Revenue Committee

Filed: 02/19/04

 

 


 
 

 


 
09300HB4234ham001 LRB093 16236 BDD 47515 a

1
AMENDMENT TO HOUSE BILL 4234

2     AMENDMENT NO. ______. Amend House Bill 4234 by replacing
3 everything after the enacting clause with the following:
4     "Section 5. The Use Tax Act is amended by changing Section
5 3-85 as follows:
 
6     (35 ILCS 105/3-85)
7     Sec. 3-85. Manufacturer's Purchase Credit. For purchases
8 of machinery and equipment made on and after January 1, 1995
9 and through June 30, 2003, a purchaser of manufacturing
10 machinery and equipment that qualifies for the exemption
11 provided by paragraph (18) of Section 3-5 of this Act earns a
12 credit in an amount equal to a fixed percentage of the tax
13 which would have been incurred under this Act on those
14 purchases. For purchases of graphic arts machinery and
15 equipment made on or after July 1, 1996 and through June 30,
16 2003, a purchaser of graphic arts machinery and equipment that
17 qualifies for the exemption provided by paragraph (6) of
18 Section 3-5 of this Act earns a credit in an amount equal to a
19 fixed percentage of the tax that would have been incurred under
20 this Act on those purchases. The credit earned for purchases of
21 manufacturing machinery and equipment or graphic arts
22 machinery and equipment shall be referred to as the
23 Manufacturer's Purchase Credit. A graphic arts producer is a
24 person engaged in graphic arts production as defined in Section

 

 

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1 2-30 of the Retailers' Occupation Tax Act. Beginning July 1,
2 1996, all references in this Section to manufacturers or
3 manufacturing shall also be deemed to refer to graphic arts
4 producers or graphic arts production.
5     The amount of credit shall be a percentage of the tax that
6 would have been incurred on the purchase of manufacturing
7 machinery and equipment or graphic arts machinery and equipment
8 if the exemptions provided by paragraph (6) or paragraph (18)
9 of Section 3-5 of this Act had not been applicable. The
10 percentage shall be as follows:
11         (1) 15% for purchases made on or before June 30, 1995.
12         (2) 25% for purchases made after June 30, 1995, and on
13     or before June 30, 1996.
14         (3) 40% for purchases made after June 30, 1996, and on
15     or before June 30, 1997.
16         (4) 50% for purchases made on or after July 1, 1997.
17     A purchaser of production related tangible personal
18 property desiring to use the Manufacturer's Purchase Credit
19 shall certify to the seller prior to October 1, 2005 2003 that
20 the purchaser is satisfying all or part of the liability under
21 the Use Tax Act or the Service Use Tax Act that is due on the
22 purchase of the production related tangible personal property
23 by use of Manufacturer's Purchase Credit. The Manufacturer's
24 Purchase Credit certification must be dated and shall include
25 the name and address of the purchaser, the purchaser's
26 registration number, if registered, the credit being applied,
27 and a statement that the State Use Tax or Service Use Tax
28 liability is being satisfied with the manufacturer's or graphic
29 arts producer's accumulated purchase credit. Certification may
30 be incorporated into the manufacturer's or graphic arts
31 producer's purchase order. Manufacturer's Purchase Credit
32 certification provided by the manufacturer or graphic arts
33 producer prior to October 1, 2005 2003 may be used to satisfy
34 the retailer's or serviceman's liability under the Retailers'

 

 

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1 Occupation Tax Act or Service Occupation Tax Act for the credit
2 claimed, not to exceed 6.25% of the receipts subject to tax
3 from a qualifying purchase, but only if the retailer or
4 serviceman reports the Manufacturer's Purchase Credit claimed
5 as required by the Department. A Manufacturer's Purchase Credit
6 reported on any original or amended return filed under this Act
7 after October 20, 2005 2003 shall be disallowed. The
8 Manufacturer's Purchase Credit earned by purchase of exempt
9 manufacturing machinery and equipment or graphic arts
10 machinery and equipment is a non-transferable credit. A
11 manufacturer or graphic arts producer that enters into a
12 contract involving the installation of tangible personal
13 property into real estate within a manufacturing or graphic
14 arts production facility may, prior to October 1, 2005 2003,
15 authorize a construction contractor to utilize credit
16 accumulated by the manufacturer or graphic arts producer to
17 purchase the tangible personal property. A manufacturer or
18 graphic arts producer intending to use accumulated credit to
19 purchase such tangible personal property shall execute a
20 written contract authorizing the contractor to utilize a
21 specified dollar amount of credit. The contractor shall
22 furnish, prior to October 1, 2005 2003, the supplier with the
23 manufacturer's or graphic arts producer's name, registration
24 or resale number, and a statement that a specific amount of the
25 Use Tax or Service Use Tax liability, not to exceed 6.25% of
26 the selling price, is being satisfied with the credit. The
27 manufacturer or graphic arts producer shall remain liable to
28 timely report all information required by the annual Report of
29 Manufacturer's Purchase Credit Used for all credit utilized by
30 a construction contractor.
31     The Manufacturer's Purchase Credit may be used to satisfy
32 liability under the Use Tax Act or the Service Use Tax Act due
33 on the purchase of production related tangible personal
34 property (including purchases by a manufacturer, by a graphic

 

 

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1 arts producer, or by a lessor who rents or leases the use of
2 the property to a manufacturer or graphic arts producer) that
3 does not otherwise qualify for the manufacturing machinery and
4 equipment exemption or the graphic arts machinery and equipment
5 exemption. "Production related tangible personal property"
6 means (i) all tangible personal property used or consumed by
7 the purchaser in a manufacturing facility in which a
8 manufacturing process described in Section 2-45 of the
9 Retailers' Occupation Tax Act takes place, including tangible
10 personal property purchased for incorporation into real estate
11 within a manufacturing facility and including, but not limited
12 to, tangible personal property used or consumed in activities
13 such as preproduction material handling, receiving, quality
14 control, inventory control, storage, staging, and packaging
15 for shipping and transportation purposes; (ii) all tangible
16 personal property used or consumed by the purchaser in a
17 graphic arts facility in which graphic arts production as
18 described in Section 2-30 of the Retailers' Occupation Tax Act
19 takes place, including tangible personal property purchased
20 for incorporation into real estate within a graphic arts
21 facility and including, but not limited to, all tangible
22 personal property used or consumed in activities such as
23 graphic arts preliminary or pre-press production,
24 pre-production material handling, receiving, quality control,
25 inventory control, storage, staging, sorting, labeling,
26 mailing, tying, wrapping, and packaging; and (iii) all tangible
27 personal property used or consumed by the purchaser for
28 research and development. "Production related tangible
29 personal property" does not include (i) tangible personal
30 property used, within or without a manufacturing facility, in
31 sales, purchasing, accounting, fiscal management, marketing,
32 personnel recruitment or selection, or landscaping or (ii)
33 tangible personal property required to be titled or registered
34 with a department, agency, or unit of federal, state, or local

 

 

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1 government. The Manufacturer's Purchase Credit may be used,
2 prior to October 1, 2005 2003, to satisfy the tax arising
3 either from the purchase of machinery and equipment on or after
4 January 1, 1995 for which the exemption provided by paragraph
5 (18) of Section 3-5 of this Act was erroneously claimed, or the
6 purchase of machinery and equipment on or after July 1, 1996
7 for which the exemption provided by paragraph (6) of Section
8 3-5 of this Act was erroneously claimed, but not in
9 satisfaction of penalty, if any, and interest for failure to
10 pay the tax when due. A purchaser of production related
11 tangible personal property who is required to pay Illinois Use
12 Tax or Service Use Tax on the purchase directly to the
13 Department may, prior to October 1, 2005 2003, utilize the
14 Manufacturer's Purchase Credit in satisfaction of the tax
15 arising from that purchase, but not in satisfaction of penalty
16 and interest. A purchaser who uses the Manufacturer's Purchase
17 Credit to purchase property which is later determined not to be
18 production related tangible personal property may be liable for
19 tax, penalty, and interest on the purchase of that property as
20 of the date of purchase but shall be entitled to use the
21 disallowed Manufacturer's Purchase Credit, so long as it has
22 not expired and is used prior to October 1, 2005 2003, on
23 qualifying purchases of production related tangible personal
24 property not previously subject to credit usage. The
25 Manufacturer's Purchase Credit earned by a manufacturer or
26 graphic arts producer expires the last day of the second
27 calendar year following the calendar year in which the credit
28 arose. No Manufacturer's Purchase Credit may be used after
29 September 30, 2005 2003 regardless of when that credit was
30 earned.
31     A purchaser earning Manufacturer's Purchase Credit shall
32 sign and file an annual Report of Manufacturer's Purchase
33 Credit Earned for each calendar year no later than the last day
34 of the sixth month following the calendar year in which a

 

 

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1 Manufacturer's Purchase Credit is earned. A Report of
2 Manufacturer's Purchase Credit Earned shall be filed on forms
3 as prescribed or approved by the Department and shall state,
4 for each month of the calendar year: (i) the total purchase
5 price of all purchases of exempt manufacturing or graphic arts
6 machinery on which the credit was earned; (ii) the total State
7 Use Tax or Service Use Tax which would have been due on those
8 items; (iii) the percentage used to calculate the amount of
9 credit earned; (iv) the amount of credit earned; and (v) such
10 other information as the Department may reasonably require. A
11 purchaser earning Manufacturer's Purchase Credit shall
12 maintain records which identify, as to each purchase of
13 manufacturing or graphic arts machinery and equipment on which
14 the purchaser earned Manufacturer's Purchase Credit, the
15 vendor (including, if applicable, either the vendor's
16 registration number or Federal Employer Identification
17 Number), the purchase price, and the amount of Manufacturer's
18 Purchase Credit earned on each purchase.
19     A purchaser using Manufacturer's Purchase Credit shall
20 sign and file an annual Report of Manufacturer's Purchase
21 Credit Used for each calendar year no later than the last day
22 of the sixth month following the calendar year in which a
23 Manufacturer's Purchase Credit is used. A Report of
24 Manufacturer's Purchase Credit Used shall be filed on forms as
25 prescribed or approved by the Department and shall state, for
26 each month of the calendar year: (i) the total purchase price
27 of production related tangible personal property purchased
28 from Illinois suppliers; (ii) the total purchase price of
29 production related tangible personal property purchased from
30 out-of-state suppliers; (iii) the total amount of credit used
31 during such month; and (iv) such other information as the
32 Department may reasonably require. A purchaser using
33 Manufacturer's Purchase Credit shall maintain records that
34 identify, as to each purchase of production related tangible

