99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3295

 

Introduced 2/19/2016, by Sen. Toi W. Hutchinson

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that moneys in the Tax Compliance and Administration Fund shall consist of deposits provided for in tax laws, reimbursements, or other payments received from units of local government for administering a local tax or fee on behalf of the unit of local government in accordance with the Local Tax Collection Act, or other payments designated for deposit into the Fund. Amends the Retailers' Occupation Tax Act. In provisions concerning the disclosure of information, provides that the Department of Revenue may furnish certain information to counties as well as municipalities. Provides that, in addition to other information that the Department of Revenue is authorized to disclose, the Department may also disclose the standard classification number assigned to a business. Makes changes concerning cancellation of agreements. Provides that the Department of Revenue may enter into tax collection agreements with any unit of local government (currently, only counties and municipalities). Contains provisions concerning ordinances or resolutions imposing or discontinuing a tax collected by the Department pursuant to an intergovernmental agreement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3295LRB099 16628 HLH 40966 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-190 as follows:
 
7    (20 ILCS 2505/2505-190)  (was 20 ILCS 2505/39c-4)
8    Sec. 2505-190. Tax Compliance and Administration Fund.
9    (a) Amounts deposited into the Tax Compliance and
10Administration Fund, a special fund in the State treasury that
11is hereby created, must be appropriated to the Department to
12reimburse the Department for its costs of collecting,
13administering, and enforcing the tax laws that provide for
14deposits into the Fund. Moneys in the Fund shall consist of
15deposits provided for in tax laws, reimbursements, or other
16payments received from units of local government for
17administering a local tax or fee on behalf of the unit of local
18government in accordance with the Local Tax Collection Act, or
19other payments designated for deposit into the Fund.
20    (b) As soon as possible after July 1, 2015, and as soon as
21possible after each July 1 thereafter, the Director of the
22Department of Revenue shall certify the balance in the Tax
23Compliance and Administration Fund as of July 1, less any

 

 

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1amounts obligated, and the State Comptroller shall order
2transferred and the State Treasurer shall transfer from the Tax
3Compliance and Administration Fund to the General Revenue Fund
4the amount certified that exceeds $2,500,000.
5(Source: P.A. 98-1098, eff. 8-26-14.)
 
6    Section 10. The Retailers' Occupation Tax Act is amended by
7changing Section 11 as follows:
 
8    (35 ILCS 120/11)  (from Ch. 120, par. 450)
9    Sec. 11. All information received by the Department from
10returns filed under this Act, or from any investigation
11conducted under this Act, shall be confidential, except for
12official purposes, and any person who divulges any such
13information in any manner, except in accordance with a proper
14judicial order or as otherwise provided by law, shall be guilty
15of a Class B misdemeanor with a fine not to exceed $7,500.
16    Nothing in this Act prevents the Director of Revenue from
17publishing or making available to the public the names and
18addresses of persons filing returns under this Act, or
19reasonable statistics concerning the operation of the tax by
20grouping the contents of returns so the information in any
21individual return is not disclosed.
22    Nothing in this Act prevents the Director of Revenue from
23divulging to the United States Government or the government of
24any other state, or any officer or agency thereof, for

 

 

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1exclusively official purposes, information received by the
2Department in administering this Act, provided that such other
3governmental agency agrees to divulge requested tax
4information to the Department.
5    The Department's furnishing of information derived from a
6taxpayer's return or from an investigation conducted under this
7Act to the surety on a taxpayer's bond that has been furnished
8to the Department under this Act, either to provide notice to
9such surety of its potential liability under the bond or, in
10order to support the Department's demand for payment from such
11surety under the bond, is an official purpose within the
12meaning of this Section.
13    The furnishing upon request of information obtained by the
14Department from returns filed under this Act or investigations
15conducted under this Act to the Illinois Liquor Control
16Commission for official use is deemed to be an official purpose
17within the meaning of this Section.
18    Notice to a surety of potential liability shall not be
19given unless the taxpayer has first been notified, not less
20than 10 days prior thereto, of the Department's intent to so
21notify the surety.
22    The furnishing upon request of the Auditor General, or his
23authorized agents, for official use, of returns filed and
24information related thereto under this Act is deemed to be an
25official purpose within the meaning of this Section.
26    Where an appeal or a protest has been filed on behalf of a

