||
18 | payment, or credit between an individual making | ||||||
19 | the federal election
and that individual's spouse | ||||||
20 | shall be conclusively presumed to be correct.
With | ||||||
21 | respect to any item that is not the subject of a | ||||||
22 | determination by the
Secretary of the Treasury or | ||||||
23 | the federal courts, in any proceeding
involving | ||||||
24 | this subsection, the
individual making the | ||||||
25 | election shall have the burden of proof with | ||||||
26 | respect to
any item except that the Department |
| |||||||
| |||||||
1 | shall have the burden of proof with respect
to | ||||||
2 | items in subdivision (ii).
| ||||||
3 | (v) Any election made by an individual under | ||||||
4 | this subsection shall
apply to all years for which | ||||||
5 | that individual and the spouse named in the
| ||||||
6 | election have filed a joint return.
| ||||||
7 | (vi) After receiving a notice that the federal | ||||||
8 | election has been made
or after receiving an | ||||||
9 | election under subdivision (ii), the Department | ||||||
10 | shall
take no collection action against the | ||||||
11 | electing individual for any liability
arising from | ||||||
12 | a joint return covered by the election until the | ||||||
13 | Department has
notified the electing individual in | ||||||
14 | writing that the election is invalid or of
the | ||||||
15 | portion of the liability the Department has | ||||||
16 | allocated to the electing
individual. Within 60 | ||||||
17 | days (150 days if the individual is outside the | ||||||
18 | United
States) after the issuance of such | ||||||
19 | notification, the individual may file a
written | ||||||
20 | protest of the denial of the election or of the | ||||||
21 | Department's
determination of the liability | ||||||
22 | allocated to him or her and shall be granted a
| ||||||
23 | hearing within the Department under the provisions | ||||||
24 | of Section 908. If a
protest is filed, the | ||||||
25 | Department shall take no collection action against | ||||||
26 | the
electing individual until the decision |
| |||||||
| |||||||
1 | regarding the protest has become final
under | ||||||
2 | subsection (d) of Section 908 or, if | ||||||
3 | administrative review of the
Department's decision
| ||||||
4 | is requested under Section 1201, until the | ||||||
5 | decision of the court becomes
final.
| ||||||
6 | (d) Partnerships. Every partnership having any base income
| ||||||
7 | allocable to this State in accordance with section 305(c) shall | ||||||
8 | retain
information concerning all items of income, gain, loss | ||||||
9 | and
deduction; the names and addresses of all of the partners, | ||||||
10 | or names and
addresses of members of a limited liability | ||||||
11 | company, or other
persons who would be entitled to share in the | ||||||
12 | base income of the
partnership if distributed; the amount of | ||||||
13 | the distributive share of
each; and such other pertinent | ||||||
14 | information as the Department may by
forms or regulations | ||||||
15 | prescribe. The partnership shall make that information
| ||||||
16 | available to the Department when requested by the Department.
| ||||||
17 | (e) For taxable years ending on or after December 31, 1985, | ||||||
18 | and before
December 31, 1993, taxpayers
that are corporations | ||||||
19 | (other than Subchapter S corporations) having the
same taxable | ||||||
20 | year and that are members of the same unitary business group
| ||||||
21 | may elect to be treated as one taxpayer for purposes of any | ||||||
22 | original return,
amended return which includes the same | ||||||
23 | taxpayers of the unitary group which
joined in the election to | ||||||
24 | file the original return, extension, claim for
refund, | ||||||
25 | assessment, collection and payment and determination of the
| ||||||
26 | group's tax liability under this Act. This subsection (e) does |
| |||||||
| |||||||
1 | not permit the
election to be made for some, but not all, of | ||||||
2 | the purposes enumerated above.
For taxable years ending on or | ||||||
3 | after December 31, 1987, corporate members
(other than | ||||||
4 | Subchapter S corporations) of the same unitary business group
| ||||||
5 | making this subsection (e) election are not required to have | ||||||
6 | the same taxable
year.
| ||||||
7 | For taxable years ending on or after December 31, 1993, | ||||||
8 | taxpayers that are
corporations (other than Subchapter S | ||||||
9 | corporations) and that are members of
the same unitary business | ||||||
10 | group shall be treated as one taxpayer for purposes
of any | ||||||
11 | original return, amended return which includes the same | ||||||
12 | taxpayers of the
unitary group which joined in filing the | ||||||
13 | original return, extension, claim for
refund, assessment, | ||||||
14 | collection and payment and determination of the group's tax
| ||||||
15 | liability under this Act.
| ||||||
16 | (f) The Department may promulgate regulations to permit | ||||||
17 | nonresident
individual partners of the same partnership, | ||||||
18 | nonresident Subchapter S
corporation shareholders of the same | ||||||
19 | Subchapter S corporation, and
nonresident individuals | ||||||
20 | transacting an insurance business in Illinois under
a Lloyds | ||||||
21 | plan of operation, and nonresident individual members of the | ||||||
22 | same
limited liability company that is treated as a partnership | ||||||
23 | under Section 1501
(a)(16) of this Act, to file composite | ||||||
24 | individual income tax returns
reflecting the composite income | ||||||
25 | of such individuals allocable to Illinois
and to make composite | ||||||
26 | individual income tax payments. The Department may
by |
| |||||||
| |||||||
1 | regulation also permit such composite returns to include the | ||||||
2 | income tax
owed by Illinois residents attributable to their | ||||||
3 | income from partnerships,
Subchapter S corporations, insurance | ||||||
4 | businesses organized under a Lloyds
plan of operation, or | ||||||
5 | limited liability companies that are treated as
partnership | ||||||
6 | under Section 1501(a)(16) of this Act, in which case such
| ||||||
7 | Illinois residents will be permitted to claim credits on their | ||||||
8 | individual
returns for their shares of the composite tax | ||||||
9 | payments. This paragraph of
subsection (f) applies to taxable | ||||||
10 | years ending on or after December 31, 1987.
| ||||||
11 | For taxable years ending on or after December 31, 1999, the | ||||||
12 | Department may,
by regulation, also permit any persons | ||||||
13 | transacting an insurance business
organized under a Lloyds plan | ||||||
14 | of operation to file composite returns reflecting
the income of | ||||||
15 | such persons allocable to Illinois and the tax rates applicable
| ||||||
16 | to such persons under Section 201 and to make composite tax | ||||||
17 | payments and shall,
by regulation, also provide that the income | ||||||
18 | and apportionment factors
attributable to the transaction of an | ||||||
19 | insurance business organized under a
Lloyds plan of operation | ||||||
20 | by any person joining in the filing of a composite
return | ||||||
21 | shall, for purposes of allocating and apportioning income under | ||||||
22 | Article
3 of this Act and computing net income under Section | ||||||
23 | 202 of this Act, be
excluded from any other income and | ||||||
24 | apportionment factors of that person or of
any unitary business | ||||||
25 | group, as defined in subdivision (a)(27) of Section 1501,
to | ||||||
26 | which that person may belong.
|
| |||||||
| |||||||
1 | For taxable years ending on or after December 31, 2008, | ||||||
2 | every nonresident shall be allowed a credit against his or her | ||||||
3 | liability under subsections (a) and (b) of Section 201 for any | ||||||
4 | amount of tax reported on a composite return and paid on his or | ||||||
5 | her behalf under this subsection (f). Residents (other than | ||||||
6 | persons transacting an insurance business organized under a | ||||||
7 | Lloyds plan of operation) may claim a credit for taxes reported | ||||||
8 | on a composite return and paid on their behalf under this | ||||||
9 | subsection (f) only as permitted by the Department by rule.
| ||||||
10 | (f-5) For taxable years ending on or after December 31, | ||||||
11 | 2008, the Department may adopt rules to provide that, when a | ||||||
12 | partnership or Subchapter S corporation has made an error in | ||||||
13 | determining the amount of any item of income, deduction, | ||||||
14 | addition, subtraction, or credit required to be reported on its | ||||||
15 | return that affects the liability imposed under this Act on a | ||||||
16 | partner or shareholder, the partnership or Subchapter S | ||||||
17 | corporation may report the changes in liabilities of its | ||||||
18 | partners or shareholders and claim a refund of the resulting | ||||||
19 | overpayments, or pay the resulting underpayments, on behalf of | ||||||
20 | its partners and shareholders.
| ||||||
21 | (g) The Department may adopt rules to authorize the | ||||||
22 | electronic filing of
any return required to be filed under this | ||||||
23 | Section.
| ||||||
24 | (Source: P.A. 94-1074, eff. 12-26-06; 95-233, eff. 8-16-07.)
| ||||||
25 | (35 ILCS 5/506) (from Ch. 120, par. 5-506)
|
| |||||||
| |||||||
1 | Sec. 506. Federal Returns.
| ||||||
2 | (a) In general. Any person required to make a return for a | ||||||
3 | taxable
year under this Act may, at any time that a deficiency | ||||||
4 | could be assessed or
a refund claimed under this Act in respect | ||||||
5 | of any item reported or properly
reportable on such return or | ||||||
6 | any amendment thereof, be required to furnish
to the Department | ||||||
7 | a true and correct copy of any return which may pertain
to such | ||||||
8 | item and which was filed by such person under the provisions of | ||||||
9 | the
Internal Revenue Code.
| ||||||
10 | (b) Changes affecting federal income tax.
A person shall | ||||||
11 | notify the Department if:
| ||||||
12 | (1) the taxable
income, any item of income or | ||||||
13 | deduction, the income tax liability, or
any tax credit | ||||||
14 | reported in an original or amended a federal income tax | ||||||
15 | return of that
person for any
year or as determined by the | ||||||
16 | Internal Revenue Service or the courts is
altered by | ||||||
17 | amendment of such return or as a result of any other
| ||||||
18 | recomputation or redetermination of federal taxable income | ||||||
19 | or loss, and
such alteration reflects a change or | ||||||
20 | settlement with respect to any item or
items, affecting the | ||||||
21 | computation of such person's net income, net loss, or of
| ||||||
22 | any credit provided by Article 2 of this Act for any
year | ||||||
23 | under this Act, or in the number
of personal exemptions | ||||||
24 | allowable to
such person under Section 151 of the Internal | ||||||
25 | Revenue Code, or
| ||||||
26 | (2) the amount of tax required to be withheld by that |
| |||||||
| |||||||
1 | person from
compensation paid to employees and required to | ||||||
2 | be reported by that person on a
federal return is altered | ||||||
3 | by amendment of the return or by any other
recomputation or | ||||||
4 | redetermination that is agreed to or finally determined on | ||||||
5 | or
after January 1, 2003, and the alteration affects the | ||||||
6 | amount of compensation
subject to withholding by that | ||||||
7 | person under Section 701 of this Act.
| ||||||
8 | Such notification shall be
in the form of an amended return or | ||||||
9 | such other form as the Department may
by regulations prescribe, | ||||||
10 | shall contain the person's name and address and
such other | ||||||
11 | information as the Department may by regulations prescribe,
| ||||||
12 | shall be signed by such person or his duly authorized | ||||||
13 | representative, and
shall be filed not later than 120 days | ||||||
14 | after such alteration has been agreed
to or finally determined | ||||||
15 | for federal income tax purposes or any federal
income tax | ||||||
16 | deficiency or refund, tentative carryback adjustment, | ||||||
17 | abatement
or credit resulting therefrom has been assessed or | ||||||
18 | paid, whichever shall
first occur.
| ||||||
19 | (Source: P.A. 92-846, eff. 8-23-02.)
| ||||||
20 | (35 ILCS 5/601) (from Ch. 120, par. 6-601)
| ||||||
21 | Sec. 601. Payment on Due Date of Return.
| ||||||
22 | (a) In general. Every taxpayer required to file a return | ||||||
23 | under
this Act shall, without assessment, notice or demand, pay | ||||||
24 | any tax due
thereon to the Department, at the place fixed for | ||||||
25 | filing, on or before
the date fixed for filing such return |
| |||||||
| |||||||
1 | (determined without regard to any
extension of time for filing | ||||||
2 | the return) pursuant to regulations
prescribed by the | ||||||
3 | Department.
If, however, the due date for payment of a | ||||||
4 | taxpayer's federal income tax
liability for a tax year (as | ||||||
5 | provided in the Internal Revenue Code or by
Treasury | ||||||
6 | regulation, or as extended by the Internal Revenue Service) is | ||||||
7 | later
than the date fixed for filing the taxpayer's Illinois | ||||||
8 | income tax return for
that tax year, the Department may, by | ||||||
9 | rule, prescribe a due date for payment
that is not later than | ||||||
10 | the due date for payment of the taxpayer's federal
income tax | ||||||
11 | liability. For purposes of the Illinois Administrative | ||||||
12 | Procedure
Act, the adoption of rules to prescribe a later due | ||||||
13 | date for payment shall be
deemed an emergency and necessary for | ||||||
14 | the public interest, safety, and
welfare.
| ||||||
15 | (b) Amount payable. In making payment as provided in this
| ||||||
16 | section there shall remain payable only the balance of such tax
| ||||||
17 | remaining due after giving effect to the following:
| ||||||
18 | (1) Withheld tax. Any amount withheld during any | ||||||
19 | calendar year
pursuant to Article 7 from compensation paid | ||||||
20 | to a taxpayer shall be
deemed to have been paid on account | ||||||
21 | of any tax imposed by subsections 201(a)
and (b) of this | ||||||
22 | Act on
such taxpayer for his taxable year beginning in such | ||||||
23 | calendar year. If
more than one taxable year begins in a | ||||||
24 | calendar year, such amount shall
be deemed to have been | ||||||
25 | paid on account of such tax for the last taxable
year so | ||||||
26 | beginning.
|
| |||||||
| |||||||
1 | (2) Estimated and tentative tax payments. Any amount of | ||||||
2 | estimated tax
paid by a taxpayer pursuant to Article 8 for | ||||||
3 | a taxable year shall be deemed to
have been paid on account | ||||||
4 | of the tax imposed by this Act for such
taxable year.
| ||||||
5 | (3) Foreign tax. The aggregate amount of tax which is | ||||||
6 | imposed
upon or measured by income and which is paid by a | ||||||
7 | resident for a taxable
year to another state or states on | ||||||
8 | income which is also subject to the tax
imposed by | ||||||
9 | subsections 201(a) and (b) of this Act shall be credited | ||||||
10 | against
the tax imposed by subsections 201(a) and (b) | ||||||
11 | otherwise due under
this Act for such taxable year. The | ||||||
12 | aggregate credit provided under this
paragraph shall not | ||||||
13 | exceed that amount which bears the same ratio to the tax
| ||||||
14 | imposed by subsections 201(a) and (b) otherwise due under | ||||||
15 | this Act as the
amount of the taxpayer's base income | ||||||
16 | subject to tax both by such other state or
states and by | ||||||
17 | this State bears to his total base income subject to tax by | ||||||
18 | this
State for the taxable year. The credit provided by | ||||||
19 | this paragraph shall
not be allowed if any creditable tax | ||||||
20 | was deducted in determining base income
for the taxable | ||||||
21 | year. Any person claiming such credit shall attach a
| ||||||
22 | statement in support thereof and shall notify the Director | ||||||
23 | of any refund
or reductions in the amount of tax claimed as | ||||||
24 | a credit hereunder all in
such manner and at such time as | ||||||
25 | the Department shall by regulations prescribe.
| ||||||
26 | (4) Accumulation and capital gain distributions. If |
| |||||||
| |||||||
1 | the net
income of a taxpayer includes amounts included in | ||||||
2 | his base income by
reason of Section 667 668 or 669 of the | ||||||
3 | Internal Revenue Code (relating to
accumulation and | ||||||
4 | capital gain distributions by a trust, respectively),
the | ||||||
5 | tax imposed on such taxpayer by this Act shall be credited | ||||||
6 | with his
pro rata portion of the taxes imposed by this Act | ||||||
7 | on such trust for
preceding taxable years which would not | ||||||
8 | have been payable for such
preceding years if the trust had | ||||||
9 | in fact made distributions to its
beneficiaries at the | ||||||
10 | times and in the amounts specified in Section 667 Sections | ||||||
11 | 666
and 669 of the Internal Revenue Code. The credit | ||||||
12 | provided by this
paragraph shall not reduce the tax | ||||||
13 | otherwise due from the taxpayer to an
amount less than that | ||||||
14 | which would be due if the amounts included by
reason of | ||||||
15 | Section 667 Sections 668 and 669 of the Internal Revenue | ||||||
16 | Code were
excluded from his or her base income.
| ||||||
17 | (c) Cross reference. For application against tax due of
| ||||||
18 | overpayments of tax for a prior year, see Section 909.
| ||||||
19 | (Source: P.A. 94-247, eff. 1-1-06.)
| ||||||
20 | (35 ILCS 5/701) (from Ch. 120, par. 7-701) | ||||||
21 | Sec. 701. Requirement and Amount of Withholding.
| ||||||
22 | (a) In General. Every
employer maintaining an office or | ||||||
23 | transacting business within this State
and required under the | ||||||
24 | provisions of the Internal Revenue Code to
withhold a tax on:
| ||||||
25 | (1) compensation paid in this State (as determined |
| |||||||
| |||||||
1 | under Section
304(a)(2)(B) to an individual; or
| ||||||
2 | (2) payments described in subsection (b) shall deduct | ||||||
3 | and withhold from
such compensation for each payroll period | ||||||
4 | (as defined in Section 3401 of
the Internal Revenue Code) | ||||||
5 | an amount equal to the amount by which such
individual's
| ||||||
6 | compensation exceeds the proportionate part of this | ||||||
7 | withholding exemption
(computed as provided in Section | ||||||
8 | 702) attributable to the payroll period
for which such | ||||||
9 | compensation is payable multiplied by a percentage equal
to | ||||||
10 | the percentage tax rate for individuals provided in | ||||||
11 | subsection (b) of
Section 201.
| ||||||
12 | (b) Payment to Residents. Any payment (including | ||||||
13 | compensation) to a
resident
by a payor maintaining an office or | ||||||
14 | transacting business within this State
(including any agency, | ||||||
15 | officer, or employee of this State or of any political
| ||||||
16 | subdivision of this State) and on which withholding of tax is | ||||||
17 | required under
the provisions of the
Internal Revenue Code | ||||||
18 | shall be deemed to be compensation paid in this State
by an | ||||||
19 | employer to an employee for the purposes of Article 7 and | ||||||
20 | Section
601(b)(1) to the extent such payment is included in the | ||||||
21 | recipient's base
income and not subjected to withholding by | ||||||
22 | another state.
Notwithstanding any other provision to the | ||||||
23 | contrary, no amount shall be
withheld from unemployment | ||||||
24 | insurance benefit payments made to an individual
pursuant to | ||||||
25 | the Unemployment Insurance Act unless the individual has
| ||||||
26 | voluntarily elected the withholding pursuant to rules |
| |||||||
| |||||||
1 | promulgated by the
Director of Employment Security.
| ||||||
2 | (c) Special Definitions. Withholding shall be considered | ||||||
3 | required under
the provisions of the Internal Revenue Code to | ||||||
4 | the extent the Internal Revenue
Code either requires | ||||||
5 | withholding or allows for voluntary withholding the
payor and | ||||||
6 | recipient have entered into such a voluntary withholding | ||||||
7 | agreement.
For the purposes of Article 7 and Section 1002(c) | ||||||
8 | the term "employer" includes
any payor who is required to | ||||||
9 | withhold tax pursuant to this Section.
| ||||||
10 | (d) Reciprocal Exemption. The Director may enter into an | ||||||
11 | agreement with
the taxing authorities of any state which | ||||||
12 | imposes a tax on or measured by
income to provide that | ||||||
13 | compensation paid in such state to residents of this
State | ||||||
14 | shall be exempt from withholding of such tax; in such case, any
| ||||||
15 | compensation paid in this State to residents of such state | ||||||
16 | shall be exempt
from withholding.
All reciprocal agreements | ||||||
17 | shall be subject to the requirements of Section
2505-575 of the | ||||||
18 | Department of Revenue Law (20 ILCS
2505/2505-575).
| ||||||
19 | (e) Notwithstanding subsection (a)(2) of this Section, no | ||||||
20 | withholding
is required on payments for which withholding is | ||||||
21 | required under Section
3405 or 3406 of the Internal Revenue | ||||||
22 | Code of 1954 .
| ||||||
23 | (Source: P.A. 92-846, eff. 8-23-02; 93-634, eff. 1-1-04.)
| ||||||
24 | (35 ILCS 5/702) (from Ch. 120, par. 7-702)
| ||||||
25 | Sec. 702. Amount Exempt from Withholding. For purposes of |
| |||||||
| |||||||
1 | this Section
an employee shall be entitled to a withholding | ||||||
2 | exemption in an amount equal
to the basic amount in Section | ||||||
3 | 204(b) for each personal or
dependent exemption which he is
| ||||||
4 | entitled to claim on his federal return pursuant to Section 151 | ||||||
5 | of the
Internal Revenue Code of 1986 ; plus an allowance equal | ||||||
6 | to $1,000 for each
$1,000 he is entitled to deduct from gross | ||||||
7 | income in arriving at adjusted
gross income pursuant to Section | ||||||
8 | 62 of the Internal Revenue Code of 1986 ;
plus an additional | ||||||
9 | allowance equal to $1,000 for each $1,000 eligible for
| ||||||
10 | subtraction on
his Illinois income tax return as Illinois real | ||||||
11 | estate taxes paid during
the taxable year; or in any lesser | ||||||
12 | amount claimed
by him. Every employee shall furnish to his | ||||||
13 | employer such information as
is required for the employer to | ||||||
14 | make an accurate withholding under this
Act. The employer may | ||||||
15 | rely on this information for withholding purposes.
If any | ||||||
16 | employee fails or refuses to furnish such information, the | ||||||
17 | employer
shall withhold the full rate of tax from the | ||||||
18 | employee's total compensation.
| ||||||
19 | (Source: P.A. 90-613, eff. 7-9-98.)
| ||||||
20 | (35 ILCS 5/703) (from Ch. 120, par. 7-703)
| ||||||
21 | Sec. 703. Information statement. Every employer required | ||||||
22 | to deduct and withhold tax under this Act from
compensation of | ||||||
23 | an employee, or who would have been required so to deduct
and | ||||||
24 | withhold tax if the employee's withholding exemption were not | ||||||
25 | in excess
of the basic amount in Section 204(b), shall furnish |
| |||||||
| |||||||
1 | in
duplicate to each such employee in respect of
the | ||||||
2 | compensation paid by such employer to such employee during the | ||||||
3 | calendar
year on or before January 31 of the succeeding year, | ||||||
4 | or, if his employment
is terminated before the close of such | ||||||
5 | calendar year, on the date on which
the last payment of | ||||||
6 | compensation is made, a written statement in such form
as the | ||||||
7 | Department may by regulation prescribe showing the amount of
| ||||||
8 | compensation paid by the employer to the employee, the amount | ||||||
9 | deducted and
withheld as tax, the tax-exempt amount contributed | ||||||
10 | to a medical savings
account, and such other information as the | ||||||
11 | Department shall
prescribe. A copy of such statement shall be | ||||||
12 | filed by the employee with his
return for his taxable year to | ||||||
13 | which it relates (as determined under
Section 601(b)(1)).
| ||||||
14 | (Source: P.A. 91-841, eff. 6-22-00; 92-16, eff. 6-28-01.)
| ||||||
15 | (35 ILCS 5/704A) | ||||||
16 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
17 | (a) In general, every employer who deducts and withholds or | ||||||
18 | is required to deduct and withhold tax under this Act on or | ||||||
19 | after January 1, 2008 shall make those payments and returns as | ||||||
20 | provided in this Section. | ||||||
21 | (b) Returns. Every employer shall, in the form and manner | ||||||
22 | required by the Department, make returns with respect to taxes | ||||||
23 | withheld or required to be withheld under this Article 7 for | ||||||
24 | each quarter beginning on or after January 1, 2008, on or | ||||||
25 | before the last day of the first month following the close of |
| |||||||
| |||||||
1 | that quarter. | ||||||
2 | (c) Payments. With respect to amounts withheld or required | ||||||
3 | to be withheld on or after January 1, 2008: | ||||||
4 | (1) Semi-weekly payments. For each calendar year, each | ||||||
5 | employer who withheld or was required to withhold more than | ||||||
6 | $12,000 during the one-year period ending on June 30 of the | ||||||
7 | immediately preceding calendar year, payment must be made: | ||||||
8 | (A) on or before each Friday of the calendar year, | ||||||
9 | for taxes withheld or required to be withheld on the | ||||||
10 | immediately preceding Saturday, Sunday, Monday, or | ||||||
11 | Tuesday; | ||||||
12 | (B) on or before each Wednesday of the calendar | ||||||
13 | year, for taxes withheld or required to be withheld on | ||||||
14 | the immediately preceding Wednesday, Thursday, or | ||||||
15 | Friday. | ||||||
16 | (2) Semi-weekly payments. Any employer who withholds | ||||||
17 | or is required to withhold more than $12,000 in any quarter | ||||||
18 | of a calendar year is required to make payments on the | ||||||
19 | dates set forth under item (1) of this subsection (c) for | ||||||
20 | each remaining quarter of that calendar year and for the | ||||||
21 | subsequent calendar year.
| ||||||
22 | (3) Monthly payments. Each employer, other than an | ||||||
23 | employer described in items (1) or (2) of this subsection, | ||||||
24 | shall pay to the Department, on or before the 15th day of | ||||||
25 | each month the taxes withheld or required to be withheld | ||||||
26 | during the immediately preceding month. |
| |||||||
| |||||||
1 | (4) Payments with returns. Each employer shall pay to | ||||||
2 | the Department, on or before the due date for each return | ||||||
3 | required to be filed under this Section, any tax withheld | ||||||
4 | or required to be withheld during the period for which the | ||||||
5 | return is due and not previously paid to the Department. | ||||||
6 | (d) Regulatory authority. The Department may, by rule: | ||||||
7 | (1) If the aggregate amounts required to be withheld | ||||||
8 | under this Article 7 do not exceed $1,000 for the calendar | ||||||
9 | year, permit employers, in lieu of the requirements of | ||||||
10 | subsections (b) and (c), to file annual returns due on or | ||||||
11 | before January 31 of the following year for taxes withheld | ||||||
12 | or required to be withheld during that calendar year and to | ||||||
13 | pay the taxes required to be shown on each such return no | ||||||
14 | later than the due date for such return. | ||||||
15 | (2) Provide that any payment required to be made under | ||||||
16 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
17 | extent paid by electronic funds transfer on or before the | ||||||
18 | due date for deposit of federal income taxes withheld from, | ||||||
19 | or federal employment taxes due with respect to, the wages | ||||||
20 | from which the Illinois taxes were withheld. | ||||||
21 | (3) Designate one or more depositories to which payment | ||||||
22 | of taxes required to be withheld under this Article 7 must | ||||||
23 | be paid by some or all employers. | ||||||
24 | (4) Increase the threshold dollar amounts at which | ||||||
25 | employers are required to make semi-weekly payments under | ||||||
26 | subsection (c)(1) or (c)(2). |
| |||||||
| |||||||
1 | (e) Annual return and payment. Every employer who deducts | ||||||
2 | and withholds or is required to deduct and withhold tax from a | ||||||
3 | person engaged in domestic service employment, as that term is | ||||||
4 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
5 | comply with the requirements of this Section with respect to | ||||||
6 | such employees by filing an annual return and paying the taxes | ||||||
7 | required to be deducted and withheld on or before the 15th day | ||||||
8 | of the fourth month following the close of the employer's | ||||||
9 | taxable year. The Department may allow the employer's return to | ||||||
10 | be submitted with the employer's individual income tax return | ||||||
11 | or to be submitted with a return due from the employer under | ||||||
12 | Section 1400.2 of the Unemployment Insurance Act. | ||||||
13 | (f) Magnetic media and electronic filing. Any W-2 Form | ||||||
14 | that, under the Internal Revenue Code and regulations | ||||||
15 | promulgated thereunder, is required to be submitted to the | ||||||
16 | Internal Revenue Service on magnetic media or electronically | ||||||
17 | must also be submitted to the Department on magnetic media or | ||||||
18 | electronically for Illinois purposes, if required by the | ||||||
19 | Department.
| ||||||
20 | (g) Interest on late payment. No interest shall accrue on | ||||||
21 | any underpayment of an amount due under this Section prior to | ||||||
22 | the due date (without regard for extensions) of the return on | ||||||
23 | which the underpaid amount was reported or required to be | ||||||
24 | reported. | ||||||
25 | (Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/804) (from Ch. 120, par. 8-804)
| ||||||
2 | Sec. 804. Failure to Pay Estimated Tax.
| ||||||
3 | (a) In general. In case of any underpayment of estimated | ||||||
4 | tax by a
taxpayer, except as provided in subsection (d) or (e), | ||||||
5 | the taxpayer shall
be liable to a penalty in an amount | ||||||
6 | determined at the rate prescribed by
Section 3-3 of the Uniform | ||||||
7 | Penalty and Interest Act upon the amount of the
underpayment | ||||||
8 | (determined under subsection (b)) for each required | ||||||
9 | installment.
| ||||||
10 | (b) Amount of underpayment. For purposes of subsection (a), | ||||||
11 | the
amount of the underpayment shall be the excess of:
| ||||||
12 | (1) the amount of the installment which would be | ||||||
13 | required to be paid
under subsection (c), over
| ||||||
14 | (2) the amount, if any, of the installment paid on or | ||||||
15 | before the
last date prescribed for payment.
| ||||||
16 | (c) Amount of Required Installments.
| ||||||
17 | (1) Amount.
| ||||||
18 | (A) In General. Except as provided in paragraph | ||||||
19 | (2), the amount of any
required installment shall be | ||||||
20 | 25% of the required annual payment.
| ||||||
21 | (B) Required Annual Payment. For purposes of | ||||||
22 | subparagraph (A),
the term "required annual payment" | ||||||
23 | means the lesser of
| ||||||
24 | (i) 90% of the tax shown on the return for the | ||||||
25 | taxable year, or
if no return is filed, 90% of the | ||||||
26 | tax for such year, or
|
| |||||||
| |||||||
1 | (ii) 100% of the tax shown on the return of the | ||||||
2 | taxpayer for the
preceding taxable year if a return | ||||||
3 | showing a liability for tax was filed by
the | ||||||
4 | taxpayer for the preceding taxable year and such | ||||||
5 | preceding year was a
taxable year of 12 months.
| ||||||
6 | (2) Lower Required Installment where Annualized Income | ||||||
7 | Installment is Less
Than Amount Determined Under Paragraph | ||||||
8 | (1).
| ||||||
9 | (A) In General. In the case of any required | ||||||
10 | installment if a taxpayer
establishes that the | ||||||
11 | annualized income installment is less than the amount
| ||||||
12 | determined under paragraph (1),
| ||||||
13 | (i) the amount of such required installment | ||||||
14 | shall be the annualized
income installment, and
| ||||||
15 | (ii) any reduction in a required installment | ||||||
16 | resulting from the
application of this | ||||||
17 | subparagraph shall be recaptured by increasing the
| ||||||
18 | amount of the next required installment determined | ||||||
19 | under paragraph (1) by
the amount of such | ||||||
20 | reduction, and by increasing subsequent required
| ||||||
21 | installments to the extent that the reduction has | ||||||
22 | not previously been
recaptured under this clause.
| ||||||
23 | (B) Determination of Annualized Income | ||||||
24 | Installment. In the case of
any required installment, | ||||||
25 | the annualized income installment is the
excess, if | ||||||
26 | any, of
|
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | (i) an amount equal to the applicable | |||||||||||||||||||||||||
2 | percentage of the tax for the
taxable year computed | |||||||||||||||||||||||||
3 | by placing on an annualized basis the net income | |||||||||||||||||||||||||
4 | for
months in the taxable year ending before the | |||||||||||||||||||||||||
5 | due date for the installment, over
| |||||||||||||||||||||||||
6 | (ii) the aggregate amount of any prior | |||||||||||||||||||||||||
7 | required installments for
the taxable year.
| |||||||||||||||||||||||||
8 | (C) Applicable Percentage.
| |||||||||||||||||||||||||
| ||||||||||||||||||||||||||
15 | (D) Annualized Net Income; Individuals. For | |||||||||||||||||||||||||
16 | individuals, net
income shall be placed on an | |||||||||||||||||||||||||
17 | annualized basis by:
| |||||||||||||||||||||||||
18 | (i) multiplying by 12, or in the case of a | |||||||||||||||||||||||||
19 | taxable year of
less than 12 months, by the number | |||||||||||||||||||||||||
20 | of months in the taxable year, the
net income | |||||||||||||||||||||||||
21 | computed without regard to the standard exemption | |||||||||||||||||||||||||
22 | for the months
in the taxable
year ending before | |||||||||||||||||||||||||
23 | the month in which the installment is required to | |||||||||||||||||||||||||
24 | be paid;
| |||||||||||||||||||||||||
25 | (ii) dividing the resulting amount by the | |||||||||||||||||||||||||
26 | number of months in the
taxable year ending before |
| |||||||
| |||||||
1 | the month in which such installment date falls; and
| ||||||
2 | (iii) deducting from such amount the standard | ||||||
3 | exemption allowable for
the taxable year, such | ||||||
4 | standard exemption being determined as of the last
| ||||||
5 | date prescribed for payment of the installment.
| ||||||
6 | (E) Annualized Net Income; Corporations. For | ||||||
7 | corporations,
net income shall be placed on an | ||||||
8 | annualized basis by multiplying
by 12 the taxable | ||||||
9 | income
| ||||||
10 | (i) for the first 3 months of the taxable year, | ||||||
11 | in the case of the
installment required to be paid | ||||||
12 | in the 4th month,
| ||||||
13 | (ii) for the first 3 months or for the first 5 | ||||||
14 | months of the taxable
year, in the case of the | ||||||
15 | installment required to be paid in the 6th month,
| ||||||
16 | (iii) for the first 6 months or for the first 8 | ||||||
17 | months of the taxable
year, in the case of the | ||||||
18 | installment required to be paid in the 9th month, | ||||||
19 | and
| ||||||
20 | (iv) for the first 9 months or for the first 11 | ||||||
21 | months of the taxable
year, in the case of the | ||||||
22 | installment required to be paid in the 12th month
| ||||||
23 | of the taxable year,
| ||||||
24 | then dividing the resulting amount by the number of | ||||||
25 | months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | ||||||
26 | case may be).
|
| |||||||
| |||||||
1 | (d) Exceptions. Notwithstanding the provisions of the | ||||||
2 | preceding
subsections, the penalty imposed by subsection (a) | ||||||
3 | shall not
be imposed if the taxpayer was not required to file | ||||||
4 | an Illinois income
tax return for the preceding taxable year, | ||||||
5 | or, for individuals, if the
taxpayer had no tax liability for | ||||||
6 | the preceding taxable year and such year
was a taxable year of | ||||||
7 | 12 months.
The penalty imposed by subsection (a) shall
also not | ||||||
8 | be imposed on any underpayments of estimated tax due before the
| ||||||
9 | effective date of this amendatory Act of 1998 which | ||||||
10 | underpayments are solely
attributable to the change in | ||||||
11 | apportionment from subsection (a) to subsection
(h) of Section | ||||||
12 | 304. The provisions of this amendatory Act of 1998 apply to tax
| ||||||
13 | years ending on or after December 31, 1998.
| ||||||
14 | (e) The penalty imposed for underpayment of estimated tax | ||||||
15 | by subsection
(a) of this Section shall not be imposed to the | ||||||
16 | extent that the Director
or his or her designate determines, | ||||||
17 | pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | ||||||
18 | that the penalty should not be imposed.
| ||||||
19 | (f) Definition of tax. For purposes of subsections (b) and | ||||||
20 | (c),
the term "tax" means the excess of the tax imposed under | ||||||
21 | Article 2 of
this Act, over the amounts credited against such | ||||||
22 | tax under Sections
601(b) (3) and (4).
| ||||||
23 | (g) Application of Section in case of tax withheld under | ||||||
24 | Article 7.
For purposes of applying this Section:
| ||||||
25 | (1) in the case of an individual, tax
withheld from | ||||||
26 | compensation for the taxable year shall be deemed a payment
|
| |||||||
| |||||||
1 | of estimated tax, and an equal part of such amount shall be | ||||||
2 | deemed paid
on each installment date for such taxable year, | ||||||
3 | unless the taxpayer
establishes the dates on which all | ||||||
4 | amounts were actually withheld, in
which case the amounts | ||||||
5 | so withheld shall be deemed payments of estimated
tax on | ||||||
6 | the dates on which such amounts were actually withheld;
| ||||||
7 | (2) amounts timely paid by a partnership, Subchapter S | ||||||
8 | corporation, or trust on behalf of a partner, shareholder, | ||||||
9 | or beneficiary pursuant to subsection (f) of Section 502 or | ||||||
10 | Section 709.5 and claimed as a payment of estimated tax | ||||||
11 | shall be deemed a payment of estimated tax made on the last | ||||||
12 | day of the taxable year of the partnership, Subchapter S | ||||||
13 | corporation, or trust for which the income from the | ||||||
14 | withholding is made was computed; and | ||||||
15 | (3) all other amounts pursuant to Article 7 shall be | ||||||
16 | deemed a payment of estimated tax on the date the payment | ||||||
17 | is made to the taxpayer of the amount from which the tax is | ||||||
18 | withheld.
| ||||||
19 | (g-5) Amounts withheld under the State Salary and Annuity | ||||||
20 | Withholding
Act. An individual who has amounts withheld under | ||||||
21 | paragraph (10) of Section 4
of the State Salary and Annuity | ||||||
22 | Withholding Act may elect to have those amounts
treated as | ||||||
23 | payments of estimated tax made on the dates on which those | ||||||
24 | amounts
are actually withheld.
| ||||||
25 | (i) Short taxable year. The application of this Section to
| ||||||
26 | taxable years of less than 12 months shall be in accordance |
| |||||||
| |||||||
1 | with
regulations prescribed by the Department.
| ||||||
2 | The changes in this Section made by Public Act 84-127 shall | ||||||
3 | apply to
taxable years ending on or after January 1, 1986.
| ||||||
4 | (Source: P.A. 95-233, eff. 8-16-07.)
| ||||||
5 | (35 ILCS 5/909) (from Ch. 120, par. 9-909)
| ||||||
6 | Sec. 909. Credits and Refunds.
| ||||||
7 | (a) In general. In the case of any overpayment, the | ||||||
8 | Department , within the applicable period of limitations for a | ||||||
9 | claim for refund, may
credit the amount of such overpayment, | ||||||
10 | including any interest allowed
thereon, against any liability | ||||||
11 | in respect of the tax imposed by this Act,
regardless of | ||||||
12 | whether other collection remedies are closed to the
Department | ||||||
13 | on the part of the person who made the overpayment and shall
| ||||||
14 | refund any balance to such person.
| ||||||
15 | (b) Credits against estimated tax. The Department may
| ||||||
16 | prescribe regulations providing for the crediting against the | ||||||
17 | estimated tax
for any taxable year of the amount determined by | ||||||
18 | the taxpayer or the
Department to be an overpayment of the tax | ||||||
19 | imposed by this Act for a
preceding taxable year.
| ||||||
20 | (c) Interest on overpayment. Interest shall be allowed and | ||||||
21 | paid at the
rate and in the manner prescribed in Section 3-2 of | ||||||
22 | the Uniform Penalty and
Interest Act upon any overpayment in | ||||||
23 | respect of the tax imposed by this
Act. For purposes of this | ||||||
24 | subsection, no amount of tax, for any taxable
year, shall be | ||||||
25 | treated as having been paid before the date on which the tax
|
| |||||||
| |||||||
1 | return for such year was due under Section 505, without regard | ||||||
2 | to any
extension of the time for filing such return.
| ||||||
3 | (d) Refund claim. Every claim for refund shall be filed | ||||||
4 | with the
Department in writing in such form as the Department | ||||||
5 | may by regulations
prescribe, and shall state the specific | ||||||
6 | grounds upon which it is founded.
| ||||||
7 | (e) Notice of denial. As soon as practicable after a claim | ||||||
8 | for refund
is filed, the Department shall examine it and either | ||||||
9 | issue a notice of
refund, abatement or credit to the claimant | ||||||
10 | or issue a notice of denial.
If the Department has failed to | ||||||
11 | approve or deny the claim before the
expiration of 6 months | ||||||
12 | from the date the claim was filed, the claimant may
| ||||||
13 | nevertheless thereafter file with the Department a written | ||||||
14 | protest in such
form as the Department may by regulation | ||||||
15 | prescribe. If a protest is filed,
the Department shall consider | ||||||
16 | the claim and, if the taxpayer has so
requested, shall grant | ||||||
17 | the taxpayer or the taxpayer's authorized
representative a | ||||||
18 | hearing within 6 months after the date such request is filed.
| ||||||
19 | (f) Effect of denial. A denial of a claim for refund | ||||||
20 | becomes final 60
days after the date of issuance of the notice | ||||||
21 | of such denial except for
such amounts denied as to which the | ||||||
22 | claimant has filed a protest with the
Department, as provided | ||||||
23 | by Section 910.
| ||||||
24 | (g) An overpayment of tax shown on the face of an unsigned | ||||||
25 | return
shall be considered forfeited to the State if after | ||||||
26 | notice and demand for
signature by the Department the taxpayer |
| |||||||
| |||||||
1 | fails to provide a signature and 3
years have passed from the | ||||||
2 | date the return was filed.
An overpayment of tax refunded to a | ||||||
3 | taxpayer whose return was filed
electronically shall be | ||||||
4 | considered an erroneous refund under Section 912 of
this Act | ||||||
5 | if, after proper notice and demand by the
Department, the | ||||||
6 | taxpayer fails to provide a required signature document.
