101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5879

 

Introduced , by Rep. Keith R. Wheeler - Avery Bourne - Norine K. Hammond - Tony McCombie - Brad Halbrook

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/1  from Ch. 120, par. 440
35 ILCS 120/2-5
35 ILCS 120/3  from Ch. 120, par. 442
35 ILCS 185/5-5
35 ILCS 185/5-25

    Amends the Retailers' Occupation Tax Act. Provides that, beginning January 1, 2020 and through December 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due but for which use tax has been collected and remitted to the Department of Revenue by a marketplace facilitator are exempt. Provides that the term "marketplace facilitator" does not include any person licensed under the Auction License Act, other than any person who is an Internet auction listing service. Amends the Leveling the Playing Field for Illinois Retail Act. Provides that certified service providers who collect and remit taxes on behalf of retailers may claim the retailers' discount with respect to those taxes. Provides that the retailer is not entitled to the discount with respect to those taxes. Effective immediately.


LRB101 23487 HLH 74898 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5879LRB101 23487 HLH 74898 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 Retailers' Occupation Tax Act is amended by
5changing Sections 1, 2-5, and 3 as follows:
 
6    (35 ILCS 120/1)  (from Ch. 120, par. 440)
7    Sec. 1. Definitions. "Sale at retail" means any transfer of
8the ownership of or title to tangible personal property to a
9purchaser, for the purpose of use or consumption, and not for
10the purpose of resale in any form as tangible personal property
11to the extent not first subjected to a use for which it was
12purchased, for a valuable consideration: Provided that the
13property purchased is deemed to be purchased for the purpose of
14resale, despite first being used, to the extent to which it is
15resold as an ingredient of an intentionally produced product or
16byproduct of manufacturing. For this purpose, slag produced as
17an incident to manufacturing pig iron or steel and sold is
18considered to be an intentionally produced byproduct of
19manufacturing. Transactions whereby the possession of the
20property is transferred but the seller retains the title as
21security for payment of the selling price shall be deemed to be
22sales.
23    "Sale at retail" shall be construed to include any transfer

 

 

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1of the ownership of or title to tangible personal property to a
2purchaser, for use or consumption by any other person to whom
3such purchaser may transfer the tangible personal property
4without a valuable consideration, and to include any transfer,
5whether made for or without a valuable consideration, for
6resale in any form as tangible personal property unless made in
7compliance with Section 2c of this Act.
8    Sales of tangible personal property, which property, to the
9extent not first subjected to a use for which it was purchased,
10as an ingredient or constituent, goes into and forms a part of
11tangible personal property subsequently the subject of a "Sale
12at retail", are not sales at retail as defined in this Act:
13Provided that the property purchased is deemed to be purchased
14for the purpose of resale, despite first being used, to the
15extent to which it is resold as an ingredient of an
16intentionally produced product or byproduct of manufacturing.
17    "Sale at retail" shall be construed to include any Illinois
18florist's sales transaction in which the purchase order is
19received in Illinois by a florist and the sale is for use or
20consumption, but the Illinois florist has a florist in another
21state deliver the property to the purchaser or the purchaser's
22donee in such other state.
23    Nonreusable tangible personal property that is used by
24persons engaged in the business of operating a restaurant,
25cafeteria, or drive-in is a sale for resale when it is
26transferred to customers in the ordinary course of business as

 

 

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1part of the sale of food or beverages and is used to deliver,
2package, or consume food or beverages, regardless of where
3consumption of the food or beverages occurs. Examples of those
4items include, but are not limited to nonreusable, paper and
5plastic cups, plates, baskets, boxes, sleeves, buckets or other
6containers, utensils, straws, placemats, napkins, doggie bags,
7and wrapping or packaging materials that are transferred to
8customers as part of the sale of food or beverages in the
9ordinary course of business.
10    The purchase, employment and transfer of such tangible
11personal property as newsprint and ink for the primary purpose
12of conveying news (with or without other information) is not a
13purchase, use or sale of tangible personal property.
14    A person whose activities are organized and conducted
15primarily as a not-for-profit service enterprise, and who
16engages in selling tangible personal property at retail
17(whether to the public or merely to members and their guests)
18is engaged in the business of selling tangible personal
19property at retail with respect to such transactions, excepting
20only a person organized and operated exclusively for
21charitable, religious or educational purposes either (1), to
22the extent of sales by such person to its members, students,
23patients or inmates of tangible personal property to be used
24primarily for the purposes of such person, or (2), to the
25extent of sales by such person of tangible personal property
26which is not sold or offered for sale by persons organized for

 

 

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1profit. The selling of school books and school supplies by
2schools at retail to students is not "primarily for the
3purposes of" the school which does such selling. The provisions
4of this paragraph shall not apply to nor subject to taxation
5occasional dinners, socials or similar activities of a person
6organized and operated exclusively for charitable, religious
7or educational purposes, whether or not such activities are
8open to the public.
9    A person who is the recipient of a grant or contract under
10Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
11serves meals to participants in the federal Nutrition Program
12for the Elderly in return for contributions established in
13amount by the individual participant pursuant to a schedule of
14suggested fees as provided for in the federal Act is not
15engaged in the business of selling tangible personal property
16at retail with respect to such transactions.
17    "Purchaser" means anyone who, through a sale at retail,
18acquires the ownership of or title to tangible personal
19property for a valuable consideration.
20    "Reseller of motor fuel" means any person engaged in the
21business of selling or delivering or transferring title of
22motor fuel to another person other than for use or consumption.
23No person shall act as a reseller of motor fuel within this
24State without first being registered as a reseller pursuant to
25Section 2c or a retailer pursuant to Section 2a.
26    "Selling price" or the "amount of sale" means the

 

 

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1consideration for a sale valued in money whether received in
2money or otherwise, including cash, credits, property, other
3than as hereinafter provided, and services, but, prior to
4January 1, 2020, not including the value of or credit given for
5traded-in tangible personal property where the item that is
6traded-in is of like kind and character as that which is being
7sold; beginning January 1, 2020, "selling price" includes the
8portion of the value of or credit given for traded-in motor
9vehicles of the First Division as defined in Section 1-146 of
10the Illinois Vehicle Code of like kind and character as that
11which is being sold that exceeds $10,000. "Selling price" shall
12be determined without any deduction on account of the cost of
13the property sold, the cost of materials used, labor or service
14cost or any other expense whatsoever, but does not include
15charges that are added to prices by sellers on account of the
16seller's tax liability under this Act, or on account of the
17seller's duty to collect, from the purchaser, the tax that is
18imposed by the Use Tax Act, or, except as otherwise provided
19with respect to any cigarette tax imposed by a home rule unit,
20on account of the seller's tax liability under any local
21occupation tax administered by the Department, or, except as
22otherwise provided with respect to any cigarette tax imposed by
23a home rule unit on account of the seller's duty to collect,
24from the purchasers, the tax that is imposed under any local
25use tax administered by the Department. Effective December 1,
261985, "selling price" shall include charges that are added to

 

 

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1prices by sellers on account of the seller's tax liability
2under the Cigarette Tax Act, on account of the sellers' duty to
3collect, from the purchaser, the tax imposed under the
4Cigarette Use Tax Act, and on account of the seller's duty to
5collect, from the purchaser, any cigarette tax imposed by a
6home rule unit.
7    Notwithstanding any law to the contrary, for any motor
8vehicle, as defined in Section 1-146 of the Vehicle Code, that
9is sold on or after January 1, 2015 for the purpose of leasing
10the vehicle for a defined period that is longer than one year
11and (1) is a motor vehicle of the second division that: (A) is
12a self-contained motor vehicle designed or permanently
13converted to provide living quarters for recreational,
14camping, or travel use, with direct walk through access to the
15living quarters from the driver's seat; (B) is of the van
16configuration designed for the transportation of not less than
177 nor more than 16 passengers; or (C) has a gross vehicle
18weight rating of 8,000 pounds or less or (2) is a motor vehicle
19of the first division, "selling price" or "amount of sale"
20means the consideration received by the lessor pursuant to the
21lease contract, including amounts due at lease signing and all
22monthly or other regular payments charged over the term of the
23lease. Also included in the selling price is any amount
24received by the lessor from the lessee for the leased vehicle
25that is not calculated at the time the lease is executed,
26including, but not limited to, excess mileage charges and

 

 

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1charges for excess wear and tear. For sales that occur in
2Illinois, with respect to any amount received by the lessor
3from the lessee for the leased vehicle that is not calculated
4at the time the lease is executed, the lessor who purchased the
5motor vehicle does not incur the tax imposed by the Use Tax Act
6on those amounts, and the retailer who makes the retail sale of
7the motor vehicle to the lessor is not required to collect the
8tax imposed by the Use Tax Act or to pay the tax imposed by this
9Act on those amounts. However, the lessor who purchased the
10motor vehicle assumes the liability for reporting and paying
11the tax on those amounts directly to the Department in the same
12form (Illinois Retailers' Occupation Tax, and local retailers'
13occupation taxes, if applicable) in which the retailer would
14have reported and paid such tax if the retailer had accounted
15for the tax to the Department. For amounts received by the
16lessor from the lessee that are not calculated at the time the
17lease is executed, the lessor must file the return and pay the
18tax to the Department by the due date otherwise required by
19this Act for returns other than transaction returns. If the
20retailer is entitled under this Act to a discount for
21collecting and remitting the tax imposed under this Act to the
22Department with respect to the sale of the motor vehicle to the
23lessor, then the right to the discount provided in this Act
24shall be transferred to the lessor with respect to the tax paid
25by the lessor for any amount received by the lessor from the
26lessee for the leased vehicle that is not calculated at the

 

 

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1time the lease is executed; provided that the discount is only
2allowed if the return is timely filed and for amounts timely
3paid. The "selling price" of a motor vehicle that is sold on or
4after January 1, 2015 for the purpose of leasing for a defined
5period of longer than one year shall not be reduced by the
6value of or credit given for traded-in tangible personal
7property owned by the lessor, nor shall it be reduced by the
8value of or credit given for traded-in tangible personal
9property owned by the lessee, regardless of whether the
10trade-in value thereof is assigned by the lessee to the lessor.
11In the case of a motor vehicle that is sold for the purpose of
12leasing for a defined period of longer than one year, the sale
13occurs at the time of the delivery of the vehicle, regardless
14of the due date of any lease payments. A lessor who incurs a
15Retailers' Occupation Tax liability on the sale of a motor
16vehicle coming off lease may not take a credit against that
17liability for the Use Tax the lessor paid upon the purchase of
18the motor vehicle (or for any tax the lessor paid with respect
19to any amount received by the lessor from the lessee for the
20leased vehicle that was not calculated at the time the lease
21was executed) if the selling price of the motor vehicle at the
22time of purchase was calculated using the definition of
23"selling price" as defined in this paragraph. Notwithstanding
24any other provision of this Act to the contrary, lessors shall
25file all returns and make all payments required under this
26paragraph to the Department by electronic means in the manner

 

 

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1and form as required by the Department. This paragraph does not
2apply to leases of motor vehicles for which, at the time the
3lease is entered into, the term of the lease is not a defined
4period, including leases with a defined initial period with the
5option to continue the lease on a month-to-month or other basis
6beyond the initial defined period.
7    The phrase "like kind and character" shall be liberally
8construed (including but not limited to any form of motor
9vehicle for any form of motor vehicle, or any kind of farm or
10agricultural implement for any other kind of farm or
11agricultural implement), while not including a kind of item
12which, if sold at retail by that retailer, would be exempt from
13retailers' occupation tax and use tax as an isolated or
14occasional sale.
15    "Gross receipts" from the sales of tangible personal
16property at retail means the total selling price or the amount
17of such sales, as hereinbefore defined. In the case of charge
18and time sales, the amount thereof shall be included only as
19and when payments are received by the seller. Receipts or other
20consideration derived by a seller from the sale, transfer or
21assignment of accounts receivable to a wholly owned subsidiary
22will not be deemed payments prior to the time the purchaser
23makes payment on such accounts.
24    "Department" means the Department of Revenue.
25    "Person" means any natural individual, firm, partnership,
26association, joint stock company, joint adventure, public or

 

 

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1private corporation, limited liability company, or a receiver,
2executor, trustee, guardian or other representative appointed
3by order of any court.
4    The isolated or occasional sale of tangible personal
5property at retail by a person who does not hold himself out as
6being engaged (or who does not habitually engage) in selling
7such tangible personal property at retail, or a sale through a
8bulk vending machine, does not constitute engaging in a
9business of selling such tangible personal property at retail
10within the meaning of this Act; provided that any person who is
11engaged in a business which is not subject to the tax imposed
12by this Act because of involving the sale of or a contract to
13sell real estate or a construction contract to improve real
14estate or a construction contract to engineer, install, and
15maintain an integrated system of products, but who, in the
16course of conducting such business, transfers tangible
17personal property to users or consumers in the finished form in
18which it was purchased, and which does not become real estate
19or was not engineered and installed, under any provision of a
20construction contract or real estate sale or real estate sales
21agreement entered into with some other person arising out of or
22because of such nontaxable business, is engaged in the business
23of selling tangible personal property at retail to the extent
24of the value of the tangible personal property so transferred.
25If, in such a transaction, a separate charge is made for the
26tangible personal property so transferred, the value of such