 

 

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1 personal property on which the purchaser used Manufacturer's
2 Purchase Credit, the vendor (including, if applicable, either
3 the vendor's registration number or Federal Employer
4 Identification Number), the purchase price, and the amount of
5 Manufacturer's Purchase Credit used on each purchase.
6     No annual report shall be filed before May 1, 1996 or after
7 June 30, 2004. A purchaser that fails to file an annual Report
8 of Manufacturer's Purchase Credit Earned or an annual Report of
9 Manufacturer's Purchase Credit Used by the last day of the
10 sixth month following the end of the calendar year shall
11 forfeit all Manufacturer's Purchase Credit for that calendar
12 year unless it establishes that its failure to file was due to
13 reasonable cause. Manufacturer's Purchase Credit reports may
14 be amended to report and claim credit on qualifying purchases
15 not previously reported at any time before the credit would
16 have expired, unless both the Department and the purchaser have
17 agreed to an extension of the statute of limitations for the
18 issuance of a notice of tax liability as provided in Section 4
19 of the Retailers' Occupation Tax Act. If the time for
20 assessment or refund has been extended, then amended reports
21 for a calendar year may be filed at any time prior to the date
22 to which the statute of limitations for the calendar year or
23 portion thereof has been extended. No Manufacturer's Purchase
24 Credit report filed with the Department for periods prior to
25 January 1, 1995 shall be approved. Manufacturer's Purchase
26 Credit claimed on an amended report may be used, until October
27 1, 2005 2003, to satisfy tax liability under the Use Tax Act or
28 the Service Use Tax Act (i) on qualifying purchases of
29 production related tangible personal property made after the
30 date the amended report is filed or (ii) assessed by the
31 Department on qualifying purchases of production related
32 tangible personal property made in the case of manufacturers on
33 or after January 1, 1995, or in the case of graphic arts
34 producers on or after July 1, 1996.

 

 

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1     If the purchaser is not the manufacturer or a graphic arts
2 producer, but rents or leases the use of the property to a
3 manufacturer or graphic arts producer, the purchaser may earn,
4 report, and use Manufacturer's Purchase Credit in the same
5 manner as a manufacturer or graphic arts producer.
6     A purchaser shall not be entitled to any Manufacturer's
7 Purchase Credit for a purchase that is required to be reported
8 and is not timely reported as provided in this Section. A
9 purchaser remains liable for (i) any tax that was satisfied by
10 use of a Manufacturer's Purchase Credit, as of the date of
11 purchase, if that use is not timely reported as required in
12 this Section and (ii) for any applicable penalties and interest
13 for failing to pay the tax when due. No Manufacturer's Purchase
14 Credit may be used after September 30, 2005 2003 to satisfy any
15 tax liability imposed under this Act, including any audit
16 liability.
17 (Source: P.A. 93-24, eff. 6-20-03.)
18     Section 10. The Service Use Tax Act is amended by changing
19 Section 3-70 as follows:
 
20     (35 ILCS 110/3-70)
21     Sec. 3-70. Manufacturer's Purchase Credit. For purchases
22 of machinery and equipment made on and after January 1, 1995
23 and through June 30, 2003, a purchaser of manufacturing
24 machinery and equipment that qualifies for the exemption
25 provided by Section 2 of this Act earns a credit in an amount
26 equal to a fixed percentage of the tax which would have been
27 incurred under this Act on those purchases. For purchases of
28 graphic arts machinery and equipment made on or after July 1,
29 1996 and through June 30, 2003, a purchase of graphic arts
30 machinery and equipment that qualifies for the exemption
31 provided by paragraph (5) of Section 3-5 of this Act earns a
32 credit in an amount equal to a fixed percentage of the tax that

 

 

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1 would have been incurred under this Act on those purchases. The
2 credit earned for the purchase of manufacturing machinery and
3 equipment and graphic arts machinery and equipment shall be
4 referred to as the Manufacturer's Purchase Credit. A graphic
5 arts producer is a person engaged in graphic arts production as
6 defined in Section 3-30 of the Service Occupation Tax Act.
7 Beginning July 1, 1996, all references in this Section to
8 manufacturers or manufacturing shall also refer to graphic arts
9 producers or graphic arts production.
10     The amount of credit shall be a percentage of the tax that
11 would have been incurred on the purchase of the manufacturing
12 machinery and equipment or graphic arts machinery and equipment
13 if the exemptions provided by Section 2 or paragraph (5) of
14 Section 3-5 of this Act had not been applicable.
15     All purchases prior to October 1, 2003 of manufacturing
16 machinery and equipment and graphic arts machinery and
17 equipment that qualify for the exemptions provided by paragraph
18 (5) of Section 2 or paragraph (5) of Section 3-5 of this Act
19 qualify for the credit without regard to whether the serviceman
20 elected, or could have elected, under paragraph (7) of Section
21 2 of this Act to exclude the transaction from this Act. If the
22 serviceman's billing to the service customer separately states
23 a selling price for the exempt manufacturing machinery or
24 equipment or the exempt graphic arts machinery and equipment,
25 the credit shall be calculated, as otherwise provided herein,
26 based on that selling price. If the serviceman's billing does
27 not separately state a selling price for the exempt
28 manufacturing machinery and equipment or the exempt graphic
29 arts machinery and equipment, the credit shall be calculated,
30 as otherwise provided herein, based on 50% of the entire
31 billing. If the serviceman contracts to design, develop, and
32 produce special order manufacturing machinery and equipment or
33 special order graphic arts machinery and equipment, and the
34 billing does not separately state a selling price for such

 

 

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1 special order machinery and equipment, the credit shall be
2 calculated, as otherwise provided herein, based on 50% of the
3 entire billing. The provisions of this paragraph are effective
4 for purchases made on or after January 1, 1995.
5     The percentage shall be as follows:
6         (1) 15% for purchases made on or before June 30, 1995.
7         (2) 25% for purchases made after June 30, 1995, and on
8     or before June 30, 1996.
9         (3) 40% for purchases made after June 30, 1996, and on
10     or before June 30, 1997.
11         (4) 50% for purchases made on or after July 1, 1997.
12     A purchaser of production related tangible personal
13 property desiring to use the Manufacturer's Purchase Credit
14 shall certify to the seller prior to October 1, 2005 2003 that
15 the purchaser is satisfying all or part of the liability under
16 the Use Tax Act or the Service Use Tax Act that is due on the
17 purchase of the production related tangible personal property
18 by use of a Manufacturer's Purchase Credit. The Manufacturer's
19 Purchase Credit certification must be dated and shall include
20 the name and address of the purchaser, the purchaser's
21 registration number, if registered, the credit being applied,
22 and a statement that the State Use Tax or Service Use Tax
23 liability is being satisfied with the manufacturer's or graphic
24 arts producer's accumulated purchase credit. Certification may
25 be incorporated into the manufacturer's or graphic arts
26 producer's purchase order. Manufacturer's Purchase Credit
27 certification provided by the manufacturer or graphic arts
28 producer prior to October 1, 2005 2003 may be used to satisfy
29 the retailer's or serviceman's liability under the Retailers'
30 Occupation Tax Act or Service Occupation Tax Act for the credit
31 claimed, not to exceed 6.25% of the receipts subject to tax
32 from a qualifying purchase, but only if the retailer or
33 serviceman reports the Manufacturer's Purchase Credit claimed
34 as required by the Department. A Manufacturer's Purchase Credit

 

 

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1 reported on any original or amended return filed under this Act
2 after October 20, 2005 2003 shall be disallowed. The
3 Manufacturer's Purchase Credit earned by purchase of exempt
4 manufacturing machinery and equipment or graphic arts
5 machinery and equipment is a non-transferable credit. A
6 manufacturer or graphic arts producer that enters into a
7 contract involving the installation of tangible personal
8 property into real estate within a manufacturing or graphic
9 arts production facility, prior to October 1, 2005 2003, may
10 authorize a construction contractor to utilize credit
11 accumulated by the manufacturer or graphic arts producer to
12 purchase the tangible personal property. A manufacturer or
13 graphic arts producer intending to use accumulated credit to
14 purchase such tangible personal property shall execute a
15 written contract authorizing the contractor to utilize a
16 specified dollar amount of credit. The contractor shall
17 furnish, prior to October 1, 2005 2003, the supplier with the
18 manufacturer's or graphic arts producer's name, registration
19 or resale number, and a statement that a specific amount of the
20 Use Tax or Service Use Tax liability, not to exceed 6.25% of
21 the selling price, is being satisfied with the credit. The
22 manufacturer or graphic arts producer shall remain liable to
23 timely report all information required by the annual Report of
24 Manufacturer's Purchase Credit Used for credit utilized by a
25 construction contractor.
26     The Manufacturer's Purchase Credit may be used to satisfy
27 liability under the Use Tax Act or the Service Use Tax Act due
28 on the purchase of production related tangible personal
29 property (including purchases by a manufacturer, by a graphic
30 arts producer, or a lessor who rents or leases the use of the
31 property to a manufacturer or graphic arts producer) that does
32 not otherwise qualify for the manufacturing machinery and
33 equipment exemption or the graphic arts machinery and equipment
34 exemption. "Production related tangible personal property"

 

 

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1 means (i) all tangible personal property used or consumed by
2 the purchaser in a manufacturing facility in which a
3 manufacturing process described in Section 2-45 of the
4 Retailers' Occupation Tax Act takes place, including tangible
5 personal property purchased for incorporation into real estate
6 within a manufacturing facility and including, but not limited
7 to, tangible personal property used or consumed in activities
8 such as pre-production material handling, receiving, quality
9 control, inventory control, storage, staging, and packaging
10 for shipping and transportation purposes; (ii) all tangible
11 personal property used or consumed by the purchaser in a
12 graphic arts facility in which graphic arts production as
13 described in Section 2-30 of the Retailers' Occupation Tax Act
14 takes place, including tangible personal property purchased
15 for incorporation into real estate within a graphic arts
16 facility and including, but not limited to, all tangible
17 personal property used or consumed in activities such as
18 graphic arts preliminary or pre-press production,
19 pre-production material handling, receiving, quality control,
20 inventory control, storage, staging, sorting, labeling,
21 mailing, tying, wrapping, and packaging; and (iii) all tangible
22 personal property used or consumed by the purchaser for
23 research and development. "Production related tangible
24 personal property" does not include (i) tangible personal
25 property used, within or without a manufacturing or graphic
26 arts facility, in sales, purchasing, accounting, fiscal
27 management, marketing, personnel recruitment or selection, or
28 landscaping or (ii) tangible personal property required to be
29 titled or registered with a department, agency, or unit of
30 federal, state, or local government. The Manufacturer's
31 Purchase Credit may be used, prior to October 1, 2005 2003, to
32 satisfy the tax arising either from the purchase of machinery
33 and equipment on or after January 1, 1995 for which the
34 manufacturing machinery and equipment exemption provided by