 

 

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1taxpayer, the furnishing upon request of the attorney for the
2taxpayer of returns filed by the taxpayer and information
3related thereto under this Act is deemed to be an official
4purpose within the meaning of this Section.
5    The furnishing of financial information to a municipality
6or county, upon request of the chief executive officer Chief
7Executive thereof, is an official purpose within the meaning of
8this Section, provided the municipality or county agrees in
9writing to the requirements of this Section. Information
10provided to municipalities and counties under this paragraph
11shall be limited to: (1) the business name; (2) the business
12address; (3) the standard classification number assigned to the
13business; (4) net revenue distributed to the requesting
14municipality or county that is directly related to the
15requesting municipality's or county's local share of the
16proceeds under the Use Tax Act, the Service Use Tax Act, the
17Service Occupation Tax Act, and the Retailers' Occupation Tax
18Act distributed from the Local Government Tax Fund, and, if
19applicable, any locally imposed retailers' occupation tax or
20service occupation tax; and (5) (4) a listing of all businesses
21within the requesting municipality or county by account
22identification number and address. On and after July 1, 2015,
23the furnishing of financial information to municipalities and
24counties under this paragraph may be by electronic means.
25    Information so provided shall be subject to all
26confidentiality provisions of this Section. The written

 

 

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1agreement shall provide for reciprocity, limitations on
2access, disclosure, and procedures for requesting information.
3    The Department may make available to the Board of Trustees
4of any Metro East Mass Transit District information contained
5on transaction reporting returns required to be filed under
6Section 3 of this Act that report sales made within the
7boundary of the taxing authority of that Metro East Mass
8Transit District, as provided in Section 5.01 of the Local Mass
9Transit District Act. The disclosure shall be made pursuant to
10a written agreement between the Department and the Board of
11Trustees of a Metro East Mass Transit District, which is an
12official purpose within the meaning of this Section. The
13written agreement between the Department and the Board of
14Trustees of a Metro East Mass Transit District shall provide
15for reciprocity, limitations on access, disclosure, and
16procedures for requesting information. Information so provided
17shall be subject to all confidentiality provisions of this
18Section.
19    The Director may make available to any State agency,
20including the Illinois Supreme Court, which licenses persons to
21engage in any occupation, information that a person licensed by
22such agency has failed to file returns under this Act or pay
23the tax, penalty and interest shown therein, or has failed to
24pay any final assessment of tax, penalty or interest due under
25this Act. The Director may make available to any State agency,
26including the Illinois Supreme Court, information regarding

 

 

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1whether a bidder, contractor, or an affiliate of a bidder or
2contractor has failed to collect and remit Illinois Use tax on
3sales into Illinois, or any tax under this Act or pay the tax,
4penalty, and interest shown therein, or has failed to pay any
5final assessment of tax, penalty, or interest due under this
6Act, for the limited purpose of enforcing bidder and contractor
7certifications. The Director may make available to units of
8local government and school districts that require bidder and
9contractor certifications, as set forth in Sections 50-11 and
1050-12 of the Illinois Procurement Code, information regarding
11whether a bidder, contractor, or an affiliate of a bidder or
12contractor has failed to collect and remit Illinois Use tax on
13sales into Illinois, file returns under this Act, or pay the
14tax, penalty, and interest shown therein, or has failed to pay
15any final assessment of tax, penalty, or interest due under
16this Act, for the limited purpose of enforcing bidder and
17contractor certifications. For purposes of this Section, the
18term "affiliate" means any entity that (1) directly,
19indirectly, or constructively controls another entity, (2) is
20directly, indirectly, or constructively controlled by another
21entity, or (3) is subject to the control of a common entity.
22For purposes of this Section, an entity controls another entity
23if it owns, directly or individually, more than 10% of the
24voting securities of that entity. As used in this Section, the
25term "voting security" means a security that (1) confers upon
26the holder the right to vote for the election of members of the

 

 

