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    AN ACT concerning revenue.

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



 
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    "Section 5. The Illinois Income Tax Act is amended  by 
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adding Section 502.1 as follows:
 
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    (35 ILCS 5/502.1 new)
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    Sec. 502.1. Use tax. Beginning with taxable years ending on 
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or after December 31, 2010, the Department shall print on its 
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standard individual income tax form a provision indicating that 
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if the taxpayer wishes to pay his or her use tax liability, he 
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or she may check a box on the return so indicating and attach a 
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completed use tax return and use tax payment.
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    The individual income tax return instructions shall 
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include information explaining the taxes imposed under the Use 
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Tax Act and informing taxpayers how to file and pay their use 
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tax obligations, including specific information on how to file 
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and pay use tax at the same time as the individual income tax 
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return is filed.
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    This Section shall not apply to any amended return.
 
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    Section 10. The Use Tax Act is amended  by changing Section 
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10 and  by adding Section 10.5 as follows:
 
 


 






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    (35 ILCS 105/10)  (from Ch. 120, par. 439.10)
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    Sec. 10. Except as to motor vehicles, aircraft, watercraft, 
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and
trailers, and except as to cigarettes as defined in the 
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Cigarette Use Tax Act, when tangible personal
property is

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purchased from a retailer for use in this State by a purchaser

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who did not pay the tax imposed by this Act to the retailer, 
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and who does not
file returns with the Department as a retailer 
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under Section 9 of this
Act, such purchaser (by the last day of 
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the month following the calendar
month in which such purchaser 
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makes any payment upon the selling price of
such property) 
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shall, except as provided in this Section, file
a return with 
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the Department and pay the tax upon that portion of the
selling 
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price so paid by the purchaser during the preceding calendar 
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month.
When tangible personal property, including but not 
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limited to motor vehicles
and aircraft, is purchased by a 
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lessor, under a lease for
one year or longer, executed or in 
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effect at the time of purchase to an
interstate carrier for 
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hire, who did not pay the tax imposed by this Act to the

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retailer, such lessor (by the last day of the month following 
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the calendar
month in which such property reverts to the use of 
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such lessor) shall file
a return with the Department and pay 
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the tax upon the fair market value of
such property on the date 
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of such reversion.
However, in determining the fair market 
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value at the time of reversion, the
fair market value of such 
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property shall not exceed the original purchase price
of the 
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property that was paid by the lessor at the time of purchase.

 


 






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Such return shall be filed on
a form prescribed by the 
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Department and shall contain such information as
the Department 
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may reasonably require.  Such return and payment from the

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purchaser shall be submitted to the Department sooner than the 
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last day of
the month after the month in which the purchase is 
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made to the extent that
that may be necessary in order to 
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secure the title to a motor vehicle or
the certificate of 
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registration for an aircraft. However, except as to motor

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vehicles and aircraft, and except as to cigarettes as defined 
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in the Cigarette Use Tax Act, if the
purchaser's annual use tax 
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liability does not exceed $600, the purchaser
may file the 
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return on an annual basis on or before April 15th of the year

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following the year use tax liability was incurred.
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    Beginning with taxable years ending on or after December 
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31, 2010, the Department shall print on its standard individual 
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income tax form a provision indicating that if the taxpayer 
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wishes to pay his or her use tax liability, he or she may check 
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a box on the return so indicating and attach a completed use 
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tax return and use tax payment.  The individual income tax 
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return instructions shall include information explaining the 
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taxes imposed under this Act and informing taxpayers how to 
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file and pay their use tax liability, including specific 
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information on how to file and pay use tax at the same time as 
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the individual income tax return is filed. 
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    If cigarettes, as defined in the Cigarette Use Tax Act, are 
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purchased from a retailer for use in this State by a purchaser 
 


 






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who did not pay the tax imposed by this Act to the retailer, 
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and who does not file returns with the Department as a retailer 
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under Section 9 of this Act, such purchaser must, within 30 
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days after acquiring the cigarettes, file a return with the 
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Department and pay the tax upon that portion of the selling 
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price so paid by the purchaser for the cigarettes. 
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    In addition with respect to motor vehicles,
aircraft, 
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watercraft, and trailers, a purchaser of such tangible personal

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property for use in this
State, who purchases such tangible 
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personal property from an out-of-state
retailer, shall file 
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with the Department, upon a form to be prescribed and
supplied 
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by the Department, a return for each such item of tangible

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personal property purchased, except that if, in the same 
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transaction, (i) a
purchaser of motor vehicles,
aircraft, 
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watercraft, or trailers who is a retailer of motor vehicles,

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aircraft, watercraft, or trailers purchases more than one motor 
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vehicle,
aircraft, watercraft, or trailer for the purpose of 
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resale or (ii) a purchaser
of motor vehicles, aircraft, 
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watercraft, or trailers purchases more
than one motor vehicle, 
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aircraft, watercraft, or trailer for use as qualifying
rolling 
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stock as provided in Section 3-55 of this Act, then the 
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purchaser may
report the purchase of all motor vehicles, 
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aircraft, watercraft, or trailers
involved in that transaction 
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to the Department on a single return prescribed by
the 
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Department.  Such return in the case of motor vehicles and