 

 

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1property, for the purpose of this Act, shall be the amount so
2separately charged, but not less than the cost of such property
3to the transferor; if no separate charge is made, the value of
4such property, for the purposes of this Act, is the cost to the
5transferor of such tangible personal property. Construction
6contracts for the improvement of real estate consisting of
7engineering, installation, and maintenance of voice, data,
8video, security, and all telecommunication systems do not
9constitute engaging in a business of selling tangible personal
10property at retail within the meaning of this Act if they are
11sold at one specified contract price.
12    A person who holds himself or herself out as being engaged
13(or who habitually engages) in selling tangible personal
14property at retail is a person engaged in the business of
15selling tangible personal property at retail hereunder with
16respect to such sales (and not primarily in a service
17occupation) notwithstanding the fact that such person designs
18and produces such tangible personal property on special order
19for the purchaser and in such a way as to render the property
20of value only to such purchaser, if such tangible personal
21property so produced on special order serves substantially the
22same function as stock or standard items of tangible personal
23property that are sold at retail.
24    Persons who engage in the business of transferring tangible
25personal property upon the redemption of trading stamps are
26engaged in the business of selling such property at retail and

 

 

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1shall be liable for and shall pay the tax imposed by this Act
2on the basis of the retail value of the property transferred
3upon redemption of such stamps.
4    "Bulk vending machine" means a vending machine, containing
5unsorted confections, nuts, toys, or other items designed
6primarily to be used or played with by children which, when a
7coin or coins of a denomination not larger than $0.50 are
8inserted, are dispensed in equal portions, at random and
9without selection by the customer.
10    "Remote retailer" means a retailer that does not maintain
11within this State, directly or by a subsidiary, an office,
12distribution house, sales house, warehouse or other place of
13business, or any agent or other representative operating within
14this State under the authority of the retailer or its
15subsidiary, irrespective of whether such place of business or
16agent is located here permanently or temporarily or whether
17such retailer or subsidiary is licensed to do business in this
18State.
19    "Marketplace" means a physical or electronic place, forum,
20platform, application, or other method by which a marketplace
21seller sells or offers to sell items.
22    "Marketplace facilitator" means a person who, pursuant to
23an agreement with an unrelated third-party marketplace seller,
24directly or indirectly through one or more affiliates
25facilitates a retail sale by an unrelated third party
26marketplace seller by:

 

 

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1        (1) listing or advertising for sale by the marketplace
2    seller in a marketplace, tangible personal property that is
3    subject to tax under this Act; and
4        (2) either directly or indirectly, through agreements
5    or arrangements with third parties, collecting payment
6    from the customer and transmitting that payment to the
7    marketplace seller regardless of whether the marketplace
8    facilitator receives compensation or other consideration
9    in exchange for its services.
10    A person who provides advertising services, including
11listing products for sale, is not considered a marketplace
12facilitator, so long as the advertising service platform or
13forum does not engage, directly or indirectly through one or
14more affiliated persons, in the activities described in
15paragraph (2) of this definition of "marketplace facilitator".
16    "Marketplace facilitator" does not include any person
17licensed under the Auction License Act. This exemption does not
18apply to any person who is an Internet auction listing service,
19as defined by the Auction License Act.
20    "Marketplace seller" means a person that makes sales
21through a marketplace operated by an unrelated third party
22marketplace facilitator.
23(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
24    (35 ILCS 120/2-5)
25    Sec. 2-5. Exemptions. Gross receipts from proceeds from the

 

 

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1sale of the following tangible personal property are exempt
2from the tax imposed by this Act:
3        (1) Farm chemicals.
4        (2) Farm machinery and equipment, both new and used,
5    including that manufactured on special order, certified by
6    the purchaser to be used primarily for production
7    agriculture or State or federal agricultural programs,
8    including individual replacement parts for the machinery
9    and equipment, including machinery and equipment purchased
10    for lease, and including implements of husbandry defined in
11    Section 1-130 of the Illinois Vehicle Code, farm machinery
12    and agricultural chemical and fertilizer spreaders, and
13    nurse wagons required to be registered under Section 3-809
14    of the Illinois Vehicle Code, but excluding other motor
15    vehicles required to be registered under the Illinois
16    Vehicle Code. Horticultural polyhouses or hoop houses used
17    for propagating, growing, or overwintering plants shall be
18    considered farm machinery and equipment under this item
19    (2). Agricultural chemical tender tanks and dry boxes shall
20    include units sold separately from a motor vehicle required
21    to be licensed and units sold mounted on a motor vehicle
22    required to be licensed, if the selling price of the tender
23    is separately stated.
24        Farm machinery and equipment shall include precision
25    farming equipment that is installed or purchased to be
26    installed on farm machinery and equipment including, but

 

 

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1    not limited to, tractors, harvesters, sprayers, planters,
2    seeders, or spreaders. Precision farming equipment
3    includes, but is not limited to, soil testing sensors,
4    computers, monitors, software, global positioning and
5    mapping systems, and other such equipment.
6        Farm machinery and equipment also includes computers,
7    sensors, software, and related equipment used primarily in
8    the computer-assisted operation of production agriculture
9    facilities, equipment, and activities such as, but not
10    limited to, the collection, monitoring, and correlation of
11    animal and crop data for the purpose of formulating animal
12    diets and agricultural chemicals. This item (2) is exempt
13    from the provisions of Section 2-70.
14        (3) Until July 1, 2003, distillation machinery and
15    equipment, sold as a unit or kit, assembled or installed by
16    the retailer, certified by the user to be used only for the
17    production of ethyl alcohol that will be used for
18    consumption as motor fuel or as a component of motor fuel
19    for the personal use of the user, and not subject to sale
20    or resale.
21        (4) Until July 1, 2003 and beginning again September 1,
22    2004 through August 30, 2014, graphic arts machinery and
23    equipment, including repair and replacement parts, both
24    new and used, and including that manufactured on special
25    order or purchased for lease, certified by the purchaser to
26    be used primarily for graphic arts production. Equipment

 

 

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1    includes chemicals or chemicals acting as catalysts but
2    only if the chemicals or chemicals acting as catalysts
3    effect a direct and immediate change upon a graphic arts
4    product. Beginning on July 1, 2017, graphic arts machinery
5    and equipment is included in the manufacturing and
6    assembling machinery and equipment exemption under
7    paragraph (14).
8        (5) A motor vehicle that is used for automobile
9    renting, as defined in the Automobile Renting Occupation
10    and Use Tax Act. This paragraph is exempt from the
11    provisions of Section 2-70.
12        (6) Personal property sold by a teacher-sponsored
13    student organization affiliated with an elementary or
14    secondary school located in Illinois.
15        (7) Until July 1, 2003, proceeds of that portion of the
16    selling price of a passenger car the sale of which is
17    subject to the Replacement Vehicle Tax.
18        (8) Personal property sold to an Illinois county fair
19    association for use in conducting, operating, or promoting
20    the county fair.
21        (9) Personal property sold to a not-for-profit arts or
22    cultural organization that establishes, by proof required
23    by the Department by rule, that it has received an
24    exemption under Section 501(c)(3) of the Internal Revenue
25    Code and that is organized and operated primarily for the
26    presentation or support of arts or cultural programming,

 

 

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1    activities, or services. These organizations include, but
2    are not limited to, music and dramatic arts organizations
3    such as symphony orchestras and theatrical groups, arts and
4    cultural service organizations, local arts councils,
5    visual arts organizations, and media arts organizations.
6    On and after July 1, 2001 (the effective date of Public Act
7    92-35), however, an entity otherwise eligible for this
8    exemption shall not make tax-free purchases unless it has
9    an active identification number issued by the Department.
10        (10) Personal property sold by a corporation, society,
11    association, foundation, institution, or organization,
12    other than a limited liability company, that is organized
13    and operated as a not-for-profit service enterprise for the
14    benefit of persons 65 years of age or older if the personal
15    property was not purchased by the enterprise for the
16    purpose of resale by the enterprise.
17        (11) Personal property sold to a governmental body, to
18    a corporation, society, association, foundation, or
19    institution organized and operated exclusively for
20    charitable, religious, or educational purposes, or to a
21    not-for-profit corporation, society, association,
22    foundation, institution, or organization that has no
23    compensated officers or employees and that is organized and
24    operated primarily for the recreation of persons 55 years
25    of age or older. A limited liability company may qualify
26    for the exemption under this paragraph only if the limited

 

 

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1    liability company is organized and operated exclusively
2    for educational purposes. On and after July 1, 1987,
3    however, no entity otherwise eligible for this exemption
4    shall make tax-free purchases unless it has an active
5    identification number issued by the Department.
6        (12) (Blank).
7        (12-5) On and after July 1, 2003 and through June 30,
8    2004, motor vehicles of the second division with a gross
9    vehicle weight in excess of 8,000 pounds that are subject
10    to the commercial distribution fee imposed under Section
11    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
12    2004 and through June 30, 2005, the use in this State of
13    motor vehicles of the second division: (i) with a gross
14    vehicle weight rating in excess of 8,000 pounds; (ii) that
15    are subject to the commercial distribution fee imposed
16    under Section 3-815.1 of the Illinois Vehicle Code; and
17    (iii) that are primarily used for commercial purposes.
18    Through June 30, 2005, this exemption applies to repair and
19    replacement parts added after the initial purchase of such
20    a motor vehicle if that motor vehicle is used in a manner
21    that would qualify for the rolling stock exemption
22    otherwise provided for in this Act. For purposes of this
23    paragraph, "used for commercial purposes" means the
24    transportation of persons or property in furtherance of any
25    commercial or industrial enterprise whether for-hire or
26    not.

 

 

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1        (13) Proceeds from sales to owners, lessors, or
2    shippers of tangible personal property that is utilized by
3    interstate carriers for hire for use as rolling stock
4    moving in interstate commerce and equipment operated by a
5    telecommunications provider, licensed as a common carrier
6    by the Federal Communications Commission, which is
7    permanently installed in or affixed to aircraft moving in
8    interstate commerce.
9        (14) Machinery and equipment that will be used by the
10    purchaser, or a lessee of the purchaser, primarily in the
11    process of manufacturing or assembling tangible personal
12    property for wholesale or retail sale or lease, whether the
13    sale or lease is made directly by the manufacturer or by
14    some other person, whether the materials used in the
15    process are owned by the manufacturer or some other person,
16    or whether the sale or lease is made apart from or as an
17    incident to the seller's engaging in the service occupation
18    of producing machines, tools, dies, jigs, patterns,
19    gauges, or other similar items of no commercial value on
20    special order for a particular purchaser. The exemption
21    provided by this paragraph (14) does not include machinery
22    and equipment used in (i) the generation of electricity for
23    wholesale or retail sale; (ii) the generation or treatment
24    of natural or artificial gas for wholesale or retail sale
25    that is delivered to customers through pipes, pipelines, or
26    mains; or (iii) the treatment of water for wholesale or

 

 

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1    retail sale that is delivered to customers through pipes,
2    pipelines, or mains. The provisions of Public Act 98-583
3    are declaratory of existing law as to the meaning and scope
4    of this exemption. Beginning on July 1, 2017, the exemption
5    provided by this paragraph (14) includes, but is not
6    limited to, graphic arts machinery and equipment, as
7    defined in paragraph (4) of this Section.
8        (15) Proceeds of mandatory service charges separately
9    stated on customers' bills for purchase and consumption of
10    food and beverages, to the extent that the proceeds of the
11    service charge are in fact turned over as tips or as a
12    substitute for tips to the employees who participate
13    directly in preparing, serving, hosting or cleaning up the
14    food or beverage function with respect to which the service
15    charge is imposed.
16        (16) Tangible personal property sold to a purchaser if
17    the purchaser is exempt from use tax by operation of
18    federal law. This paragraph is exempt from the provisions
19    of Section 2-70.
20        (17) Tangible personal property sold to a common
21    carrier by rail or motor that receives the physical
22    possession of the property in Illinois and that transports
23    the property, or shares with another common carrier in the
24    transportation of the property, out of Illinois on a
25    standard uniform bill of lading showing the seller of the
26    property as the shipper or consignor of the property to a

 

 

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1    destination outside Illinois, for use outside Illinois.
2        (18) Legal tender, currency, medallions, or gold or
3    silver coinage issued by the State of Illinois, the
4    government of the United States of America, or the
5    government of any foreign country, and bullion.
6        (19) Until July 1, 2003, oil field exploration,
7    drilling, and production equipment, including (i) rigs and
8    parts of rigs, rotary rigs, cable tool rigs, and workover
9    rigs, (ii) pipe and tubular goods, including casing and
10    drill strings, (iii) pumps and pump-jack units, (iv)
11    storage tanks and flow lines, (v) any individual
12    replacement part for oil field exploration, drilling, and
13    production equipment, and (vi) machinery and equipment
14    purchased for lease; but excluding motor vehicles required
15    to be registered under the Illinois Vehicle Code.
16        (20) Photoprocessing machinery and equipment,
17    including repair and replacement parts, both new and used,
18    including that manufactured on special order, certified by
19    the purchaser to be used primarily for photoprocessing, and
20    including photoprocessing machinery and equipment
21    purchased for lease.
22        (21) Until July 1, 2023, coal and aggregate
23    exploration, mining, off-highway hauling, processing,
24    maintenance, and reclamation equipment, including
25    replacement parts and equipment, and including equipment
26    purchased for lease, but excluding motor vehicles required