 

 

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1 Section 2 of this Act was erroneously claimed, or the purchase
2 of machinery and equipment on or after July 1, 1996 for which
3 the exemption provided by paragraph (5) of Section 3-5 of this
4 Act was erroneously claimed, but not in satisfaction of
5 penalty, if any, and interest for failure to pay the tax when
6 due. A purchaser of production related tangible personal
7 property who is required to pay Illinois Use Tax or Service Use
8 Tax on the purchase directly to the Department may, prior to
9 October 1, 2005 2003, utilize the Manufacturer's Purchase
10 Credit in satisfaction of the tax arising from that purchase,
11 but not in satisfaction of penalty and interest. A purchaser
12 who uses the Manufacturer's Purchase Credit to purchase
13 property which is later determined not to be production related
14 tangible personal property may be liable for tax, penalty, and
15 interest on the purchase of that property as of the date of
16 purchase but shall be entitled to use the disallowed
17 Manufacturer's Purchase Credit, so long as it has not expired
18 and is used prior to October 1, 2005 2003, on qualifying
19 purchases of production related tangible personal property not
20 previously subject to credit usage. The Manufacturer's
21 Purchase Credit earned by a manufacturer or graphic arts
22 producer expires the last day of the second calendar year
23 following the calendar year in which the credit arose. No
24 Manufacturer's Purchase Credit may be used after September 30,
25 2005 2003 regardless of when that credit was earned.
26     A purchaser earning Manufacturer's Purchase Credit shall
27 sign and file an annual Report of Manufacturer's Purchase
28 Credit Earned for each calendar year no later than the last day
29 of the sixth month following the calendar year in which a
30 Manufacturer's Purchase Credit is earned. A Report of
31 Manufacturer's Purchase Credit Earned shall be filed on forms
32 as prescribed or approved by the Department and shall state,
33 for each month of the calendar year: (i) the total purchase
34 price of all purchases of exempt manufacturing or graphic arts

 

 

09300HB4234ham001 - 14 - LRB093 16236 BDD 47515 a

1 machinery on which the credit was earned; (ii) the total State
2 Use Tax or Service Use Tax which would have been due on those
3 items; (iii) the percentage used to calculate the amount of
4 credit earned; (iv) the amount of credit earned; and (v) such
5 other information as the Department may reasonably require. A
6 purchaser earning Manufacturer's Purchase Credit shall
7 maintain records which identify, as to each purchase of
8 manufacturing or graphic arts machinery and equipment on which
9 the purchaser earned Manufacturer's Purchase Credit, the
10 vendor (including, if applicable, either the vendor's
11 registration number or Federal Employer Identification
12 Number), the purchase price, and the amount of Manufacturer's
13 Purchase Credit earned on each purchase.
14     A purchaser using Manufacturer's Purchase Credit shall
15 sign and file an annual Report of Manufacturer's Purchase
16 Credit Used for each calendar year no later than the last day
17 of the sixth month following the calendar year in which a
18 Manufacturer's Purchase Credit is used. A Report of
19 Manufacturer's Purchase Credit Used shall be filed on forms as
20 prescribed or approved by the Department and shall state, for
21 each month of the calendar year: (i) the total purchase price
22 of production related tangible personal property purchased
23 from Illinois suppliers; (ii) the total purchase price of
24 production related tangible personal property purchased from
25 out-of-state suppliers; (iii) the total amount of credit used
26 during such month; and (iv) such other information as the
27 Department may reasonably require. A purchaser using
28 Manufacturer's Purchase Credit shall maintain records that
29 identify, as to each purchase of production related tangible
30 personal property on which the purchaser used Manufacturer's
31 Purchase Credit, the vendor (including, if applicable, either
32 the vendor's registration number or Federal Employer
33 Identification Number), the purchase price, and the amount of
34 Manufacturer's Purchase Credit used on each purchase.

 

 

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1     No annual report shall be filed before May 1, 1996 or after
2 June 30, 2004. A purchaser that fails to file an annual Report
3 of Manufacturer's Purchase Credit Earned or an annual Report of
4 Manufacturer's Purchase Credit Used by the last day of the
5 sixth month following the end of the calendar year shall
6 forfeit all Manufacturer's Purchase Credit for that calendar
7 year unless it establishes that its failure to file was due to
8 reasonable cause. Manufacturer's Purchase Credit reports may
9 be amended to report and claim credit on qualifying purchases
10 not previously reported at any time before the credit would
11 have expired, unless both the Department and the purchaser have
12 agreed to an extension of the statute of limitations for the
13 issuance of a notice of tax liability as provided in Section 4
14 of the Retailers' Occupation Tax Act. If the time for
15 assessment or refund has been extended, then amended reports
16 for a calendar year may be filed at any time prior to the date
17 to which the statute of limitations for the calendar year or
18 portion thereof has been extended. No Manufacturer's Purchase
19 Credit report filed with the Department for periods prior to
20 January 1, 1995 shall be approved. Manufacturer's Purchase
21 Credit claimed on an amended report may be used, prior to
22 October 1, 2005 2003, to satisfy tax liability under the Use
23 Tax Act or the Service Use Tax Act (i) on qualifying purchases
24 of production related tangible personal property made after the
25 date the amended report is filed or (ii) assessed by the
26 Department on qualifying purchases of production related
27 tangible personal property made in the case of manufacturers on
28 or after January 1, 1995, or in the case of graphic arts
29 producers on or after July 1, 1996.
30     If the purchaser is not the manufacturer or a graphic arts
31 producer, but rents or leases the use of the property to a
32 manufacturer or a graphic arts producer, the purchaser may
33 earn, report, and use Manufacturer's Purchase Credit in the
34 same manner as a manufacturer or graphic arts producer.

 

 

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1     A purchaser shall not be entitled to any Manufacturer's
2 Purchase Credit for a purchase that is required to be reported
3 and is not timely reported as provided in this Section. A
4 purchaser remains liable for (i) any tax that was satisfied by
5 use of a Manufacturer's Purchase Credit, as of the date of
6 purchase, if that use is not timely reported as required in
7 this Section and (ii) for any applicable penalties and interest
8 for failing to pay the tax when due. No Manufacturer's Purchase
9 Credit may be used after September 30, 2005 2003 to satisfy any
10 tax liability imposed under this Act, including any audit
11 liability.
12 (Source: P.A. 93-24, eff. 6-20-03.)
13     Section 15. The Service Occupation Tax Act is amended by
14 changing Section 9 as follows:
 
15     (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
16     Sec. 9. Each serviceman required or authorized to collect
17 the tax herein imposed shall pay to the Department the amount
18 of such tax at the time when he is required to file his return
19 for the period during which such tax was collectible, less a
20 discount of 2.1% prior to January 1, 1990, and 1.75% on and
21 after January 1, 1990, or $5 per calendar year, whichever is
22 greater, which is allowed to reimburse the serviceman for
23 expenses incurred in collecting the tax, keeping records,
24 preparing and filing returns, remitting the tax and supplying
25 data to the Department on request.
26     Where such tangible personal property is sold under a
27 conditional sales contract, or under any other form of sale
28 wherein the payment of the principal sum, or a part thereof, is
29 extended beyond the close of the period for which the return is
30 filed, the serviceman, in collecting the tax may collect, for
31 each tax return period, only the tax applicable to the part of
32 the selling price actually received during such tax return

 

 

09300HB4234ham001 - 17 - LRB093 16236 BDD 47515 a

1 period.
2     Except as provided hereinafter in this Section, on or
3 before the twentieth day of each calendar month, such
4 serviceman shall file a return for the preceding calendar month
5 in accordance with reasonable rules and regulations to be
6 promulgated by the Department of Revenue. Such return shall be
7 filed on a form prescribed by the Department and shall contain
8 such information as the Department may reasonably require.
9     The Department may require returns to be filed on a
10 quarterly basis. If so required, a return for each calendar
11 quarter shall be filed on or before the twentieth day of the
12 calendar month following the end of such calendar quarter. The
13 taxpayer shall also file a return with the Department for each
14 of the first two months of each calendar quarter, on or before
15 the twentieth day of the following calendar month, stating:
16         1. The name of the seller;
17         2. The address of the principal place of business from
18     which he engages in business as a serviceman in this State;
19         3. The total amount of taxable receipts received by him
20     during the preceding calendar month, including receipts
21     from charge and time sales, but less all deductions allowed
22     by law;
23         4. The amount of credit provided in Section 2d of this
24     Act;
25         5. The amount of tax due;
26         5-5. The signature of the taxpayer; and
27         6. Such other reasonable information as the Department
28     may require.
29     If a taxpayer fails to sign a return within 30 days after
30 the proper notice and demand for signature by the Department,
31 the return shall be considered valid and any amount shown to be
32 due on the return shall be deemed assessed.
33     Prior to October 1, 2005 2003, a serviceman may accept a
34 Manufacturer's Purchase Credit certification from a purchaser

 

 