A | ||||||
7 | notice and demand for signature in the case of a return | ||||||
8 | reflecting an
overpayment may be made by first class mail. This | ||||||
9 | subsection (g) shall apply
to all returns filed pursuant to | ||||||
10 | this Act since 1969.
| ||||||
11 | (h) This amendatory Act of 1983 applies to returns and | ||||||
12 | claims for
refunds filed with the Department on and after July | ||||||
13 | 1, 1983.
| ||||||
14 | (Source: P.A. 89-399, eff. 8-20-95.)
| ||||||
15 | (35 ILCS 5/911) (from Ch. 120, par. 9-911)
| ||||||
16 | Sec. 911. Limitations on Claims for Refund.
| ||||||
17 | (a) In general. Except
as otherwise provided in this Act:
| ||||||
18 | (1) A claim for refund shall be filed not later than 3 | ||||||
19 | years after
the date the return was filed (in the case of | ||||||
20 | returns required under
Article 7 of this Act respecting any | ||||||
21 | amounts withheld as tax, not later
than 3 years after the | ||||||
22 | 15th day of the 4th month following the close of
the | ||||||
23 | calendar year in which such withholding was made), or one | ||||||
24 | year after
the date the tax was paid, whichever is the | ||||||
25 | later; and
|
| |||||||
| |||||||
1 | (2) No credit or refund shall be allowed or made with | ||||||
2 | respect to the
year for which the claim was filed unless | ||||||
3 | such claim is filed within
such period.
| ||||||
4 | (b) Federal changes.
| ||||||
5 | (1) In general. In any case where
notification of an | ||||||
6 | alteration is required by Section 506(b), a claim
for | ||||||
7 | refund may be filed within 2 years after the date on which | ||||||
8 | such
notification was due (regardless of whether such | ||||||
9 | notice was given), but
the amount recoverable pursuant to a | ||||||
10 | claim filed under this Section
shall be limited to the | ||||||
11 | amount of any overpayment resulting under this
Act from | ||||||
12 | recomputation of the taxpayer's net income, net loss, or | ||||||
13 | Article 2
credits for the taxable
year after giving effect | ||||||
14 | to the item or items reflected in the
alteration required | ||||||
15 | to be reported.
| ||||||
16 | (2) Tentative carryback adjustments paid before | ||||||
17 | January 1, 1974.
If, as the result of the payment before | ||||||
18 | January 1, 1974 of a federal
tentative carryback | ||||||
19 | adjustment, a notification of an alteration is
required | ||||||
20 | under Section 506(b), a claim for refund may be filed at | ||||||
21 | any
time before January 1, 1976, but the amount recoverable | ||||||
22 | pursuant to a
claim filed under this Section shall be | ||||||
23 | limited to the amount of any
overpayment resulting under | ||||||
24 | this Act from recomputation of the
taxpayer's base income | ||||||
25 | for the taxable year after giving effect to the
federal | ||||||
26 | alteration resulting from the tentative carryback |
| |||||||
| |||||||
1 | adjustment
irrespective of any limitation imposed in | ||||||
2 | paragraph (l) of this
subsection.
| ||||||
3 | (c) Extension by agreement. Where, before the expiration of | ||||||
4 | the
time prescribed in this section for the filing of a claim | ||||||
5 | for refund,
both the Department and the claimant shall have | ||||||
6 | consented in writing to
its filing after such time, such claim | ||||||
7 | may be filed at any time prior to
the expiration of the period | ||||||
8 | agreed upon. The period so agreed upon may
be extended by | ||||||
9 | subsequent agreements in writing made before the
expiration of | ||||||
10 | the period previously agreed upon.
In the case of a taxpayer | ||||||
11 | who is a partnership, Subchapter S corporation, or
trust and | ||||||
12 | who enters into an agreement with the Department pursuant to | ||||||
13 | this
subsection on or after January 1, 2003, a claim for refund | ||||||
14 | may be filed by issued to the
partners, shareholders, or | ||||||
15 | beneficiaries of the taxpayer at any time prior to
the | ||||||
16 | expiration of the period agreed upon. Any refund
allowed | ||||||
17 | pursuant to the claim, however, shall be limited to the amount | ||||||
18 | of any
overpayment
of tax due under this Act that results from | ||||||
19 | recomputation of items of income,
deduction, credits, or other | ||||||
20 | amounts of the taxpayer that are taken into
account by the | ||||||
21 | partner, shareholder, or beneficiary in computing its | ||||||
22 | liability
under this Act.
| ||||||
23 | (d) Limit on amount of credit or refund.
| ||||||
24 | (1) Limit where claim filed within 3-year period. If | ||||||
25 | the claim was
filed by the claimant during the 3-year | ||||||
26 | period prescribed in subsection
(a), the amount of the |
| |||||||
| |||||||
1 | credit or refund shall not exceed the portion of
the tax | ||||||
2 | paid within the period, immediately preceding the filing of | ||||||
3 | the
claim, equal to 3 years plus the period of any | ||||||
4 | extension of time for
filing the return.
| ||||||
5 | (2) Limit where claim not filed within 3-year period. | ||||||
6 | If the claim
was not filed within such 3-year period, the | ||||||
7 | amount of the credit or
refund shall not exceed the portion | ||||||
8 | of the tax paid during the one year
immediately preceding | ||||||
9 | the filing of the claim.
| ||||||
10 | (e) Time return deemed filed. For purposes of this section | ||||||
11 | a tax
return filed before the last day prescribed by law for | ||||||
12 | the filing of
such return (including any extensions thereof) | ||||||
13 | shall be deemed to have
been filed on such last day.
| ||||||
14 | (f) No claim for refund or credit based on the taxpayer's | ||||||
15 | taking a credit for
estimated tax payments as provided by | ||||||
16 | Section 601(b)(2) or for any amount
paid by a taxpayer pursuant | ||||||
17 | to Section 602(a) or for any amount of credit for
tax withheld | ||||||
18 | pursuant to Article 7 may be filed unless a return was filed | ||||||
19 | for the tax year not more than 3
years after the due date, as | ||||||
20 | provided by Section 505, of the return which
was required to be | ||||||
21 | filed relative to the taxable year for which the
payments were | ||||||
22 | made or for which the tax was withheld. The changes in
this | ||||||
23 | subsection (f) made by this
amendatory Act of 1987 shall apply | ||||||
24 | to all taxable years ending on or after
December 31, 1969.
| ||||||
25 | (g) Special Period of Limitation with Respect to Net Loss | ||||||
26 | Carrybacks.
If the claim for refund relates to an overpayment |
| |||||||
| |||||||
1 | attributable to a net
loss carryback as provided by Section | ||||||
2 | 207, in lieu of the 3 year period of
limitation prescribed in | ||||||
3 | subsection (a), the period shall be that period
which ends 3 | ||||||
4 | years after the time prescribed by law for filing the return
| ||||||
5 | (including extensions thereof) for the taxable year of the net | ||||||
6 | loss which
results in such carryback (or, on and after August | ||||||
7 | 13, 1999, with respect to a change in the
carryover of
an | ||||||
8 | Article 2 credit to a taxable year resulting from the carryback | ||||||
9 | of a Section
207 loss incurred in a taxable year beginning on | ||||||
10 | or after January 1, 2000, the
period shall be that period
that | ||||||
11 | ends 3 years after the time prescribed by law for filing the | ||||||
12 | return
(including extensions of that time) for that subsequent | ||||||
13 | taxable year),
or the period prescribed in subsection (c) in
| ||||||
14 | respect of such taxable year, whichever expires later. In the | ||||||
15 | case of such
a claim, the amount of the refund may exceed the | ||||||
16 | portion of the tax paid
within the period provided in | ||||||
17 | subsection (d) to the extent of the amount of
the overpayment | ||||||
18 | attributable to such carryback.
On and after August 13, 1999, | ||||||
19 | if the claim for refund relates to an overpayment attributable | ||||||
20 | to
the
carryover
of an Article 2 credit, or of a Section 207 | ||||||
21 | loss, earned, incurred (in a
taxable year beginning on or after | ||||||
22 | January 1, 2000), or used in
a
year for which a notification of | ||||||
23 | a change affecting federal taxable income must
be filed under | ||||||
24 | subsection (b) of Section 506, the claim may be filed within | ||||||
25 | the
period
prescribed in paragraph (1) of subsection (b) in | ||||||
26 | respect of the year for which
the
notification is required. In |
| |||||||
| |||||||
1 | the case of such a claim, the amount of the
refund may exceed | ||||||
2 | the portion of the tax paid within the period provided in
| ||||||
3 | subsection (d) to the extent of the amount of the overpayment | ||||||
4 | attributable to
the recomputation of the taxpayer's Article 2 | ||||||
5 | credits, or Section 207 loss,
earned, incurred, or used in the | ||||||
6 | taxable year for which the notification is
given.
| ||||||
7 | (h) Claim for refund based on net loss. On and after August | ||||||
8 | 23, 2002, no claim for refund shall
be allowed to the extent | ||||||
9 | the refund is the result of an amount of net loss
incurred in | ||||||
10 | any taxable year ending prior to December 31, 2002
under | ||||||
11 | Section 207 of this Act that was not reported to the Department
| ||||||
12 | within 3 years of the due date (including extensions) of the | ||||||
13 | return for the
loss year on either the original return filed by | ||||||
14 | the taxpayer or on amended
return or to the extent that the | ||||||
15 | refund is the result of an amount of net loss incurred in any | ||||||
16 | taxable year under Section 207 for which no return was filed | ||||||
17 | within 3 years of the due date (including extensions) of the | ||||||
18 | return for the loss year.
| ||||||
19 | (Source: P.A. 94-836, eff. 6-6-06; 95-233, eff. 8-16-07.)
| ||||||
20 | (35 ILCS 5/1002) (from Ch. 120, par. 10-1002)
| ||||||
21 | Sec. 1002. Failure to Pay Tax.
| ||||||
22 | (a) Negligence. If any part of a deficiency is due to | ||||||
23 | negligence or
intentional disregard of rules and regulations | ||||||
24 | (but without intent to
defraud) there shall be added to the tax | ||||||
25 | as a penalty the amount prescribed
by Section 3-5 of the |
| |||||||
| |||||||
1 | Uniform Penalty and Interest Act.
| ||||||
2 | (b) Fraud. If any part of a deficiency is due to fraud, | ||||||
3 | there
shall be added to the tax as a penalty the amount | ||||||
4 | prescribed
by Section 3-6 of the Uniform Penalty and Interest | ||||||
5 | Act.
| ||||||
6 | (c) Nonwillful failure to pay withholding tax. If any | ||||||
7 | employer, without
intent to evade or defeat any tax imposed by | ||||||
8 | this Act or the payment
thereof, shall fail to make a return | ||||||
9 | and pay a tax withheld by him at the
time required by or under | ||||||
10 | the provisions of this Act, such employer shall
be liable for | ||||||
11 | such taxes and shall pay the same together with the interest
| ||||||
12 | and the penalty provided by Sections 3-2 and 3-3, respectively, | ||||||
13 | of the
Uniform Penalty and Interest Act and such interest and | ||||||
14 | penalty shall not be
charged to or collected from the employee | ||||||
15 | by the employer.
| ||||||
16 | (d) Willful failure to collect and pay over tax. Any person
| ||||||
17 | required to collect, truthfully account for, and pay over the | ||||||
18 | tax
imposed by this Act who willfully fails to collect such tax | ||||||
19 | or
truthfully account for and pay over such tax or willfully | ||||||
20 | attempts in
any manner to evade or defeat the tax or the | ||||||
21 | payment thereof, shall, in
addition to other penalties provided | ||||||
22 | by law, be liable for the penalty
imposed by Section 3-7 of the | ||||||
23 | Uniform Penalty and Interest Act.
| ||||||
24 | (e) Penalties assessable.
| ||||||
25 | (1) In general. Except as otherwise provided in this | ||||||
26 | Act or the Uniform Penalty and Interest Act , the
penalties |
| |||||||
| |||||||
1 | provided by this Act or by the Uniform Penalty and Interest | ||||||
2 | Act shall be paid upon notice and demand and
shall be | ||||||
3 | assessed, collected, and paid in the same manner as taxes | ||||||
4 | and any
reference in this Act to the tax imposed by this | ||||||
5 | Act shall be deemed also
to refer to penalties provided by | ||||||
6 | this Act or by the Uniform Penalty and Interest Act .
| ||||||
7 | (2) Procedure for assessing certain penalties. For the | ||||||
8 | purposes of
Article 9 any penalty under Section 804(a) or | ||||||
9 | Section 1001 shall be deemed
assessed upon the filing of | ||||||
10 | the return for the taxable year.
| ||||||
11 | (3) Procedure for assessing the penalty for failure to | ||||||
12 | file withholding
returns or annual transmittal forms for | ||||||
13 | wage and tax statements. The penalty
imposed by Section | ||||||
14 | 1004 will be asserted by the Department's issuance of
a | ||||||
15 | notice of deficiency. If taxpayer files a timely protest, | ||||||
16 | the procedures
of Section 908 will be followed. If taxpayer | ||||||
17 | does not file a timely protest,
the notice of deficiency | ||||||
18 | will constitute an assessment pursuant to subsection
(c) of | ||||||
19 | Section 904.
| ||||||
20 | (4) Assessment of penalty under Section 1005(a) 1005 | ||||||
21 | (b) . The penalty imposed under Section 1005(a) 1005(b) | ||||||
22 | shall be deemed assessed upon the assessment of the tax to | ||||||
23 | which such penalty relates and shall be collected and paid | ||||||
24 | on notice and demand in the same manner as the tax.
| ||||||
25 | (f) Determination of deficiency. For purposes of | ||||||
26 | subsections (a)
and (b), the amount shown as the tax by the |
| |||||||
| |||||||
1 | taxpayer upon his return
shall be taken into account in | ||||||
2 | determining the amount of the deficiency
only if such return | ||||||
3 | was filed on or before the last day prescribed by
law for the | ||||||
4 | filing of such return, including any extensions of the time
for | ||||||
5 | such filing.
| ||||||
6 | (Source: P.A. 93-840, eff. 7-30-04.)
| ||||||
7 | (35 ILCS 5/1101) (from Ch. 120, par. 11-1101)
| ||||||
8 | Sec. 1101. Lien for Tax. | ||||||
9 | (a) If any person liable to pay any tax
neglects or refuses | ||||||
10 | to pay the same after demand, the amount (including any
| ||||||
11 | interest, additional amount,
addition to tax, or assessable | ||||||
12 | penalty, together with any costs that may
accrue in addition | ||||||
13 | thereto) shall be a lien in favor of the State of
Illinois upon | ||||||
14 | all property and rights to property, whether real or
personal, | ||||||
15 | belonging to such person.
| ||||||
16 | (b) Unless another date is specifically fixed by law, the | ||||||
17 | lien imposed
by subsection (a) of this Section shall arise at | ||||||
18 | the time the assessment is
made and shall continue until the | ||||||
19 | liability for the amount so assessed (or
a judgment against the | ||||||
20 | taxpayer arising out of such liability) is satisfied
or becomes | ||||||
21 | unenforceable by reason of lapse of time.
| ||||||
22 | (c) Deficiency procedure. If the lien arises from an | ||||||
23 | assessment
pursuant to a notice of deficiency, such lien shall | ||||||
24 | not attach and the
notice referred to in this section shall not | ||||||
25 | be filed until all proceedings
in court for review of such |
| |||||||
| |||||||
1 | assessment have terminated or the time for the
taking thereof | ||||||
2 | has expired without such proceedings being instituted.
| ||||||
3 | (d) Notice of lien. The lien created by assessment shall
| ||||||
4 | terminate unless a notice of lien is filed, as provided in | ||||||
5 | section 1103 hereof,
within 3 years from the date all | ||||||
6 | proceedings in court for the review of
such assessment have | ||||||
7 | terminated or the time for the taking thereof has
expired | ||||||
8 | without such proceedings being instituted. Where the lien | ||||||
9 | results
from the filing of a return without payment of the tax | ||||||
10 | or penalty shown
therein to be due, the lien shall terminate | ||||||
11 | unless a notice of lien is
filed within 3 years from the date | ||||||
12 | such return was filed with the
Department.
For the purposes of | ||||||
13 | this subsection (d) (c) , a tax return filed before the last
day | ||||||
14 | prescribed by law, including any extension thereof, shall be | ||||||
15 | deemed to
have been filed on such last day. The time limitation | ||||||
16 | period on the Department's right to file a notice of lien shall | ||||||
17 | not run during any period of time in which the order of any | ||||||
18 | court has the effect of enjoining or restraining the Department | ||||||
19 | from filing such notice of lien.
| ||||||
20 | (Source: P.A. 86-905.)
| ||||||
21 | (35 ILCS 5/1405.4)
| ||||||
22 | Sec. 1405.4. Tax refund inquiries; response. The | ||||||
23 | Department of Revenue
shall establish procedures to inform | ||||||
24 | taxpayers of the status of their refunds and shall provide a | ||||||
25 | response to respond in writing to each inquiry concerning |
| |||||||
| |||||||
1 | refunds under this Act
within 10 days after receiving the | ||||||
2 | inquiry. The response shall include the
date the inquiry was | ||||||
3 | received, the file number assigned to the inquiry, and the
name | ||||||
4 | and telephone number of a person within the Department of | ||||||
5 | Revenue whom the
taxpayer may contact with further inquiries.
| ||||||
6 | (Source: P.A. 89-89, eff. 6-30-95.)
| ||||||
7 | Section 23. The Cigarette Use Tax Act is amended by | ||||||
8 | changing Section 1 as follows:
| ||||||
9 | (35 ILCS 135/1) (from Ch. 120, par. 453.31)
| ||||||
10 | Sec. 1. For the purpose of this Act, unless otherwise | ||||||
11 | required by the
context:
| ||||||
12 | "Use" means the exercise by any person of any right or | ||||||
13 | power over
cigarettes incident to the ownership or possession | ||||||
14 | thereof, other than the
making of a sale thereof in the course | ||||||
15 | of engaging in a business of selling
cigarettes and shall | ||||||
16 | include the keeping or retention of cigarettes for use , except | ||||||
17 | "use" shall not include the use of cigarettes by a | ||||||
18 | not-for-profit research institution conducting tests | ||||||
19 | concerning the health effects of tobacco products, provided the | ||||||
20 | cigarettes are not offered for resale .
| ||||||
21 | "Cigarette" means any roll for smoking made wholly or in | ||||||
22 | part of tobacco
irrespective of size or shape and whether or | ||||||
23 | not such tobacco is flavored,
adulterated or mixed with any | ||||||
24 | other ingredient, and the wrapper or cover of
which is made of |
| |||||||
| |||||||
1 | paper or any other substance or material except tobacco.
| ||||||
2 | "Person" means any natural individual, firm, partnership, | ||||||
3 | association,
joint stock company, joint adventure, public or | ||||||
4 | private corporation,
however formed, limited liability | ||||||
5 | company, or a receiver, executor,
administrator, trustee, | ||||||
6 | guardian or other representative appointed by order of
any | ||||||
7 | court.
| ||||||
8 | "Department" means the Department of Revenue.
| ||||||
9 | "Sale" means any transfer, exchange or barter in any manner | ||||||
10 | or by any
means whatsoever for a consideration, and includes | ||||||
11 | and means all sales made
by any person.
| ||||||
12 | "Original Package" means the individual packet, box or | ||||||
13 | other container
whatsoever used to contain and to convey | ||||||
14 | cigarettes to the consumer.
| ||||||
15 | "Distributor" means any and each of the following:
| ||||||
16 | a. Any person engaged in the business of selling | ||||||
17 | cigarettes in this
State who brings or causes to be brought | ||||||
18 | into this State from without this
State any original | ||||||
19 | packages of cigarettes, on which original packages there
is | ||||||
20 | no authorized evidence underneath a sealed transparent | ||||||
21 | wrapper showing
that the tax liability imposed by this Act | ||||||
22 | has been paid or assumed by the
out-of-State seller of such | ||||||
23 | cigarettes, for sale in the course of such
business.
| ||||||
24 | b. Any person who makes, manufactures or fabricates | ||||||
25 | cigarettes in this
State for sale, except a person who | ||||||
26 | makes, manufactures or fabricates
cigarettes for sale to |
| |||||||
| |||||||
1 | residents incarcerated in penal institutions or resident
| ||||||
2 | patients or a State-operated mental health facility.
| ||||||
3 | c. Any person who makes, manufactures or fabricates | ||||||
4 | cigarettes outside
this State, which cigarettes are placed | ||||||
5 | in original packages contained in
sealed transparent | ||||||
6 | wrappers, for delivery or shipment into this State, and
who | ||||||
7 | elects to qualify and is accepted by the Department as a | ||||||
8 | distributor
under Section 7 of this Act.
| ||||||
9 | "Distributor" does not include any person who transfers | ||||||
10 | cigarettes to a not-for-profit
research institution that | ||||||
11 | conducts tests concerning the
health effects of tobacco | ||||||
12 | products and who does not offer
the cigarettes for resale.
| ||||||
13 | "Distributor maintaining a place of business in this | ||||||
14 | State", or any like
term, means any distributor having or | ||||||
15 | maintaining within this State,
directly or by a subsidiary, an | ||||||
16 | office, distribution house, sales house,
warehouse or other | ||||||
17 | place of business, or any agent operating within this
State | ||||||
18 | under the authority of the distributor or its subsidiary,
| ||||||
19 | irrespective of whether such place of business or agent is | ||||||
20 | located here
permanently or temporarily, or whether such | ||||||
21 | distributor or subsidiary is
licensed to transact business | ||||||
22 | within this State.
| ||||||
23 | "Business" means any trade, occupation, activity or | ||||||
24 | enterprise engaged
in or conducted in this State for the | ||||||
25 | purpose of selling cigarettes.
| ||||||
26 | "Prior Continuous Compliance Taxpayer" means any person |
| |||||||
| |||||||
1 | who is licensed
under this Act and who, having been a licensee | ||||||
2 | for a continuous period of 5
years, is determined by the | ||||||
3 | Department not to have been either delinquent
or deficient in | ||||||
4 | the payment of tax liability during that period or
otherwise in | ||||||
5 | violation of this Act. Also, any taxpayer who has, as
verified | ||||||
6 | by the Department, continuously complied with the
condition of | ||||||
7 | his bond or other security under provisions of this Act of a
| ||||||
8 | period of 5 consecutive years shall be considered to be a | ||||||
9 | "prior
continuous compliance taxpayer". In calculating the | ||||||
10 | consecutive period of
time described herein for qualification | ||||||
11 | as a "prior continuous compliance
taxpayer", a consecutive | ||||||
12 | period of time of qualifying compliance
immediately prior to | ||||||
13 | the effective date of this amendatory Act of 1987 shall be
| ||||||
14 | credited to any licensee who became licensed on or before the | ||||||
15 | effective date
of this amendatory Act of 1987.
| ||||||
16 | (Source: P.A. 95-462, eff. 8-27-07.)
| ||||||
17 | Section 25. The Motor Fuel Tax Law is amended by changing | ||||||
18 | Sections 1.2, 1.14, 1.22, 3, 3a, 5, 5a, 8, 13, 13a.4, and 13a.5 | ||||||
19 | and by adding Section 17a as follows:
| ||||||
20 | (35 ILCS 505/1.2) (from Ch. 120, par. 417.2)
| ||||||
21 | Sec. 1.2. Distributor. "Distributor" means a person who | ||||||
22 | either (i)
produces,
refines, blends, compounds or | ||||||
23 | manufactures motor fuel in this State, or (ii)
transports motor | ||||||
24 | fuel into this State, or (iii) exports motor fuel out of this |
| |||||||
| |||||||
1 | State; or (iv) engages in the distribution of
motor fuel | ||||||
2 | primarily by tank car or tank truck, or both, and who operates | ||||||
3 | an
Illinois bulk plant where he or she has active bulk storage | ||||||
4 | capacity of not
less than 30,000 gallons for gasoline as | ||||||
5 | defined in item (A) of Section 5 of
this Law.
| ||||||
6 | "Distributor" does not, however, include a person who | ||||||
7 | receives or
transports into this State and sells or uses motor | ||||||
8 | fuel under such
circumstances as preclude the collection of the | ||||||
9 | tax herein imposed, by
reason of the provisions of the | ||||||
10 | constitution and statutes of the United
States. However, a | ||||||
11 | person operating a motor vehicle into the State, may
transport | ||||||
12 | motor fuel in the ordinary fuel tank attached to the motor
| ||||||
13 | vehicle for the operation of the motor vehicle, without being | ||||||
14 | considered
a distributor. Any railroad licensed as a bulk user | ||||||
15 | and registered under
Section 18c-7201 of the Illinois Vehicle | ||||||
16 | Code may deliver special fuel directly
into the fuel supply | ||||||
17 | tank of a locomotive owned, operated, or controlled by any
| ||||||
18 | other railroad registered under Section 18c-7201 of the | ||||||
19 | Illinois Vehicle Code
without being considered a distributor.
| ||||||
20 | (Source: P.A. 91-173, eff. 1-1-00; 91-198, eff. 7-20-99; 92-16, | ||||||
21 | eff.
6-28-01.)
| ||||||
22 | (35 ILCS 505/1.14) (from Ch. 120, par. 417.14)
| ||||||
23 | Sec. 1.14. Supplier. "Supplier" means any person other than | ||||||
24 | a licensed
distributor who (i) transports special fuel into | ||||||
25 | this State ; or (ii) exports special fuel out of this State; or |
| |||||||
| |||||||
1 | (iii) engages
in the distribution of special fuel primarily by | ||||||
2 | tank car or tank truck, or
both, and who operates an Illinois | ||||||
3 | bulk plant where he has active bulk storage
capacity of not | ||||||
4 | less than 30,000 gallons for special fuel as defined in Section
| ||||||
5 | 1.13 of this Law.
| ||||||
6 | "Supplier" does not,
however, include a person who receives | ||||||
7 | or transports into this State and
sells or uses special fuel | ||||||
8 | under such circumstances as preclude the
collection of the tax | ||||||
9 | herein imposed, by reason of the provisions of the
Constitution | ||||||
10 | and laws of the United States. However, a person
operating a | ||||||
11 | motor vehicle into the State, may transport special fuel in the
| ||||||
12 | ordinary fuel tank attached to the motor vehicle for the | ||||||
13 | operation of the motor
vehicle without being considered a | ||||||
14 | supplier.
Any railroad licensed as a bulk user and registered | ||||||
15 | under Section 18c-7201 of
the Illinois
Vehicle Code may deliver | ||||||
16 | special fuel directly into the fuel supply tank of a
locomotive
| ||||||
17 | owned, operated, or controlled by any other railroad registered | ||||||
18 | under Section
18c-7201 of
the Illinois Vehicle Code without | ||||||
19 | being considered a supplier.
| ||||||
20 | (Source: P.A. 91-173, eff. 1-1-00; 91-198, eff. 7-20-99; 92-16, | ||||||
21 | eff.
6-28-01.)
| ||||||
22 | (35 ILCS 505/1.22)
| ||||||
23 | Sec. 1.22. "Jurisdiction" means a state of the United | ||||||
24 | States, the District
of Columbia, a state of the United Mexican | ||||||
25 | States, or a province or Territory of Canada.
|
| |||||||
| |||||||
1 | (Source: P.A. 88-480.)
| ||||||
2 | (35 ILCS 505/3) (from Ch. 120, par. 419)
| ||||||
3 | Sec. 3.
No person shall act as a distributor of motor fuel | ||||||
4 | within this
State without first securing a license to act as a | ||||||
5 | distributor of motor
fuel from the Department. Application for | ||||||
6 | such license shall be made to the
Department upon blanks | ||||||
7 | furnished by it. The application shall be signed
and verified, | ||||||
8 | and shall contain such information as the Department deems
| ||||||
9 | necessary.
A blender shall, in addition to securing a | ||||||
10 | distributor's license, make
application to the Department for a | ||||||
11 | blender's permit, setting forth in the
application such | ||||||
12 | information as the Department deems necessary. The applicant
| ||||||
13 | for a distributor's license shall also file with the Department | ||||||
14 | a bond on a
form to be approved by and with a surety or sureties | ||||||
15 | satisfactory to the
Department conditioned upon such applicant | ||||||
16 | paying to the State of Illinois
all monies becoming due by | ||||||
17 | reason of the sale , export, or use of motor fuel by the
| ||||||
18 | applicant, together with all penalties and interest thereon. | ||||||
19 | The Department
shall fix the penalty of such bond in each case | ||||||
20 | taking into consideration
the amount of motor fuel expected to | ||||||
21 | be sold, distributed , exported, and used by such
applicant and | ||||||
22 | the penalty fixed by the Department shall be such, as in its
| ||||||
23 | opinion, will protect the State of Illinois against failure to | ||||||
24 | pay the
amount hereinafter provided on motor fuel sold, | ||||||
25 | distributed , exported, and used, but
the amount of the penalty |
| |||||||
| |||||||
1 | fixed by the Department shall not exceed
twice
the monthly | ||||||
2 | amount
that would be collectable as a tax in the event of a | ||||||
3 | sale
on all the motor fuel sold, distributed, exported, and | ||||||
4 | used by the
distributor inclusive of tax-free sales, exports, | ||||||
5 | use, or distribution. Upon receipt of the
application and bond | ||||||
6 | in proper form, the Department shall issue to the
applicant a | ||||||
7 | license to act as a distributor. No person who is in default to
| ||||||
8 | the State for monies due under this Act for the sale, | ||||||
9 | distribution , export, or use
of motor fuel shall receive a | ||||||
10 | license to act
as a distributor.
| ||||||
11 | A license shall not be granted to any person whose | ||||||
12 | principal place
of business is in a state other than Illinois, | ||||||
13 | unless such person is licensed
for motor fuel distribution or | ||||||
14 | export in the state in which the principal place of
business is | ||||||
15 | located
and that such person is not in default to that State | ||||||
16 | for any monies due
for the sale, distribution, export, or use | ||||||
17 | of motor fuel.
| ||||||
18 | (Source: P.A. 90-491, eff. 1-1-98; 91-173, eff. 1-1-00.)
| ||||||
19 | (35 ILCS 505/3a) (from Ch. 120, par. 419a)
| ||||||
20 | Sec. 3a.
No person, other than a licensed distributor, | ||||||
21 | shall act as a
supplier of special fuel within this State | ||||||
22 | without first securing a license
to act as a supplier of | ||||||
23 | special fuel from the Department.
| ||||||
24 | Application for such license shall be made to the | ||||||
25 | Department upon blanks
furnished by it. The application shall |
| |||||||
| |||||||
1 | be signed and verified and shall contain
such
information as | ||||||
2 | the Department deems necessary.
| ||||||
3 | The applicant for a supplier's license shall also file, | ||||||
4 | with the
Department, a bond on a form to be approved by and | ||||||
5 | with a surety or sureties
satisfactory to the Department, | ||||||
6 | conditioned upon such applicant paying to
the State of Illinois | ||||||
7 | all moneys becoming due by reason of the sale or use
of special | ||||||
8 | fuel by the applicant, together with all penalties and interest
| ||||||
9 | thereon. The Department shall fix the penalty of such bond in | ||||||
10 | each case,
taking into consideration the amount of special fuel | ||||||
11 | expected to be sold,
distributed , exported, and used by such | ||||||
12 | applicant, and the penalty fixed by the
Department shall be | ||||||
13 | such, as in its opinion, will protect the State of
Illinois | ||||||
14 | against failure to pay the amount hereinafter provided on | ||||||
15 | special
fuel sold, distributed , exported, and used, but the | ||||||
16 | amount of the penalty fixed by the
Department shall not exceed | ||||||
17 | twice the monthly amount
of tax liability
that would be | ||||||
18 | collectable as a tax in the event of a taxable sale
on all the | ||||||
19 | special fuel sold, distributed, exported, and used by the | ||||||
20 | supplier
inclusive of tax-free sales, use, exports, or | ||||||
21 | distribution.
| ||||||
22 | Upon receipt of the application and bond in proper form, | ||||||
23 | the Department
shall issue to the applicant a license to act as | ||||||
24 | a supplier. No person who
is in default to the State for moneys | ||||||
25 | due under this Act for the sale,
distribution , export, or use | ||||||
26 | of motor fuel shall receive a license to act as a supplier.
|
| |||||||
| |||||||
1 | A license shall not be granted to any person whose | ||||||
2 | principal place of
business is in a state other than Illinois, | ||||||
3 | unless such person is licensed
for motor fuel distribution or | ||||||
4 | export in the State in which the principal place of
business is | ||||||
5 | located
and that other State requires such license and that | ||||||
6 | such person is not in
default to that State for any monies due | ||||||
7 | for the sale, distribution, export, or use
of motor fuel.
| ||||||
8 | (Source: P.A. 90-491, eff. 1-1-98; 91-173, eff. 1-1-00.)
| ||||||
9 | (35 ILCS 505/5) (from Ch. 120, par. 421)
| ||||||
10 | Sec. 5.
Except as hereinafter provided, a person holding a | ||||||
11 | valid unrevoked
license to act as a distributor of motor fuel | ||||||
12 | shall, between the 1st and 20th
days of each calendar month, | ||||||
13 | make return to the Department, showing an itemized
statement of | ||||||
14 | the number of invoiced gallons of motor fuel of the types
| ||||||
15 | specified in this Section which were purchased, acquired , or | ||||||
16 | received , or exported during the
preceding calendar month; the | ||||||
17 | amount of such motor fuel produced, refined,
compounded, | ||||||
18 | manufactured, blended, sold, distributed, exported, and used | ||||||
19 | by the licensed
distributor during the preceding calendar | ||||||
20 | month; the amount of such motor fuel
lost or destroyed during | ||||||
21 | the preceding calendar month; the amount of
such motor fuel on | ||||||
22 | hand at the close of business for such month; and such
other | ||||||
23 | reasonable information as the Department may require. If a
| ||||||
24 | distributor's only activities with respect to motor fuel are | ||||||
25 | either: (1)
production of
alcohol in quantities of less than |
| |||||||
| |||||||
1 | 10,000 proof gallons per year or (2)
blending alcohol in | ||||||
2 | quantities of less than 10,000 proof gallons per year
which | ||||||
3 | such distributor has produced, he shall file returns on an | ||||||
4 | annual
basis with the return for a given year being due by | ||||||
5 | January 20 of the following
year. Distributors whose total | ||||||
6 | production of alcohol (whether blended or
not) exceeds 10,000 | ||||||
7 | proof gallons per year, based on production during the
| ||||||
8 | preceding (calendar) year or as reasonably projected by the | ||||||
9 | Department if
one calendar year's record of production cannot | ||||||
10 | be established, shall file
returns between the 1st and 20th | ||||||
11 | days of each calendar month as hereinabove
provided.
| ||||||
12 | The types of motor fuel referred to in the preceding | ||||||
13 | paragraph are: (A)
All products commonly or commercially known | ||||||
14 | or sold as gasoline (including
casing-head and absorption or | ||||||
15 | natural gasoline), gasohol, motor benzol or motor
benzene | ||||||
16 | regardless of their classification or uses; and (B) all | ||||||
17 | combustible
gases which exist in a gaseous state at 60 degrees | ||||||
18 | Fahrenheit and at 14.7
pounds per square inch absolute | ||||||
19 | including, but not limited to, liquefied
petroleum gases used | ||||||
20 | for highway purposes; and (C) special fuel. Only those
| ||||||
21 | quantities of combustible gases (example (B) above) which are | ||||||
22 | used or sold by
the distributor to be used to propel motor | ||||||
23 | vehicles on the public highways, or which
are delivered into a | ||||||
24 | storage tank that is located at a facility that has
withdrawal | ||||||
25 | facilities which are readily accessible to and are capable of
| ||||||
26 | dispensing combustible gases into the fuel supply tanks of |
| |||||||
| |||||||
1 | motor vehicles,
shall be subject to return. For the purposes of | ||||||
2 | this Act, liquefied petroleum
gases shall mean and include any | ||||||
3 | material having a vapor pressure not exceeding
that allowed for | ||||||
4 | commercial propane composed predominantly of the following
| ||||||
5 | hydrocarbons, either by themselves or as mixtures: Propane, | ||||||
6 | Propylene, Butane
(normal butane or iso-butane) and Butylene | ||||||
7 | (including isomers).
| ||||||
8 | In case of a sale of special fuel to someone other than a | ||||||
9 | licensed
distributor, or a licensed supplier, for a use other | ||||||
10 | than in motor vehicles,
the distributor shall show in
his | ||||||
11 | return the amount of invoiced gallons sold and the name and | ||||||
12 | address of the
purchaser
in addition to any other information | ||||||
13 | the Department may require.
| ||||||
14 | All special fuel sold or used for non-highway purposes must | ||||||
15 | have a dye
added in accordance with Section 4d of this Law.
| ||||||
16 | In case of a tax-free sale, as provided in Section 6, of
| ||||||
17 | motor fuel which the distributor is required by this Section to | ||||||
18 | include in
his return to the Department, the distributor in his | ||||||
19 | return shall show:
(1) If the sale is made to another licensed | ||||||
20 | distributor the amount
sold and the name, address and license | ||||||
21 | number of the purchasing distributor;
(2) if the sale is made | ||||||
22 | to a person where delivery is made outside of this
State the | ||||||
23 | name and address of such purchaser and the point of delivery
| ||||||
24 | together with the date and amount delivered; (3) if the sale is | ||||||
25 | made to the
Federal Government or its instrumentalities the | ||||||
26 | amount sold; (4) if the sale is made to a
municipal corporation |
| |||||||
| |||||||
1 | owning and operating a local transportation
system for public | ||||||
2 | service in this State the name and address of such
purchaser, | ||||||
3 | and the amount sold, as evidenced by official forms of
| ||||||
4 | exemption certificates properly executed and furnished by such | ||||||
5 | purchaser;
(5) if the sale is made to a privately owned public | ||||||
6 | utility owning and
operating 2-axle vehicles designed and used | ||||||
7 | for transporting more than 7
passengers, which vehicles are | ||||||
8 | used as common carriers in general
transportation of | ||||||
9 | passengers, are not devoted to any specialized purpose
and are | ||||||
10 | operated entirely within the territorial limits of a single
| ||||||
11 | municipality or of any group of contiguous municipalities or in | ||||||
12 | a close
radius thereof, and the operations of which are subject | ||||||
13 | to the regulations
of the Illinois Commerce Commission, then | ||||||
14 | the name and address of such
purchaser and the amount sold as | ||||||
15 | evidenced by official forms of
exemption certificates properly | ||||||
16 | executed and furnished by the purchaser;
(6) if the product | ||||||
17 | sold is special fuel and if the sale is made to a
licensed | ||||||
18 | supplier under conditions which qualify the sale for tax | ||||||
19 | exemption
under Section 6 of this Act, the amount sold and the | ||||||
20 | name, address and
license number of the purchaser; and (7) if a | ||||||
21 | sale of special fuel is made
to
someone other than a licensed | ||||||
22 | distributor, or a licensed supplier, for a use other than in | ||||||
23 | motor vehicles, by making a
specific notation thereof on the | ||||||
24 | invoice or sales slip covering such sales and
obtaining such | ||||||
25 | supporting documentation as may be required by the Department.
| ||||||
26 | All special fuel sold or used for non-highway purposes must |
| |||||||
| |||||||
1 | have a dye
added
in accordance with Section 4d of this Law.
| ||||||
2 | A person whose license to act as a distributor of motor | ||||||
3 | fuel has been
revoked shall make a return to the Department | ||||||
4 | covering the period from the
date of the last return to the | ||||||
5 | date of the revocation of the license, which
return shall be | ||||||
6 | delivered to the Department not later than 10 days from the
| ||||||
7 | date of the revocation or termination of the license of such | ||||||
8 | distributor;
the return shall in all other respects be subject | ||||||
9 | to the same provisions
and conditions as returns by | ||||||
10 | distributors licensed under the provisions of
this Act.
| ||||||
11 | The records, waybills and supporting documents kept by | ||||||
12 | railroads and
other common carriers in the regular course of | ||||||
13 | business shall be prima
facie evidence of the contents and | ||||||
14 | receipt of cars or tanks covered by those
records, waybills or | ||||||
15 | supporting documents.
| ||||||
16 | If the Department has reason to believe and does believe | ||||||
17 | that the amount
shown on the return as purchased, acquired, | ||||||
18 | received, exported sold, used, lost
or destroyed is incorrect, | ||||||
19 | or that
an amount of motor fuel of the types required by the | ||||||
20 | second paragraph of
this Section to be reported to the | ||||||
21 | Department
has not been correctly reported the Department shall | ||||||
22 | fix
an amount for
such receipt, sales, export, use, loss or | ||||||
23 | destruction according to its best
judgment and
information, | ||||||
24 | which amount so fixed by the Department shall be prima facie
| ||||||
25 | correct. All returns shall be made on forms prepared and | ||||||
26 | furnished by the
Department, and shall contain such other |
| |||||||
| |||||||
1 | information as the Department may
reasonably require. The | ||||||
2 | return must be accompanied by appropriate
computer-generated | ||||||
3 | magnetic media supporting schedule data in the format
required | ||||||
4 | by the Department, unless, as provided by rule, the Department | ||||||
5 | grants
an exception upon petition of a taxpayer.
All licensed | ||||||
6 | distributors shall report all losses of motor fuel sustained on
| ||||||
7 | account of fire, theft, spillage, spoilage, leakage, or any | ||||||
8 | other provable
cause
, but not including theft, when filing the | ||||||
9 | return for the period during which the loss occurred. The
mere | ||||||
10 | making of the report does not assure the allowance of the loss | ||||||
11 | as a
reduction in tax liability.
