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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Live | ||||||||||||||||||||||||||
5 | Adult Entertainment Facility Tax Act. | ||||||||||||||||||||||||||
6 | Section 3. Findings. The General Assembly finds that: | ||||||||||||||||||||||||||
7 | (1) crime statistics show that all types of crimes, | ||||||||||||||||||||||||||
8 | especially sex-related crimes, occur with more frequency | ||||||||||||||||||||||||||
9 | in neighborhoods where sexually oriented businesses are | ||||||||||||||||||||||||||
10 | located; | ||||||||||||||||||||||||||
11 | (2) sexually oriented businesses contribute to a | ||||||||||||||||||||||||||
12 | culture that tolerates the sexual objectification and | ||||||||||||||||||||||||||
13 | exploitation of women, and contribute to the need for | ||||||||||||||||||||||||||
14 | community-based services to respond to victims of all forms | ||||||||||||||||||||||||||
15 | of sexual exploitation, including sexual harassment, | ||||||||||||||||||||||||||
16 | trafficking, and sexual assault; | ||||||||||||||||||||||||||
17 | (3) the consumption of alcoholic beverages on the | ||||||||||||||||||||||||||
18 | premises of sexually oriented businesses exacerbates the | ||||||||||||||||||||||||||
19 | negative secondary effects of those businesses on the | ||||||||||||||||||||||||||
20 | community; and | ||||||||||||||||||||||||||
21 | (4) the presence of sexually oriented businesses may | ||||||||||||||||||||||||||
22 | result in an increase in prohibited secondary sexual | ||||||||||||||||||||||||||
23 | activities, such as prostitution, in the surrounding |
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1 | community. | ||||||
2 | It is the intent of the General Assembly to ameliorate the | ||||||
3 | negative secondary effects associated with the combination of | ||||||
4 | sexually oriented businesses and alcohol so as to promote the | ||||||
5 | health, safety, and welfare of the citizens of Illinois. | ||||||
6 | This Act is not intended to directly or indirectly impose | ||||||
7 | limitations or restrictions on live nude dancing, nor is it the | ||||||
8 | intent of this Act to restrict or deny access by adults to live | ||||||
9 | nude dancing performances that may be protected by the First | ||||||
10 | Amendment of the United States Constitution or by the Illinois | ||||||
11 | Constitution. | ||||||
12 | Section 5. Definitions. As used in this Act: | ||||||
13 | "Department" means the Department of Revenue. | ||||||
14 | "Live adult entertainment facility" means a striptease | ||||||
15 | club or other business that, during at least 30 consecutive or | ||||||
16 | nonconsecutive days in a calendar year, offers or provides | ||||||
17 | activities by employees, agents, or contractors of the business | ||||||
18 | that involve nude or partially denuded individuals that, when | ||||||
19 | considered as a whole, appeal primarily to an interest in | ||||||
20 | nudity or sex. | ||||||
21 | "Nude or partially denuded individual" means an individual | ||||||
22 | who is: | ||||||
23 | (1) entirely unclothed; or | ||||||
24 | (2) clothed in a manner that leaves uncovered or | ||||||
25 | visible through less than fully opaque clothing any portion |
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1 | of the breasts below the top of the areola of the breasts, | ||||||
2 | if the person is female, or any portion of the genitals or | ||||||
3 | buttocks. | ||||||
4 | "Operator" means any person who owns or operates a live | ||||||
5 | adult entertainment facility. | ||||||
6 | Section 10. Tax imposed; returns. | ||||||
7 | (a) A tax is imposed upon each operator who operates a live | ||||||
8 | adult entertainment facility in this State that serves or | ||||||
9 | permits the consumption of alcohol on its premises. The amount | ||||||
10 | of the tax under this Act is an amount equal to $5 for each | ||||||
11 | entry by each customer admitted into the live adult | ||||||
12 | entertainment facility. | ||||||
13 | (b) For each live adult entertainment facility, the | ||||||
14 | operator must make a return to the Department on a | ||||||
15 | quarter-annual basis, with the return for January, February, | ||||||
16 | and March of a given year being due by April 30 of that year; | ||||||
17 | with the return for April, May, and June of a given year being | ||||||