09300HB4234ham001 - 18 - LRB093 16236 BDD 47515 a

1 in satisfaction of Service Use Tax as provided in Section 3-70
2 of the Service Use Tax Act if the purchaser provides the
3 appropriate documentation as required by Section 3-70 of the
4 Service Use Tax Act. A Manufacturer's Purchase Credit
5 certification, accepted prior to October 1, 2005 2003 by a
6 serviceman as provided in Section 3-70 of the Service Use Tax
7 Act, may be used by that serviceman to satisfy Service
8 Occupation Tax liability in the amount claimed in the
9 certification, not to exceed 6.25% of the receipts subject to
10 tax from a qualifying purchase. A Manufacturer's Purchase
11 Credit reported on any original or amended return filed under
12 this Act after October 20, 2005 2003 shall be disallowed. No
13 Manufacturer's Purchase Credit may be used after September 30,
14 2005 2003 to satisfy any tax liability imposed under this Act,
15 including any audit liability.
16     If the serviceman's average monthly tax liability to the
17 Department does not exceed $200, the Department may authorize
18 his returns to be filed on a quarter annual basis, with the
19 return for January, February and March of a given year being
20 due by April 20 of such year; with the return for April, May
21 and June of a given year being due by July 20 of such year; with
22 the return for July, August and September of a given year being
23 due by October 20 of such year, and with the return for
24 October, November and December of a given year being due by
25 January 20 of the following year.
26     If the serviceman's average monthly tax liability to the
27 Department does not exceed $50, the Department may authorize
28 his returns to be filed on an annual basis, with the return for
29 a given year being due by January 20 of the following year.
30     Such quarter annual and annual returns, as to form and
31 substance, shall be subject to the same requirements as monthly
32 returns.
33     Notwithstanding any other provision in this Act concerning
34 the time within which a serviceman may file his return, in the

 

 

09300HB4234ham001 - 19 - LRB093 16236 BDD 47515 a

1 case of any serviceman who ceases to engage in a kind of
2 business which makes him responsible for filing returns under
3 this Act, such serviceman shall file a final return under this
4 Act with the Department not more than 1 month after
5 discontinuing such business.
6     Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who has
10 an average monthly tax liability of $100,000 or more shall make
11 all payments required by rules of the Department by electronic
12 funds transfer. Beginning October 1, 1995, a taxpayer who has
13 an average monthly tax liability of $50,000 or more shall make
14 all payments required by rules of the Department by electronic
15 funds transfer. Beginning October 1, 2000, a taxpayer who has
16 an annual tax liability of $200,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. The term "annual tax liability" shall be the
19 sum of the taxpayer's liabilities under this Act, and under all
20 other State and local occupation and use tax laws administered
21 by the Department, for the immediately preceding calendar year.
22 The term "average monthly tax liability" means the sum of the
23 taxpayer's liabilities under this Act, and under all other
24 State and local occupation and use tax laws administered by the
25 Department, for the immediately preceding calendar year
26 divided by 12. Beginning on October 1, 2002, a taxpayer who has
27 a tax liability in the amount set forth in subsection (b) of
28 Section 2505-210 of the Department of Revenue Law shall make
29 all payments required by rules of the Department by electronic
30 funds transfer.
31     Before August 1 of each year beginning in 1993, the
32 Department shall notify all taxpayers required to make payments
33 by electronic funds transfer. All taxpayers required to make
34 payments by electronic funds transfer shall make those payments

 

 

09300HB4234ham001 - 20 - LRB093 16236 BDD 47515 a

1 for a minimum of one year beginning on October 1.
2     Any taxpayer not required to make payments by electronic
3 funds transfer may make payments by electronic funds transfer
4 with the permission of the Department.
5     All taxpayers required to make payment by electronic funds
6 transfer and any taxpayers authorized to voluntarily make
7 payments by electronic funds transfer shall make those payments
8 in the manner authorized by the Department.
9     The Department shall adopt such rules as are necessary to
10 effectuate a program of electronic funds transfer and the
11 requirements of this Section.
12     Where a serviceman collects the tax with respect to the
13 selling price of tangible personal property which he sells and
14 the purchaser thereafter returns such tangible personal
15 property and the serviceman refunds the selling price thereof
16 to the purchaser, such serviceman shall also refund, to the
17 purchaser, the tax so collected from the purchaser. When filing
18 his return for the period in which he refunds such tax to the
19 purchaser, the serviceman may deduct the amount of the tax so
20 refunded by him to the purchaser from any other Service
21 Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
22 Use Tax which such serviceman may be required to pay or remit
23 to the Department, as shown by such return, provided that the
24 amount of the tax to be deducted shall previously have been
25 remitted to the Department by such serviceman. If the
26 serviceman shall not previously have remitted the amount of
27 such tax to the Department, he shall be entitled to no
28 deduction hereunder upon refunding such tax to the purchaser.
29     If experience indicates such action to be practicable, the
30 Department may prescribe and furnish a combination or joint
31 return which will enable servicemen, who are required to file
32 returns hereunder and also under the Retailers' Occupation Tax
33 Act, the Use Tax Act or the Service Use Tax Act, to furnish all
34 the return information required by all said Acts on the one

 

 

09300HB4234ham001 - 21 - LRB093 16236 BDD 47515 a

1 form.
2     Where the serviceman has more than one business registered
3 with the Department under separate registrations hereunder,
4 such serviceman shall file separate returns for each registered
5 business.
6     Beginning January 1, 1990, each month the Department shall
7 pay into the Local Government Tax Fund the revenue realized for
8 the preceding month from the 1% tax on sales of food for human
9 consumption which is to be consumed off the premises where it
10 is sold (other than alcoholic beverages, soft drinks and food
11 which has been prepared for immediate consumption) and
12 prescription and nonprescription medicines, drugs, medical
13 appliances and insulin, urine testing materials, syringes and
14 needles used by diabetics.
15     Beginning January 1, 1990, each month the Department shall
16 pay into the County and Mass Transit District Fund 4% of the
17 revenue realized for the preceding month from the 6.25% general
18 rate.
19     Beginning August 1, 2000, each month the Department shall
20 pay into the County and Mass Transit District Fund 20% of the
21 net revenue realized for the preceding month from the 1.25%
22 rate on the selling price of motor fuel and gasohol.
23     Beginning January 1, 1990, each month the Department shall
24 pay into the Local Government Tax Fund 16% of the revenue
25 realized for the preceding month from the 6.25% general rate on
26 transfers of tangible personal property.
27     Beginning August 1, 2000, each month the Department shall
28 pay into the Local Government Tax Fund 80% of the net revenue
29 realized for the preceding month from the 1.25% rate on the
30 selling price of motor fuel and gasohol.
31     Of the remainder of the moneys received by the Department
32 pursuant to this Act, (a) 1.75% thereof shall be paid into the
33 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
34 and after July 1, 1989, 3.8% thereof shall be paid into the

 

 

09300HB4234ham001 - 22 - LRB093 16236 BDD 47515 a

1 Build Illinois Fund; provided, however, that if in any fiscal
2 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3 may be, of the moneys received by the Department and required
4 to be paid into the Build Illinois Fund pursuant to Section 3
5 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
6 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
7 Service Occupation Tax Act, such Acts being hereinafter called
8 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
9 may be, of moneys being hereinafter called the "Tax Act
10 Amount", and (2) the amount transferred to the Build Illinois
11 Fund from the State and Local Sales Tax Reform Fund shall be
12 less than the Annual Specified Amount (as defined in Section 3
13 of the Retailers' Occupation Tax Act), an amount equal to the
14 difference shall be immediately paid into the Build Illinois
15 Fund from other moneys received by the Department pursuant to
16 the Tax Acts; and further provided, that if on the last
17 business day of any month the sum of (1) the Tax Act Amount
18 required to be deposited into the Build Illinois Account in the
19 Build Illinois Fund during such month and (2) the amount
20 transferred during such month to the Build Illinois Fund from
21 the State and Local Sales Tax Reform Fund shall have been less
22 than 1/12 of the Annual Specified Amount, an amount equal to
23 the difference shall be immediately paid into the Build
24 Illinois Fund from other moneys received by the Department
25 pursuant to the Tax Acts; and, further provided, that in no
26 event shall the payments required under the preceding proviso
27 result in aggregate payments into the Build Illinois Fund
28 pursuant to this clause (b) for any fiscal year in excess of
29 the greater of (i) the Tax Act Amount or (ii) the Annual
30 Specified Amount for such fiscal year; and, further provided,
31 that the amounts payable into the Build Illinois Fund under
32 this clause (b) shall be payable only until such time as the
33 aggregate amount on deposit under each trust indenture securing
34 Bonds issued and outstanding pursuant to the Build Illinois

 

 

09300HB4234ham001 - 23 - LRB093 16236 BDD 47515 a

1 Bond Act is sufficient, taking into account any future
2 investment income, to fully provide, in accordance with such
3 indenture, for the defeasance of or the payment of the
4 principal of, premium, if any, and interest on the Bonds
5 secured by such indenture and on any Bonds expected to be
6 issued thereafter and all fees and costs payable with respect
7 thereto, all as certified by the Director of the Bureau of the
8 Budget (now Governor's Office of Management and Budget). If on
9 the last business day of any month in which Bonds are
10 outstanding pursuant to the Build Illinois Bond Act, the
11 aggregate of the moneys deposited in the Build Illinois Bond
12 Account in the Build Illinois Fund in such month shall be less
13 than the amount required to be transferred in such month from
14 the Build Illinois Bond Account to the Build Illinois Bond
15 Retirement and Interest Fund pursuant to Section 13 of the
16 Build Illinois Bond Act, an amount equal to such deficiency
17 shall be immediately paid from other moneys received by the
18 Department pursuant to the Tax Acts to the Build Illinois Fund;
19 provided, however, that any amounts paid to the Build Illinois
20 Fund in any fiscal year pursuant to this sentence shall be
21 deemed to constitute payments pursuant to clause (b) of the
22 preceding sentence and shall reduce the amount otherwise
23 payable for such fiscal year pursuant to clause (b) of the
24 preceding sentence. The moneys received by the Department
25 pursuant to this Act and required to be deposited into the
26 Build Illinois Fund are subject to the pledge, claim and charge
27 set forth in Section 12 of the Build Illinois Bond Act.
28     Subject to payment of amounts into the Build Illinois Fund
29 as provided in the preceding paragraph or in any amendment
30 thereto hereafter enacted, the following specified monthly
31 installment of the amount requested in the certificate of the
32 Chairman of the Metropolitan Pier and Exposition Authority
33 provided under Section 8.25f of the State Finance Act, but not
34 in excess of the sums designated as "Total Deposit", shall be

 

 

09300HB4234ham001 - 24 - LRB093 16236 BDD 47515 a

1 deposited in the aggregate from collections under Section 9 of
2 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
3 9 of the Service Occupation Tax Act, and Section 3 of the
4 Retailers' Occupation Tax Act into the McCormick Place
5 Expansion Project Fund in the specified fiscal years.
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000
262012153,000,000
272013161,000,000
282014170,000,000
292015179,000,000
302016189,000,000
312017199,000,000
322018210,000,000
332019221,000,000