Losses of motor fuel as the | ||||||
12 | result of evaporation or shrinkage due to
temperature | ||||||
13 | variations may not exceed 1% of the total
gallons in
storage at | ||||||
14 | the beginning of the month, plus the receipts of gallonage | ||||||
15 | during
the month, minus the gallonage remaining in storage at | ||||||
16 | the end of the month.
Any loss reported that is in excess of 1% | ||||||
17 | shall be subject
to the
tax imposed by Section 2 of this Law.
| ||||||
18 | On and after July 1, 2001, for each 6-month period January | ||||||
19 | through June, net
losses of motor fuel (for each category of | ||||||
20 | motor fuel that is required to be
reported on a return) as the | ||||||
21 | result of evaporation or shrinkage due to
temperature | ||||||
22 | variations may not exceed 1% of the total gallons in storage at | ||||||
23 | the
beginning of each January, plus the receipts of gallonage | ||||||
24 | each January through
June, minus the gallonage remaining in | ||||||
25 | storage at the end of each June. On and
after July 1, 2001, for | ||||||
26 | each 6-month period July through December, net losses
of motor |
| |||||||
| |||||||
1 | fuel (for each category of motor fuel that is required to be | ||||||
2 | reported
on a return) as the result of evaporation or shrinkage | ||||||
3 | due to temperature
variations may not exceed 1% of the total | ||||||
4 | gallons in storage at the beginning
of each July, plus the | ||||||
5 | receipts of gallonage each July through December, minus
the | ||||||
6 | gallonage remaining in storage at the end of each December. Any | ||||||
7 | net loss
reported that is in excess of this amount shall be | ||||||
8 | subject to the tax imposed
by Section 2 of this Law. For | ||||||
9 | purposes of this Section, "net loss" means the
number of | ||||||
10 | gallons gained through temperature variations minus the number | ||||||
11 | of
gallons lost through temperature variations or evaporation | ||||||
12 | for each of the
respective 6-month periods.
| ||||||
13 | (Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
| ||||||
14 | (35 ILCS 505/5a) (from Ch. 120, par. 421a)
| ||||||
15 | Sec. 5a.
A person holding a valid unrevoked license to act | ||||||
16 | as a
supplier of special fuel shall, between the 1st and 20th | ||||||
17 | days of each
calendar month, make return to the Department | ||||||
18 | showing an itemized
statement of the number of invoiced gallons | ||||||
19 | of special fuel
acquired, received, purchased,
sold, exported, | ||||||
20 | or used during the preceding calendar month; the amount of | ||||||
21 | special
fuel sold, distributed, exported, and used by the | ||||||
22 | licensed
supplier during the preceding calendar month; the | ||||||
23 | amount of special fuel
lost or destroyed during the preceding
| ||||||
24 | calendar month; the amount of special fuel on hand at the close | ||||||
25 | of
business for the preceding calendar month; and such other |
| |||||||
| |||||||
1 | reasonable
information as the Department may require.
| ||||||
2 | A person whose license to act as a supplier of special fuel | ||||||
3 | has been
revoked shall make a return to the Department covering | ||||||
4 | the period from
the date of the last return to the date of the | ||||||
5 | revocation of the
license, which return shall be delivered to | ||||||
6 | the Department not later
than 10 days from the date of the | ||||||
7 | revocation or termination of the
license of such supplier. The | ||||||
8 | return shall in all other respects be
subject to the same | ||||||
9 | provisions and conditions as returns by suppliers
licensed | ||||||
10 | under this Act.
| ||||||
11 | The records, waybills and supporting documents kept by | ||||||
12 | railroads and
other common carriers in the regular course of | ||||||
13 | business shall be prima
facie evidence of the contents and | ||||||
14 | receipt of cars or tanks covered by
those records, waybills or | ||||||
15 | supporting documents.
| ||||||
16 | If the Department has reason to believe and does believe | ||||||
17 | that the
amount shown on the return as purchased, acquired, | ||||||
18 | received,
sold, exported, used, or lost is
incorrect, or that | ||||||
19 | an amount of special fuel of the type required by the
1st | ||||||
20 | paragraph of this Section to be reported to the Department by
| ||||||
21 | suppliers has not been correctly reported as
a
purchase, | ||||||
22 | receipt, sale, use, export, or loss the Department shall
fix an | ||||||
23 | amount for such
purchase, receipt, sale, use, export, or loss | ||||||
24 | according to its best
judgment and information,
which amount so | ||||||
25 | fixed by the Department shall be prima facie correct.
All | ||||||
26 | licensed suppliers shall report all losses of special fuel |
| |||||||
| |||||||
1 | sustained on
account of fire, theft, spillage, spoilage, | ||||||
2 | leakage, or any other provable
cause , but not including theft, | ||||||
3 | when filing the return for the period during which the loss | ||||||
4 | occurred.
The mere making of the report does not assure the | ||||||
5 | allowance of the loss as a
reduction in tax liability. Losses | ||||||
6 | of special fuel as the result of evaporation
or shrinkage due | ||||||
7 | to temperature variations may not exceed 1% of the
total | ||||||
8 | gallons in storage at the beginning of the month, plus the | ||||||
9 | receipts of
gallonage during the month, minus the gallonage | ||||||
10 | remaining in storage at the end
of the month.
| ||||||
11 | Any loss reported that is in excess of 1% shall be
subject | ||||||
12 | to the
tax imposed by Section 2 of this Law.
On and after July | ||||||
13 | 1, 2001, for each 6-month period January through June, net
| ||||||
14 | losses of special fuel (for each category of special fuel that | ||||||
15 | is required to
be reported on a return) as the result of | ||||||
16 | evaporation or shrinkage due to
temperature variations may not | ||||||
17 | exceed 1% of the total gallons in storage at the
beginning of | ||||||
18 | each January, plus the receipts of gallonage each January | ||||||
19 | through
June, minus the gallonage remaining in storage at the | ||||||
20 | end of each June. On and
after July 1, 2001, for each 6-month | ||||||
21 | period July through December, net losses
of special fuel (for | ||||||
22 | each category of special fuel that is required to be
reported | ||||||
23 | on a return) as the result of evaporation or shrinkage due to
| ||||||
24 | temperature variations may not exceed 1% of the total gallons | ||||||
25 | in storage at the
beginning of each July, plus the receipts of | ||||||
26 | gallonage each July through
December, minus the gallonage |
| |||||||
| |||||||
1 | remaining in storage at the end of each December.
Any net loss | ||||||
2 | reported that is in excess of this amount shall be subject to | ||||||
3 | the
tax imposed by Section 2 of this Law. For purposes of this | ||||||
4 | Section, "net
loss" means the number of gallons gained through | ||||||
5 | temperature variations minus
the number of gallons lost through | ||||||
6 | temperature variations or evaporation for
each of the | ||||||
7 | respective 6-month periods.
| ||||||
8 | In case of a sale of special fuel to someone other than a | ||||||
9 | licensed
distributor or licensed supplier
for a use other than | ||||||
10 | in motor vehicles, the supplier shall show in his
return the | ||||||
11 | amount of invoiced gallons sold and the name and address of the
| ||||||
12 | purchaser
in addition to any other information the Department | ||||||
13 | may require.
| ||||||
14 | All special fuel sold or used for non-highway purposes must | ||||||
15 | have a dye
added in accordance with Section 4d of this Law.
| ||||||
16 | All returns shall be made on forms prepared and furnished | ||||||
17 | by the
Department and shall contain such other information as | ||||||
18 | the Department
may reasonably require.
The return must be | ||||||
19 | accompanied by appropriate computer-generated magnetic
media | ||||||
20 | supporting schedule data in the format required by the | ||||||
21 | Department,
unless, as provided by rule, the
Department grants | ||||||
22 | an exception upon petition of a taxpayer.
| ||||||
23 | In case of a tax-free sale, as provided in Section 6a, of | ||||||
24 | special
fuel which the supplier is required by this Section to | ||||||
25 | include in his
return to the Department, the supplier in his | ||||||
26 | return shall show: (1) If
the sale of special fuel is made to |
| |||||||
| |||||||
1 | the Federal Government or its
instrumentalities; (2) if the | ||||||
2 | sale of special fuel is made to a
municipal corporation owning | ||||||
3 | and operating a local transportation system
for public service | ||||||
4 | in this State, the name and address of such purchaser
and the | ||||||
5 | amount sold, as evidenced by official forms of exemption
| ||||||
6 | certificates properly executed and furnished by such | ||||||
7 | purchaser; (3) if
the sale of special fuel is made to a | ||||||
8 | privately owned public utility
owning and operating 2-axle | ||||||
9 | vehicles designed and used for transporting
more than 7 | ||||||
10 | passengers, which vehicles are used as common carriers in
| ||||||
11 | general transportation of passengers, are not devoted to any | ||||||
12 | specialized
purpose and are operated entirely within the | ||||||
13 | territorial limits of a
single municipality or of any group of | ||||||
14 | contiguous municipalities or in a
close radius thereof, and the | ||||||
15 | operations of which are subject to the
regulations of the | ||||||
16 | Illinois Commerce Commission, then the name and
address of such | ||||||
17 | purchaser and the amount sold, as evidenced by official
forms | ||||||
18 | of exemption certificates properly executed and furnished by | ||||||
19 | such
purchaser; (4) if the product sold is special fuel and if | ||||||
20 | the sale
is made to a licensed supplier or to a licensed | ||||||
21 | distributor under
conditions which qualify the sale for tax | ||||||
22 | exemption under Section 6a of
this Act, the amount sold and the | ||||||
23 | name, address and license number of
such purchaser; (5) if a | ||||||
24 | sale of special fuel is made to a person where
delivery is made | ||||||
25 | outside of this State, the name and address of such
purchaser | ||||||
26 | and the point of delivery together with the date and amount of
|
| |||||||
| |||||||
1 | invoiced gallons delivered; and (6) if a sale of special fuel | ||||||
2 | is made to
someone other than a licensed distributor or a | ||||||
3 | licensed supplier, for a use
other than in motor vehicles, by | ||||||
4 | making a
specific notation thereof on the invoice or sales slip | ||||||
5 | covering that sale
and obtaining such supporting documentation | ||||||
6 | as may be required by the
Department.
| ||||||
7 | All special fuel sold or used for non-highway purposes must | ||||||
8 | have a dye
added in accordance with Section 4d of this Law.
| ||||||
9 | (Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
| ||||||
10 | (35 ILCS 505/8) (from Ch. 120, par. 424)
| ||||||
11 | Sec. 8. Except as provided in Section 8a, subdivision
| ||||||
12 | (h)(1) of Section 12a, Section 13a.6, and items
13, 14, 15, and | ||||||
13 | 16 of Section 15, all money received by the Department under
| ||||||
14 | this Act, including payments made to the Department by
member | ||||||
15 | jurisdictions participating in the International Fuel Tax | ||||||
16 | Agreement,
shall be deposited in a special fund in the State | ||||||
17 | treasury, to be known as the
"Motor Fuel Tax Fund", and shall | ||||||
18 | be used as follows:
| ||||||
19 | (a) 2 1/2 cents per gallon of the tax collected on special | ||||||
20 | fuel under
paragraph (b) of Section 2 and Section 13a of this | ||||||
21 | Act shall be transferred
to the State Construction Account Fund | ||||||
22 | in the State Treasury;
| ||||||
23 | (b) $420,000 shall be transferred each month to the State | ||||||
24 | Boating Act
Fund to be used by the Department of Natural | ||||||
25 | Resources for the purposes
specified in Article X of the Boat |
| |||||||
| |||||||
1 | Registration and Safety Act;
| ||||||
2 | (c) $2,250,000 shall be transferred each month to the Grade | ||||||
3 | Crossing
Protection Fund to be used as follows: not less than | ||||||
4 | $6,000,000 each fiscal
year shall be used for the construction | ||||||
5 | or reconstruction of rail highway grade
separation structures; | ||||||
6 | $2,250,000 in fiscal year 2004 and each fiscal
year
thereafter | ||||||
7 | shall be transferred to the Transportation
Regulatory Fund and | ||||||
8 | shall be accounted for as part of the rail carrier
portion of | ||||||
9 | such funds and shall be used to pay the cost of administration
| ||||||
10 | of the Illinois Commerce Commission's railroad safety program | ||||||
11 | in connection
with its duties under subsection (3) of Section | ||||||
12 | 18c-7401 of the Illinois
Vehicle Code, with the remainder to be | ||||||
13 | used by the Department of Transportation
upon order of the | ||||||
14 | Illinois Commerce Commission, to pay that part of the
cost | ||||||
15 | apportioned by such Commission to the State to cover the | ||||||
16 | interest
of the public in the use of highways, roads, streets, | ||||||
17 | or
pedestrian walkways in the
county highway system, township | ||||||
18 | and district road system, or municipal
street system as defined | ||||||
19 | in the Illinois Highway Code, as the same may
from time to time | ||||||
20 | be amended, for separation of grades, for installation,
| ||||||
21 | construction or reconstruction of crossing protection or | ||||||
22 | reconstruction,
alteration, relocation including construction | ||||||
23 | or improvement of any
existing highway necessary for access to | ||||||
24 | property or improvement of any
grade crossing including the | ||||||
25 | necessary highway approaches thereto of any
railroad across the | ||||||
26 | highway or public road, or for the installation,
construction, |
| |||||||
| |||||||
1 | reconstruction, or maintenance of a pedestrian walkway over or
| ||||||
2 | under a railroad right-of-way, as provided for in and in
| ||||||
3 | accordance with Section 18c-7401 of the Illinois Vehicle Code.
| ||||||
4 | The Commission shall not order more than $2,000,000 per year in | ||||||
5 | Grade
Crossing Protection Fund moneys for pedestrian walkways.
| ||||||
6 | In entering orders for projects for which payments from the | ||||||
7 | Grade Crossing
Protection Fund will be made, the Commission | ||||||
8 | shall account for expenditures
authorized by the orders on a | ||||||
9 | cash rather than an accrual basis. For purposes
of this | ||||||
10 | requirement an "accrual basis" assumes that the total cost of | ||||||
11 | the
project is expended in the fiscal year in which the order | ||||||
12 | is entered, while a
"cash basis" allocates the cost of the | ||||||
13 | project among fiscal years as
expenditures are actually made. | ||||||
14 | To meet the requirements of this subsection,
the Illinois | ||||||
15 | Commerce Commission shall develop annual and 5-year project | ||||||
16 | plans
of rail crossing capital improvements that will be paid | ||||||
17 | for with moneys from
the Grade Crossing Protection Fund. The | ||||||
18 | annual project plan shall identify
projects for the succeeding | ||||||
19 | fiscal year and the 5-year project plan shall
identify projects | ||||||
20 | for the 5 directly succeeding fiscal years. The Commission
| ||||||
21 | shall submit the annual and 5-year project plans for this Fund | ||||||
22 | to the Governor,
the President of the Senate, the Senate | ||||||
23 | Minority Leader, the Speaker of the
House of Representatives, | ||||||
24 | and the Minority Leader of the House of
Representatives on
the | ||||||
25 | first Wednesday in April of each year;
| ||||||
26 | (d) of the amount remaining after allocations provided for |
| |||||||
| |||||||
1 | in
subsections (a), (b) and (c), a sufficient amount shall be | ||||||
2 | reserved to
pay all of the following:
| ||||||
3 | (1) the costs of the Department of Revenue in | ||||||
4 | administering this
Act;
| ||||||
5 | (2) the costs of the Department of Transportation in | ||||||
6 | performing its
duties imposed by the Illinois Highway Code | ||||||
7 | for supervising the use of motor
fuel tax funds apportioned | ||||||
8 | to municipalities, counties and road districts;
| ||||||
9 | (3) refunds provided for in Section 13 of this Act , and | ||||||
10 | refunds for overpayment of decal fees paid under Section | ||||||
11 | 13a.4 of this Act, and under the terms
of the International | ||||||
12 | Fuel Tax Agreement referenced in Section 14a;
| ||||||
13 | (4) from October 1, 1985 until June 30, 1994, the | ||||||
14 | administration of the
Vehicle Emissions Inspection Law, | ||||||
15 | which amount shall be certified monthly by
the | ||||||
16 | Environmental Protection Agency to the State Comptroller | ||||||
17 | and shall promptly
be transferred by the State Comptroller | ||||||
18 | and Treasurer from the Motor Fuel Tax
Fund to the Vehicle | ||||||
19 | Inspection Fund, and for the period July 1, 1994 through
| ||||||
20 | June 30, 2000, one-twelfth of $25,000,000 each month, for | ||||||
21 | the period July 1, 2000 through June 30, 2003,
one-twelfth | ||||||
22 | of
$30,000,000
each month,
and $15,000,000 on July 1, 2003, | ||||||
23 | and $15,000,000 on January 1, 2004, and $15,000,000
on
each
| ||||||
24 | July
1 and October 1, or as soon thereafter as may be | ||||||
25 | practical, during the period July 1, 2004 through June 30, | ||||||
26 | 2009,
for the administration of the Vehicle Emissions |
| |||||||
| |||||||
1 | Inspection Law of
2005, to be transferred by the State | ||||||
2 | Comptroller and Treasurer from the Motor
Fuel Tax Fund into | ||||||
3 | the Vehicle Inspection Fund;
| ||||||
4 | (5) amounts ordered paid by the Court of Claims; and
| ||||||
5 | (6) payment of motor fuel use taxes due to member | ||||||
6 | jurisdictions under
the terms of the International Fuel Tax | ||||||
7 | Agreement. The Department shall
certify these amounts to | ||||||
8 | the Comptroller by the 15th day of each month; the
| ||||||
9 | Comptroller shall cause orders to be drawn for such | ||||||
10 | amounts, and the Treasurer
shall administer those amounts | ||||||
11 | on or before the last day of each month;
| ||||||
12 | (e) after allocations for the purposes set forth in | ||||||
13 | subsections
(a), (b), (c) and (d), the remaining amount shall | ||||||
14 | be apportioned as follows:
| ||||||
15 | (1) Until January 1, 2000, 58.4%, and beginning January | ||||||
16 | 1, 2000, 45.6%
shall be deposited as follows:
| ||||||
17 | (A) 37% into the State Construction Account Fund, | ||||||
18 | and
| ||||||
19 | (B) 63% into the Road Fund, $1,250,000 of which | ||||||
20 | shall be reserved each
month for the Department of | ||||||
21 | Transportation to be used in accordance with
the | ||||||
22 | provisions of Sections 6-901 through 6-906 of the | ||||||
23 | Illinois Highway Code;
| ||||||
24 | (2) Until January 1, 2000, 41.6%, and beginning January | ||||||
25 | 1, 2000, 54.4%
shall be transferred to the Department of | ||||||
26 | Transportation to be
distributed as follows:
|
| |||||||
| |||||||
1 | (A) 49.10% to the municipalities of the State,
| ||||||
2 | (B) 16.74% to the counties of the State having | ||||||
3 | 1,000,000 or more inhabitants,
| ||||||
4 | (C) 18.27% to the counties of the State having less | ||||||
5 | than 1,000,000 inhabitants,
| ||||||
6 | (D) 15.89% to the road districts of the State.
| ||||||
7 | As soon as may be after the first day of each month the | ||||||
8 | Department of
Transportation shall allot to each municipality | ||||||
9 | its share of the amount
apportioned to the several | ||||||
10 | municipalities which shall be in proportion
to the population | ||||||
11 | of such municipalities as determined by the last
preceding | ||||||
12 | municipal census if conducted by the Federal Government or
| ||||||
13 | Federal census. If territory is annexed to any municipality | ||||||
14 | subsequent
to the time of the last preceding census the | ||||||
15 | corporate authorities of
such municipality may cause a census | ||||||
16 | to be taken of such annexed
territory and the population so | ||||||
17 | ascertained for such territory shall be
added to the population | ||||||
18 | of the municipality as determined by the last
preceding census | ||||||
19 | for the purpose of determining the allotment for that
| ||||||
20 | municipality. If the population of any municipality was not | ||||||
21 | determined
by the last Federal census preceding any | ||||||
22 | apportionment, the
apportionment to such municipality shall be | ||||||
23 | in accordance with any
census taken by such municipality. Any | ||||||
24 | municipal census used in
accordance with this Section shall be | ||||||
25 | certified to the Department of
Transportation by the clerk of | ||||||
26 | such municipality, and the accuracy
thereof shall be subject to |
| |||||||
| |||||||
1 | approval of the Department which may make
such corrections as | ||||||
2 | it ascertains to be necessary.
| ||||||
3 | As soon as may be after the first day of each month the | ||||||
4 | Department of
Transportation shall allot to each county its | ||||||
5 | share of the amount
apportioned to the several counties of the | ||||||
6 | State as herein provided.
Each allotment to the several | ||||||
7 | counties having less than 1,000,000
inhabitants shall be in | ||||||
8 | proportion to the amount of motor vehicle
license fees received | ||||||
9 | from the residents of such counties, respectively,
during the | ||||||
10 | preceding calendar year. The Secretary of State shall, on or
| ||||||
11 | before April 15 of each year, transmit to the Department of
| ||||||
12 | Transportation a full and complete report showing the amount of | ||||||
13 | motor
vehicle license fees received from the residents of each | ||||||
14 | county,
respectively, during the preceding calendar year. The | ||||||
15 | Department of
Transportation shall, each month, use for | ||||||
16 | allotment purposes the last
such report received from the | ||||||
17 | Secretary of State.
| ||||||
18 | As soon as may be after the first day of each month, the | ||||||
19 | Department
of Transportation shall allot to the several | ||||||
20 | counties their share of the
amount apportioned for the use of | ||||||
21 | road districts. The allotment shall
be apportioned among the | ||||||
22 | several counties in the State in the proportion
which the total | ||||||
23 | mileage of township or district roads in the respective
| ||||||
24 | counties bears to the total mileage of all township and | ||||||
25 | district roads
in the State. Funds allotted to the respective | ||||||
26 | counties for the use of
road districts therein shall be |
| |||||||
| |||||||
1 | allocated to the several road districts
in the county in the | ||||||
2 | proportion which the total mileage of such township
or district | ||||||
3 | roads in the respective road districts bears to the total
| ||||||
4 | mileage of all such township or district roads in the county. | ||||||
5 | After
July 1 of any year, no allocation shall be made for any | ||||||
6 | road district
unless it levied a tax for road and bridge | ||||||
7 | purposes in an amount which
will require the extension of such | ||||||
8 | tax against the taxable property in
any such road district at a | ||||||
9 | rate of not less than either .08% of the value
thereof, based | ||||||
10 | upon the assessment for the year immediately prior to the year
| ||||||
11 | in which such tax was levied and as equalized by the Department | ||||||
12 | of Revenue
or, in DuPage County, an amount equal to or greater | ||||||
13 | than $12,000 per mile of
road under the jurisdiction of the | ||||||
14 | road district, whichever is less. If any
road district has | ||||||
15 | levied a special tax for road purposes
pursuant to Sections | ||||||
16 | 6-601, 6-602 and 6-603 of the Illinois Highway Code, and
such | ||||||
17 | tax was levied in an amount which would require extension at a
| ||||||
18 | rate of not less than .08% of the value of the taxable property | ||||||
19 | thereof,
as equalized or assessed by the Department of Revenue,
| ||||||
20 | or, in DuPage County, an amount equal to or greater than | ||||||
21 | $12,000 per mile of
road under the jurisdiction of the road | ||||||
22 | district, whichever is less,
such levy shall, however, be | ||||||
23 | deemed a proper compliance with this
Section and shall qualify | ||||||
24 | such road district for an allotment under this
Section. If a | ||||||
25 | township has transferred to the road and bridge fund
money | ||||||
26 | which, when added to the amount of any tax levy of the road
|
| |||||||
| |||||||
1 | district would be the equivalent of a tax levy requiring | ||||||
2 | extension at a
rate of at least .08%, or, in DuPage County, an | ||||||
3 | amount equal to or greater
than $12,000 per mile of road under | ||||||
4 | the jurisdiction of the road district,
whichever is less, such | ||||||
5 | transfer, together with any such tax levy,
shall be deemed a | ||||||
6 | proper compliance with this Section and shall qualify
the road | ||||||
7 | district for an allotment under this Section.
| ||||||
8 | In counties in which a property tax extension limitation is | ||||||
9 | imposed
under the Property Tax Extension Limitation Law, road | ||||||
10 | districts may retain
their entitlement to a motor fuel tax | ||||||
11 | allotment if, at the time the property
tax
extension limitation | ||||||
12 | was imposed, the road district was levying a road and
bridge | ||||||
13 | tax at a rate sufficient to entitle it to a motor fuel tax | ||||||
14 | allotment
and continues to levy the maximum allowable amount | ||||||
15 | after the imposition of the
property tax extension limitation. | ||||||
16 | Any road district may in all circumstances
retain its | ||||||
17 | entitlement to a motor fuel tax allotment if it levied a road | ||||||
18 | and
bridge tax in an amount that will require the extension of | ||||||
19 | the tax against the
taxable property in the road district at a | ||||||
20 | rate of not less than 0.08% of the
assessed value of the | ||||||
21 | property, based upon the assessment for the year
immediately | ||||||
22 | preceding the year in which the tax was levied and as equalized | ||||||
23 | by
the Department of Revenue or, in DuPage County, an amount | ||||||
24 | equal to or greater
than $12,000 per mile of road under the | ||||||
25 | jurisdiction of the road district,
whichever is less.
| ||||||
26 | As used in this Section the term "road district" means any |
| |||||||
| |||||||
1 | road
district, including a county unit road district, provided | ||||||
2 | for by the
Illinois Highway Code; and the term "township or | ||||||
3 | district road"
means any road in the township and district road | ||||||
4 | system as defined in the
Illinois Highway Code. For the | ||||||
5 | purposes of this Section, "road
district" also includes park | ||||||
6 | districts, forest preserve districts and
conservation | ||||||
7 | districts organized under Illinois law and "township or
| ||||||
8 | district road" also includes such roads as are maintained by | ||||||
9 | park
districts, forest preserve districts and conservation | ||||||
10 | districts. The
Department of Transportation shall determine | ||||||
11 | the mileage of all township
and district roads for the purposes | ||||||
12 | of making allotments and allocations of
motor fuel tax funds | ||||||
13 | for use in road districts.
| ||||||
14 | Payment of motor fuel tax moneys to municipalities and | ||||||
15 | counties shall
be made as soon as possible after the allotment | ||||||
16 | is made. The treasurer
of the municipality or county may invest | ||||||
17 | these funds until their use is
required and the interest earned | ||||||
18 | by these investments shall be limited
to the same uses as the | ||||||
19 | principal funds.
| ||||||
20 | (Source: P.A. 94-839, eff. 6-6-06; 95-744, eff. 7-18-08.)
| ||||||
21 | (35 ILCS 505/13) (from Ch. 120, par. 429)
| ||||||
22 | Sec. 13. Refund of tax paid. Any person other than a | ||||||
23 | distributor or
supplier, who loses motor
fuel through any cause | ||||||
24 | or uses motor fuel (upon which he has paid the amount
required | ||||||
25 | to be collected under Section 2 of this Act) for any purpose |
| |||||||
| |||||||
1 | other
than operating a motor vehicle upon the public highways | ||||||
2 | or waters, shall be
reimbursed and repaid the amount so paid.
| ||||||
3 | Any person who purchases motor fuel in Illinois and uses | ||||||
4 | that motor fuel
in another state and that other state imposes a | ||||||
5 | tax on the use of such
motor fuel shall be reimbursed and | ||||||
6 | repaid the amount of Illinois tax paid
under Section 2 of this | ||||||
7 | Act on the motor fuel used in such other state.
Reimbursement | ||||||
8 | and repayment shall be made by the Department upon receipt of
| ||||||
9 | adequate proof of taxes directly paid to another state and the | ||||||
10 | amount of motor fuel
used in that state.
| ||||||
11 | Evidence supporting the claim shall include (i) a certified | ||||||
12 | copy of the tax return filed with such other state by the | ||||||
13 | claimant; (ii) a copy of either the cancelled check paying the | ||||||
14 | tax due on such return, or a receipt acknowledging payment of | ||||||
15 | the tax due on such tax return; and (iii) such other | ||||||
16 | information as the Department may reasonably require. Any | ||||||
17 | person who purchases motor fuel use tax decals as required by | ||||||
18 | Section 13a.4 and pays an amount of fees for such decals that | ||||||
19 | exceeds the amount due shall be reimbursed and repaid the | ||||||
20 | amount of the decal fees that are deemed by the department to | ||||||
21 | be in excess of the amount due. | ||||||
22 | Claims for such reimbursement must be made to the | ||||||
23 | Department of Revenue,
duly verified by the claimant (or by the | ||||||
24 | claimant's legal
representative if the claimant has died or | ||||||
25 | become a person under legal
disability), upon forms prescribed | ||||||
26 | by the Department. The claim must state
such facts relating to |
| |||||||
| |||||||
1 | the purchase, importation, manufacture or production
of the | ||||||
2 | motor fuel by the claimant as the Department may deem | ||||||
3 | necessary, and
the time when, and the circumstances of its loss | ||||||
4 | or the specific purpose
for which it was used (as the case may | ||||||
5 | be), together with such other
information as the Department may | ||||||
6 | reasonably require. No claim based upon
idle time shall be | ||||||
7 | allowed. Claims for reimbursement for overpayment of decal fees | ||||||
8 | shall be made to the Department of Revenue, duly verified by | ||||||
9 | the claimant (or by the claimant's legal representative if the | ||||||
10 | claimant has died or become a person under legal disability), | ||||||
11 | upon forms prescribed by the Department. The claim shall state | ||||||
12 | facts relating to the overpayment of decal fees, together with | ||||||
13 | such other information as the Department may reasonably | ||||||
14 | require. Claims for reimbursement of overpayment of decal fees | ||||||
15 | paid on or after January 1, 2009 must be filed not later than 1 | ||||||
16 | year after the date on which the fees were paid by the | ||||||
17 | claimant. If it is determined that the Department should | ||||||
18 | reimburse a claimant for overpayment of decal fees, the | ||||||
19 | Department shall shall first apply the amount of such refund | ||||||
20 | against against any tax or penalty or interest due by the | ||||||
21 | claimant under Section 13a of this Act.
| ||||||
22 | Claims for full reimbursement for taxes paid on or before | ||||||
23 | December 31,
1999 must be filed not later than one year after | ||||||
24 | the date on which
the tax was paid by the claimant.
If, | ||||||
25 | however, a claim for such reimbursement otherwise meeting the
| ||||||
26 | requirements of this Section is filed more than one year but |
| |||||||
| |||||||
1 | less than 2
years after that date, the claimant shall be | ||||||
2 | reimbursed at the rate of 80%
of the amount to which he would | ||||||
3 | have been entitled if his claim had been
timely filed.
| ||||||
4 | Claims for full reimbursement for taxes paid on or after | ||||||
5 | January 1, 2000
must be filed not later than 2 years after the | ||||||
6 | date on which the tax was paid
by the claimant.
| ||||||
7 | The Department may make such investigation of the | ||||||
8 | correctness of the
facts stated in such claims as it deems | ||||||
9 | necessary. When the Department has
approved any such claim, it | ||||||
10 | shall pay to the claimant (or to the claimant's
legal | ||||||
11 | representative, as such if the claimant has died or become a | ||||||
12 | person
under legal disability) the reimbursement provided in
| ||||||
13 | this Section, out of any moneys appropriated to it for that | ||||||
14 | purpose.
| ||||||
15 | Any distributor or supplier who has paid the tax imposed by | ||||||
16 | Section 2
of this Act upon motor fuel lost or used by such | ||||||
17 | distributor or supplier
for any purpose other than operating a | ||||||
18 | motor vehicle upon the public
highways or waters may file a | ||||||
19 | claim for credit or refund to recover the
amount so paid. Such | ||||||
20 | claims shall be filed on forms prescribed by the
Department. | ||||||
21 | Such claims shall be made to the Department, duly verified by | ||||||
22 | the
claimant (or by the claimant's legal representative if
the | ||||||
23 | claimant has died or become a person under legal disability), | ||||||
24 | upon
forms prescribed by the Department. The claim shall state | ||||||
25 | such facts
relating to the purchase, importation, manufacture | ||||||
26 | or production of the
motor fuel by the claimant as the |
| |||||||
| |||||||
1 | Department may deem necessary and the
time when the loss or | ||||||
2 | nontaxable use occurred, and the circumstances of its
loss or | ||||||
3 | the specific purpose for which it was used (as the case may | ||||||
4 | be),
together with such other information as the Department may | ||||||
5 | reasonably
require. Claims must be filed not later than one | ||||||
6 | year after the
date on which the tax was paid by the claimant.
| ||||||
7 | The Department may make such investigation of the | ||||||
8 | correctness of the
facts stated in such claims as it deems | ||||||
9 | necessary. When the Department
approves a claim, the Department | ||||||
10 | shall issue a refund or credit memorandum
as requested by the | ||||||
11 | taxpayer, to the distributor or supplier who made the
payment | ||||||
12 | for which the refund or credit is being given or, if the
| ||||||
13 | distributor or supplier has died or become incompetent, to such
| ||||||
14 | distributor's or supplier's legal representative, as such. The | ||||||
15 | amount of
such credit memorandum shall be credited against any | ||||||
16 | tax due or to become
due under this Act from the distributor or | ||||||
17 | supplier who made the payment
for which credit has been given.
| ||||||
18 | Any credit or refund that is allowed under this Section | ||||||
19 | shall bear
interest at the rate and in the manner specified in | ||||||
20 | the Uniform Penalty
and Interest Act.
| ||||||
21 | In case the distributor or supplier requests and the
| ||||||
22 | Department determines that the claimant is entitled to a
| ||||||
23 | refund, such refund shall be made only from such appropriation | ||||||
24 | as may be
available for that purpose. If it appears unlikely | ||||||
25 | that the amount
appropriated would permit everyone having a | ||||||
26 | claim allowed during the period
covered by such appropriation |
| |||||||
| |||||||
1 | to elect to receive a cash refund, the
Department, by rule or | ||||||
2 | regulation, shall provide for the payment of refunds
in | ||||||
3 | hardship cases and shall define what types of cases qualify as | ||||||
4 | hardship
cases.
| ||||||
5 | In any case in which there has been an erroneous refund of | ||||||
6 | tax or fees payable
under
this Section, a notice of tax | ||||||
7 | liability may be issued at any time within 3
years from the | ||||||
8 | making of that refund, or within 5 years from the making of | ||||||
9 | that
refund if it appears that any part of the refund was | ||||||
10 | induced by fraud or the
misrepresentation of material fact. The | ||||||
11 | amount of any proposed assessment
set forth by the Department | ||||||
12 | shall be limited to the amount of the erroneous
refund.
| ||||||
13 | If no tax is due and no proceeding is pending to determine | ||||||
14 | whether such
distributor or supplier is indebted to the | ||||||
15 | Department for tax,
the credit memorandum so issued may be | ||||||
16 | assigned and set over by the lawful
holder thereof, subject to | ||||||
17 | reasonable rules of the Department, to any other
licensed | ||||||
18 | distributor or supplier who is subject to this Act, and
the | ||||||
19 | amount thereof applied by the Department against any tax due or | ||||||
20 | to
become due under this Act from such assignee.
| ||||||
21 | If the payment for which the distributor's or supplier's
| ||||||
22 | claim is filed is held in the protest fund of the State | ||||||
23 | Treasury during
the pendency of the claim for credit | ||||||
24 | proceedings pursuant to the order of
the court in accordance | ||||||
25 | with Section 2a of the State Officers and Employees
Money | ||||||
26 | Disposition Act and if it is determined by the Department or by |
| |||||||
| |||||||
1 | the
final order of a reviewing court under the Administrative | ||||||
2 | Review Law that
the claimant is entitled to all or a part of | ||||||
3 | the credit claimed, the
claimant, instead of receiving a credit | ||||||
4 | memorandum from the Department,
shall receive a cash refund | ||||||
5 | from the protest fund as provided for in
Section 2a of the | ||||||
6 | State Officers and Employees Money Disposition Act.
| ||||||
7 | If any person ceases to be licensed as a distributor or
| ||||||
8 | supplier while still holding an unused credit memorandum issued | ||||||
9 | under this
Act, such person may, at his election (instead of | ||||||
10 | assigning the credit
memorandum to a licensed distributor or | ||||||
11 | licensed
supplier under this Act), surrender such unused credit | ||||||
12 | memorandum to the
Department and receive a refund of the amount | ||||||
13 | to which such person is entitled.
| ||||||
14 | For claims based upon taxes paid on or before December 31, | ||||||
15 | 2000, a claim based upon the use of undyed diesel fuel shall | ||||||
16 | not be allowed
except (i) if allowed under the following | ||||||
17 | paragraph or (ii) for
undyed diesel fuel used by a commercial | ||||||
18 | vehicle, as that term is defined in
Section 1-111.8 of the | ||||||
19 | Illinois Vehicle Code, for any purpose other than
operating the | ||||||
20 | commercial vehicle upon the public highways and unlicensed
| ||||||
21 | commercial vehicles operating on private property. Claims | ||||||
22 | shall be
limited to commercial vehicles
that are operated for | ||||||
23 | both highway purposes and any purposes other than
operating | ||||||
24 | such vehicles upon the public highways.
| ||||||
25 | For claims based upon taxes paid on or after January 1, | ||||||
26 | 2000, a claim based
upon the use of undyed diesel fuel shall |
| |||||||
| |||||||
1 | not be allowed except (i) if allowed
under the preceding | ||||||
2 | paragraph or (ii) for claims for the following:
| ||||||
3 | (1) Undyed diesel fuel used (i) in a manufacturing | ||||||
4 | process, as defined in
Section 2-45 of the Retailers' | ||||||
5 | Occupation Tax Act, wherein the undyed diesel
fuel becomes | ||||||
6 | a component part of a product or by-product, other than | ||||||
7 | fuel or
motor fuel, when the use of dyed diesel fuel in | ||||||
8 | that manufacturing process
results in a product that is | ||||||
9 | unsuitable for its intended use or (ii)
for testing | ||||||
10 | machinery and equipment in a
manufacturing process, as | ||||||
11 | defined in Section 2-45 of the Retailers' Occupation
Tax | ||||||
12 | Act, wherein the testing takes place on private property.
| ||||||
13 | (2) Undyed diesel fuel used by a manufacturer on | ||||||
14 | private property in the
research and development, as | ||||||
15 | defined in Section 1.29, of machinery or equipment
intended | ||||||
16 | for manufacture.
| ||||||
17 | (3) Undyed diesel fuel used by a single unit | ||||||
18 | self-propelled agricultural
fertilizer implement, designed | ||||||
19 | for on and off road use, equipped with flotation
tires and | ||||||
20 | specially adapted for the application of plant food | ||||||
21 | materials or
agricultural chemicals.
| ||||||
22 | (4) Undyed diesel fuel used by a commercial motor | ||||||
23 | vehicle for any purpose
other than operating the commercial | ||||||
24 | motor vehicle upon the public highways.
Claims shall be | ||||||
25 | limited to commercial motor vehicles that are operated for | ||||||
26 | both
highway purposes and any purposes other than operating |
| |||||||
| |||||||
1 | such vehicles upon the
public highways.
| ||||||
2 | (5) Undyed diesel fuel used by a unit of local | ||||||
3 | government in its operation
of an airport if the undyed | ||||||
4 | diesel fuel is used directly in airport operations
on | ||||||
5 | airport property.
| ||||||
6 | (6) Undyed diesel fuel used by refrigeration units that | ||||||
7 | are permanently
mounted to a semitrailer, as defined in | ||||||
8 | Section 1.28 of this Law, wherein the
refrigeration units | ||||||
9 | have a fuel supply system dedicated solely for the
| ||||||
10 | operation of the refrigeration units.
| ||||||
11 | (7) Undyed diesel fuel used by power take-off equipment | ||||||
12 | as defined in
Section 1.27 of this Law. | ||||||
13 | (8) Beginning on the effective date of this amendatory | ||||||
14 | Act of the 94th General Assembly, undyed diesel fuel used | ||||||
15 | by tugs and spotter equipment to shift vehicles or parcels | ||||||
16 | on both private and airport property. Any claim under this | ||||||
17 | item (8) may be made only by a claimant that owns tugs and | ||||||
18 | spotter equipment and operates that equipment on both | ||||||
19 | private and airport property. The aggregate of all credits | ||||||
20 | or refunds resulting from claims filed under this item (8) | ||||||
21 | by a claimant in any calendar year may not exceed $100,000. | ||||||
22 | A claim may not be made under this item (8) by the same | ||||||
23 | claimant more often than once each quarter. For the | ||||||
24 | purposes of this item (8), "tug" means a vehicle designed | ||||||
25 | for use on airport property that shifts custom-designed | ||||||
26 | containers of parcels from loading docks to aircraft, and |
| |||||||
| |||||||
1 | "spotter equipment" means a vehicle designed for use on | ||||||
2 | both private and airport property that shifts trailers | ||||||
3 | containing parcels between staging areas and loading | ||||||
4 | docks.
| ||||||
5 | Any person who has paid the tax imposed by Section 2 of | ||||||
6 | this Law upon undyed
diesel fuel that is unintentionally mixed | ||||||
7 | with dyed diesel fuel and who owns or
controls the mixture of | ||||||
8 | undyed diesel fuel and dyed diesel fuel may file a
claim for | ||||||
9 | refund to recover the amount paid. The amount of undyed diesel | ||||||
10 | fuel
unintentionally mixed must equal 500 gallons or more. Any | ||||||
11 | claim for refund of
unintentionally mixed undyed diesel fuel | ||||||
12 | and dyed diesel fuel shall be
supported by documentation | ||||||
13 | showing the date and location of the unintentional
mixing, the | ||||||
14 | number of gallons involved, the disposition of the mixed diesel
| ||||||
15 | fuel, and any other information that the Department may | ||||||
16 | reasonably require.
