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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 Retailers' Occupation Tax Act is amended by |
5 | | changing Section 2a as follows: |
6 | | (35 ILCS 120/2a) (from Ch. 120, par. 441a) |
7 | | Sec. 2a. It is unlawful for any person to engage in the |
8 | | business of
selling tangible personal property at retail in |
9 | | this State without a
certificate of registration from the |
10 | | Department. Application
for a certificate of registration |
11 | | shall be made to the Department upon
forms furnished by it. |
12 | | Each such application shall be signed and verified
and shall |
13 | | state: (1) the name and social security number of the
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14 | | applicant; (2) the address of his principal place
of business; |
15 | | (3) the address of the principal place of business from which
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16 | | he engages in the business of selling tangible personal |
17 | | property at retail
in this State and the addresses of all other |
18 | | places of business, if any
(enumerating such addresses, if any, |
19 | | in a separate list attached to and
made a part of the |
20 | | application), from which he engages in the business of
selling |
21 | | tangible personal property at retail in this State; (4)
the
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22 | | name and address of the person or persons who will be |
23 | | responsible for
filing returns and payment of taxes due under |
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1 | | this Act; (5) in the case of a publicly traded corporation, the |
2 | | name and title of the Chief Financial Officer, Chief Operating |
3 | | Officer, and any other officer or employee with responsibility |
4 | | for preparing tax returns under this Act, along with the last 4 |
5 | | digits of each of their social security numbers, and , in the
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6 | | case of
all other corporations, the name, title, and social |
7 | | security number of
each corporate officer; (6) in the case of a |
8 | | limited liability
company, the
name, social security number, |
9 | | and FEIN number of
each
manager and member; and (7) such other |
10 | | information
as the Department may reasonably require. The |
11 | | application shall contain
an acceptance of responsibility |
12 | | signed by the person or persons who will be
responsible for |
13 | | filing returns and payment of the taxes due under this
Act. If |
14 | | the applicant will sell tangible personal property at retail
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15 | | through vending machines, his application to register shall |
16 | | indicate the
number of vending machines to be so operated. If |
17 | | requested by the Department at any time, that person shall |
18 | | verify the total number of vending machines he or she uses in |
19 | | his or her business of selling tangible personal property at |
20 | | retail. |
21 | | The Department may deny a certificate of registration to |
22 | | any applicant
if a person who is named as the owner, a partner, |
23 | | a manager or member of a limited liability
company, or a |
24 | | corporate officer of the applicant on the application for the |
25 | | certificate of registration , is or
has been named as the owner, |
26 | | a partner, a manager or member of a limited
liability company, |
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1 | | or a corporate officer , on the application for the certificate |
2 | | of registration of another retailer
that is in default for |
3 | | moneys due under this Act or any other tax or fee Act |
4 | | administered by the Department. For purposes of this paragraph |
5 | | only, in determining whether a person is in default for moneys |
6 | | due, the Department shall include only amounts established as a |
7 | | final liability within the 20 years prior to the date of the |
8 | | Department's notice of denial of a certificate of registration. |
9 | | The Department may require an applicant for a certificate |
10 | | of registration hereunder to, at
the time of filing such |
11 | | application, furnish a bond from a surety company
authorized to |
12 | | do business in the State of Illinois, or an irrevocable
bank |
13 | | letter of credit or a bond signed by 2
personal sureties who |
14 | | have filed, with the Department, sworn statements
disclosing |
15 | | net assets equal to at least 3 times the amount of the bond to
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16 | | be required of such applicant, or a bond secured by an |
17 | | assignment of a bank
account or certificate of deposit, stocks |
18 | | or bonds, conditioned upon the
applicant paying to the State of |
19 | | Illinois all moneys becoming due under
this Act and under any |
20 | | other State tax law or municipal or county tax
ordinance or |
21 | | resolution under which the certificate of registration that is
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22 | | issued to the applicant under this Act will permit the |