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1board of directors or similar governing body of the business or
2(2) is convertible into, or entitles the holder to receive upon
3its exercise, a security that confers such a right to vote. A
4general partnership interest is a voting security.
5    The Director may make available to any State agency,
6including the Illinois Supreme Court, units of local
7government, and school districts, information regarding
8whether a bidder or contractor is an affiliate of a person who
9is not collecting and remitting Illinois Use taxes for the
10limited purpose of enforcing bidder and contractor
11certifications.
12    The Director may also make available to the Secretary of
13State information that a limited liability company, which has
14filed articles of organization with the Secretary of State, or
15corporation which has been issued a certificate of
16incorporation by the Secretary of State has failed to file
17returns under this Act or pay the tax, penalty and interest
18shown therein, or has failed to pay any final assessment of
19tax, penalty or interest due under this Act. An assessment is
20final when all proceedings in court for review of such
21assessment have terminated or the time for the taking thereof
22has expired without such proceedings being instituted.
23    The Director shall make available for public inspection in
24the Department's principal office and for publication, at cost,
25administrative decisions issued on or after January 1, 1995.
26These decisions are to be made available in a manner so that

 

 

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1the following taxpayer information is not disclosed:
2        (1) The names, addresses, and identification numbers
3    of the taxpayer, related entities, and employees.
4        (2) At the sole discretion of the Director, trade
5    secrets or other confidential information identified as
6    such by the taxpayer, no later than 30 days after receipt
7    of an administrative decision, by such means as the
8    Department shall provide by rule.
9    The Director shall determine the appropriate extent of the
10deletions allowed in paragraph (2). In the event the taxpayer
11does not submit deletions, the Director shall make only the
12deletions specified in paragraph (1).
13    The Director shall make available for public inspection and
14publication an administrative decision within 180 days after
15the issuance of the administrative decision. The term
16"administrative decision" has the same meaning as defined in
17Section 3-101 of Article III of the Code of Civil Procedure.
18Costs collected under this Section shall be paid into the Tax
19Compliance and Administration Fund.
20    Nothing contained in this Act shall prevent the Director
21from divulging information to any person pursuant to a request
22or authorization made by the taxpayer or by an authorized
23representative of the taxpayer.
24(Source: P.A. 98-1058, eff. 1-1-15.)
 
25    Section 15. The Local Tax Collection Act is amended by

 

 

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1changing Section 1 as follows:
 
2    (35 ILCS 720/1)  (from Ch. 120, par. 1901)
3    Sec. 1. (a) The Department of Revenue and any unit of local
4government county or municipality may agree to the Department's
5collecting, and transmitting back to the unit of local
6government such county or municipality, any tax lawfully
7imposed by that unit of local government county or
8municipality, the subject of which is similar to that of a tax
9imposed by the State and collected by the Department of
10Revenue, unless the General Assembly has specifically required
11a different method of collection for such tax. However, the
12Department may not enter into a contract with any unit of local
13government municipality or county pursuant to this Act for the
14collection of any tax based on the sale or use of tangible
15personal property generally, not including taxes based only on
16the sale or use of specifically limited kinds of tangible
17personal property, unless the municipal or county ordinance
18adopted by the unit of local government imposes a sales or use
19tax which is substantively identical to and which contains the
20same exemptions as the taxes imposed by the unit of local
21government's municipalities' or counties' ordinances
22authorized by the Home Rule or Non-Home Rule Municipal or
23County Retailers' Occupation Tax Act, the Home Rule or Non-Home
24Rule or the Municipal or County Use Tax, or any other
25Retailers' Occupation Tax Act or Law that is administered by

 

 

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1the Department of Revenue, as interpreted by the Department
2through its regulations as those Acts and as those regulations
3may from time to time be amended.
4    (b) Regarding the collection of a tax pursuant to this
5Section, the Department and any person subject to a tax
6collected by the Department pursuant to this Section shall, as
7much as practicable, have the same rights, remedies,
8privileges, immunities, powers and duties, and be subject to
9the same conditions, restrictions, limitations, penalties,
10definitions of terms and procedures, as those set forth in the
11Act imposing the State tax, the subject of which is similar to
12the tax being collected by the Department pursuant to this
13Section. The Department and unit of local government county or
14municipality shall specifically agree in writing to such
15rights, remedies, privileges, immunities, powers, duties,
16conditions, restrictions, limitations, penalties, definitions
17of terms and procedures, as well as any other terms deemed
18necessary or advisable. All terms so agreed upon shall be
19incorporated into an ordinance of such unit of local government
20county or municipality, and the Department shall not collect
21the tax pursuant to this Section until such ordinance takes
22effect.
23    (c) (1) The Department shall forthwith pay over to the
24State Treasurer, ex officio, as trustee, all taxes and
25penalties collected hereunder. On or before the 25th day of
26each calendar month, the Department shall prepare and certify