Any unintentional mixture of undyed diesel | ||||||
17 | fuel and dyed diesel fuel shall be
sold or used only for | ||||||
18 | non-highway purposes.
| ||||||
19 | The Department shall
promulgate regulations establishing | ||||||
20 | specific limits on the amount of undyed
diesel fuel that may be | ||||||
21 | claimed for refund.
| ||||||
22 | For purposes of claims for refund, "loss" means the | ||||||
23 | reduction of motor
fuel resulting from fire, theft, spillage, | ||||||
24 | spoilage, leakage, or any other
provable cause, but does not | ||||||
25 | include a reduction resulting from evaporation or
shrinkage due | ||||||
26 | to temperature variations.
|
| |||||||
| |||||||
1 | (Source: P.A. 94-654, eff. 8-22-05.)
| ||||||
2 | (35 ILCS 505/13a.4) (from Ch. 120, par. 429a4)
| ||||||
3 | Sec. 13a.4. Except as provided in Section 13a.5 of this | ||||||
4 | Act, no motor
carrier shall operate in Illinois without first | ||||||
5 | securing a motor fuel use tax
license and decals
from the | ||||||
6 | Department or a motor fuel use tax license and decals issued | ||||||
7 | under
the
International Fuel Tax Agreement by any member | ||||||
8 | jurisdiction. Notwithstanding any other provision of this | ||||||
9 | Section to the contrary, however, the Director of the | ||||||
10 | Department of Revenue or his designee may, upon determining | ||||||
11 | that a disaster exists in Illinois or in any other state, | ||||||
12 | temporarily waive the licensing requirements of this Section | ||||||
13 | for commercial motor vehicles that travel through Illinois, or | ||||||
14 | return to Illinois from a point outside Illinois, for the | ||||||
15 | purpose of assisting in disaster relief efforts. Temporary | ||||||
16 | waiver of the licensing requirements of this Section shall not | ||||||
17 | exceed a period of 30 days from the date the Director | ||||||
18 | temporarily waives the licensing requirements of this Section. | ||||||
19 | For purposes of this Section, a disaster includes flood, | ||||||
20 | tornado, hurricane, fire, earthquake, or any other disaster | ||||||
21 | that causes or threatens loss of life or destruction or damage | ||||||
22 | to property of such a magnitude as to endanger the public | ||||||
23 | health, safety, and welfare. The licensing requirements of this | ||||||
24 | Section shall be temporarily waived only if the operator of the | ||||||
25 | commercial motor vehicle can provide proof by manifest that the |
| |||||||
| |||||||
1 | commercial motor vehicle is traveling through Illinois or | ||||||
2 | returning to Illinois from a point outside Illinois for | ||||||
3 | purposes of assisting in disaster relief efforts. Application | ||||||
4 | for
such license and decals
shall be made
annually to the | ||||||
5 | Department on forms prescribed by the Department. The
| ||||||
6 | application shall be under oath, and shall contain such | ||||||
7 | information as the
Department deems necessary. The Department, | ||||||
8 | for cause, may require an applicant
to post a bond on a form to | ||||||
9 | be approved by and with a surety or sureties
satisfactory to | ||||||
10 | the Department conditioned upon such applicant paying to the
| ||||||
11 | State of Illinois all monies becoming due by reason of the sale | ||||||
12 | or use of motor
fuel by the applicant, together with all | ||||||
13 | penalties and interest thereon. If a
bond is required, it shall | ||||||
14 | be equal to at least twice the estimated average tax
liability | ||||||
15 | of a quarterly return. The Department shall fix
the penalty of | ||||||
16 | such bond in each case taking into consideration
the amount of | ||||||
17 | motor fuel expected to be used by such applicant
and the | ||||||
18 | penalty fixed by the Department shall be such as, in
its | ||||||
19 | opinion, will protect the State of Illinois against failure
to | ||||||
20 | pay the amount hereinafter provided on motor fuel used.
No | ||||||
21 | person who is in default to the State for monies due under
this | ||||||
22 | Act for the sale, distribution or use of motor fuel shall
| ||||||
23 | receive such a license or decal.
| ||||||
24 | Upon receipt of the application for license in proper form,
| ||||||
25 | and upon payment
of any required $100 reinstatement fee, and | ||||||
26 | upon approval by the Department of
the bond furnished by the |
| |||||||
| |||||||
1 | applicant, the Department may issue to such applicant
a license | ||||||
2 | which allows the operation of commercial motor
vehicles in | ||||||
3 | Illinois,
and decals for each commercial motor vehicle
| ||||||
4 | operating in Illinois. Prior to January 1, 1985, motor fuel use | ||||||
5 | tax
licenses shall be
conspicuously displayed in the cab of | ||||||
6 | each commercial motor vehicle operating
in Illinois. After | ||||||
7 | January 1, 1986, motor fuel use tax licenses
shall be carried | ||||||
8 | in the cab of each
commercial motor vehicle operating in | ||||||
9 | Illinois.
| ||||||
10 | The Department shall, by regulation, provide for the use of | ||||||
11 | reproductions of
original motor fuel use tax licenses in lieu | ||||||
12 | of issuing
multiple original motor fuel use tax licenses to | ||||||
13 | licensees.
| ||||||
14 | On and after January 1, 1985, external motor fuel tax | ||||||
15 | decals shall be
conspicuously displayed on the passenger side | ||||||
16 | of each commercial motor vehicle
propelled by motor fuel | ||||||
17 | operating in Illinois, except buses, which may display
such | ||||||
18 | devices on the driver's side of the vehicle. Beginning with the | ||||||
19 | effective
date of this amendatory Act of 1993 or the membership | ||||||
20 | of the State of Illinois
in the International Fuel Tax | ||||||
21 | Agreement, whichever is later, the decals issued
to the | ||||||
22 | licensee shall be placed on both exterior sides of the cab. In | ||||||
23 | the case
of transporters, manufacturers, dealers, or driveway | ||||||
24 | operations, the decals
need not be permanently affixed but may | ||||||
25 | be temporarily displayed in a visible
manner on the exterior | ||||||
26 | sides of the cab. Failure to display the decals in the
required |
| |||||||
| |||||||
1 | locations may subject the vehicle operator to the purchase of a | ||||||
2 | trip
permit and a citation. Such motor fuel tax decals shall be | ||||||
3 | issued by
the Department and remain valid for a period of 2 | ||||||
4 | calendar years, beginning
January 1, 1985. The decals shall | ||||||
5 | expire at the end of the regular 2 year
issuance period, with | ||||||
6 | new decals required to be displayed at that time.
Beginning | ||||||
7 | January 1, 1993, the motor fuel decals shall be issued by the
| ||||||
8 | Department and remain valid for a period of one calendar year. | ||||||
9 | The decals
shall expire at the end of the regular one year | ||||||
10 | issuance period, with new
decals required to be displayed at | ||||||
11 | that time. Decals shall be no larger than 3
inches by 3 inches. | ||||||
12 | Prior to January 1, 1993, a fee of $7.50 shall be charged
by | ||||||
13 | the Department for each decal issued prior to and during the 2 | ||||||
14 | calendar
years such decal is valid. Beginning January 1, 1993, | ||||||
15 | a fee of $3.75 shall be
charged by the Department for each | ||||||
16 | decal issued prior to and during the
calendar year such decal | ||||||
17 | is valid. Beginning January 1, 1994, $3.75 shall be
charged for | ||||||
18 | a set of 2 decals. The Department may also prescribe procedures | ||||||
19 | for
the issuance of replacement decals, with a maximum fee of | ||||||
20 | $2 for each set of
replacement decals issued. The transfer of | ||||||
21 | decals from one vehicle to another
vehicle or from one motor | ||||||
22 | carrier to another motor carrier is prohibited. The
fees paid | ||||||
23 | for the decals issued under this Section shall be deposited in | ||||||
24 | the
Motor Fuel Tax Fund, and may be appropriated to the | ||||||
25 | Department for
administration of this Section and enforcement | ||||||
26 | of the tax imposed by Section
13a of this Act.
|
| |||||||
| |||||||
1 | To avoid duplicate reporting of mileage and payment of any | ||||||
2 | tax arising
therefrom under Section 13a.3 of this Act, the | ||||||
3 | Department
shall, by regulation, provide for the allocation | ||||||
4 | between
lessors and lessees of the same commercial motor | ||||||
5 | vehicle or
vehicles of the responsibility as a motor carrier | ||||||
6 | for the
reporting of mileage and the liability for tax arising | ||||||
7 | under
Section 13a.3 of this Act, and for registration, | ||||||
8 | furnishing of
bond, carrying of motor fuel use tax licenses, | ||||||
9 | and display of
decals under this Section,
and for all other | ||||||
10 | duties imposed upon motor carriers by this Act.
| ||||||
11 | (Source: P.A. 94-1074, eff. 12-26-06.)
| ||||||
12 | (35 ILCS 505/13a.5) (from Ch. 120, par. 429a5)
| ||||||
13 | Sec. 13a.5. As to a commercial motor vehicle operated in | ||||||
14 | Illinois in
the course of interstate traffic by a motor carrier | ||||||
15 | not holding a motor fuel
use tax license issued under this Act, | ||||||
16 | a single trip permit
authorizing operation of such commercial | ||||||
17 | motor vehicle for a single trip into the state of Illinois,
| ||||||
18 | through the State of Illinois, or from a point on the border of | ||||||
19 | this State to a
point within and return to the border may be | ||||||
20 | issued by the Department or its
agents after proper | ||||||
21 | application. The fee for each single trip permit shall be
$20 | ||||||
22 | and such single trip permit shall be valid for a period of 72 | ||||||
23 | hours.
This fee
shall be in lieu of the tax required by
Section | ||||||
24 | 13a of this Act, all reports required by Section 13a.3 of this
| ||||||
25 | Act, and the registration, decal display and
furnishing of bond |
| |||||||
| |||||||
1 | required by Section 13a.4 of this Act. Notwithstanding any | ||||||
2 | other provision of this Section to the contrary, however, the | ||||||
3 | Director of the Department of Revenue or his designee may, upon | ||||||
4 | determining that a disaster exists in Illinois or in any other | ||||||
5 | state, temporarily waive the permit provisions of this Section | ||||||
6 | for commercial motor vehicles that travel through Illinois, or | ||||||
7 | return to Illinois from a point outside Illinois, for the | ||||||
8 | purpose of assisting in disaster relief efforts. Temporary | ||||||
9 | waiver of the permit provisions of this Section shall not | ||||||
10 | exceed a period of 30 days from the date the Director waives | ||||||
11 | the permit provisions of this Section. For purposes of this | ||||||
12 | Section, a disaster includes flood, tornado, hurricane, fire, | ||||||
13 | earthquake, or any other disaster that causes or threatens loss | ||||||
14 | of life or destruction or damage to property of such a | ||||||
15 | magnitude as to endanger the public health, safety, and | ||||||
16 | welfare. The permit provisions of this Section shall be | ||||||
17 | temporarily waived only if the operator of the commercial motor | ||||||
18 | vehicle can provide proof by manifest that the commercial motor | ||||||
19 | vehicle is traveling through Illinois or returning to Illinois | ||||||
20 | from a point outside Illinois for purposes of assisting in | ||||||
21 | disaster relief efforts. Rules or regulations
promulgated by | ||||||
22 | the Department under this Section shall provide for reasonable
| ||||||
23 | and proper limitations and restrictions governing application | ||||||
24 | for and issuance
and use of, single trip permits, so as to | ||||||
25 | preclude evasion of the license
requirement in Section 13a.4.
| ||||||
26 | (Source: P.A. 94-1074, eff. 12-26-06.)
|
| |||||||
| |||||||
1 | (35 ILCS 505/17a new)
| ||||||
2 | Sec. 17a. All returns, applications, and other forms | ||||||
3 | required by this Act must be in the form required by the | ||||||
4 | Department. The Department is authorized to adopt rules to | ||||||
5 | require the electronic payment of tax or fees under this Act, | ||||||
6 | and the electronic filing of returns, applications or other | ||||||
7 | forms required by this Act.
| ||||||
8 | Section 30. The Uniform Penalty and Interest Act is amended | ||||||
9 | by changing Section 3-3 as follows:
| ||||||
10 | (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
| ||||||
11 | Sec. 3-3. Penalty for failure to file or pay.
| ||||||
12 | (a) This subsection (a) is applicable before January 1, | ||||||
13 | 1996. A penalty
of 5% of the tax required to be shown due on a | ||||||
14 | return shall be
imposed for failure to file the tax return on | ||||||
15 | or before the due date prescribed
for filing determined with | ||||||
16 | regard for any extension of time for filing
(penalty
for late | ||||||
17 | filing or nonfiling). If any unprocessable return is corrected | ||||||
18 | and
filed within 21 days after notice by the Department, the | ||||||
19 | late filing or
nonfiling penalty shall not apply. If a penalty | ||||||
20 | for late filing or nonfiling
is imposed in addition to a | ||||||
21 | penalty for late payment, the total penalty due
shall be the | ||||||
22 | sum of the late filing penalty and the applicable late payment
| ||||||
23 | penalty.
Beginning on the effective date of this amendatory Act |
| |||||||
| |||||||
1 | of 1995, in the case
of any type of tax return required to be | ||||||
2 | filed more frequently
than annually, when the failure to file | ||||||
3 | the tax return on or before the
date prescribed for filing | ||||||
4 | (including any extensions) is shown to be
nonfraudulent and has | ||||||
5 | not occurred in the 2 years immediately preceding the
failure | ||||||
6 | to file on the prescribed due date, the penalty imposed by | ||||||
7 | Section
3-3(a) shall be abated.
| ||||||
8 | (a-5) This subsection (a-5) is applicable to returns due on | ||||||
9 | and after
January 1, 1996 and on or before December 31, 2000.
A | ||||||
10 | penalty equal to 2% of
the tax required to be shown due on a | ||||||
11 | return, up to a maximum amount of $250,
determined without | ||||||
12 | regard to any part of the tax that is paid on time or by any
| ||||||
13 | credit that was properly allowable on the date the return was | ||||||
14 | required to be
filed, shall be
imposed for failure to file the | ||||||
15 | tax return on or before the due date prescribed
for filing | ||||||
16 | determined with regard for any extension of time for filing.
| ||||||
17 | However, if any return is not filed within 30 days after notice | ||||||
18 | of nonfiling
mailed by the Department to the last known address | ||||||
19 | of the taxpayer contained in
Department records, an additional | ||||||
20 | penalty amount shall be imposed equal to the
greater of $250 or | ||||||
21 | 2% of the tax shown on the return. However, the additional
| ||||||
22 | penalty amount may not exceed $5,000 and is determined without | ||||||
23 | regard to any
part of the tax that is paid on time or by any | ||||||
24 | credit that was properly
allowable on the date the return was | ||||||
25 | required to be filed (penalty
for late filing or nonfiling). If | ||||||
26 | any unprocessable return is corrected and
filed within 30 days |
| |||||||
| |||||||
1 | after notice by the Department, the late filing or
nonfiling | ||||||
2 | penalty shall not apply. If a penalty for late filing or | ||||||
3 | nonfiling
is imposed in addition to a penalty for late payment, | ||||||
4 | the total penalty due
shall be the sum of the late filing | ||||||
5 | penalty and the applicable late payment
penalty.
In the case of | ||||||
6 | any type of tax return required to be filed more frequently
| ||||||
7 | than annually, when the failure to file the tax return on or | ||||||
8 | before the
date prescribed for filing (including any | ||||||
9 | extensions) is shown to be
nonfraudulent and has not occurred | ||||||
10 | in the 2 years immediately preceding the
failure to file on the | ||||||
11 | prescribed due date, the penalty imposed by Section
3-3(a-5) | ||||||
12 | shall be abated.
| ||||||
13 | (a-10) This subsection (a-10) is applicable to returns due | ||||||
14 | on and after
January 1, 2001.
A penalty equal to 2% of
the tax | ||||||
15 | required to be shown due on a return, up to a maximum amount of | ||||||
16 | $250,
reduced by any tax that is
paid on time or by any
credit | ||||||
17 | that was properly allowable on the date the return was required | ||||||
18 | to be
filed, shall be
imposed for failure to file the tax | ||||||
19 | return on or before the due date prescribed
for filing | ||||||
20 | determined with regard for any extension of time for filing.
| ||||||
21 | However, if any return is not filed within 30 days after notice | ||||||
22 | of nonfiling
mailed by the Department to the last known address | ||||||
23 | of the taxpayer contained in
Department records, an additional | ||||||
24 | penalty amount shall be imposed equal to the
greater of $250 or | ||||||
25 | 2% of the tax shown on the return. However, the additional
| ||||||
26 | penalty amount may not exceed $5,000 and is determined without |
| |||||||
| |||||||
1 | regard to any
part of the tax that is paid on time or by any | ||||||
2 | credit that was properly
allowable on the date the return was | ||||||
3 | required to be filed (penalty
for late filing or nonfiling). If | ||||||
4 | any unprocessable return is corrected and
filed within 30 days | ||||||
5 | after notice by the Department, the late filing or
nonfiling | ||||||
6 | penalty shall not apply. If a penalty for late filing or | ||||||
7 | nonfiling
is imposed in addition to a penalty for late payment, | ||||||
8 | the total penalty due
shall be the sum of the late filing | ||||||
9 | penalty and the applicable late payment
penalty.
In the case of | ||||||
10 | any type of tax return required to be filed more frequently
| ||||||
11 | than annually, when the failure to file the tax return on or | ||||||
12 | before the
date prescribed for filing (including any | ||||||
13 | extensions) is shown to be
nonfraudulent and has not occurred | ||||||
14 | in the 2 years immediately preceding the
failure to file on the | ||||||
15 | prescribed due date, the penalty imposed by Section
3-3(a-10) | ||||||
16 | shall be abated.
| ||||||
17 | (b) This subsection is applicable before January 1, 1998.
A | ||||||
18 | penalty of 15% of the tax shown on the return or the tax | ||||||
19 | required to
be shown due on the return shall be imposed for | ||||||
20 | failure to pay:
| ||||||
21 | (1) the tax shown due on the return on or before the | ||||||
22 | due date prescribed
for payment of that tax, an amount of | ||||||
23 | underpayment of estimated tax, or an
amount that is | ||||||
24 | reported in an amended return other than an amended return
| ||||||
25 | timely filed as required by subsection (b) of Section 506 | ||||||
26 | of the Illinois
Income Tax Act (penalty for late payment or |
| |||||||
| |||||||
1 | nonpayment of admitted liability);
or
| ||||||
2 | (2) the full amount of any tax required to be shown due | ||||||
3 | on a
return and which is not shown (penalty for late | ||||||
4 | payment or nonpayment of
additional liability), within 30 | ||||||
5 | days after a notice of arithmetic error,
notice and demand, | ||||||
6 | or a final assessment is issued by the Department.
In the | ||||||
7 | case 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. In the case
of a notice of tax liability that | ||||||
13 | becomes a final assessment without a protest
and hearing, | ||||||
14 | the penalty provided in this paragraph (2) shall be imposed | ||||||
15 | at the
expiration of the period provided for the filing of | ||||||
16 | a protest.
| ||||||
17 | (b-5) This subsection is applicable to returns due on and | ||||||
18 | after January
1, 1998 and on or before December 31, 2000.
A | ||||||
19 | penalty of 20% of the tax shown on the return or the tax | ||||||
20 | required to be
shown due on the return shall be imposed for | ||||||
21 | failure to
pay:
| ||||||
22 | (1) the tax shown due on the return on or before the | ||||||
23 | due date prescribed
for payment of that tax, an amount of | ||||||
24 | underpayment of estimated tax, or an
amount that is | ||||||
25 | reported in an amended return other than an amended return
| ||||||
26 | timely filed as required by subsection (b) of Section 506 |
| |||||||
| |||||||
1 | of the Illinois
Income Tax Act (penalty for late payment or | ||||||
2 | nonpayment of admitted liability);
or
| ||||||
3 | (2) the full amount of any tax required to be shown due | ||||||
4 | on a
return and which is not shown (penalty for late | ||||||
5 | payment or nonpayment of
additional liability), within 30 | ||||||
6 | days after a notice of arithmetic error,
notice and demand, | ||||||
7 | or a final assessment is issued by the Department.
In the | ||||||
8 | case of a final assessment arising following a protest and | ||||||
9 | hearing,
the 30-day period shall not begin until all | ||||||
10 | proceedings in court for review of
the final assessment | ||||||
11 | have terminated or the period for obtaining a review has
| ||||||
12 | expired without proceedings for a review having been | ||||||
13 | instituted. In the case
of a notice of tax liability that | ||||||
14 | becomes a final assessment without a protest
and hearing, | ||||||
15 | the penalty provided in this paragraph (2) shall be imposed | ||||||
16 | at the
expiration of the period provided for the filing of | ||||||
17 | a protest.
| ||||||
18 | (b-10) This subsection (b-10) is applicable to returns due | ||||||
19 | on and after
January 1, 2001 and on or before December 31, | ||||||
20 | 2003. A penalty shall be
imposed for failure to pay:
| ||||||
21 | (1) the tax shown due on a return on or before the due | ||||||
22 | date prescribed for
payment of that tax, an amount of | ||||||
23 | underpayment of estimated tax, or an amount
that is | ||||||
24 | reported in an amended return other than an amended return | ||||||
25 | timely filed
as required by subsection (b) of Section 506 | ||||||
26 | of the Illinois Income Tax Act
(penalty for late payment or |
| |||||||
| |||||||
1 | nonpayment of admitted liability). The amount of
penalty | ||||||
2 | imposed under this subsection (b-10)(1) shall be 2% of any | ||||||
3 | amount that
is paid no later than 30 days after the due | ||||||
4 | date, 5% of any amount that is
paid later than 30 days | ||||||
5 | after the due date and not later than 90 days after
the due | ||||||
6 | date, 10% of any amount that is paid later than 90 days | ||||||
7 | after the due
date and not later than 180 days after the | ||||||
8 | due date, and 15% of any amount that
is paid later than 180 | ||||||
9 | days after the
due date.
If notice and demand is made for | ||||||
10 | the payment of any amount of tax due and if
the amount due | ||||||
11 | is paid within 30 days after the date of the notice and | ||||||
12 | demand,
then the penalty for late payment or nonpayment of | ||||||
13 | admitted liability under
this subsection (b-10)(1) on the | ||||||
14 | amount so paid shall not accrue for the period
after the | ||||||
15 | date of the notice and demand.
| ||||||
16 | (2) the full amount of any tax required to be shown due | ||||||
17 | on a return and
that is not shown (penalty for late payment | ||||||
18 | or nonpayment of additional
liability), within 30 days | ||||||
19 | after a notice of arithmetic error, notice and
demand, or a | ||||||
20 | final assessment is issued by the Department. In the case | ||||||
21 | of a
final assessment arising following a protest and | ||||||
22 | hearing, the 30-day period
shall not begin until all | ||||||
23 | proceedings in court for review of the final
assessment | ||||||
24 | have terminated or the period for obtaining a review has | ||||||
25 | expired
without proceedings for a review having been | ||||||
26 | instituted. The amount of penalty
imposed under this |
| |||||||
| |||||||
1 | subsection (b-10)(2) shall be 20% of any amount that is not
| ||||||
2 | paid within the 30-day period. In the case of a notice of | ||||||
3 | tax liability that
becomes a final assessment without a | ||||||
4 | protest and hearing, the penalty provided
in this | ||||||
5 | subsection (b-10)(2) shall be imposed at the expiration of | ||||||
6 | the period
provided for the filing of a protest.
| ||||||
7 | (b-15) This subsection (b-15) is applicable to returns due | ||||||
8 | on and after
January 1, 2004 and on or before December 31, | ||||||
9 | 2004. A penalty shall be imposed for failure to pay the tax | ||||||
10 | shown due or
required to be shown due on a return on or before | ||||||
11 | the due date prescribed for
payment of that tax, an amount of | ||||||
12 | underpayment of estimated tax, or an amount
that is reported in | ||||||
13 | an amended return other than an amended return timely filed
as | ||||||
14 | required by subsection (b) of Section 506 of the Illinois | ||||||
15 | Income Tax Act
(penalty for late payment or nonpayment of | ||||||
16 | admitted liability). The amount of
penalty imposed under this | ||||||
17 | subsection (b-15) (b-15)(1) shall be 2% of any amount that
is | ||||||
18 | paid no later than 30 days after the due date, 10% of any | ||||||
19 | amount that is
paid later than 30 days after the due date and | ||||||
20 | not later than 90 days after the
due date, 15% of any amount | ||||||
21 | that is paid later than 90 days after the due date
and not | ||||||
22 | later than 180 days after the due date, and 20% of any amount | ||||||
23 | that is
paid later than 180 days after the due date. If notice | ||||||
24 | and demand is made for
the payment of any amount of tax due and | ||||||
25 | if the amount due is paid within 30
days after the date of this | ||||||
26 | notice and demand, then the penalty for late
payment or |
| |||||||
| |||||||
1 | nonpayment of admitted liability under this subsection (b-15) | ||||||
2 | (b-15)(1) on
the amount so paid shall not accrue for the period | ||||||
3 | after the date of the notice
and demand.
| ||||||
4 | (b-20) This subsection (b-20) is applicable to returns due | ||||||
5 | on and after January 1, 2005. | ||||||
6 | (1) A penalty shall be imposed for failure to pay, | ||||||
7 | prior to the due date for payment, any amount of tax the | ||||||
8 | payment of which is required to be made prior to the filing | ||||||
9 | of a return or without a return (penalty for late payment | ||||||
10 | or nonpayment of estimated or accelerated tax). The amount | ||||||
11 | of penalty imposed under this paragraph (1) shall be 2% of | ||||||
12 | any amount that is paid no later than 30 days after the due | ||||||
13 | date and 10% of any amount that is paid later than 30 days | ||||||
14 | after the due date. | ||||||
15 | (2) A penalty shall be imposed for failure to pay the | ||||||
16 | tax shown due or required to be shown due on a return on or | ||||||
17 | before the due date prescribed for payment of that tax or | ||||||
18 | an amount that is reported in an amended return other than | ||||||
19 | an amended return timely filed as required by subsection | ||||||
20 | (b) of Section 506 of the Illinois Income Tax Act (penalty | ||||||
21 | for late payment or nonpayment of tax). The amount of | ||||||
22 | penalty imposed under this paragraph (2) shall be 2% of any | ||||||
23 | amount that is paid no later than 30 days after the due | ||||||
24 | date, 10% of any amount that is paid later than 30 days | ||||||
25 | after the due date and prior to the date the Department has | ||||||
26 | initiated an audit or investigation of the taxpayer, and |
| |||||||
| |||||||
1 | 20% of any amount that is paid after the date the | ||||||
2 | Department has initiated an audit or investigation of the | ||||||
3 | taxpayer; provided that the penalty shall be reduced to 15% | ||||||
4 | if the entire amount due is paid not later than 30 days | ||||||
5 | after the Department has provided the taxpayer with an | ||||||
6 | amended return (following completion of an occupation, | ||||||
7 | use, or excise tax audit) or a form for waiver of | ||||||
8 | restrictions on assessment (following completion of an | ||||||
9 | income tax audit); provided further that the reduction to | ||||||
10 | 15% shall be rescinded if the taxpayer makes any claim for | ||||||
11 | refund or credit of the tax, penalties, or interest | ||||||
12 | determined to be due upon audit, except in the case of a | ||||||
13 | claim filed pursuant to subsection (b) of Section 506 of | ||||||
14 | the Illinois Income Tax Act or to claim a carryover of a | ||||||
15 | loss or credit, the availability of which was not | ||||||
16 | determined in the audit. For purposes of this paragraph | ||||||
17 | (2), any overpayment reported on an original return that | ||||||
18 | has been allowed as a refund or credit to the taxpayer | ||||||
19 | shall be deemed to have not been paid on or before the due | ||||||
20 | date for payment and any amount paid under protest pursuant | ||||||
21 | to the provisions of the State Officers and Employees Money | ||||||
22 | Disposition Act shall be deemed to have been paid after the | ||||||
23 | Department has initiated an audit and more than 30 days | ||||||
24 | after the Department has provided the taxpayer with an | ||||||
25 | amended return (following completion of an occupation, | ||||||
26 | use, or excise tax audit) or a form for waiver of |
| |||||||
| |||||||
1 | restrictions on assessment (following completion of an | ||||||
2 | income tax audit). | ||||||
3 | (3) The penalty imposed under this subsection (b-20) | ||||||
4 | shall be deemed assessed at the time the tax upon which the | ||||||
5 | penalty is computed is assessed, except that, if the | ||||||
6 | reduction of the penalty imposed under paragraph (2) of | ||||||
7 | this subsection (b-20) to 15% is rescinded because a claim | ||||||
8 | for refund or credit has been filed, the increase in | ||||||
9 | penalty shall be deemed assessed at the time the claim for | ||||||
10 | refund or credit is filed.
| ||||||
11 | (c) For purposes of the late payment penalties, the basis | ||||||
12 | of the penalty
shall be the tax shown or required to be shown | ||||||
13 | on a return, whichever is
applicable, reduced by any part of | ||||||
14 | the tax which is paid on time and by any
credit which was | ||||||
15 | properly allowable on the date the return was required to
be | ||||||
16 | filed.
| ||||||
17 | (d) A penalty shall be applied to the tax required to be | ||||||
18 | shown even if
that amount is less than the tax shown on the | ||||||
19 | return.
| ||||||
20 | (e) This subsection (e) is applicable to returns due before | ||||||
21 | January 1,
2001.
If both a subsection (b)(1) or (b-5)(1) | ||||||
22 | penalty and a subsection (b)(2)
or (b-5)(2) penalty are | ||||||
23 | assessed against the same return, the subsection
(b)(2) or | ||||||
24 | (b-5)(2) penalty shall
be assessed against only the additional | ||||||
25 | tax found to be due.
| ||||||
26 | (e-5) This subsection (e-5) is applicable to returns due on |
| |||||||
| |||||||
1 | and after
January 1, 2001.
If both a subsection (b-10)(1) | ||||||
2 | penalty and a subsection
(b-10)(2) penalty are assessed against | ||||||
3 | the same return,
the subsection (b-10)(2) penalty shall be | ||||||
4 | assessed against
only the additional tax found to be due.
| ||||||
5 | (f) If the taxpayer has failed to file the return, the | ||||||
6 | Department shall
determine the correct tax according to its | ||||||
7 | best judgment and information,
which amount shall be prima | ||||||
8 | facie evidence of the correctness of the tax due.
| ||||||
9 | (g) The time within which to file a return or pay an amount | ||||||
10 | of tax due
without imposition of a penalty does not extend the | ||||||
11 | time within which to
file a protest to a notice of tax | ||||||
12 | liability or a notice of deficiency.
| ||||||
13 | (h) No return shall be determined to be unprocessable | ||||||
14 | because of the
omission of any information requested on the | ||||||
15 | return pursuant to Section
2505-575
of the Department of | ||||||
16 | Revenue Law (20 ILCS 2505/2505-575).
| ||||||
17 | (i) If a taxpayer has a tax liability that is eligible for | ||||||
18 | amnesty under the
Tax Delinquency Amnesty Act and the taxpayer | ||||||
19 | fails to satisfy the tax liability
during the amnesty period | ||||||
20 | provided for in that Act, then the penalty imposed by
the | ||||||
21 | Department under this Section shall be imposed in an amount | ||||||
22 | that is 200% of
the amount that would otherwise be imposed | ||||||
23 | under this Section.
| ||||||
24 | (Source: P.A. 92-742, eff. 7-25-02; 93-26, eff. 6-20-03; 93-32, | ||||||
25 | eff. 6-20-03; 93-1068, eff. 1-15-05.)
|
| |||||||
| |||||||
1 | Section 35. The Counties Code is amended by changing | ||||||
2 | Sections 5-1006, 5-1006.5, 5-1006.7, and 5-1007 as follows:
| ||||||
3 | (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
| ||||||
4 | Sec. 5-1006. Home Rule County Retailers' Occupation Tax | ||||||
5 | Law. Any county that is a home rule unit may impose
a tax upon | ||||||
6 | all persons engaged in the business of selling tangible
| ||||||
7 | personal property, other than an item of tangible personal | ||||||
8 | property titled
or registered with an agency of this State's | ||||||
9 | government, at retail in the
county on the gross receipts from | ||||||
10 | such sales made in the course of
their business. If imposed, | ||||||
11 | this tax shall only
be imposed in 1/4% increments. On and after | ||||||
12 | September 1, 1991, this
additional tax may not be imposed on | ||||||
13 | the sales of food for human
consumption which is to be consumed | ||||||
14 | off the premises where it is sold
(other than alcoholic | ||||||
15 | beverages, soft drinks and food which has been
prepared for | ||||||
16 | immediate consumption) and prescription and nonprescription
| ||||||
17 | medicines, drugs, medical appliances , modifications to a motor | ||||||
18 | vehicle for the purpose of rendering it usable by a disabled | ||||||
19 | person, and insulin, urine testing materials,
syringes and | ||||||
20 | needles used by diabetics. The tax imposed by a home rule
| ||||||
21 | county pursuant to this Section and all civil penalties that | ||||||
22 | may be
assessed as an incident thereof shall be collected and | ||||||
23 | enforced by the
State Department of Revenue. The certificate of | ||||||
24 | registration that is
issued by the Department to a retailer | ||||||
25 | under the Retailers'
Occupation Tax Act shall permit the |
| |||||||
| |||||||
1 | retailer to engage in a
business that is taxable under any | ||||||
2 | ordinance or resolution
enacted pursuant to this Section | ||||||
3 | without registering separately with the
Department under such | ||||||
4 | ordinance or resolution or under this Section. The
Department | ||||||
5 | shall have full power to administer and enforce this Section; | ||||||
6 | to
collect all taxes and penalties due hereunder; to dispose of | ||||||
7 | taxes and
penalties so collected in the manner hereinafter | ||||||
8 | provided; and to
determine all rights to credit memoranda | ||||||
9 | arising on account of the
erroneous payment of tax or penalty | ||||||
10 | hereunder. In the administration of,
and compliance with, this | ||||||
11 | Section, the Department and persons who are
subject to this | ||||||
12 | Section shall have the same rights, remedies, privileges,
| ||||||
13 | immunities, powers and duties, and be subject to the same | ||||||
14 | conditions,
restrictions, limitations, penalties and | ||||||
15 | definitions of terms, and employ
the same modes of procedure, | ||||||
16 | as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, | ||||||
17 | 1k, 1m, 1n, 2 through 2-65 (in respect to all provisions
| ||||||
18 | therein other
than the State rate of tax), 4, 5, 5a, 5b, 5c, | ||||||
19 | 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, | ||||||
20 | 11, 12 and 13 of the Retailers'
Occupation Tax Act and Section | ||||||
21 | 3-7 of the Uniform Penalty and Interest Act,
as fully as if | ||||||
22 | those provisions were set forth herein.
| ||||||
23 | No tax may be imposed by a home rule county pursuant to | ||||||
24 | this Section
unless the county also imposes a tax at the same | ||||||
25 | rate pursuant
to Section 5-1007.
| ||||||
26 | Persons subject to any tax imposed pursuant to the |
| |||||||
| |||||||
1 | authority granted
in this Section may reimburse themselves for | ||||||
2 | their seller's tax
liability hereunder by separately stating | ||||||
3 | such tax as an additional
charge, which charge may be stated in | ||||||
4 | combination, in a single amount,
with State tax which sellers | ||||||
5 | are required to collect under the Use Tax
Act, pursuant to such | ||||||
6 | bracket schedules as the Department may prescribe.
| ||||||
7 | Whenever the Department determines that a refund should be | ||||||
8 | made under
this Section to a claimant instead of issuing a | ||||||
9 | credit memorandum, the
Department shall notify the State | ||||||
10 | Comptroller, who shall cause the
order to be drawn for the | ||||||
11 | amount specified and to the person named
in the notification | ||||||
12 | from the Department. The
refund shall be paid by the State | ||||||
13 | Treasurer out of the home rule county
retailers' occupation tax | ||||||
14 | fund.
| ||||||
15 | The Department shall forthwith pay over to the State | ||||||
16 | Treasurer, ex
officio, as trustee, all taxes and penalties | ||||||
17 | collected hereunder. On or
before the 25th day of each calendar | ||||||
18 | month, the Department shall
prepare and certify to the | ||||||
19 | Comptroller the disbursement of stated sums
of money to named | ||||||
20 | counties, the counties to be those from which retailers
have | ||||||
21 | paid taxes or penalties hereunder to the Department during the | ||||||
22 | second
preceding calendar month. The amount to be paid to each | ||||||
23 | county shall be
the amount (not including credit memoranda) | ||||||
24 | collected hereunder during the
second preceding calendar month | ||||||
25 | by the Department plus an amount the
Department determines is | ||||||
26 | necessary to offset any amounts that
were erroneously paid to a |
| |||||||
| |||||||
1 | different taxing body, and not including an
amount equal to the | ||||||
2 | amount of refunds made during the second preceding
calendar | ||||||
3 | month by the Department on behalf of such county, and not
| ||||||
4 | including any amount which the Department determines is | ||||||
5 | necessary to offset
any amounts which were payable to a | ||||||
6 | different taxing body but were
erroneously paid to the county. | ||||||
7 | Within 10 days after receipt, by the
Comptroller, of the | ||||||
8 | disbursement certification to the counties provided for
in this | ||||||
9 | Section to be given to the Comptroller by the Department, the
| ||||||
10 | Comptroller shall cause the orders to be drawn for the | ||||||
11 | respective amounts
in accordance with the directions contained | ||||||
12 | in the certification.
| ||||||
13 | In addition to the disbursement required by the preceding | ||||||
14 | paragraph,
an allocation shall be made in March of each year to | ||||||
15 | each county that
received more than $500,000 in disbursements | ||||||
16 | under the preceding
paragraph in the preceding calendar year. | ||||||
17 | The allocation shall be in an
amount equal to the average | ||||||
18 | monthly distribution made to each such county
under the | ||||||
19 | preceding paragraph during the preceding calendar year | ||||||
20 | (excluding
the 2 months of highest receipts). The distribution | ||||||
21 | made in March of each
year subsequent to the year in which an | ||||||
22 | allocation was made pursuant to
this paragraph and the | ||||||
23 | preceding paragraph shall be reduced by the amount
allocated | ||||||
24 | and disbursed under this paragraph in the preceding calendar
| ||||||
25 | year. The Department shall prepare and certify to the | ||||||
26 | Comptroller for
disbursement the allocations made in |
| |||||||
| |||||||
1 | 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 | county to impose a tax upon the privilege of engaging in any
| ||||||
13 | business which under the Constitution of the United States may | ||||||
14 | 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 such 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 such adoption
and filing.
| ||||||
8 | Beginning April 1, 1998, an ordinance or
resolution imposing or
| ||||||
9 | discontinuing the tax hereunder or effecting a change in the | ||||||
10 | rate thereof shall
either (i) be adopted and a certified copy | ||||||
11 | thereof filed with the Department on
or
before the first day of | ||||||
12 | April, whereupon the Department shall proceed to
administer and | ||||||
13 | enforce this Section as of the first day of July next following
| ||||||
14 | the adoption and filing; or (ii) be adopted and a certified | ||||||
15 | copy thereof filed
with the Department on or before the first | ||||||
16 | day of October, whereupon the
Department shall proceed to | ||||||
17 | administer and enforce this Section as of the first
day of | ||||||
18 | January next following the adoption and filing.
| ||||||
19 | When certifying the amount of a monthly disbursement to a | ||||||
20 | county under
this Section, the Department shall increase or | ||||||
21 | decrease such amount by an
amount necessary to offset any | ||||||
22 | misallocation of previous disbursements.
The offset amount | ||||||
23 | shall be the amount erroneously disbursed within the
previous 6 | ||||||
24 | months from the time a misallocation is discovered.
| ||||||
25 | This Section shall be known and may be cited as the Home | ||||||
26 | Rule County
Retailers' Occupation Tax Law.
|
| |||||||
| |||||||
1 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
2 | (55 ILCS 5/5-1006.5)
| ||||||
3 | Sec. 5-1006.5. Special County Retailers' Occupation Tax
| ||||||
4 | For Public Safety, Public Facilities, or Transportation. | ||||||
5 | (a) The county board of any county may impose a
tax upon | ||||||
6 | all persons engaged in the business of selling tangible | ||||||
7 | personal
property, other than personal property titled or | ||||||
8 | registered with an agency of
this State's government, at retail | ||||||
9 | in the county on the gross receipts from the
sales made in the | ||||||
10 | course of business to provide revenue to be used exclusively
| ||||||
11 | for public safety, public facility, or transportation purposes | ||||||
12 | in that county, if a
proposition for the
tax has been submitted | ||||||
13 | to the electors of that county and
approved by a majority of | ||||||
14 | those voting on the question. If imposed, this tax
shall be | ||||||
15 | imposed only in one-quarter percent increments. By resolution, | ||||||
16 | the
county board may order the proposition to be submitted at | ||||||
17 | any election.