18 | due by July 31 of that year; with the return for July, August, | ||||||
19 | and September of a given year being due by October 31 of that | ||||||
20 | year; and with the return for October, November, and December | ||||||
21 | of a given year being due by January 31 of the following year. | ||||||
22 | Each return made to the Department must state the following: | ||||||
23 | (1) the name of the operator; | ||||||
24 | (2) the address of the live adult entertainment | ||||||
25 | facility and the address of the principal place of business |
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1 | (if that is a different address) of the operator; | ||||||
2 | (3) the total number of customers admitted to the | ||||||
3 | facility in the preceding calendar quarter; | ||||||
4 | (4) the total amount of tax collected in the preceding | ||||||
5 | calendar quarter; and | ||||||
6 | (5) any other information that the Department of | ||||||
7 | Revenue reasonably requires. | ||||||
8 | Notwithstanding any other provision of this subsection | ||||||
9 | concerning the time within which an operator may file his or | ||||||
10 | her return, if an operator ceases to operates a live adult | ||||||
11 | entertainment facility, then he or she must file a final return | ||||||
12 | under this Act with the Department not more than one calendar | ||||||
13 | month after discontinuing that business. | ||||||
14 | (c) Persons subject to the tax imposed by this Act may | ||||||
15 | reimburse themselves for their tax liability under this Act by | ||||||
16 | separately stating such tax as an additional charge. If any | ||||||
17 | operator collects an amount (however designated) that purports | ||||||
18 | to reimburse the operator for the tax liability measured by | ||||||
19 | receipts that are not subject to the tax under this Act, or if | ||||||
20 | any operator, in collecting an amount (however designated) that | ||||||
21 | purports to reimburse the operator for the tax liability under | ||||||
22 | this Act, collects more from the customer than the operator's | ||||||
23 | tax liability in the transaction, then the customer has a legal | ||||||
24 | right to claim a refund of that amount from the operator. If, | ||||||
25 | however, that amount is not refunded to the customer for any | ||||||
26 | reason, then the operator is liable to pay that amount to the |
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1 | Department. | ||||||
2 | (d) The Department shall pay all proceeds collected from | ||||||
3 | the tax imposed under this Act into the Sexual Assault | ||||||
4 | Prevention Fund. | ||||||
5 | Section 15. The Sexual Assault Prevention Fund. The Sexual | ||||||
6 | Assault Prevention Fund is created as a special fund in the | ||||||
7 | State treasury. From appropriations from the Fund, the | ||||||
8 | Department of Human Services shall make grants to sexual | ||||||
9 | assault organizations with whom the Department has contracts | ||||||
10 | for the purpose of providing community-based assistance to | ||||||
11 | victims of sexual assault and for activities concerning the | ||||||
12 | prevention of sexual assault. Moneys received for the purposes | ||||||
13 | of this Act, including, without limitation, tax proceeds and | ||||||
14 | gifts, grants, and awards from any public or private entity, | ||||||
15 | must be deposited into the Fund. Any interest earnings that are | ||||||
16 | attributable to moneys in the Fund must be deposited into the | ||||||
17 | Fund. | ||||||
18 | The Fund is not subject to sweeps, administrative charges, | ||||||
19 | or charge-backs, or any other fiscal or budgetary maneuver that | ||||||
20 | would in any way transfer any moneys from the Fund into any | ||||||
21 | other fund of the State. | ||||||
22 | Section 20. Books and records. Every operator shall keep | ||||||
23 | separate books or records of his or her business as an operator | ||||||
24 | to record the taxable admissions of customers under this Act. |
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1 | The Department may adopt rules that establish requirements, | ||||||
2 | including record forms and formats, for records required to be | ||||||
3 | kept and maintained by taxpayers. For purposes of this Section, | ||||||
4 | "records" means all data maintained by the taxpayer, including | ||||||
5 | data on paper, microfilm, microfiche, or any type of | ||||||
6 | machine-sensible data compilation.