 

 

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1    to be registered under the Illinois Vehicle Code. The
2    changes made to this Section by Public Act 97-767 apply on
3    and after July 1, 2003, but no claim for credit or refund
4    is allowed on or after August 16, 2013 (the effective date
5    of Public Act 98-456) for such taxes paid during the period
6    beginning July 1, 2003 and ending on August 16, 2013 (the
7    effective date of Public Act 98-456).
8        (22) Until June 30, 2013, fuel and petroleum products
9    sold to or used by an air carrier, certified by the carrier
10    to be used for consumption, shipment, or storage in the
11    conduct of its business as an air common carrier, for a
12    flight destined for or returning from a location or
13    locations outside the United States without regard to
14    previous or subsequent domestic stopovers.
15        Beginning July 1, 2013, fuel and petroleum products
16    sold to or used by an air carrier, certified by the carrier
17    to be used for consumption, shipment, or storage in the
18    conduct of its business as an air common carrier, for a
19    flight that (i) is engaged in foreign trade or is engaged
20    in trade between the United States and any of its
21    possessions and (ii) transports at least one individual or
22    package for hire from the city of origination to the city
23    of final destination on the same aircraft, without regard
24    to a change in the flight number of that aircraft.
25        (23) A transaction in which the purchase order is
26    received by a florist who is located outside Illinois, but

 

 

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1    who has a florist located in Illinois deliver the property
2    to the purchaser or the purchaser's donee in Illinois.
3        (24) Fuel consumed or used in the operation of ships,
4    barges, or vessels that are used primarily in or for the
5    transportation of property or the conveyance of persons for
6    hire on rivers bordering on this State if the fuel is
7    delivered by the seller to the purchaser's barge, ship, or
8    vessel while it is afloat upon that bordering river.
9        (25) Except as provided in item (25-5) of this Section,
10    a motor vehicle sold in this State to a nonresident even
11    though the motor vehicle is delivered to the nonresident in
12    this State, if the motor vehicle is not to be titled in
13    this State, and if a drive-away permit is issued to the
14    motor vehicle as provided in Section 3-603 of the Illinois
15    Vehicle Code or if the nonresident purchaser has vehicle
16    registration plates to transfer to the motor vehicle upon
17    returning to his or her home state. The issuance of the
18    drive-away permit or having the out-of-state registration
19    plates to be transferred is prima facie evidence that the
20    motor vehicle will not be titled in this State.
21        (25-5) The exemption under item (25) does not apply if
22    the state in which the motor vehicle will be titled does
23    not allow a reciprocal exemption for a motor vehicle sold
24    and delivered in that state to an Illinois resident but
25    titled in Illinois. The tax collected under this Act on the
26    sale of a motor vehicle in this State to a resident of

 

 

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1    another state that does not allow a reciprocal exemption
2    shall be imposed at a rate equal to the state's rate of tax
3    on taxable property in the state in which the purchaser is
4    a resident, except that the tax shall not exceed the tax
5    that would otherwise be imposed under this Act. At the time
6    of the sale, the purchaser shall execute a statement,
7    signed under penalty of perjury, of his or her intent to
8    title the vehicle in the state in which the purchaser is a
9    resident within 30 days after the sale and of the fact of
10    the payment to the State of Illinois of tax in an amount
11    equivalent to the state's rate of tax on taxable property
12    in his or her state of residence and shall submit the
13    statement to the appropriate tax collection agency in his
14    or her state of residence. In addition, the retailer must
15    retain a signed copy of the statement in his or her
16    records. Nothing in this item shall be construed to require
17    the removal of the vehicle from this state following the
18    filing of an intent to title the vehicle in the purchaser's
19    state of residence if the purchaser titles the vehicle in
20    his or her state of residence within 30 days after the date
21    of sale. The tax collected under this Act in accordance
22    with this item (25-5) shall be proportionately distributed
23    as if the tax were collected at the 6.25% general rate
24    imposed under this Act.
25        (25-7) Beginning on July 1, 2007, no tax is imposed
26    under this Act on the sale of an aircraft, as defined in

 

 

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1    Section 3 of the Illinois Aeronautics Act, if all of the
2    following conditions are met:
3            (1) the aircraft leaves this State within 15 days
4        after the later of either the issuance of the final
5        billing for the sale of the aircraft, or the authorized
6        approval for return to service, completion of the
7        maintenance record entry, and completion of the test
8        flight and ground test for inspection, as required by
9        14 C.F.R. 91.407;
10            (2) the aircraft is not based or registered in this
11        State after the sale of the aircraft; and
12            (3) the seller retains in his or her books and
13        records and provides to the Department a signed and
14        dated certification from the purchaser, on a form
15        prescribed by the Department, certifying that the
16        requirements of this item (25-7) are met. The
17        certificate must also include the name and address of
18        the purchaser, the address of the location where the
19        aircraft is to be titled or registered, the address of
20        the primary physical location of the aircraft, and
21        other information that the Department may reasonably
22        require.
23        For purposes of this item (25-7):
24        "Based in this State" means hangared, stored, or
25    otherwise used, excluding post-sale customizations as
26    defined in this Section, for 10 or more days in each

 

 

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1    12-month period immediately following the date of the sale
2    of the aircraft.
3        "Registered in this State" means an aircraft
4    registered with the Department of Transportation,
5    Aeronautics Division, or titled or registered with the
6    Federal Aviation Administration to an address located in
7    this State.
8        This paragraph (25-7) is exempt from the provisions of
9    Section 2-70.
10        (26) Semen used for artificial insemination of
11    livestock for direct agricultural production.
12        (27) Horses, or interests in horses, registered with
13    and meeting the requirements of any of the Arabian Horse
14    Club Registry of America, Appaloosa Horse Club, American
15    Quarter Horse Association, United States Trotting
16    Association, or Jockey Club, as appropriate, used for
17    purposes of breeding or racing for prizes. This item (27)
18    is exempt from the provisions of Section 2-70, and the
19    exemption provided for under this item (27) applies for all
20    periods beginning May 30, 1995, but no claim for credit or
21    refund is allowed on or after January 1, 2008 (the
22    effective date of Public Act 95-88) for such taxes paid
23    during the period beginning May 30, 2000 and ending on
24    January 1, 2008 (the effective date of Public Act 95-88).
25        (28) Computers and communications equipment utilized
26    for any hospital purpose and equipment used in the

 

 

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1    diagnosis, analysis, or treatment of hospital patients
2    sold to a lessor who leases the equipment, under a lease of
3    one year or longer executed or in effect at the time of the
4    purchase, to a hospital that has been issued an active tax
5    exemption identification number by the Department under
6    Section 1g of this Act.
7        (29) Personal property sold to a lessor who leases the
8    property, under a lease of one year or longer executed or
9    in effect at the time of the purchase, to a governmental
10    body that has been issued an active tax exemption
11    identification number by the Department under Section 1g of
12    this Act.
13        (30) Beginning with taxable years ending on or after
14    December 31, 1995 and ending with taxable years ending on
15    or before December 31, 2004, personal property that is
16    donated for disaster relief to be used in a State or
17    federally declared disaster area in Illinois or bordering
18    Illinois by a manufacturer or retailer that is registered
19    in this State to a corporation, society, association,
20    foundation, or institution that has been issued a sales tax
21    exemption identification number by the Department that
22    assists victims of the disaster who reside within the
23    declared disaster area.
24        (31) Beginning with taxable years ending on or after
25    December 31, 1995 and ending with taxable years ending on
26    or before December 31, 2004, personal property that is used

 

 

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1    in the performance of infrastructure repairs in this State,
2    including but not limited to municipal roads and streets,
3    access roads, bridges, sidewalks, waste disposal systems,
4    water and sewer line extensions, water distribution and
5    purification facilities, storm water drainage and
6    retention facilities, and sewage treatment facilities,
7    resulting from a State or federally declared disaster in
8    Illinois or bordering Illinois when such repairs are
9    initiated on facilities located in the declared disaster
10    area within 6 months after the disaster.
11        (32) Beginning July 1, 1999, game or game birds sold at
12    a "game breeding and hunting preserve area" as that term is
13    used in the Wildlife Code. This paragraph is exempt from
14    the provisions of Section 2-70.
15        (33) A motor vehicle, as that term is defined in
16    Section 1-146 of the Illinois Vehicle Code, that is donated
17    to a corporation, limited liability company, society,
18    association, foundation, or institution that is determined
19    by the Department to be organized and operated exclusively
20    for educational purposes. For purposes of this exemption,
21    "a corporation, limited liability company, society,
22    association, foundation, or institution organized and
23    operated exclusively for educational purposes" means all
24    tax-supported public schools, private schools that offer
25    systematic instruction in useful branches of learning by
26    methods common to public schools and that compare favorably

 

 

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1    in their scope and intensity with the course of study
2    presented in tax-supported schools, and vocational or
3    technical schools or institutes organized and operated
4    exclusively to provide a course of study of not less than 6
5    weeks duration and designed to prepare individuals to
6    follow a trade or to pursue a manual, technical,
7    mechanical, industrial, business, or commercial
8    occupation.
9        (34) Beginning January 1, 2000, personal property,
10    including food, purchased through fundraising events for
11    the benefit of a public or private elementary or secondary
12    school, a group of those schools, or one or more school
13    districts if the events are sponsored by an entity
14    recognized by the school district that consists primarily
15    of volunteers and includes parents and teachers of the
16    school children. This paragraph does not apply to
17    fundraising events (i) for the benefit of private home
18    instruction or (ii) for which the fundraising entity
19    purchases the personal property sold at the events from
20    another individual or entity that sold the property for the
21    purpose of resale by the fundraising entity and that
22    profits from the sale to the fundraising entity. This
23    paragraph is exempt from the provisions of Section 2-70.
24        (35) Beginning January 1, 2000 and through December 31,
25    2001, new or used automatic vending machines that prepare
26    and serve hot food and beverages, including coffee, soup,

 

 

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1    and other items, and replacement parts for these machines.
2    Beginning January 1, 2002 and through June 30, 2003,
3    machines and parts for machines used in commercial,
4    coin-operated amusement and vending business if a use or
5    occupation tax is paid on the gross receipts derived from
6    the use of the commercial, coin-operated amusement and
7    vending machines. This paragraph is exempt from the
8    provisions of Section 2-70.
9        (35-5) Beginning August 23, 2001 and through June 30,
10    2016, food for human consumption that is to be consumed off
11    the premises where it is sold (other than alcoholic
12    beverages, soft drinks, and food that has been prepared for
13    immediate consumption) and prescription and
14    nonprescription medicines, drugs, medical appliances, and
15    insulin, urine testing materials, syringes, and needles
16    used by diabetics, for human use, when purchased for use by
17    a person receiving medical assistance under Article V of
18    the Illinois Public Aid Code who resides in a licensed
19    long-term care facility, as defined in the Nursing Home
20    Care Act, or a licensed facility as defined in the ID/DD
21    Community Care Act, the MC/DD Act, or the Specialized
22    Mental Health Rehabilitation Act of 2013.
23        (36) Beginning August 2, 2001, computers and
24    communications equipment utilized for any hospital purpose
25    and equipment used in the diagnosis, analysis, or treatment
26    of hospital patients sold to a lessor who leases the

 

 

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1    equipment, under a lease of one year or longer executed or
2    in effect at the time of the purchase, to a hospital that
3    has been issued an active tax exemption identification
4    number by the Department under Section 1g of this Act. This
5    paragraph is exempt from the provisions of Section 2-70.
6        (37) Beginning August 2, 2001, personal property sold
7    to a lessor who leases the property, under a lease of one
8    year or longer executed or in effect at the time of the
9    purchase, to a governmental body that has been issued an
10    active tax exemption identification number by the
11    Department under Section 1g of this Act. This paragraph is
12    exempt from the provisions of Section 2-70.
13        (38) Beginning on January 1, 2002 and through June 30,
14    2016, tangible personal property purchased from an
15    Illinois retailer by a taxpayer engaged in centralized
16    purchasing activities in Illinois who will, upon receipt of
17    the property in Illinois, temporarily store the property in
18    Illinois (i) for the purpose of subsequently transporting
19    it outside this State for use or consumption thereafter
20    solely outside this State or (ii) for the purpose of being
21    processed, fabricated, or manufactured into, attached to,
22    or incorporated into other tangible personal property to be
23    transported outside this State and thereafter used or
24    consumed solely outside this State. The Director of Revenue
25    shall, pursuant to rules adopted in accordance with the
26    Illinois Administrative Procedure Act, issue a permit to

 

 