If the tax is imposed for
transportation purposes | ||||||
18 | for expenditures for public highways or as
authorized
under the | ||||||
19 | Illinois Highway Code, the county board must publish notice
of | ||||||
20 | the existence of its long-range highway transportation
plan as | ||||||
21 | required or described in Section 5-301 of the Illinois
Highway | ||||||
22 | Code and must make the plan publicly available prior to
| ||||||
23 | approval of the ordinance or resolution
imposing the tax. If | ||||||
24 | the tax is imposed for transportation purposes for
expenditures | ||||||
25 | for passenger rail transportation, the county board must |
| |||||||
| |||||||
1 | publish
notice of the existence of its long-range passenger | ||||||
2 | rail transportation plan
and
must make the plan publicly | ||||||
3 | available prior to approval of the ordinance or
resolution | ||||||
4 | imposing the tax. The county clerk shall certify the
question | ||||||
5 | to the proper election authority, who
shall submit the | ||||||
6 | proposition at an election in accordance with the general
| ||||||
7 | election law.
| ||||||
8 | (1) The proposition for public safety purposes shall be | ||||||
9 | 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)?" | ||||||
13 | As additional information on the ballot below the | ||||||
14 | question shall appear the following: | ||||||
15 | "This would mean that a consumer would pay an | ||||||
16 | additional (insert amount) in sales tax for every $100 of | ||||||
17 | tangible personal property bought at retail."
| ||||||
18 | The county board may also opt to establish a sunset | ||||||
19 | provision at which time the additional sales tax would | ||||||
20 | cease being collected, if not terminated earlier by a vote | ||||||
21 | of the county board. If the county board votes to include a | ||||||
22 | sunset provision, the proposition for public safety | ||||||
23 | purposes shall be in substantially the following form: | ||||||
24 | "To pay for public safety purposes, shall (name of | ||||||
25 | county) be authorized to impose an increase on its share of | ||||||
26 | local sales taxes by (insert rate) for a period not to |
| |||||||
| |||||||
1 | exceed (insert number of years)?" | ||||||
2 | As additional information on the ballot below the | ||||||
3 | question shall appear the following: | ||||||
4 | "This would mean that a consumer would pay an | ||||||
5 | additional (insert amount) in sales tax for every $100 of | ||||||
6 | tangible personal property bought at retail. If imposed, | ||||||
7 | the additional tax would cease being collected at the end | ||||||
8 | of (insert number of years), if not terminated earlier by a | ||||||
9 | vote of the county board."
| ||||||
10 | For the purposes of the
paragraph, "public safety | ||||||
11 | purposes" means
crime prevention, detention, fire | ||||||
12 | fighting, police, medical, ambulance, or
other emergency | ||||||
13 | services.
| ||||||
14 | Votes shall be recorded as "Yes" or "No".
| ||||||
15 | (2) The proposition for transportation purposes shall | ||||||
16 | be in
substantially
the following form: | ||||||
17 | "To pay for improvements to roads and other | ||||||
18 | transportation purposes, shall (name of county) be | ||||||
19 | authorized to impose an increase on its share of local | ||||||
20 | sales taxes by (insert rate)?" | ||||||
21 | As additional information on the ballot below the | ||||||
22 | question shall appear the following: | ||||||
23 | "This would mean that a consumer would pay an | ||||||
24 | additional (insert amount) in sales tax for every $100 of | ||||||
25 | tangible personal property bought at retail."
| ||||||
26 | The county board may also opt to establish a sunset |
| |||||||
| |||||||
1 | provision at which time the additional sales tax would | ||||||
2 | cease being collected, if not terminated earlier by a vote | ||||||
3 | of the county board. If the county board votes to include a | ||||||
4 | sunset provision, the proposition for transportation | ||||||
5 | purposes shall be in substantially the following form: | ||||||
6 | "To pay for road improvements and other transportation | ||||||
7 | purposes, shall (name of county) be authorized to impose an | ||||||
8 | increase on its share of local sales taxes by (insert rate) | ||||||
9 | for a period not to exceed (insert number of years)?" | ||||||
10 | As additional information on the ballot below the | ||||||
11 | question shall appear the following: | ||||||
12 | "This would mean that a consumer would pay an | ||||||
13 | additional (insert amount) in sales tax for every $100 of | ||||||
14 | tangible personal property bought at retail. If imposed, | ||||||
15 | the additional tax would cease being collected at the end | ||||||
16 | of (insert number of years), if not terminated earlier by a | ||||||
17 | vote of the county board."
| ||||||
18 | For the purposes of this paragraph, transportation | ||||||
19 | purposes means
construction, maintenance, operation, and | ||||||
20 | improvement of
public highways, any other purpose for which | ||||||
21 | a county may expend funds under
the Illinois Highway Code, | ||||||
22 | and passenger rail transportation.
| ||||||
23 | The votes shall be recorded as "Yes" or "No".
| ||||||
24 | (3) The proposition for public facility purposes shall | ||||||
25 | be in substantially the following form: | ||||||
26 | "To pay for public facility purposes, shall (name of
|
| |||||||
| |||||||
1 | county) be authorized to impose an increase on its share of
| ||||||
2 | local sales taxes by (insert rate)?" | ||||||
3 | As additional information on the ballot below the
| ||||||
4 | question shall appear the following: | ||||||
5 | "This would mean that a consumer would pay an
| ||||||
6 | additional (insert amount) in sales tax for every $100 of
| ||||||
7 | tangible personal property bought at retail." | ||||||
8 | The county board may also opt to establish a sunset
| ||||||
9 | provision at which time the additional sales tax would
| ||||||
10 | cease being collected, if not terminated earlier by a vote
| ||||||
11 | of the county board. If the county board votes to include a
| ||||||
12 | sunset provision, the proposition for public facility
| ||||||
13 | purposes shall be in substantially the following form: | ||||||
14 | "To pay for public facility purposes, shall (name of
| ||||||
15 | county) be authorized to impose an increase on its share of
| ||||||
16 | local sales taxes by (insert rate) for a period not to
| ||||||
17 | exceed (insert number of years)?" | ||||||
18 | As additional information on the ballot below the
| ||||||
19 | question shall appear the following: | ||||||
20 | "This would mean that a consumer would pay an
| ||||||
21 | additional (insert amount) in sales tax for every $100 of
| ||||||
22 | tangible personal property bought at retail. If imposed,
| ||||||
23 | the additional tax would cease being collected at the end
| ||||||
24 | of (insert number of years), if not terminated earlier by a
| ||||||
25 | vote of the county board." | ||||||
26 | For purposes of this Section, "public facilities |
| |||||||
| |||||||
1 | purposes" means the acquisition, development, | ||||||
2 | construction, reconstruction, rehabilitation, improvement, | ||||||
3 | financing, architectural planning, and installation of | ||||||
4 | capital facilities consisting of buildings, structures, | ||||||
5 | and durable equipment and for the acquisition and | ||||||
6 | improvement of real property and interest in real property | ||||||
7 | required, or expected to be required, in connection with | ||||||
8 | the public facilities, for use by the county for the | ||||||
9 | furnishing of governmental services to its citizens, | ||||||
10 | including but not limited to museums and nursing homes. | ||||||
11 | The votes shall be recorded as "Yes" or "No". | ||||||
12 | If a majority of the electors voting on
the proposition | ||||||
13 | vote in favor of it, the county may impose the tax.
A county | ||||||
14 | may not submit more than one proposition authorized by this | ||||||
15 | Section
to the electors at any one time.
| ||||||
16 | This additional tax may not be imposed on the sales of food | ||||||
17 | for human
consumption that is to be consumed off the premises | ||||||
18 | where it is sold (other
than alcoholic beverages, soft drinks, | ||||||
19 | and food which has been prepared for
immediate consumption) and | ||||||
20 | prescription and non-prescription medicines, drugs,
medical | ||||||
21 | appliances , modifications to a motor vehicle for the purpose of | ||||||
22 | rendering it usable by a disabled person, and insulin, urine | ||||||
23 | testing materials, syringes, and needles
used by diabetics. The | ||||||
24 | tax imposed by a county under this Section and
all civil | ||||||
25 | penalties that may be assessed as an incident of the tax shall | ||||||
26 | be
collected and enforced by the Illinois Department of Revenue |
| |||||||
| |||||||
1 | and deposited
into a special fund created for that purpose. The | ||||||
2 | certificate
of registration that is issued by the Department to | ||||||
3 | a retailer under the
Retailers' Occupation Tax Act shall permit | ||||||
4 | the retailer to engage in a business
that is taxable without | ||||||
5 | registering separately with the Department under an
ordinance | ||||||
6 | or resolution under this Section. The Department has full
power | ||||||
7 | to administer and enforce this Section, to collect all taxes | ||||||
8 | and
penalties due under this Section, to dispose of taxes and | ||||||
9 | penalties so
collected in the manner provided in this Section, | ||||||
10 | and to determine
all rights to credit memoranda arising on | ||||||
11 | account of the erroneous payment of
a tax or penalty under this | ||||||
12 | Section. In the administration of and compliance
with this | ||||||
13 | Section, the Department and persons who are subject to this | ||||||
14 | Section
shall (i) have the same rights, remedies, privileges, | ||||||
15 | immunities, powers, and
duties, (ii) be subject to the same | ||||||
16 | conditions, restrictions, limitations,
penalties, and | ||||||
17 | definitions of terms, and (iii) employ the same modes of
| ||||||
18 | procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, | ||||||
19 | 1f,
1i, 1j,
1k, 1m, 1n,
2 through 2-70 (in respect to all | ||||||
20 | provisions contained in those Sections
other than the
State | ||||||
21 | rate of tax), 2a, 2b, 2c, 3 (except provisions
relating to
| ||||||
22 | transaction returns and quarter monthly payments), 4, 5, 5a, | ||||||
23 | 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | ||||||
24 | 9, 10, 11, 11a, 12, and 13 of the
Retailers' Occupation Tax Act | ||||||
25 | and Section 3-7 of the Uniform Penalty and
Interest Act as if | ||||||
26 | those provisions were set forth in this Section.
|
| |||||||
| |||||||
1 | Persons subject to any tax imposed under the authority | ||||||
2 | granted in this
Section may reimburse themselves for their | ||||||
3 | sellers' tax liability by
separately stating the tax as an | ||||||
4 | additional charge, which charge may be stated
in combination, | ||||||
5 | in a single amount, with State tax which sellers are required
| ||||||
6 | to collect under the Use Tax Act, pursuant to such bracketed | ||||||
7 | schedules as the
Department may prescribe.
| ||||||
8 | Whenever the Department determines that a refund should be | ||||||
9 | made under this
Section to a claimant instead of issuing a | ||||||
10 | credit memorandum, the Department
shall notify the State | ||||||
11 | Comptroller, who shall cause the order to be drawn for
the | ||||||
12 | amount specified and to the person named in the notification | ||||||
13 | from the
Department. The refund shall be paid by the State | ||||||
14 | Treasurer out of the County
Public Safety or Transportation | ||||||
15 | Retailers' Occupation Tax Fund.
| ||||||
16 | (b) If a tax has been imposed under subsection (a), a
| ||||||
17 | service occupation tax shall
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.
This tax may | ||||||
22 | not be imposed on sales of food for human consumption that is | ||||||
23 | to
be consumed off the premises where it is sold (other than | ||||||
24 | alcoholic beverages,
soft drinks, and food prepared for | ||||||
25 | immediate consumption) and prescription and
non-prescription | ||||||
26 | medicines, drugs, medical appliances , modifications to a motor |
| |||||||
| |||||||
1 | vehicle for the purpose of rendering it usable by a disabled | ||||||
2 | person, and insulin, urine
testing materials, syringes, and | ||||||
3 | needles used by diabetics.
The tax imposed under this | ||||||
4 | subsection and all civil penalties that may be
assessed as an | ||||||
5 | incident thereof shall be collected and enforced by the
| ||||||
6 | Department of Revenue. The Department has
full power to
| ||||||
7 | administer and enforce this subsection; to collect all taxes | ||||||
8 | and penalties
due hereunder; to dispose of taxes and penalties | ||||||
9 | so collected in the manner
hereinafter provided; and to | ||||||
10 | determine all rights to credit memoranda
arising on account of | ||||||
11 | the erroneous payment of tax or penalty hereunder.
In the | ||||||
12 | administration of, and compliance with this subsection, the
| ||||||
13 | Department and persons who are subject to this paragraph shall | ||||||
14 | (i) have the
same rights, remedies, privileges, immunities, | ||||||
15 | powers, and duties, (ii) be
subject to the same conditions, | ||||||
16 | restrictions, limitations, penalties,
exclusions, exemptions, | ||||||
17 | and definitions of terms, and (iii) employ the same
modes
of | ||||||
18 | procedure as are prescribed in Sections 2 (except that the
| ||||||
19 | reference to State in the definition of supplier maintaining a | ||||||
20 | place of
business in this State shall mean the county), 2a, 2b, | ||||||
21 | 2c, 3 through
3-50 (in respect to all provisions therein other | ||||||
22 | than the State rate of
tax), 4 (except that the reference to | ||||||
23 | the State shall be to the county),
5, 7, 8 (except that the | ||||||
24 | jurisdiction to which the tax shall be a debt to
the extent | ||||||
25 | indicated in that Section 8 shall be the county), 9 (except as
| ||||||
26 | to the disposition of taxes and penalties collected), 10, 11, |
| |||||||
| |||||||
1 | 12 (except the reference therein to Section 2b of the
| ||||||
2 | Retailers' Occupation Tax Act), 13 (except that any reference | ||||||
3 | to the State
shall mean the county), Section 15, 16,
17, 18, 19 | ||||||
4 | and 20 of the Service Occupation Tax Act and Section 3-7 of
the | ||||||
5 | Uniform Penalty and Interest Act, as fully as if those | ||||||
6 | 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
by separately stating the tax as an | ||||||
10 | additional charge, which
charge may be stated in combination, | ||||||
11 | in a single amount, with State tax
that servicemen are | ||||||
12 | 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 a | ||||||
17 | credit memorandum, the Department
shall notify the State | ||||||
18 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
19 | amount specified, and to the person named, in the notification
| ||||||
20 | from the Department. The refund shall be paid by the State | ||||||
21 | Treasurer out
of the County Public Safety or Transportation | ||||||
22 | Retailers' Occupation Fund.
| ||||||
23 | Nothing in this subsection shall be construed to authorize | ||||||
24 | the county
to impose a tax upon the privilege of engaging in | ||||||
25 | any business which under
the Constitution of the United States | ||||||
26 | may not be made the subject of taxation
by the State.
|
| |||||||
| |||||||
1 | (c) The Department shall immediately pay over to the State | ||||||
2 | Treasurer, ex
officio,
as trustee, all taxes and penalties | ||||||
3 | collected under this Section to be
deposited into the County | ||||||
4 | Public Safety or Transportation Retailers'
Occupation Tax | ||||||
5 | Fund, which
shall be an unappropriated trust fund held outside | ||||||
6 | of the State treasury. On
or before the 25th
day of each | ||||||
7 | calendar month, the Department shall prepare and certify to the
| ||||||
8 | Comptroller the disbursement of stated sums of money
to the | ||||||
9 | counties from which retailers have paid
taxes or penalties to | ||||||
10 | the Department during the second preceding
calendar month. The | ||||||
11 | amount to be paid to each county, and deposited by the
county | ||||||
12 | into its special fund created for the purposes of this Section, | ||||||
13 | shall
be the amount (not
including credit memoranda) collected | ||||||
14 | under this Section during the second
preceding
calendar month | ||||||
15 | by the Department plus an amount the Department determines is
| ||||||
16 | necessary to offset any amounts that were erroneously paid to a | ||||||
17 | different
taxing body, and not including (i) an amount equal to | ||||||
18 | the amount of refunds
made
during the second preceding calendar | ||||||
19 | month by the Department on behalf of
the county and (ii) any | ||||||
20 | amount that the Department determines is
necessary to offset | ||||||
21 | any amounts that were payable to a different taxing body
but | ||||||
22 | were erroneously paid to the county. Within 10 days after | ||||||
23 | receipt by the
Comptroller of the disbursement certification to | ||||||
24 | the counties provided for in
this Section to be given to the | ||||||
25 | Comptroller by the Department, the Comptroller
shall cause the | ||||||
26 | orders to be drawn for the respective amounts in accordance
|
| |||||||
| |||||||
1 | with directions contained in the certification.
| ||||||
2 | In addition to the disbursement required by the preceding | ||||||
3 | paragraph, an
allocation shall be made in March of each year to | ||||||
4 | each county that received
more than $500,000 in disbursements | ||||||
5 | under the preceding paragraph in the
preceding calendar year. | ||||||
6 | The allocation shall be in an amount equal to the
average | ||||||
7 | monthly distribution made to each such county under the | ||||||
8 | preceding
paragraph during the preceding calendar year | ||||||
9 | (excluding the 2 months of
highest receipts). The distribution | ||||||
10 | made in March of each year subsequent to
the year in which an | ||||||
11 | allocation was made pursuant to this paragraph and the
| ||||||
12 | preceding paragraph shall be reduced by the amount allocated | ||||||
13 | and disbursed
under this paragraph in the preceding calendar | ||||||
14 | year. The Department shall
prepare and certify to the | ||||||
15 | Comptroller for disbursement the allocations made in
| ||||||
16 | accordance with this paragraph.
| ||||||
17 | (d) For the purpose of determining the local governmental | ||||||
18 | unit whose tax is
applicable, a retail sale by a producer of | ||||||
19 | coal or another mineral mined in
Illinois is a sale at retail | ||||||
20 | at the place where the coal or other mineral mined
in Illinois | ||||||
21 | is extracted from the earth. This paragraph does not apply to | ||||||
22 | coal
or another mineral when it is delivered or shipped by the | ||||||
23 | seller to the
purchaser
at a point outside Illinois so that the | ||||||
24 | sale is exempt under the United States
Constitution as a sale | ||||||
25 | in interstate or foreign commerce.
| ||||||
26 | (e) Nothing in this Section shall be construed to authorize |
| |||||||
| |||||||
1 | a county to
impose a
tax upon the privilege of engaging in any | ||||||
2 | business that under the Constitution
of the United States may | ||||||
3 | not be made the subject of taxation by this State.
| ||||||
4 | (e-5) If a county imposes a tax under this Section, the | ||||||
5 | county board may,
by ordinance, discontinue or lower the rate | ||||||
6 | of the tax. If the county board
lowers the tax rate or | ||||||
7 | discontinues the tax, a referendum must be
held in accordance | ||||||
8 | with subsection (a) of this Section in order to increase the
| ||||||
9 | rate of the tax or to reimpose the discontinued tax.
| ||||||
10 | (f) Beginning April 1, 1998, the results of any election | ||||||
11 | authorizing a
proposition to impose a tax
under this Section or | ||||||
12 | effecting a change in the rate of tax, or any ordinance
| ||||||
13 | lowering the rate or discontinuing the tax,
shall be certified
| ||||||
14 | by the
county clerk and filed with the Illinois Department of | ||||||
15 | Revenue
either (i) on or
before the first day of April, | ||||||
16 | whereupon the Department shall proceed to
administer and | ||||||
17 | enforce the tax as of the first day of July next following
the | ||||||
18 | filing; or (ii)
on or before the first day of October, | ||||||
19 | whereupon the
Department shall proceed to administer and | ||||||
20 | enforce the tax as of the first
day of January next following | ||||||
21 | the filing.
| ||||||
22 | (g) When certifying the amount of a monthly disbursement to | ||||||
23 | a county under
this
Section, the Department shall increase or | ||||||
24 | decrease the amounts by an amount
necessary to offset any | ||||||
25 | miscalculation of previous disbursements. The offset
amount | ||||||
26 | shall be the amount erroneously disbursed within the previous 6 |
| |||||||
| |||||||
1 | months
from the time a miscalculation is discovered.
| ||||||
2 | (h) This Section may be cited as the "Special County | ||||||
3 | Occupation Tax
For Public Safety, Public Facilities, or | ||||||
4 | Transportation Law".
| ||||||
5 | (i) For purposes of this Section, "public safety" includes, | ||||||
6 | but is not
limited to, crime prevention, detention, fire | ||||||
7 | fighting, police, medical,
ambulance, or other emergency
| ||||||
8 | services. For the purposes of this Section, "transportation" | ||||||
9 | includes, but
is not limited to, the construction,
maintenance, | ||||||
10 | operation, and improvement of public highways, any other
| ||||||
11 | purpose for which a county may expend funds under the Illinois | ||||||
12 | Highway Code,
and passenger rail transportation. For the | ||||||
13 | purposes of this Section, "public facilities purposes" | ||||||
14 | includes, but is not limited to, the acquisition, development, | ||||||
15 | construction, reconstruction, rehabilitation, improvement, | ||||||
16 | financing, architectural planning, and installation of capital | ||||||
17 | facilities consisting of buildings, structures, and durable | ||||||
18 | equipment and for the acquisition and improvement of real | ||||||
19 | property and interest in real property required, or expected to | ||||||
20 | be required, in connection with the public facilities, for use | ||||||
21 | by the county for the furnishing of governmental services to | ||||||
22 | its citizens, including but not limited to museums and nursing | ||||||
23 | homes. | ||||||
24 | (j) The Department may promulgate rules to implement this | ||||||
25 | amendatory Act of the 95th General Assembly only to the extent | ||||||
26 | necessary to apply the existing rules for the Special County |
| |||||||
| |||||||
1 | Retailers' Occupation Tax for Public Safety to this new purpose | ||||||
2 | for public facilities.
| ||||||
3 | (Source: P.A. 94-781, eff. 5-19-06; 95-474, eff. 1-1-08; | ||||||
4 | 95-1002, eff. 11-20-08.)
| ||||||
5 | (55 ILCS 5/5-1006.7) | ||||||
6 | Sec. 5-1006.7. School facility occupation taxes. | ||||||
7 | (a) The county board of any county may impose a tax upon | ||||||
8 | all persons engaged in the business of selling tangible | ||||||
9 | personal property, other than personal property titled or | ||||||
10 | registered with an agency of this State's government, at retail | ||||||
11 | in the county on the gross receipts from the sales made in the | ||||||
12 | course of business to provide revenue to be used exclusively | ||||||
13 | for school facility purposes if a proposition for the tax has | ||||||
14 | been submitted to the electors of that county and approved by a | ||||||
15 | majority of those voting on the question as provided in | ||||||
16 | subsection (c). The tax under this Section may be imposed only | ||||||
17 | in one-quarter percent increments and may not exceed 1%. | ||||||
18 | This additional tax may not be imposed on the sale 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 that 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 | ||||||
24 | rendering it usable by a disabled person, and insulin, urine | ||||||
25 | testing materials, syringes and needles used by diabetics.
The |
| |||||||
| |||||||
1 | Department of Revenue has full power to administer and enforce | ||||||
2 | this subsection, to collect all taxes and penalties due under | ||||||
3 | this subsection, to dispose of taxes and penalties so collected | ||||||
4 | in the manner provided in this subsection, and to determine all | ||||||
5 | rights to credit memoranda arising on account of the erroneous | ||||||
6 | payment of a tax or penalty under this subsection. The | ||||||
7 | Department shall deposit all taxes and penalties collected | ||||||
8 | under this subsection into a special fund created for that | ||||||
9 | purpose. | ||||||
10 | In the administration of and compliance with this | ||||||
11 | subsection, the Department and persons who are subject to this | ||||||
12 | subsection (i) have the same rights, remedies, privileges, | ||||||
13 | immunities, powers, and duties, (ii) are subject to the same | ||||||
14 | conditions, restrictions, limitations, penalties, and | ||||||
15 | definitions of terms, and (iii) shall employ the same modes of | ||||||
16 | procedure as are set forth in Sections 1 through 1o, 2 through | ||||||
17 | 2-70 (in respect to all provisions contained in those Sections | ||||||
18 | other than the State rate of tax), 2a through 2h, 3 (except as | ||||||
19 | to the disposition of taxes and penalties collected), 4, 5, 5a, | ||||||
20 | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | ||||||
21 | 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | ||||||
22 | and all provisions of the Uniform Penalty and Interest Act as | ||||||
23 | if those provisions were set forth in this subsection. | ||||||
24 | The certificate of registration that is issued by the | ||||||
25 | Department to a retailer under the Retailers' Occupation Tax | ||||||
26 | Act permits the retailer to engage in a business that is |
| |||||||
| |||||||
1 | taxable without registering separately with the Department | ||||||
2 | under an ordinance or resolution under this subsection. | ||||||
3 | Persons subject to any tax imposed under the authority | ||||||
4 | granted in this subsection may reimburse themselves for their | ||||||
5 | seller's tax liability by separately stating that tax as an | ||||||
6 | additional charge, which may be stated in combination, in a | ||||||
7 | single amount, with State tax that sellers are required to | ||||||
8 | collect under the Use Tax Act, pursuant to any bracketed | ||||||
9 | schedules set forth by the Department. | ||||||
10 | (b) If a tax has been imposed under subsection (a), then a | ||||||
11 | service occupation tax must also be imposed at the same rate | ||||||
12 | upon all persons engaged, in the county, in the business of | ||||||
13 | making sales of service, who, as an incident to making those | ||||||
14 | sales of service, transfer tangible personal property within | ||||||
15 | the county as an incident to a sale of service. | ||||||
16 | This tax may not be imposed on sales of food for human | ||||||
17 | consumption that is to be consumed off the premises where it is | ||||||
18 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
19 | prepared for immediate consumption) and prescription and | ||||||
20 | non-prescription 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. | ||||||
24 | The tax imposed under this subsection and all civil | ||||||
25 | penalties that may be assessed as an incident thereof shall be | ||||||
26 | collected and enforced by the Department and deposited into a |
| |||||||
| |||||||
1 | special fund created for that purpose. The Department has full | ||||||
2 | power to administer and enforce this subsection, to collect all | ||||||
3 | taxes and penalties due under this subsection, to dispose of | ||||||
4 | taxes and penalties so collected in the manner provided in this | ||||||
5 | subsection, and to determine all rights to credit memoranda | ||||||
6 | arising on account of the erroneous payment of a tax or penalty | ||||||
7 | under this subsection. | ||||||
8 | In the administration of and compliance with this | ||||||
9 | subsection, the Department and persons who are subject to this | ||||||
10 | subsection shall (i) have the same rights, remedies, | ||||||
11 | privileges, immunities, powers and duties, (ii) be subject to | ||||||
12 | the same conditions, restrictions, limitations, penalties and | ||||||
13 | definition of terms, and (iii) employ the same modes of | ||||||
14 | procedure as are set forth in Sections 2 (except that that | ||||||
15 | reference to State in the definition of supplier maintaining a | ||||||
16 | place of business in this State means the county), 2a through | ||||||
17 | 2d, 3 through 3-50 (in respect to all provisions contained in | ||||||
18 | those Sections other than the State rate of tax), 4 (except | ||||||
19 | that the reference to the State shall be to the county), 5, 7, | ||||||
20 | 8 (except that the jurisdiction to which the tax is a debt to | ||||||
21 | the extent indicated in that Section 8 is the county), 9 | ||||||
22 | (except as to the disposition of taxes and penalties | ||||||
23 | collected), 10, 11, 12 (except the reference therein to Section | ||||||
24 | 2b of the Retailers' Occupation Tax Act), 13 (except that any | ||||||
25 | reference to the State means the county), Section 15, 16, 17, | ||||||
26 | 18, 19, and 20 of the Service Occupation Tax Act and all |
| |||||||
| |||||||
1 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
2 | if those provisions were set forth herein. | ||||||
3 | Persons subject to any tax imposed under the authority | ||||||
4 | granted in this subsection may reimburse themselves for their | ||||||
5 | serviceman's tax liability by separately stating the tax as an | ||||||
6 | additional charge, which may be stated in combination, in a | ||||||
7 | single amount, with State tax that servicemen are authorized to | ||||||
8 | collect under the Service Use Tax Act, pursuant to any | ||||||
9 | bracketed schedules set forth by the Department. | ||||||
10 | (c) The tax under this Section may not be imposed until, by | ||||||
11 | ordinance or resolution of the county board, the question of | ||||||
12 | imposing the tax has been submitted to the electors of the | ||||||
13 | county at a regular election and approved by a majority of the | ||||||
14 | electors voting on the question. Upon a resolution by the | ||||||
15 | county board or a resolution by school district boards that | ||||||
16 | represent at least 51% of the student enrollment within the | ||||||
17 | county, the county board must certify the question to the | ||||||
18 | proper election authority in accordance with the Election Code. | ||||||
19 | The election authority must submit the question in | ||||||
20 | substantially the following form: | ||||||
21 | Shall (name of county) be authorized to impose a | ||||||
22 | retailers' occupation tax and a service occupation tax | ||||||
23 | (commonly referred to as a "sales tax") at a rate of | ||||||
24 | (insert rate) to be used exclusively for school facility | ||||||
25 | purposes? | ||||||
26 | The election authority must record the votes as "Yes" or "No". |
| |||||||
| |||||||
1 | If a majority of the electors voting on the question vote | ||||||
2 | in the affirmative, then the county may, thereafter, impose the | ||||||
3 | tax. | ||||||
4 | For the purposes of this subsection (c), "enrollment" means | ||||||
5 | the head count of the students residing in the county on the | ||||||
6 | last school day of September of each year, which must be | ||||||
7 | reported on the Illinois State Board of Education Public School | ||||||
8 | Fall Enrollment/Housing Report.
| ||||||
9 | (d) The Department shall immediately pay over to the State | ||||||
10 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
11 | collected under this Section to be deposited into the School | ||||||
12 | Facility Occupation Tax Fund, which shall be an unappropriated | ||||||
13 | trust fund held outside the State treasury. | ||||||
14 | On or before the 25th day of each calendar month, the | ||||||
15 | Department shall prepare and certify to the Comptroller the | ||||||
16 | disbursement of stated sums of money to the regional | ||||||
17 | superintendents of schools in counties from which retailers or | ||||||
18 | servicemen have paid taxes or penalties to the Department | ||||||
19 | during the second preceding calendar month. The amount to be | ||||||
20 | paid to each regional superintendent of schools and disbursed | ||||||
21 | to him or her in accordance with 3-14.31 of the School Code, is | ||||||
22 | equal to the amount (not including credit memoranda) collected | ||||||
23 | from the county under this Section during the second preceding | ||||||
24 | calendar month by the Department, (i) less 2% of that amount, | ||||||
25 | which shall be deposited into the Tax Compliance and | ||||||
26 | Administration Fund and shall be used by the Department, |
| |||||||
| |||||||
1 | subject to appropriation, to cover the costs of the Department | ||||||
2 | in administering and enforcing the provisions of this Section, | ||||||
3 | on behalf of the county, (ii) plus an amount that the | ||||||
4 | Department determines is necessary to offset any amounts that | ||||||
5 | were erroneously paid to a different taxing body; (iii) less an | ||||||
6 | amount equal to the amount of refunds made during the second | ||||||
7 | preceding calendar month by the Department on behalf of the | ||||||
8 | county; and (iv) less any amount that the Department determines | ||||||
9 | is necessary to offset any amounts that were payable to a | ||||||
10 | different taxing body but were erroneously paid to the county. | ||||||
11 | When certifying the amount of a monthly disbursement to a | ||||||
12 | regional superintendent of schools under this Section, the | ||||||
13 | Department shall increase or decrease the amounts by an amount | ||||||
14 | necessary to offset any miscalculation of previous | ||||||
15 | disbursements within the previous 6 months from the time a | ||||||
16 | miscalculation is discovered. | ||||||
17 | Within 10 days after receipt by the Comptroller from the | ||||||
18 | Department of the disbursement certification to the regional | ||||||
19 | superintendents of the schools provided for in this Section, | ||||||
20 | the Comptroller shall cause the orders to be drawn for the | ||||||
21 | respective amounts in accordance with directions contained in | ||||||
22 | the certification. | ||||||
23 | If the Department determines that a refund should be made | ||||||
24 | under this Section to a claimant instead of issuing a credit | ||||||
25 | memorandum, then the Department shall notify the Comptroller, | ||||||
26 | who shall cause the order to be drawn for the amount specified |
| |||||||
| |||||||
1 | and to the person named in the notification from the | ||||||
2 | Department. The refund shall be paid by the Treasurer out of | ||||||
3 | the School Facility Occupation Tax Fund.
| ||||||
4 | (e) For the purposes of determining the local governmental | ||||||
5 | unit whose tax is applicable, a retail sale by a producer of | ||||||
6 | coal or another mineral mined in Illinois is a sale at retail | ||||||
7 | at the place where the coal or other mineral mined in Illinois | ||||||
8 | is extracted from the earth. This subsection does not apply to | ||||||
9 | coal or another mineral when it is delivered or shipped by the | ||||||
10 | seller to the purchaser at a point outside Illinois so that the | ||||||
11 | sale is exempt under the United States Constitution as a sale | ||||||
12 | in interstate or foreign commerce. | ||||||
13 | (f) Nothing in this Section may be construed to authorize a | ||||||
14 | county board to impose a tax upon the privilege of engaging in | ||||||
15 | any business that under the Constitution of the United States | ||||||
16 | may not be made the subject of taxation by this State. | ||||||
17 | (g) If a county board imposes a tax under this Section, | ||||||
18 | then the board may, by ordinance, discontinue or reduce the | ||||||
19 | rate of the tax. If, however, a school board issues bonds that | ||||||
20 | are backed by the proceeds of the tax under this Section, then | ||||||
21 | the county board may not reduce the tax rate or discontinue the | ||||||
22 | tax if that rate reduction or discontinuance would inhibit the | ||||||
23 | school board's ability to pay the principal and interest on | ||||||
24 | those bonds as they become due. If the county board reduces the | ||||||
25 | tax rate or discontinues the tax, then a referendum must be | ||||||
26 | held in accordance with subsection (c) of this Section in order |
| |||||||
| |||||||
1 | to increase the rate of the tax or to reimpose the discontinued | ||||||
2 | tax. | ||||||
3 | The results of any election that authorizes a proposition | ||||||
4 | to impose a tax under this Section or to change the rate of the | ||||||
5 | tax along with an ordinance imposing the tax, or any ordinance | ||||||
6 | that lowers the rate or discontinues the tax, must be certified | ||||||
7 | by the county clerk and filed with the Illinois Department of | ||||||
8 | Revenue either (i) on or before the first day of April, | ||||||
9 | whereupon the Department shall proceed to administer and | ||||||
10 | enforce the tax or change in the rate as of the first day of | ||||||
11 | July next following the filing; or (ii) on or before the first | ||||||
12 | day of October, whereupon the Department shall proceed to | ||||||
13 | administer and enforce the tax or change in the rate as of the | ||||||
14 | first day of January next following the filing. | ||||||
15 | (h) For purposes of this Section, "school facility | ||||||
16 | purposes" means the acquisition, development, construction, | ||||||
17 | reconstruction, rehabilitation, improvement, financing, | ||||||
18 | architectural planning, and installation of capital facilities | ||||||
19 | consisting of buildings, structures, and durable equipment and | ||||||
20 | for the acquisition and improvement of real property and | ||||||
21 | interest in real property required, or expected to be required, | ||||||
22 | in connection with the capital facilities. "School-facility | ||||||
23 | purposes" also includes fire prevention, safety, energy | ||||||
24 | conservation, disabled accessibility, school security, and | ||||||
25 | specified repair purposes set forth under Section 17-2.11 of | ||||||
26 | the School Code. |
| |||||||
| |||||||
1 | (i) This Section does not apply to Cook County. | ||||||
2 | (j) This Section may be cited as the County School Facility | ||||||
3 | Occupation Tax Law.
| ||||||
4 | (Source: P.A. 95-675, eff. 10-11-07.)
| ||||||
5 | (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
| ||||||
6 | Sec. 5-1007. Home Rule County Service Occupation Tax Law. | ||||||
7 | The corporate
authorities of a home rule county may impose a | ||||||
8 | tax upon all persons
engaged, in such county, in the business | ||||||
9 | of making sales of service at the
same rate of tax imposed | ||||||
10 | pursuant to Section 5-1006 of the selling price of
all tangible | ||||||
11 | personal property transferred by such servicemen either in the
| ||||||
12 | form of tangible personal property or in the form of real | ||||||
13 | estate as an
incident to a sale of service. If imposed, such | ||||||
14 | tax shall only be imposed
in 1/4% increments. On and after | ||||||
15 | September 1, 1991, this additional tax may
not be imposed on | ||||||
16 | the sales of food for human consumption which is to be
consumed | ||||||
17 | off the premises where it is sold (other than alcoholic | ||||||
18 | beverages,
soft drinks and food which has been prepared for | ||||||
19 | immediate consumption) and
prescription and nonprescription | ||||||
20 | medicines, drugs, medical appliances , modifications to a motor | ||||||
21 | vehicle for the purpose of rendering it usable by a disabled | ||||||
22 | person, and
insulin, urine testing materials, syringes and | ||||||
23 | needles used by diabetics.
The tax imposed by a home rule | ||||||
24 | county pursuant to this Section and all
civil penalties that | ||||||
25 | may be assessed as an incident thereof shall be
collected and |
| |||||||
| |||||||
1 | enforced by the State Department of Revenue. The certificate
of | ||||||
2 | registration which is issued by the Department to a retailer | ||||||
3 | under the
Retailers' Occupation Tax Act or under the Service | ||||||
4 | Occupation Tax Act shall
permit such registrant to engage in a | ||||||
5 | business which is taxable under any
ordinance or resolution | ||||||
6 | enacted pursuant to this Section without
registering | ||||||
7 | separately with the Department under such ordinance or
| ||||||
8 | resolution or under this Section. The Department shall have | ||||||
9 | full power
to administer and enforce this Section; to collect | ||||||
10 | all taxes and
penalties due hereunder; to dispose of taxes and | ||||||
11 | penalties so collected
in the manner hereinafter provided; and | ||||||
12 | to determine all rights to
credit memoranda arising on account | ||||||
13 | of the erroneous payment of tax or
penalty hereunder. In the | ||||||
14 | administration of, and compliance with, this
Section the | ||||||
15 | Department and persons who are subject to this Section
shall | ||||||
16 | have the same rights, remedies, privileges, immunities, powers | ||||||
17 | and
duties, and be subject to the same conditions, | ||||||
18 | restrictions,
limitations, penalties and definitions of terms, | ||||||
19 | and employ the same
modes of procedure, as are prescribed in | ||||||
20 | Sections 1a-1, 2, 2a, 3 through
3-50 (in respect to all | ||||||
21 | provisions therein other than the State rate of
tax), 4 (except | ||||||
22 | that the reference to the State shall be to the taxing
county), | ||||||
23 | 5, 7, 8 (except that the jurisdiction to which the tax shall be | ||||||
24 | a
debt to the extent indicated in that Section 8 shall be the | ||||||
25 | taxing county),
9 (except as to the disposition of taxes and | ||||||
26 | penalties collected, and
except that the returned merchandise |
| |||||||
| |||||||
1 | credit for this county tax may not be
taken against any State | ||||||
2 | tax), 10, 11, 12 (except the reference therein to
Section 2b of | ||||||
3 | the Retailers' Occupation Tax Act), 13 (except that any
| ||||||
4 | reference to the State shall mean the taxing county), the first | ||||||
5 | paragraph
of Section 15, 16, 17, 18, 19 and 20 of the Service | ||||||
6 | Occupation Tax
Act and Section 3-7 of the Uniform Penalty and | ||||||
7 | Interest Act, as fully as if
those provisions were set forth | ||||||
8 | herein.
| ||||||
9 | No tax may be imposed by a home rule county pursuant to | ||||||
10 | this Section
unless such county also imposes a tax at the same | ||||||
11 | rate pursuant to Section
5-1006.
| ||||||
12 | Persons subject to any tax imposed pursuant to the | ||||||
13 | authority granted
in this Section may reimburse themselves for | ||||||
14 | their serviceman's tax
liability hereunder by separately | ||||||
15 | stating such tax as an additional
charge, which charge may be | ||||||
16 | stated in combination, in a single amount,
with State tax which | ||||||
17 | servicemen are authorized to collect under the
Service Use Tax | ||||||
18 | Act, pursuant to such bracket schedules as the
Department may | ||||||
19 | prescribe.
| ||||||
20 | Whenever the Department determines that a refund should be | ||||||
21 | made under
this Section to a claimant instead of issuing credit | ||||||
22 | memorandum, the
Department shall notify the State Comptroller, | ||||||
23 | who shall cause the
order to be drawn for the amount specified, | ||||||
24 | and to the person named,
in such notification from the | ||||||
25 | Department. Such refund shall be paid by
the State Treasurer | ||||||
26 | out of the home rule county retailers' occupation tax 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 suppliers and | ||||||
7 | servicemen have paid taxes or penalties hereunder to
the | ||||||
8 | Department during the second preceding calendar month. The | ||||||
9 | amount
to be paid to each county shall be the amount (not | ||||||
10 | including credit
memoranda) collected hereunder during the | ||||||
11 | second preceding calendar
month by the Department, and not | ||||||
12 | including an amount equal to the amount
of refunds made during | ||||||
13 | the second preceding calendar month by the
Department on behalf | ||||||
14 | of such county. Within 10 days after receipt, by the
| ||||||
15 | Comptroller, of the disbursement certification to the counties | ||||||
16 | provided for
in this Section to be given to the Comptroller by | ||||||
17 | the Department, the
Comptroller shall cause the orders to be | ||||||
18 | drawn for the respective amounts
in accordance with the | ||||||
19 | directions contained in such certification.
| ||||||
20 | In addition to the disbursement required by the preceding | ||||||
21 | paragraph, an
allocation shall be made in each year to each | ||||||
22 | county which received more
than $500,000 in disbursements under | ||||||
23 | the preceding paragraph in the
preceding calendar year. The | ||||||
24 | allocation shall be in an amount equal to the
average monthly | ||||||
25 | distribution made to each such county under the preceding
| ||||||
26 | paragraph during the preceding calendar year (excluding the 2 |
| |||||||
| |||||||
1 | months of
highest receipts). The distribution made in March of | ||||||
2 | each year
subsequent to the year in which an allocation was | ||||||
3 | made pursuant to this
paragraph and the preceding paragraph | ||||||
4 | shall be reduced by the
amount allocated and disbursed under | ||||||
5 | this paragraph in the preceding
calendar year. The Department | ||||||
6 | shall prepare and certify to the Comptroller
for disbursement | ||||||
7 | the allocations made in accordance with this paragraph.
| ||||||
8 | Nothing in this Section shall be construed to authorize a
| ||||||
9 | county to impose a tax upon the privilege of engaging in any
| ||||||
10 | business which under the Constitution of the United States may | ||||||
11 | not be
made the subject of taxation by this State.
| ||||||
12 | An ordinance or resolution imposing or discontinuing a tax | ||||||
13 | hereunder or
effecting a change in the rate thereof shall be | ||||||
14 | adopted and a certified
copy thereof filed with the Department | ||||||
15 | on or before the first day of June,
whereupon the Department | ||||||
16 | shall proceed to administer and enforce this
Section as of the | ||||||
17 | first day of September next following such adoption and
filing. | ||||||
18 | Beginning January 1, 1992, an ordinance or resolution imposing
| ||||||
19 | or discontinuing the tax hereunder or effecting a change in the | ||||||
20 | rate
thereof shall be adopted and a certified copy thereof | ||||||
21 | filed with the
Department on or before the first day of July, | ||||||
22 | whereupon the Department
shall proceed to administer and | ||||||
23 | enforce this Section as of the first day of
October next | ||||||
24 | following such adoption and filing.