 

 

09300HB4234ham001 - 25 - LRB093 16236 BDD 47515 a

12020233,000,000
22021246,000,000
32022260,000,000
42023 and275,000,000
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2042.
12     Beginning July 20, 1993 and in each month of each fiscal
13 year thereafter, one-eighth of the amount requested in the
14 certificate of the Chairman of the Metropolitan Pier and
15 Exposition Authority for that fiscal year, less the amount
16 deposited into the McCormick Place Expansion Project Fund by
17 the State Treasurer in the respective month under subsection
18 (g) of Section 13 of the Metropolitan Pier and Exposition
19 Authority Act, plus cumulative deficiencies in the deposits
20 required under this Section for previous months and years,
21 shall be deposited into the McCormick Place Expansion Project
22 Fund, until the full amount requested for the fiscal year, but
23 not in excess of the amount specified above as "Total Deposit",
24 has been deposited.
25     Subject to payment of amounts into the Build Illinois Fund
26 and the McCormick Place Expansion Project Fund pursuant to the
27 preceding paragraphs or in any amendments thereto hereafter
28 enacted, beginning July 1, 1993, the Department shall each
29 month pay into the Illinois Tax Increment Fund 0.27% of 80% of
30 the net revenue realized for the preceding month from the 6.25%
31 general rate on the selling price of tangible personal
32 property.
33     Subject to payment of amounts into the Build Illinois Fund
34 and the McCormick Place Expansion Project Fund pursuant to the

 

 

09300HB4234ham001 - 26 - LRB093 16236 BDD 47515 a

1 preceding paragraphs or in any amendments thereto hereafter
2 enacted, beginning with the receipt of the first report of
3 taxes paid by an eligible business and continuing for a 25-year
4 period, the Department shall each month pay into the Energy
5 Infrastructure Fund 80% of the net revenue realized from the
6 6.25% general rate on the selling price of Illinois-mined coal
7 that was sold to an eligible business. For purposes of this
8 paragraph, the term "eligible business" means a new electric
9 generating facility certified pursuant to Section 605-332 of
10 the Department of Commerce and Economic Opportunity Community
11 Affairs Law of the Civil Administrative Code of Illinois.
12     Remaining moneys received by the Department pursuant to
13 this Act shall be paid into the General Revenue Fund of the
14 State Treasury.
15     The Department may, upon separate written notice to a
16 taxpayer, require the taxpayer to prepare and file with the
17 Department on a form prescribed by the Department within not
18 less than 60 days after receipt of the notice an annual
19 information return for the tax year specified in the notice.
20 Such annual return to the Department shall include a statement
21 of gross receipts as shown by the taxpayer's last Federal
22 income tax return. If the total receipts of the business as
23 reported in the Federal income tax return do not agree with the
24 gross receipts reported to the Department of Revenue for the
25 same period, the taxpayer shall attach to his annual return a
26 schedule showing a reconciliation of the 2 amounts and the
27 reasons for the difference. The taxpayer's annual return to the
28 Department shall also disclose the cost of goods sold by the
29 taxpayer during the year covered by such return, opening and
30 closing inventories of such goods for such year, cost of goods
31 used from stock or taken from stock and given away by the
32 taxpayer during such year, pay roll information of the
33 taxpayer's business during such year and any additional
34 reasonable information which the Department deems would be

 

 

09300HB4234ham001 - 27 - LRB093 16236 BDD 47515 a

1 helpful in determining the accuracy of the monthly, quarterly
2 or annual returns filed by such taxpayer as hereinbefore
3 provided for in this Section.
4     If the annual information return required by this Section
5 is not filed when and as required, the taxpayer shall be liable
6 as follows:
7         (i) Until January 1, 1994, the taxpayer shall be liable
8     for a penalty equal to 1/6 of 1% of the tax due from such
9     taxpayer under this Act during the period to be covered by
10     the annual return for each month or fraction of a month
11     until such return is filed as required, the penalty to be
12     assessed and collected in the same manner as any other
13     penalty provided for in this Act.
14         (ii) On and after January 1, 1994, the taxpayer shall
15     be liable for a penalty as described in Section 3-4 of the
16     Uniform Penalty and Interest Act.
17     The chief executive officer, proprietor, owner or highest
18 ranking manager shall sign the annual return to certify the
19 accuracy of the information contained therein. Any person who
20 willfully signs the annual return containing false or
21 inaccurate information shall be guilty of perjury and punished
22 accordingly. The annual return form prescribed by the
23 Department shall include a warning that the person signing the
24 return may be liable for perjury.
25     The foregoing portion of this Section concerning the filing
26 of an annual information return shall not apply to a serviceman
27 who is not required to file an income tax return with the
28 United States Government.
29     As soon as possible after the first day of each month, upon
30 certification of the Department of Revenue, the Comptroller
31 shall order transferred and the Treasurer shall transfer from
32 the General Revenue Fund to the Motor Fuel Tax Fund an amount
33 equal to 1.7% of 80% of the net revenue realized under this Act
34 for the second preceding month. Beginning April 1, 2000, this

 

 

09300HB4234ham001 - 28 - LRB093 16236 BDD 47515 a

1 transfer is no longer required and shall not be made.
2     Net revenue realized for a month shall be the revenue
3 collected by the State pursuant to this Act, less the amount
4 paid out during that month as refunds to taxpayers for
5 overpayment of liability.
6     For greater simplicity of administration, it shall be
7 permissible for manufacturers, importers and wholesalers whose
8 products are sold by numerous servicemen in Illinois, and who
9 wish to do so, to assume the responsibility for accounting and
10 paying to the Department all tax accruing under this Act with
11 respect to such sales, if the servicemen who are affected do
12 not make written objection to the Department to this
13 arrangement.
14 (Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492,
15 eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 93-24,
16 eff. 6-20-03; revised 10-15-03.)
17     Section 20. The Retailers' Occupation Tax Act is amended by
18 changing Section 3 as follows:
 
19     (35 ILCS 120/3)  (from Ch. 120, par. 442)
20     Sec. 3. Except as provided in this Section, on or before
21 the twentieth day of each calendar month, every person engaged
22 in the business of selling tangible personal property at retail
23 in this State during the preceding calendar month shall file a
24 return with the Department, stating:
25         1. The name of the seller;
26         2. His residence address and the address of his
27     principal place of business and the address of the
28     principal place of business (if that is a different
29     address) from which he engages in the business of selling
30     tangible personal property at retail in this State;
31         3. Total amount of receipts received by him during the
32     preceding calendar month or quarter, as the case may be,

 

 

09300HB4234ham001 - 29 - LRB093 16236 BDD 47515 a

1     from sales of tangible personal property, and from services
2     furnished, by him during such preceding calendar month or
3     quarter;
4         4. Total amount received by him during the preceding
5     calendar month or quarter on charge and time sales of
6     tangible personal property, and from services furnished,
7     by him prior to the month or quarter for which the return
8     is filed;
9         5. Deductions allowed by law;
10         6. Gross receipts which were received by him during the
11     preceding calendar month or quarter and upon the basis of
12     which the tax is imposed;
13         7. The amount of credit provided in Section 2d of this
14     Act;
15         8. The amount of tax due;
16         9. The signature of the taxpayer; and
17         10. Such other reasonable information as the
18     Department may require.
19     If a taxpayer fails to sign a return within 30 days after
20 the proper notice and demand for signature by the Department,
21 the return shall be considered valid and any amount shown to be
22 due on the return shall be deemed assessed.
23     Each return shall be accompanied by the statement of
24 prepaid tax issued pursuant to Section 2e for which credit is
25 claimed.
26     Prior to October 1, 2005 2003, a retailer may accept a
27 Manufacturer's Purchase Credit certification from a purchaser
28 in satisfaction of Use Tax as provided in Section 3-85 of the
29 Use Tax Act if the purchaser provides the appropriate
30 documentation as required by Section 3-85 of the Use Tax Act. A
31 Manufacturer's Purchase Credit certification, accepted by a
32 retailer prior to October 1, 2005 2003 as provided in Section
33 3-85 of the Use Tax Act, may be used by that retailer to
34 satisfy Retailers' Occupation Tax liability in the amount

 

 

09300HB4234ham001 - 30 - LRB093 16236 BDD 47515 a

1 claimed in the certification, not to exceed 6.25% of the
2 receipts subject to tax from a qualifying purchase. A
3 Manufacturer's Purchase Credit reported on any original or
4 amended return filed under this Act after October 20, 2005 2003
5 shall be disallowed. No Manufacturer's Purchase Credit may be
6 used after September 30, 2005 2003 to satisfy any tax liability
7 imposed under this Act, including any audit liability.
8     The Department may require returns to be filed on a
9 quarterly basis. If so required, a return for each calendar
10 quarter shall be filed on or before the twentieth day of the
11 calendar month following the end of such calendar quarter. The
12 taxpayer shall also file a return with the Department for each
13 of the first two months of each calendar quarter, on or before
14 the twentieth day of the following calendar month, stating:
15         1. The name of the seller;
16         2. The address of the principal place of business from
17     which he engages in the business of selling tangible
18     personal property at retail in this State;
19         3. The total amount of taxable receipts received by him
20     during the preceding calendar month from sales of tangible
21     personal property by him during such preceding calendar
22     month, including receipts from charge and time sales, but
23     less all deductions allowed by law;
24         4. The amount of credit provided in Section 2d of this
25     Act;
26         5. The amount of tax due; and
27         6. Such other reasonable information as the Department
28     may require.
29     Beginning on October 1, 2003, any person who is not a
30 licensed distributor, importing distributor, or manufacturer,
31 as defined in the Liquor Control Act of 1934, but is engaged in
32 the business of selling, at retail, alcoholic liquor shall file
33 a statement with the Department of Revenue, in a format and at
34 a time prescribed by the Department, showing the total amount

 

 