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1    any taxpayer in good standing with the Department who is
2    eligible for the exemption under this paragraph (38). The
3    permit issued under this paragraph (38) shall authorize the
4    holder, to the extent and in the manner specified in the
5    rules adopted under this Act, to purchase tangible personal
6    property from a retailer exempt from the taxes imposed by
7    this Act. Taxpayers shall maintain all necessary books and
8    records to substantiate the use and consumption of all such
9    tangible personal property outside of the State of
10    Illinois.
11        (39) Beginning January 1, 2008, tangible personal
12    property used in the construction or maintenance of a
13    community water supply, as defined under Section 3.145 of
14    the Environmental Protection Act, that is operated by a
15    not-for-profit corporation that holds a valid water supply
16    permit issued under Title IV of the Environmental
17    Protection Act. This paragraph is exempt from the
18    provisions of Section 2-70.
19        (40) Beginning January 1, 2010 and continuing through
20    December 31, 2024, materials, parts, equipment,
21    components, and furnishings incorporated into or upon an
22    aircraft as part of the modification, refurbishment,
23    completion, replacement, repair, or maintenance of the
24    aircraft. This exemption includes consumable supplies used
25    in the modification, refurbishment, completion,
26    replacement, repair, and maintenance of aircraft, but

 

 

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1    excludes any materials, parts, equipment, components, and
2    consumable supplies used in the modification, replacement,
3    repair, and maintenance of aircraft engines or power
4    plants, whether such engines or power plants are installed
5    or uninstalled upon any such aircraft. "Consumable
6    supplies" include, but are not limited to, adhesive, tape,
7    sandpaper, general purpose lubricants, cleaning solution,
8    latex gloves, and protective films. This exemption applies
9    only to the sale of qualifying tangible personal property
10    to persons who modify, refurbish, complete, replace, or
11    maintain an aircraft and who (i) hold an Air Agency
12    Certificate and are empowered to operate an approved repair
13    station by the Federal Aviation Administration, (ii) have a
14    Class IV Rating, and (iii) conduct operations in accordance
15    with Part 145 of the Federal Aviation Regulations. The
16    exemption does not include aircraft operated by a
17    commercial air carrier providing scheduled passenger air
18    service pursuant to authority issued under Part 121 or Part
19    129 of the Federal Aviation Regulations. The changes made
20    to this paragraph (40) by Public Act 98-534 are declarative
21    of existing law. It is the intent of the General Assembly
22    that the exemption under this paragraph (40) applies
23    continuously from January 1, 2010 through December 31,
24    2024; however, no claim for credit or refund is allowed for
25    taxes paid as a result of the disallowance of this
26    exemption on or after January 1, 2015 and prior to the

 

 

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1    effective date of this amendatory Act of the 101st General
2    Assembly.
3        (41) Tangible personal property sold to a
4    public-facilities corporation, as described in Section
5    11-65-10 of the Illinois Municipal Code, for purposes of
6    constructing or furnishing a municipal convention hall,
7    but only if the legal title to the municipal convention
8    hall is transferred to the municipality without any further
9    consideration by or on behalf of the municipality at the
10    time of the completion of the municipal convention hall or
11    upon the retirement or redemption of any bonds or other
12    debt instruments issued by the public-facilities
13    corporation in connection with the development of the
14    municipal convention hall. This exemption includes
15    existing public-facilities corporations as provided in
16    Section 11-65-25 of the Illinois Municipal Code. This
17    paragraph is exempt from the provisions of Section 2-70.
18        (42) Beginning January 1, 2017, menstrual pads,
19    tampons, and menstrual cups.
20        (43) Merchandise that is subject to the Rental Purchase
21    Agreement Occupation and Use Tax. The purchaser must
22    certify that the item is purchased to be rented subject to
23    a rental purchase agreement, as defined in the Rental
24    Purchase Agreement Act, and provide proof of registration
25    under the Rental Purchase Agreement Occupation and Use Tax
26    Act. This paragraph is exempt from the provisions of

 

 

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1    Section 2-70.
2        (44) Qualified tangible personal property used in the
3    construction or operation of a data center that has been
4    granted a certificate of exemption by the Department of
5    Commerce and Economic Opportunity, whether that tangible
6    personal property is purchased by the owner, operator, or
7    tenant of the data center or by a contractor or
8    subcontractor of the owner, operator, or tenant. Data
9    centers that would have qualified for a certificate of
10    exemption prior to January 1, 2020 had this amendatory Act
11    of the 101st General Assembly been in effect, may apply for
12    and obtain an exemption for subsequent purchases of
13    computer equipment or enabling software purchased or
14    leased to upgrade, supplement, or replace computer
15    equipment or enabling software purchased or leased in the
16    original investment that would have qualified.
17        The Department of Commerce and Economic Opportunity
18    shall grant a certificate of exemption under this item (44)
19    to qualified data centers as defined by Section 605-1025 of
20    the Department of Commerce and Economic Opportunity Law of
21    the Civil Administrative Code of Illinois.
22        For the purposes of this item (44):
23            "Data center" means a building or a series of
24        buildings rehabilitated or constructed to house
25        working servers in one physical location or multiple
26        sites within the State of Illinois.

 

 

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1            "Qualified tangible personal property" means:
2        electrical systems and equipment; climate control and
3        chilling equipment and systems; mechanical systems and
4        equipment; monitoring and secure systems; emergency
5        generators; hardware; computers; servers; data storage
6        devices; network connectivity equipment; racks;
7        cabinets; telecommunications cabling infrastructure;
8        raised floor systems; peripheral components or
9        systems; software; mechanical, electrical, or plumbing
10        systems; battery systems; cooling systems and towers;
11        temperature control systems; other cabling; and other
12        data center infrastructure equipment and systems
13        necessary to operate qualified tangible personal
14        property, including fixtures; and component parts of
15        any of the foregoing, including installation,
16        maintenance, repair, refurbishment, and replacement of
17        qualified tangible personal property to generate,
18        transform, transmit, distribute, or manage electricity
19        necessary to operate qualified tangible personal
20        property; and all other tangible personal property
21        that is essential to the operations of a computer data
22        center. The term "qualified tangible personal
23        property" also includes building materials physically
24        incorporated in to the qualifying data center. To
25        document the exemption allowed under this Section, the
26        retailer must obtain from the purchaser a copy of the

 

 

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1        certificate of eligibility issued by the Department of
2        Commerce and Economic Opportunity.
3        This item (44) is exempt from the provisions of Section
4    2-70.
5        (45) Beginning January 1, 2020 and through December 31,
6    2020, sales of tangible personal property made by a
7    marketplace seller over a marketplace for which tax is due
8    under this Act but for which use tax has been collected and
9    remitted to the Department by a marketplace facilitator
10    under Section 2d of the Use Tax Act are exempt from tax
11    under this Act. A marketplace seller claiming this
12    exemption shall maintain books and records demonstrating
13    that the use tax on such sales has been collected and
14    remitted by a marketplace facilitator. Marketplace sellers
15    that have properly remitted tax under this Act on such
16    sales may file a claim for credit as provided in Section 6
17    of this Act. No claim is allowed, however, for such taxes
18    for which a credit or refund has been issued to the
19    marketplace facilitator under the Use Tax Act, or for which
20    the marketplace facilitator has filed a claim for credit or
21    refund under the Use Tax Act.
22(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
23100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
248-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
25eff. 7-12-19; 101-629, eff. 2-5-20.)
 

 

 

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1    (35 ILCS 120/3)  (from Ch. 120, par. 442)
2    Sec. 3. Except as provided in this Section, on or before
3the twentieth day of each calendar month, every person engaged
4in the business of selling tangible personal property at retail
5in this State during the preceding calendar month shall file a
6return with the Department, stating:
7        1. The name of the seller;
8        2. His residence address and the address of his
9    principal place of business and the address of the
10    principal place of business (if that is a different
11    address) from which he engages in the business of selling
12    tangible personal property at retail in this State;
13        3. Total amount of receipts received by him during the
14    preceding calendar month or quarter, as the case may be,
15    from sales of tangible personal property, and from services
16    furnished, by him during such preceding calendar month or
17    quarter;
18        4. Total amount received by him during the preceding
19    calendar month or quarter on charge and time sales of
20    tangible personal property, and from services furnished,
21    by him prior to the month or quarter for which the return
22    is filed;
23        5. Deductions allowed by law;
24        6. Gross receipts which were received by him during the
25    preceding calendar month or quarter and upon the basis of
26    which the tax is imposed;

 

 

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1        7. The amount of credit provided in Section 2d of this
2    Act;
3        8. The amount of tax due;
4        9. The signature of the taxpayer; and
5        10. Such other reasonable information as the
6    Department may require.
7    On and after January 1, 2018, except for returns for motor
8vehicles, watercraft, aircraft, and trailers that are required
9to be registered with an agency of this State, with respect to
10retailers whose annual gross receipts average $20,000 or more,
11all returns required to be filed pursuant to this Act shall be
12filed electronically. Retailers who demonstrate that they do
13not have access to the Internet or demonstrate hardship in
14filing electronically may petition the Department to waive the
15electronic filing requirement.
16    If a taxpayer fails to sign a return within 30 days after
17the proper notice and demand for signature by the Department,
18the return shall be considered valid and any amount shown to be
19due on the return shall be deemed assessed.
20    Each return shall be accompanied by the statement of
21prepaid tax issued pursuant to Section 2e for which credit is
22claimed.
23    Prior to October 1, 2003, and on and after September 1,
242004 a retailer may accept a Manufacturer's Purchase Credit
25certification from a purchaser in satisfaction of Use Tax as
26provided in Section 3-85 of the Use Tax Act if the purchaser

 

 

HB5879- 40 -LRB101 23487 HLH 74898 b

1provides the appropriate documentation as required by Section
23-85 of the Use Tax Act. A Manufacturer's Purchase Credit
3certification, accepted by a retailer prior to October 1, 2003
4and on and after September 1, 2004 as provided in Section 3-85
5of the Use Tax Act, may be used by that retailer to satisfy
6Retailers' Occupation Tax liability in the amount claimed in
7the certification, not to exceed 6.25% of the receipts subject
8to tax from a qualifying purchase. A Manufacturer's Purchase
9Credit reported on any original or amended return filed under
10this Act after October 20, 2003 for reporting periods prior to
11September 1, 2004 shall be disallowed. Manufacturer's
12Purchaser Credit reported on annual returns due on or after
13January 1, 2005 will be disallowed for periods prior to
14September 1, 2004. No Manufacturer's Purchase Credit may be
15used after September 30, 2003 through August 31, 2004 to
16satisfy any tax liability imposed under this Act, including any
17audit liability.
18    The Department may require returns to be filed on a
19quarterly basis. If so required, a return for each calendar
20quarter shall be filed on or before the twentieth day of the
21calendar month following the end of such calendar quarter. The
22taxpayer shall also file a return with the Department for each
23of the first two months of each calendar quarter, on or before
24the twentieth day of the following calendar month, stating:
25        1. The name of the seller;
26        2. The address of the principal place of business from

 

 

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1    which he engages in the business of selling tangible
2    personal property at retail in this State;
3        3. The total amount of taxable receipts received by him
4    during the preceding calendar month from sales of tangible
5    personal property by him during such preceding calendar
6    month, including receipts from charge and time sales, but
7    less all deductions allowed by law;
8        4. The amount of credit provided in Section 2d of this
9    Act;
10        5. The amount of tax due; and
11        6. Such other reasonable information as the Department
12    may require.
13    Every person engaged in the business of selling aviation
14fuel at retail in this State during the preceding calendar
15month shall, instead of reporting and paying tax as otherwise
16required by this Section, report and pay such tax on a separate
17aviation fuel tax return. The requirements related to the
18return shall be as otherwise provided in this Section.
19Notwithstanding any other provisions of this Act to the
20contrary, retailers selling aviation fuel shall file all
21aviation fuel tax returns and shall make all aviation fuel tax
22payments by electronic means in the manner and form required by
23the Department. For purposes of this Section, "aviation fuel"
24means jet fuel and aviation gasoline.
25    Beginning on October 1, 2003, any person who is not a
26licensed distributor, importing distributor, or manufacturer,

 

 

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1as defined in the Liquor Control Act of 1934, but is engaged in
2the business of selling, at retail, alcoholic liquor shall file
3a statement with the Department of Revenue, in a format and at
4a time prescribed by the Department, showing the total amount
5paid for alcoholic liquor purchased during the preceding month
6and such other information as is reasonably required by the
7Department. The Department may adopt rules to require that this
8statement be filed in an electronic or telephonic format. Such
9rules may provide for exceptions from the filing requirements
10of this paragraph. For the purposes of this paragraph, the term
11"alcoholic liquor" shall have the meaning prescribed in the
12Liquor Control Act of 1934.
13    Beginning on October 1, 2003, every distributor, importing
14distributor, and manufacturer of alcoholic liquor as defined in
15the Liquor Control Act of 1934, shall file a statement with the
16Department of Revenue, no later than the 10th day of the month
17for the preceding month during which transactions occurred, by
18electronic means, showing the total amount of gross receipts
19from the sale of alcoholic liquor sold or distributed during
20the preceding month to purchasers; identifying the purchaser to
21whom it was sold or distributed; the purchaser's tax
22registration number; and such other information reasonably
23required by the Department. A distributor, importing
24distributor, or manufacturer of alcoholic liquor must
25personally deliver, mail, or provide by electronic means to
26each retailer listed on the monthly statement a report

 

 