Beginning January 1, 1993, | ||||||
25 | an ordinance or resolution imposing or
discontinuing the tax | ||||||
26 | hereunder or effecting a change in the rate thereof
shall be |
| |||||||
| |||||||
1 | adopted and a certified copy thereof filed with the Department | ||||||
2 | on
or before the first day of October, whereupon the Department | ||||||
3 | shall proceed
to administer and enforce this Section as of the | ||||||
4 | first day of January next
following such adoption and filing.
| ||||||
5 | Beginning April 1, 1998, an ordinance or
resolution imposing or
| ||||||
6 | discontinuing the tax hereunder or effecting a change in the | ||||||
7 | rate thereof shall
either (i) be adopted and a certified copy | ||||||
8 | thereof filed with the Department on
or
before the first day of | ||||||
9 | April, whereupon the Department shall proceed to
administer and | ||||||
10 | enforce this Section as of the first day of July next following
| ||||||
11 | the adoption and filing; or (ii) be adopted and a certified | ||||||
12 | copy thereof filed
with the Department on or before the first | ||||||
13 | day of October, whereupon the
Department shall proceed to | ||||||
14 | administer and enforce this Section as of the first
day of | ||||||
15 | January next following the adoption and filing.
| ||||||
16 | This Section shall be known and may be cited as the Home | ||||||
17 | Rule County
Service Occupation Tax Law.
| ||||||
18 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
19 | (55 ILCS 5/5-1035 rep.)
| ||||||
20 | Section 40. The Counties Code is amended by repealing | ||||||
21 | Section 5-1035. | ||||||
22 | Section 45. The Illinois Municipal Code is amended by | ||||||
23 | changing Sections 8-11-1, 8-11-1.1, 8-11-1.3, 8-11-1.4, | ||||||
24 | 8-11-5, and 11-74.3-6 as follows:
|
| |||||||
| |||||||
1 | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
| ||||||
2 | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | ||||||
3 | Act. The
corporate authorities of a home rule municipality may
| ||||||
4 | impose a tax upon all persons engaged in the business of | ||||||
5 | selling tangible
personal property, other than an item of | ||||||
6 | tangible personal property titled
or registered with an agency | ||||||
7 | of this State's government, at retail in the
municipality on | ||||||
8 | the gross receipts from these sales made in
the course of such | ||||||
9 | business. If imposed, the tax shall only
be imposed in 1/4% | ||||||
10 | increments. On and after September 1, 1991, this
additional tax | ||||||
11 | may not be imposed on the sales of food for human
consumption | ||||||
12 | that is to be consumed off the premises where it
is sold (other | ||||||
13 | than alcoholic beverages, soft drinks and food that has
been | ||||||
14 | prepared for immediate consumption) and prescription and
| ||||||
15 | nonprescription medicines, drugs, medical appliances , | ||||||
16 | modifications to a motor vehicle for the purpose of rendering | ||||||
17 | it usable by a disabled person, and insulin, urine
testing | ||||||
18 | materials, syringes and needles used by diabetics. The tax | ||||||
19 | imposed
by a home rule municipality under this Section and all
| ||||||
20 | civil penalties that may be assessed as an incident of the tax | ||||||
21 | shall
be collected and enforced by the State Department of
| ||||||
22 | Revenue. The certificate of registration that is issued by
the | ||||||
23 | Department to a retailer under the Retailers' Occupation Tax | ||||||
24 | Act
shall permit the retailer to engage in a business that is | ||||||
25 | taxable
under any ordinance or resolution enacted pursuant to
|
| |||||||
| |||||||
1 | this Section without registering separately with the | ||||||
2 | Department under such
ordinance or resolution or under this | ||||||
3 | Section. The Department shall have
full power to administer and | ||||||
4 | enforce this Section; to collect all taxes and
penalties due | ||||||
5 | hereunder; to dispose of taxes and penalties so collected in
| ||||||
6 | the manner hereinafter provided; and to determine all rights to
| ||||||
7 | credit memoranda arising on account of the erroneous payment of | ||||||
8 | tax or
penalty hereunder. In the administration of, and | ||||||
9 | compliance with, this
Section the Department and persons who | ||||||
10 | are subject to this Section shall
have the same rights, | ||||||
11 | remedies, privileges, immunities, powers and duties,
and be | ||||||
12 | subject to the same conditions, restrictions, limitations, | ||||||
13 | penalties
and definitions of terms, and employ the same modes | ||||||
14 | of procedure, as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, | ||||||
15 | 1i, 1j, 1k, 1m, 1n, 2 through
2-65 (in
respect to all | ||||||
16 | provisions therein other than the State rate of tax), 2c, 3
| ||||||
17 | (except as to the disposition of taxes and penalties | ||||||
18 | collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, | ||||||
19 | 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
12 and 13 of the Retailers' | ||||||
20 | Occupation Tax Act and Section 3-7 of the
Uniform Penalty and | ||||||
21 | Interest Act, as fully as if those provisions were
set forth | ||||||
22 | herein.
| ||||||
23 | No tax may be imposed by a home rule municipality under | ||||||
24 | this Section
unless the municipality also imposes a tax at the | ||||||
25 | same rate under Section
8-11-5 of this Act.
| ||||||
26 | Persons subject to any tax imposed under the authority |
| |||||||
| |||||||
1 | granted in this
Section may reimburse themselves for their | ||||||
2 | seller's tax liability hereunder
by separately stating that tax | ||||||
3 | as an additional charge, which charge may be
stated in | ||||||
4 | combination, in a single amount, with State tax which sellers | ||||||
5 | are
required to collect under the Use Tax Act, pursuant to such | ||||||
6 | bracket
schedules as the Department may prescribe.
| ||||||
7 | Whenever the Department determines that a refund should be | ||||||
8 | made under
this Section to a claimant instead of issuing a | ||||||
9 | credit memorandum, the
Department shall notify the State | ||||||
10 | Comptroller, who shall cause the
order to be drawn for the | ||||||
11 | amount specified and to the person named
in the notification | ||||||
12 | from the Department. The refund shall be paid by the
State | ||||||
13 | Treasurer out of the home rule municipal retailers' occupation | ||||||
14 | tax fund.
| ||||||
15 | The Department shall immediately pay over to the State
| ||||||
16 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
17 | collected
hereunder. On or before the 25th day of each calendar | ||||||
18 | month, the
Department shall prepare and certify to the | ||||||
19 | Comptroller the disbursement of
stated sums of money to named | ||||||
20 | municipalities, the municipalities to be
those from which | ||||||
21 | retailers have paid taxes or penalties hereunder to the
| ||||||
22 | Department during the second preceding calendar month. The | ||||||
23 | amount to be
paid to each municipality shall be the amount (not | ||||||
24 | including credit
memoranda) collected hereunder during the | ||||||
25 | second preceding calendar month
by the Department plus an | ||||||
26 | amount the Department determines is necessary to
offset any |
| |||||||
| |||||||
1 | amounts that were erroneously paid to a different
taxing body, | ||||||
2 | and not including an amount equal to the amount of refunds
made | ||||||
3 | during the second preceding calendar month by the Department on
| ||||||
4 | behalf of such municipality, and not including any amount that | ||||||
5 | the Department
determines is necessary to offset any amounts | ||||||
6 | that were payable to a
different taxing body but were | ||||||
7 | erroneously paid to the municipality. Within
10 days after | ||||||
8 | receipt by the Comptroller of the disbursement certification
to | ||||||
9 | the municipalities provided for in this Section to be given to | ||||||
10 | the
Comptroller by the Department, the Comptroller shall cause | ||||||
11 | the orders to be
drawn for the respective amounts in accordance | ||||||
12 | with the directions
contained in the certification.
| ||||||
13 | In addition to the disbursement required by the preceding | ||||||
14 | paragraph and
in order to mitigate delays caused by | ||||||
15 | distribution procedures, an
allocation shall, if requested, be | ||||||
16 | made within 10 days after January 14,
1991, and in November of | ||||||
17 | 1991 and each year thereafter, to each
municipality that | ||||||
18 | received more than $500,000 during the preceding fiscal
year, | ||||||
19 | (July 1 through June 30) whether collected by the municipality | ||||||
20 | or
disbursed by the Department as required by this Section. | ||||||
21 | Within 10 days
after January 14, 1991, participating | ||||||
22 | municipalities shall notify the
Department in writing of their | ||||||
23 | intent to participate. In addition, for the
initial | ||||||
24 | distribution, participating municipalities shall certify to | ||||||
25 | the
Department the amounts collected by the municipality for | ||||||
26 | each month under
its home rule occupation and service |
| |||||||
| |||||||
1 | occupation tax during the period July
1, 1989 through June 30, | ||||||
2 | 1990. The allocation within 10 days after January
14, 1991, | ||||||
3 | shall be in an amount equal to the monthly average of these
| ||||||
4 | amounts, excluding the 2 months of highest receipts. The | ||||||
5 | monthly average
for the period of July 1, 1990 through June 30, | ||||||
6 | 1991 will be determined as
follows: the amounts collected by | ||||||
7 | the municipality under its home rule
occupation and service | ||||||
8 | occupation tax during the period of July 1, 1990
through | ||||||
9 | September 30, 1990, plus amounts collected by the Department | ||||||
10 | and
paid to such municipality through June 30, 1991, excluding | ||||||
11 | the 2 months of
highest receipts. The monthly average for each | ||||||
12 | subsequent period of July 1
through June 30 shall be an amount | ||||||
13 | equal to the monthly distribution made
to each such | ||||||
14 | municipality under the preceding paragraph during this period,
| ||||||
15 | excluding the 2 months of highest receipts. The distribution | ||||||
16 | made in
November 1991 and each year thereafter under this | ||||||
17 | paragraph and the
preceding paragraph shall be reduced by the | ||||||
18 | amount allocated and disbursed
under this paragraph in the | ||||||
19 | preceding period of July 1 through June 30.
The Department | ||||||
20 | shall prepare and certify to the Comptroller for
disbursement | ||||||
21 | the allocations made in accordance with this paragraph.
| ||||||
22 | For the purpose of determining the local governmental unit | ||||||
23 | whose tax
is applicable, a retail sale by a producer of coal or | ||||||
24 | other mineral
mined in Illinois is a sale at retail at the | ||||||
25 | place where the coal or
other mineral mined in Illinois is | ||||||
26 | extracted from the earth. This
paragraph does not apply to coal |
| |||||||
| |||||||
1 | or other mineral when it is delivered
or shipped by the seller | ||||||
2 | to the purchaser at a point outside Illinois so
that the sale | ||||||
3 | is exempt under the United States Constitution as a sale in
| ||||||
4 | interstate or foreign commerce.
| ||||||
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 | An ordinance or resolution imposing or discontinuing a tax | ||||||
10 | hereunder or
effecting a change in the rate thereof shall be | ||||||
11 | adopted and a certified
copy thereof filed with the Department | ||||||
12 | on or before the first day of June,
whereupon the Department | ||||||
13 | shall proceed to administer and enforce this
Section as of the | ||||||
14 | first day of September next following the
adoption and filing. | ||||||
15 | Beginning January 1, 1992, an ordinance or resolution
imposing | ||||||
16 | or discontinuing the tax hereunder or effecting a change in the
| ||||||
17 | rate thereof shall be adopted and a certified copy thereof | ||||||
18 | filed with the
Department on or before the first day of July, | ||||||
19 | whereupon the Department
shall proceed to administer and | ||||||
20 | enforce this Section as of the first day of
October next | ||||||
21 | following such adoption and filing. Beginning January 1, 1993,
| ||||||
22 | an ordinance or resolution imposing or discontinuing the tax | ||||||
23 | hereunder or
effecting a change in the rate thereof shall be | ||||||
24 | adopted and a certified
copy thereof filed with the Department | ||||||
25 | on or before the first day of
October, whereupon the Department | ||||||
26 | shall proceed to administer and enforce
this Section as of the |
| |||||||
| |||||||
1 | first day of January next following the
adoption and filing.
| ||||||
2 | However, a municipality located in a county with a population | ||||||
3 | in excess of
3,000,000 that elected to become a home rule unit | ||||||
4 | at the general primary
election in
1994 may adopt an ordinance | ||||||
5 | or resolution imposing the tax under this Section
and file a | ||||||
6 | certified copy of the ordinance or resolution with the | ||||||
7 | Department on
or before July 1, 1994. The Department shall then | ||||||
8 | proceed to administer and
enforce this Section as of October 1, | ||||||
9 | 1994.
Beginning April 1, 1998, an ordinance or
resolution | ||||||
10 | imposing or
discontinuing the tax hereunder or effecting a | ||||||
11 | change in the rate thereof shall
either (i) be adopted and a | ||||||
12 | certified copy thereof filed with the Department on
or
before | ||||||
13 | the first day of April, whereupon the Department shall proceed | ||||||
14 | to
administer and enforce this Section as of the first day of | ||||||
15 | July next following
the adoption and filing; or (ii) be adopted | ||||||
16 | and a certified copy thereof filed
with the Department on or | ||||||
17 | before the first day of October, whereupon the
Department shall | ||||||
18 | proceed to administer and enforce this Section as of the first
| ||||||
19 | day of January next following the adoption and filing.
| ||||||
20 | When certifying the amount of a monthly disbursement to a | ||||||
21 | municipality
under this Section, the Department shall increase | ||||||
22 | or decrease the amount by
an amount necessary to offset any | ||||||
23 | misallocation of previous disbursements.
The offset amount | ||||||
24 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
25 | months from the time a misallocation is discovered.
| ||||||
26 | Any unobligated balance remaining in the Municipal |
| |||||||
| |||||||
1 | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | ||||||
2 | was abolished by Public Act
85-1135, and all receipts of | ||||||
3 | municipal tax as a result of audits of
liability periods prior | ||||||
4 | to January 1, 1990, shall be paid into the Local
Government Tax | ||||||
5 | Fund for distribution as provided by this Section prior to
the | ||||||
6 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
7 | as a
result of an assessment not arising from an audit, for | ||||||
8 | liability periods
prior to January 1, 1990, shall be paid into | ||||||
9 | the Local Government Tax Fund
for distribution before July 1, | ||||||
10 | 1990, as provided by this Section prior to
the enactment of | ||||||
11 | Public Act 85-1135; and on and after July 1,
1990, all such | ||||||
12 | receipts shall be distributed as provided in Section
6z-18 of | ||||||
13 | the State Finance Act.
| ||||||
14 | As used in this Section, "municipal" and "municipality" | ||||||
15 | means a city,
village or incorporated town, including an | ||||||
16 | incorporated town that has
superseded a civil township.
| ||||||
17 | This Section shall be known and may be cited as the Home | ||||||
18 | Rule Municipal
Retailers' Occupation Tax Act.
| ||||||
19 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
20 | (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
| ||||||
21 | Sec. 8-11-1.1. Non-home rule municipalities; imposition of | ||||||
22 | taxes.
| ||||||
23 | (a) The corporate authorities of a non-home rule
| ||||||
24 | municipality
may, upon approval of the electors of the | ||||||
25 | municipality pursuant to
subsection (b) of this Section, impose |
| |||||||
| |||||||
1 | by ordinance or resolution the tax authorized in Sections | ||||||
2 | 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
| ||||||
3 | (b) The corporate authorities of the municipality may by | ||||||
4 | ordinance or
resolution call for the submission to the electors | ||||||
5 | of the municipality
the question of whether the municipality | ||||||
6 | shall impose such tax. Such
question shall be certified by the | ||||||
7 | municipal clerk to the election
authority in accordance with | ||||||
8 | Section 28-5 of the Election Code and shall be
in a form in | ||||||
9 | accordance with Section 16-7 of the Election Code.
| ||||||
10 | The proposition for the imposition of the non-home rule | ||||||
11 | municipal retailers' occupation tax and non-home rule | ||||||
12 | municipal service occupation tax shall be in substantially the | ||||||
13 | following form: | ||||||
14 | "Shall (insert name of municipality) impose a Non-Home | ||||||
15 | Rule Municipal Retailers' Occupation Tax and Non-Home Rule | ||||||
16 | Municipal Service Occupation Tax at the rate of (insert | ||||||
17 | rate) to be used by the municipality (choose one: [for | ||||||
18 | expenditure on public infrastructure] [for property tax | ||||||
19 | relief] [for expenditure on public infrastructure and for | ||||||
20 | property tax relief]) as provided in Sections 8-11-1.1, | ||||||
21 | 8-11-1.2, 8-11-1.3, and 8-11-1.4 of the Illinois Municipal | ||||||
22 | Code?" | ||||||
23 | The votes shall be recorded as "Yes" or "No". | ||||||
24 | If, in addition to the non-home rule municipal retailers' | ||||||
25 | occupation tax and non-home rule municipal service occupation | ||||||
26 | tax, a municipality opts to impose a non-home rule municipal |
| |||||||
| |||||||
1 | use tax on titled or registered vehicles as provided in Section | ||||||
2 | 8-11-1.5, which tax must be administered and collected by the | ||||||
3 | municipality itself, the proposition above shall also include a | ||||||
4 | reference to the Non-Home Rule Municipal Use Tax and a | ||||||
5 | reference to Section 8-11-1.5 of the Illinois Municipal Code. | ||||||
6 | If a majority of the electors in the municipality voting | ||||||
7 | upon the
question vote in the affirmative, such tax shall be | ||||||
8 | imposed.
| ||||||
9 | An ordinance or resolution imposing the tax of not more | ||||||
10 | than 1% hereunder or
discontinuing the same shall be adopted | ||||||
11 | and a certified copy thereof,
together with a certification | ||||||
12 | that the ordinance or resolution received
referendum approval | ||||||
13 | in the case of the imposition of such tax, filed with
the | ||||||
14 | Department of Revenue, on or before the first day of June, | ||||||
15 | whereupon
the Department shall proceed to administer and | ||||||
16 | enforce
the additional tax or to discontinue the tax, as the | ||||||
17 | case may be, as of the
first day of September next following | ||||||
18 | such adoption and filing.
Beginning January 1, 1992, an | ||||||
19 | ordinance or resolution imposing
or discontinuing the tax | ||||||
20 | hereunder shall be adopted and a certified copy
thereof filed | ||||||
21 | with the Department on or before the first day of July,
| ||||||
22 | whereupon the Department shall proceed to administer and | ||||||
23 | enforce this
Section as of the first day of October next | ||||||
24 | following such adoption and filing.
Beginning January 1, 1993, | ||||||
25 | an 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 October,
| ||||||
2 | whereupon the Department shall proceed to administer and | ||||||
3 | enforce this
Section as of the first day of January next | ||||||
4 | following such adoption and filing.
Beginning October 1, 2002, | ||||||
5 | an ordinance or resolution imposing or
discontinuing the tax
| ||||||
6 | under this Section or effecting a change in the rate of tax | ||||||
7 | must either (i) be
adopted
and a
certified copy of the | ||||||
8 | ordinance or resolution filed with the Department on or
before | ||||||
9 | the first day
of April,
whereupon the Department shall proceed | ||||||
10 | to administer and enforce this Section
as of the
first day of | ||||||
11 | July next following the adoption and filing; or (ii) be adopted
| ||||||
12 | and a certified
copy of the ordinance or resolution filed with | ||||||
13 | the Department on or before the
first day
of October,
whereupon | ||||||
14 | the Department shall proceed to administer and enforce this | ||||||
15 | Section
as of the
first day of January next following the | ||||||
16 | adoption and filing.
| ||||||
17 | Notwithstanding any provision in this Section to the | ||||||
18 | contrary, if, in a non-home rule municipality with more than | ||||||
19 | 150,000 but fewer than 200,000 inhabitants, as determined by | ||||||
20 | the last preceding federal decennial census, an ordinance or | ||||||
21 | resolution under this Section imposes or discontinues a tax or | ||||||
22 | changes the tax rate as of July 1, 2007, then that ordinance or | ||||||
23 | resolution, together with a certification that the
ordinance or | ||||||
24 | resolution received referendum approval in the case of the
| ||||||
25 | imposition of the tax, must be adopted and a certified copy of | ||||||
26 | that ordinance or resolution must be filed with the Department |
| |||||||
| |||||||
1 | on or before May 15, 2007, whereupon the Department shall | ||||||
2 | proceed to administer and enforce this Section as of July 1, | ||||||
3 | 2007.
| ||||||
4 | A non-home rule municipality may file
a
certified copy of | ||||||
5 | an ordinance or resolution, with a certification that the
| ||||||
6 | ordinance or resolution received referendum approval in the | ||||||
7 | case of the
imposition of the tax, with the
Department of | ||||||
8 | Revenue, as required under this Section, only after October 2,
| ||||||
9 | 2000.
| ||||||
10 | The tax authorized by this Section may not be more than 1% | ||||||
11 | and
may be imposed only in 1/4% increments.
| ||||||
12 | (Source: P.A. 94-679, eff. 1-1-06; 95-8, eff. 6-29-07.)
| ||||||
13 | (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
| ||||||
14 | Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' | ||||||
15 | Occupation Tax Act. The corporate authorities of a non-home | ||||||
16 | rule municipality may impose
a tax upon all persons engaged in | ||||||
17 | the business of selling tangible
personal property, other than | ||||||
18 | on an item of tangible personal property
which is titled and | ||||||
19 | registered by an agency of this State's Government,
at retail | ||||||
20 | in the municipality for expenditure on
public infrastructure or | ||||||
21 | for property tax relief or both as defined in
Section 8-11-1.2 | ||||||
22 | if approved by
referendum as provided in Section 8-11-1.1, of | ||||||
23 | the gross receipts from such
sales made in the course of such | ||||||
24 | business.
The tax imposed may not be more than 1% and may be | ||||||
25 | imposed only in
1/4% increments. The tax may not be imposed on |
| |||||||
| |||||||
1 | the sale of food for human
consumption that is
to be consumed | ||||||
2 | off the premises where it is sold (other than alcoholic
| ||||||
3 | beverages, soft drinks, and food that has been prepared for | ||||||
4 | immediate
consumption) and prescription and nonprescription | ||||||
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 by a
municipality | ||||||
9 | pursuant to this Section and all civil penalties that may be
| ||||||
10 | assessed as an incident thereof shall be collected and enforced | ||||||
11 | by the
State Department of Revenue. The certificate of | ||||||
12 | registration which is
issued by the Department to a retailer | ||||||
13 | under the Retailers' Occupation Tax
Act shall permit such | ||||||
14 | retailer to engage in a business which is taxable
under any | ||||||
15 | ordinance or resolution enacted pursuant to
this Section | ||||||
16 | without registering separately with the Department under
such | ||||||
17 | ordinance or resolution or under this Section. The Department
| ||||||
18 | shall have full power to administer and enforce this Section; | ||||||
19 | to collect
all taxes and penalties due hereunder; to dispose of | ||||||
20 | taxes and penalties
so collected in the manner hereinafter | ||||||
21 | provided, and to determine all
rights to credit memoranda, | ||||||
22 | arising on account of the erroneous payment
of tax or penalty | ||||||
23 | hereunder. In the administration of, and compliance
with, this | ||||||
24 | Section, the Department and persons who are subject to this
| ||||||
25 | Section shall have the same rights, remedies, privileges, | ||||||
26 | immunities,
powers and duties, and be subject to the same |
| |||||||
| |||||||
1 | conditions, restrictions,
limitations, penalties and | ||||||
2 | definitions of terms, and employ the same
modes of procedure, | ||||||
3 | as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, | ||||||
4 | 2 through 2-65 (in respect to all provisions therein other than
| ||||||
5 | the State rate of tax), 2c, 3 (except as to the disposition of | ||||||
6 | taxes and
penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, | ||||||
7 | 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and | ||||||
8 | 13 of the Retailers'
Occupation Tax Act and Section 3-7 of the | ||||||
9 | Uniform Penalty and Interest
Act as fully as if those | ||||||
10 | provisions were set forth herein.
| ||||||
11 | No municipality may impose a tax under this Section unless | ||||||
12 | the municipality
also imposes a tax at the same rate under | ||||||
13 | Section 8-11-1.4 of this Code.
| ||||||
14 | Persons subject to any tax imposed pursuant to the | ||||||
15 | authority granted
in this Section may reimburse themselves for | ||||||
16 | their seller's tax
liability hereunder by separately stating | ||||||
17 | such tax as an additional
charge, which charge may be stated in | ||||||
18 | combination, in a single amount,
with State tax which sellers | ||||||
19 | are required to collect under the Use Tax
Act, pursuant to such | ||||||
20 | bracket schedules as the Department may prescribe.
| ||||||
21 | Whenever the Department determines that a refund should be | ||||||
22 | made under
this Section to a claimant instead of issuing a | ||||||
23 | credit memorandum, the
Department shall notify the State | ||||||
24 | Comptroller, who shall cause the
order to be drawn for the | ||||||
25 | amount specified, and to the person named,
in such notification | ||||||
26 | from the Department. Such refund shall be paid by
the State |
| |||||||
| |||||||
1 | Treasurer out of the non-home rule municipal retailers'
| ||||||
2 | occupation tax fund.
| ||||||
3 | The Department shall forthwith pay over to the State | ||||||
4 | Treasurer, ex
officio, as trustee, all taxes and penalties | ||||||
5 | collected hereunder. On or
before the 25th day of each calendar | ||||||
6 | month, the Department shall
prepare and certify to the | ||||||
7 | Comptroller the disbursement of stated sums
of money to named | ||||||
8 | municipalities, the municipalities to be those from
which | ||||||
9 | retailers have paid taxes or penalties hereunder to the | ||||||
10 | Department
during the second preceding calendar month. The | ||||||
11 | amount to be paid to each
municipality shall be the amount (not | ||||||
12 | including credit memoranda) collected
hereunder during the | ||||||
13 | second preceding calendar month by the Department plus
an | ||||||
14 | amount the Department determines is necessary to offset any | ||||||
15 | amounts
which were erroneously paid to a different taxing body, | ||||||
16 | and not including
an amount equal to the amount of refunds made | ||||||
17 | during the second preceding
calendar month by the Department on | ||||||
18 | behalf of such municipality, and not
including any amount which | ||||||
19 | the Department determines is necessary to offset
any amounts | ||||||
20 | which were payable to a different taxing body but were
| ||||||
21 | erroneously paid to the municipality. Within 10 days after | ||||||
22 | receipt, by the
Comptroller, of the disbursement certification | ||||||
23 | to the municipalities,
provided for in this Section to be given | ||||||
24 | to the Comptroller by the
Department, the Comptroller shall | ||||||
25 | cause the orders to be drawn for the
respective amounts in | ||||||
26 | accordance with the directions contained in such
|
| |||||||
| |||||||
1 | certification.
| ||||||
2 | For the purpose of determining the local governmental unit | ||||||
3 | whose tax
is applicable, a retail sale, by a producer of coal | ||||||
4 | or 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 Federal 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 | When certifying the amount of a monthly disbursement to a | ||||||
16 | municipality
under this Section, the Department shall increase | ||||||
17 | or decrease such amount
by an amount necessary to offset any | ||||||
18 | misallocation of previous
disbursements. The offset amount | ||||||
19 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
20 | months from the time a misallocation is discovered.
| ||||||
21 | The Department of Revenue shall implement this amendatory | ||||||
22 | Act of the 91st
General Assembly so as to collect the tax on | ||||||
23 | and after January 1, 2002.
| ||||||
24 | As used in this Section, "municipal" and "municipality" | ||||||
25 | means a city,
village or incorporated town, including an | ||||||
26 | incorporated town which has
superseded a civil township.
|
| |||||||
| |||||||
1 | This Section shall be known and may be cited as the | ||||||
2 | "Non-Home Rule
Municipal Retailers' Occupation Tax Act".
| ||||||
3 | (Source: P.A. 94-679, eff. 1-1-06.)
| ||||||
4 | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
| ||||||
5 | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation | ||||||
6 | Tax Act. The
corporate authorities of a non-home rule | ||||||
7 | municipality may impose a
tax upon all persons engaged, in such | ||||||
8 | municipality, in the business of
making sales of service for | ||||||
9 | expenditure on
public infrastructure or for property tax relief | ||||||
10 | or both as defined in
Section 8-11-1.2 if approved by
| ||||||
11 | referendum as provided in Section 8-11-1.1, of the selling | ||||||
12 | price of
all tangible personal property transferred by such | ||||||
13 | servicemen either in
the form of tangible personal property or | ||||||
14 | in the form of real estate as
an incident to a sale of service.
| ||||||
15 | The tax imposed may not be more than 1% and may be imposed only | ||||||
16 | in
1/4% increments. The tax may not be imposed on the sale of | ||||||
17 | food for human
consumption that is
to be consumed off the | ||||||
18 | premises where it is sold (other than alcoholic
beverages, soft | ||||||
19 | drinks, and food that has been prepared for immediate
| ||||||
20 | consumption) and prescription and nonprescription medicines, | ||||||
21 | drugs, medical
appliances , modifications to a motor vehicle for | ||||||
22 | the purpose of rendering it usable by a disabled person , and | ||||||
23 | insulin, urine testing materials, syringes, and needles used by
| ||||||
24 | diabetics.
The tax imposed by a municipality
pursuant to this | ||||||
25 | Section and all civil penalties that may be assessed as
an |
| |||||||
| |||||||
1 | incident thereof shall be collected and enforced by the State
| ||||||
2 | Department of Revenue. The certificate of registration which is | ||||||
3 | issued
by the Department to a retailer under the Retailers' | ||||||
4 | Occupation Tax
Act or under the Service Occupation Tax Act | ||||||
5 | shall permit
such registrant to engage in a business which 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 1a-1, 2, 2a, 3 | ||||||
21 | through 3-50 (in respect to
all provisions therein other than | ||||||
22 | the State rate of tax), 4 (except that
the reference to the | ||||||
23 | State shall be to the taxing municipality), 5, 7, 8
(except | ||||||
24 | that the jurisdiction to which the tax shall be a debt to the
| ||||||
25 | extent indicated in that Section 8 shall be the taxing | ||||||
26 | municipality), 9
(except as to the disposition of taxes and |
| |||||||
| |||||||
1 | penalties collected, and except
that the returned merchandise | ||||||
2 | credit for this municipal tax may not be
taken against any | ||||||
3 | State tax), 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 shall mean the taxing municipality), the | ||||||
6 | first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the | ||||||
7 | Service Occupation
Tax Act and Section 3-7 of the Uniform | ||||||
8 | Penalty and Interest Act, as fully
as if those provisions were | ||||||
9 | set forth herein.
| ||||||
10 | No municipality may impose a tax under this Section unless | ||||||
11 | the municipality
also imposes a tax at the same rate under | ||||||
12 | Section 8-11-1.3 of this Code.
| ||||||
13 | Persons subject to any tax imposed pursuant to the | ||||||
14 | authority granted
in this Section may reimburse themselves for | ||||||
15 | their serviceman's tax
liability hereunder by separately | ||||||
16 | stating such tax as an additional
charge, which charge may be | ||||||
17 | stated in combination, in a single amount,
with State tax which | ||||||
18 | servicemen are authorized to collect under the
Service Use Tax | ||||||
19 | Act, pursuant to such bracket schedules as the
Department may | ||||||
20 | prescribe.
| ||||||
21 | Whenever the Department determines that a refund should be | ||||||
22 | made under
this Section to a claimant instead of issuing credit | ||||||
23 | memorandum, the
Department shall notify the State Comptroller, | ||||||
24 | who shall cause the
order to be drawn for the amount specified, | ||||||
25 | and to the person named,
in such notification from the | ||||||
26 | Department. Such refund shall be paid by
the State Treasurer |
| |||||||
| |||||||
1 | out of the municipal retailers' occupation tax fund.
| ||||||
2 | The Department shall forthwith pay over to the State | ||||||
3 | Treasurer,
ex officio, as trustee, all taxes and penalties | ||||||
4 | collected hereunder. On
or before the 25th day of each calendar | ||||||
5 | month, the Department shall
prepare and certify to the | ||||||
6 | Comptroller the disbursement of stated sums
of money to named | ||||||
7 | municipalities, the municipalities to be those from
which | ||||||
8 | suppliers and servicemen have paid taxes or penalties hereunder | ||||||
9 | to
the Department during the second preceding calendar month. | ||||||
10 | The amount
to be paid to each municipality shall be the amount | ||||||
11 | (not including credit
memoranda) collected hereunder during | ||||||
12 | the second preceding calendar
month by the Department, and not | ||||||
13 | including an amount equal to the amount
of refunds made during | ||||||
14 | the second preceding calendar month by the
Department on behalf | ||||||
15 | of such municipality. Within 10 days
after receipt, by the | ||||||
16 | Comptroller, of the disbursement certification to
the | ||||||
17 | municipalities and the General Revenue Fund, provided for in | ||||||
18 | this
Section to be given to the Comptroller by the Department, | ||||||
19 | the
Comptroller shall cause the orders to be drawn for the | ||||||
20 | respective
amounts in accordance with the directions contained | ||||||
21 | in such
certification.
| ||||||
22 | The Department of Revenue shall implement this amendatory | ||||||
23 | Act of the 91st
General Assembly so as to collect the tax on | ||||||
24 | and after January 1, 2002.
| ||||||
25 | Nothing in this Section shall be construed to authorize a
| ||||||
26 | municipality to impose a tax upon the privilege of engaging in |
| |||||||
| |||||||
1 | any
business which under the constitution of the United States | ||||||
2 | may not be
made the subject of taxation by this State.
| ||||||
3 | As used in this Section, "municipal" or "municipality" | ||||||
4 | means or refers to
a city, village or incorporated town, | ||||||
5 | including an incorporated town which
has superseded a civil | ||||||
6 | township.
| ||||||
7 | This Section shall be known and may be cited as the | ||||||
8 | "Non-Home Rule Municipal
Service Occupation Tax Act".
| ||||||
9 | (Source: P.A. 94-679, eff. 1-1-06.)
| ||||||
10 | (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
| ||||||
11 | Sec. 8-11-5. Home Rule Municipal Service Occupation Tax | ||||||
12 | Act. The
corporate authorities of a home rule municipality may
| ||||||
13 | impose a tax upon all persons engaged, in such municipality, in | ||||||
14 | the
business of making sales of service at the same rate of tax | ||||||
15 | imposed
pursuant to Section 8-11-1, of the selling price of all | ||||||
16 | tangible personal
property transferred by such servicemen | ||||||
17 | either in the form of tangible
personal property or in the form | ||||||
18 | of real estate as an incident to a sale of
service. If imposed, | ||||||
19 | such tax shall only be imposed in 1/4% increments. On
and after | ||||||
20 | September 1, 1991, this additional tax may not be imposed on | ||||||
21 | the
sales of food for human consumption which is to be consumed | ||||||
22 | off the
premises where it is sold (other than alcoholic | ||||||
23 | beverages, soft
drinks and food which has been prepared for | ||||||
24 | immediate consumption) and
prescription and nonprescription | ||||||
25 | medicines, drugs, medical appliances , modifications to a motor |
| |||||||
| |||||||
1 | vehicle for the purpose of rendering it usable by a disabled | ||||||
2 | person, and
insulin, urine testing materials, syringes and | ||||||
3 | needles used by diabetics.
The tax imposed by a home rule | ||||||
4 | municipality
pursuant to this Section and all civil penalties | ||||||
5 | that may be assessed as
an incident thereof shall be collected | ||||||
6 | and enforced by the State
Department of Revenue. The | ||||||
7 | certificate of registration which is issued
by the Department | ||||||
8 | to a retailer under the Retailers' Occupation Tax
Act or under | ||||||
9 | the Service Occupation Tax Act shall permit
such registrant to | ||||||
10 | engage in a business which is taxable under any
ordinance or | ||||||
11 | resolution enacted pursuant to this Section without
| ||||||
12 | registering separately with the Department under such | ||||||
13 | ordinance or
resolution or under this Section. The Department | ||||||
14 | shall have full power
to administer and enforce this Section; | ||||||
15 | to collect all taxes and
penalties due hereunder; to dispose of | ||||||
16 | taxes and penalties so collected
in the manner hereinafter | ||||||
17 | provided, and to determine all rights to
credit memoranda | ||||||
18 | arising on account of the erroneous payment of tax or
penalty | ||||||
19 | hereunder. In the administration of, and compliance with, this
| ||||||
20 | Section the Department and persons who are subject to this | ||||||
21 | Section
shall have the same rights, remedies, privileges, | ||||||
22 | immunities, powers and
duties, and be subject to the same | ||||||
23 | conditions, restrictions,
limitations, penalties and | ||||||
24 | definitions of terms, and employ the same
modes of procedure, | ||||||
25 | as are prescribed in Sections 1a-1, 2, 2a, 3 through
3-50 (in | ||||||
26 | respect to all provisions therein other than the State rate of
|
| |||||||
| |||||||
1 | tax), 4 (except that the reference to the State shall be to the | ||||||
2 | taxing
municipality), 5, 7, 8 (except that the jurisdiction to | ||||||
3 | which the tax shall
be a debt to the extent indicated in that | ||||||
4 | Section 8 shall be the taxing
municipality), 9 (except as to | ||||||
5 | the disposition of taxes and penalties
collected, and except | ||||||
6 | that the returned merchandise credit for this
municipal tax may | ||||||
7 | not be taken against any State tax), 10, 11, 12
(except the | ||||||
8 | reference therein to Section 2b of the Retailers' Occupation
| ||||||
9 | Tax Act), 13 (except that any reference to the State shall mean | ||||||
10 | the
taxing municipality), the first paragraph of Section 15, | ||||||
11 | 16, 17
(except that credit memoranda issued hereunder may not | ||||||
12 | be used to
discharge any State tax liability), 18, 19 and 20 of | ||||||
13 | the 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 tax may be imposed by a home rule municipality pursuant | ||||||
17 | to this
Section unless such municipality also imposes a tax at | ||||||
18 | the same rate
pursuant to Section 8-11-1 of this Act.
| ||||||
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 home rule 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,
provided for in this Section to be given to the | ||||||
24 | Comptroller by the
Department, the Comptroller shall cause the | ||||||
25 | orders to be drawn for the
respective amounts in accordance | ||||||
26 | with the directions contained in such
certification.
|
| |||||||
| |||||||
1 | In addition to the disbursement required by the preceding | ||||||
2 | paragraph and
in order to mitigate delays caused by | ||||||
3 | distribution procedures, an
allocation shall, if requested, be | ||||||
4 | made within 10 days after January 14, 1991,
and in November of | ||||||
5 | 1991 and each year thereafter, to each municipality that
| ||||||
6 | received more than $500,000 during the preceding fiscal year, | ||||||
7 | (July 1 through
June 30) whether collected by the municipality | ||||||
8 | or disbursed by the Department
as required by this Section. | ||||||
9 | Within 10 days after January 14, 1991,
participating | ||||||
10 | municipalities shall notify the Department in writing of their
| ||||||
11 | intent to participate. In addition, for the initial | ||||||
12 | distribution,
participating municipalities shall certify to | ||||||
13 | the Department the amounts
collected by the municipality for | ||||||
14 | each month under its home rule occupation and
service | ||||||
15 | occupation tax during the period July 1, 1989 through June 30, | ||||||
16 | 1990.
The allocation within 10 days after January 14, 1991,
| ||||||
17 | shall be in an amount equal to the monthly average of these | ||||||
18 | amounts,
excluding the 2 months of highest receipts. Monthly | ||||||
19 | average for the period
of July 1, 1990 through June 30, 1991 | ||||||
20 | will be determined as follows: the
amounts collected by the | ||||||
21 | municipality under its home rule occupation and
service | ||||||
22 | occupation tax during the period of July 1, 1990 through | ||||||
23 | September 30,
1990, plus amounts collected by the Department | ||||||
24 | and paid to such
municipality through June 30, 1991, excluding | ||||||
25 | the 2 months of highest
receipts. The monthly average for each | ||||||
26 | subsequent period of July 1 through
June 30 shall be an amount |
| |||||||
| |||||||
1 | equal to the monthly distribution made to each
such | ||||||
2 | municipality under the preceding paragraph during this period,
| ||||||
3 | excluding the 2 months of highest receipts. The distribution | ||||||
4 | made in
November 1991 and each year thereafter under this | ||||||
5 | paragraph and the
preceding paragraph shall be reduced by the | ||||||
6 | amount allocated and disbursed
under this paragraph in the | ||||||
7 | preceding period of July 1 through June 30.