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aircraft must show the name and address of the seller, the 
 


 






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name, address of
purchaser, the amount of the selling price 
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including the amount allowed by
the retailer for traded in 
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property, if any; the amount allowed by the
retailer for the 
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traded-in tangible personal property, if any, to the
extent to 
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which Section 2 of this Act allows an exemption for the value 
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of
traded-in property; the balance payable after deducting such 
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trade-in
allowance from the total selling price; the amount of 
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tax due from the
purchaser with respect to such transaction; 
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the amount of tax collected
from the purchaser by the retailer 
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on such transaction (or satisfactory
evidence that such tax is 
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not due in that particular instance if that is
claimed to be 
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the fact); the place and date of the sale, a sufficient

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identification of the property sold, and such other information 
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as the
Department may reasonably require.
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    Such return shall be filed not later than 30 days after 
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such motor
vehicle or aircraft is brought into this State for 
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use.
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    For purposes of this Section, "watercraft" means a Class 2, 
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Class 3, or
Class 4 watercraft as defined in Section 3-2 of the 
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Boat Registration and
Safety Act, a personal watercraft, or any 
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boat equipped with an inboard
motor.
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    The return and tax remittance or proof of exemption from 
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the tax that is
imposed by this Act may be transmitted to the 
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Department by way of the
State agency with which, or State 
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officer with whom, the tangible personal
property must be 
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titled or registered (if titling or registration is
required) 
 


 






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if the Department and such agency or State officer determine 
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that
this procedure will expedite the processing of 
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applications for title or
registration.
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    With each such return, the purchaser shall remit the proper 
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amount of tax
due (or shall submit satisfactory evidence that 
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the sale is not taxable if
that is the case), to the Department 
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or its agents, whereupon the
Department shall issue, in the 
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purchaser's name, a tax receipt (or a
certificate of exemption 
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if the Department is satisfied that the particular
sale is tax 
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exempt) which such purchaser may submit to the agency with

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which, or State officer with whom, he must title or register 
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the tangible
personal property that is involved (if titling or 
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registration is required)
in support of such purchaser's 
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application for an Illinois certificate or
other evidence of 
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title or registration to such tangible personal property.
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    When a purchaser pays a tax imposed by this Act directly to 
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the Department,
the Department (upon request therefor from such 
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purchaser) shall issue an
appropriate receipt to such purchaser 
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showing that he has paid such tax to
the Department.  Such 
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receipt shall be sufficient to relieve the purchaser
from 
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further liability for the tax to which such receipt may refer.
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    A user who is liable to pay use tax directly to the 
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Department only
occasionally and not on a frequently recurring 
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basis, and who is not
required to file returns with the 
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Department as a retailer under Section 9
of this Act, or under 
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the "Retailers' Occupation Tax Act", or as a
registrant with 
 


 






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the Department under the "Service Occupation Tax Act" or
the 
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"Service Use Tax Act", need not register with the Department.

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However, if such a user has a frequently recurring direct use 
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tax liability
to pay to the Department, such user shall be 
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required to register with the
Department on forms prescribed by 
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the Department and to obtain and display
a certificate of 
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registration from the Department.  In that event, all of
the 
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provisions of Section 9 of this Act concerning the filing of 
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regular
monthly, quarterly or annual tax returns and all of the 
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provisions of
Section 2a of the "Retailers' Occupation Tax Act" 
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concerning the
requirements for registrants to post bond or 
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other security with the
Department, as the provisions of such 
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sections now exist or may hereafter
be amended, shall apply to 
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such users to the same extent as if such
provisions were 
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included herein.
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(Source: P.A. 96-520, eff. 8-14-09; revised 10-30-09.)
 
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    (35 ILCS 105/10.5 new)
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    Sec. 10.5. Use tax amnesty.  The Department shall establish 
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an amnesty program for all taxpayers owing any tax imposed 
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under this Act for their purchases of tangible personal 
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property from a retailer for use in this State (eligible 
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taxes). The amnesty program shall be for a period from January 
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1, 2011 through October 15, 2011.  The amnesty program shall 
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provide that, upon payment by a taxpayer of all eligible taxes 
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due from that taxpayer under this Act for any taxable period 
 


 






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ending after June 30, 2004 and prior to January 1, 2011, the 
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Department shall abate and not seek to collect any interest or 
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penalties that may be applicable and the Department shall not 
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seek civil or criminal prosecution for any taxpayer for these 
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taxes for the period of time for which amnesty has been granted 
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to the taxpayer. Failure to pay all eligible taxes due to the 
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State for a taxable period shall invalidate any amnesty granted 
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under this Section. Amnesty shall be granted only if all 
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amnesty conditions are satisfied by the taxpayer.
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    Amnesty shall not be granted to taxpayers who are a party 
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to any criminal investigation or to any civil or criminal 
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litigation that is pending in any circuit court or appellate 
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court or the Supreme Court of this State for nonpayment, 
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delinquency, or fraud in relation to eligible taxes under this 
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Act.
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    Voluntary payments made under this Section shall be made by 
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cash, check, guaranteed remittance, or ACH debit.
 

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