23 | | applicant to engage
in business without registering separately |
24 | | under such other law, ordinance
or resolution. In making a |
25 | | determination as to whether to require a bond or other |
26 | | security, the Department shall take into consideration whether |
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1 | | the owner, any partner, any manager or member of a limited |
2 | | liability company, or a corporate officer of the applicant is |
3 | | or has been the owner, a partner, a manager or member of a |
4 | | limited liability company, or a corporate officer of another |
5 | | retailer that is in default for moneys due under this Act or |
6 | | any other tax or fee Act administered by the Department; and |
7 | | whether the owner, any partner, any manager or member of a |
8 | | limited liability company, or a corporate officer of the |
9 | | applicant is or has been the owner, a partner, a manager or |
10 | | member of a limited liability company, or a corporate officer |
11 | | of another retailer whose certificate of registration has been |
12 | | revoked within the previous 5 years under this Act or any other |
13 | | tax or fee Act administered by the Department. If a bond or |
14 | | other security is required, the Department shall fix the amount |
15 | | of the bond or other security, taking into consideration the |
16 | | amount of money expected to become due from the applicant under |
17 | | this Act and under any other State tax law or municipal or |
18 | | county tax ordinance or resolution under which the certificate |
19 | | of registration that is issued to the applicant under this Act |
20 | | will permit the applicant to engage in business without |
21 | | registering separately under such other law, ordinance, or |
22 | | resolution. The amount of security required by
the Department |
23 | | shall be such as, in its opinion, will protect the State of
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24 | | Illinois against failure to pay the amount which may become due |
25 | | from the
applicant under this Act and under any other State tax |
26 | | law or municipal or
county tax ordinance or resolution under |
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1 | | which the certificate of
registration that is issued to the |
2 | | applicant under this Act will permit the
applicant to engage in |
3 | | business without registering separately under such
other law, |
4 | | ordinance or resolution, but the amount of the security |
5 | | required
by the Department shall not exceed three times the |
6 | | amount of the
applicant's average monthly tax liability, or |
7 | | $50,000.00, whichever amount
is lower. |
8 | | No certificate of registration under this Act shall be |
9 | | issued by the
Department until the applicant provides the |
10 | | Department with satisfactory
security, if required, as herein |
11 | | provided for. |
12 | | Upon receipt of the application for certificate of |
13 | | registration in
proper form, and upon approval by the |
14 | | Department of the security furnished
by the applicant, if |
15 | | required, the Department shall issue to such applicant a
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16 | | certificate of registration which shall permit the person to |
17 | | whom it is
issued to engage in the business of selling tangible |
18 | | personal property at
retail in this State. The certificate of |
19 | | registration shall be
conspicuously displayed at the place of |
20 | | business which the person so
registered states in his |
21 | | application to be the principal place of business
from which he |
22 | | engages in the business of selling tangible personal property
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23 | | at retail in this State. |
24 | | No certificate of registration issued to a taxpayer who |
25 | | files returns
required by this Act on a monthly basis shall be |
26 | | valid after the expiration
of 5 years from the date of its |
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1 | | issuance or last renewal. The expiration
date of a |
2 | | sub-certificate of registration shall be that of the |
3 | | certificate
of registration to which the sub-certificate |
4 | | relates. A certificate of
registration shall automatically be |
5 | | renewed, subject to revocation as
provided by this Act, for an |
6 | | additional 5 years from the date of its
expiration unless |
7 | | otherwise notified by the Department as provided by this
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8 | | paragraph. Where a taxpayer to whom a certificate of |
9 | | registration is
issued under this Act is in default to the |
10 | | State of Illinois for delinquent
returns or for moneys due
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11 | | under this Act or any other State tax law or municipal or |
12 | | county ordinance
administered or enforced by the Department, |
13 | | the Department shall, not less
than 60 120 days before the |
14 | | expiration date of such certificate of
registration, give |
15 | | notice to the taxpayer to whom the certificate was