09300HB4234ham001 - 31 - LRB093 16236 BDD 47515 a

1 paid for alcoholic liquor purchased during the preceding month
2 and such other information as is reasonably required by the
3 Department. The Department may adopt rules to require that this
4 statement be filed in an electronic or telephonic format. Such
5 rules may provide for exceptions from the filing requirements
6 of this paragraph. For the purposes of this paragraph, the term
7 "alcoholic liquor" shall have the meaning prescribed in the
8 Liquor Control Act of 1934.
9     Beginning on October 1, 2003, every distributor, importing
10 distributor, and manufacturer of alcoholic liquor as defined in
11 the Liquor Control Act of 1934, shall file a statement with the
12 Department of Revenue, no later than the 10th day of the month
13 for the preceding month during which transactions occurred, by
14 electronic means, showing the total amount of gross receipts
15 from the sale of alcoholic liquor sold or distributed during
16 the preceding month to purchasers; identifying the purchaser to
17 whom it was sold or distributed; the purchaser's tax
18 registration number; and such other information reasonably
19 required by the Department. A copy of the monthly statement
20 shall be sent to the retailer no later than the 10th day of the
21 month for the preceding month during which transactions
22 occurred.
23     If a total amount of less than $1 is payable, refundable or
24 creditable, such amount shall be disregarded if it is less than
25 50 cents and shall be increased to $1 if it is 50 cents or more.
26     Beginning October 1, 1993, a taxpayer who has an average
27 monthly tax liability of $150,000 or more shall make all
28 payments required by rules of the Department by electronic
29 funds transfer. Beginning October 1, 1994, a taxpayer who has
30 an average monthly tax liability of $100,000 or more shall make
31 all payments required by rules of the Department by electronic
32 funds transfer. Beginning October 1, 1995, a taxpayer who has
33 an average monthly tax liability of $50,000 or more shall make
34 all payments required by rules of the Department by electronic

 

 

09300HB4234ham001 - 32 - LRB093 16236 BDD 47515 a

1 funds transfer. Beginning October 1, 2000, a taxpayer who has
2 an annual tax liability of $200,000 or more shall make all
3 payments required by rules of the Department by electronic
4 funds transfer. The term "annual tax liability" shall be the
5 sum of the taxpayer's liabilities under this Act, and under all
6 other State and local occupation and use tax laws administered
7 by the Department, for the immediately preceding calendar year.
8 The term "average monthly tax liability" shall be the sum of
9 the taxpayer's liabilities under this Act, and under all other
10 State and local occupation and use tax laws administered by the
11 Department, for the immediately preceding calendar year
12 divided by 12. Beginning on October 1, 2002, a taxpayer who has
13 a tax liability in the amount set forth in subsection (b) of
14 Section 2505-210 of the Department of Revenue Law shall make
15 all payments required by rules of the Department by electronic
16 funds transfer.
17     Before August 1 of each year beginning in 1993, the
18 Department shall notify all taxpayers required to make payments
19 by electronic funds transfer. All taxpayers required to make
20 payments by electronic funds transfer shall make those payments
21 for a minimum of one year beginning on October 1.
22     Any taxpayer not required to make payments by electronic
23 funds transfer may make payments by electronic funds transfer
24 with the permission of the Department.
25     All taxpayers required to make payment by electronic funds
26 transfer and any taxpayers authorized to voluntarily make
27 payments by electronic funds transfer shall make those payments
28 in the manner authorized by the Department.
29     The Department shall adopt such rules as are necessary to
30 effectuate a program of electronic funds transfer and the
31 requirements of this Section.
32     Any amount which is required to be shown or reported on any
33 return or other document under this Act shall, if such amount
34 is not a whole-dollar amount, be increased to the nearest

 

 

09300HB4234ham001 - 33 - LRB093 16236 BDD 47515 a

1 whole-dollar amount in any case where the fractional part of a
2 dollar is 50 cents or more, and decreased to the nearest
3 whole-dollar amount where the fractional part of a dollar is
4 less than 50 cents.
5     If the retailer is otherwise required to file a monthly
6 return and if the retailer's average monthly tax liability to
7 the Department does not exceed $200, the Department may
8 authorize his returns to be filed on a quarter annual basis,
9 with the return for January, February and March of a given year
10 being due by April 20 of such year; with the return for April,
11 May and June of a given year being due by July 20 of such year;
12 with the return for July, August and September of a given year
13 being due by October 20 of such year, and with the return for
14 October, November and December of a given year being due by
15 January 20 of the following year.
16     If the retailer is otherwise required to file a monthly or
17 quarterly return and if the retailer's average monthly tax
18 liability with the Department does not exceed $50, the
19 Department may authorize his returns to be filed on an annual
20 basis, with the return for a given year being due by January 20
21 of the following year.
22     Such quarter annual and annual returns, as to form and
23 substance, shall be subject to the same requirements as monthly
24 returns.
25     Notwithstanding any other provision in this Act concerning
26 the time within which a retailer may file his return, in the
27 case of any retailer who ceases to engage in a kind of business
28 which makes him responsible for filing returns under this Act,
29 such retailer shall file a final return under this Act with the
30 Department not more than one month after discontinuing such
31 business.
32     Where the same person has more than one business registered
33 with the Department under separate registrations under this
34 Act, such person may not file each return that is due as a

 

 

09300HB4234ham001 - 34 - LRB093 16236 BDD 47515 a

1 single return covering all such registered businesses, but
2 shall file separate returns for each such registered business.
3     In addition, with respect to motor vehicles, watercraft,
4 aircraft, and trailers that are required to be registered with
5 an agency of this State, every retailer selling this kind of
6 tangible personal property shall file, with the Department,
7 upon a form to be prescribed and supplied by the Department, a
8 separate return for each such item of tangible personal
9 property which the retailer sells, except that if, in the same
10 transaction, (i) a retailer of aircraft, watercraft, motor
11 vehicles or trailers transfers more than one aircraft,
12 watercraft, motor vehicle or trailer to another aircraft,
13 watercraft, motor vehicle retailer or trailer retailer for the
14 purpose of resale or (ii) a retailer of aircraft, watercraft,
15 motor vehicles, or trailers transfers more than one aircraft,
16 watercraft, motor vehicle, or trailer to a purchaser for use as
17 a qualifying rolling stock as provided in Section 2-5 of this
18 Act, then that seller may report the transfer of all aircraft,
19 watercraft, motor vehicles or trailers involved in that
20 transaction to the Department on the same uniform
21 invoice-transaction reporting return form. For purposes of
22 this Section, "watercraft" means a Class 2, Class 3, or Class 4
23 watercraft as defined in Section 3-2 of the Boat Registration
24 and Safety Act, a personal watercraft, or any boat equipped
25 with an inboard motor.
26     Any retailer who sells only motor vehicles, watercraft,
27 aircraft, or trailers that are required to be registered with
28 an agency of this State, so that all retailers' occupation tax
29 liability is required to be reported, and is reported, on such
30 transaction reporting returns and who is not otherwise required
31 to file monthly or quarterly returns, need not file monthly or
32 quarterly returns. However, those retailers shall be required
33 to file returns on an annual basis.
34     The transaction reporting return, in the case of motor

 

 

09300HB4234ham001 - 35 - LRB093 16236 BDD 47515 a

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

 

 

09300HB4234ham001 - 36 - LRB093 16236 BDD 47515 a

1 sufficient identification of the property sold, and such other
2 information as the Department may reasonably require.
3     Such transaction reporting return shall be filed not later
4 than 20 days after the day of delivery of the item that is
5 being sold, but may be filed by the retailer at any time sooner
6 than that if he chooses to do so. The transaction reporting
7 return and tax remittance or proof of exemption from the
8 Illinois use tax may be transmitted to the Department by way of
9 the State agency with which, or State officer with whom the
10 tangible personal property must be titled or registered (if
11 titling or registration is required) if the Department and such
12 agency or State officer determine that this procedure will
13 expedite the processing of applications for title or
14 registration.
15     With each such transaction reporting return, the retailer
16 shall remit the proper amount of tax due (or shall submit
17 satisfactory evidence that the sale is not taxable if that is
18 the case), to the Department or its agents, whereupon the
19 Department shall issue, in the purchaser's name, a use tax
20 receipt (or a certificate of exemption if the Department is
21 satisfied that the particular sale is tax exempt) which such
22 purchaser may submit to the agency with which, or State officer
23 with whom, he must title or register the tangible personal
24 property that is involved (if titling or registration is
25 required) in support of such purchaser's application for an
26 Illinois certificate or other evidence of title or registration
27 to such tangible personal property.
28     No retailer's failure or refusal to remit tax under this
29 Act precludes a user, who has paid the proper tax to the
30 retailer, from obtaining his certificate of title or other
31 evidence of title or registration (if titling or registration
32 is required) upon satisfying the Department that such user has
33 paid the proper tax (if tax is due) to the retailer. The
34 Department shall adopt appropriate rules to carry out the

 

 

09300HB4234ham001 - 37 - LRB093 16236 BDD 47515 a

1 mandate of this paragraph.
2     If the user who would otherwise pay tax to the retailer
3 wants the transaction reporting return filed and the payment of
4 the tax or proof of exemption made to the Department before the
5 retailer is willing to take these actions and such user has not
6 paid the tax to the retailer, such user may certify to the fact
7 of such delay by the retailer and may (upon the Department
8 being satisfied of the truth of such certification) transmit
9 the information required by the transaction reporting return
10 and the remittance for tax or proof of exemption directly to
11 the Department and obtain his tax receipt or exemption
12 determination, in which event the transaction reporting return
13 and tax remittance (if a tax payment was required) shall be
14 credited by the Department to the proper retailer's account
15 with the Department, but without the 2.1% or 1.75% discount
16 provided for in this Section being allowed. When the user pays
17 the tax directly to the Department, he shall pay the tax in the
18 same amount and in the same form in which it would be remitted
19 if the tax had been remitted to the Department by the retailer.
20     Refunds made by the seller during the preceding return
21 period to purchasers, on account of tangible personal property
22 returned to the seller, shall be allowed as a deduction under
23 subdivision 5 of his monthly or quarterly return, as the case
24 may be, in case the seller had theretofore included the
25 receipts from the sale of such tangible personal property in a
26 return filed by him and had paid the tax imposed by this Act
27 with respect to such receipts.
28     Where the seller is a corporation, the return filed on
29 behalf of such corporation shall be signed by the president,
30 vice-president, secretary or treasurer or by the properly
31 accredited agent of such corporation.
32     Where the seller is a limited liability company, the return
33 filed on behalf of the limited liability company shall be
34 signed by a manager, member, or properly accredited agent of

 

 