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1containing a cumulative total of that distributor's, importing
2distributor's, or manufacturer's total sales of alcoholic
3liquor to that retailer no later than the 10th day of the month
4for the preceding month during which the transaction occurred.
5The distributor, importing distributor, or manufacturer shall
6notify the retailer as to the method by which the distributor,
7importing distributor, or manufacturer will provide the sales
8information. If the retailer is unable to receive the sales
9information by electronic means, the distributor, importing
10distributor, or manufacturer shall furnish the sales
11information by personal delivery or by mail. For purposes of
12this paragraph, the term "electronic means" includes, but is
13not limited to, the use of a secure Internet website, e-mail,
14or facsimile.
15    If a total amount of less than $1 is payable, refundable or
16creditable, such amount shall be disregarded if it is less than
1750 cents and shall be increased to $1 if it is 50 cents or more.
18    Notwithstanding any other provision of this Act to the
19contrary, retailers subject to tax on cannabis shall file all
20cannabis tax returns and shall make all cannabis tax payments
21by electronic means in the manner and form required by the
22Department.
23    Beginning October 1, 1993, a taxpayer who has an average
24monthly tax liability of $150,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1994, a taxpayer who has

 

 

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1an average monthly tax liability of $100,000 or more shall make
2all payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 1995, a taxpayer who has
4an average monthly tax liability of $50,000 or more shall make
5all payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 2000, a taxpayer who has
7an annual tax liability of $200,000 or more shall make all
8payments required by rules of the Department by electronic
9funds transfer. The term "annual tax liability" shall be the
10sum of the taxpayer's liabilities under this Act, and under all
11other State and local occupation and use tax laws administered
12by the Department, for the immediately preceding calendar year.
13The term "average monthly tax liability" shall be the sum of
14the taxpayer's liabilities under this Act, and under all other
15State and local occupation and use tax laws administered by the
16Department, for the immediately preceding calendar year
17divided by 12. Beginning on October 1, 2002, a taxpayer who has
18a tax liability in the amount set forth in subsection (b) of
19Section 2505-210 of the Department of Revenue Law shall make
20all payments required by rules of the Department by electronic
21funds transfer.
22    Before August 1 of each year beginning in 1993, the
23Department shall notify all taxpayers required to make payments
24by electronic funds transfer. All taxpayers required to make
25payments by electronic funds transfer shall make those payments
26for a minimum of one year beginning on October 1.

 

 

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1    Any taxpayer not required to make payments by electronic
2funds transfer may make payments by electronic funds transfer
3with the permission of the Department.
4    All taxpayers required to make payment by electronic funds
5transfer and any taxpayers authorized to voluntarily make
6payments by electronic funds transfer shall make those payments
7in the manner authorized by the Department.
8    The Department shall adopt such rules as are necessary to
9effectuate a program of electronic funds transfer and the
10requirements of this Section.
11    Any amount which is required to be shown or reported on any
12return or other document under this Act shall, if such amount
13is not a whole-dollar amount, be increased to the nearest
14whole-dollar amount in any case where the fractional part of a
15dollar is 50 cents or more, and decreased to the nearest
16whole-dollar amount where the fractional part of a dollar is
17less than 50 cents.
18    If the retailer is otherwise required to file a monthly
19return and if the retailer's average monthly tax liability to
20the Department does not exceed $200, the Department may
21authorize his returns to be filed on a quarter annual basis,
22with the return for January, February and March of a given year
23being due by April 20 of such year; with the return for April,
24May and June of a given year being due by July 20 of such year;
25with the return for July, August and September of a given year
26being due by October 20 of such year, and with the return for

 

 

HB5879- 46 -LRB101 23487 HLH 74898 b

1October, November and December of a given year being due by
2January 20 of the following year.
3    If the retailer is otherwise required to file a monthly or
4quarterly return and if the retailer's average monthly tax
5liability with the Department does not exceed $50, the
6Department may authorize his returns to be filed on an annual
7basis, with the return for a given year being due by January 20
8of the following year.
9    Such quarter annual and annual returns, as to form and
10substance, shall be subject to the same requirements as monthly
11returns.
12    Notwithstanding any other provision in this Act concerning
13the time within which a retailer may file his return, in the
14case of any retailer who ceases to engage in a kind of business
15which makes him responsible for filing returns under this Act,
16such retailer shall file a final return under this Act with the
17Department not more than one month after discontinuing such
18business.
19    Where the same person has more than one business registered
20with the Department under separate registrations under this
21Act, such person may not file each return that is due as a
22single return covering all such registered businesses, but
23shall file separate returns for each such registered business.
24    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, except as otherwise provided in this

 

 

HB5879- 47 -LRB101 23487 HLH 74898 b

1Section, every retailer selling this kind of tangible personal
2property shall file, with the Department, upon a form to be
3prescribed and supplied by the Department, a separate return
4for each such item of tangible personal property which the
5retailer sells, except that if, in the same transaction, (i) a
6retailer of aircraft, watercraft, motor vehicles or trailers
7transfers more than one aircraft, watercraft, motor vehicle or
8trailer to another aircraft, watercraft, motor vehicle
9retailer or trailer retailer for the purpose of resale or (ii)
10a retailer of aircraft, watercraft, motor vehicles, or trailers
11transfers more than one aircraft, watercraft, motor vehicle, or
12trailer to a purchaser for use as a qualifying rolling stock as
13provided in Section 2-5 of this Act, then that seller may
14report the transfer of all aircraft, watercraft, motor vehicles
15or trailers involved in that transaction to the Department on
16the same uniform invoice-transaction reporting return form.
17For purposes of this Section, "watercraft" means a Class 2,
18Class 3, or Class 4 watercraft as defined in Section 3-2 of the
19Boat Registration and Safety Act, a personal watercraft, or any
20boat equipped with an inboard motor.
21    In addition, with respect to motor vehicles, watercraft,
22aircraft, and trailers that are required to be registered with
23an agency of this State, every person who is engaged in the
24business of leasing or renting such items and who, in
25connection with such business, sells any such item to a
26retailer for the purpose of resale is, notwithstanding any

 

 

HB5879- 48 -LRB101 23487 HLH 74898 b

1other provision of this Section to the contrary, authorized to
2meet the return-filing requirement of this Act by reporting the
3transfer of all the aircraft, watercraft, motor vehicles, or
4trailers transferred for resale during a month to the
5Department on the same uniform invoice-transaction reporting
6return form on or before the 20th of the month following the
7month in which the transfer takes place. Notwithstanding any
8other provision of this Act to the contrary, all returns filed
9under this paragraph must be filed by electronic means in the
10manner and form as required by the Department.
11    Any retailer who sells only motor vehicles, watercraft,
12aircraft, or trailers that are required to be registered with
13an agency of this State, so that all retailers' occupation tax
14liability is required to be reported, and is reported, on such
15transaction reporting returns and who is not otherwise required
16to file monthly or quarterly returns, need not file monthly or
17quarterly returns. However, those retailers shall be required
18to file returns on an annual basis.
19    The transaction reporting return, in the case of motor
20vehicles or trailers that are required to be registered with an
21agency of this State, shall be the same document as the Uniform
22Invoice referred to in Section 5-402 of the Illinois Vehicle
23Code and must show the name and address of the seller; the name
24and address of the purchaser; the amount of the selling price
25including the amount allowed by the retailer for traded-in
26property, if any; the amount allowed by the retailer for the

 

 

HB5879- 49 -LRB101 23487 HLH 74898 b

1traded-in tangible personal property, if any, to the extent to
2which Section 1 of this Act allows an exemption for the value
3of traded-in property; the balance payable after deducting such
4trade-in allowance from the total selling price; the amount of
5tax due from the retailer with respect to such transaction; the
6amount of tax collected from the purchaser by the retailer on
7such transaction (or satisfactory evidence that such tax is not
8due in that particular instance, if that is claimed to be the
9fact); the place and date of the sale; a sufficient
10identification of the property sold; such other information as
11is required in Section 5-402 of the Illinois Vehicle Code, and
12such other information as the Department may reasonably
13require.
14    The transaction reporting return in the case of watercraft
15or aircraft must show the name and address of the seller; the
16name and address of the purchaser; the amount of the selling
17price including the amount allowed by the retailer for
18traded-in property, if any; the amount allowed by the retailer
19for the traded-in tangible personal property, if any, to the
20extent to which Section 1 of this Act allows an exemption for
21the value of traded-in property; the balance payable after
22deducting such trade-in allowance from the total selling price;
23the amount of tax due from the retailer with respect to such
24transaction; the amount of tax collected from the purchaser by
25the retailer on such transaction (or satisfactory evidence that
26such tax is not due in that particular instance, if that is

 

 

HB5879- 50 -LRB101 23487 HLH 74898 b

1claimed to be the fact); the place and date of the sale, a
2sufficient identification of the property sold, and such other
3information as the Department may reasonably require.
4    Such transaction reporting return shall be filed not later
5than 20 days after the day of delivery of the item that is
6being sold, but may be filed by the retailer at any time sooner
7than that if he chooses to do so. The transaction reporting
8return and tax remittance or proof of exemption from the
9Illinois use tax may be transmitted to the Department by way of
10the State agency with which, or State officer with whom the
11tangible personal property must be titled or registered (if
12titling or registration is required) if the Department and such
13agency or State officer determine that this procedure will
14expedite the processing of applications for title or
15registration.
16    With each such transaction reporting return, the retailer
17shall remit the proper amount of tax due (or shall submit
18satisfactory evidence that the sale is not taxable if that is
19the case), to the Department or its agents, whereupon the
20Department shall issue, in the purchaser's name, a use tax
21receipt (or a certificate of exemption if the Department is
22satisfied that the particular sale is tax exempt) which such
23purchaser may submit to the agency with which, or State officer
24with whom, he must title or register the tangible personal
25property that is involved (if titling or registration is
26required) in support of such purchaser's application for an

 

 

HB5879- 51 -LRB101 23487 HLH 74898 b

1Illinois certificate or other evidence of title or registration
2to such tangible personal property.
3    No retailer's failure or refusal to remit tax under this
4Act precludes a user, who has paid the proper tax to the
5retailer, from obtaining his certificate of title or other
6evidence of title or registration (if titling or registration
7is required) upon satisfying the Department that such user has
8paid the proper tax (if tax is due) to the retailer. The
9Department shall adopt appropriate rules to carry out the
10mandate of this paragraph.
11    If the user who would otherwise pay tax to the retailer
12wants the transaction reporting return filed and the payment of
13the tax or proof of exemption made to the Department before the
14retailer is willing to take these actions and such user has not
15paid the tax to the retailer, such user may certify to the fact
16of such delay by the retailer and may (upon the Department
17being satisfied of the truth of such certification) transmit
18the information required by the transaction reporting return
19and the remittance for tax or proof of exemption directly to
20the Department and obtain his tax receipt or exemption
21determination, in which event the transaction reporting return
22and tax remittance (if a tax payment was required) shall be
23credited by the Department to the proper retailer's account
24with the Department, but without the 2.1% or 1.75% discount
25provided for in this Section being allowed. When the user pays
26the tax directly to the Department, he shall pay the tax in the

 

 

HB5879- 52 -LRB101 23487 HLH 74898 b

1same amount and in the same form in which it would be remitted
2if the tax had been remitted to the Department by the retailer.
3    Refunds made by the seller during the preceding return
4period to purchasers, on account of tangible personal property
5returned to the seller, shall be allowed as a deduction under
6subdivision 5 of his monthly or quarterly return, as the case
7may be, in case the seller had theretofore included the
8receipts from the sale of such tangible personal property in a
9return filed by him and had paid the tax imposed by this Act
10with respect to such receipts.
11    Where the seller is a corporation, the return filed on
12behalf of such corporation shall be signed by the president,
13vice-president, secretary or treasurer or by the properly
14accredited agent of such corporation.
15    Where the seller is a limited liability company, the return
16filed on behalf of the limited liability company shall be
17signed by a manager, member, or properly accredited agent of
18the limited liability company.
19    Except as provided in this Section, the retailer filing the
20return under this Section shall, at the time of filing such
21return, pay to the Department the amount of tax imposed by this
22Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
23on and after January 1, 1990, or $5 per calendar year,
24whichever is greater, which is allowed to reimburse the
25retailer for the expenses incurred in keeping records,
26preparing and filing returns, remitting the tax and supplying

 

 

HB5879- 53 -LRB101 23487 HLH 74898 b

1data to the Department on request. On and after January 1,
22021, a certified service provider, as defined in the Leveling
3the Playing Field for Illinois Retail Act, filing the return
4under this Section on behalf of a remote retailer shall, at the
5time of such return, pay to the Department the amount of tax
6imposed by this Act less a discount of 1.75%. A remote retailer
7using a certified service provider to file a return on its
8behalf, as provided in the Leveling the Playing Field for
9Illinois Retail Act, is not eligible for the discount. The
10discount under this Section is not allowed for the 1.25%
11portion of taxes paid on aviation fuel that is subject to the
12revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1347133. Any prepayment made pursuant to Section 2d of this Act
14shall be included in the amount on which such 2.1% or 1.75%
15discount is computed. In the case of retailers who report and
16pay the tax on a transaction by transaction basis, as provided
17in this Section, such discount shall be taken with each such
18tax remittance instead of when such retailer files his periodic
19return. The discount allowed under this Section is allowed only
20for returns that are filed in the manner required by this Act.
21The Department may disallow the discount for retailers whose
22certificate of registration is revoked at the time the return
23is filed, but only if the Department's decision to revoke the
24certificate of registration has become final.
25    Before October 1, 2000, if the taxpayer's average monthly
26tax liability to the Department under this Act, the Use Tax