 

 

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1to the Comptroller the disbursement of stated sums of money to
2named units of local government cities and counties from which
3retailers or other taxpayers have paid taxes or penalties
4hereunder to the Department during the second preceding
5calendar month.
6    (i) The an amount to be paid to each unit of local
7government county and municipality, which shall equal the taxes
8and penalties collected by the Department for the unit of local
9government such county or municipality pursuant to this Section
10during the second preceding calendar month (not including
11credit memoranda), plus an amount the Department determines is
12necessary to offset any amounts which were erroneously paid to
13a different taxing body, and not including (i) an amount equal
14to the amount of refunds made during the second preceding
15calendar month by the Department of behalf of such county or
16municipality and (ii) any amount which the Department
17determines is necessary to offset any amounts which are payable
18to a different taxing body but were erroneously paid to the
19municipality or county, less 2% of the balance, or any greater
20amount of the balance as provided in the agreement between the
21Department and the unit of local government required under this
22Section, which sum shall be retained by the State Treasurer.
23total amount of taxes and penalties collected by the Department
24for such county or municipality pursuant to this Section or the
25actual cost of collection of such taxes and penalties
26determined pursuant to the agreement described in subsection

 

 

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1(b), whichever is less, which shall be retained by the State;
2and
3    (ii) With respect to the total amount to be retained by the
4State Treasurer pursuant to subparagraph (i), the Department,
5at the time of each monthly disbursement to the units of local
6government, shall prepare and certify to the Comptroller the
7amount so retained by the State Treasurer, which shall be
8transferred such amount to be deposited into the Tax Compliance
9and Administration General Revenue Fund of the State treasury
10and used by the Department, subject to appropriation, to cover
11the costs incurred by the Department in collecting such taxes
12and penalties.
13    (2) Within 10 7 days after receiving the certifications
14described in paragraph (1), the Comptroller shall issue orders
15for payment of the amounts specified in subparagraph (i) of
16paragraph (1).
17    (d) Any home rule unit of local government which imposes a
18tax collected by the Department pursuant to this Section
19substantially similar to a State imposed tax, or which imposes
20a tax which is intended to be collected from a retail purchaser
21of goods or services at the same time a similar State tax is
22also collected, must file a certified copy of the ordinance
23imposing the tax with the Department within 10 days after its
24passage. Beginning on the effective date of this amendatory Act
25of the 99th General Assembly, an ordinance or resolution
26imposing or discontinuing a tax collected by the Department

 

 

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1under this Section or effecting a change in the rate thereof
2shall either (i) be adopted and a certified copy thereof filed
3with the Department on or before the first day of April,
4whereupon the Department shall proceed to administer and
5enforce the tax imposition, discontinuance, or rate change as
6of the first day of July next following the adoption and
7filing; or (ii) be adopted and certified copy thereof filed
8with the Department on or before the first day of October,
9whereupon the Department shall proceed to administer and
10enforce the tax imposition, discontinuance, or rate change as
11of the first day of January next following the adoption and
12filing. No such ordinance shall become effective until it is so
13filed. Any home rule unit of local government which has enacted
14such an ordinance prior to the effective date of this Act shall
15file a copy of such ordinance with the Department within 90
16days after the effective date of this Act.
17    (e) It is declared to be the law of this State, pursuant to
18paragraph (g) of Section 6 of Article VII of the Illinois
19Constitution, that this amendatory Act of 1988 is a denial of
20the power of a home rule unit to fail to comply with the
21requirements of paragraphs (d) and (e) of this Section.
22(Source: P.A. 85-1215.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 2505/2505-190was 20 ILCS 2505/39c-4
4    35 ILCS 120/11from Ch. 120, par. 450
5    35 ILCS 720/1from Ch. 120, par. 1901