issued of |
16 | | the account period of the delinquent returns, the amount of
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17 | | tax,
penalty and interest due and owing from the
taxpayer, and |
18 | | that the certificate of registration shall not be
automatically |
19 | | renewed upon its expiration date unless the taxpayer, on or
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20 | | before the date of expiration, has filed and paid the |
21 | | delinquent returns or
paid the defaulted amount in full. A
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22 | | taxpayer to whom such a notice is issued shall be deemed an |
23 | | applicant for
renewal. The Department shall promulgate |
24 | | regulations establishing
procedures for taxpayers who file |
25 | | returns on a monthly basis but desire and
qualify to change to |
26 | | a quarterly or yearly filing basis and will no longer
be |
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1 | | subject to renewal under this Section, and for taxpayers who |
2 | | file
returns on a yearly or quarterly basis but who desire or |
3 | | are required to
change to a monthly filing basis and will be |
4 | | subject to renewal under
this Section. |
5 | | The Department may in its discretion approve renewal by an |
6 | | applicant
who is in default if, at the time of application for |
7 | | renewal, the applicant
files all of the delinquent returns or |
8 | | pays to the Department such
percentage of the defaulted amount |
9 | | as may be
determined by the Department and agrees in writing to |
10 | | waive all limitations
upon the Department for collection of the |
11 | | remaining defaulted amount to the
Department over a period not |
12 | | to exceed 5 years from the date of renewal of
the certificate; |
13 | | however, no renewal application submitted by an applicant
who |
14 | | is in default shall be approved if the immediately preceding |
15 | | renewal by
the applicant was conditioned upon the installment |
16 | | payment
agreement described in this Section. The payment |
17 | | agreement herein provided
for shall be in addition to and not |
18 | | in lieu of the security that may be required by
this Section of |
19 | | a taxpayer who is no longer considered a prior continuous
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20 | | compliance taxpayer. The execution of the payment agreement as |
21 | | provided in
this Act shall not toll the accrual of interest at |
22 | | the statutory rate. |
23 | | The Department may suspend a certificate of registration if |
24 | | the Department finds that the person to whom the certificate of |
25 | | registration has been issued knowingly sold contraband |
26 | | cigarettes. |
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1 | | A certificate of registration issued under this Act more |
2 | | than 5 years
before the effective date of this amendatory Act |
3 | | of 1989 shall expire and
be subject to the renewal provisions |
4 | | of this Section on the next
anniversary of the date of issuance |
5 | | of such certificate which occurs more
than 6 months after the |
6 | | effective date of this amendatory Act of 1989. A
certificate of |
7 | | registration issued less than 5 years before the effective
date |
8 | | of this amendatory Act of 1989 shall expire and be subject to |
9 | | the
renewal provisions of this Section on the 5th anniversary |
10 | | of the issuance
of the certificate. |
11 | | If the person so registered states that he operates other |
12 | | places of
business from which he engages in the business of |
13 | | selling tangible personal
property at retail in this State, the |
14 | | Department shall furnish him with a
sub-certificate of |
15 | | registration for each such place of business, and the
applicant |
16 | | shall display the appropriate sub-certificate of registration |
17 | | at
each such place of business. All sub-certificates of |
18 | | registration shall
bear the same registration number as that |
19 | | appearing upon the certificate of
registration to which such |
20 | | sub-certificates relate. |
21 | | If the applicant will sell tangible personal property at |
22 | | retail through
vending machines, the Department shall furnish |
23 | | him with a sub-certificate
of registration for each such |
24 | | vending machine, and the applicant shall
display the |
25 | | appropriate sub-certificate of registration on each such
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26 | | vending machine by attaching the sub-certificate of |
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1 | | registration to a
conspicuous part of such vending machine. If |
2 | | a person who is registered to sell tangible personal property |
3 | | at retail through vending machines adds an additional vending |
4 | | machine or additional vending machines to the number of vending |
5 | | machines he or she uses in his or her business of selling |
6 | | tangible personal property at retail, he or she shall notify |
7 | | the Department, on a form prescribed by the Department, to |
8 | | request an additional sub-certificate or additional |