 

 

HB5879- 54 -LRB101 23487 HLH 74898 b

1Act, the Service Occupation Tax Act, and the Service Use Tax
2Act, excluding any liability for prepaid sales tax to be
3remitted in accordance with Section 2d of this Act, was $10,000
4or more during the preceding 4 complete calendar quarters, he
5shall file a return with the Department each month by the 20th
6day of the month next following the month during which such tax
7liability is incurred and shall make payments to the Department
8on or before the 7th, 15th, 22nd and last day of the month
9during which such liability is incurred. On and after October
101, 2000, if the taxpayer's average monthly tax liability to the
11Department under this Act, the Use Tax Act, the Service
12Occupation Tax Act, and the Service Use Tax Act, excluding any
13liability for prepaid sales tax to be remitted in accordance
14with Section 2d of this Act, was $20,000 or more during the
15preceding 4 complete calendar quarters, he shall file a return
16with the Department each month by the 20th day of the month
17next following the month during which such tax liability is
18incurred and shall make payment to the Department on or before
19the 7th, 15th, 22nd and last day of the month during which such
20liability is incurred. If the month during which such tax
21liability is incurred began prior to January 1, 1985, each
22payment shall be in an amount equal to 1/4 of the taxpayer's
23actual liability for the month or an amount set by the
24Department not to exceed 1/4 of the average monthly liability
25of the taxpayer to the Department for the preceding 4 complete
26calendar quarters (excluding the month of highest liability and

 

 

HB5879- 55 -LRB101 23487 HLH 74898 b

1the month of lowest liability in such 4 quarter period). If the
2month during which such tax liability is incurred begins on or
3after January 1, 1985 and prior to January 1, 1987, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 27.5% of the taxpayer's
6liability for the same calendar month of the preceding year. If
7the month during which such tax liability is incurred begins on
8or after January 1, 1987 and prior to January 1, 1988, each
9payment shall be in an amount equal to 22.5% of the taxpayer's
10actual liability for the month or 26.25% of the taxpayer's
11liability for the same calendar month of the preceding year. If
12the month during which such tax liability is incurred begins on
13or after January 1, 1988, and prior to January 1, 1989, or
14begins on or after January 1, 1996, each payment shall be in an
15amount equal to 22.5% of the taxpayer's actual liability for
16the month or 25% of the taxpayer's liability for the same
17calendar month of the preceding year. If the month during which
18such tax liability is incurred begins on or after January 1,
191989, and prior to January 1, 1996, each payment shall be in an
20amount equal to 22.5% of the taxpayer's actual liability for
21the month or 25% of the taxpayer's liability for the same
22calendar month of the preceding year or 100% of the taxpayer's
23actual liability for the quarter monthly reporting period. The
24amount of such quarter monthly payments shall be credited
25against the final tax liability of the taxpayer's return for
26that month. Before October 1, 2000, once applicable, the

 

 

HB5879- 56 -LRB101 23487 HLH 74898 b

1requirement of the making of quarter monthly payments to the
2Department by taxpayers having an average monthly tax liability
3of $10,000 or more as determined in the manner provided above
4shall continue until such taxpayer's average monthly liability
5to the Department during the preceding 4 complete calendar
6quarters (excluding the month of highest liability and the
7month of lowest liability) is less than $9,000, or until such
8taxpayer's average monthly liability to the Department as
9computed for each calendar quarter of the 4 preceding complete
10calendar quarter period is less than $10,000. However, if a
11taxpayer can show the Department that a substantial change in
12the taxpayer's business has occurred which causes the taxpayer
13to anticipate that his average monthly tax liability for the
14reasonably foreseeable future will fall below the $10,000
15threshold stated above, then such taxpayer may petition the
16Department for a change in such taxpayer's reporting status. On
17and after October 1, 2000, once applicable, the requirement of
18the making of quarter monthly payments to the Department by
19taxpayers having an average monthly tax liability of $20,000 or
20more as determined in the manner provided above shall continue
21until such taxpayer's average monthly liability to the
22Department during the preceding 4 complete calendar quarters
23(excluding the month of highest liability and the month of
24lowest liability) is less than $19,000 or until such taxpayer's
25average monthly liability to the Department as computed for
26each calendar quarter of the 4 preceding complete calendar

 

 

HB5879- 57 -LRB101 23487 HLH 74898 b

1quarter period is less than $20,000. However, if a taxpayer can
2show the Department that a substantial change in the taxpayer's
3business has occurred which causes the taxpayer to anticipate
4that his average monthly tax liability for the reasonably
5foreseeable future will fall below the $20,000 threshold stated
6above, then such taxpayer may petition the Department for a
7change in such taxpayer's reporting status. The Department
8shall change such taxpayer's reporting status unless it finds
9that such change is seasonal in nature and not likely to be
10long term. If any such quarter monthly payment is not paid at
11the time or in the amount required by this Section, then the
12taxpayer shall be liable for penalties and interest on the
13difference between the minimum amount due as a payment and the
14amount of such quarter monthly payment actually and timely
15paid, except insofar as the taxpayer has previously made
16payments for that month to the Department in excess of the
17minimum payments previously due as provided in this Section.
18The Department shall make reasonable rules and regulations to
19govern the quarter monthly payment amount and quarter monthly
20payment dates for taxpayers who file on other than a calendar
21monthly basis.
22    The provisions of this paragraph apply before October 1,
232001. Without regard to whether a taxpayer is required to make
24quarter monthly payments as specified above, any taxpayer who
25is required by Section 2d of this Act to collect and remit
26prepaid taxes and has collected prepaid taxes which average in

 

 

HB5879- 58 -LRB101 23487 HLH 74898 b

1excess of $25,000 per month during the preceding 2 complete
2calendar quarters, shall file a return with the Department as
3required by Section 2f and shall make payments to the
4Department on or before the 7th, 15th, 22nd and last day of the
5month during which such liability is incurred. If the month
6during which such tax liability is incurred began prior to
7September 1, 1985 (the effective date of Public Act 84-221),
8each payment shall be in an amount not less than 22.5% of the
9taxpayer's actual liability under Section 2d. If the month
10during which such tax liability is incurred begins on or after
11January 1, 1986, each payment shall be in an amount equal to
1222.5% of the taxpayer's actual liability for the month or 27.5%
13of the taxpayer's liability for the same calendar month of the
14preceding calendar year. If the month during which such tax
15liability is incurred begins on or after January 1, 1987, each
16payment shall be in an amount equal to 22.5% of the taxpayer's
17actual liability for the month or 26.25% of the taxpayer's
18liability for the same calendar month of the preceding year.
19The amount of such quarter monthly payments shall be credited
20against the final tax liability of the taxpayer's return for
21that month filed under this Section or Section 2f, as the case
22may be. Once applicable, the requirement of the making of
23quarter monthly payments to the Department pursuant to this
24paragraph shall continue until such taxpayer's average monthly
25prepaid tax collections during the preceding 2 complete
26calendar quarters is $25,000 or less. If any such quarter

 

 

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1monthly payment is not paid at the time or in the amount
2required, the taxpayer shall be liable for penalties and
3interest on such difference, except insofar as the taxpayer has
4previously made payments for that month in excess of the
5minimum payments previously due.
6    The provisions of this paragraph apply on and after October
71, 2001. Without regard to whether a taxpayer is required to
8make quarter monthly payments as specified above, any taxpayer
9who is required by Section 2d of this Act to collect and remit
10prepaid taxes and has collected prepaid taxes that average in
11excess of $20,000 per month during the preceding 4 complete
12calendar quarters shall file a return with the Department as
13required by Section 2f and shall make payments to the
14Department on or before the 7th, 15th, 22nd and last day of the
15month during which the liability is incurred. Each payment
16shall be in an amount equal to 22.5% of the taxpayer's actual
17liability for the month or 25% of the taxpayer's liability for
18the same calendar month of the preceding year. The amount of
19the quarter monthly payments shall be credited against the
20final tax liability of the taxpayer's return for that month
21filed under this Section or Section 2f, as the case may be.
22Once applicable, the requirement of the making of quarter
23monthly payments to the Department pursuant to this paragraph
24shall continue until the taxpayer's average monthly prepaid tax
25collections during the preceding 4 complete calendar quarters
26(excluding the month of highest liability and the month of

 

 

HB5879- 60 -LRB101 23487 HLH 74898 b

1lowest liability) is less than $19,000 or until such taxpayer's
2average monthly liability to the Department as computed for
3each calendar quarter of the 4 preceding complete calendar
4quarters is less than $20,000. If any such quarter monthly
5payment is not paid at the time or in the amount required, the
6taxpayer shall be liable for penalties and interest on such
7difference, except insofar as the taxpayer has previously made
8payments for that month in excess of the minimum payments
9previously due.
10    If any payment provided for in this Section exceeds the
11taxpayer's liabilities under this Act, the Use Tax Act, the
12Service Occupation Tax Act and the Service Use Tax Act, as
13shown on an original monthly return, the Department shall, if
14requested by the taxpayer, issue to the taxpayer a credit
15memorandum no later than 30 days after the date of payment. The
16credit evidenced by such credit memorandum may be assigned by
17the taxpayer to a similar taxpayer under this Act, the Use Tax
18Act, the Service Occupation Tax Act or the Service Use Tax Act,
19in accordance with reasonable rules and regulations to be
20prescribed by the Department. If no such request is made, the
21taxpayer may credit such excess payment against tax liability
22subsequently to be remitted to the Department under this Act,
23the Use Tax Act, the Service Occupation Tax Act or the Service
24Use Tax Act, in accordance with reasonable rules and
25regulations prescribed by the Department. If the Department
26subsequently determined that all or any part of the credit

 

 

HB5879- 61 -LRB101 23487 HLH 74898 b

1taken was not actually due to the taxpayer, the taxpayer's 2.1%
2and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
3of the difference between the credit taken and that actually
4due, and that taxpayer shall be liable for penalties and
5interest on such difference.
6    If a retailer of motor fuel is entitled to a credit under
7Section 2d of this Act which exceeds the taxpayer's liability
8to the Department under this Act for the month which the
9taxpayer is filing a return, the Department shall issue the
10taxpayer a credit memorandum for the excess.
11    Beginning January 1, 1990, each month the Department shall
12pay into the Local Government Tax Fund, a special fund in the
13State treasury which is hereby created, the net revenue
14realized for the preceding month from the 1% tax imposed under
15this Act.
16    Beginning January 1, 1990, each month the Department shall
17pay into the County and Mass Transit District Fund, a special
18fund in the State treasury which is hereby created, 4% of the
19net revenue realized for the preceding month from the 6.25%
20general rate other than aviation fuel sold on or after December
211, 2019. This exception for aviation fuel only applies for so
22long as the revenue use requirements of 49 U.S.C. 47107(b) and
2349 U.S.C. 47133 are binding on the State.
24    Beginning August 1, 2000, each month the Department shall
25pay into the County and Mass Transit District Fund 20% of the
26net revenue realized for the preceding month from the 1.25%

 

 

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1rate on the selling price of motor fuel and gasohol. Beginning
2September 1, 2010, each month the Department shall pay into the
3County and Mass Transit District Fund 20% of the net revenue
4realized for the preceding month from the 1.25% rate on the
5selling price of sales tax holiday items.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund 16% of the net revenue
8realized for the preceding month from the 6.25% general rate on
9the selling price of tangible personal property other than
10aviation fuel sold on or after December 1, 2019. This exception
11for aviation fuel only applies for so long as the revenue use
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
13binding on the State.
14    For aviation fuel sold on or after December 1, 2019, each
15month the Department shall pay into the State Aviation Program
16Fund 20% of the net revenue realized for the preceding month
17from the 6.25% general rate on the selling price of aviation
18fuel, less an amount estimated by the Department to be required
19for refunds of the 20% portion of the tax on aviation fuel
20under this Act, which amount shall be deposited into the
21Aviation Fuel Sales Tax Refund Fund. The Department shall only
22pay moneys into the State Aviation Program Fund and the
23Aviation Fuel Sales Tax Refund Fund under this Act for so long
24as the revenue use requirements of 49 U.S.C. 47107(b) and 49
25U.S.C. 47133 are binding on the State.
26    Beginning August 1, 2000, each month the Department shall

 

 