The Department | ||||||
8 | shall prepare and certify to the Comptroller for
disbursement | ||||||
9 | the allocations made in accordance with this paragraph.
| ||||||
10 | Nothing in this Section shall be construed to authorize a
| ||||||
11 | municipality to impose a tax upon the privilege of engaging in | ||||||
12 | any
business which under the constitution of the United States | ||||||
13 | may not be
made the subject of taxation by this State.
| ||||||
14 | An ordinance or resolution imposing or discontinuing a 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 June,
whereupon the Department | ||||||
18 | shall proceed to administer and enforce this
Section as of the | ||||||
19 | first day of September next following such adoption and
filing. | ||||||
20 | Beginning January 1, 1992, an ordinance or resolution imposing | ||||||
21 | or
discontinuing the tax hereunder or effecting a change in the | ||||||
22 | rate thereof
shall be adopted and a certified copy thereof | ||||||
23 | filed with the Department on
or before the first day of July, | ||||||
24 | whereupon the Department shall proceed to
administer and | ||||||
25 | enforce this Section as of the first day of October next
| ||||||
26 | following such adoption and filing. Beginning January 1, 1993, |
| |||||||
| |||||||
1 | an ordinance
or resolution imposing or discontinuing the 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 October, whereupon
the Department | ||||||
5 | shall proceed to administer and enforce this Section as of
the | ||||||
6 | first day of January next following such adoption and filing.
| ||||||
7 | However, a municipality located in a county with a population | ||||||
8 | in excess of
3,000,000 that elected to become a home rule unit | ||||||
9 | at the general primary
election in 1994 may adopt an ordinance | ||||||
10 | or resolution imposing the tax under
this Section and file a | ||||||
11 | certified copy of the ordinance or resolution with the
| ||||||
12 | Department on or before July 1, 1994. The Department shall then | ||||||
13 | proceed to
administer and enforce this Section as of October 1, | ||||||
14 | 1994.
Beginning April 1, 1998, an ordinance or
resolution | ||||||
15 | imposing or
discontinuing the tax hereunder or effecting a | ||||||
16 | change in the rate thereof shall
either (i) be adopted and a | ||||||
17 | certified copy thereof filed with the Department on
or
before | ||||||
18 | the first day of April, whereupon the Department shall proceed | ||||||
19 | to
administer and enforce this Section as of the first day of | ||||||
20 | July next following
the adoption and filing; or (ii) be adopted | ||||||
21 | and a certified copy thereof filed
with the Department on or | ||||||
22 | before the first day of October, whereupon the
Department shall | ||||||
23 | proceed to administer and enforce this Section as of the first
| ||||||
24 | day of January next following the adoption and filing.
| ||||||
25 | Any unobligated balance remaining in the Municipal | ||||||
26 | Retailers' Occupation
Tax Fund on December 31, 1989, which fund |
| |||||||
| |||||||
1 | was abolished by Public Act
85-1135, and all receipts of | ||||||
2 | municipal tax as a result of audits of
liability periods prior | ||||||
3 | to January 1, 1990, shall be paid into the Local
Government Tax | ||||||
4 | Fund, for distribution as provided by this Section prior to
the | ||||||
5 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
6 | as a
result of an assessment not arising from an audit, for | ||||||
7 | liability periods
prior to January 1, 1990, shall be paid into | ||||||
8 | the Local Government Tax Fund
for distribution before July 1, | ||||||
9 | 1990, as provided by this Section prior to
the enactment of | ||||||
10 | Public Act 85-1135, and on and after July 1, 1990, all
such | ||||||
11 | receipts shall be distributed as provided in Section 6z-18 of | ||||||
12 | the
State Finance Act.
| ||||||
13 | As used in this Section, "municipal" and "municipality" | ||||||
14 | means a city,
village or incorporated town, including an | ||||||
15 | incorporated town which has
superseded a civil township.
| ||||||
16 | This Section shall be known and may be cited as the Home | ||||||
17 | Rule Municipal
Service Occupation Tax Act.
| ||||||
18 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
19 | (65 ILCS 5/11-74.3-6) | ||||||
20 | Sec. 11-74.3-6. Business district revenue and obligations. | ||||||
21 | (a) If the corporate authorities of a municipality have | ||||||
22 | approved a business district development or redevelopment plan | ||||||
23 | and have elected to impose a tax by ordinance pursuant to | ||||||
24 | subsections (b), (c), or (d) of this Section, each year after | ||||||
25 | the date of the approval of the ordinance and until all |
| |||||||
| |||||||
1 | business district project costs and all municipal obligations | ||||||
2 | financing the business district project costs, if any, have | ||||||
3 | been paid in accordance with the business district development | ||||||
4 | or redevelopment plan, but in no event longer than 23 years | ||||||
5 | after the date of adoption of the ordinance approving the | ||||||
6 | business district development or redevelopment plan, all | ||||||
7 | amounts generated by the retailers' occupation tax and service | ||||||
8 | occupation tax shall be collected and the tax shall be enforced | ||||||
9 | by the Department of Revenue in the same manner as all | ||||||
10 | retailers' occupation taxes and service occupation taxes | ||||||
11 | imposed in the municipality imposing the tax and all amounts | ||||||
12 | generated by the hotel operators' occupation tax shall be | ||||||
13 | collected and the tax shall be enforced by the municipality in | ||||||
14 | the same manner as all hotel operators' occupation taxes | ||||||
15 | imposed in the municipality imposing the tax. The corporate | ||||||
16 | authorities of the municipality shall deposit the proceeds of | ||||||
17 | the taxes imposed under subsections (b), (c), and (d) into a | ||||||
18 | special fund held by the corporate authorities of the | ||||||
19 | municipality called the Business District Tax Allocation Fund | ||||||
20 | for the purpose of paying business district project costs and | ||||||
21 | obligations incurred in the payment of those costs. | ||||||
22 | (b) The corporate authorities of a municipality that has | ||||||
23 | established a business district under this Division 74.3 may, | ||||||
24 | by ordinance or resolution, impose a Business District | ||||||
25 | Retailers' Occupation Tax upon all persons engaged in the | ||||||
26 | business of selling tangible personal property, other than an |
| |||||||
| |||||||
1 | item of tangible personal property titled or registered with an | ||||||
2 | agency of this State's government, at retail in the business | ||||||
3 | district at a rate not to exceed 1% of the gross receipts from | ||||||
4 | the sales made in the course of such business, to be imposed | ||||||
5 | only in 0.25% increments. The tax may not be imposed on food | ||||||
6 | for human consumption that is to be consumed off the premises | ||||||
7 | where it is sold (other than alcoholic beverages, soft drinks, | ||||||
8 | and food that has been prepared for immediate consumption),
| ||||||
9 | prescription and nonprescription medicines, drugs, medical | ||||||
10 | appliances, modifications to a motor vehicle for the purpose of | ||||||
11 | rendering it usable by a disabled person, and insulin, urine | ||||||
12 | testing materials, syringes, and needles used by diabetics, for | ||||||
13 | human use. | ||||||
14 | The tax imposed under this subsection and all civil | ||||||
15 | penalties that may be assessed as an incident thereof shall be | ||||||
16 | collected and enforced by the Department of Revenue. The | ||||||
17 | certificate of registration that is issued by the Department to | ||||||
18 | a retailer under the Retailers' Occupation Tax Act shall permit | ||||||
19 | the retailer to engage in a business that is taxable under any | ||||||
20 | ordinance or resolution enacted pursuant to this subsection | ||||||
21 | without registering separately with the Department under such | ||||||
22 | ordinance or resolution or under this subsection. The | ||||||
23 | Department of Revenue shall have full power to administer and | ||||||
24 | enforce this subsection; to collect all taxes and penalties due | ||||||
25 | under this subsection in the manner hereinafter provided; and | ||||||
26 | to determine all rights to credit memoranda arising on account |
| |||||||
| |||||||
1 | of the erroneous payment of tax or penalty under this | ||||||
2 | subsection. In the administration of, and compliance with, this | ||||||
3 | subsection, the Department and persons who are subject to this | ||||||
4 | subsection shall have the same rights, remedies, privileges, | ||||||
5 | immunities, powers and duties, and be subject to the same | ||||||
6 | conditions, restrictions, limitations, penalties, exclusions, | ||||||
7 | exemptions, and definitions of terms and employ the same modes | ||||||
8 | of procedure, as are prescribed in Sections 1, 1a through 1o, 2 | ||||||
9 | through 2-65 (in respect to all provisions therein other than | ||||||
10 | the State rate of tax), 2c through 2h, 3 (except as to the | ||||||
11 | disposition of taxes and penalties collected), 4, 5, 5a, 5c, | ||||||
12 | 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, | ||||||
13 | 12, 13, and 14 of the Retailers' Occupation Tax Act and all | ||||||
14 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
15 | if those provisions were set forth herein. | ||||||
16 | Persons subject to any tax imposed under this subsection | ||||||
17 | may reimburse themselves for their seller's tax liability under | ||||||
18 | this subsection by separately stating the tax as an additional | ||||||
19 | charge, which charge may be stated in combination, in a single | ||||||
20 | amount, with State taxes that sellers are required to collect | ||||||
21 | under the Use Tax Act, in accordance with such bracket | ||||||
22 | schedules as the Department may prescribe. | ||||||
23 | Whenever the Department determines that a refund should be | ||||||
24 | made under this subsection to a claimant instead of issuing a | ||||||
25 | credit memorandum, the Department shall notify the State | ||||||
26 | Comptroller, who shall cause the order to be drawn for the |
| |||||||
| |||||||
1 | amount specified and to the person named in the notification | ||||||
2 | from the Department. The refund shall be paid by the State | ||||||
3 | Treasurer out of the business district retailers' occupation | ||||||
4 | tax fund. | ||||||
5 | The Department shall immediately pay over to the State | ||||||
6 | Treasurer, ex officio, as trustee, all taxes, penalties, and | ||||||
7 | interest collected under this subsection for deposit into the | ||||||
8 | business district retailers' occupation tax fund. On or before | ||||||
9 | the 25th day of each calendar month, the Department shall | ||||||
10 | prepare and certify to the Comptroller the disbursement of | ||||||
11 | stated sums of money to named municipalities from the business | ||||||
12 | district retailers' occupation tax fund, the municipalities to | ||||||
13 | be those from which retailers have paid taxes or penalties | ||||||
14 | under this subsection to the Department during the second | ||||||
15 | preceding calendar month. The amount to be paid to each | ||||||
16 | municipality shall be the amount (not including credit | ||||||
17 | memoranda) collected under this subsection during the second | ||||||
18 | preceding calendar month by the Department plus an amount the | ||||||
19 | Department determines is necessary to offset any amounts that | ||||||
20 | were erroneously paid to a different taxing body, and not | ||||||
21 | including an amount equal to the amount of refunds made during | ||||||
22 | the second preceding calendar month by the Department, less 2% | ||||||
23 | of that amount, which shall be deposited into the Tax | ||||||
24 | Compliance and Administration Fund and shall be used by the | ||||||
25 | Department, subject to appropriation, to cover the costs of the | ||||||
26 | Department in administering and enforcing the provisions of |
| |||||||
| |||||||
1 | this subsection, on behalf of such municipality, and not | ||||||
2 | including any amount that the Department determines is | ||||||
3 | necessary to offset any amounts that were payable to a | ||||||
4 | different taxing body but were erroneously paid to the | ||||||
5 | municipality. Within 10 days after receipt by the Comptroller | ||||||
6 | of the disbursement certification to the municipalities | ||||||
7 | provided for in this subsection to be given to the Comptroller | ||||||
8 | by the Department, the Comptroller shall cause the orders to be | ||||||
9 | drawn for the respective amounts in accordance with the | ||||||
10 | directions contained in the certification. The proceeds of the | ||||||
11 | tax paid to municipalities under this subsection shall be | ||||||
12 | deposited into the Business District Tax Allocation Fund by the | ||||||
13 | municipality.
| ||||||
14 | An ordinance or resolution imposing or discontinuing the | ||||||
15 | tax under this subsection or effecting a change in the rate | ||||||
16 | thereof shall either (i) be adopted and a certified copy | ||||||
17 | thereof filed with the Department on or before the first day of | ||||||
18 | April, whereupon the Department, if all other requirements of | ||||||
19 | this subsection are met, shall proceed to administer and | ||||||
20 | enforce this subsection as of the first day of July next | ||||||
21 | following the adoption and filing; or (ii) be adopted and a | ||||||
22 | certified copy thereof filed with the Department on or before | ||||||
23 | the first day of October, whereupon, if all other requirements | ||||||
24 | of this subsection are met, the Department shall proceed to | ||||||
25 | administer and enforce this subsection as of the first day of | ||||||
26 | January next following the adoption and filing. |
| |||||||
| |||||||
1 | The Department of Revenue shall not administer or enforce | ||||||
2 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
3 | the tax under this subsection, until the municipality also | ||||||
4 | provides, in the manner prescribed by the Department, the | ||||||
5 | boundaries of the business district and each address in the | ||||||
6 | business district in such a way that the Department can | ||||||
7 | determine by its address whether a business is located in the | ||||||
8 | business district. The municipality must provide this boundary | ||||||
9 | and address information to the Department on or before April 1 | ||||||
10 | for administration and enforcement of the tax under this | ||||||
11 | subsection by the Department beginning on the following July 1 | ||||||
12 | and on or before October 1 for administration and enforcement | ||||||
13 | of the tax under this subsection by the Department beginning on | ||||||
14 | the following January 1. The Department of Revenue shall not | ||||||
15 | administer or enforce any change made to the boundaries of a | ||||||
16 | business district or any address change, addition, or deletion | ||||||
17 | until the municipality reports the boundary change or address | ||||||
18 | change, addition, or deletion to the Department in the manner | ||||||
19 | prescribed by the Department. The municipality must provide | ||||||
20 | this boundary change information or address change, addition, | ||||||
21 | or deletion to the Department on or before April 1 for | ||||||
22 | administration and enforcement by the Department of the change | ||||||
23 | beginning on the following July 1 and on or before October 1 | ||||||
24 | for administration and enforcement by the Department of the | ||||||
25 | change beginning on the following January 1. The retailers in | ||||||
26 | the business district shall be responsible for charging the tax |
| |||||||
| |||||||
1 | imposed under this subsection. If a retailer is incorrectly | ||||||
2 | included or excluded from the list of those required to collect | ||||||
3 | the tax under this subsection, both the Department of Revenue | ||||||
4 | and the retailer shall be held harmless if they reasonably | ||||||
5 | relied on information provided by the municipality. | ||||||
6 | A municipality that imposes the tax under this subsection | ||||||
7 | must submit to the Department of Revenue any other information | ||||||
8 | as the Department may require for the administration and | ||||||
9 | enforcement of the tax.
| ||||||
10 | When certifying the amount of a monthly disbursement to a | ||||||
11 | municipality under this subsection, the Department shall | ||||||
12 | increase or decrease the amount by an amount necessary to | ||||||
13 | offset any misallocation of previous disbursements. The offset | ||||||
14 | amount shall be the amount erroneously disbursed within the | ||||||
15 | previous 6 months from the time a misallocation is discovered. | ||||||
16 | Nothing in this subsection shall be construed to authorize | ||||||
17 | the municipality to impose a tax upon the privilege of engaging | ||||||
18 | in any business which under the Constitution of the United | ||||||
19 | States may not be made the subject of taxation by this State. | ||||||
20 | If a tax is imposed under this subsection (b), a tax shall | ||||||
21 | also be imposed under subsection (c) of this Section. | ||||||
22 | (c) If a tax has been imposed under subsection (b), a | ||||||
23 | Business District Service Occupation Tax shall also be imposed | ||||||
24 | upon all persons engaged, in the business district, in the | ||||||
25 | business of making sales of service, who, as an incident to | ||||||
26 | making those sales of service, transfer tangible personal |
| |||||||
| |||||||
1 | property within the business district, either in the form of | ||||||
2 | tangible personal property or in the form of real estate as an | ||||||
3 | incident to a sale of service. The tax shall be imposed at the | ||||||
4 | same rate as the tax imposed in subsection (b) and shall not | ||||||
5 | exceed 1% of the selling price of tangible personal property so | ||||||
6 | transferred within the business district, to be imposed only in | ||||||
7 | 0.25% increments. The tax may not be imposed on food for human | ||||||
8 | consumption that is to be consumed off the premises where it is | ||||||
9 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
10 | that has been prepared for immediate consumption),
| ||||||
11 | prescription and nonprescription medicines, 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. | ||||||
16 | The tax imposed under this subsection and all civil | ||||||
17 | penalties that may be assessed as an incident thereof shall be | ||||||
18 | collected and enforced by the Department of Revenue. The | ||||||
19 | certificate of registration which is issued by the Department | ||||||
20 | to a retailer under the Retailers' Occupation Tax Act or under | ||||||
21 | the Service Occupation Tax Act shall permit such registrant to | ||||||
22 | engage in a business which is taxable under any ordinance or | ||||||
23 | resolution enacted pursuant to this subsection without | ||||||
24 | registering separately with the Department under such | ||||||
25 | ordinance or resolution or under this subsection. The | ||||||
26 | Department of Revenue shall have full power to administer and |
| |||||||
| |||||||
1 | enforce this subsection; to collect all taxes and penalties due | ||||||
2 | under this subsection; to dispose of taxes and penalties so | ||||||
3 | collected in the manner hereinafter provided; and to determine | ||||||
4 | all rights to credit memoranda arising on account of the | ||||||
5 | erroneous payment of tax or penalty under this subsection. In | ||||||
6 | the administration of, and compliance with this subsection, the | ||||||
7 | Department and persons who are subject to this subsection shall | ||||||
8 | have the same rights, remedies, privileges, immunities, powers | ||||||
9 | and duties, and be subject to the same conditions, | ||||||
10 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
11 | and definitions of terms and employ the same modes of procedure | ||||||
12 | as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 | ||||||
13 | (in respect to all provisions therein other than the State rate | ||||||
14 | of tax), 4 (except that the reference to the State shall be to | ||||||
15 | the business district), 5, 7, 8 (except that the jurisdiction | ||||||
16 | to which the tax shall be a debt to the extent indicated in | ||||||
17 | that Section 8 shall be the municipality), 9 (except as to the | ||||||
18 | disposition of taxes and penalties collected, and except that | ||||||
19 | the returned merchandise credit for this tax may not be taken | ||||||
20 | against any State tax), 10, 11, 12 (except the reference | ||||||
21 | therein to Section 2b of the Retailers' Occupation Tax Act), 13 | ||||||
22 | (except that any reference to the State shall mean the | ||||||
23 | municipality), the first paragraph of Section 15, and Sections | ||||||
24 | 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all | ||||||
25 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
26 | if those provisions were set forth herein. |
| |||||||
| |||||||
1 | Persons subject to any tax imposed under the authority | ||||||
2 | granted in this subsection may reimburse themselves for their | ||||||
3 | serviceman's tax liability hereunder by separately stating the | ||||||
4 | tax as an additional charge, which charge may be stated in | ||||||
5 | combination, in a single amount, with State tax that servicemen | ||||||
6 | are authorized to collect under the Service Use Tax Act, in | ||||||
7 | accordance with such bracket schedules as the Department may | ||||||
8 | prescribe. | ||||||
9 | Whenever the Department determines that a refund should be | ||||||
10 | made under this subsection to a claimant instead of issuing | ||||||
11 | credit memorandum, the Department shall notify the State | ||||||
12 | Comptroller, who shall cause the order to be drawn for the | ||||||
13 | amount specified, and to the person named, in such notification | ||||||
14 | from the Department. Such refund shall be paid by the State | ||||||
15 | Treasurer out of the business district retailers' occupation | ||||||
16 | tax fund. | ||||||
17 | The Department shall forthwith pay over to the State | ||||||
18 | Treasurer, ex-officio, as trustee, all taxes, penalties, and | ||||||
19 | interest collected under this subsection for deposit into the | ||||||
20 | business district retailers' occupation tax fund. On or before | ||||||
21 | the 25th day of each calendar month, the Department shall | ||||||
22 | prepare and certify to the Comptroller the disbursement of | ||||||
23 | stated sums of money to named municipalities from the business | ||||||
24 | district retailers' occupation tax fund, the municipalities to | ||||||
25 | be those from which suppliers and servicemen have paid taxes or | ||||||
26 | penalties under this subsection to the Department during the |
| |||||||
| |||||||
1 | second preceding calendar month. The amount to be paid to each | ||||||
2 | municipality shall be the amount (not including credit | ||||||
3 | memoranda) collected under this subsection during the second | ||||||
4 | preceding calendar month by the Department, less 2% of that | ||||||
5 | amount, 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 | ||||||
9 | subsection, and not including an amount equal to the amount of | ||||||
10 | refunds made during the second preceding calendar month by the | ||||||
11 | Department on behalf of such municipality. Within 10 days after | ||||||
12 | receipt, by the Comptroller, of the disbursement certification | ||||||
13 | to the municipalities, provided for in this subsection to be | ||||||
14 | given to the Comptroller by the Department, the Comptroller | ||||||
15 | shall cause the orders to be drawn for the respective amounts | ||||||
16 | in accordance with the directions contained in such | ||||||
17 | certification. The proceeds of the tax paid to municipalities | ||||||
18 | under this subsection shall be deposited into the Business | ||||||
19 | District Tax Allocation Fund by the 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 conditions of | ||||||
4 | 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 | Nothing in this subsection shall be construed to authorize | ||||||
17 | the municipality to impose a tax upon the privilege of engaging | ||||||
18 | in any business which under the Constitution of the United | ||||||
19 | States may not be made the subject of taxation by the State. | ||||||
20 | If a tax is imposed under this subsection (c), a tax shall | ||||||
21 | also be imposed under subsection (b) of this Section. | ||||||
22 | (d) By ordinance, a municipality that has established a | ||||||
23 | business district under this Division 74.3 may impose an | ||||||
24 | occupation tax upon all persons engaged in the business | ||||||
25 | district in the business of renting, leasing, or letting rooms | ||||||
26 | in a hotel, as defined in the Hotel Operators' Occupation Tax |
| |||||||
| |||||||
1 | Act, at a rate not to exceed 1% of the gross rental receipts | ||||||
2 | from the renting, leasing, or letting of hotel rooms within the | ||||||
3 | business district, to be imposed only in 0.25% increments, | ||||||
4 | excluding, however, from gross rental receipts the proceeds of | ||||||
5 | renting, leasing, or letting to permanent residents of a hotel, | ||||||
6 | as defined in the Hotel Operators' Occupation Tax Act, and | ||||||
7 | proceeds from the tax imposed under subsection (c) of Section | ||||||
8 | 13 of the Metropolitan Pier and Exposition Authority Act. | ||||||
9 | The tax imposed by the municipality under this subsection | ||||||
10 | and all civil penalties that may be assessed as an incident to | ||||||
11 | that tax shall be collected and enforced by the municipality | ||||||
12 | imposing the tax. The municipality shall have full power to | ||||||
13 | administer and enforce this subsection, to collect all taxes | ||||||
14 | and penalties due under this subsection, to dispose of taxes | ||||||
15 | and penalties so collected in the manner provided in this | ||||||
16 | subsection, and to determine all rights to credit memoranda | ||||||
17 | arising on account of the erroneous payment of tax or penalty | ||||||
18 | under this subsection. In the administration of and compliance | ||||||
19 | with this subsection, the municipality and persons who are | ||||||
20 | subject to this subsection shall have the same rights, | ||||||
21 | remedies, privileges, immunities, powers, and duties, shall be | ||||||
22 | subject to the same conditions, restrictions, limitations, | ||||||
23 | penalties, and definitions of terms, and shall employ the same | ||||||
24 | modes of procedure as are employed with respect to a tax | ||||||
25 | adopted by the municipality under Section 8-3-14 of this Code. | ||||||
26 | Persons subject to any tax imposed under the authority |
| |||||||
| |||||||
1 | granted in this subsection may reimburse themselves for their | ||||||
2 | tax liability for that tax by separately stating that tax as an | ||||||
3 | additional charge, which charge may be stated in combination, | ||||||
4 | in a single amount, with State taxes imposed under the Hotel | ||||||
5 | Operators' Occupation Tax Act, and with any other tax. | ||||||
6 | Nothing in this subsection shall be construed to authorize | ||||||
7 | a municipality to impose a tax upon the privilege of engaging | ||||||
8 | in any business which under the Constitution of the United | ||||||
9 | States may not be made the subject of taxation by this State. | ||||||
10 | The proceeds of the tax imposed under this subsection shall | ||||||
11 | be deposited into the Business District Tax Allocation Fund.
| ||||||
12 | (e) Obligations issued pursuant to subsection (14) of | ||||||
13 | Section 11-74.3-3 shall be retired in the manner provided in | ||||||
14 | the ordinance authorizing the issuance of those obligations by | ||||||
15 | the receipts of taxes levied as authorized in subsections (12) | ||||||
16 | and (13) of Section 11-74.3-3. The ordinance shall pledge all | ||||||
17 | of the amounts in and to be deposited in the Business District | ||||||
18 | Tax Allocation Fund to the payment of business district project | ||||||
19 | costs and obligations. Obligations issued pursuant to | ||||||
20 | subsection (14) of Section 11-74.3-3 may be sold at public or | ||||||
21 | private sale at a price determined by the corporate authorities | ||||||
22 | of the municipality and no referendum approval of the electors | ||||||
23 | shall be required as a condition to the issuance of those | ||||||
24 | obligations. The ordinance authorizing the obligations may | ||||||
25 | require that the obligations contain a recital that they are | ||||||
26 | issued pursuant to subsection (14) of Section 11-74.3-3 and |
| |||||||
| |||||||
1 | this recital shall be conclusive evidence of their validity and | ||||||
2 | of the regularity of their issuance. The corporate authorities | ||||||
3 | of the municipality may also issue its obligations to refund, | ||||||
4 | in whole or in part, obligations previously issued by the | ||||||
5 | municipality under the authority of this Code, whether at or | ||||||
6 | prior to maturity. All obligations issued pursuant to | ||||||
7 | subsection (14) of Section 11-74.3-3 shall not be regarded as | ||||||
8 | indebtedness of the municipality issuing the obligations for | ||||||
9 | the purpose of any limitation imposed by law. | ||||||
10 | (f) When business district costs, including, without | ||||||
11 | limitation, all municipal obligations financing business | ||||||
12 | district project costs incurred under Section 11-74.3-3 have | ||||||
13 | been paid, any surplus funds then remaining in the Business | ||||||
14 | District Tax Allocation Fund shall be distributed to the | ||||||
15 | municipal treasurer for deposit into the municipal general | ||||||
16 | corporate fund. Upon payment of all business district project | ||||||
17 | costs and retirement of obligations, but in no event more than | ||||||
18 | 23 years after the date of adoption of the ordinance approving | ||||||
19 | the business district development or redevelopment plan, the | ||||||
20 | municipality shall adopt an ordinance immediately rescinding | ||||||
21 | the taxes imposed pursuant to subsections (12) and (13) of | ||||||
22 | Section 11-74.3-3.
| ||||||
23 | (Source: P.A. 93-1053, eff. 1-1-05; 93-1089, eff. 3-7-05.)
| ||||||
24 | (65 ILCS 5/8-11-9 rep.)
| ||||||
25 | Section 50. The Illinois Municipal Code is amended by |
| |||||||
| |||||||
1 | repealing Section 8-11-9. | ||||||
2 | Section 55. The Metro-East Park and Recreation District Act | ||||||
3 | is amended by changing Section 30 as follows:
| ||||||
4 | (70 ILCS 1605/30)
| ||||||
5 | Sec. 30. Taxes.
| ||||||
6 | (a) The board shall impose a
tax upon all persons engaged | ||||||
7 | in the business of selling tangible personal
property, other | ||||||
8 | than personal property titled or registered with an agency of
| ||||||
9 | this State's government,
at retail in the District on the gross | ||||||
10 | receipts from the
sales made in the course of business.
This | ||||||
11 | tax
shall be imposed only at the rate of one-tenth of one per | ||||||
12 | cent.
| ||||||
13 | This additional tax may not be imposed on the sales of food | ||||||
14 | for human
consumption that is to be consumed off the premises | ||||||
15 | where it is sold (other
than alcoholic beverages, soft drinks, | ||||||
16 | and food which has been prepared for
immediate consumption) and | ||||||
17 | prescription and non-prescription 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.
The | ||||||
21 | tax imposed by the Board under this Section and
all civil | ||||||
22 | penalties that may be assessed as an incident of the tax shall | ||||||
23 | be
collected and enforced by the Department of Revenue. The | ||||||
24 | 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,
2-5, 2-5.5, 2-10 (in respect to all | ||||||
18 | provisions contained in those Sections
other than the
State | ||||||
19 | rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except | ||||||
20 | provisions
relating to
transaction returns and quarter monthly | ||||||
21 | payments), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 5j, 5k, 5l, | ||||||
22 | 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
| ||||||
23 | Retailers' Occupation Tax Act and the Uniform Penalty and
| ||||||
24 | Interest Act as if those provisions were set forth in this | ||||||
25 | Section.
| ||||||
26 | Persons subject to any tax imposed under the authority |
| |||||||
| |||||||
1 | granted in this
Section may reimburse themselves for their | ||||||
2 | sellers' tax liability by
separately stating the tax as an | ||||||
3 | additional charge, which charge may be stated
in combination, | ||||||
4 | in a single amount, with State tax which sellers are required
| ||||||
5 | to collect under the Use Tax Act, pursuant to such bracketed | ||||||
6 | schedules as the
Department may prescribe.
| ||||||
7 | Whenever the Department determines that a refund should be | ||||||
8 | made under this
Section to a claimant instead of issuing a | ||||||
9 | credit memorandum, the Department
shall notify the State | ||||||
10 | Comptroller, who shall cause the order to be drawn for
the | ||||||
11 | amount specified and to the person named in the notification | ||||||
12 | from the
Department. The refund shall be paid by the State | ||||||
13 | Treasurer out of the
State Metro-East Park and Recreation | ||||||
14 | District Fund.
| ||||||
15 | (b) If a tax has been imposed under subsection (a), a
| ||||||
16 | service occupation tax shall
also be imposed at the same rate | ||||||
17 | upon all persons engaged, in the District, in
the business
of | ||||||
18 | making sales of service, who, as an incident to making those | ||||||
19 | sales of
service, transfer tangible personal property within | ||||||
20 | the District
as an
incident to a sale of service.
This tax may | ||||||
21 | not be imposed on sales of food for human consumption that is | ||||||
22 | to
be consumed off the premises where it is sold (other than | ||||||
23 | alcoholic beverages,
soft drinks, and food prepared for | ||||||
24 | immediate consumption) and prescription and
non-prescription | ||||||
25 | medicines, drugs, medical appliances , modifications to a motor | ||||||
26 | vehicle for the purpose of rendering it usable by a disabled |
| |||||||
| |||||||
1 | person , and insulin, urine
testing materials, syringes, and | ||||||
2 | needles used by diabetics.
The tax imposed under this | ||||||
3 | subsection and all civil penalties that may be
assessed as an | ||||||
4 | incident thereof shall be collected and enforced by the
| ||||||
5 | Department of Revenue. The Department has
full power to
| ||||||
6 | administer and enforce this subsection; to collect all taxes | ||||||
7 | and penalties
due hereunder; to dispose of taxes and penalties | ||||||
8 | so collected in the manner
hereinafter provided; and to | ||||||
9 | determine all rights to credit memoranda
arising on account of | ||||||
10 | the erroneous payment of tax or penalty hereunder.
In the | ||||||
11 | administration of, and compliance with this subsection, the
| ||||||
12 | Department and persons who are subject to this paragraph shall | ||||||
13 | (i) have the
same rights, remedies, privileges, immunities, | ||||||
14 | powers, and duties, (ii) be
subject to the same conditions, | ||||||
15 | restrictions, limitations, penalties,
exclusions, exemptions, | ||||||
16 | and definitions of terms, and (iii) employ the same
modes
of | ||||||
17 | procedure as are prescribed in Sections 2 (except that the
| ||||||
18 | reference to State in the definition of supplier maintaining a | ||||||
19 | place of
business in this State shall mean the District), 2a, | ||||||
20 | 2b, 2c, 3 through
3-50 (in respect to all provisions therein | ||||||
21 | other than the State rate of
tax), 4 (except that the reference | ||||||
22 | to the State shall be to the District),
5, 7, 8 (except that | ||||||
23 | the jurisdiction to which the tax shall be a debt to
the extent | ||||||
24 | indicated in that Section 8 shall be the District), 9 (except | ||||||
25 | as
to the disposition of taxes and penalties collected), 10, | ||||||
26 | 11, 12 (except the
reference therein to Section 2b of the
|
| |||||||
| |||||||
1 | Retailers' Occupation Tax Act), 13 (except that any reference | ||||||
2 | to the State
shall mean the District), Sections 15, 16,
17, 18, | ||||||
3 | 19 and 20 of the Service Occupation Tax Act and
the Uniform | ||||||
4 | Penalty and Interest Act, as fully as if those provisions were
| ||||||
5 | set forth herein.
| ||||||
6 | Persons subject to any tax imposed under the authority | ||||||
7 | granted in
this subsection may reimburse themselves for their | ||||||
8 | serviceman's 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
that servicemen are | ||||||
11 | authorized to collect under the Service Use Tax Act, in
| ||||||
12 | accordance with such bracket schedules as the Department may | ||||||
13 | prescribe.
| ||||||
14 | Whenever the Department determines that a refund should be | ||||||
15 | made under this
subsection to a claimant instead of issuing a | ||||||
16 | credit memorandum, the Department
shall notify the State | ||||||
17 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
18 | amount specified, and to the person named, in the notification
| ||||||
19 | from the Department. The refund shall be paid by the State | ||||||
20 | Treasurer out
of the
State Metro-East Park and Recreation | ||||||
21 | District Fund.
| ||||||
22 | Nothing in this subsection shall be construed to authorize | ||||||
23 | the board
to impose a tax upon the privilege of engaging in any | ||||||
24 | business which under
the Constitution of the United States may | ||||||
25 | not be made the subject of taxation
by the State.
| ||||||
26 | (c) The Department shall immediately pay over to the State |
| |||||||
| |||||||
1 | Treasurer, ex
officio,
as trustee, all taxes and penalties | ||||||
2 | collected under this Section to be
deposited into the
State | ||||||
3 | Metro-East Park and Recreation District Fund, which
shall be an | ||||||
4 | unappropriated trust fund held outside of the State treasury. | ||||||
5 | On
or before the 25th
day of each calendar month, the | ||||||
6 | Department shall prepare and certify to the
Comptroller the | ||||||
7 | disbursement of stated sums of money
pursuant to Section 35 of | ||||||
8 | this Act to the District from which retailers have
paid
taxes | ||||||
9 | or penalties to the Department during the second preceding
| ||||||
10 | calendar month. The amount to be paid to the District shall be | ||||||
11 | the amount (not
including credit memoranda) collected under | ||||||
12 | this Section during the second
preceding
calendar month by the | ||||||
13 | 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 District 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 District. Within 10 days after | ||||||
21 | receipt by the
Comptroller of the disbursement certification to | ||||||
22 | the District 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 | (d) 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 another mineral mined in
Illinois is a sale at | ||||||
3 | retail at the place where the coal or other mineral mined
in | ||||||
4 | Illinois is extracted from the earth. This paragraph does not | ||||||
5 | apply to coal
or another mineral when it is delivered or | ||||||
6 | shipped by the seller to the
purchaser
at a point outside | ||||||
7 | Illinois so that the sale is exempt under the United States
| ||||||
8 | Constitution as a sale in interstate or foreign commerce.
| ||||||
9 | (e) Nothing in this Section shall be construed to authorize | ||||||
10 | the board to
impose a
tax upon the privilege of engaging in any | ||||||
11 | business that under the Constitution
of the United States may | ||||||
12 | not be made the subject of taxation by this State.
| ||||||
13 | (f) An ordinance imposing a tax under this Section or an | ||||||
14 | ordinance extending
the
imposition of a tax to an additional | ||||||
15 | county or counties
shall be certified
by the
board and filed | ||||||
16 | with the Department of Revenue
either (i) on or
before the | ||||||
17 | first day of April, whereupon the Department shall proceed to
| ||||||
18 | administer and enforce the tax as of the first day of July next | ||||||
19 | following
the filing; or (ii)
on or before the first day of | ||||||
20 | October, whereupon the
Department shall proceed to administer | ||||||
21 | and enforce the tax as of the first
day of January next | ||||||
22 | following the filing.
| ||||||
23 | (g) When certifying the amount of a monthly disbursement to | ||||||
24 | the District
under
this
Section, the Department shall increase | ||||||
25 | or decrease the amounts by an amount
necessary to offset any | ||||||
26 | misallocation of previous disbursements. The offset
amount |
| |||||||
| |||||||
1 | shall be the amount erroneously disbursed within the previous 6 | ||||||
2 | months
from the time a misallocation is discovered.
| ||||||
3 | (Source: P.A. 91-103, eff. 7-13-99.)
| ||||||
4 | Section 60. The Regional Transportation Authority Act is | ||||||
5 | amended by changing Section 4.03 as follows:
| ||||||
6 | (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
| ||||||
7 | Sec. 4.03. Taxes.
| ||||||
8 | (a) In order to carry out any of the powers or
purposes of | ||||||
9 | the Authority, the Board may by ordinance adopted with the
| ||||||
10 | concurrence of 12
of the then Directors, impose throughout the
| ||||||
11 | metropolitan region any or all of the taxes provided in this | ||||||
12 | Section.
Except as otherwise provided in this Act, taxes | ||||||
13 | imposed under this
Section and civil penalties imposed incident | ||||||
14 | thereto shall be collected
and enforced by the State Department | ||||||
15 | of Revenue. The Department shall
have the power to administer | ||||||
16 | and enforce the taxes and to determine all
rights for refunds | ||||||
17 | for erroneous payments of the taxes. Nothing in this amendatory | ||||||
18 | Act of the 95th General Assembly is intended to invalidate any | ||||||
19 | taxes currently imposed by the Authority. The increased vote | ||||||
20 | requirements to impose a tax shall only apply to actions taken | ||||||
21 | after the effective date of this amendatory Act of the 95th | ||||||
22 | General Assembly.
| ||||||
23 | (b) The Board may impose a public transportation tax upon | ||||||
24 | all
persons engaged in the metropolitan region in the business |
| |||||||
| |||||||
1 | of selling at
retail motor fuel for operation of motor vehicles | ||||||
2 | upon public highways. The
tax shall be at a rate not to exceed | ||||||
3 | 5% of the gross receipts from the sales
of motor fuel in the | ||||||
4 | course of the business. As used in this Act, the term
"motor | ||||||
5 | fuel" shall have the same meaning as in the Motor Fuel Tax Law. | ||||||
6 | The Board may provide for details of the tax. The provisions of
| ||||||
7 | any tax shall conform, as closely as may be practicable, to the | ||||||
8 | provisions
of the Municipal Retailers Occupation Tax Act, | ||||||
9 | including without limitation,
conformity to penalties with | ||||||
10 | respect to the tax imposed and as to the powers of
the State | ||||||
11 | Department of Revenue to promulgate and enforce rules and | ||||||
12 | regulations
relating to the administration and enforcement of | ||||||
13 | the provisions of the tax
imposed, except that reference in the | ||||||
14 | Act to any municipality shall refer to
the Authority and the | ||||||
15 | tax shall be imposed only with regard to receipts from
sales of | ||||||
16 | motor fuel in the metropolitan region, at rates as limited by | ||||||
17 | this
Section.
| ||||||
18 | (c) In connection with the tax imposed under paragraph (b) | ||||||
19 | of
this Section the Board may impose a tax upon the privilege | ||||||
20 | of using in
the metropolitan region motor fuel for the | ||||||
21 | operation of a motor vehicle
upon public highways, the tax to | ||||||
22 | be at a rate not in excess of the rate
of tax imposed under | ||||||
23 | paragraph (b) of this Section. The Board may
provide for | ||||||
24 | details of the tax.
| ||||||
25 | (d) The Board may impose a motor vehicle parking tax upon | ||||||
26 | the
privilege of parking motor vehicles at off-street parking |
| |||||||
| |||||||
1 | facilities in
the metropolitan region at which a fee is | ||||||
2 | charged, and may provide for
reasonable classifications in and | ||||||
3 | exemptions to the tax, for
administration and enforcement | ||||||
4 | thereof and for civil penalties and
refunds thereunder and may | ||||||
5 | provide criminal penalties thereunder, the
maximum penalties | ||||||
6 | not to exceed the maximum criminal penalties provided
in the | ||||||
7 | Retailers' Occupation Tax Act. The
Authority may collect and | ||||||
8 | enforce the tax itself or by contract with
any unit of local | ||||||
9 | government. The State Department of Revenue shall have
no | ||||||
10 | responsibility for the collection and enforcement unless the
| ||||||
11 | Department agrees with the Authority to undertake the | ||||||
12 | collection and
enforcement. As used in this paragraph, the term | ||||||
13 | "parking facility"
means a parking area or structure having | ||||||
14 | parking spaces for more than 2
vehicles at which motor vehicles | ||||||
15 | are permitted to park in return for an
hourly, daily, or other | ||||||
16 | periodic fee, whether publicly or privately
owned, but does not | ||||||
17 | include parking spaces on a public street, the use
of which is | ||||||
18 | regulated by parking meters.
| ||||||
19 | (e) The Board may impose a Regional Transportation | ||||||
20 | Authority
Retailers' Occupation Tax upon all persons engaged in | ||||||
21 | the business of
selling tangible personal property at retail in | ||||||
22 | the metropolitan region.