9 | | sub-certificates of registration, as applicable. With each |
10 | | such request, the applicant shall report the number of |
11 | | sub-certificates of registration he or she is requesting as |
12 | | well as the total number of vending machines from which he or |
13 | | she makes retail sales. |
14 | | Where the same person engages in 2 or more businesses of |
15 | | selling
tangible personal property at retail in this State, |
16 | | which businesses are
substantially different in character or |
17 | | engaged in under different trade
names or engaged in under |
18 | | other substantially dissimilar circumstances (so
that it is |
19 | | more practicable, from an accounting, auditing or bookkeeping
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20 | | standpoint, for such businesses to be separately registered), |
21 | | the
Department may require or permit such person (subject to |
22 | | the same
requirements concerning the furnishing of security as |
23 | | those that are
provided for hereinbefore in this Section as to |
24 | | each application for a
certificate of registration) to apply |
25 | | for and obtain a separate certificate
of registration for each |
26 | | such business or for any of such businesses, under
a single |
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1 | | certificate of registration supplemented by related
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2 | | sub-certificates of registration. |
3 | | Any person who is registered under the "Retailers' |
4 | | Occupation Tax Act"
as of March 8, 1963, and who, during the |
5 | | 3-year period immediately prior to
March 8, 1963, or during a |
6 | | continuous 3-year period part of which passed
immediately |
7 | | before and the remainder of which passes immediately after
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8 | | March 8, 1963, has been so registered continuously and who is |
9 | | determined by
the Department not to have been either delinquent |
10 | | or deficient in the
payment of tax liability during that period |
11 | | under this Act or under any
other State tax law or municipal or |
12 | | county tax ordinance or resolution
under which the certificate |
13 | | of registration that is issued to the
registrant under this Act |
14 | | will permit the registrant to engage in business
without |
15 | | registering separately under such other law, ordinance or
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16 | | resolution, shall be considered to be a Prior Continuous |
17 | | Compliance
taxpayer. Also any taxpayer who has, as verified by |
18 | | the Department,
faithfully and continuously complied with the |
19 | | condition of his bond or
other security under the provisions of |
20 | | this Act for a period of 3
consecutive years shall be |
21 | | considered to be a Prior Continuous Compliance
taxpayer. |
22 | | Every Prior Continuous Compliance taxpayer shall be exempt |
23 | | from all
requirements under this Act concerning the furnishing |
24 | | of a bond or other security as a
condition precedent to his |
25 | | being authorized to engage in the business of
selling tangible |
26 | | personal property at retail in this State. This exemption
shall |
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1 | | continue for each such taxpayer until such time as he may be
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2 | | determined by the Department to be delinquent in the filing of |
3 | | any returns,
or is determined by the Department (either through |
4 | | the Department's
issuance of a final assessment which has |
5 | | become final under the Act, or by
the taxpayer's filing of a |
6 | | return which admits tax that is not paid to be
due) to be |
7 | | delinquent or deficient in the paying of any tax under this Act
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8 | | or under any other State tax law or municipal or county tax |
9 | | ordinance or
resolution under which the certificate of |
10 | | registration that is issued to
the registrant under this Act |
11 | | will permit the registrant to engage in
business without |
12 | | registering separately under such other law, ordinance or
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13 | | resolution, at which time that taxpayer shall become subject to |
14 | | all the
financial responsibility requirements of this Act and, |
15 | | as a condition of
being allowed to continue to engage in the |
16 | | business of selling tangible
personal property at retail, may |
17 | | be required to post bond or other
acceptable security with the |
18 | | Department covering liability which such
taxpayer may |
19 | | thereafter incur. Any taxpayer who fails to pay an admitted or
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20 | | established liability under this Act may also be required to |
21 | | post bond or
other acceptable security with this Department |
22 | | guaranteeing the payment of
such admitted or established |
23 | | liability. |
24 | | No certificate of registration shall be issued to any |
25 | | person who is in