HB5879- 63 -LRB101 23487 HLH 74898 b

1pay into the Local Government Tax Fund 80% of the net revenue
2realized for the preceding month from the 1.25% rate on the
3selling price of motor fuel and gasohol. Beginning September 1,
42010, each month the Department shall pay into the Local
5Government Tax Fund 80% of the net revenue realized for the
6preceding month from the 1.25% rate on the selling price of
7sales tax holiday items.
8    Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14are now taxed at 6.25%.
15    Beginning July 1, 2011, each month the Department shall pay
16into the Clean Air Act Permit Fund 80% of the net revenue
17realized for the preceding month from the 6.25% general rate on
18the selling price of sorbents used in Illinois in the process
19of sorbent injection as used to comply with the Environmental
20Protection Act or the federal Clean Air Act, but the total
21payment into the Clean Air Act Permit Fund under this Act and
22the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
23    Beginning July 1, 2013, each month the Department shall pay
24into the Underground Storage Tank Fund from the proceeds
25collected under this Act, the Use Tax Act, the Service Use Tax
26Act, and the Service Occupation Tax Act an amount equal to the

 

 

HB5879- 64 -LRB101 23487 HLH 74898 b

1average monthly deficit in the Underground Storage Tank Fund
2during the prior year, as certified annually by the Illinois
3Environmental Protection Agency, but the total payment into the
4Underground Storage Tank Fund under this Act, the Use Tax Act,
5the Service Use Tax Act, and the Service Occupation Tax Act
6shall not exceed $18,000,000 in any State fiscal year. As used
7in this paragraph, the "average monthly deficit" shall be equal
8to the difference between the average monthly claims for
9payment by the fund and the average monthly revenues deposited
10into the fund, excluding payments made pursuant to this
11paragraph.
12    Beginning July 1, 2015, of the remainder of the moneys
13received by the Department under the Use Tax Act, the Service
14Use Tax Act, the Service Occupation Tax Act, and this Act, each
15month the Department shall deposit $500,000 into the State
16Crime Laboratory Fund.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, (a) 1.75% thereof shall be paid into the
19Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
20and after July 1, 1989, 3.8% thereof shall be paid into the
21Build Illinois Fund; provided, however, that if in any fiscal
22year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
23may be, of the moneys received by the Department and required
24to be paid into the Build Illinois Fund pursuant to this Act,
25Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
26Act, and Section 9 of the Service Occupation Tax Act, such Acts

 

 

HB5879- 65 -LRB101 23487 HLH 74898 b

1being hereinafter called the "Tax Acts" and such aggregate of
22.2% or 3.8%, as the case may be, of moneys being hereinafter
3called the "Tax Act Amount", and (2) the amount transferred to
4the Build Illinois Fund from the State and Local Sales Tax
5Reform Fund shall be less than the Annual Specified Amount (as
6hereinafter defined), an amount equal to the difference shall
7be immediately paid into the Build Illinois Fund from other
8moneys received by the Department pursuant to the Tax Acts; the
9"Annual Specified Amount" means the amounts specified below for
10fiscal years 1986 through 1993:
11Fiscal YearAnnual Specified Amount
121986$54,800,000
131987$76,650,000
141988$80,480,000
151989$88,510,000
161990$115,330,000
171991$145,470,000
181992$182,730,000
191993$206,520,000;
20and means the Certified Annual Debt Service Requirement (as
21defined in Section 13 of the Build Illinois Bond Act) or the
22Tax Act Amount, whichever is greater, for fiscal year 1994 and
23each fiscal year thereafter; and further provided, that if on
24the last business day of any month the sum of (1) the Tax Act
25Amount required to be deposited into the Build Illinois Bond
26Account in the Build Illinois Fund during such month and (2)

 

 

HB5879- 66 -LRB101 23487 HLH 74898 b

1the amount transferred to the Build Illinois Fund from the
2State and Local Sales Tax Reform Fund shall have been less than
31/12 of the Annual Specified Amount, an amount equal to the
4difference shall be immediately paid into the Build Illinois
5Fund from other moneys received by the Department pursuant to
6the Tax Acts; and, further provided, that in no event shall the
7payments required under the preceding proviso result in
8aggregate payments into the Build Illinois Fund pursuant to
9this clause (b) for any fiscal year in excess of the greater of
10(i) the Tax Act Amount or (ii) the Annual Specified Amount for
11such fiscal year. The amounts payable into the Build Illinois
12Fund under clause (b) of the first sentence in this paragraph
13shall be payable only until such time as the aggregate amount
14on deposit under each trust indenture securing Bonds issued and
15outstanding pursuant to the Build Illinois Bond Act is
16sufficient, taking into account any future investment income,
17to fully provide, in accordance with such indenture, for the
18defeasance of or the payment of the principal of, premium, if
19any, and interest on the Bonds secured by such indenture and on
20any Bonds expected to be issued thereafter and all fees and
21costs payable with respect thereto, all as certified by the
22Director of the Bureau of the Budget (now Governor's Office of
23Management and Budget). If on the last business day of any
24month in which Bonds are outstanding pursuant to the Build
25Illinois Bond Act, the aggregate of moneys deposited in the
26Build Illinois Bond Account in the Build Illinois Fund in such

 

 

HB5879- 67 -LRB101 23487 HLH 74898 b

1month shall be less than the amount required to be transferred
2in such month from the Build Illinois Bond Account to the Build
3Illinois Bond Retirement and Interest Fund pursuant to Section
413 of the Build Illinois Bond Act, an amount equal to such
5deficiency shall be immediately paid from other moneys received
6by the Department pursuant to the Tax Acts to the Build
7Illinois Fund; provided, however, that any amounts paid to the
8Build Illinois Fund in any fiscal year pursuant to this
9sentence shall be deemed to constitute payments pursuant to
10clause (b) of the first sentence of this paragraph and shall
11reduce the amount otherwise payable for such fiscal year
12pursuant to that clause (b). The moneys received by the
13Department pursuant to this Act and required to be deposited
14into the Build Illinois Fund are subject to the pledge, claim
15and charge set forth in Section 12 of the Build Illinois Bond
16Act.
17    Subject to payment of amounts into the Build Illinois Fund
18as provided in the preceding paragraph or in any amendment
19thereto hereafter enacted, the following specified monthly
20installment of the amount requested in the certificate of the
21Chairman of the Metropolitan Pier and Exposition Authority
22provided under Section 8.25f of the State Finance Act, but not
23in excess of sums designated as "Total Deposit", shall be
24deposited in the aggregate from collections under Section 9 of
25the Use Tax Act, Section 9 of the Service Use Tax Act, Section
269 of the Service Occupation Tax Act, and Section 3 of the

 

 

HB5879- 68 -LRB101 23487 HLH 74898 b

1Retailers' Occupation Tax Act into the McCormick Place
2Expansion Project Fund in the specified fiscal years.
3Fiscal YearTotal Deposit
41993         $0
51994 53,000,000
61995 58,000,000
71996 61,000,000
81997 64,000,000
91998 68,000,000
101999 71,000,000
112000 75,000,000
122001 80,000,000
132002 93,000,000
142003 99,000,000
152004103,000,000
162005108,000,000
172006113,000,000
182007119,000,000
192008126,000,000
202009132,000,000
212010139,000,000
222011146,000,000
232012153,000,000
242013161,000,000
252014170,000,000
262015179,000,000

 

 

HB5879- 69 -LRB101 23487 HLH 74898 b

12016189,000,000
22017199,000,000
32018210,000,000
42019221,000,000
52020233,000,000
62021300,000,000
72022300,000,000
82023300,000,000
92024 300,000,000
102025 300,000,000
112026 300,000,000
122027 375,000,000
132028 375,000,000
142029 375,000,000
152030 375,000,000
162031 375,000,000
172032 375,000,000
182033375,000,000
192034375,000,000
202035375,000,000
212036450,000,000
22and
23each fiscal year
24thereafter that bonds
25are outstanding under
26Section 13.2 of the

 

 

HB5879- 70 -LRB101 23487 HLH 74898 b

1Metropolitan Pier and
2Exposition Authority Act,
3but not after fiscal year 2060.
4    Beginning July 20, 1993 and in each month of each fiscal
5year thereafter, one-eighth of the amount requested in the
6certificate of the Chairman of the Metropolitan Pier and
7Exposition Authority for that fiscal year, less the amount
8deposited into the McCormick Place Expansion Project Fund by
9the State Treasurer in the respective month under subsection
10(g) of Section 13 of the Metropolitan Pier and Exposition
11Authority Act, plus cumulative deficiencies in the deposits
12required under this Section for previous months and years,
13shall be deposited into the McCormick Place Expansion Project
14Fund, until the full amount requested for the fiscal year, but
15not in excess of the amount specified above as "Total Deposit",
16has been deposited.
17    Subject to payment of amounts into the Capital Projects
18Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, for aviation fuel sold on or after December 1, 2019,
22the Department shall each month deposit into the Aviation Fuel
23Sales Tax Refund Fund an amount estimated by the Department to
24be required for refunds of the 80% portion of the tax on
25aviation fuel under this Act. The Department shall only deposit
26moneys into the Aviation Fuel Sales Tax Refund Fund under this

 

 

HB5879- 71 -LRB101 23487 HLH 74898 b

1paragraph for so long as the revenue use requirements of 49
2U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning July 1, 1993 and ending on September 30,
72013, the Department shall each month pay into the Illinois Tax
8Increment Fund 0.27% of 80% of the net revenue realized for the
9preceding month from the 6.25% general rate on the selling
10price of tangible personal property.
11    Subject to payment of amounts into the Build Illinois Fund
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, beginning with the receipt of the first report of
15taxes paid by an eligible business and continuing for a 25-year
16period, the Department shall each month pay into the Energy
17Infrastructure Fund 80% of the net revenue realized from the
186.25% general rate on the selling price of Illinois-mined coal
19that was sold to an eligible business. For purposes of this
20paragraph, the term "eligible business" means a new electric
21generating facility certified pursuant to Section 605-332 of
22the Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    Subject to payment of amounts into the Build Illinois Fund,
25the McCormick Place Expansion Project Fund, the Illinois Tax
26Increment Fund, and the Energy Infrastructure Fund pursuant to

 

 

HB5879- 72 -LRB101 23487 HLH 74898 b

1the preceding paragraphs or in any amendments to this Section
2hereafter enacted, beginning on the first day of the first
3calendar month to occur on or after August 26, 2014 (the
4effective date of Public Act 98-1098), each month, from the
5collections made under Section 9 of the Use Tax Act, Section 9
6of the Service Use Tax Act, Section 9 of the Service Occupation
7Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
8the Department shall pay into the Tax Compliance and
9Administration Fund, to be used, subject to appropriation, to
10fund additional auditors and compliance personnel at the
11Department of Revenue, an amount equal to 1/12 of 5% of 80% of
12the cash receipts collected during the preceding fiscal year by
13the Audit Bureau of the Department under the Use Tax Act, the
14Service Use Tax Act, the Service Occupation Tax Act, the
15Retailers' Occupation Tax Act, and associated local occupation
16and use taxes administered by the Department.
17    Subject to payments of amounts into the Build Illinois
18Fund, the McCormick Place Expansion Project Fund, the Illinois
19Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
20Compliance and Administration Fund as provided in this Section,
21beginning on July 1, 2018 the Department shall pay each month
22into the Downstate Public Transportation Fund the moneys
23required to be so paid under Section 2-3 of the Downstate
24Public Transportation Act.
25    Subject to successful execution and delivery of a
26public-private agreement between the public agency and private

 

 

HB5879- 73 -LRB101 23487 HLH 74898 b

1entity and completion of the civic build, beginning on July 1,
22023, of the remainder of the moneys received by the Department
3under the Use Tax Act, the Service Use Tax Act, the Service
4Occupation Tax Act, and this Act, the Department shall deposit
5the following specified deposits in the aggregate from
6collections under the Use Tax Act, the Service Use Tax Act, the
7Service Occupation Tax Act, and the Retailers' Occupation Tax
8Act, as required under Section 8.25g of the State Finance Act
9for distribution consistent with the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11The moneys received by the Department pursuant to this Act and
12required to be deposited into the Civic and Transit
13Infrastructure Fund are subject to the pledge, claim and charge
14set forth in Section 25-55 of the Public-Private Partnership
15for Civic and Transit Infrastructure Project Act. As used in
16this paragraph, "civic build", "private entity",
17"public-private agreement", and "public agency" have the
18meanings provided in Section 25-10 of the Public-Private
19Partnership for Civic and Transit Infrastructure Project Act.
20        Fiscal Year.............................Total Deposit
21        2024.....................................$200,000,000
22        2025....................................$206,000,000
23        2026....................................$212,200,000
24        2027....................................$218,500,000
25        2028....................................$225,100,000
26        2029....................................$288,700,000

 

 

HB5879- 74 -LRB101 23487 HLH 74898 b

1        2030....................................$298,900,000
2        2031....................................$309,300,000
3        2032....................................$320,100,000
4        2033....................................$331,200,000
5        2034....................................$341,200,000
6        2035....................................$351,400,000
7        2036....................................$361,900,000
8        2037....................................$372,800,000
9        2038....................................$384,000,000
10        2039....................................$395,500,000
11        2040....................................$407,400,000
12        2041....................................$419,600,000
13        2042....................................$432,200,000
14        2043....................................$445,100,000
15    Beginning July 1, 2021 and until July 1, 2022, subject to
16the payment of amounts into the County and Mass Transit
17District Fund, the Local Government Tax Fund, the Build
18Illinois Fund, the McCormick Place Expansion Project Fund, the
19Illinois Tax Increment Fund, the Energy Infrastructure Fund,
20and the Tax Compliance and Administration Fund as provided in
21this Section, the Department shall pay each month into the Road
22Fund the amount estimated to represent 16% of the net revenue
23realized from the taxes imposed on motor fuel and gasohol.
24Beginning July 1, 2022 and until July 1, 2023, subject to the
25payment of amounts into the County and Mass Transit District
26Fund, the Local Government Tax Fund, the Build Illinois Fund,