In Cook County the tax rate shall be | ||||||
23 | 1.25%
of the gross receipts from sales
of food for human | ||||||
24 | consumption that is to be consumed off the premises
where it is | ||||||
25 | sold (other than alcoholic beverages, soft drinks and food
that | ||||||
26 | has been prepared for immediate consumption) and prescription |
| |||||||
| |||||||
1 | and
nonprescription medicines, drugs, medical appliances and | ||||||
2 | insulin, urine
testing materials, syringes and needles used by | ||||||
3 | diabetics, and 1%
of the
gross receipts from other taxable | ||||||
4 | sales made in the course of that business.
In DuPage, Kane, | ||||||
5 | Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
| ||||||
6 | of the gross receipts from all taxable sales made in the course | ||||||
7 | of that
business. The tax
imposed under this Section and all | ||||||
8 | civil penalties that may be
assessed as an incident thereof | ||||||
9 | shall be collected and enforced by the
State Department of | ||||||
10 | Revenue. The Department shall have full power to
administer and | ||||||
11 | enforce this Section; to collect all taxes and penalties
so | ||||||
12 | collected in the manner hereinafter provided; and to determine | ||||||
13 | all
rights to credit memoranda arising on account of the | ||||||
14 | erroneous payment
of tax or penalty hereunder. In the | ||||||
15 | administration of, and compliance
with this Section, the | ||||||
16 | Department and persons who are subject to this
Section shall | ||||||
17 | have the same rights, remedies, privileges, immunities,
powers | ||||||
18 | and duties, and be subject to the same conditions, | ||||||
19 | restrictions,
limitations, penalties, exclusions, exemptions | ||||||
20 | and definitions of terms,
and employ the same modes of | ||||||
21 | procedure, as are prescribed in Sections 1,
1a, 1a-1, 1c, 1d, | ||||||
22 | 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
provisions | ||||||
23 | therein other than the State rate of tax), 2c, 3 (except as to
| ||||||
24 | the disposition of taxes and penalties collected), 4, 5, 5a, | ||||||
25 | 5b, 5c, 5d,
5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | ||||||
26 | 9, 10, 11, 12 and
13 of the Retailers' Occupation Tax Act and |
| |||||||
| |||||||
1 | Section 3-7 of the
Uniform Penalty and Interest Act, as fully | ||||||
2 | as if those
provisions were set forth herein.
| ||||||
3 | Persons subject to any tax imposed under the authority | ||||||
4 | granted
in this Section may reimburse themselves for their | ||||||
5 | seller's tax
liability hereunder by separately stating the tax | ||||||
6 | as an additional
charge, which charge may be stated in | ||||||
7 | combination in a single amount
with State taxes that sellers | ||||||
8 | are required to collect under the Use
Tax Act, under any | ||||||
9 | bracket schedules the
Department may prescribe.
| ||||||
10 | Whenever the Department determines that a refund should be | ||||||
11 | made under
this Section to a claimant instead of issuing a | ||||||
12 | credit memorandum, the
Department shall notify the State | ||||||
13 | Comptroller, who shall cause the
warrant to be drawn for the | ||||||
14 | amount specified, and to the person named,
in the notification | ||||||
15 | from the Department. The refund shall be paid by
the State | ||||||
16 | Treasurer out of the Regional Transportation Authority tax
fund | ||||||
17 | established under paragraph (n) of this Section.
| ||||||
18 | If a tax is imposed under this subsection (e), a tax shall | ||||||
19 | also
be imposed under subsections (f) and (g) of this Section.
| ||||||
20 | For the purpose of determining whether a tax authorized | ||||||
21 | under this
Section is applicable, a retail sale by a producer | ||||||
22 | of coal or other
mineral mined in Illinois, is a sale at retail | ||||||
23 | at the place where the
coal or other mineral mined in Illinois | ||||||
24 | is extracted from the earth.
This paragraph does not apply to | ||||||
25 | coal or other mineral when it is
delivered or shipped by the | ||||||
26 | seller to the purchaser at a point outside
Illinois so that the |
| |||||||
| |||||||
1 | sale is exempt under the Federal Constitution as a
sale in | ||||||
2 | interstate or foreign commerce.
| ||||||
3 | No tax shall be imposed or collected under this subsection | ||||||
4 | on the sale of a motor vehicle in this State to a resident of | ||||||
5 | another state if that motor vehicle will not be titled in this | ||||||
6 | State.
| ||||||
7 | Nothing in this Section shall be construed to authorize the | ||||||
8 | Regional
Transportation Authority to impose a tax upon the | ||||||
9 | privilege of engaging
in any business that under the | ||||||
10 | Constitution of the United States may
not be made the subject | ||||||
11 | of taxation by this State.
| ||||||
12 | (f) If a tax has been imposed under paragraph (e), a
| ||||||
13 | Regional Transportation Authority Service Occupation
Tax shall
| ||||||
14 | also be imposed upon all persons engaged, in the metropolitan | ||||||
15 | region in
the business of making sales of service, who as an | ||||||
16 | incident to making the sales
of service, transfer tangible | ||||||
17 | personal property within the metropolitan region,
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. In Cook County, the | ||||||
20 | tax rate
shall be: (1) 1.25%
of the serviceman's cost price of | ||||||
21 | food prepared for
immediate consumption and transferred | ||||||
22 | incident to a sale of service subject
to the service occupation | ||||||
23 | tax by an entity licensed under the Hospital
Licensing Act or | ||||||
24 | the Nursing Home Care Act that is located in the metropolitan
| ||||||
25 | region; (2) 1.25%
of the selling price of food for human | ||||||
26 | consumption that is to
be consumed off the premises where it is |
| |||||||
| |||||||
1 | sold (other than alcoholic
beverages, soft drinks and food that | ||||||
2 | has been prepared for immediate
consumption) and prescription | ||||||
3 | and nonprescription medicines, drugs, medical
appliances and | ||||||
4 | insulin, urine testing materials, syringes and needles used
by | ||||||
5 | diabetics; and (3) 1%
of the selling price from other taxable | ||||||
6 | sales of
tangible personal property transferred. In DuPage, | ||||||
7 | Kane, Lake,
McHenry and Will Counties the rate shall be 0.75%
| ||||||
8 | of the selling price
of all tangible personal property | ||||||
9 | transferred.
| ||||||
10 | The tax imposed under this paragraph and all civil
| ||||||
11 | penalties that may be assessed as an incident thereof shall be | ||||||
12 | collected
and enforced by the State Department of Revenue. The | ||||||
13 | Department shall
have full power to administer and enforce this | ||||||
14 | paragraph; to collect all
taxes and penalties due hereunder; to | ||||||
15 | dispose of taxes and penalties
collected in the manner | ||||||
16 | hereinafter provided; and to determine all
rights to credit | ||||||
17 | memoranda arising on account of the erroneous payment
of tax or | ||||||
18 | penalty hereunder. In the administration of and compliance
with | ||||||
19 | this paragraph, the Department and persons who are subject to | ||||||
20 | this
paragraph shall have the same rights, remedies, | ||||||
21 | privileges, immunities,
powers and duties, and be subject to | ||||||
22 | the same conditions, restrictions,
limitations, penalties, | ||||||
23 | exclusions, exemptions and definitions of terms,
and employ the | ||||||
24 | same modes of procedure, as are prescribed in Sections 1a-1, 2,
| ||||||
25 | 2a, 3 through 3-50 (in respect to all provisions therein other | ||||||
26 | than the
State rate of tax), 4 (except that the reference to |
| |||||||
| |||||||
1 | the State shall be to
the Authority), 5, 7, 8 (except that the | ||||||
2 | jurisdiction to which the tax
shall be a debt to the extent | ||||||
3 | indicated in that Section 8 shall be the
Authority), 9 (except | ||||||
4 | as to the disposition of taxes and penalties
collected, and | ||||||
5 | except that the returned merchandise credit for this tax may
| ||||||
6 | not be taken against any State tax), 10, 11, 12 (except the | ||||||
7 | reference
therein to Section 2b of the Retailers' Occupation | ||||||
8 | Tax Act), 13 (except
that any reference to the State shall mean | ||||||
9 | the Authority), the first
paragraph of Section 15, 16, 17, 18, | ||||||
10 | 19 and 20 of the Service
Occupation Tax Act and Section 3-7 of | ||||||
11 | the Uniform Penalty and Interest
Act, as fully as if those | ||||||
12 | provisions were set forth herein.
| ||||||
13 | Persons subject to any tax imposed under the authority | ||||||
14 | granted
in this paragraph may reimburse themselves for their | ||||||
15 | serviceman's tax
liability hereunder by separately stating the | ||||||
16 | tax as an additional
charge, that charge may be stated in | ||||||
17 | combination in a single amount
with State tax that servicemen | ||||||
18 | are authorized to collect under the
Service Use Tax Act, under | ||||||
19 | any bracket schedules the
Department may prescribe.
| ||||||
20 | Whenever the Department determines that a refund should be | ||||||
21 | made under
this paragraph 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 Regional Transportation Authority tax
fund |
| |||||||
| |||||||
1 | established under paragraph (n) of this Section.
| ||||||
2 | Nothing in this paragraph shall be construed to authorize | ||||||
3 | the
Authority to impose a tax upon the privilege of engaging in | ||||||
4 | any business
that under the Constitution of the United States | ||||||
5 | may not be made the
subject of taxation by the State.
| ||||||
6 | (g) If a tax has been imposed under paragraph (e), a tax | ||||||
7 | shall
also be imposed upon the privilege of using in the | ||||||
8 | metropolitan region,
any item of tangible personal property | ||||||
9 | that is purchased outside the
metropolitan region at retail | ||||||
10 | from a retailer, and that is titled or
registered with an | ||||||
11 | agency of this State's government. In Cook County the
tax rate | ||||||
12 | shall be 1%
of the selling price of the tangible personal | ||||||
13 | property,
as "selling price" is defined in the Use Tax Act. In | ||||||
14 | DuPage, Kane, Lake,
McHenry and Will counties the tax rate | ||||||
15 | shall be 0.75%
of the selling price of
the tangible personal | ||||||
16 | property, as "selling price" is defined in the
Use Tax Act. The | ||||||
17 | tax shall be collected from persons whose Illinois
address for | ||||||
18 | titling or registration purposes is given as being in the
| ||||||
19 | metropolitan region. The tax shall be collected by the | ||||||
20 | Department of
Revenue for the Regional Transportation | ||||||
21 | Authority. The tax must be paid
to the State, or an exemption | ||||||
22 | determination must be obtained from the
Department of Revenue, | ||||||
23 | before the title or certificate of registration for
the | ||||||
24 | property may be issued. The tax or proof of exemption may be
| ||||||
25 | transmitted to the Department by way of the State agency with | ||||||
26 | which, or the
State officer with whom, the tangible personal |
| |||||||
| |||||||
1 | property must be titled or
registered if the Department and the | ||||||
2 | State agency or State officer
determine that this procedure | ||||||
3 | will expedite the processing of applications
for title or | ||||||
4 | registration.
| ||||||
5 | The Department shall have full power to administer and | ||||||
6 | enforce this
paragraph; to collect all taxes, penalties and | ||||||
7 | interest due hereunder;
to dispose of taxes, penalties and | ||||||
8 | interest collected in the manner
hereinafter provided; and to | ||||||
9 | determine all rights to credit memoranda or
refunds arising on | ||||||
10 | account of the erroneous payment of tax, penalty or
interest | ||||||
11 | hereunder. In the administration of and compliance with this
| ||||||
12 | paragraph, the Department and persons who are subject to this | ||||||
13 | paragraph
shall have the same rights, remedies, privileges, | ||||||
14 | immunities, powers and
duties, and be subject to the same | ||||||
15 | conditions, restrictions,
limitations, penalties, exclusions, | ||||||
16 | exemptions and definitions of terms
and employ the same modes | ||||||
17 | of procedure, as are prescribed in Sections 2
(except the | ||||||
18 | definition of "retailer maintaining a place of business in this
| ||||||
19 | State"), 3 through 3-80 (except provisions pertaining to the | ||||||
20 | State rate
of tax, and except provisions concerning collection | ||||||
21 | or refunding of the tax
by retailers), 4, 11, 12, 12a, 14, 15, | ||||||
22 | 19 (except the portions pertaining
to claims by retailers and | ||||||
23 | except the last paragraph concerning refunds),
20, 21 and 22 of | ||||||
24 | the Use Tax Act, and are not inconsistent with this
paragraph, | ||||||
25 | as fully as if those provisions were set forth 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 the Regional Transportation Authority tax fund
| ||||||
7 | established under paragraph (n) of this Section.
| ||||||
8 | (h) (Blank). The Authority may impose a replacement vehicle | ||||||
9 | tax of $50 on any
passenger car as defined in Section 1-157 of | ||||||
10 | the Illinois Vehicle Code
purchased within the metropolitan | ||||||
11 | region by or on behalf of an
insurance company to replace a | ||||||
12 | passenger car of
an insured person in settlement of a total | ||||||
13 | loss claim. The tax imposed
may not become effective before the | ||||||
14 | first day of the month following the
passage of the ordinance | ||||||
15 | imposing the tax and receipt of a certified copy
of the | ||||||
16 | ordinance by the Department of Revenue. The Department of | ||||||
17 | Revenue
shall collect the tax for the Authority in accordance | ||||||
18 | with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
| ||||||
19 | The Department shall immediately pay over to the State | ||||||
20 | Treasurer,
ex officio, as trustee, all taxes collected | ||||||
21 | hereunder. On
or before the 25th day of each calendar month, | ||||||
22 | the Department shall
prepare and certify to the Comptroller the | ||||||
23 | disbursement of stated sums
of money to the Authority. The | ||||||
24 | amount to be paid to the Authority shall be
the amount | ||||||
25 | collected hereunder during the second preceding calendar month
| ||||||
26 | by the Department, less any amount determined by the Department |
| |||||||
| |||||||
1 | to be
necessary for the payment of refunds. Within 10 days | ||||||
2 | after receipt by the
Comptroller of the disbursement | ||||||
3 | certification to the Authority provided
for in this Section to | ||||||
4 | be given to the Comptroller by the Department, the
Comptroller | ||||||
5 | shall cause the orders to be drawn for that amount in
| ||||||
6 | accordance with the directions contained in the certification.
| ||||||
7 | (i) The Board may not impose any other taxes except as it | ||||||
8 | may from
time to time be authorized by law to impose.
| ||||||
9 | (j) A certificate of registration issued by the State | ||||||
10 | Department of
Revenue to a retailer under the Retailers' | ||||||
11 | Occupation Tax Act or under the
Service Occupation Tax Act | ||||||
12 | shall permit the registrant to engage in a
business that is | ||||||
13 | taxed under the tax imposed under paragraphs
(b), (e), (f) or | ||||||
14 | (g) of this Section and no additional registration
shall be | ||||||
15 | required under the tax. A certificate issued under the
Use Tax | ||||||
16 | Act or the Service Use Tax Act shall be applicable with regard | ||||||
17 | to
any tax imposed under paragraph (c) of this Section.
| ||||||
18 | (k) The provisions of any tax imposed under paragraph (c) | ||||||
19 | of
this Section shall conform as closely as may be practicable | ||||||
20 | to the
provisions of the Use Tax Act, including
without | ||||||
21 | limitation conformity as to penalties with respect to the tax
| ||||||
22 | imposed and as to the powers of the State Department of Revenue | ||||||
23 | to
promulgate and enforce rules and regulations relating to the
| ||||||
24 | administration and enforcement of the provisions of the tax | ||||||
25 | imposed.
The taxes shall be imposed only on use within the | ||||||
26 | metropolitan region
and at rates as provided in the paragraph.
|
| |||||||
| |||||||
1 | (l) The Board in imposing any tax as provided in paragraphs | ||||||
2 | (b)
and (c) of this Section, shall, after seeking the advice of | ||||||
3 | the State
Department of Revenue, provide means for retailers, | ||||||
4 | users or purchasers
of motor fuel for purposes other than those | ||||||
5 | with regard to which the
taxes may be imposed as provided in | ||||||
6 | those paragraphs to receive refunds
of taxes improperly paid, | ||||||
7 | which provisions may be at variance with the
refund provisions | ||||||
8 | as applicable under the Municipal Retailers
Occupation Tax Act. | ||||||
9 | The State Department of Revenue may provide for
certificates of | ||||||
10 | registration for users or purchasers of motor fuel for purposes
| ||||||
11 | other than those with regard to which taxes may be imposed as | ||||||
12 | provided in
paragraphs (b) and (c) of this Section to | ||||||
13 | facilitate the reporting and
nontaxability of the exempt sales | ||||||
14 | or uses.
| ||||||
15 | (m) Any ordinance imposing or discontinuing any tax under | ||||||
16 | this Section shall
be adopted and a certified copy thereof | ||||||
17 | filed with the Department on or before
June 1, whereupon the | ||||||
18 | Department of Revenue shall proceed to administer and
enforce | ||||||
19 | this Section on behalf of the Regional Transportation Authority | ||||||
20 | as of
September 1 next following such adoption and filing.
| ||||||
21 | Beginning January 1, 1992, an ordinance or resolution imposing | ||||||
22 | or
discontinuing the tax hereunder shall be adopted and a | ||||||
23 | certified copy
thereof filed with the Department on or before | ||||||
24 | the first day of July,
whereupon the Department shall proceed | ||||||
25 | to administer and enforce this
Section as of the first day of | ||||||
26 | October next following such adoption and
filing. Beginning |
| |||||||
| |||||||
1 | January 1, 1993, an ordinance or resolution imposing, | ||||||
2 | increasing, decreasing, or
discontinuing the tax hereunder | ||||||
3 | shall be adopted and a certified copy
thereof filed with the | ||||||
4 | Department,
whereupon the Department shall proceed to | ||||||
5 | administer and enforce this
Section as of the first day of the | ||||||
6 | first month to occur not less than 60 days
following such | ||||||
7 | adoption and filing. Any ordinance or resolution of the | ||||||
8 | Authority imposing a tax under this Section and in effect on | ||||||
9 | August 1, 2007 shall remain in full force and effect and shall | ||||||
10 | be administered by the Department of Revenue under the terms | ||||||
11 | and conditions and rates of tax established by such ordinance | ||||||
12 | or resolution until the Department begins administering and | ||||||
13 | enforcing an increased tax under this Section as authorized by | ||||||
14 | this amendatory Act of the 95th General Assembly. The tax rates | ||||||
15 | authorized by this amendatory Act of the 95th General Assembly | ||||||
16 | are effective only if imposed by ordinance of the Authority.
| ||||||
17 | (n) The State Department of Revenue shall, upon collecting | ||||||
18 | any taxes
as provided in this Section, pay the taxes over to | ||||||
19 | the State Treasurer
as trustee for the Authority. The taxes | ||||||
20 | shall be held in a trust fund
outside the State Treasury. On or | ||||||
21 | before the 25th day of each calendar
month, the State | ||||||
22 | Department of Revenue shall prepare and certify to the
| ||||||
23 | Comptroller of the State of Illinois and
to the Authority (i) | ||||||
24 | the
amount of taxes collected in each County other than Cook | ||||||
25 | County in the
metropolitan region, (ii)
the amount of taxes | ||||||
26 | collected within the City
of Chicago,
and (iii) the amount |
| |||||||
| |||||||
1 | collected in that portion
of Cook County outside of Chicago, | ||||||
2 | each amount less the amount necessary for the payment
of | ||||||
3 | refunds to taxpayers located in those areas described in items | ||||||
4 | (i), (ii), and (iii).
Within 10 days after receipt by the | ||||||
5 | Comptroller of the certification of
the amounts, the | ||||||
6 | Comptroller shall cause an
order to be drawn for the payment of | ||||||
7 | two-thirds of the amounts certified in item (i) of this | ||||||
8 | subsection to the Authority and one-third of the amounts | ||||||
9 | certified in item (i) of this subsection to the respective | ||||||
10 | counties other than Cook County and the amount certified in | ||||||
11 | items (ii) and (iii) of this subsection to the Authority.
| ||||||
12 | In addition to the disbursement required by the preceding | ||||||
13 | paragraph, an
allocation shall be made in July 1991 and each | ||||||
14 | year thereafter to the
Regional Transportation Authority. The | ||||||
15 | allocation shall be made in an
amount equal to the average | ||||||
16 | monthly distribution during the preceding
calendar year | ||||||
17 | (excluding the 2 months of lowest receipts) and the
allocation | ||||||
18 | shall include the amount of average monthly distribution from
| ||||||
19 | the Regional Transportation Authority Occupation and Use Tax | ||||||
20 | Replacement
Fund. The distribution made in July 1992 and each | ||||||
21 | year thereafter under
this paragraph and the preceding | ||||||
22 | paragraph shall be reduced by the amount
allocated and | ||||||
23 | disbursed under this paragraph in the preceding calendar
year. | ||||||
24 | The Department of Revenue shall prepare and certify to the
| ||||||
25 | Comptroller for disbursement the allocations made in | ||||||
26 | accordance with this
paragraph.
|
| |||||||
| |||||||
1 | (o) Failure to adopt a budget ordinance or otherwise to | ||||||
2 | comply with
Section 4.01 of this Act or to adopt a Five-year | ||||||
3 | Capital Program or otherwise to
comply with paragraph (b) of | ||||||
4 | Section 2.01 of this Act shall not affect
the validity of any | ||||||
5 | tax imposed by the Authority otherwise in conformity
with law.
| ||||||
6 | (p) At no time shall a public transportation tax or motor | ||||||
7 | vehicle
parking tax authorized under paragraphs (b), (c) and | ||||||
8 | (d) of this Section
be in effect at the same time as any | ||||||
9 | retailers' occupation, use or
service occupation tax | ||||||
10 | authorized under paragraphs (e), (f) and (g) of
this Section is | ||||||
11 | in effect.
| ||||||
12 | Any taxes imposed under the authority provided in | ||||||
13 | paragraphs (b), (c)
and (d) shall remain in effect only until | ||||||
14 | the time as any tax
authorized by paragraphs (e), (f) or (g) of | ||||||
15 | this Section are imposed and
becomes effective. Once any tax | ||||||
16 | authorized by paragraphs (e), (f) or (g)
is imposed the Board | ||||||
17 | may not reimpose taxes as authorized in paragraphs
(b), (c) and | ||||||
18 | (d) of the Section unless any tax authorized by
paragraphs (e), | ||||||
19 | (f) or (g) of this Section becomes ineffective by means
other | ||||||
20 | than an ordinance of the Board.
| ||||||
21 | (q) Any existing rights, remedies and obligations | ||||||
22 | (including
enforcement by the Regional Transportation | ||||||
23 | Authority) arising under any
tax imposed under paragraphs (b), | ||||||
24 | (c) or (d) of this Section shall not
be affected by the | ||||||
25 | imposition of a tax under paragraphs (e), (f) or (g)
of this | ||||||
26 | Section.
|
| |||||||
| |||||||
1 | (Source: P.A. 95-708, eff. 1-18-08.)
| ||||||
2 | Section 65. The Water Commission Act of 1985 is amended by | ||||||
3 | changing Section 4 as follows:
| ||||||
4 | (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
| ||||||
5 | Sec. 4. (a) The board of commissioners of any county water | ||||||
6 | commission
may, by ordinance, impose throughout the territory | ||||||
7 | of the commission any or
all of the taxes provided in this | ||||||
8 | Section for its corporate purposes.
However, no county water | ||||||
9 | commission may impose any such tax unless the
commission | ||||||
10 | certifies the proposition of imposing the tax to the proper
| ||||||
11 | election officials, who shall submit the proposition to the | ||||||
12 | voters residing
in the territory at an election in accordance | ||||||
13 | with the general election
law, and the proposition has been | ||||||
14 | approved by a majority of those voting on
the proposition.
| ||||||
15 | The proposition shall be in the form provided in Section 5 | ||||||
16 | or shall be
substantially in the following form:
| ||||||
17 | -------------------------------------------------------------
| ||||||
18 | Shall the (insert corporate
| ||||||
19 | name of county water commission) YES
| ||||||
20 | impose (state type of tax or ------------------------
| ||||||
21 | taxes to be imposed) at the NO
| ||||||
22 | rate of 1/4%?
| ||||||
23 | -------------------------------------------------------------
| ||||||
24 | Taxes imposed under this Section and civil penalties |
| |||||||
| |||||||
1 | imposed
incident thereto shall be collected and enforced by the | ||||||
2 | State Department of
Revenue. The Department shall have the | ||||||
3 | power to administer and enforce the
taxes and to determine all | ||||||
4 | rights for refunds for erroneous payments of
the taxes.
| ||||||
5 | (b) The board of commissioners may impose a County Water | ||||||
6 | Commission
Retailers' Occupation Tax upon all persons engaged | ||||||
7 | in the business of
selling tangible personal property at retail | ||||||
8 | in the territory of the
commission at a rate of 1/4% of the | ||||||
9 | gross receipts from the sales made in
the course of such | ||||||
10 | business within the territory. The tax imposed under
this | ||||||
11 | paragraph and all civil penalties that may be assessed as an | ||||||
12 | incident
thereof shall be collected and enforced by the State | ||||||
13 | Department of Revenue.
The Department shall have full power to | ||||||
14 | administer and enforce this
paragraph; to collect all taxes and | ||||||
15 | penalties due hereunder; to dispose of
taxes and penalties so | ||||||
16 | collected in the manner hereinafter provided; and to
determine | ||||||
17 | all rights to credit memoranda arising on account of the
| ||||||
18 | erroneous payment of tax or penalty hereunder. In the | ||||||
19 | administration of,
and compliance with, this paragraph, the | ||||||
20 | Department and persons who are
subject to this paragraph shall | ||||||
21 | have the same rights, remedies, privileges,
immunities, powers | ||||||
22 | and duties, and be subject to the same conditions,
| ||||||
23 | restrictions, limitations, penalties, exclusions, exemptions | ||||||
24 | and
definitions of terms, and employ the same modes of | ||||||
25 | procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1c, 1d, | ||||||
26 | 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions |
| |||||||
| |||||||
1 | therein other than the State rate of tax
except that food for | ||||||
2 | human consumption that is to be consumed off the
premises where | ||||||
3 | it is sold (other than alcoholic beverages, soft drinks, and
| ||||||
4 | food that has been prepared for immediate consumption) and | ||||||
5 | prescription
and nonprescription medicine, drugs, medical | ||||||
6 | appliances , modifications to a motor vehicle for the purpose of | ||||||
7 | rendering it usable by a disabled person, and insulin, urine
| ||||||
8 | testing materials, syringes, and needles used by diabetics, for | ||||||
9 | human use,
shall not be subject to tax hereunder), 2c, 3 | ||||||
10 | (except as to the disposition
of taxes and penalties | ||||||
11 | collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 5k, | ||||||
12 | 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
the Retailers' | ||||||
13 | Occupation Tax Act and Section 3-7 of the Uniform Penalty
and | ||||||
14 | Interest Act, as fully as if those provisions were set forth | ||||||
15 | herein.
| ||||||
16 | Persons subject to any tax imposed under the authority | ||||||
17 | granted in this
paragraph may reimburse themselves for their | ||||||
18 | seller's tax liability
hereunder by separately stating the tax | ||||||
19 | as an additional charge, which
charge may be stated in | ||||||
20 | combination, in a single amount, with State taxes
that sellers | ||||||
21 | are required to collect under the Use Tax Act and under
| ||||||
22 | subsection (e) of Section 4.03 of the Regional Transportation | ||||||
23 | Authority
Act, in accordance with such bracket schedules as the | ||||||
24 | Department may prescribe.
| ||||||
25 | Whenever the Department determines that a refund should be | ||||||
26 | made under this
paragraph to a claimant instead of issuing a |
| |||||||
| |||||||
1 | credit memorandum, the Department
shall notify the State | ||||||
2 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
3 | amount specified, and to the person named, in the notification
| ||||||
4 | from the Department. The refund shall be paid by the State | ||||||
5 | Treasurer out
of a county water commission tax fund established | ||||||
6 | under paragraph (g) of
this Section.
| ||||||
7 | For the purpose of determining whether a tax authorized | ||||||
8 | under this paragraph
is applicable, a retail sale by a producer | ||||||
9 | of coal or other mineral mined
in Illinois is a sale at retail | ||||||
10 | at the place where the coal or other mineral
mined in Illinois | ||||||
11 | is extracted from the earth. This paragraph does not
apply to | ||||||
12 | coal or other mineral when it is delivered or shipped by the | ||||||
13 | seller
to the purchaser at a point outside Illinois so that the | ||||||
14 | sale is exempt
under the Federal Constitution as a sale in | ||||||
15 | interstate or foreign commerce.
| ||||||
16 | If a tax is imposed under this subsection (b) a tax shall | ||||||
17 | also be
imposed under subsections (c) and (d) of this Section.
| ||||||
18 | No tax shall be imposed or collected under this subsection | ||||||
19 | on the sale of a motor vehicle in this State to a resident of | ||||||
20 | another state if that motor vehicle will not be titled in this | ||||||
21 | State.
| ||||||
22 | Nothing in this paragraph shall be construed to authorize a | ||||||
23 | county water
commission to impose a tax upon the privilege of | ||||||
24 | engaging in any
business which under the Constitution of the | ||||||
25 | United States may not be made
the subject of taxation by this | ||||||
26 | State.
|
| |||||||
| |||||||
1 | (c) If a tax has been imposed under subsection (b), a
| ||||||
2 | County Water Commission Service Occupation
Tax shall
also be | ||||||
3 | imposed upon all persons engaged, in the territory of the
| ||||||
4 | commission, in the business of making sales of service, who, as | ||||||
5 | an
incident to making the sales of service, transfer tangible | ||||||
6 | personal
property within the territory. The tax rate shall be | ||||||
7 | 1/4% of the selling
price of tangible personal property so | ||||||
8 | transferred within the territory.
The tax imposed under this | ||||||
9 | paragraph and all civil penalties that may be
assessed as an | ||||||
10 | incident thereof shall be collected and enforced by the
State | ||||||
11 | Department of Revenue. The Department shall have full power to
| ||||||
12 | administer and enforce this paragraph; to collect all taxes and | ||||||
13 | penalties
due hereunder; to dispose of taxes and penalties so | ||||||
14 | collected in the manner
hereinafter provided; and to determine | ||||||
15 | all rights to credit memoranda
arising on account of the | ||||||
16 | erroneous payment of tax or penalty hereunder.
In the | ||||||
17 | administration of, and compliance with, this paragraph, the
| ||||||
18 | Department and persons who are subject to this paragraph shall | ||||||
19 | have the
same rights, remedies, privileges, immunities, powers | ||||||
20 | and duties, and be
subject to the same conditions, | ||||||
21 | restrictions, limitations, penalties,
exclusions, exemptions | ||||||
22 | and definitions of terms, and employ the same modes
of | ||||||
23 | procedure, as are prescribed in Sections 1a-1, 2 (except that | ||||||
24 | the
reference to State in the definition of supplier | ||||||
25 | maintaining a place of
business in this State shall mean the | ||||||
26 | territory of the commission), 2a, 3
through 3-50 (in respect to |
| |||||||
| |||||||
1 | all provisions therein other than the State
rate of tax except | ||||||
2 | that food for human consumption that is to be consumed
off the | ||||||
3 | premises where it is sold (other than alcoholic beverages, soft
| ||||||
4 | drinks, and food that has been prepared for immediate | ||||||
5 | consumption) and
prescription and nonprescription medicines, | ||||||
6 | drugs, medical appliances , modifications to a motor vehicle for | ||||||
7 | the purpose of rendering it usable by a disabled person, and
| ||||||
8 | insulin, urine testing materials, syringes, and needles used by | ||||||
9 | diabetics,
for human use, shall not be subject to tax | ||||||
10 | hereunder), 4 (except that the
reference to the State shall be | ||||||
11 | to the territory of the commission), 5, 7,
8 (except that the | ||||||
12 | jurisdiction to which the tax shall be a debt to the
extent | ||||||
13 | indicated in that Section 8 shall be the commission), 9 (except | ||||||
14 | as
to the disposition of taxes and penalties collected and | ||||||
15 | except that the
returned merchandise credit for this tax may | ||||||
16 | not be taken against any State
tax), 10, 11, 12 (except the | ||||||
17 | reference therein to Section 2b of the
Retailers' Occupation | ||||||
18 | Tax Act), 13 (except that any reference to the State
shall mean | ||||||
19 | the territory of the commission), the first paragraph of | ||||||
20 | Section
15, 15.5, 16, 17, 18, 19 and 20 of the Service | ||||||
21 | Occupation Tax Act as fully
as if those provisions were set | ||||||
22 | forth herein.
| ||||||
23 | Persons subject to any tax imposed under the authority | ||||||
24 | granted in
this paragraph may reimburse themselves for their | ||||||
25 | serviceman's tax liability
hereunder by separately stating the | ||||||
26 | tax as an additional charge, which
charge may be stated in |
| |||||||
| |||||||
1 | combination, in a single amount, with State tax
that servicemen | ||||||
2 | are authorized to collect under the Service Use Tax Act,
and | ||||||
3 | any tax for which servicemen may be liable under subsection (f) | ||||||
4 | of
Sec. 4.03 of the Regional Transportation Authority Act, in | ||||||
5 | accordance
with such bracket schedules as the Department may | ||||||
6 | prescribe.
| ||||||
7 | Whenever the Department determines that a refund should be | ||||||
8 | made under this
paragraph to a claimant instead of issuing a | ||||||
9 | credit memorandum, the Department
shall notify the State | ||||||
10 | Comptroller, who shall cause the warrant to be drawn
for the | ||||||
11 | amount specified, and to the person named, in the notification | ||||||
12 | from
the Department. The refund shall be paid by the State | ||||||
13 | Treasurer out of a
county water commission tax fund established | ||||||
14 | under paragraph (g) of this
Section.
| ||||||
15 | Nothing in this paragraph shall be construed to authorize a | ||||||
16 | county water
commission to impose a tax upon the privilege of | ||||||
17 | engaging in any business
which under the Constitution of the | ||||||
18 | United States may not be made the
subject of taxation by the | ||||||
19 | State.
| ||||||
20 | (d) If a tax has been imposed under subsection (b), a tax | ||||||
21 | shall
also imposed upon the privilege of using, in the | ||||||
22 | territory of the
commission, any item of tangible personal | ||||||
23 | property that is purchased
outside the territory at retail from | ||||||
24 | a retailer, and that is titled or
registered with an agency of | ||||||
25 | this State's government, at a rate of 1/4% of
the selling price | ||||||
26 | of the tangible personal property within the territory,
as |
| |||||||
| |||||||
1 | "selling price" is defined in the Use Tax Act. The tax shall be | ||||||
2 | collected
from persons whose Illinois address for titling or | ||||||
3 | registration purposes
is given as being in the territory. The | ||||||
4 | tax shall be collected by the
Department of Revenue for a | ||||||
5 | county water commission. The tax must be paid
to the State, or | ||||||
6 | an exemption determination must be obtained from the
Department | ||||||
7 | of Revenue, before the title or certificate of registration for
| ||||||
8 | the property may be issued. The tax or proof of exemption may | ||||||
9 | be
transmitted to the Department by way of the State agency | ||||||
10 | with which, or the
State officer with whom, the tangible | ||||||
11 | personal property must be titled or
registered if the | ||||||
12 | Department and the State agency or State officer
determine that | ||||||
13 | this procedure will expedite the processing of applications
for | ||||||
14 | title or registration.
| ||||||
15 | The Department shall have full power to administer and | ||||||
16 | enforce this
paragraph; to collect all taxes, penalties and | ||||||
17 | interest due hereunder; to
dispose of taxes, penalties and | ||||||
18 | interest so collected in the manner
hereinafter provided; and | ||||||
19 | to determine all rights to credit memoranda or
refunds arising | ||||||
20 | on account of the erroneous payment of tax, penalty or
interest | ||||||
21 | hereunder. In the administration of, and compliance with this
| ||||||
22 | paragraph, the Department and persons who are subject to this | ||||||
23 | paragraph
shall have the same rights, remedies, privileges, | ||||||
24 | immunities, powers and
duties, and be subject to the same | ||||||
25 | conditions, restrictions, limitations,
penalties, exclusions, | ||||||
26 | exemptions and definitions of terms and employ the
same modes |
| |||||||
| |||||||
1 | of procedure, as are prescribed in Sections 2 (except the
| ||||||
2 | definition of "retailer maintaining a place of business in this | ||||||
3 | State"), 3
through 3-80 (except provisions pertaining to the | ||||||
4 | State rate of tax,
and except provisions concerning collection | ||||||
5 | or refunding of the tax by
retailers, and except that food for | ||||||
6 | human consumption that is to be
consumed off the premises where | ||||||
7 | it is sold (other than alcoholic beverages,
soft drinks, and | ||||||
8 | food that has been prepared for immediate consumption)
and | ||||||
9 | prescription and nonprescription medicines, drugs, medical | ||||||
10 | appliances , modifications to a motor vehicle for the purpose of | ||||||
11 | rendering it usable by a disabled person,
and insulin, urine | ||||||
12 | testing materials, syringes, and needles used by
diabetics, for | ||||||
13 | human use, shall not be subject to tax hereunder), 4, 11,
12, | ||||||
14 | 12a, 14, 15, 19 (except the portions pertaining to claims by | ||||||
15 | retailers
and except the last paragraph concerning refunds), | ||||||
16 | 20, 21 and 22 of the Use
Tax Act and Section 3-7 of the Uniform | ||||||
17 | Penalty and Interest Act that are
not inconsistent with this | ||||||
18 | paragraph, as fully as if those provisions were
set forth | ||||||
19 | herein.
| ||||||
20 | Whenever the Department determines that a refund should be | ||||||
21 | made under this
paragraph to a claimant instead of issuing a | ||||||
22 | credit memorandum, the Department
shall notify the State | ||||||
23 | Comptroller, who shall cause the order
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 a county water commission tax fund established
|
| |||||||
| |||||||
1 | under paragraph (g) of this Section.
| ||||||
2 | (e) A certificate of registration issued by the State | ||||||
3 | Department of
Revenue to a retailer under the Retailers' | ||||||
4 | Occupation Tax Act or under the
Service Occupation Tax Act | ||||||
5 | shall permit the registrant to engage in a
business that is | ||||||
6 | taxed under the tax imposed under paragraphs (b), (c)
or (d) of | ||||||
7 | this Section and no additional registration shall be required | ||||||
8 | under
the tax. A certificate issued under the Use Tax Act or | ||||||
9 | the Service Use Tax
Act shall be applicable with regard to any | ||||||
10 | tax imposed under paragraph (c)
of this Section.
| ||||||
11 | (f) Any ordinance imposing or discontinuing any tax under | ||||||
12 | this Section
shall be adopted and a certified copy thereof | ||||||
13 | filed with the Department on
or before June 1, whereupon the | ||||||
14 | Department of Revenue shall proceed to
administer and enforce | ||||||
15 | this Section on behalf of the county water
commission as of | ||||||
16 | September 1 next following the adoption and filing.
Beginning | ||||||
17 | January 1, 1992, an ordinance or resolution imposing or
| ||||||
18 | discontinuing the tax hereunder shall be adopted and a | ||||||
19 | certified copy
thereof filed with the Department on or before | ||||||
20 | the first day of July,
whereupon the Department shall proceed | ||||||
21 | to administer and enforce this
Section as of the first day of | ||||||
22 | October next following such adoption and
filing. Beginning | ||||||
23 | January 1, 1993, 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 October,
whereupon the Department shall |
| |||||||
| |||||||
1 | proceed to administer and enforce this
Section as of the first | ||||||
2 | day of January next following such adoption and filing.
| ||||||
3 | (g) The State Department of Revenue shall, upon collecting | ||||||
4 | any taxes as
provided in this Section, pay the taxes over to | ||||||
5 | the State Treasurer as
trustee for the commission. The taxes | ||||||
6 | shall be held in a trust fund outside
the State Treasury. On or | ||||||
7 | before the 25th day of each calendar month, the
State | ||||||
8 | Department of Revenue shall prepare and certify to the | ||||||
9 | Comptroller of
the State of Illinois the amount to be paid to | ||||||
10 | the commission, which shall be
the then balance in the fund, | ||||||
11 | less any amount determined by the Department
to be necessary | ||||||
12 | for the payment of refunds. Within 10 days after receipt by
the | ||||||
13 | Comptroller of the certification of the amount to be paid to | ||||||
14 | the
commission, the Comptroller shall cause an order to be | ||||||
15 | drawn for the payment
for the amount in accordance with the | ||||||
16 | direction in the certification.
| ||||||
17 | (Source: P.A. 92-221, eff. 8-2-01; 93-1068, eff. 1-15-05.)
| ||||||
18 | Section 70. The Environmental Impact Fee Law is amended by | ||||||
19 | changing Section 325 as follows:
| ||||||
20 | (415 ILCS 125/325)
| ||||||
21 | (Section scheduled to be repealed on January 1, 2013)
| ||||||
22 | Sec. 325. Incorporation of other Acts. The provisions of | ||||||
23 | Sections 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, | ||||||
24 | 6c, 8, 9, 10 and 12 (except
to the extent to which the minimum |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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1 | notice requirement for hearings conflicts
with that provided | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | for in Section 16 of the Motor Fuel Tax Law), of the
Retailers' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Occupation Tax Act that are not inconsistent with this Act, and
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Section 3-7 of the Uniform Penalty and Interest Act shall apply | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | as far as
practicable, to the subject matter of this Law to the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | same extent as if those
provisions were included in this Law.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | In addition, Sections 2d, 12, 12a, 13a.8, 14, 15, 16, 17, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | 17a, and 18 of the Motor
Fuel Tax Law shall apply as far as | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | practicable, to the subject matter of this
Law to the same | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | extent as if those provisions were included in this Law.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | References to "taxes" in these incorporated Sections shall | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | be construed to
apply to the administration, payment, and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | remittance of all fees under this
Law.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | (Source: P.A. 95-264, eff. 8-17-07.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | Section 99. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | becoming law.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||