default to the State of Illinois for moneys |
26 | | due under this Act or under any
other State tax law or |
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1 | | municipal or county tax ordinance or resolution
under which the |
2 | | certificate of registration that is issued to the applicant
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3 | | under this Act will permit the applicant to engage in business |
4 | | without
registering separately under such other law, ordinance |
5 | | or resolution. |
6 | | Any person aggrieved by any decision of the Department |
7 | | under this
Section may, within 20 days after notice of such |
8 | | decision, protest and
request a hearing, whereupon the |
9 | | Department shall give notice to such
person of the time and |
10 | | place fixed for such hearing and shall hold a
hearing in |
11 | | conformity with the provisions of this Act and then issue its
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12 | | final administrative decision in the matter to such person. In |
13 | | the absence
of such a protest within 20 days, the Department's |
14 | | decision shall become
final without any further determination |
15 | | being made or notice given. |
16 | | With respect to security other than bonds (upon which the |
17 | | Department may
sue in the event of a forfeiture), if the |
18 | | taxpayer fails to pay, when due,
any amount whose payment such |
19 | | security guarantees, the Department shall,
after such |
20 | | liability is admitted by the taxpayer or established by the
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21 | | Department through the issuance of a final assessment that has |
22 | | become final
under the law, convert the security which that |
23 | | taxpayer has furnished into
money for the State, after first |
24 | | giving the taxpayer at least 10 days'
written notice, by |
25 | | registered or certified mail, to pay the liability or
forfeit |
26 | | such security to the Department. If the security consists of |
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1 | | stocks
or bonds or other securities which are listed on a |
2 | | public exchange, the
Department shall sell such securities |
3 | | through such public exchange. If
the security consists of an |
4 | | irrevocable bank letter of credit, the
Department shall convert |
5 | | the security in the manner provided for in the
Uniform |
6 | | Commercial Code. If the security consists of a bank certificate |
7 | | of
deposit, the Department shall convert the security into |
8 | | money by demanding
and collecting the amount of such bank |
9 | | certificate of deposit from the bank
which issued such |
10 | | certificate. If the security consists of a type of stocks
or |
11 | | other securities which are not listed on a public exchange, the
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12 | | Department shall sell such security to the highest and best |
13 | | bidder after
giving at least 10 days' notice of the date, time |
14 | | and place of the intended
sale by publication in the "State |
15 | | Official Newspaper". If the Department
realizes more than the |
16 | | amount of such liability from the security, plus the
expenses |
17 | | incurred by the Department in converting the security into |
18 | | money,
the Department shall pay such excess to the taxpayer who |
19 | | furnished such
security, and the balance shall be paid into the |
20 | | State Treasury. |
21 | | The Department shall discharge any surety and shall release |
22 | | and return
any security deposited, assigned, pledged or |
23 | | otherwise provided to it by
a taxpayer under this Section |
24 | | within 30 days after: |
25 | | (1) such taxpayer becomes a Prior Continuous |
26 | | Compliance taxpayer; or |
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1 | | (2) such taxpayer has ceased to collect receipts on |
2 | | which he is required
to remit tax to the Department, has |
3 | | filed a final tax return, and has paid
to the Department an |
4 | | amount sufficient to discharge his remaining tax
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5 | | liability, as determined by the Department, under this Act |
6 | | and under every
other State tax law or municipal or county |
7 | | tax ordinance or resolution
under which the certificate of |
8 | | registration issued under this Act permits
the registrant |
9 | | to engage in business without registering separately under
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10 | | such other law, ordinance or resolution. The Department |
11 | | shall make a final
determination of the taxpayer's |
12 | | outstanding tax liability as expeditiously
as possible |
13 | | after his final tax return has been filed; if the |
14 | | Department
cannot make such final determination within 45 |
15 | | days after receiving the
final tax return, within such |
16 | | period it shall so notify the taxpayer,
stating its reasons |
17 | | therefor. |
18 | | (Source: P.A. 97-335, eff. 1-1-12; 98-496, eff. 1-1-14; 98-583, |
19 | | eff. 1-1-14; revised 9-9-13.)
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