 

 

HB5879- 75 -LRB101 23487 HLH 74898 b

1the McCormick Place Expansion Project Fund, the Illinois Tax
2Increment Fund, the Energy Infrastructure Fund, and the Tax
3Compliance and Administration Fund as provided in this Section,
4the Department shall pay each month into the Road Fund the
5amount estimated to represent 32% of the net revenue realized
6from the taxes imposed on motor fuel and gasohol. Beginning
7July 1, 2023 and until July 1, 2024, subject to the payment of
8amounts into the County and Mass Transit District Fund, the
9Local Government Tax Fund, the Build Illinois Fund, the
10McCormick Place Expansion Project Fund, the Illinois Tax
11Increment Fund, the Energy Infrastructure Fund, and the Tax
12Compliance and Administration Fund as provided in this Section,
13the Department shall pay each month into the Road Fund the
14amount estimated to represent 48% of the net revenue realized
15from the taxes imposed on motor fuel and gasohol. Beginning
16July 1, 2024 and until July 1, 2025, subject to the payment of
17amounts into the County and Mass Transit District Fund, the
18Local Government Tax Fund, the Build Illinois Fund, the
19McCormick Place Expansion Project Fund, the Illinois Tax
20Increment Fund, the Energy Infrastructure Fund, and the Tax
21Compliance and Administration Fund as provided in this Section,
22the Department shall pay each month into the Road Fund the
23amount estimated to represent 64% of the net revenue realized
24from the taxes imposed on motor fuel and gasohol. Beginning on
25July 1, 2025, subject to the payment of amounts into the County
26and Mass Transit District Fund, the Local Government Tax Fund,

 

 

HB5879- 76 -LRB101 23487 HLH 74898 b

1the Build Illinois Fund, the McCormick Place Expansion Project
2Fund, the Illinois Tax Increment Fund, the Energy
3Infrastructure Fund, and the Tax Compliance and Administration
4Fund as provided in this Section, the Department shall pay each
5month into the Road Fund the amount estimated to represent 80%
6of the net revenue realized from the taxes imposed on motor
7fuel and gasohol. As used in this paragraph "motor fuel" has
8the meaning given to that term in Section 1.1 of the Motor Fuel
9Tax Act, and "gasohol" has the meaning given to that term in
10Section 3-40 of the Use Tax Act.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, 75% thereof shall be paid into the State
13Treasury and 25% shall be reserved in a special account and
14used only for the transfer to the Common School Fund as part of
15the monthly transfer from the General Revenue Fund in
16accordance with Section 8a of the State Finance Act.
17    The Department may, upon separate written notice to a
18taxpayer, require the taxpayer to prepare and file with the
19Department on a form prescribed by the Department within not
20less than 60 days after receipt of the notice an annual
21information return for the tax year specified in the notice.
22Such annual return to the Department shall include a statement
23of gross receipts as shown by the retailer's last Federal
24income tax return. If the total receipts of the business as
25reported in the Federal income tax return do not agree with the
26gross receipts reported to the Department of Revenue for the

 

 

HB5879- 77 -LRB101 23487 HLH 74898 b

1same period, the retailer shall attach to his annual return a
2schedule showing a reconciliation of the 2 amounts and the
3reasons for the difference. The retailer's annual return to the
4Department shall also disclose the cost of goods sold by the
5retailer during the year covered by such return, opening and
6closing inventories of such goods for such year, costs of goods
7used from stock or taken from stock and given away by the
8retailer during such year, payroll information of the
9retailer's business during such year and any additional
10reasonable information which the Department deems would be
11helpful in determining the accuracy of the monthly, quarterly
12or annual returns filed by such retailer as provided for in
13this Section.
14    If the annual information return required by this Section
15is not filed when and as required, the taxpayer shall be liable
16as follows:
17        (i) Until January 1, 1994, the taxpayer shall be liable
18    for a penalty equal to 1/6 of 1% of the tax due from such
19    taxpayer under this Act during the period to be covered by
20    the annual return for each month or fraction of a month
21    until such return is filed as required, the penalty to be
22    assessed and collected in the same manner as any other
23    penalty provided for in this Act.
24        (ii) On and after January 1, 1994, the taxpayer shall
25    be liable for a penalty as described in Section 3-4 of the
26    Uniform Penalty and Interest Act.

 

 

HB5879- 78 -LRB101 23487 HLH 74898 b

1    The chief executive officer, proprietor, owner or highest
2ranking manager shall sign the annual return to certify the
3accuracy of the information contained therein. Any person who
4willfully signs the annual return containing false or
5inaccurate information shall be guilty of perjury and punished
6accordingly. The annual return form prescribed by the
7Department shall include a warning that the person signing the
8return may be liable for perjury.
9    The provisions of this Section concerning the filing of an
10annual information return do not apply to a retailer who is not
11required to file an income tax return with the United States
12Government.
13    As soon as possible after the first day of each month, upon
14certification of the Department of Revenue, the Comptroller
15shall order transferred and the Treasurer shall transfer from
16the General Revenue Fund to the Motor Fuel Tax Fund an amount
17equal to 1.7% of 80% of the net revenue realized under this Act
18for the second preceding month. Beginning April 1, 2000, this
19transfer is no longer required and shall not be made.
20    Net revenue realized for a month shall be the revenue
21collected by the State pursuant to this Act, less the amount
22paid out during that month as refunds to taxpayers for
23overpayment of liability.
24    For greater simplicity of administration, manufacturers,
25importers and wholesalers whose products are sold at retail in
26Illinois by numerous retailers, and who wish to do so, may

 

 

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1assume the responsibility for accounting and paying to the
2Department all tax accruing under this Act with respect to such
3sales, if the retailers who are affected do not make written
4objection to the Department to this arrangement.
5    Any person who promotes, organizes, provides retail
6selling space for concessionaires or other types of sellers at
7the Illinois State Fair, DuQuoin State Fair, county fairs,
8local fairs, art shows, flea markets and similar exhibitions or
9events, including any transient merchant as defined by Section
102 of the Transient Merchant Act of 1987, is required to file a
11report with the Department providing the name of the merchant's
12business, the name of the person or persons engaged in
13merchant's business, the permanent address and Illinois
14Retailers Occupation Tax Registration Number of the merchant,
15the dates and location of the event and other reasonable
16information that the Department may require. The report must be
17filed not later than the 20th day of the month next following
18the month during which the event with retail sales was held.
19Any person who fails to file a report required by this Section
20commits a business offense and is subject to a fine not to
21exceed $250.
22    Any person engaged in the business of selling tangible
23personal property at retail as a concessionaire or other type
24of seller at the Illinois State Fair, county fairs, art shows,
25flea markets and similar exhibitions or events, or any
26transient merchants, as defined by Section 2 of the Transient

 

 

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1Merchant Act of 1987, may be required to make a daily report of
2the amount of such sales to the Department and to make a daily
3payment of the full amount of tax due. The Department shall
4impose this requirement when it finds that there is a
5significant risk of loss of revenue to the State at such an
6exhibition or event. Such a finding shall be based on evidence
7that a substantial number of concessionaires or other sellers
8who are not residents of Illinois will be engaging in the
9business of selling tangible personal property at retail at the
10exhibition or event, or other evidence of a significant risk of
11loss of revenue to the State. The Department shall notify
12concessionaires and other sellers affected by the imposition of
13this requirement. In the absence of notification by the
14Department, the concessionaires and other sellers shall file
15their returns as otherwise required in this Section.
16(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
17100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
1815, Section 15-25, eff. 6-5-19; 101-10, Article 25, Section
1925-120, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
206-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
21    Section 10. The Leveling the Playing Field for Illinois
22Retail Act is amended by changing Sections 5-5 and 5-25 as
23follows:
 
24    (35 ILCS 185/5-5)

 

 

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1    Sec. 5-5. Findings. The General Assembly finds that
2certified service providers and certified automated systems
3simplify use and occupation tax compliance for remote
4retailers, which fosters higher levels of accurate tax
5collection and remittance and generates administrative savings
6and new marginal tax revenue for both State and local taxing
7jurisdictions. By making the services of certified service
8providers and certified automated systems available to remote
9retailers without charge, other than their retailer customer's
10retail discount, as provided in this Act, the State will
11substantially eliminate the burden on those remote retailers to
12collect and remit both State and local taxing jurisdiction use
13and occupation taxes. While providing a means for remote
14retailers to collect and remit tax on an even basis with
15Illinois retailers, this Act also protects existing local tax
16revenue streams by retaining origin sourcing for all
17transactions by retailers maintaining a physical presence in
18Illinois.
19(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
20    (35 ILCS 185/5-25)
21    Sec. 5-25. Certification.
22    (a) The Department shall, no later than July 1, 2020:
23        (1) establish uniform minimum standards that companies
24    wishing to be designated as a certified service provider in
25    this State must meet;

 

 

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1        (2) establish uniform minimum standards that certified
2    automated systems must meet;
3        (3) establish a certification process to review the
4    systems of companies wishing to be designated as a
5    certified service provider in this State or of companies
6    wishing to use a certified automated process; this
7    certification process shall provide that companies that
8    meet all required standards and whose systems have been
9    tested and approved by the Department for properly
10    determining the taxability of items to be sold, the correct
11    tax rate to apply to a transaction, and the appropriate
12    jurisdictions to which the tax shall be remitted, shall be
13    certified;
14        (4) enter into a contractual relationship with each
15    company that qualifies as a certified service provider or
16    that will be using a certified automated system; those
17    contracts shall, at a minimum, provide:
18            (A) that the certified service provider shall be
19        held liable for the tax imposed under this Act and the
20        Use Tax Act and all applicable local occupation taxes
21        administered by the Department if the certified
22        service provider fails to correctly remit the tax after
23        having been provided with the tax and information by a
24        remote retailer to correctly remit the taxes imposed
25        under this Act and the Use Tax Act and all applicable
26        local occupation taxes administered by the Department;

 

 

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1        if the certified service provider demonstrates to the
2        satisfaction of the Department that its failure to
3        correctly remit tax on a retail sale resulted from the
4        certified service provider's good faith reliance on
5        incorrect or insufficient information provided by the
6        remote retailer, the certified service provider shall
7        be relieved of liability for the tax on that retail
8        sale; in that case, the remote retailer is liable for
9        any resulting tax due;
10            (B) the responsibilities of the certified service
11        provider and the remote retailers that contract with
12        the certified service provider or the user of a
13        certified automated system related to record keeping
14        and auditing consistent with requirements imposed
15        under the Retailers' Occupation Tax Act and the Use Tax
16        Act;
17            (C) for the protection and confidentiality of tax
18        information consistent with requirements imposed under
19        the Retailers' Occupation Tax Act and the Use Tax Act;
20            (D) that a certified service provider may claim the
21        discount provided for in Section 3 of the Retailers'
22        Occupation Tax Act for the tax dollars it collects and
23        timely remits on returns that are timely filed with the
24        Department on behalf of remote retailers; remote
25        retailers using a certified service provider may not
26        claim the discount allowed in Section 3 of the

 

 

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1        Retailers' Occupation Tax Act with respect to those
2        collections compensation equal to 1.75% of the tax
3        dollars collected and remitted to the State by a
4        certified service provider on a timely basis, along
5        with a return that has been timely filed, on behalf of
6        remote retailers; remote retailers using a certified
7        service provider may not claim the vendor's discount
8        allowed under the Retailers' Occupation Tax Act or the
9        Service Occupation Tax Act; and
10            (E) that the certified service provider shall file
11        a separate return for each remote retailer with which
12        it has a Tax Remittance Agreement.
13    The provisions of this Section shall supersede the
14provisions of the Illinois Procurement Code.
15    (b) The Department may act jointly with other states to
16establish the minimum standards and process for certification
17required by paragraphs (1), (2), and (3) of subsection (a).
18    (c) When the systems of a certified service provider or
19certified automated systems are updated or upgraded, they must
20be recertified by the Department. Notification of changes shall
21be provided to the Department prior to implementation. Upon
22receipt of such notification, the Department shall review and
23test the changes to assess whether the updated system of the
24certified service provider or the updated certified automated
25system can properly determine the taxability of items to be
26sold, the correct tax rate to apply to a transaction, and the

 

 

HB5879- 85 -LRB101 23487 HLH 74898 b

1appropriate jurisdictions to which the tax shall be remitted.
2The Department shall recertify updated systems that meet these
3requirements. The certified service provider or retailer using
4a certified automated system shall be liable for any tax
5resulting from errors caused by use of an updated or upgraded
6system prior to recertification by the Department. In addition
7to these procedures, the Department may periodically review the
8system of a certified service provider or the certified
9automated system used by a retailer to ensure that the system
10can properly determine the taxability of items to be sold, the
11correct tax rate to apply to a transaction, and the appropriate
12jurisdictions to which the tax shall be remitted.
13(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.