09300HB4234ham001 - 38 - LRB093 16236 BDD 47515 a

1 the limited liability company.
2     Except as provided in this Section, the retailer filing the
3 return under this Section shall, at the time of filing such
4 return, pay to the Department the amount of tax imposed by this
5 Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6 on and after January 1, 1990, or $5 per calendar year,
7 whichever is greater, which is allowed to reimburse the
8 retailer for the expenses incurred in keeping records,
9 preparing and filing returns, remitting the tax and supplying
10 data to the Department on request. Any prepayment made pursuant
11 to Section 2d of this Act shall be included in the amount on
12 which such 2.1% or 1.75% discount is computed. In the case of
13 retailers who report and pay the tax on a transaction by
14 transaction basis, as provided in this Section, such discount
15 shall be taken with each such tax remittance instead of when
16 such retailer files his periodic return.
17     Before October 1, 2000, if the taxpayer's average monthly
18 tax liability to the Department under this Act, the Use Tax
19 Act, the Service Occupation Tax Act, and the Service Use Tax
20 Act, excluding any liability for prepaid sales tax to be
21 remitted in accordance with Section 2d of this Act, was $10,000
22 or more during the preceding 4 complete calendar quarters, he
23 shall file a return with the Department each month by the 20th
24 day of the month next following the month during which such tax
25 liability is incurred and shall make payments to the Department
26 on or before the 7th, 15th, 22nd and last day of the month
27 during which such liability is incurred. On and after October
28 1, 2000, if the taxpayer's average monthly tax liability to the
29 Department under this Act, the Use Tax Act, the Service
30 Occupation Tax Act, and the Service Use Tax Act, excluding any
31 liability for prepaid sales tax to be remitted in accordance
32 with Section 2d of this Act, was $20,000 or more during the
33 preceding 4 complete calendar quarters, he shall file a return
34 with the Department each month by the 20th day of the month

 

 

09300HB4234ham001 - 39 - LRB093 16236 BDD 47515 a

1 next following the month during which such tax liability is
2 incurred and shall make payment to the Department on or before
3 the 7th, 15th, 22nd and last day of the month during which such
4 liability is incurred. If the month during which such tax
5 liability is incurred began prior to January 1, 1985, each
6 payment shall be in an amount equal to 1/4 of the taxpayer's
7 actual liability for the month or an amount set by the
8 Department not to exceed 1/4 of the average monthly liability
9 of the taxpayer to the Department for the preceding 4 complete
10 calendar quarters (excluding the month of highest liability and
11 the month of lowest liability in such 4 quarter period). If the
12 month during which such tax liability is incurred begins on or
13 after January 1, 1985 and prior to January 1, 1987, each
14 payment shall be in an amount equal to 22.5% of the taxpayer's
15 actual liability for the month or 27.5% of the taxpayer's
16 liability for the same calendar month of the preceding year. If
17 the month during which such tax liability is incurred begins on
18 or after January 1, 1987 and prior to January 1, 1988, each
19 payment shall be in an amount equal to 22.5% of the taxpayer's
20 actual liability for the month or 26.25% of the taxpayer's
21 liability for the same calendar month of the preceding year. If
22 the month during which such tax liability is incurred begins on
23 or after January 1, 1988, and prior to January 1, 1989, or
24 begins on or after January 1, 1996, each payment shall be in an
25 amount equal to 22.5% of the taxpayer's actual liability for
26 the month or 25% of the taxpayer's liability for the same
27 calendar month of the preceding year. If the month during which
28 such tax liability is incurred begins on or after January 1,
29 1989, and prior to January 1, 1996, each payment shall be in an
30 amount equal to 22.5% of the taxpayer's actual liability for
31 the month or 25% of the taxpayer's liability for the same
32 calendar month of the preceding year or 100% of the taxpayer's
33 actual liability for the quarter monthly reporting period. The
34 amount of such quarter monthly payments shall be credited

 

 

09300HB4234ham001 - 40 - LRB093 16236 BDD 47515 a

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

 

 

09300HB4234ham001 - 41 - LRB093 16236 BDD 47515 a

1 change in such taxpayer's reporting status. The Department
2 shall change such taxpayer's reporting status unless it finds
3 that such change is seasonal in nature and not likely to be
4 long term. If any such quarter monthly payment is not paid at
5 the time or in the amount required by this Section, then the
6 taxpayer shall be liable for penalties and interest on the
7 difference between the minimum amount due as a payment and the
8 amount of such quarter monthly payment actually and timely
9 paid, except insofar as the taxpayer has previously made
10 payments for that month to the Department in excess of the
11 minimum payments previously due as provided in this Section.
12 The Department shall make reasonable rules and regulations to
13 govern the quarter monthly payment amount and quarter monthly
14 payment dates for taxpayers who file on other than a calendar
15 monthly basis.
16     The provisions of this paragraph apply before October 1,
17 2001. Without regard to whether a taxpayer is required to make
18 quarter monthly payments as specified above, any taxpayer who
19 is required by Section 2d of this Act to collect and remit
20 prepaid taxes and has collected prepaid taxes which average in
21 excess of $25,000 per month during the preceding 2 complete
22 calendar quarters, shall file a return with the Department as
23 required by Section 2f and shall make payments to the
24 Department on or before the 7th, 15th, 22nd and last day of the
25 month during which such liability is incurred. If the month
26 during which such tax liability is incurred began prior to the
27 effective date of this amendatory Act of 1985, each payment
28 shall be in an amount not less than 22.5% of the taxpayer's
29 actual liability under Section 2d. If the month during which
30 such tax liability is incurred begins on or after January 1,
31 1986, each payment shall be in an amount equal to 22.5% of the
32 taxpayer's actual liability for the month or 27.5% of the
33 taxpayer's liability for the same calendar month of the
34 preceding calendar year. If the month during which such tax

 

 

09300HB4234ham001 - 42 - LRB093 16236 BDD 47515 a

1 liability is incurred begins on or after January 1, 1987, each
2 payment shall be in an amount equal to 22.5% of the taxpayer's
3 actual liability for the month or 26.25% of the taxpayer's
4 liability for the same calendar month of the preceding year.
5 The amount of such quarter monthly payments shall be credited
6 against the final tax liability of the taxpayer's return for
7 that month filed under this Section or Section 2f, as the case
8 may be. Once applicable, the requirement of the making of
9 quarter monthly payments to the Department pursuant to this
10 paragraph shall continue until such taxpayer's average monthly
11 prepaid tax collections during the preceding 2 complete
12 calendar quarters is $25,000 or less. If any such quarter
13 monthly payment is not paid at the time or in the amount
14 required, the taxpayer shall be liable for penalties and
15 interest on such difference, except insofar as the taxpayer has
16 previously made payments for that month in excess of the
17 minimum payments previously due.
18     The provisions of this paragraph apply on and after October
19 1, 2001. Without regard to whether a taxpayer is required to
20 make quarter monthly payments as specified above, any taxpayer
21 who is required by Section 2d of this Act to collect and remit
22 prepaid taxes and has collected prepaid taxes that average in
23 excess of $20,000 per month during the preceding 4 complete
24 calendar quarters shall file a return with the Department as
25 required by Section 2f and shall make payments to the
26 Department on or before the 7th, 15th, 22nd and last day of the
27 month during which the liability is incurred. Each payment
28 shall be in an amount equal to 22.5% of the taxpayer's actual
29 liability for the month or 25% of the taxpayer's liability for
30 the same calendar month of the preceding year. The amount of
31 the quarter monthly payments shall be credited against the
32 final tax liability of the taxpayer's return for that month
33 filed under this Section or Section 2f, as the case may be.
34 Once applicable, the requirement of the making of quarter

 

 

09300HB4234ham001 - 43 - LRB093 16236 BDD 47515 a

1 monthly payments to the Department pursuant to this paragraph
2 shall continue until the taxpayer's average monthly prepaid tax
3 collections during the preceding 4 complete calendar quarters
4 (excluding the month of highest liability and the month of
5 lowest liability) is less than $19,000 or until such taxpayer's
6 average monthly liability to the Department as computed for
7 each calendar quarter of the 4 preceding complete calendar
8 quarters is less than $20,000. If any such quarter monthly
9 payment is not paid at the time or in the amount required, the
10 taxpayer shall be liable for penalties and interest on such
11 difference, except insofar as the taxpayer has previously made
12 payments for that month in excess of the minimum payments
13 previously due.
14     If any payment provided for in this Section exceeds the
15 taxpayer's liabilities under this Act, the Use Tax Act, the
16 Service Occupation Tax Act and the Service Use Tax Act, as
17 shown on an original monthly return, the Department shall, if
18 requested by the taxpayer, issue to the taxpayer a credit
19 memorandum no later than 30 days after the date of payment. The
20 credit evidenced by such credit memorandum may be assigned by
21 the taxpayer to a similar taxpayer under this Act, the Use Tax
22 Act, the Service Occupation Tax Act or the Service Use Tax Act,
23 in accordance with reasonable rules and regulations to be
24 prescribed by the Department. If no such request is made, the
25 taxpayer may credit such excess payment against tax liability
26 subsequently to be remitted to the Department under this Act,
27 the Use Tax Act, the Service Occupation Tax Act or the Service
28 Use Tax Act, in accordance with reasonable rules and
29 regulations prescribed by the Department. If the Department
30 subsequently determined that all or any part of the credit
31 taken was not actually due to the taxpayer, the taxpayer's 2.1%
32 and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
33 of the difference between the credit taken and that actually
34 due, and that taxpayer shall be liable for penalties and

 

 

09300HB4234ham001 - 44 - LRB093 16236 BDD 47515 a

1 interest on such difference.
2     If a retailer of motor fuel is entitled to a credit under
3 Section 2d of this Act which exceeds the taxpayer's liability
4 to the Department under this Act for the month which the
5 taxpayer is filing a return, the Department shall issue the
6 taxpayer a credit memorandum for the excess.
7     Beginning January 1, 1990, each month the Department shall
8 pay into the Local Government Tax Fund, a special fund in the
9 State treasury which is hereby created, the net revenue
10 realized for the preceding month from the 1% tax on sales of
11 food for human consumption which is to be consumed off the
12 premises where it is sold (other than alcoholic beverages, soft
13 drinks and food which has been prepared for immediate
14 consumption) and prescription and nonprescription medicines,
15 drugs, medical appliances and insulin, urine testing
16 materials, syringes and needles used by diabetics.
17     Beginning January 1, 1990, each month the Department shall
18 pay into the County and Mass Transit District Fund, a special
19 fund in the State treasury which is hereby created, 4% of the
20 net revenue realized for the preceding month from the 6.25%
21 general rate.
22     Beginning August 1, 2000, each month the Department shall
23 pay into the County and Mass Transit District Fund 20% of the
24 net revenue realized for the preceding month from the 1.25%
25 rate on the selling price of motor fuel and gasohol.
26     Beginning January 1, 1990, each month the Department shall
27 pay into the Local Government Tax Fund 16% of the net revenue
28 realized for the preceding month from the 6.25% general rate on
29 the selling price of tangible personal property.
30     Beginning August 1, 2000, each month the Department shall
31 pay into the Local Government Tax Fund 80% of the net revenue
32 realized for the preceding month from the 1.25% rate on the
33 selling price of motor fuel and gasohol.
34     Of the remainder of the moneys received by the Department