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7 | Section 25. Application of Retailers' Occupation Tax | ||||||
8 | provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c, | ||||||
9 | 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13 | ||||||
10 | of the Retailers' Occupation Tax Act that are not inconsistent | ||||||
11 | with this Act apply, as far as practicable, to the tax imposed | ||||||
12 | by this Act to the same extent as if those provisions were | ||||||
13 | included in this Act. References in the incorporated Sections | ||||||
14 | of the Retailers' Occupation Tax Act to retailers, to sellers, | ||||||
15 | or to persons engaged in the business of selling tangible | ||||||
16 | personal property mean operators. | ||||||
17 | Section 30. Hearing; notice. | ||||||
18 | (a) The Department may adopt and enforce any reasonable | ||||||
19 | rule to administer and enforce the tax imposed by this Act. | ||||||
20 | (b) Whenever the Department is required to provide notice | ||||||
21 | to an operator under this Act, the notice may be personally | ||||||
22 | served or given by United States certified or registered mail, | ||||||
23 | addressed to the operator concerned at his or her last known | ||||||
24 | address, and proof of this mailing is sufficient for the |
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1 | purposes of this Act. In the case of a notice of hearing, the | ||||||
2 | Department must mail the notice at least 7 days prior to the | ||||||
3 | date fixed for the hearing. | ||||||
4 | (c) All hearings provided by the Department under this Act | ||||||
5 | with respect to or concerning a operator having his or her | ||||||
6 | principal place of business in this State other than in Cook | ||||||
7 | County must be held at the Department's office nearest to the | ||||||
8 | location of the operator's principal place of business. If the | ||||||
9 | operator has his or her principal place of business in Cook | ||||||
10 | County, then the hearing must be held in Cook County. If the | ||||||
11 | operator does not have his or her principal place of business | ||||||
12 | in this State, then the hearing must be held in Sangamon | ||||||
13 | County. | ||||||
14 | (d) If any proceeding under this Act has been begun by the | ||||||
15 | Department or by a person subject thereto and that person | ||||||
16 | subsequently dies or becomes a person under legal disability | ||||||
17 | before the proceeding has been concluded, then the legal | ||||||
18 | representative of the deceased person or person under legal | ||||||
19 | disability shall notify the Department of the death or legal | ||||||
20 | disability. The Department must substitute the legal | ||||||
21 | representative, as such, in place of and for the person. Within | ||||||
22 | 20 days after notice to the legal representative of the time | ||||||
23 | fixed for that purpose, the proceeding may proceed in all | ||||||
24 | respects and with like effect as though the person had not died | ||||||
25 | or become a person under legal disability. |
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1 | Section 35. Administrative procedures. The Illinois | ||||||
2 | Administrative Procedure Act is expressly adopted and applies | ||||||
3 | to all administrative rules and procedures of the Department | ||||||
4 | under this Act, except that: (1) paragraph (b) of Section 4 of | ||||||
5 | the Illinois Administrative Procedure Act does not apply to | ||||||
6 | final orders, decisions, and opinions of the Department; (2) | ||||||
7 | subparagraph (a)(2) of Section 4 of the Illinois Administrative | ||||||
8 | Procedure Act does not apply to forms established by the | ||||||
9 | Department for use under this Act; and (3) the provisions of | ||||||
10 | Section 13 of the Illinois Administrative Procedure Act | ||||||
11 | regarding proposals for decision are excluded and not | ||||||
12 | applicable to the Department under this Act. | ||||||
13 | Section 40. Review under the Administrative Review Law. | ||||||
14 | (a) The circuit court of any county in which a hearing is | ||||||
15 | held has the power to review all final administrative decisions | ||||||
16 | of the Department in administering the tax imposed under this | ||||||
17 | Act. If, however, the administrative proceeding that is to be | ||||||
18 | reviewed judicially is a claim for refund proceeding commenced | ||||||
19 | under this Act and Section 2a of the State Officers and | ||||||
20 | Employees Money Disposition Act, the circuit court having | ||||||
21 | jurisdiction over the action for judicial review under this | ||||||
22 | Section and under the Administrative Review Law is the same | ||||||
23 | court that entered the temporary restraining order or | ||||||
24 | preliminary injunction that is provided for in that Section 2a, | ||||||
25 | and that enables the claim proceeding to be processed and |
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1 | disposed of as a claim for refund proceeding other than as a | ||||||
2 | claim for credit proceeding. | ||||||
3 | (b) The provisions of the Administrative Review Law apply | ||||||
4 | to and govern all proceedings for the judicial review of final | ||||||
5 | administrative decisions of the Department under this Title. | ||||||
6 | The term "administrative decision" is defined as in Section | ||||||
7 | 3-101 of the Code of Civil Procedure. | ||||||
8 | (c) Service of summons issued in any action to review a | ||||||
9 | final administrative decision upon the Director or Assistant | ||||||
10 | Director of Revenue shall be service upon the Department. The | ||||||
11 | Department shall certify the record of its proceedings if the | ||||||
12 | taxpayer pays to it the sum of $0.75 per page of testimony | ||||||
13 | taken before the Department and $0.25 per page of all other | ||||||
14 | matters contained in the record, except that these charges may | ||||||
15 | be waived if the Department is satisfied that the aggrieved | ||||||
16 | party cannot afford to pay these charges. | ||||||
17 | Section 45. Penalty. Any operator who fails to make a | ||||||
18 | return or who makes a fraudulent return, or who willfully | ||||||
19 | violates any rule or regulation of the Department for the | ||||||
20 | administration and enforcement of the tax imposed under this | ||||||
21 | Act, is guilty of a Class 4 felony. | ||||||
22 | Section 90. The State Finance Act is amended by adding | ||||||
23 | Section 5.811 as follows: |
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1 | (30 ILCS 105/5.811 new) | ||||||
2 | Sec. 5.811. The Sexual Assault Prevention Fund. | ||||||
3 | Section 97. Severability. The provisions of this Act are | ||||||
4 | severable under Section 1.31 of the Statute on Statutes.
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