 

 

09300HB4234ham001 - 45 - LRB093 16236 BDD 47515 a

1 pursuant to this Act, (a) 1.75% thereof shall be paid into the
2 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
3 and after July 1, 1989, 3.8% thereof shall be paid into the
4 Build Illinois Fund; provided, however, that if in any fiscal
5 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
6 may be, of the moneys received by the Department and required
7 to be paid into the Build Illinois Fund pursuant to this Act,
8 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
9 Act, and Section 9 of the Service Occupation Tax Act, such Acts
10 being hereinafter called the "Tax Acts" and such aggregate of
11 2.2% or 3.8%, as the case may be, of moneys being hereinafter
12 called the "Tax Act Amount", and (2) the amount transferred to
13 the Build Illinois Fund from the State and Local Sales Tax
14 Reform Fund shall be less than the Annual Specified Amount (as
15 hereinafter defined), an amount equal to the difference shall
16 be immediately paid into the Build Illinois Fund from other
17 moneys received by the Department pursuant to the Tax Acts; the
18 "Annual Specified Amount" means the amounts specified below for
19 fiscal years 1986 through 1993:
20Fiscal YearAnnual Specified Amount
211986$54,800,000
221987$76,650,000
231988$80,480,000
241989$88,510,000
251990$115,330,000
261991$145,470,000
271992$182,730,000
281993$206,520,000;
29 and means the Certified Annual Debt Service Requirement (as
30 defined in Section 13 of the Build Illinois Bond Act) or the
31 Tax Act Amount, whichever is greater, for fiscal year 1994 and
32 each fiscal year thereafter; and further provided, that if on
33 the last business day of any month the sum of (1) the Tax Act
34 Amount required to be deposited into the Build Illinois Bond

 

 

09300HB4234ham001 - 46 - LRB093 16236 BDD 47515 a

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

 

 

09300HB4234ham001 - 47 - LRB093 16236 BDD 47515 a

1 Build Illinois Fund in any fiscal year pursuant to this
2 sentence shall be deemed to constitute payments pursuant to
3 clause (b) of the first sentence of this paragraph and shall
4 reduce the amount otherwise payable for such fiscal year
5 pursuant to that clause (b). The moneys received by the
6 Department pursuant to this Act and required to be deposited
7 into the Build Illinois Fund are subject to the pledge, claim
8 and charge set forth in Section 12 of the Build Illinois Bond
9 Act.
10     Subject to payment of amounts into the Build Illinois Fund
11 as provided in the preceding paragraph or in any amendment
12 thereto hereafter enacted, the following specified monthly
13 installment of the amount requested in the certificate of the
14 Chairman of the Metropolitan Pier and Exposition Authority
15 provided under Section 8.25f of the State Finance Act, but not
16 in excess of sums designated as "Total Deposit", shall be
17 deposited in the aggregate from collections under Section 9 of
18 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
19 9 of the Service Occupation Tax Act, and Section 3 of the
20 Retailers' Occupation Tax Act into the McCormick Place
21 Expansion Project Fund in the specified fiscal years.
22Fiscal YearTotal Deposit
231993         $0
241994 53,000,000
251995 58,000,000
261996 61,000,000
271997 64,000,000
281998 68,000,000
291999 71,000,000
302000 75,000,000
312001 80,000,000
322002 93,000,000
332003 99,000,000

 

 

09300HB4234ham001 - 48 - LRB093 16236 BDD 47515 a

12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021246,000,000
192022260,000,000
202023 and275,000,000
21each fiscal year
22thereafter that bonds
23are outstanding under
24Section 13.2 of the
25Metropolitan Pier and
26Exposition Authority Act,
27but not after fiscal year 2042.
28     Beginning July 20, 1993 and in each month of each fiscal
29 year thereafter, one-eighth of the amount requested in the
30 certificate of the Chairman of the Metropolitan Pier and
31 Exposition Authority for that fiscal year, less the amount
32 deposited into the McCormick Place Expansion Project Fund by
33 the State Treasurer in the respective month under subsection
34 (g) of Section 13 of the Metropolitan Pier and Exposition

 

 

09300HB4234ham001 - 49 - LRB093 16236 BDD 47515 a

1 Authority Act, plus cumulative deficiencies in the deposits
2 required under this Section for previous months and years,
3 shall be deposited into the McCormick Place Expansion Project
4 Fund, until the full amount requested for the fiscal year, but
5 not in excess of the amount specified above as "Total Deposit",
6 has been deposited.
7     Subject to payment of amounts into the Build Illinois Fund
8 and the McCormick Place Expansion Project Fund pursuant to the
9 preceding paragraphs or in any amendments thereto hereafter
10 enacted, beginning July 1, 1993, the Department shall each
11 month pay into the Illinois Tax Increment Fund 0.27% of 80% of
12 the net revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property.
15     Subject to payment of amounts into the Build Illinois Fund
16 and the McCormick Place Expansion Project Fund pursuant to the
17 preceding paragraphs or in any amendments thereto hereafter
18 enacted, beginning with the receipt of the first report of
19 taxes paid by an eligible business and continuing for a 25-year
20 period, the Department shall each month pay into the Energy
21 Infrastructure Fund 80% of the net revenue realized from the
22 6.25% general rate on the selling price of Illinois-mined coal
23 that was sold to an eligible business. For purposes of this
24 paragraph, the term "eligible business" means a new electric
25 generating facility certified pursuant to Section 605-332 of
26 the Department of Commerce and Economic Opportunity Community
27 Affairs Law of the Civil Administrative Code of Illinois.
28     Of the remainder of the moneys received by the Department
29 pursuant to this Act, 75% thereof shall be paid into the State
30 Treasury and 25% shall be reserved in a special account and
31 used only for the transfer to the Common School Fund as part of
32 the monthly transfer from the General Revenue Fund in
33 accordance with Section 8a of the State Finance Act.
34     The Department may, upon separate written notice to a

 

 

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1 taxpayer, require the taxpayer to prepare and file with the
2 Department on a form prescribed by the Department within not
3 less than 60 days after receipt of the notice an annual
4 information return for the tax year specified in the notice.
5 Such annual return to the Department shall include a statement
6 of gross receipts as shown by the retailer's last Federal
7 income tax return. If the total receipts of the business as
8 reported in the Federal income tax return do not agree with the
9 gross receipts reported to the Department of Revenue for the
10 same period, the retailer shall attach to his annual return a
11 schedule showing a reconciliation of the 2 amounts and the
12 reasons for the difference. The retailer's annual return to the
13 Department shall also disclose the cost of goods sold by the
14 retailer during the year covered by such return, opening and
15 closing inventories of such goods for such year, costs of goods
16 used from stock or taken from stock and given away by the
17 retailer during such year, payroll information of the
18 retailer's business during such year and any additional
19 reasonable information which the Department deems would be
20 helpful in determining the accuracy of the monthly, quarterly
21 or annual returns filed by such retailer as provided for in
22 this Section.
23     If the annual information return required by this Section
24 is not filed when and as required, the taxpayer shall be liable
25 as follows:
26         (i) Until January 1, 1994, the taxpayer shall be liable
27     for a penalty equal to 1/6 of 1% of the tax due from such
28     taxpayer under this Act during the period to be covered by
29     the annual return for each month or fraction of a month
30     until such return is filed as required, the penalty to be
31     assessed and collected in the same manner as any other
32     penalty provided for in this Act.
33         (ii) On and after January 1, 1994, the taxpayer shall
34     be liable for a penalty as described in Section 3-4 of the

 

 

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

 

 

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1 local fairs, art shows, flea markets and similar exhibitions or
2 events, including any transient merchant as defined by Section
3 2 of the Transient Merchant Act of 1987, is required to file a
4 report with the Department providing the name of the merchant's
5 business, the name of the person or persons engaged in
6 merchant's business, the permanent address and Illinois
7 Retailers Occupation Tax Registration Number of the merchant,
8 the dates and location of the event and other reasonable
9 information that the Department may require. The report must be
10 filed not later than the 20th day of the month next following
11 the month during which the event with retail sales was held.
12 Any person who fails to file a report required by this Section
13 commits a business offense and is subject to a fine not to
14 exceed $250.
15     Any person engaged in the business of selling tangible
16 personal property at retail as a concessionaire or other type
17 of seller at the Illinois State Fair, county fairs, art shows,
18 flea markets and similar exhibitions or events, or any
19 transient merchants, as defined by Section 2 of the Transient
20 Merchant Act of 1987, may be required to make a daily report of
21 the amount of such sales to the Department and to make a daily
22 payment of the full amount of tax due. The Department shall
23 impose this requirement when it finds that there is a
24 significant risk of loss of revenue to the State at such an
25 exhibition or event. Such a finding shall be based on evidence
26 that a substantial number of concessionaires or other sellers
27 who are not residents of Illinois will be engaging in the
28 business of selling tangible personal property at retail at the
29 exhibition or event, or other evidence of a significant risk of
30 loss of revenue to the State. The Department shall notify
31 concessionaires and other sellers affected by the imposition of
32 this requirement. In the absence of notification by the
33 Department, the concessionaires and other sellers shall file
34 their returns as otherwise required in this Section.

 

 

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1 (Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-208,
2 eff. 8-2-01; 92-484, eff. 8-23-01; 92-492, eff. 1-1-02; 92-600,
3 eff. 6-28-02; 92-651, eff. 7-11-02; 93-22, eff. 6-20-03; 93-24,
4 eff. 6-20-03; revised 10-15-03.)
5     Section 99. Effective date. This Act takes effect upon
6 becoming law.".